The Chicago Way
Earlier this week, I was in Chicago catching up with friends and contacts in the futures industry and getting reacquainted with the cool breeze off Lake Michigan. Everyone I met in the Windy City seemed eager to attend the Futures Industry Association's (FIA's) annual meeting in Boca Raton, Fla., later this month.
I'm sure a lot of the discussion will be about the Dodd–Frank Act, margining requirements and other issues. However, the biggest gossip sessions will be on how Chicago Mercantile Exchange (CME) operator CME Group reacts to the planned acquisition of NYSE Euronext by Deutsche Börse. If it does indeed go ahead—and it’s far from a done deal at this point—it would mark the German futures exchange operator's second attempt to crack the US markets. Its first try, Eurex US, basically flamed out after concentrated resistance from the local markets.
This past week we have seen another salvo in this CME–Deutsche Börse competition as CME officials announced at the start of the week the creation of a new clearing membership class, the financial instrument clearing membership (FICM). It will provide margin offsets up to 65 percent to qualified firms that trade US Treasury securities and interest rate futures traded on the CME, according to exchange officials.
This came just a couple of days before NYSE Liffe US announced the launch of its New York Portfolio Clearing (NYPC), a joint clearing venture with the Depository Trust & Clearing Corp. (DTCC), which will clear Eurodollar futures and US Treasury products in the coming weeks.
As Deutsche Börse's purchase of NYSE Euronext comes closer to its finalization, we can only expect to see more blow-for-blow announcements happening among these exchanges.
Share your thoughts on the topic with me at rob.daly@incisivemedia.com.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Trading Tech
Banks fret over vendor contracts as Dora deadline looms
Thousands of vendor contracts will need repapering to comply with EU’s new digital resilience rules
Where have all the exchange platform providers gone?
The IMD Wrap: Running an exchange is a profitable business. The margins on market data sales alone can be staggering. And since every exchange needs a reliable and efficient exchange technology stack, Max asks why more vendors aren’t diving into this space.
This Week: Trading Technologies completes ANS deal; State Street; Equinix; and more
A summary of the latest financial technology news.
Interactive Brokers looks beyond US borders for growth opportunities
As retail trading has grown in volume and importance, Interactive Brokers and others are expanding international offerings and marketing abroad.
JP Morgan’s goal of STP in loans materializes on Versana’s platform
The accomplishment highlights the budding digitization of private credit, though it’s still a long road ahead.
As data volumes explode, expect more outages
Waters Wrap: At least for those unprepared—though preparation is no easy task—says Anthony.
This Week: ICE Bonds and MarketAxess plan to connect liquidity networks, TS Imagine, Bloomberg, and more
A summary of the latest financial technology news.
Industry associations say ECB cloud guidelines clash with EU’s Dora
Responses from industry participants on the European Central Bank’s guidelines are expected in the coming weeks.