Lawsuit accuses U.S. exchanges of manipulating securities market

Exchange Shorts

The Chicago Mercantile Exchange launched EUR-denominated deliverable swap futures, which began trading on April 14, 2014, with 2-year, 5-year and 10-year maturities. The notional value is EUR 100,000 per contract.

  • U.S. exchanges and brokerages are being sued in a class action lawsuit by the Providence of Rhode Island, which accuses them of manipulating U.S. securities market, Reuters reported. Among the exchanges targeted are BATS Global Markets, CBOE, NASDAQ OMX and NYSE. According to the report, a number of regulators are probing the industry, including the Justice Department, SEC and Commodity Futures Exchange Commission.
  • The Hong Kong Exchanges & Clearing Limited aims to launch several metal and energy contracts aimed at China, which will begin trading later this year. According to the South China Morning Post, the new metal contracts to be launched include copper, aluminum and nickel. The Hong Kong contracts have different specifications from the ones traded in London. They would be settled in cash without physical delivery, unlike the LME which maintains an elaborate network of metal warehouses around the world.
  • NASDAQ Dubai saw the listing of a USD 650m (AED 2.39b) Sukuk.  This raises the value of Sukuk that have been listing on NASDAQ Dubai in 2014 YTD to USD 6.35b.
  • NDAQ was upgraded to “Outperform” from “Neutral” at Credit Suisse. Target price was raised to $42 from $40.
  • North American Derivatives Exchange added Group One as a market maker, the Options Insider reported.
  • JP Morgan’s head of commodities financial sponsor coverage, David Samuels, left the bank in early April, Risk.net reported. Samuels’ resignation follows a major commodities shake-up at the bank’s commodities division and the resignation of Blythe Masters, the bank’s New York-based global head of commodities.
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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