May 27 2016

elb2PLY: NASDAQ’s new tech infrastructure is a fascinating development while the welcome new rules for forex at least ought to clear the air.

Plaudits to Chairman Kenneth Farrugia and his Finance Malta staff who produced a magnificent conference yesterday where the local financial centre was showcased and it was my pleasure to participate, discussing FinTech. I’ll be back in Malta soon when Malta SE Chairman Joseph Portelli is hosting the FESE Convention 15/16th June, once again at the excellent Hilton Hotel. Meanwhile for those whose jurisdiction lacks government buy-in – read this and weep – Malta is in the top tier of government engagement with the Prime Minister, Finance Minister and Minister for Digital Engagement all making speeches to the conference – and each was passionately pro market, pro growth and thought provoking on the problems facing regulation. All in all a fascinating day, many thanks to Finance Malta for the invitation.

Meanwhile ICDA have delivered a discount code for their upcoming CyberRisk conference in London, July 20th: Secure a place at GBP 295 with the code YOUNG295.

Public Markets

CME’s Terry Duffy to Appear before Illinois House Revenue Committee to Oppose An FTT

CME

PLY: The gorgon refuses to die and if it lives, it will kill markets. The desperation of Chicago / Illinois to balance the books rightly attracts Terry Duffy’s attention as it is a huge potential threat to CME and a gift to all other markets if locally enacted.

 

CME Granted Recognised Clearing House Status by the Monetary Authority of Singapore

PRNewswire

 

CFTC Grants Registration to 3 Swap Execution Facilities

CFTC

GTX SEF, LLC (GTX) of Bedminster, N.J., TeraExchange, LLC (Tera) of Summit, N.J., and FTSEF LLC (FTSEF) of Great Neck, N.Y. Each had previously operated under temporary registration status.

PLY: That leaves the scores on the doors: just one temporarily registered: Clear Markets North America, Inc. with 2 pending registration, 21 registered and 4 withdrawn. We’ll update our rolling SEF ready reckoner after EI goes out, you can find the data here.

Private Markets

Japan Regulates Virtual Currency After Bitcoin Scandal

AFP

Japanese lawmakers passed a bill late Wednesday stipulating that all “virtual currency” exchanges must be regulated by the country’s FSA.

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX up 2.5%, FTIL up 1.5%.

Technology

Nasdaq Debuts Groundbreaking Nasdaq Financial Framework, Enhancing Operations for Over 100 Market Operators Globally

Nasdaq

The Nasdaq Financial Framework is comprised of three components:

Nasdaq Core: The heart of the framework, which is an open, deterministic, high-speed communication, operations and resiliency layer.  Based on best business practices, the Nasdaq Core is the operational hub driving business applications across the Nasdaq Financial Framework.  

Nasdaq Core Services: A set of optional shared services that empower Nasdaq business applications with additional capabilities beyond the direct connection to the Core for operations, messaging and other core framework services.  Services include Connectivity (supporting ITCH/OUCH/ FIX/FIXML/ISO15022/20022), Data Store (collects data from any source connected to the Core), and Blockchain.

Nasdaq Business Applications: End-to-end portfolio of business functionality supporting the full trade lifecycle. Modular in nature and fully interoperable, Nasdaq Business Applications are seamlessly integrated but decoupled from the Nasdaq Core, making it easy to add new functionality, replace or enhance technology platforms. These applications also enable market operators to boost their competitive edge and meet rapid implementation timelines to launch new markets, models and services.

PLY: Very interesting, an all encompassing framework for IT delivering NASDAQ’s solutions holistically.

 

The Real Threat to Currency Traders

Lionel Laurent – Bloomberg

The biggest change hitting currency markets is technological: computers are replacing human traders. Not just in the spot market, but also in options and swaps, where electronic trading accounted for an estimated 43 to 57% in April, according to Aite Group.

 

ESMA Issues Technical Standards On Indirect Clients

MondoVisione

Products

First Phase Of A Global Code Of Conduct For Currency Markets Published

MondoVisione

The Foreign Exchange Working Group of the BIS released the first phase of a global code of conduct for wholesale foreign exchange markets and principles for adherence to the new standards. The complete global code and the adherence mechanisms, which aim to promote the integrity and effective functioning of fx markets, will be released in May 2017.

FX Code Proposes Limits To Sharing Trade Information

Chris Spink – Reuters

Traders in the fx market will be banned from talking about any specifics on trades but allowed to disclose general “market color” under proposals to improve conduct in the industry.

Don’t Lie, Don’t Cheat, Don’t Start Rumors, Says New FX Code

Patrick Graham – Reuters

Public Statement – Market infrastructure

ICAP

EBS BrokerTec strongly supports the publication of the first phase of the global code of conduct (Global Code) for the wholesale FX market. We welcome this initiative to strengthen the market and have been actively engaged in the development of the Global Code as members of the Market Participants Group (MPG) and through participation in various regional Foreign Exchange Committees (FXCs).

PLY: …& a lot more folks agree with said report…

Global FX Code May Help Volumes Rise Again: CLS Chief

Patrick Graham – Reuters

 

CFTC Approves Supplement to Position Limits Proposal to Permit Exchanges to Recognize Non-enumerated Bona Fide Hedges

CFTC

Statement Of CFTC Chairman Timothy Massad On Supplemental Proposal On Position Limits For Derivatives

MondoVisione

Statement Of CFTC Commissioner J. Christopher Giancarlo Regarding Supplemental Proposal On Position Limits For Derivatives: Certain Exemptions & Guidance

MondoVisione

 

U.S. Watchdog To Review Cattle Pricing, High-Speed Trading

Tom Polansek – Reuters

The U.S. Government Accountability Office (GAO) has accepted a request from the Senate Judiciary Committee to launch a review of cattle pricing, including the impact of HFT on futures, after ranchers complained about a sharp price drop last year.

MTS Expands Data Coverage For European Government Bond Market

LSE

 

EEX: German Emissions Auction Contract Extended To 2018

MondoVisione

Indexes

STOXX Extends Suite Of Smart-Beta Indices

MondoVisione

Career Paths

Instinet announced that Richard Parsons will become CEO of Instinet Europe. Parsons currently serves as Instinet Europe’s Head of Sales & Trading. He will succeed current CEO Adam Toms, who is stepping down to pursue other interests.

Pirum Systems, a leading provider of post-trade market infrastructure technology for the securities finance industry, announced that Ben Challice will be joining the senior management team as COO.

Financial Calendar

27.05 – Record date TMX $0.40 dividend

New! 07-08.06 – FIA IDX

All forthcoming exchange / investment related events are now listed in our Events page.

Other stories

European Parliament: MEPs Call For Virtual Currency Watchdog To Combat Money Laundering & Terrorism

MondoVisione

PLY: They didn’t call for pre-emptive regulation but the usual nanny stating of the precautionary principle obsessed EU allows for typical grandstanding…before the MEPs went off and collected their cash allowances for the day, that is. As things stand, it’s the folding paper bearer bonds issued by the QE obsessed that fund terrorism, but at least headlines justify expenses in the MEP world..

 

IROC Publishes New Three-Year Strategic Plan

MondoVisione

 

 

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