London Stock Exchange gets a foot in America's door

November 14, 2014 04:05 AM

BVMF3 reported 3Q14 adj. EPS of R$0.1953 (-4% q/q, -8% y/y), vs. ERDesk estimate of R$0.1949 and the consensus estimate R$0.22. Reported EPS was R$0.1303 (-4% q/q, -12% y/y) vs. our estimate of R$0.1295 and the consensus estimate of R$0.14. Net revenues were R$546m (+17% q/q, +2% y/y), expenses were R$194m (+9% q/q, 0% y/y) and adj. OpEx was R$147m (+9% q/q, -2% y/y). BVMF3 bought back 1.2m shares for R$13.7m during 3Q14 and 11.2m shares for R$119.2m during October. Full year purchases total 78.4m shares at an average price of R$10.6 per share, reaching 4.1% of the free-float. BVMF3 will pay a R$191m dividend, or 80% of 3Q14 GAAP net income.

London Stock Exchange: up to 40% of the exchange’s profits are expected to be derived from the United States once it completes its $2.7b takeover of Frank Russell, according to LSE CEO Xavier Rolet, the Standard reported. Rolet was quoted saying that “we now have a very, very strong leg in America which will account for a third of our revenues and make us a truly global player in the financial infrastructure market.”

CFTC Chairman Timothy Massad stated that the agency would review the so-called “name give-up” practice in the swaps market that some investors claim has been discovering trading. According to the WSJ, the practice discloses the traders’ identities during trading, when they were intended to remain anonymous.

CBOE launched futures tied to the 10-year US Treasury Note Volatility Index (ticker: VXTYN), Bloomberg reported.

CFTC Chairman Timothy Massad defended the agency from proposals of merging with SEC, stating that the two agencies had different purposes, MarketWatch reported.

Chi-X Australia appointed Peter Warton as Head of Market Operations. Peter was formally from Tibra, where he served as Global Head of IT Operations.

Bloomberg’s swap-trading platform suffered an outage that lasted almost an hour on early Wednesday.

About the Author

Bernardo Mariano brings to ERDesk his experience structuring private deals for the acquisition of mutual exchanges. Prior to joining ERDesk Bernardo worked as a Director for Instinet and later, CEO of Reuters' Bondex. He holds an MS in Economics from University of Illinois and an MIA in Finance from Columbia University. He can be reaced at be reached at