New for Traders: Week ending October 5

Commodities

  • The Kansas City Board of Trade has filed a submission with the CFTC to eliminate early opening outcry trading for its red winter wheat futures and options contracts on U.S. Department of Agriculture (USDA) report release dates, effective Jan. 1. Trading will now open at 9:30 a.m. CST on those days, following a USDA announcement that it will release statistical reports at 11:00 a.m. CST.
  • The European Energy Exchange (EEX) plans to launch trading of wind, hydroelectric and solar power products in the first quarter of 2013.

Options

  • The CBOE Futures Exchange (CFE) plans to launch its S&P 500 Variance futures later this quarter. Similar to over-the-counter (OTC) variance swaps, the contract will allow users to trade the difference between the implied and realized variance of the S&P 500 Index. The CFE also plans to introduce a Lead Market Maker Program for the futures.
  • 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.

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 OTC 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

  • The NASDAQ OMX Group Inc. announced that SBI Japannext has launched a new NASDAQ OMX-powered X-stream INET trading system. The Japanese proprietary trading system will benefit from ultra-low latency and throughput capacity advantages following the upgrade.
  • Spread Networks announced latency improvements on its two premiere service offers. The privately owned telecommunications provider said that its Ultra Low Latency Chicago-New York Dark Fiber service is operational at a round-trip latency of 12.98 milliseconds, while its Ultra Low Latency Chicago-New York Wavelength service now achieves operational round-trip latency between Chicago and New York below 14.1 milliseconds.
  • RTA Realtime System Group announced the launch of Tango OnDemand, a new fixed-price package of customized algorithmic and automated trading solutions. The package includes the RTD Tango, RTD Tango Traders and RTD Tango QUANT trading platforms, and will allow single users and firms to pay a monthly fee for their choice of platform, two fully hosted exchanges and built-in trading strategies.
  • 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.

Regulation

  • The Commodity Futures Trading Commission (CFTC) certified the Singapore Exchange Derivatives Trading Ltd.’s (SGX) MSCI Indonesia Index futures contract for sale to U.S. persons. The contract will now be available for trading through SGX’s direct access terminals in the U.S.
  • 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.
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