Europe's derivatives exchanges form corporate actions committee | Ex-CFTC chair Giancarlo raises concerns over HKEx-LSE deal | Survey: London fintechs unprepared for no-deal Brexit
September 13, 2019
FIA SmartBrief
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Europe's derivatives exchanges form corporate actions committee
The European Corporate Actions Committee has been formed by Europe's major derivatives exchanges to better align their treatment of corporate actions, such as mergers and takeovers, in order to prevent market destabilization. Eurex Deutschland, Euronext, ICE Futures Europe, Nasdaq Stockholm, Borsa Italiana and BME Group will be represented on the ECAC.
Futures & Options World (subscription required) (9/12) 
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Ex-CFTC chair Giancarlo raises concerns over HKEx-LSE deal
Former Commodity Futures Trading Commission chair J. Christopher Giancarlo says the possible acquisition of the London Stock Exchange Group by Hong Kong Exchanges and Clearing raises concerns in Washington with regards to derivatives clearing. "A deal like this would have to be carefully thought through and considered by US authorities," says Giancarlo.
Financial News (UK) (subscription required) (9/12) 
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Survey: London fintechs unprepared for no-deal Brexit
Fewer than 25% of London's fintech firms could manage the fallout of the UK leaving the EU at the end of October without a deal, a survey by trade body Innovate Finance finds. About two-thirds of respondents feel Brexit offers no clear advantages for their business.
Financial News (UK) (subscription required) (9/12) 
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Regulatory Roundup
France plans to make crypto-to-crypto trades tax-exempt
France plans to tax cryptocurrency gains when they are converted into "traditional" currencies, but not tax crypto-to-crypto trades, economy minister Bruno Le Maire says. "We believe that the moment the gains are converted into traditional money is the right time to assess tax," says Le Maire.
Cointelegraph (9/12),  Bloomberg Tax (subscription required) (9/12) 
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Industry Developments
Aviva exec keeps a watchful eye on clearing issues
Barry Hadingham, Aviva Investors' head of derivatives and counterparty risk, talks with MarketVoice about some of the current challenges the UK asset manager faces in both the cleared and uncleared derivatives markets, and explains why his firm may opt to move its clearing to the US after Brexit.
MarketVoice (9/12) 
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LCH to begin €STR swap clearing on Oct. 21
Clearing of swaps linked to the European Central Bank's new euro overnight risk-free rate will start on LCH from Oct. 21. LCH says it plans to provide participants with €STR swaps for up to 51 years.
Risk (subscription required) (9/12) 
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CME looks to double bitcoin futures position limit for traders
CME Group is seeking to increase the monthly position limit for bitcoin futures from 1,000 contracts per spot month to 2,000, the exchange group said in a letter to the Commodity Futures Trading Commission. CME said the change is warranted "based on the significant growth and acceptance of our financially-settled CME Bitcoin futures markets, as well as our analysis of the underlying bitcoin market."
CoinDesk (UK) (9/12) 
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Binance Futures platform goes live today with trading fee discount
Cryptocurrency exchange Binance's futures trading platform, Binance Futures, will officially launch today. The firm has begun offering a 50% discount fee for all users for the first three months.
The Block (9/12) 
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Electronic Trading News
Panelists: Buy-side reluctant to let algos fully control execution
Some buy-side traders remain reluctant to completely cede control of execution orders to algorithms and prefer to take control of order "mid-flight," panelists at an industry conference said. Doing so, however, can hinder the data used to analyze their trades, they said.
The Trade (UK) (9/13) 
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Commodities and Managed Futures
Cargill to sell its asset management business
Cargill has agreed to sell its 100% stake in asset management business CarVal Investors to a group of 17 CarVal employees for an undisclosed price. The deal is expected to close in October.
Reuters (9/12),  Financial Times (subscription required) (9/12) 
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FIA News
Join us in Frankfurt on 24 September!
Assessing the impact of Brexit, reviewing the effectiveness of regulations such as MiFID II/MiFIR and EMIR, and taking steps to address new challenges such as the demand for sustainable finance and the regulation of fintech and crypto assets have become all-important themes for market participants. Join FIA in Frankfurt on Sept. 24 for a one-day forum, which will review existing regulations, assess the impact of new rules on the listed and cleared derivatives business in Europe, and consider how international oversight will impact cross-border trading and clearing of these products. Register now!
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