FMX | Connect – www.fmxconnect.com - (Reported 11/01/2010)
Exchange Sector Review – Week ending October 29th 2010
The sector was flat, in-line with global equities. Interdealer brokers were down 100bps. YTD the sector is underperforming global equities by 29 bps.
SGX made a AUD48 per share bid for ASX, valuing the company at AUD8.4 bn ($8.2 bn), a 37% premium to last week’s share price. The offer is comprised of AUD22 in cash per share and 3.473 SGX shares for each ASX share. The deal would be 31% accretive, but this would be mainly due to the difference in multiples between the exchanges (ASX is trading at 15.9x consensus 2011 earnings while SGX is trading at 23.1x) and the fact that the deal is mainly paid with SGX shares –the accretion will be mostly earnings bootstrapping-. The deal is facing increased opposition in Australia were the deal has to be approved by both houses of Parliament and skepticism from analysts which don’t see a justification for the deal. ASX is currently trading at a 20% discount to the offer price (see pages 7-8).
WSE’s IPO raised PLN1.2 bn ($423 mn), valuing the exchange at $677 mn. Retail investors were allocated 30% of the offering at a price of PLN43, while institutional investors paid PLN46 (with the offering oversubscribed by 25 times). Shares will begin trading on November 9th (see page 9).
Changes in the IOF tax passed last week had no noticeable effect on BVMF3’s equity or derivative volumes (see page 10).
ELX Futures said in a letter to the CFTC that they “strongly recommend that the commission should not adopt a portfolio margining regime unless it adequately protects the ability of other exchanges and clearinghouses to adopt different market mechanisms for position transfers.’”
MF Global said CME set capital requirements too high for clearing interest rate swaps and that it would ensure that big banks continue to dominate the market.
The following companies reported quarterly earnings:
• CME $3.66 +20% Y/Y (see page 11)
• DB1 €0.87 +2% Y/Y (see page 11)
• NDAQ $0.50 +19% Y/Y (see page 11)
• TMX C$0.68 +21% Y/Y (see page 11)
• BME €0.39 -7% Y/Y
• BEN $1.65 +4% Y/Y
• WDR $0.47 +21% Y/Y
• AMTD $0.20 -23% Y/Y
Next week:
-The following companies will report quarterly earnings:
• Monday, November 1st: ICE
• Thursday, November 4th: CBOE, IMAREX, MF
Source: ERDESK
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