EXCHANGE NEWSWIRE, 13 July 2011
BATS and Chi-X Europe agree to extend the terms of their proposed combination as the deal is undergoing scrutiny from antitrust authorities. Chi-X Europe CEO Alasdair Haynes affirmed commitment to “finalizing the deal with BATS” and both venues said their platforms continue to operate independently “as normal”.
DB1-NYX merger: NYX may have to adopt DB1’s trading technology should the merger succeed, after NYX experienced the fourth technical glitch in less than a month. DB1 shareholders will finish voting on the deal today, and if sufficient approval is received, regulators have till August 4 to decide on the merger.
ASX adopted Fidessa’s “smart order routing” system as it prepares against competition in the Australian stock market. The new system would allow ASX to operate ASX Best which will provide its customers with a service that sends orders to competing trading venues should a better price be found. ASX’s general manager of trade execution and information services said this move was to make it easier for customers “to use ASX, without having to spend money building such infrastructure themselves”.
HKEx admitted that its clearinghouse’s risk management and financial resources are not up to international standards. HKEx proposed measures to improve its current risk management framework, which was “heavily reliant on ad hoc measures and static financial resources which are not scalable to the increasing levels of the counterparty risk exposure and volatile nature of the local market”.
CFTC Commissioner Bart Chilton said that HFT traders, which he refers to as “cheetahs”, should be “confined” and subject to testing and a pre-trading accreditation process. Chilton also said that algorithms used by exchanges to allocate trades “may be adding to the problem by not necessarily accepting the first or best bid or offer but weighing the size of the trade”.
ECB and the World Bank urged CFTC and SEC to exempt multilateral development banks )MDBs, public international organizations and national central banks from US derivatives regulations, effectively freeing them from central clearing and swap margining requirements.
Provided By: Equity Research Desk, www.erdesk.com
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