EXCHANGE NEWSWIRE, 2 August 2011
DB1-NYX merger: FIA requested a dialogue with regulators and concerned parties regarding the proposed merger, and said that the market power of the new entity should be mitigated where possible for the interests of a free and open market. FIA commented that while it is widely supportive of the merger, the new entity would have a near-monopoly and “virtual silo in pre-trade (co-location) as well as post-trade facilities”.
CME and BMV’s MexDer launched their north-to-south order routing agreement, allowing CME’s US customers to have access to MexDer’s benchmark derivatives contracts. This follows the first phase of the project which was launched on April 4 this year, when Mexican investors were given access to CME’s benchmark derivatives contracts.
NYX entered into a definitive agreement to acquire Metabit, a Tokyo-based provider of high-performance market access products through Japan and Asia. Metabit will operate as a product line within NYSE Technologies’ portfolio and the transaction is expected to be closed in 3Q11.
LSE agreed to buy FSA’s Transaction Reporting Service (TRS), which was developed by FSA to provide firms with a method for meeting their MiFID reporting obligations, in a GBP15m cash deal. TRS clients will be migrated on closing, subject to the Office of Fair Trading clearance, to the UnaVista platform which will accept brokers’ TRS-formatted data submissions.
NYX reported adjusted EPS of $0.61 (-5% y/y) on net revenues of $661m (+1% y/y) and adjusted OpEx of $419m (+3% y/y); excluding merger expenses, exit costs, disposal activities and discrete tax items. NYX declared a 3Q11 dividend of $0.30 per share.
SGX reported FY11 EPS of S$0.276 (-8% y/y) on revenues of $$661m (+3% y/y), expenses of S$287m (+10% y/y), and net profit attributable to equity shareholders of S$295m (-8% y/y). Excluding S$18.6m in ASX-SGX transaction related costs and S$1.7m in net gain on disposal of freehold property, total underlying profit was S$312m (-2% y/y). FY11 ADV was S$1.6b per day (+5% y/y), and derivatives ADV was 267K contracts per day (+15% y/y). The Board of Directors proposed a final dividend of S$0.15 per share, brining the full year dividend to S$0.27 per share, which is equivalent to 98% of FY11 reported profit.
trueSEF is a new venture led by Creditex’s co-founder Sunil Hirani, who left Creditex after selling it to ICE. The new venture will support the shift of IR swap business onto the screen from the telephone, and is aimed at the larger IR swaps sector in which interdealer brokers are also developing electronic-execution capabilities.
Galaxy MTF received approval from French regulator the Autorité des Marchés Financiers, and consumer protection body the Autorité de Controle Prudentiel, to operate its European bonds MTF. The bond trading platform accepts only firm orders and aggregates them in a global order book with prices accessible to all participants. Post-trade information and transaction records are made available publicly. Galaxy MTF uses TradingScreen’s execution management technology.
IIROC and the Canadian Securities Administrators (CSA) will implement a new regulatory framework to supervise the use of dark liquidity in the Canadian market. CSA Chairman Bill Rice said that the new framework “proposes a balance between recognizing the value of dark liquidity to industry participants and ensuring the continued protection of retail investors, pre-trade price discovery and the overall quality of our market”.
Provided By: Equity Research Desk, www.erdesk.com
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