Financial Regulatory Forum

NYSE and Deutsche Borse: New York not home, so merger far from home-free

A U.S. flag hangs outside the New York Stock Exchange building, February 15, 2011. Deutsche Boerse will take over NYSE Euronext to create the world's largest exchange operator in a deal that dodges key questions that could yet threaten its completion. REUTERS/Joshua Lott Feb. 18 (Westlaw Business) The much-ballyhooed merger of the parent company of the New York Stock Exchange with that of German exchange Deutsche Borse makes two things clear – if they can make it through the thicket of global regulatory approvals and similarly convince their shareholders to tender into the offer, they’re home free. The just-filed agreement and related corporate governance documents make equally clear that “home” will not really be New York, and the NYSE Euronext will be the New York Stock Exchange no more.  This may make regulatory approval that much more difficult, with U.S. regulators in particular looking at issues from antitrust to financial markets, to national security. (more…)

LCH highlights challenge in derivatives regulation

By Huw Jones

LONDON, May 18 (Reuters) – LCH.Clearnet moved to reassure markets on Tuesday that its capital base was adequate despite a ratings downgrade at a time when regulators are finalising laws to force banks to clear vast numbers of derivatives.

Standard & Poor’s placed LCH.Clearnet’s rating on “negative credit watch” last week after one of its biggest customers, the transatlantic exchange NYSE Euronext said it would stop using the Anglo-French clearer from late 2012.

“The clearing activity itself is not dependent upon the creditworthiness of the clearing house,” LCH.Clearnet Chief Executive Roger Liddell told an industry conference.

NYSE Euronext lobbying more, rosy on market reform

By Jonathan Spicer

NEW YORK, April 29 (Reuters) – NYSE Euronext has ramped up its lobbying effort in Europe, and the exchange operator’s chief said that it should benefit from regulatory changes on both sides of the Atlantic.

“The regulatory landscape in both regions is a net positive for the company,” Chief Executive Officer Duncan Niederauer said on Thursday at NYSE Euronext’s annual shareholder meeting.

(more…)

US Stock exchange heads take aim at ‘Volcker rule’

By Jonathan Spicer

NEW YORK, Feb 9 (Reuters) – The heads of the top U.S. stock exchanges have poured cold water on the Obama administration’s plan to bar banks from proprietary trading.

The chief executive of NYSE Euronext said on Tuesday the president’s plan falls short of targeting what caused the financial crisis, while his counterpart at Nasdaq OMX group Inc, the day before, said the plan would probably have to be changed.

Obama last month surprised Wall Street with the ambitious proposal to limit risky trading by banks. Dubbed the ‘Volcker rule’ after Paul Volcker, the White House economics adviser, it would bar banks from proprietary trading, or placing bets on markets with their own money.

US lawmakers urged to drop clearinghouse ownership cap

U.S. Representative Barney Frank (D-MA) holds a news conference on issues before the House Financial Services Committee on Capitol Hill in Washington, November 3, 2009.  REUTERS/Jonathan Ernst   By Jonathan Spicer
NEW YORK, Nov 20 (Reuters) – NYSE Euronext, LCH.Clearnet, BATS Global Markets and other firms partnered with banks have urged two U.S. legislators to drop a proposed “rigid” cap on dealer ownership of clearinghouses, according to a letter sent this week.

(more…)

“Flash” trading controversy in U.S. raises issue of front-running

NYSE-Euronext Executive Vice President Larry Liebowitz (l) (File photo) By Jonathan Spicer
NEW YORK, Aug 7 (Reuters) – With so-called “flash” orders exploding into public view, investors are wondering if the rapid-fire dissemination of their investing intentions is costing them money.

(more…)

NASDAQ backs ban on “flash” orders – U.S. Senate critic Schumer

Nasdaq backs ban on ‘flash’ trading -Schumer
By Rachelle Younglai and Jonathan Spicer
WASHINGTON/NEW YORK, July 28 (Reuters) – The Nasdaq Stock Market supports a ban on so-called “flashes,” order types that it and other stock-trading venues send to a select group of traders fractions of a second before revealing them publicly, Senator Charles Schumer said on Tuesday.

(more…)

  •