The Ministry of Environment and the Korea Exchange (KRX) announced that they will start a mock emission trading from Sep. 29 (Mon.), 2014 in order to successfully open an official Emission Trading Market in Jan. 2015.

- The mock market will be operated in two (2) phases until Dec. 24 (Wed.) based on an emission trading system to be developed by the KRX.

Tasks to be done in the phase 1 include: system integration among KRX, Greenhouse Gas Inventory & Research Center of Korea, Koscom, and settlement banks; a test for submission of orders and execution of transactions by companies with emission allowance; and education for the companies on the mock trading.

Tasks to be done in the phase 2 include: with the participation of all companies allotted with emission allowance by the Ministry of Environment, all through process of the emission trading from order placement and execution of transactions to clearing and settlement to be conducted in the environment as same as that of the real regular market.

- The mock trading market is expected to serve as a good opportunity for each company to experience the whole trading process in advance as companies will be allowed to directly get access to the KRX trading system from their place of business.

Friday, September 26, 2014

BM&FBOVESPA (BVMF) and China Financial Futures Exchange (CFFEX) announce they have agreed a memorandum of understanding (MOU) to enhance mutual understanding, promote bilateral support and facilitate development for both exchanges. The main scope of exchanges agreement covers information sharing, high level dialogue, training and staff exchange and business cooperation.

"This agreement further strengthens the relationship with the financial market in China. The purpose is to explore all possibilities of concrete business between the two exchanges, taking advantage of the strong potential of the two markets and develop new channels for this long-term cooperation”, said Edemir Pinto, CEO of BM&FBOVESPA

"It is essential for CFFEX to strengthen cooperation and exchange with overseas partners such as BM&FBOVESPA. I’m confident that such cooperation will greatly benefit both exchanges and help to achieve a win-win outcome and common prosperity." said Hu Zheng, CEO of China Financial Futures Exchange.

Friday, September 26, 2014

S&P Dow Jones Indices (S&P DJI), one of the world’s largest providers of financial market indices, and Toronto Stock Exchange (TSX) announced the launch of the S&P/TSX Composite Shareholder Yield Index and the S&P/TSX Composite Buyback Index.

The S&P/TSX Composite Shareholder Yield Index is designed to measure the performance of the top 50 stocks with the highest shareholder yield in the S&P/TSX Composite. Shareholder yield ratio is derived from the payment of dividends to common shareholders, the monetary amount companies spend in their common stock repurchase programs, and debt paydown (change in total debt) over the last four calendar quarters. Horizons ETFs Management (Canada) Inc. (Horizons ETFs) has licensed the S&P/TSX Composite Shareholder Yield Index as the basis for a potential new exchange traded fund for the Canadian Market.

The S&P/TSX Composite Buyback Index is designed to measure the performance of the 50 constituent companies in the S&P/TSX Composite with the highest buyback ratio in the last 12 months. The buyback ratio is defined as the amount of cash paid for common share buybacks in the last four calendar quarters divided by the total market capitalization of common shares at the beginning of the buyback period.

Thursday, September 25, 2014

Eight new exchange-traded notes (ETNs) issued by ETFS Foreign Exchange Limited have been tradable on Xetra since Thursday.  

The eight new currency ETNs allow investors to participate in the performance of currency indices with a leverage factor of five for the first time. The underlying ETNs track the exchange rate movements of the euro to the Australian dollar, Japanese yen, Swiss franc and US dollar. Depending on the ETN selected, investors have the opportunity to benefit from a rising or a falling euro exchange rate. The new products are listed in the attached table with ISIN and total expense ratio. 

Exchange traded notes are passive investment products that track the performance of underlying reference indices. Unlike exchange traded commodities (ETCs), which are also listed on Deutsche Börse, ETNs are based on indices outside the commodities sector. ETCs and ETNs are both types of exchange tradable bond.

Deutsche Börse’s product range in the ETF and ETP segment currently comprises 1,038 ETFs, 223 ETCs and 149 ETNs. This selection, together with an average monthly trading volume of around €10 billion, makes Xetra Europe’s leading trading venue. 

Thursday, September 25, 2014

Intercontinental Exchange (NYSE: ICE), the leading global network of exchanges and clearing houses, announced that the Ontario Securities Commission (OSC) approved ICE Trade Vault as a Canadian Trade Repository to serve the commodity, credit and foreign exchange asset classes. ICE Trade Vault will seek trade repository registration in Alberta once the provincial rules are finalized.

In June 2012, ICE Trade Vault became the first Swap Data Repository in the U.S. to receive provisional regulatory approval from the Commodity Futures Trading Commission. ICE Trade Vault began accepting credit default swaps trade data in October 2012 and commodities trade data in February 2013. In November 2013, the European Securities and Markets Authority approved ICE Trade Vault Europe as a trade repository for the reporting of swaps and futures trade data to meet requirements of the European Market Infrastructure Regulation.

ICE’s proven repository technology for market participants to submit data and will connect to a range of institutions, including clearing houses, Swap Execution Facilities and Designated Contract Markets. Adopting ICE’s repository technology will ensure minimum disruption for participants who can continue to use their existing connectivity to report derivatives data in real-time. New Canadian reporting requirements are scheduled to take effect Oct. 31, 2014.

