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November 30, 2012
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  Top Stories 
  • CME ends legal challenge against CFTC; DTCC questions proposal
    CME Group has dropped its challenge to the Commodity Futures Trading Commission's proposed rules on reporting trade data, but Depository Trust and Clearing is voicing concerns about the agency's proposed change to a swaps-data reporting rule. The move would make it easier for CME to keep the swaps data of its customers to itself rather than sending it to a third-party swaps-data repository. "This action is inconsistent with the Commission's previous actions, and will cause market participants to question the finality of any Commission rule or interpretation," the DTCC said. Bloomberg Businessweek (11/29), Reuters (11/29), Financial Times (tiered subscription model) (11/29), Jones Newswires (11/29) LinkedInFacebookTwitterEmail this Story
  • Bill to merge SEC and CFTC is introduced by Frank and Capuano
    Reps. Barney Frank and Michael Capuano have introduced legislation that would combine the Commodity Futures Trading Commission with the Securities and Exchange Commission. Republican House members recently suggested such a move would help prevent regulatory lapses, but the proposal faces significant obstacles. "The existence of a separate SEC and CFTC is the single largest structural defect in our regulatory system. Unfortunately, this is deeply rooted in major cultural, economic and political factors in America," said Frank, who is retiring from Congress. Reuters (11/29), The Hill/On The Money blog (11/29), AdvisorOne (11/29) LinkedInFacebookTwitterEmail this Story
  Regulatory Roundup 
  • Chinese official criticizes U.S. over FATCA
    The U.S. has erred in taking a unilateral approach to thwart tax evaders with the Foreign Account Tax Compliance Act, People's Bank of China executive Liu Xiangmin says. Liu said FATCA doesn't respect the sovereignty of other nations. "It creates unreasonable costs for foreign financial institutions and directly contravenes many countries' privacy and data-protection laws," he said. (subscription required) (11/28), Reuters (11/28) LinkedInFacebookTwitterEmail this Story
  • European Commission and Parliament are at odds over OTFs
    The European Parliament and the European Commission disagree on the scope of organized trading facilities, which are part of the revised Markets in Financial Instruments Directive. The commission argues that OTFs should include equities traded on broker-crossing networks, but Parliament recommends that OTFs be used only for non-equity instruments. The Trade News (U.K.) (11/29) LinkedInFacebookTwitterEmail this Story
  • Other News
  Industry Developments 
  • EU court blocks request for ECB files on how Greece hid debt
    The EU General Court, rejecting a request by Bloomberg News, is allowing the European Central Bank to keep private documents that show how Greece used derivatives to conceal debt. "The courts are bending the rules to legalize the policies of the European institutions and help stabilize the region," said Georg Erber of the German Institute for Economic Research. "It reveals implicitly that the EU was well-informed about what was going on and didn't take steps to avert the crisis." Bloomberg (11/29) LinkedInFacebookTwitterEmail this Story
  • Chi-X mulls a move into derivatives trading in Australia
    Chi-X reportedly is considering delving into the derivatives market in Australia in a move that would open a new competitive front for the exchange against the Australian Securities Exchange. Regulators are considering whether to introduce competition in clearing services, prompting the idea. The Australian (tiered subscription model) (11/30) LinkedInFacebookTwitterEmail this Story
  • Other News
  Electronic Trading News 
  • Swedish exchange glitch is latest bourse tech issue
    Nasdaq OMX Group halted trading in Swedish derivatives for four hours due to a computer error that resulted in an order seeking to buy futures contracts on the nation's stocks valued at 131 times its gross domestic product. "Our system misinterpreted a certain order category and communicated a value that was way too high into the book," said Nasdaq OMX spokesman Carl Norell. He noted that this wasn't a "fat finger" incident. The glitch was the latest in a series of technical problems experienced by exchanges in recent months. Bloomberg Businessweek (11/29) LinkedInFacebookTwitterEmail this Story
  Commodities and Managed Futures 
  • CME will keep pit trading for grains, CEO says
    CME Group's open-outcry trading pits will remain open as long as the liquidity is there, CEO Phupinder Gill says, adding that no changes are planned in new end-of-day price-settlement rules for grains in response to a lawsuit that he described as having no merit. Traders say the rules are harming volume in the trading pits. Chicago Tribune/Reuters (tiered subscription model) (11/28) LinkedInFacebookTwitterEmail this Story
  • Other News
The robbed that smiles, steals something from the thief."
--William Shakespeare,
British playwright

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