EXCHANGE NEWSWIRE, 5 July 2011
DB1-NYX merger: European Union is surveying DB1’s rivals and customers on whether the merger with NYX would reduce competition for European derivatives and equity trading and clearing. This is “part of the usual procedure for investigating mergers”, and EU’s antitrust agency has set an initial August 4 deadline to rule on the deal. ICAP CEO Michael Spencer said that the proposed merger between NYX and DB1 would create a monopoly that will be “fundamentally bad for markets”, according to a Financial Times interview.
DB1 issued a reminder notice to shareholders regarding the exchange of each DB1 share for an Alpha Beta Netherlands Holding share, for which the offer will expire on July 13. The offer is subject to having approval from majority of the NYX shares for the DB1-NYX merger to follow through, and for 75% of DB1 ordinary shares to be tendered latest by July 13.
DB1 acquired a minority stake in UK-based currency options platform Digital Vega as part of its strategy to extend its positioning in non-exchange segments. Digital Vega provides electronic FX technology solutions to buy- and sell-side firms, and DB1 Managing Director Peter Reitz stated that “this investment in Digital Vega” supports that G20 commitments for improving the integrity and safety of the OTC markets.” No deal details were given.
NDAQ may bid for LSE, according to the Times, and NDAQ CEO Robert Greifeld has asked his team to look into the possibility of acquiring LSE, which would be open to considering an approach from NDAQ. The deal would have to face some hurdles, including uncertainty of who would be CEO of the new entity, and it would also have to get UK regulatory approval.
Chi-X Europe: some of the MTF’s larger shareholders, including Instinet which holds a 35% stake, are looking at alternative options after the deal with BATS Global was referred to the Competition Commission. The options include independence for Chi-X Europe, or a sale of the platform to a rival, according to a source interviewed by the Financial Times.
Direct Edge will end its inverted pricing “taker-maker” model on August 1, pending SEC approval. Direct Edge COO Bryan Harkins aims to stimulate liquidity for its EDGA market, with the new pricing model to be “maker-taker with a twist”. The new model will end the incentive to “take” but will still charge substantially lower fees at just 6 mils or $0.0006 per share, compared to the NYSE’s next lowest fees at 23 mils. The exchange will also pay a 5 mil rebate to “make” trades, earning just a 1 mil spread.
BATS’ proposed “directed-order program” was granted SEC approval despite criticism from CBOE, NDAQ, NYX, ISE and BOX Options Exchange. The program allows market makers to send the exchange two prices on options contracts, with one to be publicly displayed while the other, assuming that the first price is quoted at the national best bid and offer, would improve that price and be hidden. The program will be run on a six-month pilot basis that ends on January 30, 2012.
BME launched new standardized end-of-day and historical data products which are aimed at improving transparency and meeting its clients’ research and regulatory compliance needs. The new service provides information on all financial instruments traded on the BME markets as well as information on closing prices and volumes, corporate actions and data of the Spanish markets.
CME President Phupinder Gill said that the exchange is “in the review stage of setting up a clearing operation in Asia”, and that they were deciding between having three global clearing operations or whether an Asian service could be launched in a location straddling both North American and Asian time zones. Gill did not specify a location but said that both Singapore and Hong Kong “are very sound environments to operate sound clearing operations”.
LSE is in discussions with Sri Lanka’s Securities and Exchange Commission (SEC) regarding the mutual trading of UK and Sri Lankan shares on both LSE and the Colombo Stock Exchange. The SEC is encouraging foreign companies to list on the Colombo Stock Exchange in order to get access to trade their shares on LSE.
European Parliament delayed its vote on the European market infrastructure regulation (EMIR) untill September, in response to a request from “rapporteurs and the major representative groups” to allow “some room for maneuver and negotiations with the Polish presidency of the Council”.
Chi-X Japan saw turnover increased to a record JPY515b (+31.4% m/m) in June, with a market share of 1.78% for the month. This makes Chi-X Japan the country largest PTS for the second consecutive month, behind TSE whose market share was 91.8% in June, and ahead of SBI Japannext, whose market share was 1.67% for the month.
Provided By: Equity Research Desk, www.erdesk.com
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