SEC Greenlights IEX
The Securities and Exchange Commission on June 17 approved Investors Exchange LLC’s (IEX) application to register as a national securities exchange. At the same time, the Commission issued an updated interpretation that will require trading centers to honor automated securities prices that are subject to a small delay or “speed” bump when being accessed.
SEC Chair Mary Jo White said, “Today’s actions promote competition and innovation, which our equity markets depend on to continue to deliver robust, efficient service to both retail and institutional investors.” She added, “A critical role of the Commission’s regulatory framework is to facilitate the ability of market participants to craft appropriate market-based initiatives, consistent with our mission to protect investors, maintain market integrity and promote capital formation.”
The SEC announcement noted that, “IEX must satisfy certain standard conditions specified in the Commission’s order before it is able to begin the process of transitioning its operation to a national securities exchange.”
The Commission’s interpretation applies to the Order Protection Rule under Regulation NMS.
CBOE Holdings Inc. and Eris Exchange LLC announced that CBOE Holdings has made a minority equity investment in its parent, Eris Exchange Holdings LLC. Eris is a U.S.-based futures exchange group offering swap futures as a capital-efficient alternative to over-the-counter (OTC) swaps. CBOE and Eris are launching the partnership to develop product solutions that are expected to address the impact of international regulatory reforms, including Basel III, European swap clearing and trading mandates and margin for uncleared swaps.
CBOE announced in June that it has entered into an exclusive licensing agreement with Social Market Analytics (SMA) to develop a series of sentiment-based strategy benchmark indexes based on SMA’s social media metrics. Chicago-based SMA, provides actionable intelligence from social media sources. SMA’s patented process extracts relevant Tweets, validates their sources and evaluates their meanings.
Also in June, CBOE was named “Exchange of the Year” at Global Capital’s Americas Derivatives Awards 2016 ceremony in New York City. The annual event honors the companies, platforms, services and products throughout the Americas that have made an impact on the U.S. derivatives industry.
Global identity verification company Trulioo, announced in May that its flagship identity verification solution, GlobalGateway, won the 2016 Card-Not-Present Award in the ‘Best Identity Verification and Authentication Solution’ category.
The International Swaps and Derivatives Association Inc. (ISDA) has announced the appointment of Katherine Tew Darras as General Counsel. Tew Darras will lead ISDA’s efforts to develop the legal standards, documentation and opinions necessary to support global cleared and non-cleared derivatives businesses. The company also has appointed two senior executives from a central counterparty (CCP) and a futures commission merchant: John Dabbs, Global Head of Prime Derivatives Services at Credit Suisse, and Kim Taylor, President of Global Operations, Technology and Risk at CME Group.
ICAP, a markets operator and provider of post trade risk mitigation and information services, announced that that China Foreign Exchange Trade System (CFETS), China’s official inter-bank market trading platform and infrastructure provider, has selected ICAP to deliver the underlying technology for fixed income and foreign exchange (FX) electronic execution services in mainland China.
Microsoft & LinkedIn
Microsoft and LinkedIn have entered into a definitive agreement under which Microsoft will acquire LinkedIn for $196 per share in an all-cash transaction valued at $26.2 billion, inclusive of LinkedIn’s net cash. The announcment noted that LinkedIn will retain its distinct brand, culture and independence. Jeff Weiner will remain CEO of LinkedIn, reporting to Satya Nadella, CEO of Microsoft.
OptionsCity Software announced in May that Thomson Reuters Eikon subscribers can now execute futures and futures options directly from the platform via OptionsCity’s City Execution. The move allows users to eliminate market data fees across multiple platforms.
The U.S. Commodity Futures Trading Commission (CFTC) announced that CFTC Chairman Timothy Massad signed a Memorandum of Understanding with the European Securities and Markets Authority (ESMA) regarding cooperation with respect to derivatives clearing organizations (DCOs) established in the United States that have applied or that may apply to ESMA for recognition as central counter parties.
Multi-asset trading infrastructure provider Object Trading expanded its Direct Market Access (DMA) Service Platform by announcing in May that fully managed services are now available at TMX Group’s co-location center for access to the Montréal Exchange (MX). This expansion provides flexibility for the buy-side and sell-side, in response to the sell-side experiencing mass retrenchment while exchange volumes increase.
Taiwan Futures Exchange (TAIFEX) and Deutsche Börse Market Data Services signed a market data partnership agreement, under which Deutsche Börse will act as the licensor of TAIFEX market data and information products to all international clients. Deutsche Börse, which is a licensing partner for a range of trading venues around the globe including BSE India, Irish Stock Exchange and Bulgarian Stock Exchange.
Fidessa Group PLC announced it has signed a contract to provide cross-asset execution services to ABN AMRO Clearing (AAC). This allows AAC to offer its clients low-latency access to more than 110 futures, options, equities and FX markets worldwide via a globally consistent interface, delivered out of 11 key locations around the world.
Barchart announced that Mark Haraburda has been named CEO. Haraburda, 38, has served as managing director of business development and sales for Barchart since 2007. Current Barchart CEO Andrew Lowdon will continue as COO and chairman. Haraburda joins Barchart founders Lowdon and Eero Pikat as part of the firm’s executive management team.
CME Group announced that the company has been named ‘Clearing House of the Year’ by GlobalCapital in their Americas Derivatives Awards 2016. The awards honor the companies, platforms, services and products that have made an impact on the U.S. derivatives market during the last 12 months.
CME Group has also collaborated to offer CME Clearing and CME Clearing Europe customers the first cloud-based software service that integrates and automates the management of collateral in one place. This allows market participants access to a consolidated view across their complete collateral inventory that they can utilize for both cleared and non-cleared derivatives transactions at any given time.
Euromoney Tradedata announced an upgrade to its Xymbology service for MiFID II symbology in advance of the mandatory 2018 transaction reporting deadline. Although the European Commission has extended, by one year, the implementation of MiFID II, client firms want to road test compliance solutions well in advance and sink all related investment to achieve that sooner rather than later to avoid cost overruns typically experienced by market delay.
Vulcan Inc., founded by investor and philanthropist Paul G. Allen, announced it has hired Chris Orndorff as Chief Investment Officer. Orndorff brings 30 years of investment management and leadership experience to this role, which begins on June 20. Orndorff will be responsible for identifying investment opportunities and optimizing returns for Vulcan Capital – Allen’s multi-billion-dollar investment arm. He will be based in Seattle and will report to Barbara Bennett, Vulcan’s President and Chief Operating Officer.