EXCHANGE NEWSWIRE, 13 May 2010
CME’s CEO, Terrence Duffy, dismissed allegations that the trigger of the May 6 crash was due to a derivatives trade. “The market had already gone down precipitously prior to this trade” in S&P Mini contracts, “I don’t believe this was anything but a hedge by a long equity trader.” He added that prior to the plunge, spreads were of 1 tick and at 2:45 pm they widened to 26 ticks after a sharp decline which prompted by “the sale of 1,100 contracts by multiple market participants” over 500 milliseconds, were the CME instituted a five-second pause.
The US Senate rejected amendments to the provisions put forward by the Chairman of the Agriculture Committee, Blanch Lincoln (D-Arkansas). The Senate’s OTC Derivatives regulation bill still requires major banks to spin off their derivatives businesses.
The EU Commission’s draft paper on OTC derivatives will include rules for FX derivatives. EU Internal Market Commission official Patrick Pearson said that “including FX in the scope of regulation does not mean it automatically falls under a clearing obligation."
JSE announced the introduction of cash-settled soybean, soymeal and soybean oil derivative contracts based on CBOT settlement prices. The contracts will represent 100 metric tons for soybeans and soymeal and 25 tons for soybean oil and will be listed, traded and settled by the JSE starting on May 17.
HKEx will upgrade to a new trading system by the end of 2011 which will be able to process 15,000 transactions per second (up from 3,000 currently). CEO Charles Li said “Our capacity is not satisfactory yet … In order for us to be ready for China and international competition, we have to make sure we invest in IT infrastructure. Otherwise, we will be obsolete.”
HKEx: Hong Kong Securities & Futures Commission CEO, Martin Wheatley, said referring to alternative trading systems, “We are neutral to whether such facilities are net positive or net negative, but the industry wants a choice of different types of trading and venues … We are trying to work out how alternative structures can be offered within today’s regulatory environment.”
TMX Information Processor has finalized all requirements needed to launch and is now receiving data from all Canadian equity marketplaces. Through the TMX Information Processor, clients will be able to connect to a single source of consolidated Canadian equity market data from all Canadian equity marketplaces that trade TSX and TSX Venture Exchange listed securities.
NYX: NYSE Regulation fined Goldman Sachs, Cantor Fitzgerald and UBS for rule violations.
BMV: Mexder started offering exchange traded and cleared interest rate swaps. There were a total of 360 contracts with a value to MXN360 mn during the first day of trading. CEO Jorge Alegría expects daily volumes to reach of $500 mn, or roughly 20% of the OTC market, according to FT.
BMV CEO Jorge Alegría expects four more IPOs this year.
LCH.Clearnet CEO Roger Lidell said "the biggest single concern I've got is that clearing becomes adopted along the lines used in the futures market. That's nowhere near adequate to survive the stresses and the default of a large clearing member.” IDCG’s lower margins are “bordering on reckless,” Lidell said.
Tullett Prebon could not reach an agreement with an unidentified bidder. “It has not been possible to reach agreement on the terms of any offer … The third party has confirmed that it does not intend to pursue a possible offer.”
Liquidnet’s New Zealand dark pool will start operating in June. Lee Porter, managing director of Asia-Pacific said “New Zealand is not Asia’s largest market, but it’s an important market that our members have been asking for … Liquidnet is also reviewing its options in Indonesia and Malaysia with a view to adding these Southeast Asian markets later this year.”
Knight will change its listing from NASDAQ to NYSE and change its ticker to “KCG”.
FTSE and Renaissance Capital launched two new IPO Indexes, the Asia Pacific ex Japan IPO Index and the Hong Kong/China Top IPO Index that enables investors to capture the early performance of newly issued equities.
ITG unveiled new equity index futures trading capabilities in its portfolio algorithm, Dynamic Implementation Shortfall (IS). The algorithm can now execute baskets containing any mix of stocks and equity index futures.
State Street Global Advisors: The first ETF developed under a sub-advisory agreement with Nuveen Asset Management, the SPDR Nuveen Barclays Capital Build America Bond ETF (BABS), began trading on NYSE Arca.
Macquarie Securities appointed Todd Steinberg as a Senior Managing Director and Global Head of Derivatives Delta One. Mr. Steinberg was previously Head of Equities and Commodity Derivatives – Americas at BNP Paribas.
Legg Mason AUM increased +0.1% M/M to $685.3 mn at the end of April.
Artio Global AUM declined -0.2% M/M to $56.3 bn at the end of April.
Julius Baer appointed 11 bankers and specialists in Singapore so far this year, including Vincent Lim, former Societe Generale, as Team Head for Southeast Asia Private Banking and Evelyn Yeo, former Deutsche Bank, as Head of Investment Advisory Services.
NYX long-term debt rating was downgraded to 'AA-' from 'AA' at S&P after announcing it would end existing clearing arrangements with LCH.Clearnet. NYX is on CreditWatch negative.
FSA banking director Tom Huertas said higher, more liquid Tier 1 core capital is needed to prevent “to big to fail” situations.
The CFTC will hold a public meeting on May 19 to consider issues related to the trading of futures and binary options based on motion picture box office receipts. Media Derivatives Exchange (MDEX), Cantor Exchange and segments of the motion picture industry and other interested parties will present their views.
U.S. Senator Dick Durbin’s proposed rules on interchange fees tied to debit cards would exempt banks with less than $10 bn in assets instead of $1 bn from paying them
Polish securities accounts increased +12% in April to 1,280,372 driven the PZU IPO, the largest in Poland history. Polish Financial Supervision Authority CEO, Iwona Sroka, said “The PZU IPO has sparked the most interest of local investors in many years. Even the IPOs of market giants like PKO BP and PGNiG did not attract as many investors to the capital market. The number of accounts operated by some brokers grew by no less than 100 percent, translating into dozens of thousands of new customers.”
CORRECTION: HKEx did not appoint Mr. Hu Yong as executive director.
Provided By: Equity Research Desk, www.erdesk.com