NO 238 – DECEMBER 2012
Season's Greetings!

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WFE Focus December 2012
Season's Greetings!
Peter Clifford
Chief Operating Officer,
WFE

AS 2012 DRAWS TO A CLOSE, THE WFE WISHES ALL FOCUS READERS VERY HAPPY HOLIDAYS, AND AN EXCELLENT NEW YEAR.

As 2012 draws to a close, the WFE wishes all Focus readers very happy holidays, and an excellent New Year.

We will look back on the main stories from 2012 in our next edition, and provide the year-end statistics on what was a very challenging year in many markets.

However, we are already starting this month a feature which will be a regular edition to Focus: interviews with the CEOs of exchanges. The list of WFE members includes some of the best known brands in the financial services industry. But there are many more exchanges that have come up with exciting initiatives somewhat under radar.

WE ARE ALREADY STARTING THIS MONTH A FEATURE WHICH WILL BE A REGULAR EDITION TO FOCUS: INTERVIEWS WITH THE CEOS OF EXCHANGES.

That the Bermuda Stock Exchange starts off this feature is linked to their work on developing the bond market for reinsurance companies. This importance of this topic was touched on by Dr. Richard Sandor in his acceptance speech as the 2012 recipient of the WFE Award for Excellence. Given the damage caused by Superstorm Sandy less than a month later, the use of ‘cat-bonds’ seemed a topical place to start this review. You can see Dr. Sandor’s entire speech on the WFE website, and learn about the other developments at the Bermuda Stock Exchange on the following pages.

The other feature of his edition is a position paper concerning margining requirements for futures and options traded on exchanges. It was the opinion of many market leaders that the level of risk represented by these highly liquid and transparently traded products should not be conflated with the often illiquid derivatives which featured prominently in the financial meltdown. Doing so could be a costly and unnecessary step in the reform of the OTC market which the WFE otherwise fully supports.