NO 228 – FEBRUARY 2012
Clearing at the crossroads

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WFE Focus January 2012
Regulation

Australian Securities Commission signs regulatory cooperation arrangement with Canadian regulators
The Australian Securities and Investments Commission, the Quebec Autorité des marchés financiers, the Ontario Securities Commission, the Alberta Securities Commission and the British Columbia Securities Commission have signed a comprehensive arrangement to facilitate their supervision of regulated entities that operate both in Australia and Canada. The Memorandum of Understanding provides a clear mechanism for consultation, cooperation, and exchange of information among the market regulators.

CPSS-IOSCO publishes report on requirements for OTC derivatives data reporting and aggregation
The Committee on Payment and Settlement Systems (CPSS) and the Technical Committee of the International Organization of Securities Commissions have published their final report on the OTC derivatives data that should be collected, stored and disseminated by trade repositories (TRs). The committees support the view that TRs, by collecting such data centrally, would provide authorities and the public with better and timely information on OTC derivatives. This would make markets more transparent, help to prevent market abuse, and promote financial stability.

Deutsche Börse plans resegmentation of open market
Deutsche Börse is planning a resegmentation of the Open Market. The First Quotation Board in its current form will be discontinued, the Entry Standard’s rules are also being tightened. In future, aside from bonds, only equities which have a listing on another domestic or foreign stock-exchange-like trading venue recognized by Deutsche Börse will be included in the Quotation Board, as was the case in the former Second Quotation Board. Companies which are currently on the First Quotation Board and which fulfill the relevant entry and follow-up requirements will in principle be able to switch to the more highly regulated Prime Standard and General Standard segments in the Regulated Market and Entry Standard in the Open Market. In future, the specialist will take on the applicant’s role in the Quotation Board and ensure the security’s tradability by providing liquidity and taking on the duty of announcing capital measures without delay to the stock exchange. In order to sustainably improve the involvement of issuers, the Entry Standard’s rules are also being tightened. Access to the Entry Standard as a sub-segment of the Open Market will in future always require a public offering and thus a prospectus. In addition, the follow-up requirements will be tightened and the issuer will be placed under direct obligation to fulfill them. In order to give investors the opportunity to sell their shares on the stock exchange, the resegmentation is expected to take place in the third quarter.

IOSCO appoints new Secretary General
The International Organization of Securities Commissions (IOSCO) has appointed David Wright as its new Secretary General. Mr. Wright will be responsible for leading the work of IOSCO’s General Secretariat in support of the work of the organization, and it is expected he will take up his position in March 2012.

MICEX-RTS Group to amend procedure for removing shares from list of securities admitted to trading
MICEX-RTS Group will introduce changes into the procedure of removing shares from the list of securities admitted to trading on the Exchange upon a written request of an issuer. The initiative has been undertaken to protect rights of shareholders and ensure the balance of interests for all categories of stock market participants. The decision to remove a security from the list will be taken by the Exchange provided that the issuer has submitted the written request on removing its shares from the list of securities admitted to trading, and that the request has been considered by the Securities Market Committee of MICEX SE.

Singapore Exchange obtains CFTC approval for two futures contracts
The Singapore Exchange has received US Commodity Futures Trading Commission’s approval to offer and sell futures contracts based on the FTSE China A50 and MSCI Asia APEX 50 equity indices to individuals in the US.

Stock Exchange of Thailand plans to launch trading rules for new trading system
In July 2012, together with the launch of its new trading engine, the Stock Exchange of Thailand will also improve its securities trading rules to be in line with those of leading foreign stock exchanges in order to increase trading effectiveness for investors, reduce complexity of rules, and boost flexibility.

UK government publishes financial services bill
On 27 January 2012, the UK government published legislation which will fundamentally transform and strengthen financial regulation in the UK. The new regime sets out a clear and comprehensive regulatory framework, replacing the previous structure, and helping to mitigate against future risks to stability. The Bill gives the Bank of England responsibility for protecting and enhancing financial stability, bringing together macro and micro prudential regulation; it also abolishes the Financial Services Authority (FSA) and creates a strengthened regulatory architecture consisting of the Financial Policy Committee, the Prudential Regulation Authority and the Financial Conduct Authority.

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