EXCHANGE NEWSWIRE, 8 July 2011
DB1-NYX merger won more than 65% of shareholder votes, allowing the merger to proceed. The approval “gives us a lot of confidence” according to NYX CEO Duncan Niederauer, although “we were hoping for a slightly higher number”. Niederauer also said in a CNBC interview that it was difficult to see the deal moving forward should regulators force the divesture of one of the futures exchange, but that antitrust authorities did not raise the prospect in informal discussions before last week’s regulatory filing.
NDAQ CEO Robert Greifeld’s team is trying to “mend fences” with LSE officials over NDAQ’s attempted hostile takeover of LSE before starting any official merger talks. A source interviewed by Fox Business said “there’s not a lot of trust for Greifeld in London” and that “the people in London would want Greifeld out” as they think LSE “ought to be run out of London, not New York”.
LSE’s shareholders were urged by PIRC, an influential shareholder advisor, to block the re-election of four non-executive directors at the annual shareholders’ meeting on July 20. PIRC stated that the directors, including Janet Cohen, Sergio Ermotti, Andrea Munari and Robert Webb, could not be considered independent. PIRC also said that “there is insufficient independent representation on the board”, but advocated that shareholders to re-appoint CEO Xavier Rolet.
Six Swiss Exchange and Liquidnet launched “Six Swiss Exchange Liquidnet Service” (SLS), a new block trading platform. SLS will enable liquidity in Liquidnet’s global institutional liquidity pool to directly interact with block liquidity delivered from Six Swiss Exchange’s members in around 3,000 securities. Six Swiss Exchange members can also use SLS to direct executable block orders to Liquidnet, and the orders will be immediately executable mid-point-only indications.
MICEX will extend its equity market trading hours from September 1, and participants will be able to trade from 0930 to 1900 Moscow time. Trading in the negotiated deals mode and repos will start at 0930, while the pre-trading period for the main trading mode will be shifted to 0945 from 1015. The main trading mode period will also be brought forward to 1000 from 1030.
WSE ranked number one in Europe by the number of IPOs and third by the value of IPOs for the first two quarters of this year, according to PricewaterhouseCoopers’ IPO Watch Europe report. During the first half of 2011, WSE saw 45 IPOs worth EUR120m and 55 IPOs worth EUR600m in 1Q11 and 2Q11 respectively.
OSE added BNP Paribas as an official market maker for the Nikkei 225 mini stock index futures contract, which traded 8,502,173 contracts (+21% y/y) worth US$81b (+20% y/y) in June.
LCH.Clearnet estimated that approximately 84% of interest rate derivatives will be able to be processed by clearing houses by the year-end. This assessment was based on ISDA’s report titled “OTC Derivatives Market Analysis Year-End 2010”, and compares to a report by the Office of the Comptroller of the Currency which assumed a rate of only 20%.
Bank of England (BOE) official Andrew Haldane said that HFT’s rapid growth is dominating the stock markets and raising “contagion” concerns, and said he supported implementing minimum order times as it would improve resilience in liquidity under stressful times. Haldane also said that “there is nothing normal about recent deviations in financial markets” and that “the race to zero may have contributed to those abnormalities”
CFTC proposed new rules to give the regulator the ability to prosecute instances of apparent market manipulation without having to prove that the activities created an artificial price. More detailed trade reporting is also being proposed for clearing houses and swaps dealers in the physical commodities markets, and participants are required to file detailed daily reports on their positions in 46 commodities.
Provided By: Equity Research Desk, www.erdesk.com
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