CME ends electronic trading on some indexes

March 13, 2015 09:55 AM

Exchange shorts: A daily summary of news from around the trading world.

  • Societe Generale bought a minority state in Eris Exchange and will also join Eris BoD. State Street, Fidelity and Morgan Stanley have also invested in Eris, according to FT.
  • The European Securities and Markets Authority is expected to make Internal Revenue Service clearing mandatory from late 2015 in Europe, according to Reuters.
  • CME ended electronic trading in the largest DJIA and Nasdaq 100 futures.
  • BATS Global Markets plans to expand into fixed income as Markets in Financial Instruments Directive II would require reporting of fixed income OTC transactions.
  • Singapore aims to become a commodity-trading center by working with exchanges, producers and investors. New clearing houses can boost liquidity and product development according to MAS. Reported by Bloomberg.
  • China Securities Regulatory Commission expressed concerns to Singapore’s authorities over ICE Futures Singapore’s cotton, sugar futures contracts. The futures contracts are based on settlement prices of Zhengzhou Commodity Exchange’s contracts and ICE Futures Singapore declared the start of the contracts without consultation, CSRC said on a statement.
  • The Multi-Commodity Exchange of India Ltd might be able to hold up to 15% stake in MCX-SX as FMC-SEBI merger would provide stock exchange status to commodity exchanges (MXC, NCDEX, NMCE and Ace). Commodity exchanges are allowed to hold 5% in other exchanges, while stock exchanges are allowed to hold 15% in other exchanges. Including warrants, MCX holds as much as 36% of MCX-SX.
  • The Hong Kong Exchanges and Clearing Limited will suspend gold futures trading. Only existing contract months with open interest will be available for trading until expiry or open positions are closed out. HKEx plans to review its precious metals strategy; redesigned gold futures contracts may be added to its product list in the future
  • ICAP‘s TriOptima reached an agreement with CME to enable TriOptima to offer triReduce risk-constrained multilateral compression for interest rate swaps (IRS) to house accounts of CME IRS clearing members.
  • Investment Technology Group will increase the Company's share repurchase levels and form a board-level committee to continue reviewing ITG's overall capital allocation framework. Philadelphia Financial Management of San Francisco and Voce Capital Management intent to nominate three candidates to stand for election to the ITG Board of Directors.
  • Neo Exchange: Aequitas Innovations completed a new round of capital raising ahead of the launch this month of its new stock exchange. Aequitas' new shareholders include Canadian pension fund manager British Columbia Investment Management Corporation, fund managers Davis Rea and Invesco Canada, private equity firm Vernon & Park Capital and dealers Jones Gable & Co, Maison Placements Canada and BBS Securities.
  • MiFID II would ban indirect clearing of listed derivatives in an attempt to increase client protection, according to IFR Asia.
  • The Central Counterparty Clearing House are concerned about the Committee on Payments and Market Infrastructures and the International Organization of Securities Commissions stress tests plans. LCH’s David Weisbrod stated worries about how the testing would be done. Reported by Risk.net.

 

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.