fmxExchangeConnect - EXCHANGE NEWSWIRE, 14 June 2011

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EXCHANGE NEWSWIRE, 14 June 2011

June 14 2011, 09:45

EXCHANGE NEWSWIRE, 14 June 2011

NYX COO Larry Leibowitz said that the deal with DB1 would make the exchange more competitive against rivals targeting emerging markets and derivatives, and that NYX is now “better positioned” to take advantage of global industry consolidation. Leibowitz also expects “there will be more jobs lost outside the United States in the short run. There will be few jobs lost inside the United States, and then there will be growth of jobs in the United States and abroad as well”.

CME plans to sell most of its CBOT building, but it aims to secure a 15-year lease on the floor space and continue to operate the trading pits. A CME spokeswoman reiterated the exchange’s commitment to floor trading as long as there is demand for it. CME CFO Jamie Parisi, said that the reason for the sale was to exit the real-estate business and free up capital to reinvest in its core derivatives business, but CME reaffirmed its desire to stay in Chicago despite concerns about Illinois’ corporate tax rate being too high.

Chi-X Europe experienced its second outage in less than a month on Monday. The reason for the outage was due to a technology change on some switches from a third party technology vendor, and trading had to be halted in order to fix relatively slow trading speeds. Chi-X Europe’s previous outage occurred in May, and was the MTF’s third outage in four years.

ASEAN Exchanges Collaboration, including Bursa Malaysia, PSE, SGX and SET, is expected to go live by 1Q 2012. SunGard was selected as the technology provider of the business-to-business intra ASEAN cross-border order routing and trading platform that will connect the participating markets and allows members and investors to access the markets via a single platform.

Fidessa published a paper entitled “Building profits from analytics” stating that liquidity fragmentation and HFT flow have made the execution cost analysis (ECA) a crucial tool for brokers in gaining a sell-side competitive advantage. The paper also looks at how ECA in the US can provide the sell-side with information required to improve margins, grow profits and develop new business.

CFTC Chairman Gary Gensler said that the regulator will consider a proposal exempting swaps from the Dodd-Frank Act rules which are set to be implemented in mid-July. CFTC and SEC are still seeking comment on the rules, and will miss the scheduled completion deadline as “there is too much at stake” for some “questions to go unanswered”.

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