CME fines traders for EFP rule violations

Exchange shorts

Intercontinental Exchange (ICE) delisted all contracts listed on the Singapore Mercantile Exchange (SMX) and “a period of business transition is currently in place in order for ICE to implement technology changes in consultation with the market regulator.” According to Reuters, a re-launch is expected sometime later in 2014, and “new product opportunities include the potential for a variety of new cleared contracts to serve the Asian commodity and financial derivatives markets.”


CME Group fined nine traders and clearing members for violating rules governing trades involving Exchange for Related Position transactions (EFRPs), a type of transaction which CFTC expressed concerns over in 2013, Reuters reported.


BME (Spanish Exchanges)  general manager Javier Hernani stated that the bourse will not invest in Euronext, the FT reported. BME however, is willing to explore partnerships with an independent Euronext, whose parent ICE is looking to sell up to 30% stake in Euronext before a summer IPO.


European Commissioner Algirdas Semeta stated that a transaction tax deal for 11 euro zone countries could be introduced by May, and that there would be a “step by step” rollout.


The Financial Conduct Authority (FCA) stated that UK firms will have to “have a detailed and realistic plan to achieve compliance” with EMIR regulations by April 30, the Financial News reported. FCA also added that its supervision of EMIR would “focus on timely confirmations, reporting of derivatives to trade repositories and readiness for reporting of mark to market exposures to trade repositories and the clearing obligation.



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.