Exchange shorts

February 5, 2016 10:35 AM

Chicago Stock Exchange (CHX) said Chinese group Chongqing Casin agreed to acquire it in a deal expected to close in 2H16, subject to regulatory approval. CHX is minority-owned by E*Trade, BofA, Goldman Sachs and JPMorgan. Casin said it acquired the exchange to “bring Chinese growth companies to U.S. investors.”

Virtu will trade on behalf of investors in 2Q16, giving asset managers access to use its trading computers; according to Bloombrerg.
LSECBOE: CurveGlobal, the new interest rates futures exchange, appointed Andrew Ross as CEO. Ross most recently was Global Head of Agency listed derivative electronic execution at Morgan Stanley. CurveGlobal also announced BNP Paribas will become the seventh bank shareholder.

CME reported 4Q15 adj EPS of $0.92 (-9% q/q, -3% y/y), in line with ERDesk estimates and 2c above consensus’. GAAP EPS was $0.86 (-19% q/q, -5% y/y) including $11.9m loss on sale of BVMF3 shares. Revenues were $814m (-4% q/q, -3% y/y) and adjusted OpEx was $337m (+6% q/q, -1% y/y). CME increased its quarterly dividend from $0.50 to $0.60 on Wednesday. CME guided 2016 OpEx excluding licensing and other fee agreements of $1,185m from $1,171 in 2015. CME expects 2016 CapEx at $115m-$120m, from $113m in 2015.

CME, Thomson Reuters and London Bullion Market Association (LBMA) agreed to suspend of the price-setting process of the silver benchmark if the administrators believe the integrity of the auction or participants is threatened.
ASX signed a deal with NASDAQ to upgrade its equities clearing platform.
ITG reported an adjusted loss of 7 cents per share for the 4Q15. Revenues declined 22% to $116.5 million.
ICE CEO, Jeffrey Sprecher, said IEX "is looking to have a regulated monopoly status that the other exchanges do not have." "It is un-American and it is not fair," Sprecher said. ICE CEO, Jeffrey Sprecher, accused reporting and best execution rules in MiFID ll of balkanizing EU’s securities markets and said that IDC could benefit from business opportunities.
MCX reported 3Q15 net profit of Rs179.5m (-22% y/y), with revenues at Rs569.6m (0% y/y) and expenses of Rs428.4m (+10% y/y); according to NDTV Profit.
Dubai Financial Market Board of Directors proposed a cash dividend of AED400m, or 5% of the capital.

Thomson Reuters said its SEF captured 55% of the FX dealer-to-client market segment in Q4 2015. Thomson Reuters SEF allows customers to trade FX options, NDFs and NDF swaps electronically through multibank request-for-quote liquidity and an anonymous central limit order book.


FCA said algorithmic and HFTs will be captured by the accountability regime for wholesale markets. The regime requires banks to certify whether individuals and traders are suitable for particular rules.

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