EXCHANGE NEWSWIRE, 31 August 2011
BATS Global was given SEC approval to offer share listings on its electronic market, which it aims to launch in December and intends to waive upfront fees for listed companies that transfer from another bigger exchange to BATS. Initial fees are planned at $100,000 and $50,000, and annual fees at $35,000 and $20,000, with the fees generally below that of NYSE and Nasdaq.
BATS Options now allows options dealers to quote in bulk. Its “bulk quoting interface” will let dealers to publish a bid and offer in a single message rather than two, which is the current case, and it also allows market makers to bundle several quote updates into one message.
CME will reduce the amount of vomitoxin allowed in CBOT wheat, with the tighter restrictions aimed at making the delivered wheat more attractive to millers and exporters.
HKEx will introduce two additional December contract months, including December 2014 and December 2015, for its HSI and HSCEI Dividend Point index futures, starting September 12.
LCH.Clearnet CEO Ian Axe said that the firm needs to be more commercially driven as regulatory changes will cause the OTC clearing sector to be extremely competitive. Axe also commented that “we are pushing for one organization – a clearing, asset class-led organization, as opposed to country-led”, but that “we are absolutely keen to still have our legal entities”.
Knight Capital’s institutional brokerage unit upgraded its trading technology, allowing Knight to tap liquidity only at a few venues instead of spraying 30 or 40 venues in search of liquidity as it previously did. Knight managing director Joe Wald said that “if you spray 40 different destinations at the same time, then short-term alpha traders see that and you incur market impact”.
Securities and Futures Commission (SFC) of Hong Kong now requires synthetic ETF providers to “top up” collateral to achieve a minimum of 100% collateralization of counterparty risk. All synthetic ETFs managed by SFC-licensed managers and primarily regulated by SFC must start boosting collateral within two weeks, and full collateralization must be in place no later than October 31.
European Commission aims to curb speculation in commodity markets to reduce market volatility, and controls will be outlined at the Teagasc tillage crops forum on September 7. The EU Commission will also start publishing regular updates on short-term market forecasts for cereals, oilseeds, milk, milk products and meat this autumn.
Provided By: Equity Research Desk, www.erdesk.com
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