March in the News

February 15, 2016 06:00 PM


The Chicago Board Options Exchange announced in January plans to migrate its CBOE and C2 options markets as well as its CBOE Futures Exchange (CFE) to an internally developed matching engine beginning in August, according to CBOE CEO Ed TIlly. The new system, dubbed Vector, will replace the current internally developed CBOE Direct platform, which the exchange launched in November 2001 and runs all three markets.

The new platform initially will be rolled out for CFE in August and then subsequently to its options exchanges. “Trading volumes on the exchanges have grown and the growing demands of the higher-frequency trader require us to keep up,” says Tilly. “It’s difficult to keep up a system that was designed with your customers’ needs from 14 to 15 years ago, and meet their needs for today and tomorrow.”
CBOE also announced that trading volume on CFE, both exchange-wide and for VIX futures, reached a new all-time high in 2015, the sixth consecutive year of record highs.


The U.S. Commodity Futures Trading Commission (CFTC) in January issued an order delegating to National Futures Association (NFA) certain responsibilities related to notices of swap valuation disputes filed by swap dealers and major swap participants pursuant to CFTC regulation 23.502(c). Beginning March 1, NFA will receive, review and maintain those notices on behalf of the CFTC, and provide summaries and reports regarding those notices to the CFTC.


BATS Global Markets, which is owned by 13 Wall Street banks and electronic trading firms, is making a second attempt at a public stock offering according to a recent regulatory filing. BATS will list on its own exchange under the ticker BATS, and use the proceeds of the anticipated $100 million offering to pay off debt and make acquisitions.
In December BATS reported volume and market share activity, which showed that its U.S. equity options market share doubled, and it more than doubled the number of ETFs listed on its U.S. market in 2015.

Phillip Capital Inc.

Phillip Capital Inc., a member of the Singapore-based PhillipCapital Group, announced that it has expanded its current financial services beyond futures and forex to include self-clearing corporate equity and debt securities.  The firm, now a FINRA member, will settle securities transactions via the Depository Trust Clearing Company.


Convergex, a global brokerage and trading related services provider, has entered into a clearing agreement with INTL FCStone Financial Inc. that will give Convergex clients access to FCStone’s futures execution and prime brokerage platform. Convergex clients will have access to 24-hour trading and full portfolio reporting features, as well as FCStone’s research geared toward CTAs, CPOs and hedge funds.


OCC announced a declaration of a refund, dividend and fee reduction under its approved capital plan. The refund of approximately $39 million to clearing members and the dividend of approximately $17 million to Stockholder Exchanges will be paid in Q1 2016 following the issuance of OCC’s Financial statements. The new fee schedule will commence on March 1, 2016 and will result in the reduction in the average clearing fee of approximately 19% from current levels.


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About the Author

Editor-in-Chief of Modern Trader, Daniel Collins is a 25-year veteran of the futures industry having worked on the trading floors of both the Chicago Board of Trade and Chicago Mercantile Exchange.