EXCHANGE NEWSWIRE, 27 September 2011
LCH.Clearnet’s board supported LSE’s EUR1 billion bid, and “they have proposed to move forward with the LSE,” according to a Reuters source. The deal, in which LSE offered EUR 21 per share for 51% of the company, still needs to be approved by LCH.Clearnet’s 98 shareholders.
LSE hired Serge Harry, former deputy head of strategy at NYX and a post-trade expert, as an adviser to its bid for LCH.Clearnet, according to the Financial Times.
CME expects a decision on the location of its headquarters within a few months, with Texas, Florida, Tennessee and Indiana to be the top choices, according to MarketWatch. CME CEO Terry Duffy said that “if I am a shareholder, I would expect a response back within a year’s period.”
SIX Swiss Exchange Liquidnet Service (SLS), the first trading link between a dark pool and an exchange, saw trade volumes reach CHF 138m in July and CHF 227m in August, as cited by the Financial Times. Only 12 of SIX’s 120 participants have joined SLS for now, which linkes them with Liquidnet’s approximately 650 buy-side market participants.
NYX experienced a “momentary interruption in trade and quote processing” on Monday in 16 securities, including the DJIA component Caterpillar and several airline stocks. No reason for the problem was cited.
Brazil: JPMorgan said that the odds are relatively high that the Brazilian Government may remove the tax on FX derivatives, according to Bloomberg,.
ISDA re-emphasized the need for a single swaps data repository showing counterparty exposures, and stated that it could provide “an aggregated risk view for regulators”. ISDA CEO Conrad Voldstad said that the association is worried about the dangers of a “fragmented” trade repository system, which could “introduce operational complexity, undermine risk reduction, and impose unnecessary costs”, as stated in the Wall Street Journal.
European Commission (EC) will reveal its draft on the Europe-wide financial transaction tax this week, and EC hopes the draft will pass through the Council of the European Union and European Parliament by end-2012.
European Union rotating president Poland proposed changing a draft law on OTC derivatives so that “no member state or a group of member states should be discriminated, directly or indirectly, as a venue for clearing services.” This is aimed at resolving the conflict between UK and the European Central Bank (ECB), which had said that clearing activities should take place in the euro region if it is expected to provide clearinghouses access to central-bank liquidity.
Provided By: Equity Research Desk, www.erdesk.com
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