EXCHANGE NEWSWIRE, 27 June 2011
LSE-TMX merger: LSE and TMX shareholders will vote simultaneously in London and Toronto on Thursday at 10 am EDT on the $3.6 billion merger. The TMX board issued a circular supporting the merger with the LSE and raising the following issues regarding Maple offer: “The substantial leverage, conflict of interest, uncertainty with regulatory approvals, size of the reverse break fee it would be willing to pay if the required approvals from the Competition Bureau are not received, insufficient information in the Maple Offer regarding Maple’s future business plans and strategy for TMX Group, particularly with respect to its projected domestic operating model and plans for international growth and expansion, values of proposed acquisitions of Alpha and Canadian clearinghouse CDS or what a reasonable purchase price for these entities may be.” (SEE CIRCULAR ATTACHED).
DB1- NYX merger: both DB1 and NYX do not expect any “structural remedies” such as divesting businesses in order for the deal to succeed, but less severe “behavioral remedies” regarding topics like pricing may be required. NYX shareholder Timothy Hoyle said “conversations with the NYSE” have “led us to believe that they believe they’ll gain regulatory approval with minimal concessions”.
CME: NYMEX will modify trading-halt rules on major energy futures, with the rules to affect the futures contracts for heating oil, reformulated gasoline blendstock, ultra-low sulfur diesel, Henry Hub natural gas and light, and sweet crude oil. Only a big move on the first contract months will trigger a halt, while the trading halt for the fourth through nine months will be removed as the latter months typically see less trading activity.
LSE launched its sponsored access service which will be available on both LSE and Turquoise centrally cleared order books. The new service will allow non-members to gain direct, low latency access to the market, which exchange level controls (ELCs) will provide order entry risk management.
NYX suspended trading of stocks in the French CAC 40 index for 30 minutes on Monday morning as a result of a technical problem, which affected the system calculating the value of the index based on the prices of its individual stock components.
SGX will postpone the launch of full-day continuous trading to 3Q 2011, the second delay this year. A Reuters source said the 90-minute midday trading break to be removed either in July or early August, to let trading hours in Singapore have a greater overlap with markets such as Tokyo, China and India.
NSE of India was fined INR 555m ($12.4m) by the Competition Commission of India for engaging in unfair market practices and abusing its dominant position. The Commission found that NSE’s intention was to acquire “a dominant position in the currency derivative segment by cross-subsidizing this segments of the business from other segments where it enjoyed a virtual monopoly”. The Commission ordered NSE to modify a zero price policy and introduce “appropriate transaction costs” within the next 60 days.
South Korea’s equity linked warrants (ELW) market will be affected by the new rules which will be implemented from August 1. Investors will have to make an initial deposit of KRW15m (US$13,928) before trading ELWs, unlike the current situations where investors are not required to maintain any minimum deposit.
Provided By: Equity Research Desk, www.erdesk.com
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