Exchange Sector Review, Week ending Dec. 19, 2014.
The exchange sector was flat, underperforming global equities by 40 bps.
U.S. Federal Reserve will give banks an additional two years until July 2017 to sell private equity and hedge fund stakes covered by the Volcker rule. According to the WSJ, the move will “reduce the potential disruptive effects that significant divestitures of covered funds could have on markets.”
U.S. Treasury Department expressed opposition to the EU’s plan to regulate financial and commodity price benchmarks, which are being examined for possible manipulation. According a letter from the Treasury to lawmakers, the United States “does not plan to adopt supervision of benchmarks.”
BGC increased its takeover offer for rival interdealer broker GFI Group by 3.8%. The new offer is $5.45 a share, 20 cents above the previous proposal, Bloomberg reported.
UK Supreme Court denied Rusal the right to appeal against London Metal Exchange’s changes to metal storage rules as Rusal did “not raise an arguable point of law,” the Wall Street Journal reported.
Chicago Mercantile Exchange launched the first suite of physically and financially settled European natural gas cleared futures contracts, which will be listed on CME Europe for first trade date on Jan. 19, 2015.
Intercontinental Exchange Inc.: NYSE aims to waive costs for midpoint liquidity orders coming from retain investors in order to bring more trading back from “dark pools” and other OTC venues, the WSJ reported.
ICE warned that EU lawmakers’ plans to open up the derivatives market would remove operators’ incentives for innovation, the FT reported. ICE also stated that trading could move away from Europe should it pursue new rules to introduce more competition for derivatives.
Volatility of oil to remain elevated, and the UAE decision to keep current production levels removes price floor. High volatility is driving WTI volumes higher, and is also driving Brent volumes higher. The increase in CME contracts is a little higher than in ICE contracts. The open interest in WTI options expanded, while the open interest in Brent contracts declined.