- The offerings enabled the company to lengthen the maturity profile of its debt and to fix about 65% of the total debt at a weighted average interest rate of 5.1%.
- This compares with the company’s average variable borrowing rate of 3.7% on commercial paper for the quarter.
The American Stock Exchange (AMEX) members resoundingly approved the proposed merger with the company.
- The transaction is anticipated to close in Q3 following SEC approval.
- Despite the expected AMEX operating losses for the rest of the year, the management forecasts the transaction to produce $100 million in run-rate savings and to be accretive by the end of 2009.
- Following the close of the AMEX deal, the company plans to implement the previously announced $1 billion stock repurchase program in line with SEC rules and subject to strategic and credit considerations.
On July 31, 2008, the Board approved a resolution to remove the transfer restrictions on about 42 million common shares.
- The shares were issued in connection with the merger of NYSE and Archipelago.
- The resolution is effective upon closing of the AMEX transaction.
- The restriction of the shares, representing about 16% of the 266 million total common shares outstanding as at June 30, 2008, were originally scheduled to lapse on March 7, 2009.
The SEC published the company’s proposal to provide customers with a competitive trading experience and the highest level of market quality that is currently available in the U.S.
- The next generation NYSE will offer a balanced combination of high-tech for fast, automated and anonymous order execution, and high-touch for discovering and improving prices, dampening volatility, adding liquidity and enhancing value to customers.
- The company launched a new pricing package which enables the high frequency traders to save up to 30% of trading fees.
- The management announced the Universal Trading Platform for introduction later in the year.
- The platform is for European cash equities trading and will be one of the newest and most advanced trading platforms in the industry.
- In Q3, the company will launch “SmartPool” in conjunction with BNP Paribus and HSBC.
- The New York Block Exchange JV is forecast to be launched in Q4.
- This is a JV between the company and BIDS Trading.
- The State of Qatar and the company entered a strategic partnership to build a new, internationally integrated cash and derivatives exchange in Doha.
- The partnership provides the company with a valuable presence in the Middle East.
- As part of the transaction, the company will acquire 25% worth of shares in the Doha Securities Market (DSM) for $250 million and will provide the technology platform and management services for both the DSM’s equities and derivatives markets on agreed upon commercial terms.
In August 2008, the company anticipates to close the acquisition of the balance 50% stake in Atos Euronext Market Solutions (AEMS), owned by Atos Origin.
- The purchase will effectively complete the in-sourcing of the company’s European technology operations.
- The acquisition will also enable the integration of AEMS into NYSE Euronext Advanced Trading Solutions.
- NYSE Euronext Advanced Trading Solutions announced agreements to build and implement exchange technology for Bursa Malaysia, Tokyo Stock Exchange and the Philippine Stock Exchange.
The company hired Thomas Callahan to head the U.S. futures business, NYSE Liffe.
- This followed the purchase of CME Group’s precious metals business.
- The CFTC s expected to approve NYSE Liffe as a Designated Contract Market (DCM) in the third quarter.
- The SEC approved the NYSE plan for a new data product, NYSE Realtime Reference Prices.
- This allows media and Internet organizations to buy real-time, last-sale market data and provide it broadly and free of charge to the public.
- CNBC, Google Finance and nyse.com are now displaying NYSE Realtime stock prices on their respective websites.
- Liffe announced plans to launch Credit Default Swap (CDS) contracts on BClear in Q4 of 2008.
- This will allow OTC transactions to be negotiated and booked into a secure exchange and clearing house environment, thereby reducing counter-party risk.
NYSE Euronext Market Summary:
Global Cash Equities:
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