EXCHANGE NEWSWIRE, 11 June 2010
SEC approved new circuit breaker rules which “will ensure that all markets pause simultaneously and provide time for buyers and sellers to trade at rational prices” according to Chairman Schapiro. The rules require a pause in trading of S&P500 companies with price movements of over 10% in a five-minute span and will be implemented on a pilot basis for six months. NYSE, BATS and Direct Edge will begin implementation of the new rules today.
SEC Chairman, Mary Schapiro, said the agency will “explore whether bids and orders should be regulated on speed so there is less incentive to engage in this microsecond arms race that might undermine long-term investors and the market’s capital-formation function.”
CBOE: two seats were sold on Thursday for $2.4 mn, equivalent to $28.75 per share, near the upper bound of the $27 to $29 IPO price range. CBOE shares will begin trading next Tuesday, June 15.
NYX Amex Options CEO Steve Crutchfield said the exchange plans to expand capacity for handling complex options orders electronically. "There is a long-term secular trend toward electronic trading, but our growth has outpaced that," Crutchfield said.
NASDAQ OMX appointed Frank De Maria as SVP of Global Corporate Communications. De Maria joins NDAQ from Newsweek, where he was VP of Corporate Communications.
BM&FBOVESPA opened the bidding process for the selection of a securities portfolio manager that will be granted an exclusive license for a three year period for the use of the BM&FBOVESPA Financial Index (IFNC) for the specific purpose of launching the ETF.
Chi-X Global called the Australian Regulator to make a final decision on its exchange license after the agency indicated that final approval may be delayed until 2011 according to the Australian Financial Review.
BNY Mellon launched Structured Credit Connection, a dark auction marketplace for fixed income securities.
Artio Global AUM declined -11% m/m to $50.3 bn at the end of May.
Morgan Stanley appointed Adam Parker as U.S. equity strategist. Parker previously served as Chief Investment Strategist and Director of Quantitative Research at Bernstein.
E*Trade: FINRA ordered the company to buy back $1.25 mn in ARS from a client according to the WSJ.
CFTC Chairman Gary Gensler said exceptions to CCP clearing of OTC derivatives should be minimal.
US House Agriculture Committee Chairman Collin Peterson (D-Minn.) said "the president said that he will veto legislation that does not bring the derivatives market under control, but his Treasury Department is pushing for a loophole for FX swaps."
SEC Chairman Schapiro said she suspects that the SEC will find that what caused the “flash crash” on May 6 “was a confluence of a number of events”. “But we have got to keep plowing through the data so we can be sure," Shapiro said.
Representatives from DB1, BATS Europe, Turquoise, Goldman Sachs, Credit Suisse, UBS, Instinet, AXA Investment Managers, Fidelity, Ignis Asset Management and Franklin Templeton formed a group, called the Alpha Traders Forum (ATF), to produce an opinion paper on high-frequency trading.
Provided By: Equity Research Desk, www.erdesk.com