EXCHANGE NEWSWIRE, 21 May 2010
The US Senate approved the The Financial Regulatory Reform Bill in a 59-to-39 vote. The bill will be reconciled with the one passed by the House of Representatives last December, before being sent to the President.
CBOE members will vote today on the restructuring plan to demutualize and go public.
LSE FY10 EPS declined 19% Y/Y to GBp 59.6, in line with consensus estimates. Revenues were down 6% Y/Y to GBP 628 mn, due to 23% lower trading fees, partially offset by 3% higher post trade services and 4% higher information and IT revenues. Analysts were expecting revenues of GBP 620 mn. Expenses increased 5% Y/Y to GBP 350 mn due to higher compensation and amortization costs related to the acquisitions of Turquoise MTF and MilleniumIT.
Knight indicated that about 99.6% of orders on May 6 were executed without interruption. Affected trades were from retail brokers; trades from mutual funds and other institutions were not delayed. “We arguably provided more liquidity to our clients than anybody did that day (…) The order routing slowed down when the market was rebounding. When we noticed it, we flipped to a backup system and everything was restored to normal operating procedures,” CEO Thomas Joyce commented. A daily record for US equity volume was set with volume of $71.6 bn and 9.3 mn trades.
NYX: NYSE Technologies established Knight Capital as a destination on the Secure Financial Transaction Infrastructure network.
ICE Futures Canada registered Macquarie Commodities Trading as a general trading participant.
NASDAQ OMX Nordic will extend the European harmonized tick sizes to cover all Nordic Large Cap shares traded on NASDAQ OMX Nordic exchanges starting June 7. This aims at minimizing implicit transaction costs and increasing liquidity.
NZX appointed Fiona Mackenzie as Head of Markets. Ms. Mackenzie was previously Head of Liquidity and Traded Products
QuantHouse started offering Interxion’s Financial Hub services in its London data centre.
VISA deposited $500 mn into the litigation escrow account previously established under the company's retrospective responsibility plan.
MasterCard called House and Senate conferees to reject an amendment to the Financial Regulatory Reform Bill proposed by US Senator Richard Durbin (D-Illinois) that would limit interchange fees. VISA said it is disappointed with the proposed amendment, which was “written and backed by lobbyists representing the nation's largest retailers” and “could significantly harm consumers."
Janus plans to add performance fees to eight mutual funds (Forty, Twenty, Global Opportunities, Overseas, Aspen Forty, Aspen, Aspen Global Opportunities, Aspen Overseas and Aspen Twenty). On June 10 shareholders will vote to allow the company charge a fixed 64 bps plus 15 bps based on performance over a 36 month period.
TD Ameritrade’s online trading system suffered difficulties yesterday that affected "some clients." "We are working diligently to fix the issue but at this point we believe most clients should be able to log in," a company statement read.
Knight Capital was upgraded to "Outperform" from "Market Perform" at BMO Capital. Target price was maintained at $18.
MasterCard was upgraded to "Buy" from "Neutral" at Janney Montgomery. Target price was maintained at $250.
The CFTC approved the reestablishment of a Technology Advisory Committee (TAC) that will be charged with keeping the Commission abreast of new technologies to better oversee the derivatives markets. Commissioner Scott O’Malia was appointed as Chairman of TAC for a two-year term. “The market events of May 6th clearly highlight that technology drives the structure and function of the markets … We must develop a deep understanding of technological innovation and what it means for the markets we oversee,” O’Malia said.
SIFMA CEO Tim Ryan said on the Senate bill on financial regulation that "there are several provisions that would undermine the original goals for reform by creating unintended consequences that could have a negative impact on our economy. Provisions like the so-called Volcker Rule would impose sweeping new restrictions on size and activities that were not a cause of the financial crisis."
The SEC gave US exchanges two weeks to disclose how they plan to cancel trades during periods of extreme market volatility in future.
Provided By: Equity Research Desk, www.erdesk.com