EXCHANGE NEWSWIRE, September 28, 2012
LSE’s share price fell by as much as 9.3% to 930 pence, the most in three years, after saying that EU regulations will reduce income at its Italian central counterparty and may require LCH.Clearnet to boost capital. According to LSE spokeswoman, Victoria Brough, the revenue the exchange receives from its Italian clearinghouse accounted for 14% of group sales in the six months ended March 2012.
NYX priced its cash tender offer to purchase any and all of its outstanding 4.80% Notes due 2013 pursuant to the previously announced offer. The principal amount outstanding is $750,000,000, with a reference yield of 0.178%.
CBOE: The Illinois Supreme Court rejected ISE’s appeal of CBOE’s index option victory which prohibits ISE from listing or providing an exchange market for trading in options on either the S&P 500 or the DJIA, and also forbids OCC from clearing options on these indexes for ISE. According to CBOE Chairman and CEO William Brodsky, “the Illinois Supreme Court has validated CBOE’s position that neither ISE nor any other third party should be able to hijack proprietary index options that CBOE created”.
DB1 plans to offer trading in more than 2,000 government and corporate bonds and 60 German government bonds to its Xetra continuous order book staring October 1. According to the Trade News, Xetra will show the five best bid and ask limits. Managing director Xetra market development, Rainer Reiss, also said that “we already meet the transparency requirements of the revised MiFID financial market regulations which will be mandatory in two to three years’ time.”
EEX will auction a total of 23.5m EU allowances (EUA) for the third trading phase over the rest of the year on behalf of the German government. The auctions will start on October 12, with sales of 2.4m EUAs to be held on EEX’s spot market every Friday from 0800 -1000 GMT, with the last auction of the year to take place on December 14 and will sell around 1.93m EUAs.
LIBOR: the British Bankers’ Association’s role in overseeing LIBOR should be handed to other organizations such as the FSA, according to a proposal by FSA Managing Director Martin Wheatley, Bloomberg reported. Wheatley also commented that “governance of LIBOR has completely failed,” and “has been exacerbated by a lack of regulation and a comprehensive mechanism to punish those who manipulate the system.”
US Treasury Secretary Tim Geithner urged the Financial Stability Oversight Council to vote at a November meeting to recommend that SEC impose additional industry regulations, as the industry is “susceptible to runs and cab ne a source of financial instability.” The reforms in consideration involve capital restriction on funds together with limitations or fees on redemptions by consumers; a floating net asset value for money-market mutual funds; and the imposition of capital and liquidity standard on money funds or temporary “gates on redemption.
EU competition commissioner Joaquín Almunia is focusing on an investigation in credit default swaps trading, the Financial Times reported. The review will concentrate on whether 16 investment banks are excluding competition through their exclusive provision of market data to Markit. Senior officials stated that CDS trading may have been affected by this absence of transparency.