EXCHANGE NEWSWIRE, 29 June 2011
EuroCCP will launch interoperability clearing on July 29, a service which will allow BATS Europe customers to choose between DTCC-owned EuroCCP, LCH.Clearnet, or Switzerland’s X-clear. EuroCCP will also cut clearing fees of high-volume users, and traders with transactions volumes exceeded 230,000 sides per day will either enjoy a fee cap of EUR 4,300 or not be charged clearing fees at all. Other trading platforms can also be added to the service once regulatory approval is received.
DB1-NYX merger: DB1 and NYX formally presented their request for approval of the $9b deal to the European Commission’s competition regulators, “thereby triggering the formal start of the anti-trust review process in Europe”, according to a statement released by the exchanges.
NYX: NYSE Amex’s sale of 52.8% of its options market to seven brokers, including Citadel and Goldman Sachs, won regulatory approval from SEC. According to deal terms, the seven dealer-brokers must send a minimum number of options contracts to the exchange for five years and three months, and NYSE Amex will adjust each broker’s share each year, with no brokerage to exceed 19.9%.
LSE CEO Xavier Rolet said that Maple Group’s bid required higher debt that would raise the risk of TMX getting a credit rating downgrade. Rolet also questioned why the Canadian banks backing Maple were supportive of using such high leverage given that “excessive leverage” was among the factors resulting in the global financial crisis, and that it “doesn’t seem consistent with the soundness of a balance sheet that one requires to run a clearing business”.
MICEX and RTS signed a merger agreement which is subject for approval by the Federal Antimonopoly Service and the extraordinary general meetings of both firms scheduled for August. Deal terms state that RTS shares, including preferred shares, are valued at RUB 34.5b, and MICEX shares are valued at RUB 103.5b. Assets used within the RTS business and kept in NP RTS books will be transferred to OJSC RTS books, and the merger procedures is scheduled to be completed at the beginning of 2012, with the joint entity’s IPO to launch in 2013.
CME published a study which showed no evidence that HFT traders increase volatility or costs for investors. The study found that “high-frequency traders increase liquidity, narrow spreads and enhance the efficiency of markets”, according to CME COO Bryan Durkin.
STOXX licensed the newly launched EURO STOXX 50 Volatility-Balanced Index exclusively to Barclays Capital. The new index aims to provide risk-adjusted returns relative to the EURO STOXX 50 Index by replicating a hypothetical portfolio which combines a base investment in the EURO STOXX 50 Index with an investment into equity volatility, through the use of the VSTOXX Short-Term Futures Index.
SEC will propose rules regarding how swap dealers interact with their customers, in order to manage risk and protect clients from abusive practices. The rules will apply to large security-based swap traders and dealers that deal in products such as CDS and equity derivatives.
SEC confirmed that it will delay certain aspects of a naked access rule until November 30, after market participants requested for more preparation time. The two parts which will be delayed are the implementation of controls and procedures ensuring orders sent through brokers’ systems do not exceed pre-set credit or capital thresholds, and the introduction of the naked access ban for fixed income securities.
Provided By: Equity Research Desk, www.erdesk.com
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