April 01 2016

elb2Cameron-Orc is go, British blob makes a mess of P2P lending regulation as the global blob looks to support the banking status quo at all costs as fintech rises… NASDAQ preparing an ocean of dark pools while its wayward derivatives venture is obsessing that arachnophilia will rescue it from inevitable closure.

Meanwhile the inestimable Paul Constantinou delivers another client to Trayport in the form of the Bulgarian energy exchange, IBEX.

There are under three weeks to go to the ICDA Blockchain extravaganza April 19-20 in London. To qualify for a GBP 320 discount ticket (normal price GBP 695) use the code “YOUNG320” to claim your discount. Here is a link to More Info. I look forward to seeing you there!

Public Markets

BGC Partners Updates Its Outlook for Q1 2016

BGC Partners

Expectation mid-point of the range:

Original Q1 2016 Outlook Compared with Q1 2015 Results

BGC anticipated Q1 2016 distributable earnings revenues to increase by approx 13%-21% ($635m to $680m), compared with $563.9m a year earlier. Pre-tax distributable earnings to increase by between app 6% & 26% (range $80m – $95m), vs $75.2m.

 

Nasdaq Readies ‘Ocean’ Dark Pool For Banks & Brokerages

John McCrank – Reuters

Nasdaq is in negotiations with several brokers to host and run their dark pools within its data center.

Nasdaq has created a hosted dark pool, referred to inside the company as “Ocean,” that uses Nasdaq’s technology, operations, and compliance monitoring, Tom Wittman.

PLY: Let’s see now, making waves, lapping at the edge of the alt pools, apparently over 25% of brokers joining to make it Ocean’s 11 or Ocean’s 12…

Hopefully that is most of the poor maritime puns out of the way… Good idea if they can make it work.

 

MiFID II Spawns Waiver Innovation

Shanny Basar – Markets Media

Banks are expected to release products from the middle of next year around the MiFID II volume caps.

PLY: Usual blob process: moronic ill-considered rule hastily introduced to show markets who is boss and thus folks waste time to deliver the same service as before the dumb rules were added.

 

ICE Market Data Fee Regime Kicks In On Friday (subscription)

Alice Attwood – FOW

ICE said in November that it would start charging for re-distributing data.

 

Nasdaq NLX Holds Fees Ahead Of LCH Spider (subscription)

Luke Jeffs – FOW

Nasdaq NLX said its trading fees will remain unchanged for the sixth consecutive quarter.

PLY: Venue with no volume clings to intensive care bed with no coherent signs of recovery, apparently waiting for the next miraculous cure to actually propel growth. As the patients fevered brow sweats, apparently they believe a giant spider will rescue them. Given that NLX couldn’t truthfully deliver end user volume for free with massive subsidies…Oh fair enough, you all get the gist, it’s just NASDAQ’s management who appear unable to pull the trigger on what remains a festering sore of indecision in their portfolio.

In other news, apparently yesterday NASDAQ paid all their creditors including those who only invoiced last week – an incredible turnaround for that famously recalcitrant payer…

 

KCG Unveils New Trading Algo In Europe (subscription)

Tim Cave – Financial News

KCG has launched its first trading algorithm for clients in Europe, as the group continues its attempts to move beyond its roots in market-making and retail broking and build a meaningful institutional trading business.

PLY: I made a comment above about NASDAQ which was clearly an April Fool – I apologise it was rather lame but admit it: for at least the time it takes to traverse the IEX chicane, I had you wondering…

Private Markets

The NEO Exchange Starts Trading Its First Listed Security

BUSINESS WIRE

Aequitas NEO Exchange launched its first listing, Invesco Canada’s PowerShares DWA Global Momentum Index ETF. This is also the first time an ETF has listed on a Canadian stock exchange other than the TSX.

Dividend News

Nasdaq declared a regular quarterly dividend of $0.32, a 28% increase from the prior $0.25, payable on June 24, 2016, record date June 10, 2016.

PLY: Good dividend increase.

Special Section: FTI, NSEL, India at the Crossroads

PLY: Flat to small up for MCX and FTIL. NSEL resolution atrophying again although to be fair on the macro, I do think the Modi government are doing good work to deliver reforms.

Technology

IBEX To Use Trayport’s Trading System

IBEX

Independent Bulgarian Energy Exchange (IBEX) announced that Trayport’s GlobalVision Trading System has been selected as an electronic trading platform for the organization of a centralized market for bilateral contracts in the Bulgarian power market.

