MIFID II friendlier to traders

ERDesk industry shorts

* The European Commission published the MiFID II draft on Feb. 18. Trading barriers such us collateral requirements, netting of contacts and cross-margining were removed, and a CCP shall accept to clear financial instruments traded at another venue if this “would not threaten the smooth and orderly functioning of the markets, in particular due to liquidity fragmentation, or would affect systemic risk.” Clearing: Trading venues would not require interoperability arrangements.

* CME and ASX Clear are in conversations to develop a clearing partnership, where international counterparties would be able to clear Australian derivatives through CME.

* ITG is evaluating a bid for NYFIX technology division from ICE, according to WSJ. 

* BVMF3: BCB and CVM approved the new iBalcao module for registration of OTC transactions.
 
* BOLSAA reported 4Q13 EPS of P$0.34 (+13% q/q, +15% y/y) 2c above ERDesk estimate and 3c above consensus. Revenues were P$585m (+2% q/q, +10% y/y) and OpEx were P$347m (+11% q/q, +21% y/y).
 
* Tullett Prebon  and Central Tanshi agreed to reorganize their joint business in Tokyo. Central Tanshi will sell to Tullett Prebon its stake in Yamane Tullett Prebon (Japan), which has been operated as a joint venture since 1997.
 
* Japan Exchange evaluates merging its alternative markets Mothers, TSE Second Section and Jasdaq.
 
* ICE sent a comment letter to the CFTC stating that exchanges are in a better position than other organizations, including the CFTC, to implement risk controls for automated trading.
 
* EEX will release fundamental and transaction data to raise transparency. EEX will expand the options for the timely disclosure of insider information for market participants
 
* NDAQ opened a new office in Manila to provide service and support to its global Corporate Solution unit.
 
* UK FSA approved the LIBOR Code of Conduct prepared by ICE Benchmark Administrator

About the Author

Bernardo Mariano brings to ERDesk his experience structuring private deals for the acquisition of mutual exchanges. Prior to joining ERDesk Bernardo worked as a Director for Instinet and later, CEO of Reuters' Bondex. He holds an MS in Economics from University of Illinois and an MIA in Finance from Columbia University. He can be reaced at be reached at mariano@erdesk.com. 

Equity Research Desk (www.erdesk.com) provides fundamental analysis of global capital markets related entities to support the investment process of buy-side analysts at hedge funds and traditional money managers. The company focuses its coverage on securities exchanges, discount brokers, trading platforms, asset managers, financial-related technology companies and intellectual property assets in the US, Europe, Asia, and Latin America.

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