EXCHANGE NEWSWIRE, 1 April 2011
NASDAQ OMX and ICE offered to buy NYX for $11.3b, representing a value of $42.50 per NYX share, which will be paid for with $14.24 in cash and 0.4069 NASDAQ OMX shares and 0.1436 ICE shares per NYX share. This offer is +19% higher than DB1’s $9.5b February bid, and +27% higher than NYX’s share price on February 8, the day before DB1 announced its offer. A total of $740m in net synergies is expected to be realized by the third year after the close of the merger.
DB1 may be obligated by the EU governments to open up its derivatives clearing business to competition even before a ruling on its takeover bid for NYX is settled. Competition to its derivatives clearing business would have an impact on the value of the merger with NYX as both DB1 and NYX have strong brands for derivatives trading and clearing.
ASX-SGX deal: ASX spokesman Matthew Gibbs said the exchange does not know if FIRB will extend its initial 30-day deadline to approve the merger with SGX, but he expects FIRB to do so. Gibbs also commented that “the timing is entirely a matter for FIRB” and that ASX will “continue to promote the benefits of the merger”.
LSE-TMX deal is being opposed by Toronto Dominion Bank CEO Ed Clark who said TMX should grow organically as a standalone entity, rather than be sold to LSE or any other bigger player.
LSE underlined plans to move more aggressively into derivatives trading and clearing in 2011 to diversify its heavily equities-reliant business. LSE also reported growth in its post-trade business, in which derivatives were up +12% y/y and equities up +1% y/y.
TMX launched a new real-time market data streaming service called TMX PowerStream which allows the end-user to have browser-based desktop and wireless real-time access to North American markets.
MILA: Chile, Peru and Colombia finished testing the integration of all 3 of their stock exchanges and will launch trading within the next 3 months, according to CEO of Bolsa de Valores de Santiago, Jose Antonio Martinez in a Reuters interview.
RTS Realtime Systems added Quote MTD to its market access network, and RTS customers will now be able to access Quote MTF’s trading platform through RTS’ automated trading systems.
ICAP said its new EUR-denominated IR swaps platform, iSwap, did better than expected with a third of ICAP’s total IR swaps trades transacted on the platform in March. Since iSwap was launched 6 months ago, a total value of EUR350b in IR swaps have been executed on iSwap, equivalent to a fifth of the firm’s total trades in the product.
CFTC was asked to “slow down” and seek Congress for a postponement of July deadlines for new derivatives regulations by US Representative Frank Lucas, who believes CFTC Chairman Gary Gensler “is moving too aggressively” and should be “more methodical”.
CFTC Commissioner Scott O’Malia said that if buyers and sellers are allowed to trade in “a market structure that fractures liquidity and creates an incentive to utilize dark pools”, the lack of transparency in the markets will cause the US derivatives rules to fail.
Provided By: Equity Research Desk, www.erdesk.com
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