EXCHANGE NEWSWIRE, 5 May 2011
DB1 filed formal documents to seal its deal with NYX, and DB1 shareholders will be able to tender their shares to Alpha Beta Netherlands Holding, the DB1-NYX joint holding company, during the period which started on May 4 ending July 13. Acceptance of the exchange offer will be performed through custodian banks.
ICE described the DB1-NYX proposal as “absurd”, “risky” and full of “empty promises”, and ICE CEO Jeffrey Sprecher said that NYX attacked the “superior proposal” by NDAQ and ICE because “the alternative is to acknowledge and address the serious deficiencies” in the DB1 takeover. Sprecher also commented that under the DB1 bid, NYSE Liffe, which ICE has spent a decade pursuing, would likely be “moved to Frankfurt and be subsumed as part of a European product set within DB1”.
ICE Trust is revamping and seeks to be compliant with the Dodd-Frank reforms by mid-July, despite current uncertainty on when the final reforms will be finalized. ICE CEO Jeffrey Sprecher also said that while “we don’t have a large assumed number from buy-side clearing…. I suspect we will see that migration this year”.
CBOE reported 1Q 11 EPS of $0.36 (+44% y/y), on revenues of $124m (+23% y/y) and expenses of $66.5m (+7% y/y). CBOE’s 1Q 11 ADV was 5.1m contracts (+12% y/y), and average transaction fee per contract slide 5% y/y.
Baltic Exchange has gained FSA approval to run a platform, called “Baltex” for centralized electronic trading of dry freight derivatives, which will be launched soon with support from some brokers. Switzerland and Singapore have also given provisional approval.
HKEx will introduce synthetic futures trading in its stock options market on May 9, allowing investors to use synthetic futures strategies in five active stock option classes, including China Construction Bank, China Life Insurance, China Mobile, HKEx and HSBC.
FXCM partnered with Dow Jones Indexes to introduce the Dow Jones FXCM Dollar Index, on which a tradable basket will be launched.
SEC Chairman Mary Schapiro said that the $74m congressional funding boost will be used to hire derivatives specialists and address SEC’s “capacity gap”, as well as to make investments in computer technology. Schapiro will urge senators at today’s Senate Appropriations subcommittee hearing to approve US President Obama’s 2012 $1.4b budget request for SEC.
CFTC Gary Gensler has plans to create a division to review market data, which is expected to improve oversight and enforcement of the derivatives markets. Gensler will ask senators today to approve a 2012 budget proposal of $308m, as “it is important that we align the CFTC’s funding with its expanded mission” of regulating the swaps market.
Provided By: Equity Research Desk, www.erdesk.com
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