Article reports that when CME launches its new derivatives exchange in London it will make currencies the first available product. This will make CME the first exchange to provide exchange traded currency products in Europe. David Clark is quoted in the article saying, “
Read more
Article reports on the long-awaited consultation on so-called "living wills" for financial market infrastructure, published by the International Organization of Securities Commissions, on 31 July 2012. Commenting on the consultation, Alex McDonald, chief executive, Wholesale Markets Brokers’ Association says the process of re-regulating the financial system can only start on the foundations of resolution and recovery of financial market entities. Financial market infrastructures are fast becoming the most important of these entities due to concentration of risk into clearing houses and central securities depositories as a result of the capital, credit and infrastructure re-regulation of the post-trade environment.
Read more
Article reports that ISDA has added to the ongoing debate over market legislation being drawn up by the European Commission, with two letters that raise concerns over the implementation of rules that will affect the trading of derivatives.
Read more
Alex McDonald, CEO, Wholesale Markets Brokers’ Association, asks how far along is Europe on redefining trade execution onto appropriate and organised venues with only six months to go before the G20 deadline.
Read more
Article reports that the fall in FX spot volumes revealed in this week’s semi-annual survey data has been driven by low volatility and new controls on HFT behaviour. Commenting on the decline in volumes, Alex McDonald, CEO, WMBA, does not believe that HFT-related spot volumes will increase again due to the restructuring of the platforms which makes it harder for HFTs to outperform.
Read more
Article reports that risk experts have warned that clearing houses must put their own financial resources at risk to prevent moral hazard. Commenting on the issue, Alex McDonald, CEO, WMBA says: “Many clearing houses have skin in the game to the extent that they are often owned by their members who contribute to the default pool. The real question is whether the clearing house management company ought to put its own resources at risk, the answer to which is unquestionably yes.”
Read more
Article reports that banking lobby groups are warning European policy makers that ambiguities in the drafting of new swaps rules risk may trigger monopolistic behaviour from trading venues and clearers. Commenting on the proposals, Alex McDonald, CEO, WMBA, says that ESMA only looked at the ability of CCPs to access trading venues, rather than the other half of the EMIR article which addresses fair and open venue access for sending matched trades into CCPs.
Read more
