EXCHANGE NEWSWIRE, 23 December 2010
Chi-X Europe and BATS are in exclusive talks to combine both businesses to create the biggest European equity trading venue. The discussion will be ongoing until February 11, and the deal is likely to be structured as a share swap between shareholders of both companies, according to sources interviewed by the Financial Times.
NYX: Transaction prices on NYSE will be changed starting January 2011 in order to attract HFT. Brokers and traders will pay 23 cents per 100 shares, 2 cents more than the current fee for trading against bids and offers at NYSE, and those who place orders that wait to be executed at the Big Board will get a rebate of 15 cents, 2 cents up from the current rebate.
ISE will introduce a new Optimise trading system in April 2011, which will make it the quickest US stock options trading venue, and CEO Gary Katz said “it’s a competitive advantage that should accrue to ISE” and help the exchange reclaim its decreasing market share. Katz also commented that if ISE would launch a second options market, “it would be on the new trading platform”.
HKEx hired Eric Landheer, ex-head of NASDAQ OMX’s Asia-Pacific business, to lead issuer marketing in HKEx’s market development division.
TOCOM will soon begin trading farm product futures transferred over from TGE as Japan’s commodity exchanges further their consolidation efforts. The timing of transfer is still undecided, according to a TGE spokesman.
ITG was granted its motion of non-infringement of US Patents 7, 136, and 834, and Liquidnet's claims of ITG infringing the patent 834 in its ITG Channel, POSIT Alert and Macgregor XIP products were dismissed. ITG will remain free to pursue its inequitable conduct and invalidity claims against Liquidnet.
GFI amended a credit agreement and increased the commitment to $275m, which applies under certain conditions.
NASDAQ OMX was downgraded to "Market Perform" from "Outperform" at BMO Capital Markets. Target price was maintained at $26.
CFTC Commissioner Scott O’Malia commented that inter-dealer swaps trading will need to be executed on non-exclusive systems available to all users, and CFTC has “impartial access requirements that require them to be open”, so that SEFs can be “competitive” and “get the benefit of these tighter bid-ask spreads”.
SEC Chairman Shapiro said that cutbacks of funds from Congress would restrict the regulatory agency’s ability to monitor credit rating agencies and write rules supervising derivatives markets. SEC has frozen hiring, and will have to reduce other expenses, which “at this stage it will impact our work”.
Provided By: Equity Research Desk, www.erdesk.com
To view our exchange reports and articles on your PDA or mobile device, click here.
-----
About FMX: FMX Connect is an information, data, and analytics portal for Commodities. The portal provides an all-in-one package including essential market data, independent third party research, industry news, and commodity trading tools. FMX Connect provides efficient, effective, and thorough data that bridges all aspects of commodities onto one screen. The Result; A user friendly application for hedge fund traders, OTC brokers, individual investors, and industry participants.
-----
Note: The information presented, while from sources generally believed to be reliable, is not guaranteed and may not be complete. FMX | Connect makes no representations or warranties regarding the correctness of any opinions or information. Past results are not necessarily indicative of future results. Nothing in this report should be construed as a representation to buy or sell shares, futures or options, which contain considerable risks. For internal client distribution only. Any reproduction, re-transmission, or distribution of this report without permission is prohibited. Media correspondents or reporters may not quote any one page or section in its entirety and must attribute all quotes, ideas or concepts herein. Copyright FMX | Connect, ©2009-2010. All rights reserved.