EXCHANGE NEWSWIRE, 27 April 2011
NDAQ and ICE issued an open letter urging NYX shareholders to request that NYX board directors discuss the NDAQ-ICE joint bid. NDAQ CEO Bob Greifeld and ICE CEO Jeffrey Sprecher asked shareholders in the letter to choose between “engagement on a financially superior proposal” and “a story about why an inferior transaction is really ‘superior’”. The letter also stated that the NYX “board is ignoring corporate governance best practices and the market reality”.
NYX CEO Duncan Niederauer said there are more options to improve the deal with DB1 to make up for the gap in value between this and the NDAQ-ICE bid. Niederauer emphasized that there were “a lot of things that can be done to take care of shareholders”, and that he would reveal more details about the DB1 merger during this Thursday’s shareholder meeting, before the deal gets voted on in July.
CME may increase the limit on daily price moves for US corn futures to $0.50 from $0.30 in response to the record high prices. CME spokesman said the exchange is “considering and talking with market participants” about increasing trading limits which will allow quicker price response to changes in factors affecting supply and demand, but could also result in increased volatility. Limits were last increased to $0.30 from $0.20 in March 2008.
CME will launch weekly grain option contracts on corn, wheat and soybeans starting May 23, subject to the rules and regulations of CBOT. These weekly options “will provide customers with much greater flexibility to manage” short-term event risk and to “benefit from the lower cost associated with short-dated options”.
LSE’s market share in UK share trading will likely slip to less than 50% in April for the first time in its history after hovering slightly above 50% in the last months. Traders cite the reason for LSE’s market share drop to be due to HFTs moving to other European markets as “HFTs are struggling to make money on the LSE because of the already highly competitive nature” of LSE.
NDAQ partnered with vendor Xignite to expand its cloud service for historical stock trade and quote data, Data-On-Demand. NDAQ global data products SVP Brian Hyndman said “the ability to get customized data sets automatically” is a competitive advantage for HFT firms, which is the service’s main target.
OSE reported FY2010 EPS of JPY 33,911 (+111.3% y/y) on revenues of JPY 22.984b (+27.1% y/y) and selling, general and administrative expenses of JPY 15.401b (+0.7% y/y).
HKEx CEO Charles Li said he is waiting for a “seismic change” which will leave to greater outbound investment from China once Chinese citizens are allowed to invest with more liberty abroad. Li also stated that the key for HKEx to secure demand from the mainland’s investors is to offer RMB products which are “currency neutral” and do not have the FX-risk.
Hong Kong Mercantile Exchange (HKMEx), backed by Chinese state companies and Russian billionaire Oleg Deripaska, will debut in May with gold-linked futures. HKMEx chairman Barry Cheung hopes the new platform “will offer Asia a bigger say in setting global commodity prices”, and that HKMEx will expand later into previous and base metals, energy, agriculture and commodity indices.
Galaxy fixed income MTF, which is owned and operated by systems vendor TradingScreen, and will be launched in June and chose LCH.Clearnet to be the designated clearer.
TradeStation reported 1Q 2011 EPS of $0.03 (-57% y/y) on revenues of $32.1m (flat y/y). The large difference in net income was attributable an increase of $2.7m in total expenses, mainly due to a $968K increase in depreciation and amortization, an $860K increase in market expenses, a $500K increase in employee compensation and benefits, as well as a $326K increase in data center and communication costs.
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.