German, French MiFID Plans
The European Union’s second and third largest securities exchanges say they’re ready for MiFid, which kicks in on Nov. 1 and will give securities firms the right to execute securities transactions on their own internal trading platforms. Both Euronext and Deutsch Boerse say they will offer means of executing trades on the exchanges’ order books, and settling them on any one of a number of new bank platforms is set to come online by year-end. The LSE, still the continent’s largest exchange for cash securities, says it also will announce its MiFID defense plan later in the year.
Squabble over Milan Exchange
Bank of Italy Governor Mario Draghi has joined the chorus of financial voices calling on Borsa Italiana boss Massimo Capuano to abandon his plan of keeping the Milan Exchange a solitary platform on a continent of alliances and merged entities. Until the middle of last year, the Italian exchange was seen as a kingmaker of sorts — the crowning piece that could push either Deutsche Boerse or Euronext into continental dominance by signing with one or the other. But after turning down offers from both, the country’s top bankers now say Capuano is steering the exchange to irrelevance.
Indians Add Java
The Multi Commodity Exchange of India has added another global product, teaming up with Euronext.Liffe to launch mini-futures on robusta coffee. The new contract is one-fifth the size of the Euronext.Liffe contract but is deliverable in India.
China Shanghais Foreign Futures Participation?
China’s Securities Regulatory Commission (CSRC) reiterated its earlier intent to launch financial futures products this year, but has backtracked from plans to open the markets to outsiders, citing fears of market manipulation, according to various Chinese press reports. The CSRC itself will not comment.
Russell lAUNCHES benchmark
Russell Investment Group will launch a family of global stock indexes headed by a benchmark that covers 98% of the world’s investable equity through more than 10,000 stocks in 63 countries. No investment vehicles pegged to the Russell Global have been announced but such products are expected to be launched soon.
Everybody wants some
After GFI Group Inc. and ICAP plc acquired a minority stake in the Clearing Corporation (CCorp.), Morgan Stanley purchased nearly 9% of the company for $4.4 million. The shares were purchased at the Refco Inc. bankruptcy auction. A spokesperson for Morgan Stanley described the acquisition as strictly an investment rather than a strategic acquisition, noting that Morgan Stanley already owned more than the requisite 1.8% equity required to clear at CCorp.
