Asset Classes

The Tokyo Stock Exchange has selected software application provider Calypso Technology to supply the platform for its new credit default swap clearing service.

Exchange group Nasdaq OMX has launched a new trading platform for its Nordic equity and fixed income derivatives markets, based on its Genium INET technology.

New analysis from Nomura has attempted to shed light on the level of off-exchange trading in Europe, with the Japanese investment bank claiming that less than 10% of equity trading in the region should be classified as over-the-counter.

A merger agreement has been signed by the Australian Securities Exchange (ASX) and the Singapore Exchange (SGX) to create the world's fifth largest exchange group, with a combined market capitalisation of approximately US$12.3 billion.

Despite the collapse in equity market volumes during Q3 2010, several bulge-bracket brokers saw an increase in equity trading and sales revenues over the period compared to the previous quarter, although year on year most were down.

The threat of an 'out of control' algorithm playing havoc with the market isn't one that high-frequency trading firms wield exclusively, but by virtue of their large volumes and the high speeds at which they trade, low-latency operators are perceived to be capable of inflicting more damage, and more quickly, than other market participants.

Trading communications firm IPC Systems has created a new sub-10-millisecond trade route between New York, New Jersey and Toronto, designed to provide trading firms with low-latency access to multiple liquidity venues and exchanges.

BNY Mellon has signed a memorandum of understanding with the Shanghai Stock Exchange for the listing of exchange-traded funds based on its BNY Mellon Depositary Receipt Indices.

Rising index arbitrage activity in Asia will add liquidity to the region's equity markets and create a healthy environment for the cross-listing of indexes between bourses, market participants say.

Recent outages at US and European exchanges have raised concerns as to whether competition between trading venues to provide faster trading has come at the cost of reliability. In Japan, where earthquakes pose the biggest operational risk, the Arrowhead low-latency trading platform is designed to handle the contingency promptly, says Tomoyoshi Uranishi, senior executive officer at the Tokyo Stock Exchange.