EXCHANGE NEWSWIRE, 4 November 2011
CME and McGraw-Hill formed a joint venture between McGraw-Hill’s S&P Indices business and the Dow Jones Indices business. McGraw-Hill will own 73% of the venue, CME 24.4% and Dow Jones 2.6%. The new S&P/Dow Jones Indices will have annual revenues of more than $400m and is expected to be operational in 1H12.
MF Global CEO Jon Corzine resigned from all posts and confirmed that he will not seek any severance payments, which according to the Associated Press, could have amounted up to $12.1m including cash and benefits.
CBOE reported diluted 3Q11 EPS of $0.45. Total revenues were $143.6m (+35% y/y), total expenses excluding volume incentives were $65.1m (-2% y/y), and volume incentives were $3.5m (-23% y/y). Adjusted diluted EPS was $0.50 (+92% y/y), which excludes the accelerated recognition of stock-based compensation expense recognized in 3Q10, and adjusted operating expenses were $68.6m (+14% y/y). Equity options ADV were 1,968K contracts per day (+5% y/y), index options ADV were 1,590K contracts (+70% y/y), ETF options ADV were 1,861K contracts (+105% y/y), and CFE futures ADV were 62K contracts (+313% y/y). Total ADV was 5,481K contracts per day (+47% y/y).
NYX CEO Duncan Niederauer expressed confidence about the deal’s success, and dismissed regulatory concerns about vertical integration as “idealistic” and “as in any deal, at some point the logic of the combination would not hold together if we are asked to give up too much. This is not where we are right now.” According to the Financial Times, Niederauer also said he would abandon the deal should regulators and authorities block a substantial part of it.
SGX suspended MF Global’s membership on the exchange. According to Asia E-trading, MF Global has no more outstanding proprietary positions and almost all their customers’ positions on SGX have been transferred to other clearing members or closed out by MF Global. Only a small number of customer accounts remain open and available for transfer to other brokers or to be closed out.
US President Obama’s administration will not join EU on the financial transactions tax, although “the president made clear that he shares the objectives that Chancellor Merkel and President Sarkozy have in ensuring that the financial sector contributes an appropriate share to the revolution of crises.” According to the WSJ, the Obama administration supports a different tax, more specifically a financial crisis responsibility fee, on the largest financial institutions.
FSA appointed Zitah McMillan as its new communications director. Zitah previously worked as the Acting Director of Communications at the Department for Work and Pensions. Prior to that, Zitah worked as the Marketing Director and Brand Director at Publicis.
Provided By: Equity Research Desk, www.erdesk.com
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