Swiss exchange signals interest in Euronext
1. Swiss stock exchange operator SIX Group would consider bidding for its larger European competitor Euronext if the exchange were to come up for sale, SIX's chief executive said.
2. "Should ICE put Euronext up for sale, we would certainly take a look," CEO Urs Rueegsegger said at the Swiss exchange's annual media conference in Zurich, adding Euronext's equity and derivatives business were particularly of interest.
3. Euronext's clearing and settlement business and its financial information services could also be attractive for the Swiss firm, Rueegsegger said.
4. Euronext is currently owned by Intercontinental Exchange which said last December it planned to float Euronext after it completes its $8.2 billion acquisition of NYSE Euronext in the second half of this year.
5. Sources have told Reuters that ICE would consider selling Euronext as an alternative to floating it if bids were to emerge.
6. Global stock exchanges have been in a merger frenzy as aggressive, upstart trading platforms have eaten into the market shares of traditional players such as Deutsche Boerse and NYSE Euronext, putting pressure on them to consolidate and to cut costs.
7. Rueegsegger said he expected a lot of interest in Euronext which operates exchanges in Paris, Amsterdam, Brussels and Lisbon. According to analysts the company could be worth between one billion euros and two billion euros ($1.28-$2.56 billion).
8. Euronext is considerably bigger than SIX. Size plays an important role in the exchange business because of the relatively high fixed costs.
Source - http://www.reuters.com/article/2013/03/27/six-euronext-idUSL5N0CJ3XL20130327
2. "Should ICE put Euronext up for sale, we would certainly take a look," CEO Urs Rueegsegger said at the Swiss exchange's annual media conference in Zurich, adding Euronext's equity and derivatives business were particularly of interest.
3. Euronext's clearing and settlement business and its financial information services could also be attractive for the Swiss firm, Rueegsegger said.
4. Euronext is currently owned by Intercontinental Exchange which said last December it planned to float Euronext after it completes its $8.2 billion acquisition of NYSE Euronext in the second half of this year.
5. Sources have told Reuters that ICE would consider selling Euronext as an alternative to floating it if bids were to emerge.
6. Global stock exchanges have been in a merger frenzy as aggressive, upstart trading platforms have eaten into the market shares of traditional players such as Deutsche Boerse and NYSE Euronext, putting pressure on them to consolidate and to cut costs.
7. Rueegsegger said he expected a lot of interest in Euronext which operates exchanges in Paris, Amsterdam, Brussels and Lisbon. According to analysts the company could be worth between one billion euros and two billion euros ($1.28-$2.56 billion).
8. Euronext is considerably bigger than SIX. Size plays an important role in the exchange business because of the relatively high fixed costs.
Source - http://www.reuters.com/article/2013/03/27/six-euronext-idUSL5N0CJ3XL20130327
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ICE revises structure of NYSE Euronext deal
1.
Intercontinental Exchange is revising the structure (currently under
regulatory review) of its $8.2 billion proposed acquisition of NYSE
Euronext.
2.
ICE said in a Securities and Exchange Commission filing that it will
buy NYSE Euronext under a newly formed company, ICE Group, which will
own both ICE and NYSE Euronext. Each share of ICE common stock will be
converted into the right to one share of the new holding company.
3. According to the filing, all other terms of the deal remain substantially the same.
4. The new company's stock would be listed on the New York Stock Exchange under ICE's current stock symbol "ICE."
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Singapore Exchange (SGX) tightens grip on Asian derivatives market
1.
Singapore Exchange Ltd has announced two new tie-ups with other Asian
bourses and disclosed plans for a number of new trading products as it
tries to strengthen its position as the region's top exchange for
derivatives.
2.
Southeast Asia's largest exchange said it has signed a deal with Korea
Exchange to explore how they can collaborate on derivative clearing
services, a move that comes as Asian countries grapple with how to bring
in global reforms to the over-the-counter swaps markets. The two
bourses said they were looking at possible ways their users could take
advantage of each other’s facilities for over-the-counter derivatives
clearing.
3.
Regulatory reforms around the world are trying to push the trillions of
dollars in over-the-counter derivatives that are traded every day to be
centrally cleared to try to reduce the level of risk they pose to the
financial system. Half a dozen Asian exchanges have launched, or are
launching, clearing houses, leading to concerns there will be too many
such facilities in the region. While the region has some of the world's
fastest growing economies, its derivatives markets are still a fraction
of the size of those in Europe and London.
4.
The move by Singapore and South Korea could ease banks' concerns that
they will either have to invest significantly in becoming members of all
of the regions' clearing houses or else withdraw from certain markets.
