EXCHANGE NEWSWIRE, 9 May 2011
TMX: a group of Canadian Banks are in discussions with national pension funds on alternatives to LSE’s bid in order to keep TSX locally-owned. The talks caused TMX’s share price to rise above LSE’s all-stock offer on May 6 for the first time since the deal was announced, as arbitrageurs bet that there will be a competing bid once LSE gains regulatory approval, according to Bloomberg data.
LCH.Clearnet and Chi-X Europe launched the first clearing exchange for contracts for difference (CFDs), a move which is expected to simplify trading of CFDs for fund managers.
NYX Deputy CEO Dominique Cerutti said that “there’s no doubt that, like in many mergers, some jobs will be eliminated, but if you take the €400m synergies, most of the savings will come from infrastructure”, commenting the deal with DB1 would eliminate less jobs than NDAQ’s and ICE’s rival bid.
National Stock Exchange of India (NSE) CEO Ravi Narain said NSE is seeking to form ventures with other exchanges rather than to merger or acquire. The exchange may launch INR-denominated derivatives based on the FTSE 100 index, S&P 500 index, and Dow Jones index, and NSE will also expand into IR and currency derivatives.
TWSE Chairman Schive Chi dismissed the threat that consolidation of other Asian exchanges would threaten the Taiwan-based exchange, as Asian exchanges face tighter regulatory control and are more fragmented than those in Europe and America. Chi also said that “some mergers are done simply for the sake of merging” and did not deliver greater synergy than if the exchanges had remained separate.
HKEx appointed Joseph Meyer as its first Chief Administrative officer (CAO). Meyer has 30 years of experience in the financial services industry and was most recently the Representative Director of Chi-X Japan, and previously COO of Shinsei Bank’s institutional banking division in Tokyo.
Atrium Network upgraded its connectivity to Fidessa through a high-speed 2 x 1 Gbps interconnectivity link, which offers lower latency and higher throughput for trading participants.
European Commission will discuss a compromise deal banning naked short selling in cash government bonds in Europe, and the proposals involve relaxing the ban should liquidity in government bond markets be seriously affected.
SEC Chairman Mary Schapiro said that HFT traders will face more scrutiny, and the regulator is considering whether to impose trading obligations on the firms, and that a reassessment of “entire regulatory structure” is necessary to test if algorithms or strategies used to generate and send orders are “programmed to operate properly in stressed market conditions”. Schapiro also stated that “appropriate benefits must be given to offset any obligations we may decide to impose”.
SEC’s proposal to move more trading from alternative venues such as “dark pools” to exchanges received criticism from banks and trading firms. Associate director of SEC trading and markets David Shillman said that among the reforms proposed, the “trade at” rule which will require non-exchange venues to improve on the displayed market price is “controversial”. SEC is currently researching the impact off-exchange trading has on volatility and less-liquid stocks, and hopes to have “indication that price discovery is suffering”.
Provided By: Equity Research Desk, www.erdesk.com
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