SGX still investigating possible spoofing in derivatives market

November 6, 2015 12:46 PM
Exchange Shorts

Tullett Prebon is in talks to acquire rival ICAP’s global broking business. The combination could generate around £70 million p.a. in back office and other cost savings. Tullett said it plans cut about 5% of its voice brokers due to low activity in the swap market, which led to a 5% decline in revenues in the four months to October.

TMX 3Q15 adjusted EPS was C$0.86, one cent below 3Q14. Revenues increased 3% yoy to C$176mn. TMX repaid $77.5 million of debt and announced a quarterly dividend of C$0.40 per share.

CTIP3 reported 3Q15 adj EPS of R$0.622 (+8.2% q/q, +13% y/y) and EPS of R$0.498 (+10% q/q, +21% y/y), on net revenues of R$130m (+10% q/q, +20% y/y) and adj OpEx of R$108 (+13% q/q, +49% y/y). CTIP3 distributed R$111m, or 85% of net income, in dividends and interest on shareholder’s equity. CTIP3 acquired 4.19m shares, or R$138m through its buyback program.

ENX contests having breached AMF rules after the market authority requested fines of €4m on ENX and €5m on Virtu in a HFT case on Wednesday. Reported by Reuters.

DB1: Clearstream said German lawmakers intend to apply a 26% tax on the entire cash component of cash-and-stock takeover offers to foreigners and German nationals alike.  All shareholders holding less than 1% will be taxed but may claim back some of it depending on their country of residence.

SGX is investigating complaints on possible spoofing incidents in its derivatives market by market participants, according to Bloomberg.

CME Executive Chairman Terry Duffy said CME will consult lawyers on the details of the decision by a jury this week convicting a high-frequency trader in the US for spoofing.

ITG will sell its “energy research group” based in Calgary to Warburg Pincus for $120.5 million in cash. ITG will book a gain of between $90mn and $95mn after taxes and as a result tangible book value will increase by between $2.85 and $3.00 per share.

CCP cleared credit derivatives share increase to 31% in 1H15 from 29% in 2H14 while volume decreased lead by a reduction in interdealer activity according by BIS.

BoE published revised arrangements for its new sterling money market data collection. The document present plans for the reform of the Sterling Overnight Index Average (SONIA) benchmark interest rate.

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.