EXCHANGE NEWSWIRE, 21 July 2011
LSE CEO Xavier Rolet commented that LSE will likely focus on other growth opportunities and should remain independent in the next six months to a year, but the exchange is not closed to possible deal talks. Rolet refused to comment on whether he would meet NDAQ CEO Robert Greifeld who is scheduled to visit London next week.
DB1 CEO Reto Francioni stressed that the DB1-NYX merger will “undoubtedly” strengthen Frankfurt’s position as a financial center, despite the combined entity having New York-based headquarters. Francioni said that around 70% of the merged entity’s sales will be in Europe, and dividend payments are likely to remain similar to what they have been previously.
CME plans to expand its daily price limits on CBOT’s corn contracts by 33% to 40 cents/bushel from 30 cents/bushel, after grain markets surged and volatility rose. The plan has met with opposition from some commercial traders and requires CFTC approval to be implemented.
Patsystems agreed to buy US rival Mixit, allowing the previously predominantly Asian-focused technology firm to launch into US equity and options markets. According to deal terms, Patsystems will pay an initial consideration of GBP 12.57m in cash and new shares, an amount which may be increased up to GBP 17.5m depending on performance. The first payment will include GBP 8.5m in cash and 17.7m in new shares.
E*Trade reported 2Q 2011 EPS of $0.16 (+33% y/y) on total net revenues of $518m (-3% y/y), provision for loan losses of $103m (-38% y/y), total operating expenses of $291m (+6% y/y), and total other expense of $41m (+1% y/y). 2Q 2011 DARTs were 148,000 (-13% y/y), and net new brokerage accounts during the quarter were 25,000 (+39% y/y). Customer assets at the end of the quarter totaled $186b (-2% q/q).
Kenya’s Capital Markets Authority (CMA) said that the country’s futures market will likely be ready within two years. CMA officer Wycliffe Shamiah said “the first stage will be trading of cash settled contracts such as currency, minerals and energy contracts”, and “the approved exchange will within two years be required to set up a framework for warehousing receipting, paving the way for trading of agricultural contracts”.
European Securities and Markets Authority (ESMA) proposed guidelines to address HFT and other forms of automated trading which have increased risks. ESMA commented that the “guidelines seek to clarify the obligations of trading platforms and investment firms under the existing EU legislative framework” and “contribute to the efficiency, orderly functioning and resilience of trading in a highly automated environment”.
Provided By: Equity Research Desk, www.erdesk.com
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