The London Metal Exchange, founded 134 years ago above a hat shop in the financial district, may be the latest major mutual exchange to be bought after record trading volumes attracted the interest of multiple bidders.
Revenue growth for swaps clearinghouse owners will take more time to materialize than previously thought, though longer-term it could match the increased sales of up to 27 times seen in energy clearing, according to Keefe Bruyette & Woods.
Bonds of MF Global Holdings Ltd. declined to as low as 35 cents on the dollar after the futures broker run by Jon Corzine drew on its credit lines and Moody’s Investors Service and Fitch Ratings cut the firm’s ratings to junk.
CME Group Inc. increased margin levels by 12 percent for the interest-rate swaps that its clearinghouse guarantees, citing the risk that negotiations over avoiding a U.S. government default will spur volatility.
A record share of U.S. corporate- bond trading has moved to computers as buyers who traditionally transacted over the phone seek faster ways to buy and sell in a market where Wall Street’s human traders are retreating.
Knight Capital Group Inc., awaiting acquisition proposals as early as this week, may command as much as $1.4 billion based on the value of its biggest businesses, according to Keefe Bruyette & Woods Inc.