May 31, 2010 Issue Abstract

European Market Monitor: NYSE Euronext’s Plans to Verticalize Its Trading & Clearing Business Cast Pall on Hopes of Lowering Post-Trade Costs. Plans to create a trading silo are seen as the emergence of another quasi monopoly that may stall pan-European trading competition.

Industry Alert: What Drives NYSE Euronext’s Clearing House Strategy? NYSE Euronext’s Phil Bruce, Senior Vice President, Corporate Strategy, shares insights on “competitive tensions” that are behind the company’s latest moves.

Regulatory Update: Merkel’s Move Riles Academics in European Rules Debate. EDHEC Risk Institute, a center for financial research and its applications, says German Chancellor Angela Merkel’s “unilateral measures” to prohibit short sales of bonds and CDS instruments hold costly ramifications for investors and sovereign nations.

Editor’s Comment: Strategic Games. Don’t be surprised if LCH.Clearnet ends up under exchange ownership.

Spotlight: Chi-X Europe Positions as Low-Cost, Pan-European Exchange With Multi-Asset-Class Trading Ambitions. Alasdair Haynes, Chief Executive of Chi-X Europe, says elimination of ‘frictional costs’ of trading can make the whole pie bigger for Europe’s exchanges and MTFs.

Technology Trends: SWIFT Offers InnoTribe as Brave, New High-Tech Face. SWIFT is taking on the challenge of capturing the imagination of its predominantly banking community to leverage new technologies.

Regulatory Compliance: White Paper Outlines Money Market Fund Reform Compliance Burden. Global technology solutions vendor Confluence says complying with the Securities and Exchange Commission’s recent rule changes will cost over $42,000 per money market fund for the first year.

Clearance & Settlement: Clearstream Plans LuxCSD. The new, central securities depository will settle transactions in central-bank cash.

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