FMX | Connect – www.fmxconnect.com - (Reported 9/10/2010)
Exchange Sector Review - Week ending September 10, 2010
This week:
The sector was up 200bps, outperforming global equities by 200bps. Interdealer brokers were down -100bps. YTD the sector is underperforming global equities by 473 bps.
CFTC Chairman Gensler said that to qualify as a Swap Execution Facility (SEF) the platform must offer “many-to-many” market structure, as well as real-time trade reporting and promote price transparency.
A record $64.5 bn secondary stock issuance by Petrobras could increase BVMF3’s earnings by R$10 mn, or 1.6% of company earnings (see page 7).
The SEC may put new rules for high frequency traders (HFTs) that may force them to minimum quotation amounts for specified periods of time. Practices involving quote stuffing are also under examination “to assess whether they violate existing rules against fraudulent or other improper behavior,” according to SEC Chairman Schapiro.
MTFs continue to gain market share, capturing in Europe 35% in FTSE, 35% in ASX, 34% in DAX and in Canada, over 30% (see pages 8-9).
ASIC’s concerns of a repeat of the May 6th flash crash could push back the introduction of competition in Australian equity markets until 1Q 2011.
NZX Limited was authorized by the Securities Commission as a futures exchange. NZX will launch Global Whole Milk Powder Futures contract on October 8 and plans to launch more dairy futures and other products over the next 12 months.
Irish regulators relaxed financial market rules in a bid to place Ireland as the leading European center for onshore hedge funds, a move in response to its battle with Luxembourg for market dominance.
Next week:
· Tuesday, September 14: the SEC and CFTC will hold a joint public roundtables to discuss swap data repository (SDR) registration, functions and responsibilities.
· Wednesday, September 15: the SEC and CFTC will hold a joint public roundtables to discuss Swap Execution Facilities (SEF) and Security-Based Swap Execution Facilities.
· Thursday, September 16: ISDA will hold its Regional Conference in New York and discuss the implementation of the Dodd-Frank Act. CFTC Chairman Gensler will be the keynote speaker.
Source: ERDESK
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