The World Federation of Exchanges Ltd. published its Statistics Market Highlights Report on the first-half year 2014. The main trends for this first six months of the year were:
· The value of share trading rose 10% worldwide to 29.7 trillion USD from the second-‐half of 2013 (+6.8% year on year).
· The number of trades rose 10% from the second-half of 2013 (+12% year on year); the average value of trades decreased.
· A continuing strong performance of equity markets, Global Market Capitalization rose 6% to 68.7 trillion USD from the second-‐half of 2013 (+21% year on year.)
· Good performance of IPO markets and investment flows. The number of IPOs fell 11% compared to the second half of 2013 but increased 42% year on year. Total investment flows in USD increased 17% compared to the second-‐half of 2013(+11% year on year.)
· Exchange Traded Derivatives (ETD) volumes were stable. The total number of contracts traded decreased 0.2% from the second-‐half of 2013 (-‐13% year on year.)
IOSCO’s Review of the Implementation of IOSCO’s Principles for Financial Benchmarks by Administrators of Libor, Euribor and Tibor was published as part of the Financial Stability Board’s (FSB) report on Reforming Major Interest Rate Benchmarks. The IOSCO Report assesses the three major interest reference rates against the internationally agreed and endorsed IOSCO Principles for Financial Benchmarks.
The report finds that both completed and on-going reforms have raised the overall oversight, governance, transparency and accountability of the three administrators and their respective benchmarks. This has undoubtedly improved the quality and integrity of the three benchmarks. IOSCO also notes that these reforms have occurred in the context of regulatory, operational and organisational changes concerning all three administrators.
The Bank of Canada and certain provincial commissions announced that the TMX Group Limited central counterparties (CCPs) – CDCC, CDS and NGX – can each be considered qualifying central counterparties (QCCPs) pursuant to the standards developed by the Basel Committee on Banking Supervision and adopted by OSFI. This status allows certain bank exposures to the CCPs to be subject to lower capital requirements.
CME Group, the world’s leading and most diverse derivatives marketplace, and Thomson Reuters, the world’s leading source of intelligent information for businesses and professionals, have launched the new LBMA Silver Price mechanism in partnership with the London Bullion Market Association (LBMA). CME Group, Thomson Reuters and LBMA have joined forces to provide the over-the-counter spot silver market with a new transaction-based price-setting mechanism for the LBMA Silver Price that is IOSCO-compliant and fully electronic. CME Group will provide the electronic auction platform on which the price will be calculated, Thomson Reuters will be responsible for administration and governance and the LBMA will accredit price participants. The new LBMA Silver Price benchmark will be published and distributed by Thomson Reuters and will be available on the LBMA’s website.
The London Silver Fix, most recently administered by London Silver Fixing Market Limited, which ceased operations as of August 14, was a global benchmark for 117 years. The new price setting mechanism developed by CME Group, Thomson Reuters and LBMA for establishing the over-the-counter spot silver price will ensure continuity for market participants via a transaction-based auction platform. It will continue to be London-based and will offer a fully IOSCO-compliant solution to the London bullion market. Deep industry engagement and broad market support leading up to the launch of this new benchmark should minimise disruptions and enable a seamless transition for the market
Cash-settled USD/RUB FX futures will be launched on the Standardised OTC Derivatives Market on 18 August. The new instrument will allow market participants to hedge against exchange-rate risk. Contracts can be concluded with any expiration date and any underlying asset size. Settlement in cash will reduce costs as no physical delivery is necessary.
Fifteen banks are now members of the Standardised OTC Derivatives Market: Sberbank, VTB Bank, Deutsche Bank, Bank Credit Suisse (Moscow), Raiffeisenbank, ING Bank (Eurasia), UniCreditBank, Metallinvestbank, OTP Bank, Uralsib, Otkritie Bank, Bank of Khanty-Mansiysk, DIB, IBSP, and Novoye Vremya.
The Singapore Exchange (SGX) is utilizing The Steel Index (TSI)’s daily coking coal price indices published by Platts, a leading global provider of energy, metals and commodities information, as the settlement basis for its metallurgical coal futures and swaps contracts newly launched.
The Singapore Exchange’s two new TSI-based contracts are:
- SGX TSI Australia Premium Coking Coal Futures and Swaps, reflecting the value of coal used in steel making as free on board (FOB) in East Coast Australian ports
- SGX TSI China Premium Coking Coal Futures and Swaps, reflecting the value of coal used in steel making as delivered to Jingtang port in China on a cost and freight (CFR) basis.
The Stock Exchange of Mauritius (SEM) wishes to inform investors and the public at large that the Exchange is replacing the SEM-7 Index with a new index, namely, the SEM-10 Index, with effect from Thursday 02 October 2014.
Since the creation of the SEM-7 Index in 1998, the stock market in Mauritius has witnessed a surge in total market capitalization due to the growth in size of the listed companies and the growing number of listings on the Official Market. Some of these newly listed companies have expanded the list of highly capitalized, liquid and frequently traded stocks.
The underlying changes in the market environment since 1998 have underscored the need to re-actualize the SEM-7 Index, to better reflect current market conditions and introduce an Index that tracks the performance of the ten largest eligible stocks of the Official Market, measured in terms of market capitalization, liquidity and ‘investibility’ criteria. The Reserve List of the SEM-10 Index will comprise of five stocks.
On the day of its introduction, Thursday 02 October 2014, the opening level of the SEM-10 Index will be set at the closing level of the SEM-7 index on Wednesday 01 October 2014.
NASDAQ OMX announced that First Trust will launch a new exchange traded fund (ETF), First Trust Dorsey Wright International Focus 5 ETF (Symbol: IFV), which will be listed on The NASDAQ Stock Market® (NASDAQ®). IFV will begin trading on NASDAQ on Wednesday, July 23, 2014.
CME Group, the world's leading and most diverse derivatives marketplace, announced expanded access to its CME Eurodollar liquidity pool by offering Bundle futures and options on Bundle futures. Contracts will be available starting September 22, 2014, pending CFTC review.
The new contracts will complement the existing suite of Eurodollar contracts and Eurodollar Packs and Bundles. Introduced in 1994, the Eurodollar Bundle enables the simultaneous sale or purchase of one each of a series of consecutive Eurodollar contracts, leaving the user with a strip of individual Eurodollar futures positions. The new Bundle futures provide the same economic exposure, through a single line item instead of a strip of contracts. Bundle futures and options will be available through the CME Globex electronic trading platform, open outcry, and block trading, and will be available in 2-year, 3-year and 5-year tenors.
Euronext announced the launch of weekly expiry dates on its CAC40® and AEX® future contracts. This initiative is the first of its kind in Europe and will complement the existing offer where futures contracts traditionally expire on a monthly or quarterly basis. The shorter expiry period will provide members with more trading possibilities, an opportunity for improved risk management, as well as an efficient hedging tool during the dividend season or when trading AEX weekly options. The product will be launched in the fourth quarter of 2014.