FEBRUARY 22 2017

And welcome to issue 938 of Exchange Invest Daily which corresponds to the Porsche 938, the type number given to the right hand drive version of the delectable 924 GT of which only 75 were made for British and Maltese roads (amongst other jurisdictions).

In Today’s Exchange Invest

More remedies required than merely a slapdash sale of Clearnet (to its largest customer) for DB1-LSE apparently as British government lives down to its reputation for not understanding finance. FXCM plan to retain discredited CEO as interim boss / advisor following FXCM defenestration in a move which surely must bring out a red card from a listing authority?

Meanwhile NASDAQ has signed a new technology agreement with Borse Dubai.

And there’s more, happy scrolling:

In BigWorld

Over in Bigworld, Austrian costume shops report a shortage of Donald Trump wigs ahead of carnival festivities.

Public Markets

DB1 & LSE Set To Offer More Concessions To Secure Merger
Financial Times
UK Minister Plays Down German Claim To Stock Exchange “Crown Jewels”
Reuters
Germany emerges as main concern for Merger of Equal Desperation As UK Gov Appears Apathetic
CityAM

PLY: Good scoop by the Bugle using their Brussels house newspaper insider links. So far it seems the EU antitrust officials do appreciate this egregious monopoly plan – but to what extent? Will another slicing of the cake be enough to persuade them? I sincerely hope not. The UK government (a broadly socialist construct under Mrs May) and the British Labour opposition (a broadly Marxist construct under Comrade Corbyn) both dodged the merger of equal destruction in the UK Parliament yesterday. The Hansard transcript makes for pretty revealing evidence of the pure ignorance of free markets amongst British members of parliament.

US Said To Rekindle Iran Sanctions Probe Of Deutsche Boerse Unit
Bloomberg

The Justice Department is continuing to examine whether Clearstream Banking SA and its parent company, Deutsche Boerse AG, provided a conduit …

PLY: While I have to admit my trust in DB1 management is at an all time low (and declining by the day), the situation here alas suggests that the foreigner bashing mentality of the Obama regime is still in vogue from New York at least.

The EU Mustn’t Shoot Itself In The Foot – Euro Clearing Thrives In London
City AM

“EU leaders should heed the warnings. It may be necessary to appear tough on the UK – especially during election season – but vandalising Europe’s economic prospects is no way to preserve its political union.”

PLY: Amen…albeit never believe the EU is either rational nor that it will not choose the “lose lose” option, particularly when it comes to business matters. For that reason those of us like me who once supported the blob, have abandoned it to its fate.

Greece Plans Trading Exchange To Help Reform Power Market
Reuters

The country’s market operator (LAGIE) and the Athens Stock Exchange agreed last week to jointly help set up the exchange.

PLY: Good.

FXCM Inc. Changes Publicly Traded Company Name And Ticker Symbol; Fxcm Inc. Renamed Global Brokerage Inc.
Nasdaq

PLY: There is a significant dose of the surreal around this announcement. Following prosecution by the CFTC, and despite being found “engaging in fraudulent activities” the banned managers have stepped down from the board but CEO Drew Niv, having resigned as Chairman and a board member will remain in the interim while a CEO replacement is found and still thereafter he is expected “to serve as an advisor to the newly appointed successor to assure an orderly transition.”

This is utterly GUBU. The CFTC rightly defenestrated an enterprise which was behaving in a patently indefensible manner yet the CEO is still in the building? Somebody in the listing authority surely has to consider this as it damages the parish. Frankly, if they had announced a member of the Corleone family incarcerated within the NY prison system had been added to the board of FXCM, it would have upgraded the sleazy reputation of this discredited enterprise. Meanwhile changing the name to GBL is an amusing aside – we now have a “Global Brokerage” which is banned in the world’s largest economy.

Regulators Urged To Close European Share Trading Loophole
Financial Times

PLY: Surmising the risks to the market from a(nother) faux pas in MIFID II. Rainer Riess, secretary-general of FESE rightly notes:: “Exchanges, politicians and regulators see it as a potential loophole and investors will be the ones that get hurt by it.’’

Private Markets

SET Drives “#Investnow” Campaign, Cultivating Savings And Investing Habits Among Thais
MondoVisione

Robot Traders Jolt Life Into Slow-Speed European Stock Exchange
BloombergQuint
Disappearing Deals And Locked Cars
Bloomberg

PLY: How Aquis has found a niche with HFT which actually goes fast but doesn’t jump the queue…

Borsa Istanbul Plans To Increase Its Gold Storage By Ten-Fold
Gulf Times

Turkey’s Borsa Istanbul plans to open a new precious-metals vault next month.

China’s Zhengzhou Commodity Exchange To Impose Limits On Some Contracts, Clients
Reuters

The Case For The Chicago SX Acquisition – Part 2
Traders Magazine

This Is The World’s Tiniest Stock Exchange
Bloomberg

PLY: The Yangon SE is being pilloried for its perceived failure after a year when surely the scale of transition in the country is going to take significantly longer. New markets in nations ravaged by the evils of Communism are difficult to create.

Special Section: FTI, NSEL, India at the Crossroads

Sebi Issues Fresh Notices To 20 Entities In NSEL Scam
Economic Times

Technology

Nasdaq And Borse Dubai Sign Landmark Market Technology Deal
Nasdaq

PLY: Good addition/extension for NASDAQ.

BT Links Up The Five Biggest Foreign Exchange Markets In The World Via New BT Radianz FX Express
MondoVisione

Vienna Stock Exchange To Offer IT Solution Featuring MiFID II Compliance
MondoVisione

Products

STOXX Expands Fixed Income Offering
MondoVisione

Euronext Launches Europe’s First Index Dedicated To Family Businesses – Euronext® Family Business Index – Launch Of Europe’s First Index Dedicated To Raising Family Business Profiles With Investors
MondoVisione

PLY: Nice idea and worth doing but it also shows everything wrong with European capitalism – lots of dynastic family businesses often where the family retains control through shareholder structures only slightly less dubious than say Snapchat?

If You Want To Trade Bitcoins, First Learn CFTC Rules
Forbes

The Netherlands Seek To Ban Advertising In Binary Options, CFDs
SMN Weekly (blog)

Career Paths

A remarkable pause in job moves, albeit note the FXCM Titanic deckchair shuffling above.

Crowdfunding

SEC to Host Crowdfunding Dialogue February 28
SEC

Innovative Finance ISAs Dogged By Further Delays
Financial Times

PLY: For all the sandbox hype, the FCA continues to be appear remarkably slow / inefficient in actually delivering the brave new world of finance.

Other Stories

World Federation Of Exchanges Responds To FSB Consultation On Continuity Of Access To Critical FMI Services For A Firm In Resolution
MondoVisione

Another sunny day in Malta, wherever in the world you are, enjoy yours and thank you for digesting the day’s market structure news via Exchange Invest.

Best wishes,

Patrick

Patrick L Young
Executive Director DV Advisors