European Network Exchange (ENX) reported 3Q14 adj. EPS of €0.38 (-3% q/q, +568% y/y), 1c above our estimate and 7c above the consensus estimate. Reported EPS was €0.71 (+73% q/q, +311% y/y), including a provision for uncertain tax of €18.6m and €5.7m restructuring costs; on adjusted revenues of €112m (-3% q/q, +4% y/y), and adjusted expenses of €73m (+2% q/q, -11% y/y). €30m efficiencies were already achieved on an adjusted basis, and €60m efficiencies will be delivered by end of 1H15, 18 months ahead of schedule.
BGC’s $5.25 per share all-cash tender offer was rejected by the GFI Group Board of Directors in favor of CME’s $4.55 per share all-stock deal. BGC responded to the Board’s decision by stating that “we are confident that GFI’s outside shareholders will view BGC’s fully financed $5.25 per share all-cash tender offer as superior to the $4.55 per share all-stock transaction with CME” and that “we remain committed to completing our tender.”
Chicago Mercentile Exchange’s Board of Directors declared a 4Q14 dividend of $0.47 per share, payable on December 26, 2014, to shareholders of record as of December 10, 2014.
HFT trading: U.S. plans to slow high-speed traders are being opposed by CEOS from CME, Eurex and InterContinental Exchange.
NDAQ won the bid to manage the securities information processor (SIP), Reuters reported. The selection of Nasdaq will lead to the formation of a limited liability company that will be called Consolidated Tape C (CTC) LLC.
Singapore Exchange Limited (SGX) experienced an outage on its equity and derivatives market that lasted for hours on Wednesday, Reuters reported. According to SGX president Muthukrishnan Ramaswami, the shutdown was caused by a momentary fluctuation in power supply from substations that power its data center.
Chicago Futures Trading Commission Chairman Timothy Massad stated that the regulator will not enforce a November 15 deadline for swaps packaged with other uncleared swaps or with other securities to be traded on electronic trading platforms. As quoted in Reuters, Massad stated that “we recognize the market needs a bit more time on certain remaining packages.”
CFTC Chairman Timothy Massad raised concerns about clearinghouses, saying that “I believe that everyone here understands that while clearinghouses are a good way to monitor and mitigate the risk of transactions that would otherwise be conducted on a bilateral basis, they do not eliminate risk.”