FMX | Connect – www.fmxconnect.com - (Reported 6/11/2010)
This week:
The sector was up 100 bps, in-line with global equities. Interdealer brokers were up 100 bps. YTD the sector is underperforming global equities by 285 bps.
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 began implementation of the new rules today.
Australian Corporate Law Minister, Chris Bowen, announced that the shift in regulation duties from ASX to the Australian regulator could be delayed until 2011. Chi-X’s license application would not get a final decision until then. Chi-X Global called on 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. Anticipating competition, ASX reduced its trading fees to 0.15bps from 0.28bps and announced the construction of a new data center in North Sydney (scheduled for launch in late June) to expand its co-location offering as the company prepares to launch its new trade execution functionalities including VolumeMatch (for block trades charged at 1.5bps) and CentrePoint (a dark pool with a 0.15bps fee).
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.“
LSE plans to launch a pan-European derivatives exchange to compete with Eurex and Liffe as regulators plan to move derivatives from OTC markets to regulated exchanges. "We are on track, within the next nine months to offer a credible alternative to our two established European competitors," LSE CEO Xavier Rolet said and added that "derivatives are in the early stage of a major restructuring, which will be driven by regulation.“
BVL Director Jose Fernando Romero said BVL and BVC have been discussing a possible merger. BVL, Bolsa de Santiago and BVC will meet on June 21 to enable cross-border transactions between the exchanges, according to Michel Canta, chairman of Peruvian regulator. In a second phase they plan to establish a common exchange. Mr. Canta also said that pension funds’ cross-border investments would be considered local
CBOE is planning to re-launch credit options as CDS are becoming more standardized. Three years ago, the exchange delisted its credit derivative contracts due to insufficient liquidity.
Next Week:
-Tuesday, June 15: CBOE shares will begin trading under the ticker CBOE on NASDAQ’s Global Select market
-Friday, June 18: ELX Futures will begin trading Eurodollar futures
Source: ERDESK
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