CME Executive Chairman Terrence Duffy attributed CME’s decline in volume to macroeconomic problems and uncertainty over tax policy, as opposed to regulatory changes, Reuters reported.
CME expects to launch trading in aluminum premium swaps by year-end. The contract is based on the Platts figure for the premium paid over LME’s cash price to secure aluminum in the US Midwest, according to Reuters.
BOLSAA reported 3Q12 EPS of P$0.25 and adj. EPS of P$0.30 (-15% y/y), 1c above our estimate and 1c below the consensus estimate. BOLSAA will receive, in 4Q12, a P$25m reimbursement associated to the P$39m legal expense provision incurred during 3Q12. BOLSAA believes it could come close to reaching their guidance of, net income between 720-725 million and an operating margin within the 45%-46% range.
Moscow Exchange will start using its Data Centre M1 (located at 125, Varshavskoe shosse, Moscow) as its main Data Center in November 2012. Moscow Exchange also launched a new connectivity point in Equinix’s Slough (London) LD4 Data Center. The average round trip latency between the Moscow Exchange location and the connectivity point in London is 42 milliseconds. All Moscow Exchange markets can be accessed from the London data center.
SGX is consulting market participants on newly proposed rules and amendments covering topics such as margins and collateral provided to the clearing house and procedures and processes to apply in the case of a Member’s default.
Credit Suisse plans to convert its Light Pool trading venue in USA into an exchange, according to the Wall Street Journal.
NDAQ Vice-Chairman, Sandy Frucher, will discuss the future of trading in a panel at the Algorithmic & High Frequency Trading Conference, organized by RiskMathics in Mexico City, November 14-15.
Chi-X Japan will be designated as a proprietary trading system (PTS) on which transactions are exempt from the Take-Over-Bid (TOB) rule of the Financial Instruments and Exchange Act. The TOB rule requires investors who approach a 5% stake in a company to launch a tender offer if they are trading off exchange. The exemption will allow investors to trade on Chi-X Japan without concern for breaching the TOB rule.
CFTC will allow more swaps to be traded over the phone than originally expected, according to Bloomberg. This differs from the proposal which was written in the Federal Register in January 2011, which stated that “entities offering the following services do not comply with the statutory definition of a SEF: one-to-one voice services for the execution of trading of swaps (other than the execution of block trades).”
CME will commence $2m in payouts to former customers of the collapsed Peregrine Financial Group.
EU may restrict the number of commodity derivatives contracts that traders can enter into, Bloomberg reported. EU financial services chief Michel Barnier also plans to “reinforce our system of position limits, while maintaining the possibility for businesses to use these markets for hedging purposes.”
European Parliament legislators agreed on a set of proposals to be presented to national governments. The proposed regulation requires orders in the market to be held for at least half a second and sets charges for excessive numbers of canceled orders. The European Parliament could not reach agreement on measures to increase competition among clearing houses.