EXCHANGE NEWSWIRE, 17 June 2011
DB1-NYX merger: DB1’s and NYX’s boards of directors approved the proposed special dividend totaling $904m which will be distributed to shareholders after the merger is completed. DB1 shareholders would receive EUR2/share, while NYX shareholders would receive EUR0.94/share. DB1’s German stakeholders also criticized comments by NYX’s COO Lawrence Leibowitz, who hinted earlier this week that there would be more job losses outside of US should be merger proceed, raising “concerns” for DB1 shareholders.
NDAQ confirmed its bid for a minority stake in LCH.Clearnet. NDAQ CEO Robert Greifeld commented that “we understand the financial motive for clearing but we hope there is an opportunity for a more open and competitive model”. He also added that LCH’s SwapClear interest rate clearing service could be merged with the NDAQ’s majorly owned but independently-operated unit, International Derivatives Clearing Group (IDCG).
LSE-TMX merger: Glass Lewis, an independent governance analysis and proxy voting firm, published a report recommending the merger. The report stated that “in light of our approval of the LSE-TMX merger from both a strategic and financial perspective, our consideration for the factors discussed, and the unanimous support of the board, we believe the proposed merger with LSE is in the best interests of shareholders”.
LSE CEO Xavier Rolet said the exchange is “reviewing the situation” on its TMX bid as it considers whether it should sweeten the bid for TMX shareholders to vote in favor of the merger. Rolet also said that he was not ruling out any course of action.
ICE Futures Europe began consultations to amend its gasoil futures specifications, and this change is “likely to include, but will not necessarily be limited to, a reduction in the sulfur content from the current specification of no higher than 0.1%.” The proposal will also implement changes from the January 2012 contract and the exchange may put the new requirements in place starting January 13.
BM&F Bovespa’s Board of Directors approved the buyback of 30m common shares representing 1.5% of the company’s free float. This new share buyback program will start on July 1 and end on December 31, after the current program expires on June 30.
CME will lower the initial and maintenance gold margins by 10% after markets close on Monday. The initial and maintenance margin requirements will decrease to $6,075 and $4,500 per futures contract respectively.
CFTC’s budget would be cut by 15% according to a bill passed by the US House, reducing the regulator’s budget to $172m from its current level at $202m. Representative Scott Garrett also attached an amendment which would require regulators to have data collection rules in place for at least a year before CFTC can complete regulations governing how large trades in the swap market would be transacted.
European Parliament’s top legislator for financial reforms, Werner Langen, warned US Treasury Secretary Tim Geithner that there is a risk that Europe could end up dividend on how to enforce more competition and transparency in derivatives markets. Langen also said that Geithner’s attempt to influence Europe to extend its scope of G20 reforms beyond OTC derivatives to exchange-traded contracts was “not in line with the G20 agreements”.
Provided By: Equity Research Desk, www.erdesk.com