ESMA relaxes industry concerns

Exchange Shorts

DB1: Eurex plans to launch listed variance futures based on the EuroStoxx 50 on September 22.

ESMA aims to boost matching rates for Europe’s reporting regime still requires work, according to market participants, who state that the system will fall short if counterparties use different unique trade identifiers, Risk.net reported.

ESMA’s proposal on derivatives trading rules makes room for covered bond hedges that meet six conditions, relaxing industry concerns about the ability to meet initial margin payments, Risk.net reported.

People’s Bank of China (PBOC), China’s central bank, approved the launch of the country’s first iron ore and thermal coal swap contracts, Reuters reported. Both contracts will be priced in RMB and will trade OTC, with clearing handled by the Shanghai Clearing House, and both “will be launched soon and will be rolled out at the same time.”

European Central Bank discussed the risks linked to the increasing popularity of complex computer programs for FX trading, the WSJ reported. Other topics of discussion also included whether banks’ technology can cope with an increase in demand from investors to execute orders algorithmically instead of over the phone.

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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