EXCHANGE NEWSWIRE, 15 September 2011
DB1-NYX merger: EU competition chief Joaquin Almunia voiced concerns in a financial conference in Poland that the proposed deal would create a monopoly in Europe’s derivatives market, and “any outcome that would eliminate the possibility of new entry and user flexibility would be unacceptable to us”. NDAQ CEO Robert Greifeld also said the deal may be unfair as it would create a “silo” in which the merged entity would dominate all stages of the clearing and trading process, according to Reuters.
DB1-NYX merger is expected to save clients an additional $1b, according to DB1 and NYX. DB1 spokesman Ruediger Assion said brokers are likely to achieve as much as $4b in “collateral efficiencies” and between $75m to $100m in “direct customer savings”. Association for Financial Markets in Europe said that so far it “has seen nothing to suggest that a fair share of any such savings would be passed on to end users”, referring to the $400m in cost savings forecast when the deal was first announced.
NDAQ signed an agreement with BVMF3 to provide trade-monitoring technology to the Brazilian market. BM&F and its self-supervisory regulatory arm BSM will both use NDAQ’s Smarts software to record trades and analyze them for patterns and potential abuses. BM&F will first adopt the software for its equities exchange, and then its derivatives exchange.
NDAQ aims to adopt a new capital plan in at the start of 4Q11, and the company also plans to buyback more shares in the coming period.
JSE: South African trading in single stock futures fell by 19% y/y in the first eight months of the year to 35m contracts, its lowest level in at least four years. Value traded in single stock futures totaled ZAR 141b ($19b) through August, compared to ZAR 174b in the same period last year. The decrease in trading took place after JSE obligated banks and brokers to move to electronic platforms, and reduced the profits they made from trading contracts.
ITG will launch its POSIT dark pool in Japan, “a market where there is strong demand for liquidity aggregation given the growing number of liquidity pools and the higher level of average trading costs compared to markets such as the US”.
DTCC and Clearstream will partner to support the bilateral loan and syndicated loan markets. Clearstream will leverage DTCC’s Loan/SERV reconciliation service and start offering it in 1H12. Both firms will also develop bilateral loan services, which will be built on DTCC’s current Loan/SERV platform and integrated with Clearstream’s collateral management platform.
Provided By: Equity Research Desk, www.erdesk.com
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