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- European lawmakers postpone key vote on MiFID II
The European Parliament's Economic and Monetary Affairs Committee delayed an upcoming vote on a review of the Markets in Financial Instruments Directive. The vote had been scheduled for Tuesday but was pushed back to at least September. "This delay is not wholly surprising and reflects the amount of issues in the MiFID text that are contentious and remain under discussion," said Rosa Armesto, head of economics, statistics and fixed income at the Federation of European Securities Commission. Financial News Online (U.K.) (subscription required)
(7/6), Financial Times (tiered subscription model)
(7/5)     
 | Eurex Exchange’s new trading architecture: More choices, greater performance, Eurex reliability. Technology that delivers a world of opportunity. Discover more from Eurex Exchange. |
| Regulatory Roundup |  |  |
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- U.K. lawmakers agree to set up inquiry about Libor issues
British lawmakers approved the establishment of a joint committee to investigate issues related to the London Interbank Offered Rate. Parliament's Treasury Committee said Paul Tucker, deputy governor of the Bank of England, and Barclays' acting CEO, Marcus Agius, will appear before the committee next week. Meanwhile, the U.K. Financial Services Authority is facing scrutiny about whether it missed warnings signs of Libor problems. The Wall Street Journal
(7/5), The Guardian (London)
(7/5), Reuters
(7/5)
- BoE again cites risks with collateral swaps and ETFs
The Bank of England has again warned about the risks related to synthetic exchange-traded funds and collateral swaps. Officials at the central bank say they're concerned about the shrinking supply of high-quality collateral necessary to underpin synthetic ETFs. "New risks may arise as market participants attempt to manage collateral more tightly -- for example, by making greater use of innovative structures to save on their holdings of high quality collateral," the central bank's latest Financial Stability Report says. Financial News Online (U.K.) (subscription required)
(7/5)
| Industry Developments | | |
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- Listed-options volume in U.S. is on course for an annual decline
The volume of U.S. listed options is on pace to record an annual drop in activity for the first time in a decade. Figures for the first half of 2012 indicate volume will be down 6% from 2011. However, technological advancements and other factors could prompt future growth, analysts say. "Options trading volumes may be down across the industry but the buy side continues to remain captivated with the potential of using options in their strategies," said Andy Nybo, head of derivatives at Tabb Group. International Financing Review (free content)
(7/5)
- Proposed merger of Japanese exchanges faces opposition
Overseas funds are voicing opposition about a proposed merger of two major stock exchanges in Japan, raising questions about whether the tie-up will succeed. Japan's Fair Trade Commission has given the green light for the Osaka Securities Exchange and the Tokyo Stock Exchange to merge. Japan Exchange Group, as the merged entity would be called, would combine the TSE's cash-equity strength with the OSE's dominant position in derivatives. Reuters
(7/5)
- SGX says swaps clearing is up from a year ago
Singapore Exchange says its SGX AsiaClear platform cleared 2,102 energy swaps contracts in May and 1,893 contracts in June. The figures are significantly higher than those from a year ago. The bourse's daily average volume for derivatives dropped 2% from May to June, although it was up 12% year over year. Separately, SGX says it will list, quote, trade, clear and settle renminbi-denominated securities. Platts
(7/5), Financial Times (tiered subscription model)
(7/6)
| Electronic Trading News | | |
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- Baltic Exchange says it won't give up on derivatives platform
The Baltic Exchange launched a central electronic-trading platform for freight forward agreements a year ago, and exchange officials say that despite the platform losing money, they are confident it will grow. "We remain optimistic that Baltex will be successful and is an opportunity to serve our members well while potentially creating substantial shareholder value over time," said Mark Jackson, outgoing chairman of the exchange. Reuters
(7/5)
| Commodities and Managed Futures | | |
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- JPMorgan faces pressure over electricity-market concerns
U.S. District Judge Colleen Kollar-Kotelly has ordered JPMorgan Chase to explain why the bank shouldn't be forced to turn over internal e-mails regarding claims that it might have manipulated electricity markets. The Federal Energy Regulatory Commission is asking the court to require JPMorgan to show why it shouldn't have to comply with a subpoena as part of a probe into energy trading. Reuters
(7/5)
- LME's iron-ore contract faces an uphill battle
The London Metal Exchange plans to launch an iron-ore contract, but the bourse's handling of steel-billet futures could hinder the new contract's success. The LME's contract will compete against Singapore Exchange's iron-ore swaps. SGX accounts for nearly 90% of the global iron-ore derivatives trade. Reuters
(7/5)
| FIA News | | |
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- Dodd-Frank Briefing in Houston on July 11
The FIA will hold a one-day workshop on the Dodd-Frank Act’s impact on energy and agricultural companies. The workshop will include a discussion of the recently finalized swap-dealer definition as well as insights on how several energy companies are implementing the new regulatory requirements. Click here for more information about speakers and topics.
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