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

The next major shock to the global financial system will come as a result of a cyber-attack, according to Greg Medcraft, chairman of regulator the International Organization of Securities Commissions (IOSCO). Medcraft told the FT on Sunday that the financial markets were at risk because of the “uneven” response to online threats around the world. “The issue of cyber resilience is a bit of a sleeper issue, and one that we have to be proactive [about] in terms of making sure the risk management approach is robust,” he said in an interview with the paper. “Cybercrime has a huge potential impact on markets.”

Medcraft claimed that the best approach would be to build on the work being done in the US, which is apparently developing risk management standards which firms in the industry could better use to spot and block cyber-attacks. The SEC has already stated it plans to assess the ability to deflect threats of 50+ broker-dealers and investment advisors. The IOSCO published a report last July with the World Federation of Exchanges which warned that the number of high profile and critical “hits” is increasing.

Wednesday, September 24, 2014

BM&FBOVESPA begins operating the BM&FBOVESPA Clearinghouse, a new post-trade infrastructure which in a single platform will include exchange-traded and OTC derivatives; equities and corporate bonds; spot FX; and federal government bonds. Previously all of these markets used separate clearinghouses. As well as unifying the four existing clearinghouses, there is the major development of introducing of one of the world’s most modern and secure risk management systems: Closeout Risk Evaluation (CORE) (Details below). The BM&FBOVESPA Clearinghouse will bring greater robustness and competitiveness to Brazil’s financial and capital markets, representing a milestone in their evolution and history.

Wednesday, September 24, 2014

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.

Wednesday, September 24, 2014

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.

Wednesday, September 24, 2014