Exchange Sector Review 8/27
Exchange Highlights (as of 16:30 GMT time – market close in London)
The exchange sector was down 30 bps, underperforming global equities by 10 bps. Interdealer brokers were down 210 bps. YTD the sector is underperforming global equities by 558 bps.
CME is applying to the UK’s FSA to create a London-based derivatives exchange. CME Europe would initially begin trading FX futures and is expected to launch mid-2013. Robert Ray, current MD of product and services will become CEO of CME Europe. CME may offer trading of interest rates in its UK unit after liquidity in currency contracts has been established, Bloomberg reported.
TSE acquired a two-thirds stake in OSE for JPY 86b ($1.1b) in a public tender. According to Reuters, 80% of all outstanding shares in OSE were tendered in the offering, higher than the two-thirds limit set by TSE.