Formation of a regulated market for trading began in the early 1980’s. Saudi Arabian Monetary Agency (SAMA) was charged with regulating and monitoring market activities until the Capital Market Law issued in July 2003, and the Authority (CMA) was established in 2004. The CMA is the sole regulator and supervisor of the capital market, it issues the required rules and regulations to protect investors and ensure fairness and efficiency in the market. The Saudi Stock Exchange (Tadawul) was incorporated in 2007 as a for profit joint stock company.
The Australian Securities and Investments Commission (ASIC) is Australia's corporate, markets and financial services regulator. An independent government body, its priorities are to ensure confident and informed investors and financial consumers, fair and efficient financial markets, and efficient registration and licensing.
The WFE supports competition and believes that regulators must promote market designs that foster order interaction in a free, transparent and fair competitive environment. Unfortunately, regulations intended to promote competition between and on-exchanges have in recent years been misused to enable the growth of venues designed to avoid competition.
In Q1 2013 compared to the same period of 2012, share trading value (EOB) slightly declined by 3.5% in USD terms at WFE global level with Americas and EAME regions recording similar drops of nearly -12%. On the contrary, Asia Pacific trading value surged by 17% thanks to some remarkable performances by the Shanghai Stock Exchange and Shenzhen Stock Exchange (+28% for both of them), SET (+111%) or Japan Exchanges (+ 66% for OSE & 45% for TSE).
WFE interviews with the Stock Exchange of Mauritius
WFE interviews with the Korea Exchange
The impending regulatory overhaul of the OTC equity derivatives markets will require a rapid change in direction from an industry which has so far remained wedded to voice broking. The necessary upsurge in technology will deliver unprecedented innovation in trading and processing workflows as a result.
The ability for the buy-side to harness any available liquidity across the widest spectrum of instruments will require being able to locate the right sell-side desk across under resourced silo’ed banks, while delivering “best execution” in order to meet the growing number of regulatory reporting requirements. Technology will be the crucial enabler in this process.
The past few years have been challenging for the global economy but it seems as though the derivatives industry sustained more than its share of insults and injuries over the past year or so. Still reeling from the trauma of MF Global in October of 2011, exchange-traded volume went into its first nosedive in decades. Urgent regulatory requirements added intense cost and time pressures to company staffs that were already stretched. A non-clearing FCM, Peregrine Financial, collapsed in scandal. OTC derivatives struggled with complex regulatory mandates and weak volume. Perhaps the only positive for the year was that mergers and acquisitions at both the macro and micro level imply that innovation and creativity are still powerful industry drivers. That in turn suggests that the creative dynamism that has characterized the derivatives industry for so many years still has some innings to go.
Whether it was among traders in Amsterdam, coffee house patrons in London or brokers under a buttonwood tree on the streets of New York, forms of communications have been the basis of exchanging – and exchanges – since the earliest days of trading.
Yet just as the nature of the assets traded – and the trading systems themselves – have changed dramatically since those early days, so, too, have the forms of communications evolved over time. From regulatory filings to media releases, speeches, market openings and newsletters, the universe of exchange-related communication is wider and deeper now than ever before.
And while it’s still about people connecting to other people, they are going about it in a much different way.
Enter social media to the world of exchanges.
Dark trading is trading that occurs without pre-trade transparency. Although dark trading has always been a feature of equity markets, in recent years markets around the world have exhibited substantial growth in the level of dark trading and a change in the manner in which dark trading takes place. New trading venues, known as dark pools, have emerged. These venues systematically match orders without providing any pre-trade transparency and without providing access to this liquidity to the market at large. Dark pools are also typically subject to less regulatory scrutiny than traditional stock exchanges.