Shanghai Stock Exchange to launch trading in single stock options

Exchange Shorts

  • London Metals Exchange is likely to double the amount of its capital raised on its share markets in its last financial year, the Financial Times reported. LSE also stated that the amount of equity capital raised on its main bourses in London and Italy in the 11 months to end-February had risen 91% to GBP 28.3b. LSE also reported that LCH.Clearnet, the clearing house in which it has a majority stake, saw a 17% increase in cleared interest rate swaps, to $472 trillion.
     
  • NDAQ CEO Robert Greifeld stated that U.S. regulators are unlikely to implement a US high-frequency trading ban, Reuters reported. According to Greifeld, “people are going to be very hesitant to put in policies that remove liquidity from the market” and that a HFT ban would be unlikely as it would make it difficult for investors to get their trades filled, and it would lead to wider bid-ask spreads.
     
  • Shanghai Stock Exchange will launch trading in single stock options and exchange-traded fund options on April 1, making it the first Chinese exchange to support live options trading, according to FOW Intelligence.
     
  • ICAP appointed industry veteran Patrick Birley as chief executive of ICAP Securities and Derivatives Exchange, replacing Seth Johnson. Birley previously held senior roles at LSE, NYSE Euronext and LCH.Clearnet, the Financial News reported.
     
  • Chicago Mercantile Exchange hired former LME head of Asia Liz Milan as a consultant, FOW Intelligence reported.
     
  • Cargill’s Energy, Transportation and Metals division closed its global coal and European power and gas trading businesses, Platts reported. According to a Cargill spokesman, “significant changes in the coal and European power and gas markets have led Cargill ETM to withdraw from these two sectors…We will not take on any new business, but we will continue handling any existing business and execute our existing commitments.”
     
  • DB1 and Bank of China are expected to sign a strategic partnership agreement to make it easier for Chinese investors to gain access to the European capital market. The deal will see Bank of China becoming a trade and clearing partner of DB1, according to Reuters.
     
  • The Commodity Futures Trading Commission fined Morgan Stanley $490,000 for not segregating client funds from other funds on the bank’s books during both 2012 and 2013, Reuters reported.
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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