ICE finds a willing seller
ICE has agreed to acquire the Winnipeg Commodity Exchange (WCE), its clearing operations and physical delivery structure, for CAN $40 million, or CAN $62.08 per common share. The agreement is subject to the approval of WCE shareholders and the Manitoba Securities Commission, the WCE’s primary regulator. The deal is expected to close in the third quarter. WCE’s trading and clearing will transfer to the ICE electronic platform and ICE Clear US, which should be completed during the fourth quarter. ICE will maintain all existing WCE staff in Winnipeg under the agreement.
“This franchise brings to ICE a Canadian-based regulated futures exchange and clearing house from which we can develop additional derivative trading and clearing opportunities based on the Canadian markets which are rich in natural resources,” said Jeffrey C. Sprecher, ICE chairman and CEO, in a press statement.
The London Stock Exchange (LSE) looks set to buy Borsa Italiana for €1.6 billion euros ($2.15 billion dollars), forming a €5.777-billion rival to both NYSE-Euronext and Deutsche Boerse. The new entity will not only be the continent’s largest equities platform in terms of listings, but has the makings of becoming a serious derivatives player — especially when it comes to clearing over-the-counter (OTC) business.
The LSE already owns a controlling stake in EDX, a London-based derivatives platform positioned to provide clearing and settlement for standardized OTC derivatives, while Borsa Italiana has exercised an option to purchase a controlling stake in the MTS bond trading platform from NYSE-Euronext.
The deal still has to be approved by competition authorities in Italy and the U.K., as well as at the EU level and by shareholders of both companies.
TSE claims SGX stake
The Tokyo Stock Exchange (TSE) announced in June that it had acquired a 4.99% stake in Singapore Exchange Ltd. (SGX) Last December TSE agreed in principal to license its Topix-related indexes to SGX to create derivatives on them and to explore trading and clearing links between the two exchanges according to a TSE release. TSE also indicated interest in acquiring a larger stake in the SGX subject to the approval from the Monetary Authority of Singapore and progress on collaboration with SGX.
The Multi Commodity Exchange of India (MCX) and Shanghai Futures Exchange of China in June signed a memorandum of understanding to share knowledge and expertise. Both exchanges trade metals and agricultural commodities.
TSX sues rival
TSX Group Inc. is suing the operator of upstart stock exchange rival Pure Trading for $101 million, alleging the new market illegally used trading system specifications prepared by Toronto-based TSX to speed up its launch.
TSX alleged in a statement filed with the Ontario Superior Court that Pure, which has been working for the past year to create a rival to the TSX's Toronto Stock Exchange, copied substantial portions of various TSX technical documents outlining connection and data transmission specifications.
TSX also accused Pure and its parent company, Canadian Trading and Quotation System Inc. (CNQ), of breach of copyright for using terms that TSX has trademarked, the statement says.