Sometimes it’s the little things in a big deal that are interesting to note. There is much to analyze in the IntercontinentalExchange‘s $8.2 billion purchase of NYSE Euronext – from OTC interest rates and credit default swaps to securities to futures. But with its acquisition of the New York Board of Trade (NYBOT) in 2007, ICE is now dominant in the global trading of soft commodities, as it acquired the lion’s share of the world’s sugar, coffee and cocoa derivatives trade. While the likely increase in contract volume once the deal has closed is not staggering, the geographical reach is…
Tag Archives: IntercontinentalExchange
As we head toward the end of a rather difficult year for most exchanges, we also appear to be headed toward the next round of consolidation in the industry. IntercontinentalExchange (ICE) has pulled off the once unthinkable – It has bought NYSE Euronext. The deal, valued at $8.2 billion, is a blockbuster the industry hasn’t seen in a few years (LME-Hong Kong Exchanges notwithstanding), and it could launch the next round of consolidation in the industry. The futures and options markets have undergone dramatic and somewhat predictable changes in the past decade. The move from member-owned to publicly-owned exchanges opened…
John Lothian Newsletter: IntercontinentalExchange to Acquire NYSE Owner for $8.2 Billion; CFTC agrees more delays to reforms; Getco maps out post-Knight crusade John Lothian Newsletter,Newsletter
ICE and NYSE Euronext have agreed to a merger deal. The CFTC is distributing delays and no-action letters to freshly-regulated dealers as industry participants struggle to gain compliance with new regulations. Getco outlines its future after its intended acquisition of Knight is completed. In First Read today, John Lothian and Jim Kharouf discuss the new ICE-NYSE deal and what it might mean for the future of the industry. Also, if you missed it yesterday, take a look at the Allan Schoenberg video interview, as he explains how CME Group increasingly utilizes social media as a content distribution platform to discuss…
John Lothian Newsletter: NYSE Euronext, ATG Announce Brazil Trading-Platform JV; ICE Sees Futures Shift Reviving Slowed Swaps Trade; CME Delays Deliverable Swap Futures Until Dec. 3 John Lothian Newsletter,Newsletter
NYSE Euronext pairs up with Brazil’s ATG to create a new trading platform for Brazilian stocks. IntercontinentalExchange says they expect more and more traders will begin to use energy futures rather than swaps, as the regulatory landscape continues to shift. In the wake of Hurricane Sandy, CME Group elects to delay the launch of their new deliverable swap futures product until early December.
John Lothian Newsletter: ICE Asks SEC to Clear European Sovereign Swaps; S&P found guilty of misleading investors; BATS Chi-X Europe Introduces New Interbook Order Types John Lothian Newsletter,Newsletter
IntercontinentalExchange asks the SEC for permission to take on a new project: clearing swaps for five countries in Europe. Standard & Poor’s gets taken to the woodshed in Australia, as a judge rules that the company did indeed mislead investors by slapping an “A-OK” rating onto rickety products that collapsed in 2008. BATS Chi-X Europe adds two new types of interbook orders to its lineup for testing, and has plans to take the new orders live later this month.
John Lothian Newsletter: ICE push into Europe with Dutch purchase; Exchanges Face SEC Scrutiny on New Products; Nasdaq pushes into post-trade monitoring John Lothian Newsletter,Newsletter
IntercontinentalExchange hops on the bus to Europe, preparing to take a majority interest in a Dutch energy exchange. The SEC begins to target and investigate exchanges and the way that high-frequency trading customers and processes are handled relative to the rest of the trading population. As brokers search for better ways to manage trade risk, Nasdaq signals its entry into the post-trade risk arena.