House of Reps. pass bill to reduce Wall Street funding

Exchange Shorts

Securities and Exchange Commission (SEC) is considering some specific transparency rules for dark pools, such as disclosing what feed they use to obtain market data, naming their customers and revealing what, if any, special arrangement those clients have in place.

EU’s bid to set structure rules for around 30 of the region’s largest banks has been strongly opposed by a “substantial number of countries” which have “expressed serious concerns or reservations” about the proposed proprietary trading ban. According to Bloomberg, “only very few countries are explicitly in favor”.

Chicago Mercentile Exchange (CME) expressed its desire to administer the gold “fix”, and that it would bid to be involved in a new process, which may turn the current twice-daily price-setting conference call into an electronic auction, Reuters reported.

U.S. House of Representatives passed a $21.3 billion bill in a 228 to 195 vote to reduce funding for Wall Street oversight and to revamp new agencies dedicated to policing fraud against consumers and to keep risks under reins, Reuters reported. The Democrat-controlled Senate is not expected to approve the bill as it is now.

CME will review the current trading hours for its benchmark livestock futures contracts, the WSJ reported. According to CME spokesman Chris Grams, “livestock customers and industry participants have asked us to review existing livestock trading hours to ensure we are providing the most effective risk-management and price-discovery tools possible and that they continue to reflect the changing needs of our customers and the market.”

London Stock Exchange (LSE) Chairman Chris Gibson-Smith will step down from his role at end-2015 after more than 11 years in service, the FT reported. Robert Webb, the group’s senior independent director, will chair a nominations committee whose work should be completed by December 2015.

Intercontinental Exchange Clear Europe requested that CFTC allow non-clearing members to participate in cross-border margin offsets, the Trade News reported.

Tullett Prebon appointed John Phizackerley as CEO, taking over from Terry Smith, effective September 1. According to Reuters, Smith will remain with the firm as a consultant.

LSE reported 1QFY15 total income of GBP 323.9m (+16% y/y), with revenue increasing 20% y/y, or 12% if the effect of currency fluctuations are not included.

Credit Suisse replaced Barclays as the largest swaps clearer, Risk.net reported. As of June 30, Credit Suisse faced a requirement of at least $7.2b for cleared swaps, while Barclays, which has led the market since OTC client started growing in 2010, is now second with $5.3b in customer collateral.

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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