EXCHANGE NEWSWIRE, 1 September 2011
CME wrote a letter to CFTC commenting that the way the regulator has written new financial rules is legally unsound and advocated for their implementation to be delayed. CME CEO Craig Donohue said “the cost-benefit analyses included in the commission’s proposed rulemakings under Dodd-Frank take an uninformative, almost boilerplate form and fail to acknowledge many of the economic costs”.
DB1-NYX merger is undergoing greater scrutiny from the European Commission’s competition authorities, who issued a second questionnaire to market participants regarding the proposed merger. The questionnaire focuses on derivatives and is mostly aimed at identifying the differences between the uses and costs of using listed versus OTC derivatives.
CME will launch two new OTC thermal coal swap futures contracts, which include the China coal swap futures and Coal Newcastle FOB. Both contracts begin trading on September 12, will have a lot size of 1,000 tons each and will be financially settled.
NYX completed its acquisition to Metabit, which will operate as a product line within the NYSE Technologies portfolio. Deal terms were not disclosed.
Bolsa de Comercio de Santiago expects to see a record year for IPO “once the market turbulence subsides”. CEO Jose Antonio Martinez also said that companies have postponed rather than cancelled their share sale plans, and “the process of new offerings is here to stay”.
SMX interim CEO Hariharan said that it has “a tie up with the ICDX Indonesia and we are talking to a few other regional exchanges in this geography”. SMX will also launch the world’s first Black Pepper futures contract later this year.
France aims to get a conclusion on the international financial transactions tax deal “at the G20 on November 3-4 in Cannes”. There are no details yet regarding the proposal, which ECB President Jean-Claude Trichet has previously said would not work unless applied globally and in Britain.
SEC is seeking public comments on the use of derivatives by mutual funds, and also asked questions on existing rules excluding asset-backed issuers and companies that invest in mortgage securities from being regulated as investment companies.
CFTC commented that CME needs to increase its exchanges’ compliance staff, which “was unchanged since the division’s last review” in 2009, “despite a significant increase in trading volume and products traded”. CFTC also recommended that CME issue disciplinary decisions soon after a hearing and better document those decisions, as well as to impose “meaningful” sanctions on members to discourage repeat offenses.
Provided By: Equity Research Desk, www.erdesk.com
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