EXCHANGE NEWSWIRE, 14 April 2011
LSE-TMX deal will be approved with conditions by an Ontario legislative committee on April 19, according to a Reuters source. The conditions are likely to include more clarity on regulatory roles and on the makeup of the new entity’s board of directors.
NYX may make a special dividend payout to gain its shareholders support for the deal with DB1, and the dividend would be paid out before the deal’s scheduled closing at end-2011. DB1 and NYX are also considering dividends or share repurchases by the new entity should the deal be successfully completed.
NYX CEO Duncan Niederauer said rejecting the NDAQ-ICE bid “was the only decision the board could make and should make” as “dismantling the company is completely inconsistent with the strategy”. Niederauer also said in a FOX Business Network interview that “you can’t deliver the synergies that the other proposals suggest without a substantial amount of job loss”.
NYX Liffe US migrated the open interest of its MSCI Pan-Euro index futures to its US platform from its European market. Liffe US CEO Thomas Callahan said the “next step will be migrating futures on the MSCI Emerging Markets and MSCI EAFE indices from the CME in June”.
NYX Liffe US’s new interest rate and Eurodollar products have seen significant growth as liquidity and open interest in Liffe’s Eurodollar and Treasury futures increased, according to RTS Realtime Systems.
BM&F Bovespa will provide clearing services for BRIX, which will launch its electronic platform in June and trade deliverable power contracts initially. BRIX had originally sought to collaborate with BVMF3, but ended up partnering with ICE when that did not materialize.
Chi-X Europe partnered with Otkritie to provide the financial group’s clients with enhanced market access, and Chi-X Europe will also meet an increasing client demand for trading Russian depository receipts (DRs) listed overseas.
Chi-X Australia selected Equinix to provide the data centre for its trade matching engine, and the alternative trading market is scheduled to be established in Australia by 4Q 2011.
SGX launched a new data centre and co-location facility as part of its S$250m reach initiative. Co-location customers can start sending orders from April 18, and the new trading engine which will be launched in August will be able to process one million orders per second per partition.
ISDA named Stephen O’Connor, a Morgan Stanley managing director, as its new chairman, part of its effort to overhaul OTC trading and processing rules.
ESMA Chairman Steven Maijoor commented that certain features of the stock market such as “transparency, liquidity, operational efficiency and equal market access” should be introduced into the derivatives market sector although a “copy-paste” approach should be avoided, as “there are differences in the way in which derivatives can be traded compared to equities trading”.
CFTC Chairman Gary Gensler said more congressional funding is required as CFTC prepares to watch over markets “seven times the size” of what its regulates now. Gensler also stressed the importance of increasing its staffing levels, which are essentially where they were in the late 1990s, and that it was unlikely for CFTC to complete its mission to rewrite swap regulations in time.
CFTC is exploring the creation of a new “Division of Market Data Collection and Analysis”, which would develop its own algorithms to keep in pace with electronic trading and reduce its dependence on exchanges for data dissemination.
Provided By: Equity Research Desk, www.erdesk.com
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