EXCHANGE NEWSWIRE, 20 April 2011
NDAQ reported 1Q 2011 net income of $104m (+70% y/y), on revenues of $415m (+15% y/y) and $9m in expenses related to the proposed NYX merger and strategic initiatives. Net exchange revenue, NDAQ’s largest bigger contributor, contributed $281m (+17% y/y), and transaction services revenue contributed $195m (+26% y/y).
NDAQ-NYX merger: the US Department of Justice (DOJ) is conducting an antitrust review on the merger, and is asking market participants what the effects of a takeover of NYX on competition in equity listings will be. The “review can be quite significant” as “antitrust regulators have legal authority to sue to block transactions they deem anticompetitive”.
LSE-TMX deal: Ontario legislators proposed nine tough conditions to make changes to LSE’s bid for TMX, and refused to comment on whether they supported the deal. The terms recommended by the Ontario committee, which centered on regulation, structure, jobs, decision-making, governance and the mining sector, may give the deal in its current form limited chances of success.
LSE CEO Xaiver Rolet said that Canadians will form the largest national group on the new entity’s board should the merger with TMX is approved, and that Canadians will have a minimum of three guaranteed seats “in perpetuum”.
Chi-X Global is in discussions with four trading firms including Getco, Quantlab, Deutsche Bank and Bank of America Merrill Lynch regarding the firms taking a stake in the MTF, in a deal which values Chi-X Global at around $50m.
CBOE will soon launch futures on several Radar Logic 28-Day Real Estate indices (RPX), or daily spot market equivalents for housing asset valuations covering major US metropolitan centers, pending regulatory approval.
HKEx’s first RMB IPO by Hui Xian property investment trust raised RMB 10.48b (USD 1.6b), a result which disappointed given the deal’s scarcity value and the large amount of publicity for the offering, according to a Financial Times source. The IPO had been priced at the lower end of the range from RMB5.24 to RMB 5.58 per share.
SGX CEO Magnus Bocker said that he “felt no pressure at all” to deliver another deal after despite the $12m in merger costs spent on the failed attempt to acquire ASX. Bocker also repeated that his purpose was “to deliver value to our customers and our shareholders”.
US Deputy Treasury Secretary Neal Wolin rebutted critics of the Dodd-Frank Act, and commented that “we will continue to oppose efforts to slow down, weaken, or repeal these essential reforms”, as “we can’t afford another crisis”.
Association for Financial Markets in Europe (AFME) released a research report saying that the actual size of Europe’s OTC equity market is nearer 16% than the widely-estimated 40%. The report also stated that the discrepancy in actual and estimated figures are due to the failure of MiFID reporting rules to difference between genuine and technical trade reporting, which results in duplicate reports of the same trades.
Provided By: Equity Research Desk, www.erdesk.com
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