fmxExchangeConnect - EXCHANGE NEWSWIRE, 8 April 2011

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EXCHANGE NEWSWIRE, 8 April 2011

April 8 2011, 09:37

EXCHANGE NEWSWIRE, 8 April 2011

ASX-SGX deal was officially rejected by Australian Treasurer Wayne Swan, who said that the merger was designed as “a takeover that would see Australia’s financial sector become a subsidiary to a competitor in Asia”. SGX and ASX withdrew their deal proposal after Swan’s announcement.

ASX may be forced to divest its clearing and settlement business after a review of Australia’s financial systems, a move that may make a takeover of ASX more acceptable to the Canberra. The Australian government had rejected SGX’s takeover of ASX partly because of concerns that key financial systems would be passed to a foreign company.

SGX released a statement saying it will still discuss plans to collaborate with ASX in other ways despite the failure of a merger between both bourses, and that SGX “will continue to pursue organic as well as other strategic growth opportunities”.

NYX-DB1 deal: an SEC filing detailed that the EUR300m in planned costs synergies would mainly come from savings in European cash and derivatives markets and US equity options, making up 32.5% of total costs savings. Removal of “duplicative operations and planned operating expenses” in both groups’ clearing businesses will deliver another 22.5% in synergies, and the rest would come from savings in technology and corporate operations.

NYX’s board of directors is unlikely to welcome the plan to split up the company’s equities-related and futures businesses. The break up would contradict the company’s established strategy, and is a main discussion point in assessing the NASDAQ-ICE buyout proposal.

NASADQ OMX is trying to convince NYX shareholders that its deal has significant advantage because of NASDAQ CEO Robert Greifeld has a track record of being able to cut costs, and hence will be able to deliver the over $700m in planned costs synergies. NASDAQ also pointed out that NYX was never able to integrate both NYSE and Euronext systems, which resulted in a $1.6b impairment charge in late 2008.

CME and LCH.Clearnet are aiming to launch clearing in OTC FX derivatives by end-2011, as it is a market which could be subject new regulatory oversight later this year.

NASDAQ OMX appointed Brian Hyndman, currently Senior VP of Transaction Services US, to be the Senior VP of Global Data Products effective April 15. David LaValle will take over Hyndman’s role, and will be working across various business lines including Indexing, Listing, Capital Markets as well as Trading businesses.

LSE: Turquoise announced a new board structure in which current CEO David Lester will replace Xavier Rolet as board Chairman, and current COO Adrian Farnham will take over as CEO. LSE’s head of equities and derivatives Nicolas Bertrand will also be joining Turquoise’s board.

LSE signed a Master Services Agreement with the Mongolian State Property Committee (SPC) to develop the Mongolian Stock Exchange (MSE) though the provision of technology, education, education and regulatory and capital markets expertise.

TSE postponed its scheduled trading hours extension until autumn 2011, from the originally planned date of May 9, due to power supply disruption caused by the March 11 earthquake. The TSE plans to shorten its 90-minute lunch break to one hour, from 11.30am -12.30pm, and President Atsushi Saito hopes the move will increase trading by approximately 6%.

SGX, Bursa Malaysia and SET are committed to being the first group in the linkage of ASEAN exchanges, in which trading between the exchanges would be ready before end-2011. PSE is also considering joining the linkage at the end of this year.

JSE appointed a new Africa Board advisory committee which will be chaired by Nathan Mintah, who was previously a partner at private equity firm Kingdom Zephyr Africa Management Company. The committee will be responsible for promoting business goals and the cross-listing stock platform’s objectives to the investment community.

Provided By: Equity Research Desk, www.erdesk.com

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