Solutions
A steady rise in transaction frequency characterised the last quarter of 2011, a year that Hedgebay believes could be seen as significant in the history of the secondary market.
The recent volume has seen 2011 trading levels surpass those of 2010, and alongside improving depth and breadth in the market place, both in the number of participants and types of investors, points to the increasing popularity of secondary trading.
With an increasing number of participants using the market to both access high performing hedge funds and remove illiquid assets from their portfolios, pricing remains volatile. The full breadth of
The Commodity Futures Trading Commission (CFTC) has issued a final rule regarding changes to Part 4 of the Commission’s regulations involving registration and compliance obligations for commodity pool operators (CPO) and commodity trading advisors (CTA).
The rule increases transparency to the CFTC of CPOs and CTAs acting in the futures and swaps markets and enhances protections for their customers. The rule passed 4-1, with Chairman Gary Gensler (pictured), and Commissioners Chilton, O’Malia and Wetjen voting in favour and Commissioner Sommers voting against the final rule. The rule, which was first proposed on January 26, 2011, will be effective 60 days after
Empaxis, a provider of operational services and support for asset managers and prime brokerage firms running Advent applications, has launched its Overnight Process Monitoring (OPM) system for hedge funds and other investment advisory firms.
Empaxis’ system is specifically designed to actively monitor and validate all processes for firms that are running Axys, APX and Geneva applications as well as other systems. It ensures that all systems are diligently monitored overnight, validated as successful or unsuccessful, proactively worked on if they fail, and seamlessly handed off directly to clients or third-party vendors before the start of the following business day.
Eliminating
Eurex is planning to launch a completely new trading system. Subject to the required legal approvals, first roll-out is currently scheduled for December 2012, followed by a migration phase, where products will be moved in a stepwise approach from the current to the new trading system.
It will be developed internally and based on Deutsche Börse Group’s proprietary global trading architecture, which is already in use at the International Securities Exchange (ISE).
Participants of Eurex will benefit from state-of-the-art technology which is built on the four pillars performance, efficiency, capacity, and reliability. The new technology will meet user needs by
Virogen Inc, a holding company specialising in data security and encryption technology, is in discussions with a European hedge fund to secure long term financing for the commercialisation of its products and services worldwide.
Negotiations are ongoing in the development of a term sheet; however, the general parameters of the financing package have been discussed and agreed to in principal by both parties. Virogen will use the proceeds from this financing to assist the company in its worldwide expansion and acquisition of contracts that the company believes can generate millions in revenue. Management believes that multinational corporations and governments worldwide
The CFTC has voted to establish a Subcommittee on Automated and High Frequency Trading tasked with developing recommendations regarding the definition of high frequency trading (“HFT”) in the context of the larger universe of automated trading.
This definition of HFT is anticipated to serve as an initial step towards assessing the presence and impact of HFT in CFTC regulated markets for consideration of appropriate regulatory and policy responses.
Since its inaugural meeting, the TAC has focused on one of the most important technological evolutions in trading behaviour: automated trading. This shift in terms of speed and volume has challenged the exchanges’
NYSE Euronext (NYX) has reported Global derivatives average daily volume (ADV) of 7.5 million contracts in January 2012 – a decrease of 17.3% versus the prior year, with European Derivatives declining 31.3% and US equity options decreasing 4.1%.
European cash trading ADV meanwhile, decreased 14.6% and US cash trading ADV decreased 23.5% from January 2011 levels.
Excluding Bclear, NYSE Liffe’s trade administration and clearing service for OTC products, European derivatives products ADV decreased 28.3% compared to January 2011, but increased 21.6% from December 2011.
NYSE Euronext US equity options ADV of 4.2 million contracts in January 2012 decreased 4.1% compared
The London Metal Exchange has begun publishing live forward prices for all metals traded in the last Ring session of the day (the afternoon “Kerb”), a refinement that will add further transparency to the procedures used to establish the Closing Prices.
The forward curve is available for the key prompt dates and displayed on a daily basis from 16.15 by LME licensed data vendors and on the electronic wallboards in the Ring dealing area. As the prices for the forward curve change during the Kerb session they will be amended and displayed accordingly.
“The live forward curve is the
Singapore Exchange (SGX) saw year-on-year growth in its commodities, clearing and fixed income activities in January 2012.
Securities daily average value was notably 47% higher at SGD1.3 billion in January compared to a seasonally quiet December 2011, but down 27% year-on-year.
Exchange traded fund turnover declined 36% to SGD509 million.
Structured warrants volume increased 67% year-on-year to 3.5 billion units.
Derivatives daily average volume was up 10% at 265,590 contracts compared to December 2011, and up 2% year-on-year.
On a month-on-month basis, China A50 futures trading increased 18% to 403,621 contracts; Nikkei 225 futures trading decreased 12% to 1.7 million
MarketAxess has released its first year-end review of trading activity in the US corporate bond market for 2011. The analysis was conducted by MarketAxess Research.
The analysis is based on FINRA TRACE and other publicly-disseminated data, as well as proprietary trading data from MarketAxess from January through December 2011. MarketAxess Research uses its own proprietary approach to analyze price movements and liquidity trends.
Rick McVey, Chairman and CEO of MarketAxess, says: “Following a period of generally favourable conditions in the credit markets in 2010 and early 2011, the second half of 2011 saw headwinds develop, with widening credit spreads
