EXCHANGE NEWSWIRE, 28 September 2011
LCH.Clearnet confirmed that it is in exclusive discussions with LSE, although there is no certainty that the talks will result in any transaction, according to Finextra.
NYX: NYSE Liffe will start publishing weekly Commitments of Traders (COT) reports for the commodities futures contracts which are listed on its London market from October 3, and “clearing members and non-clearing members will be required to submit all client positions in excess of 100 lots for all delivery months of commodity contracts”. A second report containing futures positions combined with options positions that have been converted to delta equivalent futures positions will be published later this year, according to Reuters.
CME reported a spike in the use of OTC clearing by non-bank users for OTC derivatives for the first time since the crisis in 2008, according to the Financial Times. Head of CME Clearing Kim Taylor said that the users of OTC derivatives “seem to be doing more than just shaking out the pipes. Some clients are deciding to execute on internal mandates rather than regulatory mandates.” Taylor also mentioned that “there’s been some uncertainty in the market that’s been causing participants to focus on clearing sooner rather than later.”
European Commission’s proposed EU-wide financial transaction tax will be levied on all transactions of financial instruments between financial institutions when at least one party is located in the EU, according to the Trade News. Transactions of shares and bonds will be taxed at 0.1%, and transactions of derivatives contracts will be taxed at 0.01%. The EC estimated that the tax could cost the industry approximately EUR 57b a year, and this will be shared among the EU and member states.
European Securities Market Authority (ESMA) investigation on ETFs highlighted lack of transparency and risks associated with the ETF market. Among areas to be improved on include better identification of ETFs, issues with how indices are tracked by ETFs, the securities lending activities of ETF manufacturers, and clearer delineation of actively-managed and leveraged ETFs from passive ETFs.
SEC proposed to lower the threshold for circuit-breakers in the case of a market plunge, as current limits were far out of reach during the May 2010 “flash crash”. Among the key changes suggested is to trigger the first market-wide circuit breaker after a 7% slide in stocks, versus the current 10%. SEC also proposed tying market-wide circuit breakers to the S&P 500 stock index rather than the DJIA, according to the Wall Street Journal.
CFTC postponed its vote on commodity markets position limits for the second time, and the vote will not take place until at least CFTC’s next meeting October 18. Commissioner Bart Chilton raised concerns about the slow pace of implementation of the limits, which “were supposed to be in place earlier this year.”
Provided By: Equity Research Desk, www.erdesk.com
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