What will the world be like in 2012?
Prospects for the proposed merger of Deutsche Boerse and NYSE Euronext continue to dim as regulatory negotiations continue. Some NYSE Euronext shareholders are losing interest or becoming increasingly pessimistic that the deal won't be approved. "The smoke signals are reasonably obvious at this point that this deal will not happen," said Brian Barish, president and chief investment officer of Cambiar Investors, the 10th-biggest shareholder of NYSE Euronext.
The London Stock Exchange is considering expanding its trade-data service to include over-the-counter derivatives. "We are in very early discussions with UK regulators about the possibility of using the UnaVista TRS as a registered trade repository for OTC derivatives," said Mark Husler, head of business development in the exchange's data division. Reuters (15 Dec.)
NYSE Euronext has proposed allowing its members to quote in sub-pennies. Some industry insiders want NYSE to slow the plan. SIFMA told the Securities and Exchange Commission that it raised "significant market structure implications that require additional time to be considered."
Lehman Brothers Holdings won support from the Securities and Exchange Commission in its asset dispute with Barclays. The agency said Lehman doesn't have enough money to repay customers, and that Barclays has a conditional claim on money held in reserve. "The commission wishes to ensure that assets held in the special reserve bank account for the exclusive benefit of customers, as well as other assets required to be held for the benefit of customers, are properly administered in the event a broker-dealer is liquidated," the SEC said.
Global regulators are implementing rules to battle the concept that some financial institutions have become too big to fail, but those rules appear poised to backfire, CNBC.com Senior Editor John Carney writes. From "what I'm hearing from people at smaller Wall Street firms, [systemically important financial institution] is already becoming a code word for 'ultra-safe counterparty' against whom minimal collateral requirements may be charged", Carney writes. CNBC/NetNet blog (21 Dec.)
SIFMA today will release a white paper that calls for more discussion about high-frequency trading and how it affects the broader market structure and other investing. The paper also notes that high-frequency trading has yet to be accurately defined. "It's a characterization that's undefined," said Randy Snook, executive vice president at SIFMA. "We think there are a range of computer-based trading strategies and our objective with this paper is to focus on behaviors that are disruptive, and not necessarily focus on the speed of trading." SIFMA SmartBrief readers can get their first look at SIFMA's statement and white paper.
Lehman Brothers Holdings Inc. has paid almost half a billion dollars in fees to restructuring firm Alvarez & Marsal LLC during its bankruptcy, according to a court filing.
JPMorgan Chase collected 8.1% of the $68 billion in total revenue of investment banks around the world this year, according to Dealogic. Bank of America Merrill Lynch's share was 7.4% and Goldman Sachs Group had 5.8%. Meanwhile, Freeman & Co., a New York-based research firm, said that as of Dec. 19, the global, year-to-date investment banking fee pool was $78.6 billion. Bloomberg (12/20)
The mysterious millionaires factory
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