NO 246 – AUGUST 2013

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BM&FBOVESPA approves sustainability policy

BM&FBOVESPA’s Board of Directors has approved the company’s sustainability policy. The policy is structured into four pillars for action: market, environmental, social, and corporate governance, covering both internal management and relations with the company’s various stakeholder groups.

CBOE Futures Exchange’s to expand trading hours for volatility index futures

CBOE Futures Exchange announced that the first phase of its plan to expand CBOE Volatility Index futures trading hours will begin in late September 2013, with the second phase to begin in the weeks after. The first phase of the expanded trading hours initiative is designed to meet demand from US customers for a post-settlement trading period by adding a 45-minute trading session to the current trading hours for VIX futures. The second phase will allow European-based customers to trade VIX futures during their local trading hours by beginning the current trading session five hours earlier than its current opening time.

Deutsche Börse enhances block trading of German equities

On 29 July 2013, Deutsche Börse launched a new block trading service on Xetra MidPoint and named Liquidnet, the global institutional trading network as the block agent for this new service. The new block trading model provides a platform where more than 240 Xetra members will have the opportunity to trade directly with Liquidnet’s network of more than 700 of the world’s leading asset management firms safely and efficiently with minimal market impact and maximum price improvement. Xetra MidPoint’s block agent model will combine the liquidity of multiple sources, increasing the probability that large orders will be executed at midpoint.

ICE to launch CDS trading platform

During the third quarter of this year, IntercontinentalExchange is expected to launch ICE Swap Trade, ICE’s credit default swap execution facility. It will offer index and single name CDS across North American and European corporates and sovereigns debts. Functionality will include request for quote and central limit order book. Several leading market participants will support the development of markets on this new platform.

ISE launches second options exchange

On 5 August 2013, the International Securities Exchange launched ISE Gemini, ISE’s second options exchange. It started trading with six symbols, and plans to add additional products over the next several weeks until it has ultimately listed all of the most active options classes. The new exchange offers maker-taker pricing combined with ISE’s patented pro-rata and customer priority market structure.

JPX - Osaka Securities Exchange launches night session liquidity improvement program

JPX - Osaka Securities Exchange has implemented the liquidity improvement program for trading of Nikkei 225 options in night session for the period from August 2013 to February 2014. OSE has asked for the cooperation of transaction participants in providing liquidity during the night session (from 20:00 to 3:00 the following day).

Johannesburg Stock Exchange launches online virtual trader

In a bid to grow public participation, the Johannesburg Stock Exchange has launched an online trading simulator which will allow aspirant traders to test a range of JSE products, in a risk-free environment. This simulated trading platform, called the JSE Virtual Trader, is hosted on the JSE website. Registered users are able to trade any of the JSE’s suite of products, on a real-time basis. Traders can test their investment strategies and track a virtual portfolio created from any the JSE asset classes.

Johannesburg Stock Exchange moves ahead with co-location center

The Johannesburg Stock Exchange is moving ahead with the construction of its co-location center to be completed in the first half of 2014. Located at the Exchange, it will offer clients access to the JSE at unprecedented speeds.

Moscow Exchange introduces new market data service for derivatives traders

Starting from 23 July 2013, Moscow Exchange launched a new ultra-low latency data feed, available to co-location users connected to the derivatives market through the data center. The new service not only allows clients to receive orders and trading data 30 times faster (once per millisecond) but it also enables loading the full anonymous order log 6 times faster (once per 5 milliseconds) which is the main advantage compared to remote connections through dedicated channels or over the internet.

Moscow Exchange launches securities incentive program

On 1 August 2013, Moscow Exchange launched an incentive program for its securities market trading members operating in the mode T+2. The program is aimed at boosting securities liquidity and enhancing broker activity. The program will be valid until the end of 2013.

Singapore Exchange launches “Born to Trade” initiative

The Singapore Exchange launched its “Born to Trade” initiative to support the futures trading profession and expand its community. It is part of SGX’s commitment to attract new derivatives traders to the market, and includes several features such a new micro-website for trading professionals and potential traders to interact and exchange trading stories.

Singapore Exchange launches long dated orders for securities

The Singapore Exchange has launched long dated order types, allowing investors to retain buy or sell orders for longer than the usual one day. With long dated orders, investors can specify the number of days they want their orders to stay active. Orders can be kept active for a maximum 30 days unless they are completed or cancelled. This compares with the usual practice of un-executed orders automatically expiring at the end of the trading day.

Singapore Exchange launches trading in RMB

On 5 August 2013, the Singapore Exchange launched share trading in Chinese Renminbi on its dual currency trading platform of the first company to have its shares traded in RMB.