ERDesk (www.erdesk.com)": Exchange Sector Review – Week ending April 23rd, 2010
The Senate Agriculture Committee passed this week Chairman Blanche Lincoln’s bill on OTC derivatives calling for requiring mandatory trading (on exchanges or swap execution facilities) and central clearing (determined by the regulator) of swaps. The bill only provides exemptions of central-clearing for commercial users but calls for capital requirements for all market participants engaging in derivatives transactions. FX swaps will also be subject to mandatory exchange trading and central clearing, which could increase CME’s market cap by $17 bn if it captures this $60 trillion market. Lincoln's bill also treats contracts based on broad market indices (options and futures) as swaps and therefore only futures exchanges would be allowed to clear them, as well as moving the contracts under CFTC regulation. If passed, the bill would bar CBOE from trading index options, which would move to exchanges like futures exchanges like CME and making them subject to CFTC regulation. The bill will likely be merged with Senator Dodd’s bill (which will have a test vote on April 26) as it moves down Capitol Hill (see page 7).
CETIP: FEBRABAN (Brazil’s Banking Federation) reduced from R$5,000 to R$3,000 the limit for the processing electronic wire transfers (TEDs) via the interbank payments chamber (CIP). CETIP currently processes payments for the CIP and is renegotiating the contract that expires on 2012.
ELX Futures will launch Eurodollar Futures contracts on June 18. ELX Futures will initially list the first two years of quarterly and serial contracts and corresponding calendar spreads with implieds, one year packs and two year bundles. The contract will be available for cross margining.
The CFTC approved the Cantor Futures Exchange and the Trend Exchange as designated contract markets for risk management products based on domestic box office receipts. Cantor Clearinghouse and MGEX will provide clearing services for each the exchanges respectively.
The following companies reported quarterly earnings:
-BMV MXN0.21 -11% Y/Y see page 8
-BURSA MYR0.053 +81% Y/Y see page 8
-TROW $0.57 +200% Y/Y
-JNS $0.17 1Q09: -$5.22
-IBKR $0.09 -70% Y/Y
-AMTD $0.27 +4% Y/Y
-TRAD $0.07 -36% Y/Y
-ETFC -$0.02 1Q09: -$0.41
Next week: The following companies will report quarterly earnings
-Tuesday, April 27th: OSE, WDR
-Wednesday, April 28th: TMX, BEN
-Thursday, April 29th: CME, BME, CFT, GFI, ITG
-Friday, April 30th: DFM
