Solutions
By Anthony Masso, CEO, Succession Systems – The SEC Enforcement Order against Knight Capital calls for Brokers to institute fully automated ‘lock downs’, prohibiting orders from entering the market if risk thresholds are reached. Called ‘kill switches’, are you aware of the conditions that could trigger a lock down and how it would affect your orders and position?
Implementing ‘reasonable’ trading controls
The first SEC enforcement action of the Market Access Rule 15c3-5, was issued last month against Knight Capital. The rule, also known as the Naked Access Rule, was adopted in 2010. It is written broadly, asking
The European Securities and Markets Authority (ESMA) has approved ICE Trade Vault Europe as a trade repository for the reporting of swaps and futures trade data to meet requirements of the European Market Infrastructure Regulation (EMIR).
ICE Trade Vault Europe was approved to collect trade data in the commodities, credit, interest rate and equity derivatives asset classes, and joins ICE Trade Vault US as well as planned ICE repository services in Asia and Australia.
Unique to EMIR, European trade data reporting also will encompass exchange-traded derivatives (ETDs).
“We appreciate ESMA’s detailed and comprehensive application process for trade repository
Financial information services company Markit has been selected by members of the Asia Securities Industry and Financial Markets Association (ASIFMA) to provide an online solution to facilitate compliance with Hong Kong’s Securities and Futures Commission’s (SFC) new electronic trading rules.
The new rules take effect on 1 January 2014 and require Hong Kong-licensed brokers to attest that their electronic trading systems are properly supervised, tested and risk managed.
The rules also require customers to acknowledge that they understand the algorithms and other technologies used by their brokers.
Markit will use its Counterparty Manager technology to provide a solution
CME Group has received approval from the European Securities and Markets Authority (ESMA) as a trade repository (TR) under the European Market Infrastructure Regulation (EMIR).
CME Group's multi-asset European (EU) trade repository, based in London, will accept submission of trades across all mandated derivative asset classes namely interest rates, FX, credit, commodities and equities.
It will accept cleared and non-cleared, bilaterally settled, over the counter and exchange-traded derivatives executed on venues anywhere in the world. The reported data will be made available to the reporting entity itself, as well as relevant regulators, supervisors and authorities.
"Trade reporting of
BofA Merrill Lynch and Goldman Sachs have become clearing members of EurexOTC Clear for Interest Rate Swaps (IRS).
By joining this new central counterparty (CCP) for over-the-counter (OTC) derivatives, the clearing members and their clients will be able to expand their preparations for the impending OTC clearing obligations in Europe.
Brooks Stevens, managing director, EMEA head of futures & options and OTC clearing at BofA Merrill Lynch says: “We are committed to offering a market leading clearing solution. EurexOTC Clear provides an additional choice to take advantage of the efficiencies clearing brings, particularly when mandated clearing of OTC products
Chicago Board Options Exchange has created a new benchmark volatility index – the CBOE Mid-Term Volatility Index (VXMT).
The index is a measure of the expected volatility of the S&P 500 Index over a six-month time horizon.
The index is calculated using the CBOE Volatility Index (VIX Index) methodology, applied to S&P 500 Index (SPX) options that expire six to nine months in the future.
As investors become more sophisticated in their understanding of volatility and their use of volatility products, the VXMT index offers a "macro" view of market risk, a view driven more by the perceived
Traiana, a provider of pre-trade risk and post-trade processing solutions, has launched a Unique Trade Identifier (UTI) management solution using the Harmony network.
As each jurisdiction introduces its own specific trade reporting requirements and UTI methodology, the management and sharing of trade identifiers with counterparts is becoming more complex.
The Traiana UTI management service facilitates the exchange of UTIs between counterparts, thereby allowing both parties to a trade to report using a common trade identifier, to the same or different trade repositories.
Reporting using the same trade identifier is the responsibility of both sides of the trade and
Aquis Exchange, the pan-European equities trading exchange, has completed its first day of live operations, executing trades in all three of the markets available at launch.
Aquis Exchange, which has introduced subscription pricing to European equities trading, saw several members participate on launch day and trades were executed in a range of blue chip stocks from the UK, France and the Netherlands.
Aquis Exchange chief executive Alasdair Haynes (pictured) says: “It has taken us 13 months from announcing the concept of Aquis Exchange to going live. We are very pleased to have built a highly performant platform, gained regulatory
Chicago Board Options Exchange (CBOE) is to list options on the CBOE Russell 2000 Volatility Index (RVX) beginning 3 December.
The CBOE Russell 2000 Volatility Index (RVX Index) is an up-to-the-minute market estimate of the expected 30-day volatility of the Russell 2000 Index (RUT), calculated using real-time bid/ask quotes of RUT options that are listed on CBOE.
The calculation of the RVX Index is based on the CBOE Volatility Index (VIX Index) methodology applied to RUT options, the third most actively traded index option at CBOE in the first half of 2013.
RUT is a performance of small-capitalisation
The National Securities Clearing Corporation (NSCC) has filed a proposed rule change with the Securities and Exchange Commission (SEC) to provide its members with a new tool designed to serve as an early warning system that alerts those firms to trading activity that is nearing defined trading limits.
Subject to regulatory approval of the filing, the tool will enable firms to effectively manage potential risk exposure for both their own accounts and their clients’ accounts for the trading in equities, corporate and municipal bonds, and unit investment trust instruments.
“DTCC continues to work in collaboration with the industry to
