EXCHANGE NEWSWIRE, 2 June 2011
NYX confirmed that it intends to acquire LCH.Clearnet, with Markit Group leading the bid. Terms of the proposed deal would see NYX remaining as a minority owner in the UK-based clearer but with a bigger stake than it presently has.
TMX stated that it had held talks with a third party for almost a year before regulatory and valuation concerns caused the deal to fail, and before LSE’s proposal to acquire TMX, on which shareholders will vote on June 30.
CME will launch Euribor futures and options on its Globex platform in 2H 2011. This move is “in response to strong customer demand for the ability to trade US and European STIR products on the same platform”, which will create “operational efficiencies, trading and spreading opportunities”, according to CME Managing Director and COO Bryan Durkin.
LCH.Clearnet appointed Susan Milligan, to be its head of US public affairs, as the UK clearer focuses more resources in the US with its new OTC IR swaps clearing service. Milligan previously worked with the Options Clearing Corporation (OCC) for years and was responsible for tracking the implementation of the Dodd-Frank Act’s provisions on clearing and OTC derivatives.
EEX will open an office in London on July 1 in order to be in closer proximity to its UK-based customers. The move will also support the German energy exhange’s bid to host UK auctions from 2013, according to EEX’s interview with Reuters.
MILA partnered with S&P Indexes to jointly develop, administer and market the indexes for the stocks of the Latin-American integrated market. The first index, S&P/MILA 40 Index, will be launched in a few weeks and will be a market capitalization index based on the most liquid and representative stocks in the market, and will include approximately 85% of MILA’s market capitalization, and more than 75% of the stocks will have a daily liquidity of more than US$1m.
BMV saw a record in daily trading of p$22.2b (US$1.9b) on May 31, due to the rebalancing of the MSCI Index.
Chi-X Australia is expected to launch in 4Q 2011. There are currently around 15 market participants who have confirmed their intention to participate in the launch, including Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, Instinet, ITG, JP Morgan, Macquarie, Merrill Lynch, and UBS, among others.
SGX is consulting the public on the publication of real-time Indicative Equilibrium Prices (“IEP”) and the random end to the pre-close phase of the closing routine. The consultation paper is available on the SGX website and the public may send comments and suggestions until June 15.
Wholesale Markets Brokers’ Association (WMBA) expressed fears that a takeover of LCH.Clearnet would turn the clearer into a for-profit organization that would allow shareholders to claim the returns that were previously reinvested in the business or given to members. CEO of WMBA Alex McDonald also stated that “we would have concerns if an exchange tried to incorporate LCH.Clearnet into a vertical silo as part of a for-profit model”.
Bank of England’s Deputy Governor Paul Tucker said that securities clearing houses should act as market watchdogs but he is “not convinced that that is sufficiently recognized by clearing houses or by standard setters”. Tucker also warned that clearinghouses should not assume they will receive a taxpayer bailout if they fail. EuroCCP CEO Diana Chan responded saying that “I don’t want to regulate because I don’t have the powers to regulate”.
Provided By: Equity Research Desk, www.erdesk.com
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