PLY: Another win for Trayport whose inestimable Paul Constantinou retains that ability to clinch sales across all manner of fascinating places far from the London HQ.

 

Global Regulators Move Closer To Regulating Fintech

Huw Jones – Reuters

Global regulators have moved closer to regulating the fledgling fintech sector, which includes blockchain technology that supports bitcoin, to ensure the industry’s rapid growth does not pose any risks to the financial system.

The Financial Stability Board (FSB), which met in Tokyo on Thursday, has agreed on a framework for categorizing different components of fintech and assessing their potential risks.

PLY: The clear hint, like the whistling of that anvil failing to defeat gravity above Wile E Coyote’s head, is that the FSB and the blob will do everything to rescue the status quo for the banks. Elsewhere, in all mainstream media, people wonder why demented populists with leftist economics are doing so well in the US Presidential campaign?

 

New FinTech Office: A One-Stop Platform To Promote Singapore As A FinTech Hub

MondoVisione

PLY: Interesting move as part of the Singapore Smart Nation initiative which enables this “Smart Financial Centre” division…

 

Orc Group & CameronTec Group Combination Finalized – Legal Structures Combined & Financing Integrated

MondoVisione

Products

China Central Bank Discloses Derivatives Holdings Positions For First Time

Reuters

The People’s Bank of China (PBOC) reported data on its derivatives holdings positions in forwards & futures in foreign currencies versus the yuan for the first time on Thursday.

Career Paths

Appointments To HK’s SFC Committees

MondoVisione

The European Stability Mechanism (ESM) welcomes Günter Borgel to its Board of Auditors. Mr Borgel is a member of the Management Board of the Federal Agency for Financial Market Stabilisation in Germany. He was appointed by the ESM Board of Governors for a non-renewable three-year term, starting on 1 April 2016.

The FinTech Office set up by The Monetary Authority of Singapore (MAS) & the National Research Foundation (NRF) will be co-led by Mr Sopnendu Mohanty, Chief FinTech Officer, MAS, and Mr Steve Leonard, CEO, SG-Innovate, with representatives from The Economic Development Board, Infocomm Investments Pte Ltd, Info-communications Media Development Authority, National Research Foundation and SPRING Singapore.

Financial Calendar

New! – 27.04 – BGC Partners Q1 2016 Results

New! – 12.05 – Euronext AGM – press release

All forthcoming exchange / investment related events are now listed in our Events page.

Share Notes

CME insider Kimberly S. Taylor sold 2,300 shares Wednesday, March 30th at $95.62 (bargain $219,926.00). She now owns 112,989 shares.

Crowdfunding

UK’s FCA: Statement On P2P Applications For Full Authorisation

MondoVisione

FCA Warns Of Bottleneck In P2P Platform Approvals

Reuters

A flurry of companies are queuing for authorisation to open P2P lending platforms to take advantage of a new savings product to invest in tech start-ups, FCA said on Thursday.

The bottleneck in processing applications means choice of platforms may be limited for lenders until the FCA can review all the applicants.

PLY: Typical British blob incompetence  – the ineptly manipulative finance minister changes the rules on savings products with another tinkering tax break…but says only fully regulated platforms can deliver the “right” kinds of P2P loans. Meanwhile the FCA hasn’t regulated those in transition from a different regulator yet. Thus national champions have been inadvertently nominated in an inadvertent regulatory apartheid pincer movement.  Typical Cameroonian dysfunction – who needs a looney left Corbyn government, Britain already has its bizarre tory-socialist nanny state? I know, I know, old grumpy stuff – but I am so old I can remember the last time Britain had an outbreak of government.

Other stories

Canadian Securities Regulators Seek Comment On Proposed Proxy Voting Protocols

MondoVisione

 

2015 Enforcement Report – Report Highlights IIROC’s Focus On Strengthening Enforcement Tools & Deterring Wrongdoers

MondoVisione

 

Keynote Address At The SEC-Rock Center For Corporate Governance- “Protecting Investors In An Innovative Financial Marketplace”, SEC Chairman Mary Jo White, March 31, 2016

MondoVisione

PLY: As always the SEC knee jerks to the nanny state – thus was the spirit of innovation throttled and we allow the old pre-industrial models, e.g. banks, to survive.

 

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