CBOE Futures ExchangeSM (CFE®) announced that it plans to launch futures trading on the CBOE/CBOT 10-year U.S. Treasury Note Volatility IndexSM (ticker symbol VXTYNSM) beginning on Thursday, November 13, pending regulatory review. CBOE CEO Edward Tilly made the announcement during his address to attendees at the CBOE Risk Management Conference Europe, currently taking place outside of Dublin.
The VXTYN Index, on which futures on VXTYN is based, is calculated by applying the CBOE Volatility Index® (VIX® Index) methodology to futures options data from CME Group's 10-year U.S. Treasury note contract -- one of CME Group's most active interest rate options products. In May 2013, CBOE began disseminating values on the VXTYN Index as part of an agreement between CBOE and CME Group.
Shenzhen Stock Exchange (SZSE) and Shenzhen Securities Information Co., Ltd. recently announced to launch SZSE Convertible Bond Index (Code: 399307, Abbreviation: SZSE Convertible Bond) and CNI Convertible Bond Index (Code: 399413, Abbreviation: CNI Convertible Bond) on August 27, 2014. The indices are designed to depict the overall operation feature of the convertible bond market, and fuel the development and innovation of indexing investment.
Being as a hybrid security with debt- and equity-like features, a convertible bond holder may enjoy a return close to stock investment in a bull market and resist the crash when market collapses. Holding of a convertible bond not only keeps the long-term growth potential of stocks but also the security and income advantage of bonds, is a kind of investment which maximizes profit when risks are considered. In recent years, the convertible bond market witnesses steady growth with 31 convertible bonds listed on Shanghai and Shenzhen stock markets and valued about CNY 167 billion (as of the end of July, 2014). The convertible bond market has become an important component in the exchanges’ bond market.
Euronext announced that trading in equity options on Euronext N.V. shares will start on the Amsterdam derivatives market as of Thursday 28th August.
The new options will be listed in the Spotlight Options section, Euronext’s special segment dedicated to the development of new option classes requested by market participants. Spotlight Options give visibility to underlying assets such as newly listed stocks, SME’s and/or assets with notable market events or activity. Through a unique combination of Liquidity Provider support and dedicated promotion by Sponsoring Brokers, underlying assets are put in the spotlight with short-term maturities options of one, two and three months
NASDAQ OMX announced that First Trust listed a new exchange-traded fund (ETF) which began trading on Thursday, August 14, 2014. First Trust Strategic Income ETF (Nasdaq:FDIV), listed on The NASDAQ Stock Market® (NASDAQ®).
FDIV seeks a high level of risk-adjusted income and diversification through the use of multiple asset classes, targeted investment strategies and specialized management teams. By tactically blending multiple investment strategies, which includes both fixed-income investments and income-producing equity securities, the Fund may provide a lower risk, total return alternative to focusing solely on one strategy. This approach focuses on providing risk-adjusted income and capital appreciation potential by utilizing the expertise of multiple specialist asset managers in a single investment portfolio. FDIV offers a disciplined and transparent solution for investors seeking income.
The Stock Exchange of Thailand (SET), together with four stock exchanges in Greater Mekong Subregion (GMS) – Cambodia, Hanoi, Hochiminh and Laos –, participated in the second GMS exchanges CEOs meeting ‘GMS Focus’. This SET’s hosted meeting serves as a platform for closer collaboration among GMS exchanges.
A collaboration of five stock exchanges in GMS has continued after successfully organizing the first GMS Focus last year by initiating the GMS exchange’s information centre on SET website www.set.or.th/en/gms_exchanges, an integrated single-window view into the GMS capital market featuring market data that contains each market stock quotation together with regional brokers and exchanges’ information. It is the first key milestone for the cooperation of the GMS exchanges, bringing new investment opportunities to the region. Furthermore, the five exchanges also jointly agree to launch the GMS exchanges’ information centre from each exchange’s website. In addition, factsheet of listed companies in each market will be facilitated on the website, reinforcing the exchanges’ cooperative effort to promote investment opportunity in the region.
CME Group, the world's leading and most diverse derivatives marketplace, announced that it has promoted John Pietrowicz to Senior Managing Director and Chief Financial Officer as James E. Parisi, who has held that role since 2004, will retire from the company on December 31. Pietrowicz, 50, who has been with the company since 2003 and has been serving most recently as Senior Managing Director, Corporate Development & Finance and Deputy CFO, will move into the CFO role effective upon Parisi's resignation. He will report to CME Group Chief Executive Officer Phupinder Gill. Parisi, 49, will remain with the organization in his current role through yearend to ensure a smooth transition.
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