EXCHANGE NEWSWIRE, 12 August 2010
US Senator Charles Schumer (D-NY) called on the SEC to clarify the role of high-frequency traders and market makers and set new rules for them to ensure the provision of liquidity when trading becomes volatile. Schumer sent a letter to SEC Chairman Mary Schapiro saying that "requiring more high-frequency traders to be legally obligated to step in and provide liquidity would go a long way in helping to avoid sudden, rapid price plunges like the May 6 flash crash."
HKEx CEO Charles Li said the exchange will ask Chinese regulators to ease restrictions on the use of the yuan to allow the listing of yuan-denominated products in Hong Kong. HKEx will also align trading hours with exchanges in mainland China.
ICE laid off around 25 employees at CCX since July 23, according to Reuters. This is roughly a half CCX's headcount at the time of ICE's acquisition.
DB1: ISE submitted a proposal to the SEC to implement a pilot program to expand the expiration months available for the most actively traded options classes that will allow ISE to list up to two additional, consecutive expiration months for 20 options classes.
DB1: Eurex will launch futures and options on Xetra-Gold ETC September 28.
NASDAQ OMX: the initial offer of NXP Semiconductors became NASDAQ's largest European IPO of 2010, raising $476 mn.
SGX opened a public consultation on the proposed contract specifications for the SGX EURO STOXX 50 Index Futures and Options.
SMX was approved to operate as a regulated and licensed exchange by the Monetary Authority of Singapore (MAS). SMX is the first pan-Asian multi-product commodity and currency derivatives exchange.
Liquidnet said CESR proposals to make dark pools more transparent will not create a level playing field between trading venues. Liquidnet claimed that CESR “maintains the uneven playing field between MTFs and broker crossing systems (BCSs) with respect to various requirements, including pre-trade transparency, post-trade identification and market surveillance.”
Artio Global AUM increased +4.7% M/M to $51.3 bn at the end of July.
CME was downgraded to “Neutral” from “Conviction Buy” at Goldman Sachs. Target price was reduced to $290 from $350.
Japan’s FSA will scrutinize activities at Goldman Sachs, Morgan Stanley and Nomura.
The Wholesale Markets Brokers' Association of the Americas outlined recommendations for the regulation of Swaps Execution Facilities (SEFs). The WMBA suggested letting an unaffiliated self-regulatory organization enforce rules among SEFs under CFTC scrutiny. They also called for intraday reporting of post-trade volumes, settlement prices and volatility to a data repository. WMBA also recommended setting position limits below those set by the CFTC.
Provided By: Equity Research Desk, www.erdesk.com