NO 244 – JUNE 2013

WFE Focus May 2013
New services

Borsa İstanbul changes first session trading hours

On 10 June 2013, Borsa İstanbul Equity Market and Emerging Companies Market trading hours for the first session changed as follow: the opening session is from 9:15 to 9:35; the main session is from 9:35 to 12:30.

Eurex launches Euribor futures initiative

On 1 June 2013, Eurex Exchange launched a new initiative to increase the attractiveness of its short term interest rate derivatives segment by offering new trading and market making incentives for its 3-month Euribor futures. As part of the initiative, Eurex offers a completely new market making scheme replacing the current one. Additionally, to increase the liquidity and gain customer flow, fee rebates for client orders will be offered relative to open interest held. Eurex Exchange offers new short term interest rate functionalities which support the initiative.

Eurex launches new services to support trading in volatility derivatives

On 6 June 2013, Eurex Exchange began to offer new research tools via its website enabling interested investors to obtain a comprehensive insight into the world of analysis, valuation and trading of volatility derivatives. The VSTOXX Advanced Services offering is primarily aimed at portfolio managers, proprietary traders, client traders and brokers, as well as risk managers and institutional investors, all of whom can hedge their portfolios much better with the volatility derivatives listed on Eurex Exchange.

Johannesburg Stock Exchange cuts fees for interest rate and currency derivatives

In a bid to increase liquidity and boost trading volumes, the Johannesburg Stock Exchange will reduce fees for both interest rate and currency derivatives effective 1 July 2013.

Johannesburg Stock Exchange launches online virtual trading game

In a bid to inspire South Africans to trade on the exchange, the Johannesburg Stock Exchange has launched the first JSE virtual trading game, an online trading competition which simulates a real trading environment and allows participants a risk-free opportunity to trade shares.

NASDAQ Dubai to launch trading platform for trading sukuk and bonds

NASDAQ Dubai is preparing to open a platform on which investors can trade Sukuk (Islamic bonds) and conventional bonds. Trades will be automatically and exclusively routed for settlement to Euroclear Bank. The platform will be available to institutional and high-net worth investors, and will be opened and gradually developed in the coming weeks.

NASDAQ OMX launches NLX market

NASDAQ OMX NLX, the new London market offering a range of both short- and long-terms interest rate euro- and sterling-denominated listed derivative products on a single market, and LCH.Clearnet have received the necessary regulatory approvals to launch the NLX market on 31 May 2013. All products will be cleared through LCH.Clearnet.

NASDAQ OMX Commodities launches German power initiative

The German Power initiative is part of NASDAQ OMX’s overall commodities strategy to leverage its best in class technology platform and expand its presence in the three largest power markets in Europe. The German Power Initiative, aimed at making the German power market more transparent, liquid and cost effective, continues to receive strong market support. To date, 10 liquidity providers, 3 brokers and 1 market maker have signed on since NASDAQ OMX Commodities invited members to participate last March. With this initiative, NASDAQ OMX plans to build on its proven success in the Nordic power market and the N2EX offering in the UK.

NASDAQ OMX Nordic introduces smart order routing

NASDAQ OMX Nordic has introduced the latest addition to its smart order routing offering, making NASDAQ OMX Nordic the only trading platform to offer trading in all shares in all five Nordic countries. As a result, NASDAQ OMX Nordic can facilitate best execution with the European Best Bid and Offer for all Nordic shares on one platform through a single connection, including all shares listed at Oslo Børs and Oslo Axess.

NASDAQ OMX and Smarsh sign partnership to deliver compliance risk capabilities

NASDAQ OMX and Smarsh, the provider of hosted archiving and compliance solutions for email and electronic communications, signed a partnership to offer Smarsh services to corporations, broker-dealers, exchanges and regulators alongside NASDAQ OMX’s SMARTS market surveillance and compliance solutions. By combining the Smarsh archiving and compliance solutions with NASDAQ OMX’s SMARTS platform, customers globally will be able to fine-tune their compliance and risk management activities.

NYSE Euronext launches EnterNext

NYSE Euronext launched in Europe EnterNext, its new marketplace for SMEs. It is dedicated to companies that have a capitalization of under EUR 1 bn and already covers over 750 SMEs listed on the regulated market of NYSE Euronext and on NYSE Alternext. EnterNext has been designed to facilitate the financing requirements and development of European SMEs that operate regionally, nationally and internationally. Whilst working closely with regional economies, it has been designed to operate on a pan-European basis. Backed by its own teams and financial resources, EnterNext will build upon NYSE Euronext’s market model.

NYSE Euronext’s NYSE Arca unveils ETP incentive program

NYSE Euronext has received approval from the US Securities and Exchange Commission to launch the NYSE Arca Exchange Traded Product incentive program. It offers an alternative for incentivizing lead market makers to be the primary market maker in certain Exchange Traded Products selected by issuers who can select five existing ETPs in addition to any new ETP listed for inclusion in the program. Issuers will immediately benefit from having oversight of an obligated liquidity provider assigned to their newly listed ETPs, resulting in improved market quality with narrower spreads, increased quote depth and reduced execution costs for investors trading the products.

Oslo Børs to undertake NIBOR fixing

Finance Norway, the federation for banks, insurance companies and other financial institutions in Norway, wants Oslo Børs to be in charge of the calculation of the Norwegian Interbank Offered Rate, NIBOR. Oslo Børs will also undertake the supervision of the filing of interest rates from the banks that constitute the base for the calculation of the interbank rate. Through this new scheme, Oslo Børs will provide a recognized and neutral framework for determining the NIBOR. Finance Norway and Oslo Børs will now initiate a process to establish a formal agreement to enact these initiatives.

Oslo Børs offers trade in Nordic instruments

Thanks to the completion of the merger between Oslo Børs and Burgundy, Oslo Børs is now able to offer a comprehensive Nordic offering with the trading in securities listed in Norway, Sweden, Denmark and Finland directly available in the Oslo Børs trading system. Members of Oslo Børs/Burgundy now have access to a complete Nordic portfolio of over 1,000 Nordic equities.

Stock Exchange of Thailand improves efficiency of derivative warrants trading

The Stock Exchange of Thailand has improved derivative warrants trading by shortening the listing period to 3 days from 15 days, lengthening ticker symbols to include the date of the last trading day, enabling investors to easily identify the allowed trading period, and expanding the underlying assets for derivative warrants to include securities listed under the SET100 index and SET index series.

Tel-Aviv Stock Exchange extends its trading hours

On 16 June 2013, the Tel-Aviv Stock Exchange extended its trading hours to better align TASE with the trading hours of foreign markets. From Monday through Thursday, trading hours in equities, derivatives and bonds will be extended to 17:25. The rest of the trading schedule will remain unchanged.