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.
TMX Atrium, TMX Group's global marketplace infrastructure provider, announced that it will be launching a new cross-border marketplace connectivity network that uses industry best-practice microwave technology. The microwave network services will be available to all market participants.
Hong Kong Exchanges and Clearing Limited (HKEx) announced the establishment of a framework to support Application Service Providers (ASPs). ASPs play a vital role in HKEx's market ecosystem by providing services to Exchange Participants (EPs) and connecting investors to HKEx’s markets through EPs.
The new framework allows ASPs to contract directly with HKEx Hosting Services to establish an HKEx Service Network (HSN) link to HKEx's trading, clearing and market data systems that can be shared by their EP customers through individual HSN Virtual Ports (HSNVPs). EPs may be able to lower their operating costs and increase their efficiency by having an HSNVP and accessing HKEx products directly through an ASP.
Bahrain Bourse and NASDAQ OMX Group, Inc. (Nasdaq:NDAQ), announced that Bahrain Bourse has gone live with their new trading engine, powered by NASDAQ OMX's X-stream trading platform. The project went live on Monday, July 14, providing Bahrain Bourse with the world's most widely deployed, multi-asset trading platform.
BME and the Bolivian Stock Exchange (BBV) have signed an agreement to upgrade the country’s securities market with the installation of BME’s SIBE-SMART trading platform in the Latin American market. SIBE-SMART, designed and developed by BME, supports the various markets operated by the Group, such as Equities, Derivatives and Fixed Income. With the implementation of SIBE-SMART, the Bolivian exchange will be able to proceed with the technological and functional modernisation of the markets in financial instruments. BME will assist in the roll out and offer maintenance and support services.
Deutsche Börse Market Data + Services and the Philippine Stock Exchange, Inc. (PSE) have signed a memorandum of understanding (MoU) to establish a market data cooperation between the two exchanges.
Some key areas on which the exchanges would like to collaborate include the licensing of current market data offerings, increasing distribution channels for real-time data, and new product design and innovation. Deutsche Börse and Philippine Stock Exchange would explore these options under the MoU and expect to develop a concrete plan by the end of Q3 2014.
Singapore Exchange (SGX) announced that, following approval from the Reserve Bank of India, its Liaison Office in India has commenced operations with Neena Prasad as its Chief Representative. SGX’s office in India will provide information and act as a communication channel to support capital raising by Indian companies in Singapore. Such capital raising can be achieved via listing of stocks, bonds, Real Estate Investment Trusts, business trusts and/or depository receipts. The opening of SGX's India Office will also strengthen its partnership with the National Stock Exchange of India (NSE). The strategic partnership began in 2000 when the two exchanges collaborated to develop the international futures market. In 2007, SGX took a 5% minority investment in Bombay Stock Exchange (BSE).
CME Group announced that they have entered into definitive agreements to create value for their respective stockholder through a two-step transaction through which CME Group will acquire Trayport and FENICS. This transaction, which has been approved by the Board of Directors of GFI Group upon unanimous recommendation of a Special Committee comprised solely of independent and disinterested directors, and by the Board of Directors of CME Group, is expected to create significant stockholder value for both GFI Group and CME Group stockholders and to qualify as tax-free exchanges of equity for both groups. The transaction is subject to the approval of the stockholders of GFI Group as well as customary regulatory review and approvals. It is expected that the transaction will close in early 2015.
The WFE Sustainability Working Group (SWG), which includes representatives from 19 WFE member exchanges from around the world, convenes regularly to discuss material concerns and share best practices related to sustainability. The group works under the auspices (and with the assistance) of the WFE, focusing on the needs of the exchange business. It is an internal discussion group, not a forum for the debate of investor proposals, reporting frameworks, or the work of NGOs and other advocates. Although the SWG is keenly aware of these dynamics, it will not engage, endorse, or promote any outside group or agency during the course of its work.
Instead, the SWG investigates the material need (if any) for exchanges to seek, standardize, and/or publish environmental, social, and corporate governance (ESG) data. Through careful analysis of existing data forms and reporting frameworks, group members seek to understand the real impacts, both positive and negative, on our business. Furthermore, the SWG will reflect upon the role of exchanges in the formation and sustenance of a fair, open, and transparent economy—and the proper leverage that exchanges may exert in promoting more sustainable business models.
We hope our work proves productive and enlightening enough to be offered to the general membership of the WFE for consideration in due course.
Evan Harvey, Chairman
Corli le Roux, Vice Chair