EXCHANGE NEWSWIRE, 16 April 2010
SGX reported a FY3Q10 EPS of SGD0.07 (+35% Y/Y) on revenues of SGD153 mn (28% Y/Y) and expenses of SGD63.6 (+17% Y/Y). The increase in revenues was mainly due to a 65% Y/Y increase in securities revenues relating to higher turnover on the cash market. Commenting on the JV with Chi-X, CEO Magnus Bocker, said the establishment of dark pools must be done in “parallel to other developments” and will take a few years before they “take off” in Asia.
UBS estimates that 60% of currently traded CDS can be moved to central clearing. Beyond that, clearing CDS could add more risk, as UBS MD Stuart Taylor said.
CME will require clearing members to implement the Globex Credit Control tool for HFT beginning June 25.
CME will launch on April 25 eight new petroleum futures and four new European biofuel swap futures contracts for trading in NYMEX and Globex and clearing through ClearPort.
SIX Telekurs will acquire CSV’s pricing business. CSV is a valuation service for complex and illiquid securities across all asset classes. CSV produces prices on 51,000 instruments for SIX Telekurs clients.
Bursa Malaysia was awarded the Recognition Award for a Public Organisation that has supported and contributed towards the malaysia venture capital & private equity industry by the Malaysian Venture Capital and Private Equity Association.
BMV will adopt new technology to increase trading and make transactions more efficient according to COO, Pedro Zorrilla.
PLUS 1Q10 volume increased +26% Y/Y to 20.9 bn shares and traded value increased +33% Y/Y to £16.6 bn.
RTS is now providing execution of repo trades with CCP on RTS Standard.
RTS and the Saint Petersburg Exchange started trading a new cash-settled futures contract on summer gasoil, trading will take place in the Saint Petersburg Exchange and cleared through RTSClearingCenter.
TOCOM: rubber futures contract volumes reached a record price of 412.1 JPY/kg today.
LCH.Clearnet CEO Roger Liddell said “there seems to be a divergence from a risk management standpoint as to how CCPs are operating. The most extreme case is between us and IDCG. Their approach to risk is much more lenient than ours.” IDCG chief risk officer Michael Dundon replied that his company doesn’t have “more lenient standards” and that they “recalculate our margins on a daily basis. We are very responsive to volatility on a daily basis.”
LCH.Clearnet could start using overnight indexed swap rate curves instead of LIBOR to value its $212 trillion swap portfolio, according to Risk.net.
GAMCO announced preliminary earnings estimates for 1Q10 of $0.48 to $0.52 per diluted share. AUM increased +51% Y/Y (+6.5% Q/Q) to $28 bn. Total revenues were about $60 mn, operating income is expected at $21.5 to $22.5 mn.
Fortress Investment fundraiser, David Cody, is leaving the firm. He will be replaced by Todd Ladda who is currently the Managing Director of Investor Relations and Capital Formation at the company.
PIMCO MD Paul McCulley called for regulation of money market funds. “A money market fund is a bank that has absolutely no capital.
MasterCard was initiated with an “Outperform” rating at FBR Capital. Target price was set at $300.
Visa was initiated with an “Outperform” rating at FBR Capital. Target price was set at $115.
Treasury Secretary Geithner sent a letter to Senate Agriculture Committee Chairman Blanche Lincoln (R-Arkansas) calling for OTC derivatives to be cleared by “regulated exchanges or other regulated and transparent trading platforms. “Even as we protect the ability of American commercial enterprises to effectively manage their risks, we cannot allow loopholes that would permit dealers and other major participants in these markets escape major oversight, ” Geithner said. Chairman Lincoln is expected to unveil a financial reform bill today that would require banks to separate their swaps trading operations from the rest of their business.
US Senator Harry Reid (D-Nevada) said the OTC derivatives bill could be delivered to the Senate floor as soon as the next week.
The EU Commission’s derivatives and market infrastructure working group member states is meeting today to evaluate whether to force non-financial users of OTC derivatives to clear trades through CCPs.
Provided By: Equity Research Desk, www.erdesk.com