EXCHANGE NEWSWIRE, 6 October 2011
DB1-NYX merger: DB1 and NYX said that it was “a normal step in a second phase merger procedure” that they received the EU Competition Commission’s official “Statement of Objections. Both exchange groups did not comment on the content of the statement, but said that it was a “provisional position” that “does not prejudge the final outcome of the case,” according to the Financial Times.
LSE: Turquoise CEO Adrian Farnham hit out against the DB1-NYX deal, according to the Financial News. Farnham said that “we have asked the Competition Commission to use the review of the deal to open up the industry to competition. This must be done now, it cannot be left to the review of MiFID or the European Market Infrastructure Regulation – these regulations get nobbled during the policy making process.”
LCH.Clearnet will allow the use of gold as collateral for customers who signed up to clear OTC gold bullion and gold contracts on the Hong Kong Mercantile Exchange (HKMEx), as quoted in the Financial Times. LCH.Clearnet commodities director David Farrar said that “banks now want to use gold alongside cash so they can optimize returns and they typically have large holdings of gold. The background is increasing margin liability that has to be put up to us because of volatility in the markets.”
Galaxy MTF received approval from FINMA, the Swiss Financial Market Supervisory Authority, to operate as a foreign exchange in Switzerland. The Galaxy bond trading platform accepts only firm orders ad aggregates the orders in a global order book with prices accessible to all participants.
MarkitSERV completed near real-time clearing for credit default swap (CDS) trades by several larger traders, which include Deustche Bank, JP Morgan and Morgan Stanley. CEO of MarkitSERV Jeff Gooch said that “the building blocks of the new Dodd-Frank would need faster connections between trading venues and clearing houses in a real-time manner, and then reporting of those traders to repositories,” as quoted in the Financial Times.
EU’s proposed derivatives trading rules may require trading venues to provide clearinghouses with data “on a non-discriminatory and transparent basis”, according to Bloomberg. “Full reasons” would have to be provided if an information request is refused.
FSA said that regulated exchanges and clearing houses which are “to a degree, systematically important” in the UK could face up to an average increase of 22% in the minimum amounts of capital they need to hold in case of operational risks. According to the Financial Times, FSA proposed that institutions hold at least six months’ operating costs as a liquidity buffer, with net capital of at least the same amount.
Provided By: Equity Research Desk, www.erdesk.com
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