LCH.Clearnet and Eurex have begun offering clearing for inflation swaps. Although there is no requirement yet to clear these products, industry experts see several reasons buy-side institutions, such as pension funds, might use this service.
India's National Stock Exchange shouldn't expect to take business back from the Singapore Exchange because of a reduction in India's Securities Transaction Tax, Samie Modak and Sachin Mampatta write. Brokers say SGX has other advantages that will retain investors. "A few basis points reduction in STT might not help in bringing the volumes back or even preventing further export of futures volumes," says Yogesh Radke of Edelweiss Financial Securities.
Singapore Exchange has joined discussions started by London Stock Exchange Group to purchase a stake in LCH.Clearnet Group, sources say. SGX declined to comment on the subject. "As the Asian Gateway, SGX is open to partnerships and alliances for the benefit of shareholders, the company and our customers," spokeswoman Carolyn Lim wrote in an e-mail. "However, we do not comment on media reports or speculation."
Australian Treasurer Wayne Swan has authority to block mergers and other deals involving foreign owners, so he was surprised to learned that Singapore Exchange and ASX had been discussing a tie-up. Companies tend to approach the treasurer's office, but Swan heard about the proposed deal after it hit the news wires. While SGX and ASX officials expressed confidence about the proposal, many industry insiders and officials said they faced significant challenges from the beginning, according to this Reuters analysis.