MiFID Drives Chi-X
Start-up equities exchange Chi-X Europe Ltd., which is majority-owned by Japanese bank Nomura Holding through its Instinet subsidiary, says it has drawn a slew of new investments from a consortium of 13 banks, led by Credit Suisse, Lehman Brothers, Morgan Stanley and Chicago-based hedge fund Citadel.
Analysts see it as an attempt by market users to keep a competitive fire burning under the behinds of market providers. Many of the same banks investing in Chi-X are also backing Project Turquoise (or “Project Tortoise,” as critics have come to call it) and the yet to be named U.S futures exchange.
Both projects aim to capitalize on the European Union’s Markets in Financial Instruments Directive (MiFID), which came into effect last year and eases restrictions on who can and cannot act as an exchange.
Dubai recognizes CME Group
The Dubai Financial Services Authority (DFSA) has bestowed the CME Group with Recognized Body status within the Dubai International Financial Centre (DIFC). The status enables DIFC market participants to directly access and trade CME Group products on Globex.