Exchange shorts: DB1, ICE, CFTC & more

Deutsche Börse (DB1) reported 4Q17 adj. EPS of €1.04 (-1% q/q, +8% y/y), 4c above our estimate and 1c above consensus. GAAP EPS was €1.15 (-4% q/q, +26% y/y). Net revenues were €639m (+11% q/q, +3% y/y), and adjusted OpEx was €344m (+20% q/q, 0% y/y). Executive Board proposes increase of 2017 dividend per share by 4% to €2.45, a pay-out of 53%. DB1 expects 2018 secular net revenue growth of at least +5%, that is expected to result in at least 10% net income growth in 2018. DB1 will from 1Q18 introduce a new financial segment reporting which will highlight growth areas and increase model transparency.

Temenos and Fidessa reached an agreement on the terms of a recommended all-cash acquisition by Temenos. Fidessa Shareholders will be entitled to receive £35.67 in cash for each Fidessa share valuing Fidessa at £1.4 bn. In addition, Fidessa Shareholders will be entitled to receive and retain a final dividend and a special 2017 dividend amounting to 79.7 pence per share.

Intercontinental Exchange (ICE) Data Services and investor data management automation Confluence signed an agreement to help asset managers meet their compliance obligations with respect to SEC Modernization and other regulatory reporting requirements.

Euroclear plans to build settlement facility for Irish securities by March 2019. New settlement system will not be based on London after Brexit.

SET appointed Pakorn Peetathawatchai as President. Pakorn joined SET since 2010 as Senior Executive Vice President, Head of Markets Division and currently serving as Senior Executive Vice President, Head of Corporate Strategy Division and Head of Finance & Investment Division, was appointed.

The Chinese Gold & Silver Exchange (CGSE), the Chinese Gold & Silver Exchange Society, is in talks with Singapore, Myanmar and Dubai to establish a gold commodity corridor to promote yuan-denominated products under China’s Belt and Road Initiative, according to South China Morning Post.

Commodity Futures Trading Commission (CFTC) Division of Market Oversight extended time-limited no-action relief to entities submitting swaps for clearing by derivatives clearing organizations (DCOs) operating under CFTC exemptive orders or no-action relief provided by CFTC staff (Relief DCOs).

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.