EXCHANGE NEWSWIRE, 18 July 2011
DB1-NYX merger, which received a total of 82% of DB1 shareholder votes, will likely face a rigorous regulatory interview that could last till the end of this year. EU Competition Commissioner Joaquin Almunia said that “probably we will need phase two” after the August 4 preliminary review deadline, as the deal is a complex one.
DB1 announced that the DAX index will be adjusted to reflect DB1’s replacement of shares with a class of shares tendered in its merger with NYX starting July 20. This announcement came after DB1 received sufficient shareholder approval for its merger with NYX.
NDAQ had held talks with BATS Global regarding the sale of the combined NDAQ-NYSE primary listings business when NDAQ was attempting to make the bid for NYX succeed, according to Financial Times sources. BATS CEO Joe Ratterman was initially interested but talks broke down after it was clear that antitrust authorities were not going to support the NDAQ-ICE counterbid.
ICE CEO Jeffrey Sprecher said that recent strong antitrust scrutiny of proposed exchange mergers will result in higher impediments than before, and “it’s going to cause everyone to rethink their global strategies”. Sprecher also revealed that it had originally passed on the option to buy a stake in CETIP in 2009 as “it wasn’t the right time for us”. ICE later bought a 12.4% stake in CETIP last week.
ICE Trust fully transited to ICE Clear Credit, a CFTC-regulated Derivatives Clearing Organization (DCO) and SEC-regulated Securities Clearing Agency (SCA) under the Dodd Frank Act as of July 16. ICE Clear Credit will continue clearing the 168 products it offers across North American CDS indices (CDX) and single-name instruments as a DCO and SCA. As of July 8, ICE’s CDS clearing houses cleared a record of $20 trillion in gross notional value with an aggregate open interest of $1.5 trillion.
ICE Futures Europe proposed to reduce the sulfur content of its gasoil contract in order to be aligned with cleaner fuels that are being introduced in “the wider European physical middle distillate market”. ICE plans to decrease the sulfur in its contract to 10 parts-per-million (ppm) from 1000ppm starting with the January 2014 futures, and the cetane index, which is a measure of fuel performance, will be increased to a minimum of 46 from 45.
NYX Liffe admitted its first member from China, GF Futures (Hong Kong) Co Ltd, which is a Hong Kong-based subsidiary of GF Group, based in Guangdong province. GF Futures (Hong Kong) will now be able to trade on behalf of clients, including Chinese individuals and institutional investors.
DTCC and Swift will jointly develop a trade repository for the FX industry after they were chosen by the global FX division of the Association for Financial Markets in Europe (AFME) to do so. DTCC confirmed that together with Swift, it will leverage the infrastructure established for other asset classes, in particular the trade information warehouse, to ensure a robust FX market platform that will minimize end-user costs.
CFTC received feedback from Frank Lucas, chairman of the House Agricultural Committee, that its rules should be public at least a week before adoption. Lucas also said that CFTC should adopt no more than three rules at each meeting and establish a plan for when the rules would be implemented in the market, as “transparency will help mitigate any potential market disruption as rules become effective”.
Provided By: Equity Research Desk, www.erdesk.com
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