EXCHANGE NEWSWIRE, 8 August 2011
ICE will close Chicago Climate Futures Exchange, its money-losing US emissions derivatives platform, according to the Wall Street Journal. ICE also aims to start listing derivatives related to emissions reductions in New Jersey, Massachusetts, Connecticut and California, together with a sulfur-based contract.
DB1: Eurex launched options and futures on two commodity ETFs, which will give clients greater exposure to gold and crude oil. Head of capital markets at ETF Securities, Kris Walesby, said he expects “other European venues to compete for market share in this arena” as “options on similar products in the US have proved to be very successful”.
CME will migrate its CBOT US Treasury IR products and CME-listed Eurodollar futures to its new matching engine that will reduce the latency of trade-to-tape turnaround. Managing director of IR products at CME, Robin Ross, stated that “forty percent of our volume is from proprietary trading firms, and a high proportion of those are high-frequency shops, so they are very concerned about speed”.
NYX confirmed that last Thursday’s 90-minute outage on its Liffe platform was due to a breakdown in its trading engine’s outbound messaging system. NYX described the outage as a “serious incident” and experts will determine if there are further weaknesses to the exchange’s systems.
CME: NYMEX recorded a high of natural gas futures open interest on August 4, reaching a total of 1.018m contracts outstanding, exceeding the previous high of 1.014m contracts set on June 14.
TMX’s Montreal Exchange (MX) reported a record of 285,000 contracts traded on the three-month Canadian Bankers’ Acceptance Futures (BAX) on August 4, beating the previous record of 223,041 contracts set on February 27, 2007. MX also reached a new open interest record on BAX with 796,862 contracts, beating the previous high on May 26, 2011 of 699,569 contracts.
SGX admitted BNP Paribas Securities (Singapore) as a trading member of its derivatives market. This is in addition to BNP Paribas’ existing role as a trading and clearing member of SGX’s securities market and clearing member of the derivatives market.
OCC and DTCC commented that they had no current plans to adjust their current valuations or haircuts on Treasury securities used as collateral despite S&P’s downgraded of US debt. Both clearing houses will monitor market developments and volatility before deciding if any changes should be made to the processes.
SEC commissioner Kathleen Casey will depart the US agency, after her term expired on June 5. Her replacement is not yet confirmed.
Provided By: Equity Research Desk, www.erdesk.com
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