Wednesday, September 24, 2014

TMX Group announced the successful launch of its high performance equity trading engine, TMX Quantum XA™ on TSX Venture Exchange.

TMX Group's technology team has been recognized around the world for the innovative design and application of TMX Quantum XA. In addition to the Canadian Advanced Technology Alliance Innovation and Leadership Award achievement in May 2014, TMX Quantum XA has also recently been shortlisted as a finalist for two technology awards set for later this year; the Financial World Innovation Awards 2014, in the category of "Most Innovative Application of Technology", and the Information Technology Association of Canada's 2014 Ingenious Awards for "Excellence in the Use of Technology."

Wednesday, September 24, 2014

Singapore Exchange (SGX) today launched a new research and company fundamentals portal on its website.

The portal, called SGX StockFacts, has several features, including:

  • A comprehensive research database, covering stock fundamentals for all SGX-listed companies
  • Customised search, giving investors flexibility to filter stocks across 20 screening criteria
  • New proprietary tools, including S&P Capital IQ Alpha Factor Composites, which ranks stocks based on eight investment style classifications
  • Ability to chart a company’s financials for the last five years
  • Downloading and printing of company snapshots for easy analysing

Mita Natarajan, Head of Corporate Services, Listings, SGX, said: “SGX has enhanced many aspects of the stock market in recent months. The SGX StockFacts portal, which presents vital research and stock fundamentals on all SGX-listed companies in a user-friendly way, is yet another improvement to add value to investors and companies. It will help investors make more informed investment decisions, raise the visibility of our companies and add vibrancy to the stock market.”

SGX StockFacts is collaboration between SGX and S&P Capital IQ, a business unit of McGraw Hill Financial and a provider of multi-asset class research, data and analytics.

Wednesday, September 24, 2014

Alibaba Group Holding Ltd. opened for trading on the New York Stock Exchange (NYSE) under the ticker symbol "BABA" after its initial public offering (IPO) on the floor of the NYSE. Barclays is the Designated Market Maker for the company's stock, which opened at $92.70.

Alibaba customers celebrated the company’s first day of trading by ringing The NYSE Opening Bell®.

“We are delighted to welcome Alibaba to the NYSE and our family of the world’s best companies and leading brands,” said NYSE Group President Thomas W. Farley. “Alibaba is a global leader in online and mobile commerce and a true innovator. We congratulate the entire team at Alibaba on its IPO and look forward to serving the company and its shareholders.”


As the largest ever U.S. IPO, Alibaba is the 88th company to conduct its IPO on the NYSE and NYSE MKT this year, representing $50.6 billion in total proceeds*. It is the 25th technology company IPO, representing 57% percent of all technology company IPOs in the U.S. in 2014.

Wednesday, September 24, 2014

On September 08, 2014, BM&FBOVESPA launched 6/7 Arabica Coffee Derivatives Contracts and authorized Structured 6/7 Arabica Coffee Rollover Transactions (KR1). As of September 09, 2014, there will be trading in Call and Put Options on the 6/7 Arabica Coffee Futures Contract (KFE).

This contract brings the Exchange closer to the producers and cooperatives and introduces trading in a coffee type closer to that transacted on the physical market. The 6/7 Arabica Coffee contract permits settlement by delivery of the commodity. The contract size is 100 60-kilogram bags and contract months are March, May, July, September and December. The price quotation is in United States Dollars per 60-kilogram bag.

The portfolio of coffee products at BM&FBOVESPA includes 4/5 (ICF) and 6/7 (KFE) Arabica coffee futures and options contracts.

The contracts will be traded in the BM&FBOVESPA PUMA Trading System – Derivatives and settled by the BM&FBOVESPA Clearinghouse* (both of which are managed by the Exchange), following the respective operational rules of these as regards trading, market participants, risk exposure limits, collateral and forms of settlement.

Wednesday, September 24, 2014

Numerous studies show that stock price is an important function of liquidity, a major component of market quality. Low-priced securities are generally associated with the risk of high volatility, making them more susceptible to excessive speculation and market manipulation, while higher-traded prices are associated with greater liquidity and market depth.

Recently, Singapore Exchange (SGX) conducted a review of the market quality of the SGX securities market in 2013. SGX’s study investigated if a higher level of market quality was observed at different levels of 2013 trading prices of  Mainboard and Catalist stocks, using bid-ask spreads and quoted best depth value to assess market quality. These two liquidity measures indicate the implicit trading costs faced by investors. A lower implicit trading cost ensures that investors will achieve a better quality of execution, which points to a higher quality market.

SGX would like to share with you the following key findings from the study:

  • Stocks priced above S$0.25 were quoted with narrower bid-ask spreads and higher quoted best-depth value. This shows that trades at S$0.25 or greater display higher levels of liquidity or market quality.
  • Stocks trading at less than S$0.05 and at S$0.25 or greater exhibit tighter bid-ask spreads, suggesting lower trading costs.
  • Conversely, those stocks that traded at prices between S$0.05 and S$0.25 were found to be largely illiquid. They typically traded at wider bid-ask spreads during the trading day and even had one-sided order books, making it difficult for investors to close out their open positions.
Wednesday, September 24, 2014