image EXCHANGE NEWSWIRE, 28 July 2010

DB1 reported 2Q10 EPS of €0.86 (adj. EPS of €1.18) helped by lower adjusted expenses of €274m (-10% Y/Y; +1% Q/Q). Revenues were  €564m (+9% Y/Y; +11% Q/Q). Cost saving reached €82m in 2Q10 Management now expects FY10 adjusted costs to come below the €1,210m guidance.

MarketAxess 2Q10 EPS was $0.18 per share, one cent above consensus estimates. Revenues increased 36.7% to $35.3 million, slightly above consensus, primarily due to higher commissions on US high grade products. Expenses increased 16.7% to $23.5 million due to higher employee compensation expenses. MKTX now expects FY10 expenses to be in the range of $94 mn to $96 mn.

 

TMX 2Q10 EPS rose 2% Y/Y to $0.64, one cent below consensus estimates. Revenues increased 3% Y/Y to $143 mn, in-line with estimates. Cash trading revenues decreased 14% Y/Y to C$26 mn while derivatives trading increased 5% Y/Y to C$21.3 mn and energy markets revenues rose 6% to C$11.2. Listing fees billed rose 27% Y/Y to C$54 on strong initial listings and enabled cash flows to expand 47% Y/Y to 73.8 mn (or C$0.99 per share). Expenses rose 8% Y/Y to C$74

Bombay Stock Exchange: Soros is in talks with Dubai Holding to buy a 4% stake in the Bombay Stock Exchange for $40m, valuing the exchange at $1 bn.

LSE and NSE signed a letter of intent to evaluate joint strategic business opportunities. LSE will explore the possibility licensing the FTSE 100 Index to the NSE and NSE may license the S&P CNX Nifty to LSEG for the listing of options and other contracts.

SGX SVP of Derivatives Janice Kan said the exchange plans to introduce derivatives on Indian and Chinese stock indexes by year end.

SGX confirmed the launch of copper and zinc futures contracts in collaboration with LME by 1Q11. Other metal contracts, including steel billet, would be launched later in the year, subject to regulatory approval.

LME will accept steel deliveries at a new warehouse in New Orleans starting July 29. The exchange would add other delivery locations in the US and is considering opening a Taiwanese warehouse as well.

PSE appointed Val Suarez as President and CEO. Mr. Suarez was previously COO, SVP and managing partner of the Suarez and Reyes Law Offices in Makati City.

JSE experienced a technical glitch on July 27 that forced to halt equities trading for six hours and close an hour later.

KRX and the Ministry of Strategy and Finance, Financial Services Commission of Korea prepared a plan to stimulate trading of long-term Korea Treasury Bond (KTB) Futures that includes the stimulation of long-term KTB trade in the cash market, the reinforcement of market making function for long-term KTB Futures and the enhancement of market participants’ convenience.

Goldman Sachs launched a clearing service for OTC interest rates, FX, credit, equities and commodity derivatives.

Waddell & Reed 2Q10 diluted EPS increased +48% Y/Y to $0.40 on operating revenues of $257 mn (+29% Y/Y) and operating expenses of $195 mn (+21% Y/Y). Operating margin increased to 24.2% from 19.0% a year ago. AUM declined -8% Q/Q to $68.3 bn with net flows of $0.7 bn and market losses of $6.7 bn.

Pzena 2Q10 diluted EPS declined -29% Y/Y to $0.05 on revenues of $19.4 mn (+37% Y/Y) and operating expenses of $9.4 mn (+19% Y/Y). AUM declined -15% Q/Q to $13.1 bn on net outflows of $0.3 bn and market depreciation of $2.0 bn.

EFG International 1H10 core net profit increased +17% Y/Y to CHF88.4 mn, excluding an impairment charge of CHF859.5 mn related to specialist product businesses MBAM, CMA, and DSAM. Core operating income increased +1% Y/Y to CHF407.1 mn and core operating expenses remained flat Y/Y at CHF321.0 mn. Clients’ AUM increased +1.5% h/h to CHF 87.5 bn with net new assets from private clients of CHF6.3 bn.

EFG International appointed Jean-Christophe Pernollet as CFO; former CFO, Rudy van den Steen, resigned.

NASDAQ OMX was upgraded to "Buy" from "Hold" at Stifel Nicolaus. Target price was set at $23.

EFG International was downgraded to "Market Perform" from "Outperform" at Keefe, Bruyette & Woods. Target price was reduced to CHF18 from CHF22.

Affiliated Managers was reinitiated with an “Outperform” rating at Credit Suisse. Target price was increased to $91 from $87.

The SEC announced changed to the way the agency receives comments; the public will be able to comment before proposed regulatory reform rules and amendments are made. Additionally, the agency will provide greater public disclosure of meetings with SEC staff.

 

Provided By: Equity Research Desk, www.erdesk.com