FMX | Connect – www.fmxconnect.com - (Reported 8/27/2010)
Exchange Sector Review - Week ending August 27, 2010
This week:
The sector was down -100bps, outperforming global equities by 100bps. Interdealer brokers were also down -100bps. YTD the sector is underperforming global equities by 569 bps.
The Plataforma Alternativa de Valores Españoles (PAVE) plans to become Spain’s first MTF by March 2011. Current Iberclear rules protected Spanish equity markets from fragmentation, but changes in the clearinghouse’s rules pushed by the local regulator (CNMV) would open up the market to competition as Span aims to become MiFID compliant and adapt to Target2Securities by 2012. New rules would eliminate the requirement to have a clearing ID instruction issued after an executed traded, extending IDs to MTFs (see page 7).
Chi-X Europe received an “enquiry from an unidentified suitor” to buy the whole or part of the Company. The bid is currently being reviewed by the Board of Chi-X Europe. Chi-X Europe said they were “not seeking a transaction and the option of remaining independent would allow us to build further value for shareholders.” Chi-X Europe has a 20% market share in European equity trading.
CME: The CFTC is trying to reconcile the operations of Clearport with new rules aimed at providing a better view of activity and pricing in off-exchange markets. One potential alternative for Clearport would be to add a transaction execution capability, and to register the platform with regulators as a "swap execution facility." CEO Craig Donohue said we "will be adapting and we are working closely with regulators to preserve the benefits of our existing model."
The Wholesale Markets Brokers' Association, Americas (WMBAA), called on the CFTC to ensure "open and non-discriminatory access to swap clearing organizations". "Direct or indirect impediments created to enhance a clearing organization’s affiliated trading platform would frustrate Congressional intent," the WMBAA said.
Plus Markets launched the Plus Derivatives Exchange (PDX) to offer trading in the FTSE MTIRS Index, which tracks full fixed-for-floating interest rate swaps. Trading will initially be through an OTC cleared service, developing subsequently an Exchange-Traded Index. PLUS will also launch a new lit order book in 2011. In addition, PLUS plans to create a new form of corporate bond product subscribed to through specialist funds.
NYX: NYSE Amex will invert pricing in cash equities from September 1. For the upper tier, Amex will charge 13 cents per 100 shares while rebates will remain unchanged at 19 cents per 100 shares.
ISE will expand its modified maker/taker pricing program on September 1 to cover 100 symbols accounting for over 60% of ISE volume. Customer priority and pro-rata market structure remain in place across all names.
Next Week:
The Singapore Mercantile Exchange will begin trading on Monday gold, oil and Euro-dollar futures.
Source: ERDESK
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