CFTC's reauthorization has been approved by the House

June 10, 2015 10:00 AM

CME will extend electronic grain and oilseed futures and options trading by five minutes from July 6, once most of its open-outcry futures pits have been closed, Reuters reported. According to CME spokesman Chris Grams, this period will allow traders time to square up positions, adjust order errors as well as include last-minute trades after the markets settle at 1.15pm CDT, replacing the modified or post-close session.

LME aims to facilitate non-UK based traders in accessing its electronic trading platform, and is offering fee rebates to attract greater trading volumes, the FT reported.

LME is receiving local opposition in its plans to approve warehouses in China, and in particular, Shanghai. According to Reuters, LME’s main opponent is the Shanghai Futures Exchange (SHFE), who “is afraid LME warehouses in Shanghai would take market share”, a source was quoted saying.

LCH.Clearnet: more investors are choosing LCH.Clearnet for clearing and moving away from CME for clearing certain derivatives contracts, the FT reported. This shift is a result of the recent increase in costs at CME compared to LCH.Clearnet, due to change in pricing approach by banks.

ICE CEO Jeffrey Sprecher stated in the IDX derivatives conference that “clients are really trying to get access to Asia and China right now”, Reuters reported.

NDAQ: Trading Technologies will introduce connectivity to NDAQ’s European commodities operations, including the exchange group’s Nordic benchmark power market and German contracts through its new TT platform.

NDAQ: Stellar Trading Systems will introduce connectivity to Nasdaq Futures (NFX) following the official launch of the NFX platform in mid-2015.

Eris Exchange: USD interest rate swap futures experienced a daily record of 46,552 contracts on June 9, 2015, worth more than $4.6b in notional value, more than double the previous daily volume record of 21,014 contracts set on September 5, 2014.

CFTC Chairman Timothy Massad expressed optimism that both EU and US will be able to work out the differences between their respective derivatives regulations, Reuters reported. In Massad’s words, “I also believe we are both committed to resolving this without creating any disruption to the market, as evidenced by the European Commission’s further postponement of the imposition of capital charges.”

ESMA Executive Director Verene Ross expressed that in order to resolve the EU-US dispute over clearinghouse equivalence, US regulators would be required to rethink the benefits of clearing-margin rules in Europe, FOW.com reported.

FCA head of market infrastructure and policy Edwin Schooling-Latter stated that it is not probable that British regulators extend mandatory exchange trading beyond the most liquid products for fixed-income, currency and commodities.

CFTC’s reauthorization has been approved by the House, but the agency will be required to conduct more cost-analysis of proposed regulations and is prohibited from issuing guidance, rules or policy statements that are treated like law without the public being notified and given time to provide feedback, Bloomberg reported.

 

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.