EXCHANGE NEWSWIRE, 6 June 2011
LSE-TMX merger: the Canadian Commissioner of Competition issued a “no-action letter” regarding the proposed merger and commented that she does not intend to challenge the deal. This fulfils one of the merger conditions that Competition Act clearance must be obtained, but the deal faces a separate review under the Investment Canada Act, with the federal industry minister to decide if the merger will be a net benefit to Canada. Shareholders will vote on the merger on June 30.
CBOE: SEC extended its review of CBOE’s application to trade its new S&P 500 index option product, SPXpm, on the C2 options exchange. SEC will hold another public comment period on the filing lasting 30 days as part of the “instituting proceedings” process, followed by a 15-day rebuttal period.
Omega ATS selected Equinix to optimize its performance and to connect to global services and trading partners, and Omega ATS has located in Equinix’s Toronto-based TR1 International Business Exchange (IBX) data center.
OSE President Michio Yoneda said that a merger with TSE would be difficult if “TSE wants a listing first”. Yoneda also added that OSE aims to conclude talks with TSE this month. TSE spokesman Kazuhiko Yoshimatsu confirmed that TSE’s remains firm that any merger must come after TSE’s shares are offered publicly and its main priority is to list “as soon as possible”.
DGCX reported May volumes of 237,920 contracts (+70% y/y) worth US$11.76b, a record high value. Currency futures volumes in May were 874,609 contracts (+72% y/y), with INR futures expanding by +1,413% y/y. YTD 2011 volumes on DGCX are a total of 1,148,833 contracts (+55% y/y). YTD, gold futures volumes are at 60,638 contracts (+39% y/y), and silver futures are at 7,937 contracts (+46% y/y).
Cinnober launched TRADExpress Ultra, the world’s fastest matching engine with an average door-to-door latency of below 10 microseconds with full redundancy.
BIS said that the world’s top 14 derivatives dealers may require additional cash to handle an increase in transaction clearing, particularly in volatile markets. BIS also commented that G14 dealers could face a cash shortfall when daily margins are increased, and “these margin calls could represent as much as 13% of a G14 dealer’s current holdings of cash and cash equivalents in the case of interest rate swaps”.
SEBI now allows India’s stock exchanges to introduce one or more liquidity enhancement schemes (LES) in their equity derivatives segments. THE LES can be discontinued at any time with an advance notice of 15 days, but it must be discontinued as soon as the average trading volume of the stock exchange in the last 60 trading days reaches 1% of the market capitalization of the underlying, or six months of the scheme’s introduction, whichever is earlier.
Provided By: Equity Research Desk, www.erdesk.com
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