EXCHANGE NEWSWIRE, 4 May 2011
LME sent a circular to members stating its intention to build its own clearing house, a move it considers as earnings-accretive. This came as a surprise to its current clearing service supplier LCH.Clearnet, which stated that it “has not received notice from the LME or indeed any indication regarding the likely timeframe”.
NYX CEO Duncan Niederauer is meeting shareholders almost daily to lobby support for the deal with DB1. Niederauer said the exchange will “hear them out and see what’s required to get the vote done on July 7” and that “shareholder value creation is our number one objective”. He also said that neither NYX nor DB1 will “front-run” regulators in seeking approval for their deal ahead of the antitrust probe.
NYX European chief Dominique Cerutti said that the NDAQ-ICE project “would dismantle” NYX, and “Paris-listed derivatives, commodities contracts such as milling wheat and rapeseed, would most likely move to London on ICE’s platform”, resulting in job cuts at its Paris operations. Cerutti also reaffirmed his belief that the DB1 deal would be better in the long term, as the NDAQ-ICE plan focuses “strictly on the creation of very short term value”.
ICE reported 1Q 11 diluted EPS of $1.74 (+27% y/y) on revenues of $334.3m (+19% y/y) and expenses of $131m (+11% y/y). Excluding certain acquisition-related transaction items that were included, 1Q11 diluted EPS was $1.77 (+30% y/y). Transaction and clearing revenues were $299m (+19% y/y). ADV in the futures segments for the quarter was 1,596,165 contracts (+24% y/y), and average daily commissions (ADC) for its OTC energy business was $1.6m (+18% y/y).
ASX will end its two-decade monopoly now that the government granted approval for competition in the exchange industry. According to Assistant Treasurer Bill Shorten, “the new market license will be granted subject to Chi-X meeting strict conditions in relation to outsourcing, including the establishment of an adequate compensation fund and robust testing of its technological structure.” Shorten also said that ASIC will work with market operators to smoothen the transition to competition.
BM&FBovespa launched four new real-time indices which will allow the creation of ETFs. The indices include the Brazil Broad-Based Index, the Dividend Index, the Basic Materials Index, and the Public Utilities Index, which brings the total numbers of indices to 22.
Chi-X Australia selected Access Networks & Communications as its alternative data center provider to Equinix. Chi-X Australia COO Peter Fowler said Chi-X will leverage on its alternate facility “as we seek to replicate Chi-X’s proven business model in the Australian market”.
LCH.Clearnet teamed up with Traiana to provide an integrated STP solution for clearing equity trades related to OTC CFD equity swaps. The integration of LCH.Clearnet will see equity trades which traditionally had to be settled bilaterally between brokers and swap counterparties now be easily submitted to the clearing house to eliminate counterparty risk.
Provided By: Equity Research Desk, www.erdesk.com
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