JPMorgan to end settling government securities by 2017

July 25, 2016 11:14 AM

JPMorgan Chase & Co. plans to exit the business of settling government securities for most dealers by the end of 2017, including some transactions in the repo market.

German Finance Minister, Wolfgang Schaeuble supported a financial transaction tax (FTT) on a global level during G-20 summit. He said that an FTT on a global level makes sense in the context of a crackdown on tax avoidance.

E*Trade Financial Corp. (ETFC) agreed to acquire OptionsHouse from General Atlantic Partners for $725 million in cash. ETFC will issue $400 million of non-cumulative perpetual preferred stock to finance the transaction, with the balance paid in cash. OptionsHouse has 154,000 customer accounts with $3.6 billion in customer assets, including $1.4 billion in cash, DARTs of 27,000 (63% of them in options) and revenues of $104 million.

London Stock Exchange: Cathryn Lyall, COO, will leave CurveGlobal, weeks ahead of its launch in September.

U.S. Commodity Futures Trading Comission (CFTC) staff issued guidance to clearinghouses on Recovery and Wind-Down Plans. Clearinghouses should be ready to raise capital during a crisis.

Hong Kong Exchange (HKEx) closing auction was reintroduced today. Brokers are pushing for changes to the mechanism to allow them to amend orders introduced to the facility, according to Bloomberg.

Tokoyo Commodity Exchange, Inc. (TOCOM) launched a new physical market for gold, the Gold Physical Transaction. 

Former MFGlobal CEO Jon Corzine agreed with the trustee to settle a lawsuit, as part of a $132 million accord to end much of the remaining litigation over the brokerage’s 2011 collapse.

Bats CEO Chris Concannon welcomed U.S. Securities and Exchange Commission's approval of its filing to adopt generic listing standards for actively managed exchange-traded funds. “The introduction of these standards will help issuers of all sizes bring innovative funds to the market in weeks instead of months, and with more certainty of approval,” he said.

BGCP appointed Dean Berry as Executive Managing Director in its Global Electronic and Hybrid Execution team.  Dean most recently served as the CEO for Global e-Commerce at ICAP.

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. He holds an MS in Economics from University of Illinois and an MIA in Finance from Columbia University. He can be reaced at be reached at mariano@erdesk.com.