ICE acquires IDC
Intercontinental Exchange announced that it has entered into a definitive agreement to acquire Interactive Data Corp. The acquisition is valued at approximately $5.2 billion, including $3.65 billion in cash and $1.55 billion in ICE common stock. IDC, based in Bedford, Md., is a provider of financial data, serving the mutual fund, bank, asset management, securities and financial instrument processing and administration sectors. ICE also entered into a definitive agreement to acquire GFI Group subsidiary Trayport for $650 million. ICE Chairman and CEO, Jeff Sprecher is featured in Market Makers & Shakers (p 20).
The U.S. Commodity Futures Trading Commission (CFTC) in November released the agency’s enforcement results for fiscal year 2015. The agency filed 69 enforcement actions focusing on manipulation, spoofing and fraud and ensuring market participants meet their regulatory requirements. It included a record $3.144 billion in civil monetary penalties ordered against wrongdoers.
Environmental Financial Products, LLC (EFP) and CBOE Holdings, Inc. (CBOE) set Dec. 11 as the date they will launch the American Financial Exchange (AFX), an electronic marketplace for small and mid-sized banks to lend and borrow short-term funds. The initial contract will be for an overnight loan. AFX will focus on 1,740 community and regional banks with between $500 million and $125 billion in assets, which hold a combined total of $4.7 trillion.
The Futures Industry Association (FIA) announced in November an agreement executing the merger of, FIA, FIA Europe and FIA Asia into a single organization. The merger into one FIA will take effect Jan. 4, 2016. The newly merged organization will represent and serve both the global and regional needs of the futures, options, and cleared swaps industries.
The London Metal Exchange (LME) and LME Clear signed a Memorandum of Understanding with a group of Chinese and UK financial institutions in support of China’s “The Belt and Road” initiative. The other parties signing the MoU were Industrial and Commercial Bank of China Ltd, China Construction Bank Corporation, Bank of China Ltd, Agricultural Bank of China Ltd, China Merchants Securities International Co Ltd, GF Financial Markets (UK) Ltd and Standard Chartered Bank.
The Federal Reserve Bank of New York announced James Gorman, chairman and chief executive of Morgan Stanley, has been elected to its board of directors, marking the first time in three years a board member comes from a large financial firm that could pose financial-system risk.
CLS and TriOptima
CLS Group (CLS) and TriOptima announced that they have launched the triReduce CLS Forward FX Compression Service. The service is designed to reduce operational, credit and counterparty risk for institutions and enhance capital efficiency. It is consistent with the goals of EMIR, Basel III and Dodd-Frank, all of which seek a more robust and transparent post-trade environment.
WisdomTree, one of the leading sponsors of exchange-traded funds, is listing three of those funds on BATS for the first time. The WisdomTree listings follow the news that two State Street ETFs would list on BATS, and a concerted effort from BATS to win business from the NYSE and Nasdaq.
Computer Voice Systems
Computer Voice Systems Inc. announced the latest addition to its Quick Suite Trading (QST) family of software products and services for the futures trading industry. Quick Back Office (QBO) is the first real-time back office system developed with modern technology and infrastructure. It has been designed to provide futures commission merchants with real-time access to customer account activity and risk management. QBO can operate as a standalone back office system or as part of QST’s family of trading solutions that include native trading front-ends for Windows, OS X, iPhone/iPad, Android, Blackberry and browser.
Bolsa Institucional de Valores
Bolsa Institucional de Valores (BIVA), the new Mexican bourse, will adopt Nasdaq’s X-stream Trading technology along with the U.S. exchange’s SMARTS surveillance service, the two companies said in a press release. BIVA is Mexico’s second exchange.
Australian Securities Exchange
The Australian Securities Exchange (ASX) and Object Trading announced that Object Trading will be expanding its Direct Market Access Service Platform by co-locating its managed software, client gateways and global connectivity network in the Australian Liquidity Center, ASX’s data center.
OneMarketData, the founders of OneTick, announced the acquisition of Virginia-based Tick Data Inc. for an undisclosed sum. Tick Data Inc. will be a wholly owned subsidiary of OneMarketData and will continue to operate from their Virginia offices under the current management team.
PRICE Futures Group
The PRICE Futures Group announced the appointment of Ron Mark to president. Formerly the Director of Business Development, Mark’s trading background and experience in capital introduction guided the direction of new business products and services for the firm.
Markit announced the launch of Markit WSO Credit Manager, a credit and portfolio analysis application for investment professionals focused on bank loans. The application helps portfolio managers and credit analysts make investment decisions by centralizing the data they need to select investments, monitor credit performance and identify risk. The system alerts users about changes to portfolio holdings and provides collaboration tools to help investment teams coordinate their response if action is required.