EXCHANGE NEWSWIRE, 20 September 2011
NDAQ started a cash tender offer which will expire on October 18 for any and all of its 2.50% Convertible Senior Notes due 2013, and also entered into a $1.2b senior unsecured five-year credit facility, which will refinance its existing credit facilities due 2013. Purchases of the Convertible Notes tendered in the offer are expected to be funded with operating cash flow and availability under the revolver in the new facility, and no additional debt will be incurred.
NDAQ’s majority-owned International Derivatives Clearing Group (IDCG) clearinghouse is being sued by Jefferies Group for over tens of millions of dollars in alleged losses from being fraudulently induced to enter interest rate swaps (IRS) futures contracts. According to Jefferies, IDCG had misrepresented that the IRS contracts were “economically equivalent” to similar transactions in the OTC market, and that IDCG let an unnamed counterparty set market prices at levels that were not economically equivalent to OTC swaps.
ICE Clear Europe appointed Roger Barton as a non-executive director on the Board of Directors. Barton is a director for the Financial Reform Consultancy, and was a former Goldman Sachs head of European e-commerce. He has also previously chaired the risk committee at LCH.Clearnet.
MarketAxess (MKTX): private equity firm Technology Crossover Ventures cut its holdings in MKTX to 1.9% from the 5.5% stake reporting in an SEC filing in May. This comes after news reports said MKTX could be up for sale around a month ago.
Thailand Futures Exchange (TFEX) will launch oil futures on October 17. The oil futures will be cash-settled and based on Brent crude oil prices, with a contract size of 100 barrels per contract. TFEX is also in the process of testing related systems with the clearinghouse and its members, and should complete the process by end-September.
BVMF3 is preparing for the second phase of its new pricing policy, in which the exchange will offer discounts to Pension Funds and other high volume clients.
CFTC Commissioner Scott O’Malia raised worries that new regulations could discourage non-mandated clearing of energy transactions, which would go against one of the Dodd Frank Act’s major aims. He also said that “I can’t support any rule that will create disincentives to clear; a rule that could make every ClearPort contract an endangered species”, referring to CME’s OTC clearing ClearPort tool.
Bank of Canada’s deputy governor Tim Lane raised concerns that OTC derivatives market reforms could concentrate market risk among big banks that control dealing in the largest clearing houses for OTC derivatives, according to the Financial Times. Lane commented that “until recently, access” to offshore CCPs “was limited to the largest financial institutions with global reach. Access now is being broadened, but the global dealers have considerable entrenched advantages in settlement costs”.
Provided By: Equity Research Desk, www.erdesk.com
To view our exchange reports and articles on your PDA or mobile device, click here.
-----
About FMX: FMX Connect is an information, data, and analytics portal for Commodities. The portal provides an all-in-one package including essential market data, independent third party research, industry news, and commodity trading tools. FMX Connect provides efficient, effective, and thorough data that bridges all aspects of commodities onto one screen. The Result; A user friendly application for hedge fund traders, OTC brokers, individual investors, and industry participants.
Note: The information presented, while from sources generally believed to be reliable, is not guaranteed and may not be complete. FMX | Connect makes no representations or warranties regarding the correctness of any opinions or information. Past results are not necessarily indicative of future results. Nothing in this report should be construed as a representation to buy or sell shares, futures or options, which contain considerable risks. For internal client distribution only. Any reproduction, re-transmission, or distribution of this report without permission is prohibited. Media correspondents or reporters may not quote any one page or section in its entirety and must attribute all quotes, ideas or concepts herein. Copyright FMX | Connect, ©2009-2010. All rights reserved.