EXCHANGE NEWSWIRE, 31 May 2011
NYX is seeking to set up two parallel clearing services should it succeed in its joint proposal with Markit to buy LCH.Clearnet as well as merge with DB1. A Reuters source said that NYX “would be looking to keep its existing plans to move listed derivatives to Eurex Clearing”, which will “act as the clearer of choice for instruments traded on an exchange, while LCH.Clearnet will become the venue” for “off-exchange or OTC markets”.
LSE stated that “it is not engaged in any discussions” with LCH.Clearnet “regarding a possible transaction”, although LCH.Clearnet confirmed it received “various proposals” from exchange operators “indicating an interest in pursuing some form of possible business combination or other cooperation”.
Direct Edge will reduce volume requirements for the $0.0032 rebate to 10m shares, and also decrease the February 2011 baseline requirement from to none from 1m shares. Internalized orders will be charged at $0.00035 per share per side (flag E), and the charge for more than 10m shares per day on EDGX (flags B, V, Y, 3 and 4) will be dropped to $0.0001 from $0.00035. These changes will be implemented starting June 1, pending SEC approval.
Boerse Stuttgart will revise trading time to 8am CET from the 9am CET currently starting June 1, for German DAX, MDAX, SDAX and TechDAX shares, as well as for international equities, participation certifications and debt instruments.
Mercado Integrado Latinoamericano (MILA) launched an order routing connection which allows access to Bolsa de Comercio de Santiago, Bolsa de Valores de Colombia (BVC) and Bolsa de Valores de Lima (BVL) through a single access point. To connect to the hub and offer trading for buy-side clients across each market, brokers must have operations licensed by each of the exchanges, or sign an MOU with licensed brokers tin other participating countries. Trading and post-trade processes will be conducted in accordance to rules of the national exchange that lists the stock being traded.
TMX: Montreal Exchange launched an SXM Mini Futures contract on the S&P/TSX 60 Index. The contract represents a quarter of the value of the current S&P/TSX 60 Index Standard Futures contract and will commence with the June 2011 contract (M11) with regular quarterly expiries subsequently.
SGX will reduce the minimum bid size for securities by as much as 80% on July 4, in order to lower investors’ annual trading costs by as much as S$1.7b (US$1.4b). Head of securities at SGX, Chew Sutat, said that “tighter spreads will encourage investors to increase their participation in SGX”, which will then “enhance liquidity here in Singapore”.
HKEx is seeking feedback from market participants on whether it should introduce after-hours trading, which will begin half an hour after the market closes, and run until 11:15pm local time (15:15 GMT). Participants may submit comments on the HKEx website until the July 8 deadline.
BATS Global joined the Correlix RaceTeam latency measurement service which will be launched this year to provide independent insight into all BATS US-based markets, which include BATS Options and BATS Equities Exchanges (BZX Exchange and BYX Exchange).
Inner Mongolia’s government approved the establishment of a rare earth exchange in Baotou city, but the exchange is only allows to deal with rare earth spot transactions and cannot deal in futures trading. The exchange is also expected to have a registered capital of no less than CNY100m (US$15.4m).
Instinet launched a new Australian liquidity pool called BLX Australia. BLX, which is also operated by Instinet in US and Canada, aggregates multiple buy- and sell-side orders and consolidates them into block-sized trades, and the model is designed to increase trade size by appealing to both passive block traders as well as algorithmic traders.
Thomson Reuters will now include Treasury BondSpot Poland (TBSP) data from WSE’s distribution network in its data information services. The TBSP data feed also includes information of orders, transactions, TBSP fixings, real-time values of the TBSP Index, as well as data on Treasury Bills.
Financial Technologies reported FY ending March 31 net profit of INR 206 crore (+9% y/y) on total operating income of INR 358 crore (+7% y/y) and EBITDA of INR 242 crore (+11% y/y). The Board recommended a dividend of 100% of the face value of INR 2 per share.
MiFID’s revised proposals will be delayed till 3Q 2011 at the earliest, and the European Commission expects to released a timetable by the end of this week. Dates will not be set in stone according to an EC spokesman who said that “the process to adopt a proposal is of course a political one and thus subject to changes”.
SEBI started an investigation into the use of fake IPO bids to influence prices in a number of IPOs over the past few years. The probe will focus particularly on IPOs where bids were withdrawn during the time the offers had remained open, or cases where shares plummeted sharply on the first day of listing.
Provided By: Equity Research Desk, www.erdesk.com
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