EXCHANGE NEWSWIRE, 26 September 2011
LCH.Clearnet’s board will meet today to decide between offers made by Markit and LSE. LSE has offered an EUR21 per share bid for 51% of the company, while Markit has offered EUR 15 per share for the entire company, according to the Financial Times. SGX was interested in joining one of the bids, but it did not specify which bid. LCH.Clearnet’s shareholders are also reported to have asked LSE to commit to capping fees for clearing services for an extended period of possibly up to five years in exchange for control of the clearinghouse, as mentioned by UK newspaper The Times.
LME received “several expressions of interest” from bidders which may include CME, ICE and SGX, according to the Financial Times. Members of LME believe that the exchange could be worth more than GBP1 billion. LME will “begin a formal process which may or may not lead to an acceptable offer for the company being received.”
DB1: Clearstream is in discussions with banks and central securities depositories in 17 markets about handling collateral manager for them in the domestic markets, according to the Financial Times. CEO of Clearstream Jeffrey Tessler said “we want to be able to link all these infrastructures, as they are sitting on all these pools of capital.”
LSE: Turquoise launched FTSE index options on its derivatives platform, signaling “the next stage in the pan-European expansion of Turquoise Derivatives”. A three-month fee holiday for market-makers was also introduced at the launch, and market makers will be charged 5p per contract, and all other customers will be charged 15p per contract. The clearing fee for options will also be 2p per contract, the same as it is for Turquoise FTSE futures.
PLUS Markets Group will close the retail trade reporting service as it did not generate “any direct revenues.” The group said that the service’s shutdown will bring cost savings that will help meet future regulatory capital requirements.
RTS-Micex merger: Ruben Aganbegyan, who will be CEO of the combined entity, dismissed fears that the deal will cause competition to be stifled, and said that “we are in an extremely competitive situation right now against international peers who want to see pricing of Russian assets on their platforms”. Aganbegyan also said that a decision over a national central securities depository could be made in the next few months.
Provided By: Equity Research Desk, www.erdesk.com
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