EXCHANGE NEWSWIRE, 3 November 2011
DB1-NYX merger: NYX CEO Duncan Niederauer told employees that Brussels has “no issues with regard to our equities, listings, market data, technology or settlement/depository business, and there is even some agreement with regard to our derivatives business.” Both exchanges have another meeting with EU competition authorities on November 8.
NYX reported 3Q11 diluted EPS of $0.76 (+55% y/y) and adjusted EPS of $0.71 (+54% y/y); on revenues of $704m (+18% y/y), adjusted operating expenditure of $416m (-1% y/y), and adjusted operating income of $288m (+60%y/y). Adjusted net income excludes $29m in merger costs and a discrete deferred tax benefit of $40m. US Cash ADV was 2.6b shares (+8% y/y), EU Cash ADV was 1.9m trades (+40% y/y), US Derivatives ADV was 4.9m (+53% y/y), and EU Liffe ADV (ex-Bclear) was 3.5m (+18% y/y).
MF Global: SEC launched an investigation into MF Global’s statements on European bets. As reported in a Reuters article, regulators are uncertain where an estimated shortfall of $633m in customer funds is, and why they are unable to find it. CME, one of MF Global’s regulators, stated that “it now appears that the firm made subsequent transfers of customer segregated funds in a manner that may have been designed to avoid detection.” CFTC approved of MF Global’s plan to begin transferring client accounts and collateral. According to Bloomberg, CFTC issued a document saying that it “intends to take all appropriate action” and work to “ensure that customers maximize their recovery of funds and to discover the reason for the shortfall in segregation.”
MICEX launched the National Clearing Center (NCC) as its CCP on November 1, with trades being cleared on a T+0 basis. MICEX will also offer a dark pool this month, although the exact date is not yet confirmed, according to the Trade News. From November 14, MICEX will also add a post-trade action mechanism that will operate from 18.45 till 18.50, and market participants can receive information on orders with 20 best prices submitted in the course of the post-trading auction.
Oslo Stock Exchange’s share listing may be delayed to 2012 because of a complex government approval process. The bourse’s CEO Bente Landsnes did affirm that Oslo Stock Exchange remains intent on floating its shares despite recent market volatility, according to Reuters.
SGX installed Project MARS, a solution for real-time trading system reporting, from software and consulting services provider First Derivatives. SGX also appointed Neena Prasad as senior vice president to head its listings business in India as of November 1. Prasad previously worked with Morgan Stanley New Delhi, as well as other institutions such as GE Capital, Salomon Smith Barney, Citigroup and Bank of America.
Malta Stock Exchange signed a five-year contract in which it will use DB1’s Xetra trading platform, and DB1 will organize trading in equities listed on the Malta platform from mid-2012.
Markit acquired Quantitative Services Group (QSG), a firm which analyzes electronic stock trading strategies. Markit hopes the acquisition will bring the analysis to OTC markets and add Markit’s existing data on credit derivatives to equity trading models, according to the Financial Times. Deal details were not disclosed.
FSA proposed new guidance suggesting that firms should “design products to meet their audience need”, “pre-test new products” and “monitor the progress of a product through its life cycle.” These proposals are a result of a review of seven major structured products providers showed that weaknesses in designing and approving the products were putting investors at risk, as reported in the Financial News.
Provided By: Equity Research Desk, www.erdesk.com
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