Deutsche Boerse to set-up Singapore clearinghouse

Exchange shorts

Deutsche Boerse AG (DB1) reported 4Q13 adjusted EPS of €0.74 (-11% q/q, +15% y/y), just below consensus; GAAP EPS was €0.68 (-18% q/q, -17% y/y), including €16.7m in costs of efficiency programs and legal costs in connection with the OFAC settlement. Net revenues were €473m (+3%q/q, +6% y/y) and adjusted operating expenses were €268m (+21% q/q, +15% y/y). The Executive Board proposed a FY13 dividend of €2.10, to be approved during DB1 Annual General Meeting. DB1 will increase investments in growth and infrastructure by €30m in FY14. DB1 guided FY14 adjusted operating expenses at €1.05b (+8.5% y/y), including €50m EEX consolidation.

DB1 plans to set up a new clearing house in Singapore.

DB1 CEO, Reto Francioni, said that chances of hostile takeover succeeding in the sector are zero, as regulatory hurdles are too high, in reference to a possible hostile CME bid.

BATS/DirectEdge released an implementation plan and schedule for integrating the BATS and Direct Edge exchanges, which involves migrating EDGX and EDGA to the BATS technology platform. Most Direct Edge order types and routing strategies will be continued on BATS’ technology, based on customer demand. While EDGA and EDGX will remain at the Equinix campus in Secaucus, NJ, both exchanges’ matching engines will be moved from the NY4 data center to the NY5 data center by January 2015. In 2Q15, BYX, BZX and BATS options will also be relocated to the Equinix NY5 datacenter in Secaucus, NJ. 

BATS and Equinix will establish preferential pricing for customers who choose to co-locate their equipment with Equinix at NY5 to connect to BATS’ exchanges. “BATS Customer Pricing” will provide customers discounts regarding the hosting of equipment at the NY5 data center.

NDAQ launched two new indices, the NASDAQ IBIS Focused Growth Index and the NASDAQ IBIS Focused Growth Total Return Index.

NDAQ will roll out a kill switch that will stop trading of its member firms when pre-set limits are breached, the move is set to help catch trading errors. Reported by Reuters. 

CME appointed Nobel Laureate Myron S. Scholes to the CME Group's Competitive Markets Advisory Council (CMAC).

EMIR: Two companies said that backlogs at DTCC European trade repository forced them to stop trading swaps, according to Risk.net.

BVC halted fixed-income trading on MEC Plus by 2 1/2-hours due to a technical glitch.

FTT: France and Germany renewed their push for the tax. Hollande want to see a FTT agreed before this year’s EU elections. Reported by Bloomberg.

Nairobi SE will start trading derivatives and REITs.

APX, Asia Pacific Exchange, was launched on Thursday plans to attract 50 listings by the end of next year. Reported by Reuters.

South Corea Financial Services Commission is promoting the launch of 20Y T-bond futures.

MiFID II: the EU commission listed areas of the recent agreement where it is not satisfied with. For example, the exemptions from publishing the prices a firm want to trade were wider than desired. Then, the so-called open access that can be delayed and the scope of work that needs to be carried by the ESMA go beyond its limitations.

  

About the Author

Bernardo Mariano brings to ERDesk his experience structuring private deals for the acquisition of mutual exchanges. Prior to joining ERDesk Bernardo worked as a Director for Instinet and later, CEO of Reuters' Bondex. He holds an MS in Economics from University of Illinois and an MIA in Finance from Columbia University. He can be reaced at be reached at mariano@erdesk.com. 

Equity Research Desk (www.erdesk.com) provides fundamental analysis of global capital markets related entities to support the investment process of buy-side analysts at hedge funds and traditional money managers. The company focuses its coverage on securities exchanges, discount brokers, trading platforms, asset managers, financial-related technology companies and intellectual property assets in the US, Europe, Asia, and Latin America.

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