Police in Hong Kong are taking a closer look at potential financial irregularities at the recently-shuttered Hong Kong Mercantile Exchange. The ICE-NYSE merger has formally been submitted to the EU for testing and, they hope, approval. ICE Endex and the European Energy Exchange face off over an expanding market in Turkey.

Federal regulators, in a report that was prepared before yesterday, outline technology and platform risks as being significant to the health of the financial system. Yesterday, CBOE became the latest of many companies to highlight that trading on electronic systems is not 100 percent guaranteed. In the energy sector exchanges CME Group and ICE prepare to go head-to-head with new biofuels contracts.

Regulators for the European Union agree to review the ICE-NYSE Euronext merger plan, simplifying the approval or denial process for the two companies. The UK’s Financial Conduct Authority opens a probe into the ISDAfix rate, joining US regulators in looking for rate fixing. NYSE Liffe sues Dutch platform TOM, accusing the options marketplace of creating equity options without a license.

March 27, 2013: Commodities trading rule calls rejected; European Regulators to Charge Big Banks; ICE And Gasunie Announce Launch Of ICE Endex
Switzerland considers strict regulation of commodity trading in the country, and passes it by in favor of consulting on voluntary compliance. European antitrust regulators ready their fingers of accusation (and possibly a stack of “neither admit nor deny” forms) and prepare to charge giant banks for collusion in the credit derivatives market. IntercontinentalExchange and Gasunie announce the launch of a new trading venue for spot and derivative natural gas markets.

IntercontinentalExchange considers creating shorter trading hours for its soft products, hoping to increase liquidity by packing trades tighter together. The SEC gives a thumbs-up to Nasdaq’s offer to pay sixty mil to parties injured by its Facebook IPO problems; other folks (such as bank UBS) find the plan less than satisfactory and continue to advocate a different solution. In Europe, Eurex Clearing announces a list of fresh faces appointed to serve on the executive board.

ICE and NYSE Euronext want the EU to bless their anticipated merger, in the hope of avoiding regulatory quicksand in a variety of other nations. The Italian Stock Exchange announces the creation of a bond trading platform to accommodate new regulations. In the USA, regulators are concerned that banks are returning to high-risk behaviors that — no, seriously — that got them into trouble some years back.

The CFTC’s Scott O’Malia says that the agency is receiving so much computer-crashing data with regard to market trades, that it is not effective in tracking swaps activity. ICE adjusts the collar and tie on its bid for NYSE Euronext, in order to make it more attractive for regulatory reviewers. The head of Hong Kong Exchanges says that its recent purchase of the London Metal Exchange may help in future negotiations with China. In today’s First Read, take a look at JLN’s latest video profile: Neal Kottke, chairman of Kottke Associates in Chicago, talks with JLN about his career highlights and the challenges of trading in today’s markets.

ICE Clear Credit tosses plans to start single-name credit-default swap clearing after an SEC policy change caused heartburn on the buyside. Yesterday’s mini-option debut produced “respectable” volume across multiple venues. CME Group turns on the lights for its London interest rate swaps clearing service.

IntercontinentalExchange targets May as it’s planned release date for credit-default swap futures. Russell Investments teams up with CBOE and NYSE to create stock index option investment products. New derivative reform rules are slated to take effect this week in both Europe and the USA.

The ICE-NYSE Euronext takeover plan passes an antitrust hurdle as the US Department of Justice takes no action to stop the deal. The CFTC is taking a closer look at CME Group’s new interest-rate swap futures contracts, to see if they allow traders to bypass new regulations and oversight. In Europe, exchanges and trade groups are lobbying heavily against passage of the latest MiFID rules. In today’s First Read, our final video in JLN’s Restoring Customer Confidence series debuts; Brian Fox of Capital Confirmation discusses how the company’s third party confirmation service can help protect customer funds and restore customer faith in the audit system used in the futures industry.