EXCHANGE NEWSWIRE, 7 April 2011
ICE may drop out of the counterbid bid for NYX if the Department of Justice (DOJ) raises concerns regarding the merger’s vertical integration of futures execution and clearing, according to Sanford C. Bernstein analyst Brad Hintz.
DB1 does not plan to increase its bid for NYX as it is confident that the benefits of its deal is sufficient to trump the higher offer by NASDAQ OMX and ICE, according to a Reuters source.
NYX-DB1 deal: NYX agreed to pay advisor Perella Weinberg Partners LP a $22.5m fee and DB1 will pay Deutsche Bank EUR14m upon completion of the deal, which followed five months of discussions. DB1 will also pay JPM $10m for its work on NYX.
ASX-SGX deal: Australian Financial Markets Association (AFMA) recognizes that there is potential for a cross-border exchange to benefit Australia’s financial system and economy under the correct circumstances, and it notes that Treasurer Wayne Swan comments that he is still open to further representations and information from ASX and SGX before making a final decision.
SGX responded to FIRB on its bid for ASX, although the exchange did not disclose the contents of its response. A statement by the exchange also said that “SGX has not amended the terms of the merger” and that SGX wants Australia to formally reject its bid in writing, which “would make it harder for someone else to go after ASX as the objections would also apply”, according to a Reuters source.
LSE-TMX deal: Analysts say the similarities between Australian and Canadian capital markets will cause Canadian authorities to take the ASX-SGX deal’s failure or success into consideration when deciding whether to approve the LSE-TMX merger, which may now have a lesser chance of completion.
FESE, LSE and NYX, will partner with Thomson Reuters and Bloomberg to develop a consolidated tape of post-trade equity reporting data across Europe. The group will collaborate with ESA for OTC reporting and implement common standards that allow trade data from executions on both exchanges and MTFs to be easily consolidated with OTC trade reports.
OSE opened a Singapore-based office as part of its initiative to increase its derivatives business, as “many clients who trade derivatives live there”. The office which currently only has one employee, may be expanded, and “will gather information including what kind of needs the clients have”.
OSE and BSE signed an MOU to cooperate in the development of financial markets in both India and Japan, and both exchanges will seek opportunities to include cross-licensing of indices and other potential areas of collaboration.
DTCC appointed Robert Druskin, ex-Citigroup operations and technology head, to be the chairman of the DTCC board.
ISDA submitted a letter together with market participants and industry associations to global regulators detailing a plan for making OTC derivatives markets safer and more efficient. The letter included commitments to four main areas, which include increasing standardization; expanding central clearing; enhancing bilateral risk management; and increasing transparency.
CFTC Commissioner Jill Sommers said that the US regulator may need to re-propose rules to allow more flexibility in swap-trading systems, as the rule which defines swap execution facilities (SEFs) is “overly restrictive” and may limit the number of swaps that can be traded on the new platforms.
Provided By: Equity Research Desk, www.erdesk.com
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