EXCHANGE NEWSWIRE, 5 August 2011
DB1-NYX merger will be submitted to an in-depth probe after the European Commission raised significant concerns” that “due to the removal of an important competitor, the merger would have a negative impact on innovation in derivatives products and technology solutions”. The Commission also that “the presence of a closed “vertical silo” could cause possibilities for fee competition to be “reduced due to increased difficulties for competitors to enter the market.”
ICE lowered the “adjusted net capital” threshold that “futures commission merchants” (FCMs) are required to meet to become members of its US credit default swap (CDS) clearer, ICE Credit Clear, to $100m from $5b. ICE also requires FCMs to have “excess net capital” of at least 5% of their “required segregated customer funds”.
NYX and Borsa Italia suspended parts of their operations over technical issues on Thursday afternoon due to fears over sovereign debt levels and global growth levels. NYX’s outage, which was mainly on its Liffe derivatives market, is the sixth in two months, and took place two days after NYX admitted that its previous glitches were a result of high volumes and older software.
TMX reported 2Q11 diluted EPS of C$0.73 (-8% y/y), on revenues of C$169.3m (+8% y/y) and operating expenses of C$71.5m (-3% y/y). This includes one-off costs of C$20.8m related to the failed LSE-TMX merger and the ongoing talks between LSE and Maple Group. Excluding these one-off costs, adjusted diluted EPS was C$0.94 (+19% y/y).
BVMF3 will launch eight currency futures next week, in which the BRL will be linked to eight other currencies, including the South African rand, Turkish lira, New Zealand dollar, Chilean peso, Chinese yuan and the Swiss franc. The exchange will also offer two new “mini” futures contracts of EUR and USD in amounts of EUR10,000 and $10,000.
Tehran Stock Exchange plans to launch trading in options by October to increase its range of derivatives products. There is currently no time frame for the introduction of stock index options, but traders expect it could be next year.
US Department of Justice (DOJ) appointed Sharis Pozen as acting department head, and she is expected to remain in this position till the end of this presidential term. Pozen joined DOJ in February 2009 after 14 years in private practice, and she has previously also worked for five years in the Federal Trade Commission, which shares authority for enforcing federal antitrust laws in the US.
CFTC voted 4-1 in favor of adopting a rule registering databases, which will enable information on swaps trading volumes and prices to be accessible to financial regulators. CFTC Chairman Gary Gensler said that this new rule will allow regulators to “have specific information on the market’s scale and risk” for the first time.
Provided By: Equity Research Desk, www.erdesk.com
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