EXCHANGE NEWSWIRE, 22 September 2010
CFTC Chairman Gary Gensler announced the three critical Dodd-Frank Act reforms regarding derivatives which are “first, the bill requires swap dealers to come under comprehensive regulation. Second, the bill moves the bulk of the swaps marketplace onto transparent trading facilities – either exchanges or swap execution facilities. Third, the bill requires clearing of standardized swaps by regulated clearinghouses to lower risk in the marketplace.”
The European Union passed rules creating three new European Supervisory Authorities (ESAs) which will be effective January 2011 and a European Systemic Risk Board (ESRB), putting national regulators at the fore and keeping a common rule book to prevent future economic crises.
LSE will migrate Turquoise systems to Millennium technology on October 4 and stocks on LSE’s main market will be moved onto the new technology on November 1. Natan Tiefenbrun, Commercial Director of Turquoise said “our customers can expect a significant improvement in trading times. We expect customer numbers, overall trading volumes and our share of trading to increase post migration.”
CME will start trading the CBOE/NYMEX WTI Volatility Index and the CBOE/COMEX Gold Volatility Index futures and options contracts in 4Q2010. The exchange also plans to offer futures and options on corn and soybean volatility indexes in 1Q2011.
NYX appointed Tim Kinslow to head the company’s global IT systems development. Kinslow was most recently co-founder and CTO at Nimbleware and previously worked with MacAfee and Adobe.
ICE CDS clearing houses have cleared $12 tn in gross notional value since inception. ICE Clear Europe approved UniCredit Bank as a CDS clearing member.
BMV will reduce shareholder's equity, paying P$569 mn (P$0.96 per share) to shareholders.
HKEx: AIG received approval for a US$10 to US$15 bn IPO of its pan-Asian insurer AIA, which will list in Hong Kong on October 29, according to the Asian Wall Street Journal. This may be the second-largest IPO globally this year.
TOCOM recorded a night session trading volume of 32,430 contracts on its first day with extended hours. Volume during the extra hours from 23:00 to 4:00 reached a total of 7,281 contracts, with 3,537 contracts, or 48.6% of extended hours’ volume, clocked between 3:00 and 4:00.
Instinet Japan added iceberg and hidden order types to CBX Asia in Japan, making it no longer a fully-displayed trading venue. Orders matched in CBX Asia will now be routed to the stock’s primary listing market, either OSE or TSE, for execution.
Quote MTF offered to give away as much as 40% of shareholding in a “partnership program” with trading firms as it attempts to secure liquidity in the competitive, consolidating European market.
TD Ameritrade August DARTs declined -5.5% M/M (-28% Y/Y) to 309 k; total client assets declined -2.4% M/M (+15% Y/Y) to $332 bn; avg. spread based balances remained flat (+27% Y/Y) at $54.8 bn and avg. fee-based balances increased +4.7% M/M (+17% Y/Y) to $66.4 bn.
EFG International appointed Maxime Vermesse as CEO of EFG France.
SGX was upgraded to "Buy" from "Fully Valued" at DBS Vickers, with the target price raised to S$9.60 from S$6.90.
TD Ameritrade was downgraded to “Market Perform” from “Outperform” at Raymond James. No information on target price was given.
SEC received a proposal from leading US stock exchanges regarding setting rules to eliminate extremely low or high “stub quote” share quotations, blamed for causing the May 6 flash crash, on which SEC is expected to report next week.
FIA released a letter commenting on particular derivatives definitions in the Dodd-Frank Act, stating that futures commission merchants should not be required to register as swap dealers if they are acting only as clearing brokers, and that swap dealers acting solely in dealer capacity should not need to register as FCMs.
Provided By: Equity Research Desk, www.erdesk.com