Swiss Exchange will launch a new corporate bond trading venue

June 9, 2015 01:02 AM

CME will end the practice of allowing traders to square up positions in grain and oilseed futures during a short period after the market close starting July 6, Reuters reported. CME will also extend the modified or post-close session, the period in which traders can clean up orders in grain and oilseed options after the close, from 3 minutes to 5 minutes.

SIX Swiss Exchange will launch a new corporate bond trading venue by 1H15, with the aim of pooling trading in Europe’s fragmented market on a recognized regulated exchange. The venue’s technology will be provided by Algomi, a UK trading technology company, and SIX has set a floor for blocks of corporate bonds and large trades that are a worth a minimum of 2 million in EUR, GBP or USD.

SIX Swiss Exchange will allow EuroCCP to clear trades on the market, Bloomberg reported. Trading parties will now have a choice between EuroCCP, and the existing clearing firms LCH.Clearnet and SIX x-clear.

Nasdaq OMX gave its approval for SIX x-clear and LCH.Clearnet to clear transactions on its Stockholm, Helsinki and Copenhagen venues. They will interoperate with EuroCCP, Nasdaq’s existing clearing partner, Bloomberg reported.

SGX appointed Loh Boon Chye as its new CEO, taking over from Magnus Bocker from July 14, the Straits Times reported. Loh was previously a director on the SGX board from October 2003 to September 2012, and he also worked with Deustche Bank from 1995 to 2012 as CEO of the Global Markets Division in Singapore, and later worked with Bank of America Merrill Lynch from December 2012 to early-2015 as deputy president and head of global markets for Asia Pacific.

FIA Europe warned that the EMIR swaps clearing mandate is not viable unless regulators relax rules on Basel III leverage ratio requirements which consider client segregated margin as a levered asset on the balance sheet, IFR Financing Review reported.

CFTC’s decision to intervene in LME’s warehouse policy is being questioned by metals producer Alcoa Inc, who filed a request under the Freedom of Information Act (FOIA) to understand what was the cause behind CFTC delaying its decision to allow LME to be registered as a “foreign board of trade”. As reported in Reuters, Alcoa’s “ goal is to learn the extent to which the CFTC has engaged in substantive discussions with the London Metal Exchange” .

Basel Committee published a document with proposals on bank capital rules to cover interest rate risks. The two alternatives proposed include a mandatory minimum capital surcharge on banks, as well as a discretionary surcharge set by supervisors, Reuters reported. The public consultation ends in September, and Basel will decide on which approach to choose and when the first global bank capital rule will be implemented.

MiFID II is being opposed by energy firms who say that the directive reduces exemptions in financial services regulations which are available to energy firms whose core business is not commodity trading, Risk.net reported.

Hong Kong’s Securities and Futures Commission will support HKEx’s proposal to prevent individual equities from moving more than 10 percent under five minutes, Bloomberg reported. Under the proposed rule change, any order that causes a stock to rise or drop more than 10 percent in price will be rejected, and a cooling-off period will commence.

SEBI aims to include two more government bonds for trading with five and 15-year maturities, a move that is in line with a proposal by RBI to improve the rate futures market liquidity. National Stock Exchange is in discussions with SEBI and is seeking market feedback on the proposed securities.

 

About the Author

Bernardo Mariano brings to ERDesk his experience structuring private deals for the acquisition of mutual exchanges. Prior to joining ERDesk Bernardo worked as a Director for Instinet and later, CEO of Reuters' Bondex. He holds an MS in Economics from University of Illinois and an MIA in Finance from Columbia University. He can be reaced at be reached at mariano@erdesk.com.