As 2014 begins, theTRADEnews.com has compiled some of the key news events you may have missed during the holiday period.
NYSE submits kill switch plan
The New York Stock Exchange (NYSE) is planning to introduce a kill switch to protect investors and has submitted details to US regulators.
A kill switch would enable NYSE’s member firms to set trading thresholds which, if hit, would block further orders.
Risk controls at exchanges have been a major focus of US regulators since a rogue algorithm in August 2012 caused US$400 million of losses for Knight Capital.
Securities and Exchange Commission chair Mary Jo White called on exchanges to implement risk-limiting tools when she met with exchange chiefs in September 2013.
Yuanta sells TAIFEX stake to European futures exchange firm
Yuanta Financial Holdings has sold its shares in the Taiwan Futures Exchange (TAIFEX).
The company sold 9,673,057 shares, equivalent to 5% of TAIFEX, to European futures exchange operator, Deutsche Börse-owned Eurex, in a deal worth US$31.9 million.
LSE hails six year high for IPOs
The London Stock Exchange (LSE) said 2013 saw the highest number of IPOs since 2007, with 105 firms listing last year.
The listings raised a total of £15.7 billion, with the sale of UK government-owned Royal Mail being the largest at £1.7 billion.
LSE’s AIM market for smaller companies account for 62 listings raising a total of £1.1 billion, while the remaining 43 IPOs were on the main market.
Xavier Rolet, CEO, London Stock Exchange Group, said: “2013 has been an exciting and positive year for the IPO market. We have seen a very healthy mix of UK and international companies using the London market as a platform for future growth.
Nasdaq OMX and Borse Istanbul sign deal
Nasdaq OMX will take a 5% equity stake in Borsa Istanbul and deliver technologies and advisory services to the exchange.
Both parties are to work together to cement Borsa Istanbul’s position and brand as the main capital markets hub for the Eurasia region. Nasdaq OMX has the option to increase its stake by an additional 2%, and Borsa Istanbul may also take a minority participation in NASDAQ OMX.
FINRA fines Barclays for record keeping failures
The US Financial Industry Regulatory Authority (FINRA) has fined Barclays US$3.75 million for poor record keeping.
FINRA found that, between 2002 and 2012, Barclays did not keep required electronic books and records in the proper format.
The data included orders, trade ticket data and trade confirmations.
ESMA seeks comments on ETFs and UCITS guidelines
The European Securities and Markets Authority (ESMA) has published a consultation paper on collateral for exchange-traded funds and Undertaking for Collective Investment in Transferable Securities (UCITS).
The consultation paper is in response to requests for ESMA to reconsider its position on the requirement on collateral diversification, which is argued to have an adverse impact on UCITS’ collateral management policies, including money market funds that place cash into reverse repurchase agreements.
ESMA is now seeking views on the merits of revising the requirements and the best way to address concerns before the guidelines take effect on 18 February. The submissions deadline is 31 January.
Fed confirms foreign bank push-out rule
The Federal Reserve has released its final rules on swap trading push-outs for foreign banks.
As part of the Dodd-Frank Act, foreign banks with US branches must separate these activities into proper capitalised affiliate companies.
The rule, which will allow foreign banks to delay implementing the requirements is unchanged from an interim version published in June and will become effective from 31 January.