fmxExchangeConnect - EXCHANGE NEWSWIRE, 19 May 2011

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EXCHANGE NEWSWIRE, 19 May 2011

May 19 2011, 10:09

EXCHANGE NEWSWIRE, 19 May 2011

NYX’s plan to sell half of its Amex options exchange to a group of Wall Street firms will be further examined by SEC until July 1. SEC requires the additional 45 days to consider the implications of the deal, which would share would share ownership in Amex exchange with some of its largest users. Deal terms state that Goldman Sachs and Citadel will each get a nearly 15% stake, Bank of America, Citigroup, AMTD and UBS would each hold around 5%, and Barclays would get 3%.

LSE is speculated as being the next bid target by NDAQ after NDAQ and ICE withdrew their bid for NYX. NDAQ CEO Robert Greifeld had failed to acquire LSE in 2007 and the Financial Times states that a combination with LSE would give NDAQ a strong foothold in Europe.

NDAQ CEO Robert Greifeld’s deal-making ability is being questioned by shareholders after the bid did not gain regulatory approval. Shareholders said that Greifeld had been overly confident that the deal with NYX would happen.

CBOE’s shareholders voted at the annual stockholders meeting to endorse the executive compensation paid to CBOE’s executive officers, to endorse a two-year frequency for a vote on its executive compensation program, to approve the amended and restated CBOE long-term incentive plan, and to ratify the appointment of Deloitte & Touche as CBOE’s independent registered public accounting firm for FY 2011.

CBOE will offer electronic trading of S&P500 Index options on its C2 market from June 6, pending SEC approval. The options were previously traded solely on CBOE’s face-to-face trading floor.

Eris Exchange launched its Eris Swapbook electronic trading platform for trading of OIS-discounted Eris IR swap futures which will be cleared by CME Clearing.

Pipeline will launch its Block Board MTF in Europe on May 26. The MTF will have more than 100 clients from its launch, with an approximate 50/50 split of both buy- and sell-side participants. Executive Director Marcus Hooper also added that the majority of buy-side clients were long-only asset management firms.

Direct Edge appointed Tom McManus as its Chief Compliance Officer and Regulatory Officer starting July 11, when McManus will depart his role as the Head of Compliance, Americas and Chief Compliance Officer of Barclays Capital. Prior to that, McManus was a partner with Morgan, Lewis & Bockius LLP in New York.

ICAP reported FY 2010/11 basic EPS of GBp28.7 (+59% y/y) and adjusted basic EPS of GBp39.9 (+22% y/y). Continuing operations revenue were GBP 1,741m (+8% y/y), with electronic revenue at GBP 302m (+20% y/y) and post-trade risk and information revenue at GBP 184m (+30% y/y). A final dividend of GBp14.68 per share was recommended by the directors, and will be paid on August 19, with the full year dividend being GBp19.95 (+14% y/y).

SCHW’s annual general shareholder meeting focused on questions regarding the OXPS deal and the reason for SCHW’s decision. CEO Walt Bettinger responded stating that “options are used by our most valuable clients” and after a “logical analysis of buy vs. build”, “we felt buying was our better option”.

SEC is investigating electronic exchange system failures at venues such as NDAQ to decide whether internal controls are sufficient, according to the Financial Times. The probe by SEC’s market abuse unit is in response to an exchange industry review after last year’s May 6 “flash crash”, and includes scrutiny on whether exchange operators are complying with rules that require quote feeds to be delivered to all investors simultaneously.

Provided By: Equity Research Desk, www.erdesk.com

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