EXCHANGE NEWSWIRE, 10 May 2011
NDAQ and ICE wrote a letter to NYX shareholders urging them to request for more time to consider the proposed merger with DB1, on which NYX had “rushed to judgment”. The letter also stated that “you won’t know on July 7 whether regulatory approvals for the DB1 transaction can be obtained or, even if obtained, the conditions or remedies regulators may require in order for the transaction to close, which may reduce the value of the combined organization.” NDAQ and ICE have also been holding discussions with merger arbitrage hedge funds to convince them to vote against the proposed DB1-NYX merger.
CME will raise margin requirements for futures trading in a wide range of oil products for the fourth time due to oil market price hikes of 6%. The minimum amount of cash that must be deposit when borrowing from traders to trade crude will be increased to $8,438 per futures contract, from $6,750, after the close of trading today.
CME will repurchase up to $750m of shares over the next year “subject to market conditions”.
ICE will launch 49 new energy contracts for global oil and refined petroleum products, North American natural gas and North American power on May 23. This brings ICE’s range of cleared OTC energy contracts to 470, including more than 375 new cleared OTC contracts since ICE Clear Europe’s launch in November 2008.
DTCC’s discussions with EMCF to buy a controlling stake in the Netherlands-based clearing house have collapsed, according to Wall Street Journal sources. The reason for failure of the talks is cited as disagreement on EMCF’s price, and because DTCC stated it would be able to achieve the cost synergies required to make the deal worthwhile.
WSE reported 1Q 2011 EPS of PLN0.92 (+45% y/y), on total revenues of PLN69.2m (+28% y/y), due to trading revenues of PLN54.8m (+34% y/y) and revenue from transaction in shares of PLN13m (+49% y/y). Operating profit was PLN38.5m (+50% y/y).
SGX aims to boost trading volume by attracting HFT, which currently accounts for 30% of its derivatives trading volume. SGX Executive VP said “to support the capital markets in Singapore, growing liquidity is first and foremost” and “HFT could potentially support growing liquidity”. SGX also plans to reduce tick sizes, increase its product range to include metal futures, as well as be the first Asian market to introduce pre-extension checks at the exchange level for derivatives markets in 2H 2011.
ConvergEx plans to raise up to $400m in an IPO, and the IPO proceeds will be used to buy back units of ConvergEx from existing group members and to repay debt.
China Securities Regulatory Commission (CSRC) issued a directive allowing qualified foreign investors (QFIIs) to trade index futures in China. QFIIs may only engage in hedging in trading index futures, and should submit their new investment plans to CSRC and the State Administration of Foreign Exchange (SAFE).
European Commission: a UK-German amendment to the EC’s derivatives market reforms proposals, or the European Market Infrastructure Regulation (Emir), urged that foreign clearing houses wishing to operate in the EU should be authorized by EU member states’ national regulators and not by the region’s regulator European Securities and Markets Authority (ESMA).
Provided By: Equity Research Desk, www.erdesk.com
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