NO 242 – APRIL 2013

WFE Focus April 2013
New services

BME launches training program for its shareholders

BME, the Spanish Exchanges, has designed a training program for its shareholders, which will be coordinated by its training subsidiary, Instituto BME. The aim of the initiative is to spread the financial culture among the company’s retail shareholders.

Borsa Italiana launches new fixed-income segment

Borsa Italiana has broadened its bond market offering with a new professional segment on its ExtraMOT market dedicated to the trading of debt instruments issued by both listed and unlisted Italian companies. The new segment, called ExtraMOT PRO, has been launched to offer listed and unlisted Italian companies of any size a national market on which to benefit from opportunities arising from recently-implemented regulatory reforms. ExtraMOT PRO is specifically targeted at professional investors, and adopts a more flexible regulatory approach in terms of admission and disclosure requirements.

Bursa Malaysia to introduce ‘Green Lane Policy’

Bursa Malaysia will introduce the ‘Green Lane Policy’ to facilitate business for equity brokers. According to the new policy, equity brokers can commence their activities with only a notification process to Bursa Malaysia Securities. The policy will shorten the time to market for equities brokers to commence their new activities which includes the opening of new branches or electronic access facilities, the provision of margin financing and the commencement of proprietary trading. The new policy will take effect from 2 May 2013.

Bursa Malaysia introduces new eRights service

Bursa Malaysia launched eRights service, bringing greater convenience and ease to investors by facilitating the electronic subscription and payment system when subscribing for rights issue. As a result, individual shareholders will be able to subscribe for rights issue via ATM and internet banking facility of participating banks.

Bursa Malaysia Derivatives branching initiative takes off

On 18 April 2013, Bursa Malaysia Derivatives’ futures broking branching initiative became operational through the establishment of the first futures-only branch office by one of its futures brokers. This initiative will enable futures brokers, particularly the standalone brokers to expand their business reach by setting up branch offices and trading kiosks in various locations in Malaysia apart from their existing principal office. They will be able to better serve their existing clients and provide more access points to attract new clients to trade on Bursa Malaysia Derivatives, thus, paving the way for greater retail participation in the derivatives market.

CBOE Futures Exchange plans extended trading hours

CBOE Futures Exchange plans to expand CBOE Volatility Index futures trading hours (currently 7:00 to 15:15) in two phases, beginning in May 2013. The first phase of expanded trading hours is designed to meet demand from US customers for a post-settlement trading period. The second phase will allow European-based customers to trade VIX futures during their local trading hours. The changes are subject to regulatory review.

ICE establish ICE Trade Vault Europe

IntercontinentalExchange has applied to ESMA to establish ICE Trade Vault Europe as a trade repository for the reporting of swaps and futures trade data to meet requirements of EMIR. ICE Trade Vault Europe plans to serve the commodities, credit, interest rate and foreign exchange asset classes. The launch of ICE Trade Vault Europe is subject to approval by ESMA.

ISE introduces ISE Gemini

In the second quarter of 2013, the International Securities Exchange will launch ISE Gemini, the brand name of its new options exchange. It will represent a complementary options platform that will stand “side-by-side” with ISE’s existing options exchange. ISE Gemini will also use the exchange’s existing technology backbone and established member connectivity.

Korea Exchange to allow US treasuries as margin instruments for derivatives market

Beginning from 18 March 2013, KRX will add US treasury bills, notes and bonds to its margin instruments in the derivatives market. Currently, KRX only allows cash, substitute securities and certain foreign currencies for margin deposits. Considering future market demands, KRX plans to diversify the scope to other government bonds.

NASDAQ OMX to launch Market Quality Program for ETFs

The NASDAQ OMX Group will launch a Market Quality Program (MQP) for ETFs in the second quarter of 2013. Recognizing a need for liquidity in ETFs, NASDAQ OMX designed the MQP to broaden the pool of ETF liquidity providers, encourage competitive trading and enhance the quality of the markets in ETFs by tightening quote spreads, increasing depth of liquidity and reducing execution costs for investors. This program has been approved by US SEC on a pilot basis.

NASDAQ OMX enhances UltraFeed

The NASDAQ OMX Group has enhanced UltraFeed to include US equity market depth data from NASDAQ, NYSE Euronext, Direct Edge and BATS exchanges. UltraFeed is a data feed that aggregates all North American equity, options, futures, mutual funds, index and bond data in a normalized message format.

NASDAQ OMX Commodities introduces block trade facility

On 29 April 2013, NASDAQ OMX Commodities introduced a new facility for entering into block trades, the Block Trade Facility. It permits NASDAQ to designate any of the contracts listed for trading as eligible for block trading. Provided certain conditions relating to size, aggregation and price are met, trading members may transact in Block Trade Contracts away from the ETS. Block trades nevertheless remain subject to the Trading Rules and must be reported within a set time limit.

NYSE Euronext to team upon governance, risk and compliance services

NYSE Euronext, Corpedia, Corporate Board Member and Marsh have entered into a strategic alliance to provide directors and officers with enhanced governance, risk and compliance resources. The alliance combines Corpedia’s expertise in governance, risk and compliance education and advisory services, and Corporate Board Member’s expertise in providing senior officers and directors with governance and compliance resources. Together, they will provide directors and officers with advisory services and resources they need to make informed decisions on compliance-related trends and issues.

NYSE Euronext Lisbon to attract SMEs to Alternext

NYSE Euronext Lisbon, the Portuguese Stock Exchange, has recently signed a protocol of cooperation and partnership with NERLEI-Associação Empresarial da Região de Leiria (Entrepreneurial Association of the Leiria Region) aiming to draw new companies to the Exchange, and especially to Alternext, the market dedicated to small- and medium-sized companies. This protocol will enable NYSE Euronext Lisbon to identify the NERLEI members interested in the capital markets, while the Association will present the Exchange as an alternative financing source.

Nigerian Bourse introduces designated advisers for SME companies

The Nigerian Stock Exchange, to promote SME companies listed on the Alternative Securities Market (the ASeM Board), introduced designated advisers. They will ensure that each company comply with all the listing and post-listing requirements of the ASeM Board.

Shanghai Stock Exchange boosts assets securitization

The Shanghai Stock Exchange has decided to provide transfer service for asset-backed securities, which would be temporarily exempted from the fee related to their listing, in a bid to regulate the transfer of asset-backed securities and propel the growth of the assets securitization business.

Stock Exchange of Thailand encourages firms to produce CSR reports

The Corporate Social Responsibility Institute, under the Stock Exchange of Thailand Group, is committed to encourage Thai listed companies to develop and operate businesses with social responsibility. To this end, a program called “Enhancing Thai listed firms’ CSR report development,” has been created and organized by CSRI.

TAIFEX announces new fee schedule

On 1 April 2013, TAIFEX cut the transaction tax for index futures by half from 0.004% to 0.002%. In addition, to further reduce transaction cost for participants, TAIFEX lowered trading and clearing fees of seven stock index futures, as well as access/connection fees for trading participants.

Tel-Aviv Stock Exchange revises price monitoring mechanism parameters

The Tel-Aviv Stock Exchange has revised the parameters governing activation of the price monitoring system on individual securities, as well as the shortening of the extensions for opening or closing auctions triggered by TASE mechanisms to check market-wide volatility or extraordinary price movements of individual securities.