Financials

• Several exchanges admitted new members: BNP Paribas Securities Services joined Singapore Exchange as a clearing member, bringing the number of clearing members in the securities market to 27. The Dubai Gold and Commodities Exchange accepted Marex Spectron Group as a broker clearing member, and Banco Santander joined European Commodity Clearing as a general clearing member.

• Peregrine Financial Group Trustee Ira Bodenstein asked a court for more time to shut down the bankrupt brokerage. In a court filing, Bodenstein said that he needs until March 15 to consolidate the firm’s business operations, sell off its assets and review customer claims.
• The Tokyo Stock Exchange and Osaka Securities Exchange merged their operations to form the Japan Exchange Group, a new holding company.

• MF Global Inc. (MFGI) reached an agreement with MF Global UK Ltd. to resolve all claims between the two entities. The deal will return between $500 million and $600 million to MFGI. The broad agreement also resolved claims between MFGI and MF Global Holdings as well as between Holdings and the UK affiliate.

• The Hong Kong Futures Exchange (HKFE) revised margin requirements for futures contracts based on its normal procedures and standard margining technology. The changes will take effect on Jan. 2.

Technology

• OCC chose Markit to provide daily implied volatility data on the S&P 500 Index. The Russell 2000 and NASDAQ 100 indexes will be added to the service in the first quarter of 2013.
• ConvergEx’s Darkest, Grey and Abraxas algorithms route to six new venues—four lit and two dark—in Hong Kong, Australia and Japan.

• Bursa Malaysia implemented the Millennium SurveillanceTM System on Dec. 31. The system was developed by MillenniumIT, part of the London Stock Exchange group, and is designed to provide a cross-market surveillance platform for the equity and derivatives markets.

Regulation

• The Indian government gave MCX Stock Exchange regulatory (MCX-SX) approval to become a recognized stock exchange. MCX-SX has already received a commencement certificate from the Securities and Exchange Board of India for going live in product segments including equity, wholesale debt (bonds) and interest rate derivatives.

• The Depository Trust & Clearing Corp. (DTCC) announced that, as of Jan. 3, all registered swap dealers active in credit and interest rate trading are sending information to its swap data repository.
• Nearly half of sell-side firms are unprepared for over-the-counter regulation deadlines, according to a new survey from consulting firm Rule Financial. According to the survey, 30% of sell-side respondents said they are not equipped to handle regulatory changes affecting inventory management, pricing and valuation of assets.

• The Hong Kong Securities and Futures Commission authorized the Osaka Stock Exchange to provide automated trading services through its securities and derivatives trading platforms.

Commodities

• NASDAQ OMX Commodities introduced German power futures, European-style options for German power forwards and futures, Swedish Norwegian electricity certificates and European Union aviation allowances futures. It also extended the German and Nordic power forward curves.
• Beginning Feb. 25, SGX will offer iron ore futures and launch fungible freight and oil contracts.

• CME Clearing Europe introduced two near over-the-counter (OTC) iron ore contracts for clearing: Iron Ore 62% CFR China Average Price Options and Iron Ore 62% CFR China Calendar Swaps.
• The European Energy Exchange plans to launch three new futures contracts for trading of hydroelectric power from the Scandinavian and Alpine regions, along with wind power from northern Europe.

Managed Funds

• The Hedge Fund Association announced that it has created a High Net Worth Advisory Board that will develop global educational programs and networking events for high net worth investors.

Options

• Market Data Express, an affiliate of the Chicago Board Options Exchange, will launch the CBOE Customized Option Pricing Service on Jan. 14. The data service is designed to offer subscribers end-of-day indicative valuations for “customized” options including FLexible EXchange (FLEX) and some over-the-counter options.

• The Miami Options Exchange (MIAX) launched on Dec. 7 after receiving regulatory approval from the Securities and Exchange Commission. It is the 11th U.S. equity derivatives market.

• ForexThomson Reuters enhanced its FX matching platform designed to boost capacity, scalability and performance. New features include a graphical user interface and click to trade capability.
• Intercontinental Exchange (ICE) will launch two new cash-settled forex futures contacts for the Indian rupee (INR)/U.S. dollar and Brazil real/U.S. dollar beginning Jan. 28, 2013. ICE is the first U.S. exchange to launch an INR futures contract.