CFTC is considering toughening the rules applied to automated traders

Exchange Shorts

The exchange sector was down 60 bps this week, outperforming global equities by 30 bps.

European Commission will exempt banks in the European Union from having to hold extra capital to cover its trades at clearing houses that are not up to the EU’s standards, for a six-month period, Reuters reported. 

The CFTC is considering toughening the rules applied to automated traders, the Financial Times reported. CFTC Chairman Timothy Massad expressed that the regulator was considering making it a requirement for proprietary traders with direct electronic access to an exchange to register with authorities, and whether clearing brokers should be obliged to manage their customers’ algorithm-related risks.

ICE Trade Vault Europe received ESMA approval to extend its Trade Repository registration for the reporting of FX derivatives trade data. ICE Trade Vault Europe will assume the collection of FX derivatives data, which includes futures, options and forwards immediately. 

ICE Endex will collaborate with Gestore dei Mercati Energetici S.p.A. and Snam S.p.A. to launch physically-delivered Italian natural gas futures contracts on September 14, 2015.

Markit acquired Information Mosaic, a corporate actions and post-trade processing specialist, part of its plan to extend its corporate actions service and support the full-trade lifecyle, the Trade News reported. 

CBOE will acquire the market data services and trading analytics platforms from Livevol, Inc., a leading provider of equity and index options technology and market data services. The deal has been approved by CBOE’s Board of Directors and is expected to close by June 30, 2015. Financial terms of the deal were not disclosed. 

DB1 applied to set up a derivatives venue in Singapore, and upon receiving regulatory approval, the exchange should begin operations in 2Q16, Reuters reported. 

TMX is looking to hire a sales chief as part of CEO Lou Eccleston’s reshuffle of the organization, Reuters reported. Eccleston will concentrate on commercial strategy and client experience to deflect competition, pitch products to investors and attract new stock issues. 

European Securities and Markets Authority (ESMA) chairman Steven Maijoor expressed that the EU may need to be more flexible in its approach in dealing with foreign derivatives rules.

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.