EXCHANGE NEWSWIRE, 22 June 2011
CME received an appeal from the governor of Florida to move its corporate base to Florida. The governor said that Florida’s lower corporate tax rate, which he ultimately aims to phase out, and lack of individual income taxes will help CME reinvest savings on “those additional state taxes to hire more employees and expand operations”.
CME: CFTC ruled that CBOT did not violate Core Principle 18 of the Commodities Exchange Act when the CBOT did not accept ELX’s EFF trades for clearing.
LCH.Clearnet may expand to Australia as regulatory changes allow greater competition. LCH.Clearnet’s managing director Alberto Pravettoni told Thomson Reuters that “Australia is a very important market and we follow developments very closely”.
TSE will extend its trading hours starting November 21, after its original May date was abandoned following the power disruption caused by the March 11 earthquake. TSE will reduce its lunch break to 1 hour from 90 minutes, with the new timing to be from 11,30am to 12,30pm, and President Atsushi Saito expects the increased hours to boost trading by 6%.
MSCI will extend to December the review period for the possible upgrade of the MSCI Qatar and UAE indices from frontier to emerging market status.
CFTC’s oversight over OTC commodity transactions with retail customers will result in some dealers to suspend US retail trading, such as GCAP-owned Forex.com, which will discontinue metals trading for US residents by July 15.
SEC received a letter from NYX, NDAQ, BATS Global and Direct Edge asking to delay the “naked access” ban till November 30 instead of being implemented in July. The letter also argued the exchange-owned internal broker-dealers are not able to deal with certain aspects of the rule, and the delay “would enable us to finalize system changes so that this timing routing function can continue…without having a detrimental effect on the national market system.”
SEC is considering how to address the issue of reverse-merger companies which use legal but backdoor methods to allow their shares to be listed in the US. The regulator warned investors last week to beware of investing in small private companies which merge with public shell companies instead of using more rigorous listing methods, such as issuing an IPO. Among the ideas being considered is NDAQ’s proposal that there must be a minimum amount of trading for a company to list on its exchange.
Provided By: Equity Research Desk, www.erdesk.com
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