The International Organization of Securities Commissions today published the consultation report Post-Trade Transparency in the Credit Default Swaps Market, which seeks to analyze the potential impact of mandatory post-trade transparency in the credit default swaps (CDS) market.
The report’s analysis is based on a review of relevant works of international standard-setting bodies and academic literature and an examination of publicly available transaction-level post-trade data about CDS transactions before and after the introduction of mandatory post-trade transparency in certain CDS markets in the United States. IOSCO also conducted a survey of market participants and other market observers regarding their use of certain publicly available post-trade data and its perceived impact on the market.
The Taiwan Stock Exchange (“TWSE”) launched the Greater China region’s first leveraged and inverse Exchange Traded Funds (ETFs), namely the “Yuanta Daily Taiwan 50 Bull 2x ETF” and “Yuanta Daily Taiwan 50 Bear -1x ETF”, on October 31.
The new products add further variety to Taiwan’s growing ETF landscape. The TWSE is currently home to 23 ETFs, including 7 ETFs which track offshore benchmark indices for markets including Hong Kong, Shanghai and Shenzhen. The combined ETF traded value on TWSE reached NT$55.7bln in September 2014, up 110% compared to the same period last year.
The TWSE is continuing to work closely with both domestic and offshore issuers to facilitate the timely introduction of more alternative financial products – including leveraged, inverse, and commodity ETFs plus indices – in order to attract more liquidity and investors to the Taiwan market.
NZX is proposing to move to a shortened trading settlement cycle from the current trade date plus three business days settlement (T+3) to a trade date plus two business days settlement (T+2) for cash market trades on its markets.
Key benefits of the proposal are the reduction of risk to those involved in the settlement process and maintaining alignment of settlement cycles in New Zealand and Australian capital markets. Technological changes in the industry mean that a shortened settlement cycle is possible and is consistent with a wider move around the world from T+3 to T+2.
The JSE has successfully completed the second phase of the JSE’s number one priority project, the T+3 project. The project is being implemented in three phases, and will result in the local equities market moving from the current T+5 settlement cycle to a shorter, three day settlement cycle (which is the intention of Phase 3 on the initiative). The JSE’s move to a T+3 settlement cycle will further align the South African market with global best practice and improve its efficiency and credibility.
Hong Kong Exchanges and Clearing Limited (HKEx) welcomes the announcement by the China Securities Regulatory Commission and the Hong Kong Securities and Futures Commission of the start date for Shanghai-Hong Kong Stock Connect (Stock Connect), a mutual market access programme of the Hong Kong and Shanghai stock markets.
As stated in a regulatory announcement HKEx published on the 10th November, the launch of Shanghai-Hong Kong Stock Connect on 17 November 2014 has been approved.
The HKEx market has been ready in terms of technical systems and operations for the launch of stock connect. HKEx is also pleased to announce that all the conditions under the Four-party Agreement* have been satisfied and therefore Stock Connect will commence operation on the launch date.
The list of Exchange and Clearing Participants that will participate in Stock Connect, the list of eligible stocks for Northbound trading and the list of stocks that will be eligible for Northbound margin trading on 17 November 2014 are available in the Stock Connect section of the HKEx website. As the registration process for Exchange Participants who have successfully completed the market rehearsals as China Connect Exchange Participants remains in progress, the participant list will be updated as more registrations are completed. The eligible stock lists will be updated daily.
Intercontinental Exchange (NYSE: ICE), the leading global network of exchanges and clearing houses, announced that following an extensive selection process facilitated by the London Bullion Market Association (LBMA), ICE Benchmark Administration (IBA) has been announced as the new administrator of the LBMA Gold Price. ICE Benchmark Administration expects to assume responsibility of the LBMA Gold Price in early 2015.
The LBMA Gold Price will replace the Gold Fixing Price which has been in existence since September 1919. The price is set in London twice a day and provides a published benchmark price that is widely used as an international pricing medium by producers, consumers, investors and central banks.
As the new administrator for the LBMA Gold Price, IBA will transition to a physically settled, electronic and tradeable auction, with the ability to participate in three currencies: USD, EUR and GBP. Aggregated gold bids and offers will be published in real-time with the imbalance calculated and the price updated every 30 seconds. IBA will use the WebICE technology platform which will allow direct participants as well as sponsored clients to manage their own orders in the auction in real time via their own screens.
Upon approval by the China Securities Regulatory Commission, the Shanghai Stock Exchange (SSE) recently releases the “SSE Notice of Relevant Issues of Launching Pilot Business of Private Placement Bonds for Mergers, Acquisitions and Reorganizations” (the “Notice” for short), in a bid to implement requirements in the “Opinions of the State Council on Further Optimizing Market Environment for Enterprises’ Mergers, Acquisitions and Reorganizations” and relevant documents and give full play to the positive role of the capital market in propelling enterprises’ mergers, acquisitions and reorganizations. The SSE’s move marks the official launch of the pilot work for private placement bonds for mergers, acquisitions and reorganizations.
CME Group and Korea Exchange (KRX) have a strategic partnership realized through a market linkage agreement. The agreement enables KRX members to trade KOSPI 200 futures after hours on the CME Globex trading platform, via the KRX’s Unified System for Global Trading.
The partnership provides:
- A global distribution network for the KOSPI 200 futures
- Virtual 24-hour access to the contract via KRX member firms
Nasdaq (Nasdaq:NDAQ) announced that Global Access Services, the exchange group's facilitator of alpha-generating market solutions for the financial services community, will launch a Nasdaq Point of Presence (Nasdaq POP) in Chicago, Illinois in the first quarter of 2015. The Nasdaq POP in Chicago, along with the Nasdaq POP already live in Secaucus, New Jersey, will be available for market participants seeking access to Nasdaq eSpeed, the exchange group's over-the-counter platform for electronic trading in U.S. Treasury securities, and Nasdaq's U.S. cash equities and equity derivatives markets pending Securities and Exchange Commission approval. In addition, Nasdaq will establish a disaster recovery facility in Chicago for Nasdaq eSpeed in the fourth quarter of 2014.
Intercontinental Exchange (NYSE: ICE), the leading global network of exchanges and clearing houses, announced that it has successfully completed the transition of the Liffe European interest rate derivatives complex to ICE Futures Europe.