The release was one of a number of announcements Singapore Exchange made
at a derivatives industry conference in Boca Raton in Florida.
5.
It also said it has signed an agreement with the Philippine Stock
Exchange to develop derivative products together. Singapore is planning
to launch a Philippines index futures contract, based on the MSCI
Philippines index, by the fourth quarter of this year. The Philippines
has the best performing stock market so far in Southeast Asia this year,
rising nearly 17 percent. Additionally, Singapore is going to start
offering foreign exchange futures in the third quarter of this year,
provided it gets the nod from the regulators.
6.
The exchange is planning to offer trading and clearing of futures in
four currency pairs: Australian dollar/U.S. dollar, Australian
dollar/Japanese yen, Indian rupee/U.S. dollar and U.S. dollar/Singapore
dollar. "The introduction of FX futures for trading and clearing is
SGX's response to strong client demand for currency management tools to
complement its suite of highly liquid Asian equity derivatives," the
exchange said in a statement.
7.
The bourse has also extended a licensing agreement with index provider
MSCI so investors can now trade 14 additional indices including ones
linked to Thailand and the Philippines.
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CME Group launches interest rate swap clearing in London
Highlights
* Financial Services Authority approves launch
* Venture challenges LCH. Clearnet
* Major firms already trading
Details
1.
CME Group Inc has launched a clearing service for interest rate swaps
in London, just one week after U.S. regulators began to phase in long
anticipated mandates for rate swap clearing on CME's home turf, the
exchange operator said on Monday.
2.
The U.S. exchange operator's London-based CME Clearing Europe won
approval from the U.K.'s Financial Services Authority for its first
foray into clearing over-the-counter (OTC) financial derivatives. It has
been clearing energy swaps in London for about two years.
3.
The venture challenges LCH.Clearnet, which clears 90 percent of
bank-to-bank interest rate swaps and has been expanding in the United
States. The London Stock Exchange is buying LCH.
4.
BNP Paribas, Credit Suisse, Goldman Sachs , HSBC, JP Morgan Securities,
Nomura International and The Royal Bank of Scotland have traded CME's
interest rate swaps so far, CME said. Citibank, Morgan Stanley and UBS
will begin trading "in the coming weeks," according to the exchange
operator.
5.
CME's launch offers dealers an "increased choice of venues at which to
clear their OTC positions in line with regulatory requirements," said
Paul Twohey, European head of OTC clearing for Credit Suisse.
6. CME launched OTC interest rate swaps for seven currencies.
7.
It comes a week after U.S. regulators began phasing in mandates for
rate swap clearing, rules that result from the 2010 Dodd-Frank
legislative overhaul of Wall Street.
8.
Starting on March 11, 2013, hedge funds and other large investors had
to start guiding their trading in derivatives through clearinghouses.
9.
"The expansion into IRS clearing deepens our offering, providing access
to financial derivative clearing through our European platform,
accommodating a broad base of international customers," said Andrew
Lamb, chief executive officer of CME Clearing Europe.
10. CME said it plans to launch over-the-counter foreign exchange and credit default swaps in London later this year.
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ICE to Launch Index CDS Futures in May 2013
1.
Intercontinental Exchange Inc. said it will launch credit-default swap
futures in May, potentially opening up the clubby corner of the
derivatives markets to retail and other new investors.
2.
The creation of a successful CDS futures index could help revive parts
of the credit-derivatives market, where outstanding volumes have fallen
to $26.9 trillion as of last year, less than half of their peak of $58
trillion in 2007.
3.
Credit-default swaps, or CDS, function like insurance for nonpayment on
bonds and loans. The exchange operator last year transitioned the bulk
of its energy swaps to more-standardized futures.
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SGX in talks to buy stake in LCH.Clearnet
11. Singapore
Exchange Ltd (SGX), Asia's second-largest bourse operator by market
capitalization, is in talks to buy a stake in transatlantic clearing
house LCH.Clearnet, betting on an increase in trading volumes for
derivatives
22. SGX may participate in the London Stock Exchange Group's bid for a 60 percent holding in LCH or buy a separate stake.
33. Exchanges
are trying to expand into central clearing following a regulatory
overhaul of the over-the-counter derivatives market by the Group of 20
leading economies (G20).
44. Regulators
want trades in derivatives, such as interest rate swaps, to be put
through a clearing house in order to reduce the level of systemic risk
posed by the market and make it more make transparent.
55. SGX
already has its own clearing service, AsiaClear, which handles trades
in commodities and financial derivatives, including interest rate swaps
and foreign exchange forwards.
Source - http://www.reuters.com/article/2013/02/05/us-singaporestockexchange-lch-idUSBRE91400D20130205
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