Legal barriers block ESMA

Exchange Shorts

FCA granted US HFT firms XR Trading and Headlands Technologies approval, and both firms now have proprietary trading licenses, and are unable to hold client Money, the Financial News reported.

Morgan Stanley acquired Deutsche Bank’s bulk commodities trading book dealing in coal, iron ore and freight forward contracts to expand in commodities derivatives, Reuters reported.

ESMA is still unable to access information help by U.S. swap data repositories as a result of legal barriers in the Dodd Frank Act, Risk.net reported. According to an ESMA spokesperson, “currently, there is no international agreement in place. The European Securities and Markets Authority has no access to U.S. SDRs because of the indemnification clause. However, ESMA and the Commodity Futures Trading Commission are discussing ways to address these issues.”

Korea’s Financial Services Commission's (FSC) proposed plan to boost investor participation in derivatives does not convince market participants, Risk.net reported. According to Samsung Securities chief risk officer Wonjae Chang, “the FSC is trying to revitalize the derivatives market, but the method isn’t very helpful. There are too many barriers for retail investors.

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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