EXCHANGE NEWSWIRE, 4 October 2011
DB1-NYX merger: European Union (EU) is expected to formally object to the deal this week, according to a Reuters source, who also said that a statement of objections is expected to be sent to both parties this week. This is a standard part of the review process, and whenever there is a second phase review, regulators are most likely to issue preliminary conclusions with this statement of objections.
LME CEO Martin Abbott commented that any deal to sell LME will not likely be finished before the end of 1Q12, “if and when the board is satisfied that there is something serious that the shareholders should see,” according to the Wall Street Journal.
CME launched trading of Euribor futures on Monday, and “after we see the success and how strong the update is, then we’ll look at other opportunities,” according to Fox Business.
CME increased the maximum gold collateral level required of its members to $500m from $200m. CME managing director of metal products Harriet Hunnable said that “it really shows that people in the gold market want to use gold more efficiently,” and “we are very comfortable with the amount of gold that we hold as collateral.”
CBOE CEO Bill Brodsky opposed the curbing of high frequency trading (HFT), and dismissed proposals to do so as “absurd”. In a Financial Times interview, Brodsky defended HFT, stating that its growth had resulted in cheaper financial trading and increase efficiency for all market participants. He also said that causes of volatility were more structural and political, relating to securities market fragmentation and global events, as opposed to being linked to trading strategies.
Chi-East reported 3Q11 value traded of $71.06m (+203% q/q), with $4.96b of trade routed through its platform (+45% q/q), according to Reuters. Chi-East also said that its platform now has several new key broker-dealers, including ITG, JP Morgan and RBS.
ROFEX set a new monthly record in September, with a total of 6.99m financial contracts traded, equivalent to an ADTV of $300m (+37.5% m/m, +26% y/y).
FXCM agreed to pay $14.2m to settle CFTC’s claims that FXCM failed to properly oversee handling of more than 57,000 accounts that used its platform. FXCM also agreed to retain a monitor for its trade-execution practices, as stated in a Bloomberg report.
Markit launched its new Market Commission Manager, a service to assist buy-side firms manage and allocate commission credits, according to Finextra. Markit has partnered with BofA Merrill Lynch, Barclays Capital, Citi, Credit Suisse, Deutsche Bank, Goldman Sachs, JP Morgan, and Morgan Stanley to ensure that the platform can meet the needs of the industry, and UBS will also be a sell-side client of the platform.
CFTC Chairman Gary Gensler said that “while we’re making progress toward finalizing” swap trading rules, “there are other rules that we will probably take up before we consider finalizing the SEF (swap execution facilities) rules”. Gensler also commented that the Commission hopes to be able to consider in 1Q12, according to the Financial Times.
Provided By: Equity Research Desk, www.erdesk.com
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