ERDesk EXCHANGE NEWSWIRE, 6 December 2011
Shanghai Futures Exchange aims to broaden its membership base to include both institutional and foreign investors in an attempt to attract overseas capital. General manager of the exchange Yang Maijun said that “we are studying how to allow banks, trusts, securities and fund companies to enter the commodities markets”, and the bourse hopes to expand the market within the following five years.
Chi-X Global: UBS AG bought a minority equity stake in Chi-X Global Holdings, making it the sixth member of the firm’s ownership consortium, which includes parent Instinet, BofAML, GETCO, Goldman Sachs, Morgan Stanley and Quantlab Group LP. Deal terms were not disclosed. Head of global equities at UBS Mike Stewart stated that “given our reach and position in the equity markets across the globe, it made sense to become an active participant in Chi-X Global’s model.”
BATS Global will establish an “innovative market-maker program” to support its new listings market, BATS Exchange (BZX) which has gone live but does not have any listings yet. BATS plans to list on its own exchange, and it is also in discussions with other groups to list, as reported in the Financial Times.
LCH.Clearnet now accepts a broader range of collateral for initial margin and offers increased connectivity and variable notional swaps. The platform also offers risk-free compression and flexible trade submission and is now directly accessible via Tradeweb and Bloomberg (VCON and Electronic Trading) through SwapClear’s ClearLink API in addition to MarkitSERV.
LME launched a new version of its electronic trading platform. The LMESelect version 7 introduces a number of configurable new order types that can be implemented and also introduces a new FIX-based solution for market data which meets higher performance requirements, reduces costs and uses a standardized protocol.
BOLSAA signed a letter of intent to join MILA whitch market capitalization is expected to exceed $1 trillion.
CME set a new IRS & CDS monthly clearing record of $61.9b (+36% m/m) in November.
DB1: Eurex’s London head of business development Manuela Arbuckle, and Christian Voigt, part of Eurex’s executive business development team, will leave their positions this month, as reported in the Financial News.
LCH.Clearnet appointed Charlie Longden CEO of its credit default swap (CDS) clearing service, CDSClear. Longden previously worked in Markit as managing director of fixed income, and prior to that was global head of credit trading and eco-markets in ABN Amro.
MF Global’s former CEO Jon Corzine and other top director are being sued by former employees who accuse them of “misrepresentations and fraudulent conduct.” Lawyer for the class action Jacob Zamansky, alleged that Corzine and the board “breached their fiduciary duty to their employees and destroyed their careers and retirement savings. They need to be held accountable.”
Kazakhstan Stock Exchange: LSE and Russian exchanges Micex and RTS submitted proposals to provide the Kazakh bourse with trading systems and other collaboration, according to the Financial Times. CEO of the Kazakh exchange Kadyrzhan Damitov said that the exchange has a two-year “development strategy” which would see it modernize the trading system, and introduce an obligation for companies wanting to list that they sell at least 20% of their shares on the exchange before going for a foreign listing.
CFTC approved a rule that prohibits firms from using customers’ cash to invest in foreign sovereign debt or to finance in-house bets by other units or affiliates through REPOs, as reported in the Financial Times.
ISDA and the Securities Industry & Financial Markets Association are suing the CFTC in order to block the rule on commodity position limits that caps speculators’ holdings in any of 28 commodities and expand existing limits from futures to the much broader swaps market, the rule was voted positively on October 18th, according to the Financial Times.
Provided By: Equity Research Desk, www.erdesk.com