EXCHANGE NEWSWIRE, 18 April 2011
NYX expects NDAQ to offer a “reverse break-up fee” as high as $2b to guarantee that its takeover bid will pass antitrust regulatory scrutiny before engaging in deal talks, according to Reuters sources.
NDAQ may sell NYX’s Amex to provide a solution should divestures be required to overcome antitrust concerns as well as to provide the funds for the big break-up fee, according to a source interviewed by Reuters.
NDAQ’s debt-status may be downgraded to “junk” should it substantially raise its bid for NYX. Senior VP at Moody’s banking team Peter views the amount of debt NDAQ is “currently raising as being more than a short-term blip in terms of the leverage”. However Nerby also said that NDAQ “has demonstrated a past ability to pay down debt and if they could execute this transaction, they could pay down their debt load reasonably quickly”.
NYX launched a “supplementary liquidity provider” (SLP) scheme across its European cash equities markets. The SLP is similar to NYSE’s “direct market maker” (DMM) program, and provides a new membership category in which traders commit to providing prices at certain times of the day in return for cheaper transaction fees. BATS Europe CEO Mark Hemsley criticized the SLP for a lack of transparency because fee concessions for scheme members were not made public.
Chi-X Europe CFO Kevin O’Keefe will depart the firm after BATS completes the acquisition of Chi-X Europe. O’Keefe is the second to leave the company in this acquisition after Chi-X CEO Alasdair Haynes.
SGX launched its co-location service which allows customers to experience connectivity speeds at least 250 times faster than conventional access methods in Singapore. At least 50 market participants, including brokers, proprietary trading firms, funds and software vendors have subscribed to the service and 30% more space has been allocated to meet growing demand for the service.
Eris Exchange appointed Kevin Wolf as a Managing Director and Head of Product Development. Wolf was previously a Managing Director at Bank of America Merrill Lynch and has more than ten years of experience working with IR swaps end users.
Taiwan Stock Exchange (TSWE) Chairman Schive Chi said that the exchange does not “have the relevant regulations to allow” merger and acquisition plans, and that it aims instead to boost its alliances with other Asian exchanges such as SSE and TSE through ETF cross-listings.
AMTD reported FY2Q11 EPS of $0.30 (+11% y/y) on revenues of $718m (+13% y/y) and operating expenses of $453m. AMTD attributed its jump in revenue and profit to increased trading commissions amid rising stock markets. A DARTs record of 439 was set for the quarter, and net new assets reached a high of $11.5b, at an 11.9% annualized growth rate.
IOSCO appointed Maria Helena Santana, Chairperson of CVM, as the Chairman of the IOSCO’s Executive Committee, starting April 21. Santana will serve until 2012 when IOSCO merges its constituent committees into the board.
SEC’s and CFTC’s deadline to write new derivative market rules may be extended to 2012 after Republican lawmakers of the Financial Services and Agricultural committees introduced legislation to extend the deadline, although the Senate and the White House will have to approve before the legislation will be made law.
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.