Nasdaq to launch kill switch March 1

Exchange shorts

NASDAQ is preparing a “kill switch” to avoid future trading debacles. The kill switch will be functional by March 1, and member firms will be given a tool to set limits on the size of positions they take. Should limits be breached, the kill switch will be triggered and trading will be prevented, with the firm’s open orders in the system to be cancelled.

 

Deutsche Boerse AG (DB1) aims to set up a Singapore-based clearinghouse, Bloomberg reported. According to CEO Reto Francioni, the expansion will increase net annual revenue to as much as EUR 2.7b within the next four years, and “the re-regulation of the capital markets is, on balance, not a burden, but an opportunity for market infrastructure providers.”

 

DB1 CEO Reto Francioni said “the chances of a hostile takeover succeeding in our sector are zero…even friendly ones have been difficult.”

 

ICE: ITG may bid for ICE’s Nyfix, a trading system that is being sold off as part of the consolidation of NYSE, the WSJ reported.

 

BVMF3’s iBalcão post-trading platform for the over-the-counter securities market received approval from CVM and the central bank, and the platform will initially offer registration, clearing and settlement services for certificates of deposits, real estate-backed credit notes, and structured notes.

 

MOEX completed the buyback of 99,852,660 shares from its subsidiary MICEX-Finance. MOEX aims to retire the shares and make the amendments to its Charter in March.

 

MCX Stock Exchange is reviewing the pricing of its proposed rights issue. Should some shareholders prevail, it may have to reduce the price of its 1:1 issue. The exchange is planning to raise up to Rs 500 crore and is trying to convince them on the pricing of Rs 10 a share of Rs 1 face value.

 

National Stock Exchange (NSX) has successfully transitioned to an inverted pricing model – a fee schedule that pays the “taker” $0.0015 to remove liquidity to or above $1.

 

SEC is reviewing whether more proprietary high-speed trading firms should register as broker-dealers, which would subject them to greater oversight. Reuters reported.

 

Euroclear Bank has been selected by EuroCCP as sole settlement provider for all US-listed equities transactions made on Turquoise, the pan-European trading venue. The service was launched today, and transactions in US stocks listed and traded on Turquoise will be settled on behalf of clients at Euroclear Bank in any of the 54 settlement currencies offered by the ICSD.

 

Indonesia Commodity and Derivatives Exchange (ICDX) and Global Markets Exchange Group (GMEX) signed an MoU where they will explore opportunities for ICDX to utilize GMEX Technologies' exchange trading platform, ForumMatch, and surveillance system, ForumDetect; and also for cross linkage between GMEX and ICDX.

 

SEC appointed attorney and former regulator Stephen Luparello as director of the Trading and Markets Division, Reuters reported. Luparello is currently a partner at law firm WilmerHale, and prior to that he spent 16 years at FINRA, where his responsibilities included market regulation and enforcement.

 

Ontario Securities Commission (OSC) will soon reduce fees for smaller companies, with the fee relief to range between C$235 and C$17,275 for registered firms and between C$160 and C$13,150 for reporting issuers. According to Reuters, applicants for the relief must present their claims by end-March, and OSC will review the fee rule, accept public comments and possibly tweak the rule later this year.

 

 

 

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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