EXCHANGE NEWSWIRE, 01 April 2010
CFTC approved final rules to protect collateral under the Bankruptcy Code and CFTC regulation Part 190 with respect to OTC derivatives that customers clear through a FCM. The Final Rules enhance certainty regarding such protections by creating a sixth and separate account class applicable in the event of FCM bankruptcy for cleared OTC derivatives.
LSE: deputy CEO Massimo Capuano resigned. Raffaele Jerusalmi, director of capital markets, will succeed him as CEO of Borsa Italiana.
NASDAQ OMX began trading in ten new EFTs from Deutsche Bank's db x-trackers ETF platform. The ETFs are based on the following indexes: MSCI’s World Index, Europe Index, Japan Index, USA Index; DJ’s Stoxx Banks, Euro Stoxx 50 Short Index, Stoxx 600 Banks Short Index; DAX Index, Short DAX; S&P 500 Inverse Index.
NASDAQ OMX CFO Adena Friedman said the company does not need to increase its current $50-60 mn in annual capital spending.
NYX signed an agreement with Constellation NewEnergy, under which NYSE will buy renewable energy certificates to match all of the 28 mn kWH of electricity used annually by the exchange company. The certificates purchased by the NYSE will result in over 57 mn pounds of carbon dioxide emissions avoided.
Tokyo Commodity Exchange and Tokyo Stock Exchange announced the establishment of a joint emissions trading exchange preparatory company on April 1, 2010.
Osaka Securities Exchange announced that OSE and Jasdaq Securities Exchange merged on April 1, 2010. In accordance with the merger, OSE has started to operate JASDAQ and NEO.
Markit unveiled a service to provide observable liquidity metrics and scores for all CDS, evaluated bonds, loans and ABS. The CDS liquidity data will be introduced in April.
Thailand Futures Exchange expects equity derivatives trading to surge and surpass the cash market within five years amid increased hedging demand.
LME launched warrants for 5 tonnes of cobalt issued late last week in Rotterdam. The generation of an LME warrant comes ahead of the launch of cash trading in minor metals on 19th May, 2010.
Cantor Fitzgerald: the Motion Picture Association of America opposed to proposals to launch exchanges trading futures relating to box-office receipts planned by Cantor Fitzgerald (on the Cantor Exchange) and Veriana Networks (on its proposed Tern Exchange). The CFTC postponed approval on one of the exchanges last week.
Getco appointed former Federal Reserve bank governor Randall Krozner as an advisor.
Citi spun-off Primerica, a multi level marketing company for financial products, in a $320.4 mn IPO under the “PRI” ticker.
JPMorgan launched DerivClear, a centralized OTC derivatives platform, giving clients including hedge funds online access to a range of products across multiple asset classes. Services include trading, confirmation control, settlements and reporting.
Credit Suisse is in talks over buying a minority stake in York Capital Management, which has $12bn in AUM.
ICAP: Nick Cosh retired from the board of directors yesterday.
FIG chose to skip it 1Q10 dividend payment to retain capital for “potential future investment opportunities and working capital purposes”.
BlackRock’s CEO Larry Fink opposed an emergency-liquidity facility for money market funds that was planned since last year to prevent fund NAVs from dropping below $1.
SCHW: a US district judge in San Francisco ruled that the company breached the law when the Yield Plus invested more than 25% of its assets in mortgage-backed securities.
Janus was initiated with a “hold” rating and a $15 target price at Citi.
Janus was upgraded to “outperform” from “market perform” and target price was increased to $17.75 from $15.00 at KBW.
Legg Mason’s target price was reduced to $29.5 from $32 and maintained a “hold” rating at Citi.
FII’s target price was increased to $28 from $26 at Citi and maintained a “hold” rating.
ART was initiated with a “hold” rating and a $26 target price at Citi.
EV was initiated with a “hold” rating and a $34 target price at Citi.
AB’s target price was increased to $35.5 from $28 at Citi and maintained a “buy” rating.
TROW’s target price was reduced to $62 from $63 and maintained a “buy” rating at Citi.
BEN’s target price was increased to $130 from $120 and maintained a “hold” rating at Citi.
AMG was initiated with a “buy” rating and a $105 target price at Citi.
IVZ target price was reduced to $26 from $27 at Citi and maintained a “buy” rating.
WDR was upgraded to “buy” from “hold” and target price was increased to $42 from $34 at Citi.
EU Internal Market Commissioner Michel Barnier said he may propose specific curbs on sovereign CDS in October. "I don't speak about a ban. I speak about a framework of rules and transparency," Barnier said.
Aite Group released a report showing that algorithmic trading and DMA could increase to 70% of European equities’ order flow by 2012 from current 51% levels, The Trade News reported. Aite estimates that high-frequency trading in Europe will increase to just below 45% by 2012 from around 25% in 2009.
CESR called for evidence on micro-structural issues of the European equity markets to assess the impact of some of the latest developments in European equity markets. The call also seeks to inform aspects of this year’s MiFID review. Specifically, CESR seeks information on high frequency trading, sponsored access, co-location services, fee structures, tick size regimes, and indications of interest.
Provided By: Equity Research Desk, www.erdesk.com