EXCHANGE NEWSWIRE, 3 October 2011
TMX: Maple extended the deadline for its bid till October 31, and TMX CEO Thomas Kloet said it is still too early to decide on whether to support the deal. Reuters quoted Kloet as saying that “when you agree to a deal, you have to agree to a deal that has a likelihood of being executed”, and “in this one in particular, you have a highly regulated organization. What the market has to consider is the regulatory risk of doing a deal.”
TMX CEO Thomas Kloet said that the exchange group has “pretty robust review process”, and that “our role is not as the auditor or the financial supervisor of listed companies”, in response to the fact that numerous Chinese companies with Canadian listings have met with plunges in stock prices amid fraud charges, accounting irregularities, delayed filings and other issues. Kloet also commented that “we have listing standards,” and “we depend on the cadre of representatives from the listed issuer that bring them to market, that’s our role”, according to Reuters.
LCH.Clearnet aims to launch its non-deliverable forwards (NDF) clearing service, ForexClear, in mid-November, according to FX Week sources. According to the article, the platform will start clearing NDFs covering six currencies against the USD, including CNY, BRL, INR, RUB, KRW, and CLP. LCH-Clearnet’s original plans to clear FX options are temporarily on hold due to “the ongoing issue of how clearing houses settle an option.”
Chi-X Europe will launch four new indices with Russell Investments, named the Chi-X Europe Russell Index (CHERI) series, and Chi-X Europe CEO Alasdair Haynes said that “we strongly believe that, until now, competition has been lacking in the pan-European indexing field.”
NYX set tougher circuit-breakers for 4Q11, and the first circuit breaker will be reached after a 7% decline as opposed to 10% previously. Starting Monday, trading will also be stopped for varying lengths of time during the business day after 1,100, 2,500 and 3,350 point declines.
CBOE is in discussions with several states regarding a possible move of its headquarters away from Illinois as a result of the increase in Illinois’ tax rate to 7% from 4.8%, which “is virtually punitive,” according to the Chicago Tribune.
PSE extended its trading hours by an hour, and trading will now run up till 1 pm local time, from its previous close of 12pm. In January, trading hours will be further extended till 3.30pm local time, including a break from 12-1.30pm.
Monetary Authority of Singapore (MAS) managing director Ravi Menon said that Asia Pacific financial centers such as Singapore, Hong Kong and Australia would allow “no room for regulatory arbitrage” in the OTC derivatives industry, according to the Financial Times. Menon also stated that Singapore would “fully implement the OTC derivatives reform agenda”, but that while “there must be consistency in implementation across jurisdictions, but there cannot be precise equivalence.”
Provided By: Equity Research Desk, www.erdesk.com
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