Euronext to offer user choice clearing model

May 13, 2016 08:32 AM
Exchange Shorts

Euronext will acquire 20% of EuroCCP for €14m subject to closing adjustments and regulatory approval. ENX will offer choice in clearing within the Eurozone for its equity market.

Also, ENX released its new strategic plan, Agility for Growth, setting financial targets for the 2015-2019 period. ENX expects to deliver 2% CAGR revenue growth and, on top of that, see €70m of additional revenue from new initiatives. Total revenue CAGR is expected to be 5%, excluding clearing revenues. ENX targets €22m of gross efficiencies and considering a 1% inflation rate, ENX expect cost base to increase by €35m or a CAGR of 1%. EBITDA margin is expected to reach 61%-63% by 2019. ENX will allocate €100m-€150m to develop cost and bolt-on acquisitions over the period. BoD confirmed dividend policy of 50% of earnings.

The Chicago Mercantile Exchange will list physical delivery locations in Asia for its copper contracts, according to Metal Bulletin.

The London Stock Exchange and DB1 will hold merger votes after UK’s June 23 referendum on Euopean Union membership; no exact date has been given yet. Reported by Reuters.

DB1 CEO Carsten Kengeter believes dual headquarter structure of Frankfurt and London is important to the merger structure. Kengeter also said the UK staying in the EU and taking an active role in the EU is preferred.

BVMF3 reported 1Q16 adj EPS of R$0.264 (-12% q/q, +22% y/y) and IFRS EPS of R$0.190 (+22.5% y/y), on net revenues of R$564m (+3.7% q/q, +8.3% y/y) and adj. OpEx of R$144m (-12% q/q, +22% y/y). BVMF3 reaffirmed 2016 OpEx of R$640m-R$670m and CapEX of R$200m-R$230m. BVMF approved payment of IoC of R$169.7m or R$0.095 per share, equivalent to 50% of 1Q16 IFRS net income.

BVMF3 Chief Information Officer, Luis Saliba Furtado, presented resignation to be effective as of April 30 2017. BoD elected Rodrigo Nardoni as co-CIO.

Interactive Brokers plans to offer NextShares managed ETF to retail investors and financial professionals through its investing and trading platforms.

NZX will launch milk price futures contracts on 27 May.

ASIC: a push towards electronic trading in OTC interest rates contracts could face resistance from the four largest Australian banks. Banks fear eliminating the “name give-up” practice will reduce visibility on trade counterparties.

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