CBOE Holdings is negotiating to buy Bats Global Markets to expand futures and options trading to include equities, exchange-traded funds and foreign exchange, sources say. "If both parties are motivated, they could successfully merge because there are plenty of areas where they don't conflict or overlap," said Sandler O'Neill + Partners analyst Rich Repetto.
Brexit's tempering of London's status as a global financial center might open the door for Euronext to tap Chinese businesses, CEO Stephane Boujnah says. Chinese investors will need "the right gateway for the European market" post-Brexit, Boujnah says.
The Bank of England will revise its post-Brexit forecasts upward if the economy continues to show signs of strength, policymaker Kristin Forbes says. "I've worried a bit in our forecast that we control for many of the measures that simultaneously control for uncertainty, and then we put in uncertainty effects, so we're putting them in twice," she said.
UK Prime Minister Theresa May has rebuffed Foreign Minister Boris Johnson's claim that Britain will start Brexit negotiations by early 2017. May has told ministers to avoid participating in a "running commentary" on the strategy or timing of negotiations.
Without knowing how Brexit negotiations will turn out, London banks are preparing for the worst possible outcome of losing access to the single market. Relocating to the EU, however, carries its own costs and difficulties, including potential consequences for euro liquidity. "Forcibly moving trading, clearing of euro-denominated derivatives into the eurozone is likely to fragment liquidity by currency, with a detrimental effect to EU end users and wholesale market counterparties," said Simon Puleston Jones of FIA.
ASX has released an initial report on Monday's outage that says a "hardware malfunction triggered a complete database failover to [a backup data center] and not all parts of ASX Trade successfully connected" to the database. "The hardware malfunction ASX experienced was complex and unprecedented," CEO Dominic Stevens said.
One month til Expo 2016 – join us! FIA is counting down the days until Expo 2016, taking place October 18-20 in Chicago. It's your source for breaking news, valuable insights and innovative solutions for the listed derivatives and cleared swaps community. Connect with business leaders, industry stakeholders and top regulators. Register by Friday, September 23 & save!
SIX Securities Services has partnered with Digital Asset Holdings to work on distributed-ledger technology for Swiss financial markets. Back-office functions such as post-trade settlement have been targeted for blockchain innovations.
It's the last chance to register for and get up to speed on latest developments affecting Australian markets and to join industry peers at our third FIA Forum in Sydney on Sept. 29. FIA would like to invite you and your colleagues to an afternoon discussion, followed by a networking reception. Learn more and register!
This single-day course provides a holistic and detailed view of trade execution across exchange-traded equities, futures and options, as well as OTC markets. It presents the latest technologies adopted by market participants and regulators and the impact of rapidly evolving regulations in the US and the EU. The discussion of operational, technical and regulatory aspects of trade execution is integrated with the analysis of relevant litigation examples involving government agencies, trading platforms, investment funds, brokers, trading firms and algorithm designers. The seminar will be held from 9 a.m. to 5 p.m. Oct. 31 in London. Enroll.