EXCHANGE NEWSWIRE, 12 May 2010
Mizuho Securities USA appointed Jerry Rizzieri as SMD and Head of Fixed-Income Trading; Carlos Vargas as MD and Head of Emerging Markets; Raymond Velazquez as MD and Head of U.S. Equity Sales and Trading; Christopher Rodriguez as MD, Futures; Craig Kazmierczak as Executive Director and Senior Mortgage Trader, and Andrew Lothian as Executive Director and Corporate Bond Trader.
NYX plans to invest $60 mn to set up two new clearing houses based in London and Paris in late 2012 and clear own European securities and derivatives. NYX will move away from all of its outsourced contractual arrangements with LCH.Clearnet. No termination fees or penalties will be payable to LCH.Clearnet. The new clearing house in London will clear listed interest rate, commodities and FX products and the new clearing house in Paris will clear equities and equity derivatives. NYX said both clearing houses will offer attractive economic terms and intends to extend clearing services to OTC markets. The company estimates that it will realize additional revenues of at least $100 mn p.a. from 2013.
US exchanges would implement a new circuit breaker for S&P 500 components, that would be triggered when a stock moves more than 10% in a 5-minute rolling period.
BM&FBOVESPA reported 1Q10 net income of R$282.6 mn and EPS of R$0.14. Net revenues totaled R$459 mn (+45% Y/Y; +8.1% Q/Q), with Bovespa revenues up +57% Y/Y (R$314 mn) and BM&F revenues up +33% Y/Y (R$174 mn). Operating expenses totaled R$137 mn (-8% Y/Y; -15% Q/Q), with R$115.5 mn in adjusted OpEx, a run rate of R$462 mn p.a.; -16% lower than management’s guidance of R$550 mn which was revised (R$302 mn).
HKEx 1Q10 EPS rose 35% Y/Y to HKD1.04, below consensus estimates of HKD1.08. Revenues rose 28% to HKD1.71 bn from HKD1.34 bn.
CME Executive Chairman Terry Duffy said at a House Financial Services panel that "Everybody has to understand that high-frequency trading is still liquidity." The CFTC must "be careful in not cutting them off."
CME: Green Exchange’s CEO, Tom Lewis, said the proposed U.S. climate legislation would limit trading as it includes price floor at $12 per permit, and ceiling of $25 in 2013 and limits OTC transactions.
BM&FBovespa’s COO said the exchange will double future and derivative trading limits to 400,000 contracts per day by 2H10.
HKEx appointed Mr. Hu Yong as executive director. Mr. Hu is currently the General Manager of Sichuan Morita Fire Safety Appliances Company.
HUPX is on track to start operations of the Hungarian power market by the 1st of July 2010.
Tullett Prebon launched a Primary Placement business for Alternatives to raise capital for hedge funds, private equity and other alternative investment funds that will adopt a bespoke approach by structuring individual solutions for their clients.
The CPSS and the IOSCO issued two consultative reports; “Guidance on the application of the 2004 CPSS-IOSCO Recommendations for Central Counterparties (RCCP) to OTC derivatives CCPs” that presents guidance for CCPs that clear OTC derivatives; and “Considerations for trade repositories in OTC derivatives markets” that presents considerations for TRs in OTC derivatives markets and for relevant authorities over TRs.
Instinet Europe was selected by research boutique Euler Securities as exclusive provider of trading and execution services.
Tradeweb interest-rate swap trading YTD increased +71% Y/Y. The company also plans to register as a swap execution facility.
State Street Global Advisors appointed Lynn Blake as Global Head of Index Equity after the retirement of Paul Brakke. Ms. Blake was previously head of non-US markets in the Global Structured Products Group.
AllianceBernstein April AUM remained unchanged M/M at $501 bn.
Schwab indicated that the company had two of the three busiest trading days in its history last Thursday and Friday.
E*Trade: a U.S. judge ruled that investors may proceed with a class action lawsuit over allegations that the company "knowingly and/or recklessly purchased high-risk loan pools and asset-backed securities with inadequate due diligence" while assuring investors they were safe.
Julius Baer AUM increased +5% YTD to CHF175 bn and total client assets reached CHF266 bn. Tier 1 ratio stood at around 21%.
EFG’s Singapore branch Managing Director, Kees Stoute, expects that the hiring of Commerzbank client adviser team will add 5% to its Asian AUMs.
Bank Sarasin is closing Sarasin Alen Agencia de Valores, an unprofitable asset management joint venture in Spain, to cut costs.
BM&FBOVESPA was upgraded to "Outperform" from "Neutral" at Credit Suisse. Target price was raised to R$15.60 from R$15.34.
The SEC and the CFTC announced the formation of the Joint CFTC-SEC Advisory Committee on Emerging Regulatory Issues. The committee will develop recommendations on emerging and ongoing issues relating to both agencies and its first item is a review of making recommendations related to market structure issues that may have contributed to the volatility, as well as disparate trading conventions and rules across various markets.
The SEC sent out subpoenas in the investigation of the cause of last Thursday's intraday market plunge. Chairman Mary Shapiro said at a congressional panel that the SEC still has no evidence that the market sell-off was "done in a malicious way."
The US Chamber of Commerce, the National Association of Manufacturers, and the American Petroleum Institute said its members could still find themselves unable to qualify for the exemption for industrial hedgers to comply with OTC derivatives rules being discussed in Congress.
US Senate voted unanimously a measure calling for a one-time audit of the Federal Reserve which will be required to disclose the names of institutions which received loans during the financial crisis.
The FIA, MFA, CME, CMC and ICE rejected Amendment # 3892 that grants the Federal Energy Regulatory Commission the authority to supersede the regulatory judgment of the CFTC over natural gas and electricity futures, swaps and options markets.
Japan's parliament approved a bill that will require central clearing of some OTC derivatives contracts such as IR swaps and iTraxx Japan CDS by late 2012.
Provided By: Equity Research Desk, www.erdesk.com