New for Traders: Week ending September 28

Commodities

  • The European Energy Exchange (EEX) plans to launch trading of wind, hydroelectric and solar power products in the first quarter of 2013.
  • CME Group will launch a new suite of natural gas and power markets, which will be listed as futures on CME Globex, CME ClearPort and the New York Mercantile Exchange. The new suite includes 164 natural gas contracts, as well as 48 power contracts for the four most liquid North American ISOs.
  • CME Globex will launch new short-dated crop wheat options beginning Sept. 4. The new options will offer enhanced hedging flexibility and new trading opportunities to customers. They also are designed to offer lower premiums and earlier expiry dates during the growing season.

Options

  • The Options Industry Council (OIC) announced that its Investor Education Day will be held Sept. 29 in San Francisco. The event includes an Options Basics track, which focuses on fundamentals, and an Advanced Strategies course that teaches more complex concepts such as butterflies, condors and the Greeks.
  • The BOX Options Exchange, an all-electronic equity options market, was added to the TMX Atrium community. After connecting to TMX Atrium’s platform, BOX clients will be able to access multiple liquidity centers and trade a range of asset classes using a single connectivity infrastructure.
  • The CBOE Futures Exchange (CFE) announced plans to expand trading hours for VIX futures from eight hours to nearly 24, beginning in 2013. CFE also hopes to establish a London hub next year.
  • Direct Edge transitioned from a maker-taker model to a taker-maker pricing model on Sept. 1. The new model includes a fee for adding liquidity at $0.0006 per share and a rebate for removing liquidity at $0.0004 per share (adding or removing liquidity for securities costing less than $1.00 is still free).
  • Osaka Securities Exchange plans to offer maker-taker pricing, which will pay the suppliers of bids and charge to execute against them, according to Bloomberg. The exchange also is considering offering rebates to customers who will make a market in futures offering a hedge against swings in the Nikkei 225 stock average.
  • Intercontinental Exchange accelerated its plans to transition over-the-counter (OTC) energy swaps and options to futures, in response to customer demand. The transition will now happen on Oct. 15, rather than Jan. 2013.

Financials

  • CME Group announced the launch of Chinese Steel Rebar HRB400 (Mysteel) Swap Futures, which will begin trading on Oct. 15. In January, CME Group partnered with Mysteel, China’s leading provider of ferrous price and indexing services, to develop risk management products for the ferrous industry; this will be the first product listed by a CME Group exchange based in Mysteel’s price data services.
  • The CME Group will launch its deliverable interest rate swap futures contracts on Nov. 13. The contracts, which will be listed on the Chicago Board of Trade, is intended to complement CME’s interest rate futures and options business and its cleared over-the-counter interest rate swap solution.
  • Newedge announced that it has received approval for membership to clear OTC interest rate swaps at the CME. It is the first FCM and non-traditional OTC IRS swap dealer to offer central counterparty clearing of OTC interest rate derivatives.
  • NYSE Liffe U.S. launched three new global equity index futures on Sept. 10. The contracts, mini MSCI Canada, mini MSCI Emerging Markets Latin America and mini MSCI World futures, will give customers more flexibility and exposure to global markets.
  • Chi-X Canada ATS Limited announced plans to launch a second lit marketplace, CX2 ATS, in the first quarter of 2013. With CX2, Chi-X Canada will establish a different market model and provide the trading community with greater choice and functionality.
  • CETIP and ICE jointly launched a Brazilian fixed income trading platform called “Cetip | Trader.” ICE will provide the technology for the platform, which will combine electronic trading, voice confirmation, straight-through processing and real-time and historical data in a single tool that will provide transparency, price formation and workflow automation to Brazil’s fixed income markets.

Forex

  • Barclays Stockbrokers has partnered with FXCM Inc. to launch Barclays Margin FX, a new retail forex trading offering available in the United Kingdom.
  • CME Group announced the launch of U.S. Dollar Denominated Ibovespa Futures, beginning Oct. 22. The new cross-listing arrangement is designed to give customers ease of access and more risk management tools.
  • Nasdaq OMX Group will establish its interest rate derivatives NLX trading platform in London, with products to include the German bund, the Euribor and four others. According to NLX CEO Charlotte Crosswell, NLX is “focused on creating competition with incumbent large exchanges” and “[will] live with lookalike contracts.”
  • IS Investment, Turkey’s largest investment bank, has partnered with Integral Development Corp. to automate its margin FX business. By customizing Integral’s cloud-based technology, IS will gain access to more than a dozen bank liquidity providers and a high-performance connection to MetaTrader 4.
  • CME is applying to the U.K.’s Financial Services Authority in the hopes of creating a London-based derivatives exchange. The exchange, CME Europe, would launch in mid-2013, and initially would trade FX futures.

 Technology

  • Fidessa Group has broadened its connectivity service for the buy-side. The new service will cover all hosting, management and operational aspects of a firm’s FIX and non-FIX connectivity and infrastructure.
  • On Sept. 20 Trading Technologies launched “Trade Talk,” a corporate blog written by its product managers to communicate with its global community of customers, partners and employees. The blog will discuss TT software, offer tips and tricks, introduce new features and products, explore existing capabilities and present ways to help customers best leverage its platform. According to the announcement, the blog will go beyond TT-centric topics and examine key issues facing the industry. Trading Technologies has released TT API, a new application programming interface designed to let end-users and third parties build faster, more scalable trading applications on the TT platform. The company also will offer a gateway to connect its trading software to the Eris SwapBook electronic trading platform from Eris Exchange.
  • IntercontinentalExchange acquired WhenTech, a technology, software and information provider for marketing participants. "By closely integrating WhenTech's market-leading pricing and risk management features into the ICE options trading workflow, our customers will be able to identify trading opportunities quickly and execute options orders in a highly efficient and effective manner," ICE Futures U.S. President and COO Ben Jackson said.
  • SunGard released a new version of its MarketMap market data terminal applications, designed to allow users to view current macroeconomic data in a calendar format. The applications include enhancements to the economic and financial indicator viewer, news navigator and Fitch Solutions’ credit default swaps data.

Regulation

  • The European Parliament voted against a Europe-wide ban on commission included in the Markets in Financial Instruments Directive (MiFID II). The parliament also voted to ensure that all high-frequently trading orders could not be cancelled or modified for at least 500 milliseconds, and added amendments to reduce speculation in commodities and derivatives by imposing thresholds.
  • The CFTC has certified an S&P 500 Index futures contract from Bolsa de Valores, Mercadorias e Futors (BVMF-Brazil). The contract, which was submitted for review on Aug. 9, can now be offered or sold in the U.S. through BVMF’s direct access terminals.
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