APRIL 10 2017

Welcome to Issue 972 of Exchange Invest which doesn’t seem to have a Porsche type number (or at least not one they are admitting to). So instead for your daily taste of Porsche design, here’s the condo block in Miami, Florida where presumably parking your Ferrari in the flat is frowned upon.

In Today’s Exchange Invest

New CEO for NZX confirmed, executive pay interesting on both sides of the Atlantic while product developments are considerable.

News that former Deputy Chairman Jim Oliff has suddenly resigned from the CME board will come as a surprise to many, particularly given the key role he played (often behind the scenes) bringing CME from a fractious legacy bourse to being a responsible, successful parish leading corporation. More discussion below.

In BigWorld

Generally viewed, with good reason, as somewhat of a haven for incompetence in banking, Barclays has taken another lurch into the “you couldn’t make it up” parallel universe with news CEO Jes Staley tried to track down an anonymous whistleblower in his organisation. With the board admonishing him while the FCA has belatedly ridden into action, it’s fair to say the chastened Mr Staley is no “Whitey” Bulger when it comes to dealing with informants.

Public Markets

China Clearing Houses Partners With Canada’s TMX In Bond Market Push

Terry Duffy Co-Hosts Fox Business With Maria Bartiromo
CME Group

PLY: Includes comment on market data, dating back to this article:

Data Clash Heats Up Between Banks and New York Stock Exchange
Wall Street Journal

PLY: Seems like more of the usual, banks “own” data because they pass through the orders to the exchanges whereas exchanges “don’t own” data because the sell side believes nobody has a right to charge for anything except them. The problem is of course that when exchange data charges do become egregious, nobody will be listening to the banks who will have been perceived as “crying wolf.”

Bank of England’s Carney Calls For UK-EU Deal On Bank Rules After Brexit

Bank of England Governor Mark Carney called on Friday for Britain and the European Union to reach a sweeping deal to recognize each other’s’ bank rules after Brexit, or risk a potentially damaging hit to financial services across Europe.

PLY: Reporting on this speech: Bank of England: The High Road To A Responsible, Open Financial System – Speech By Mark Carney. Of course the worry here is that nobody has cried wolf more than Mr Carney as he burned his credibility over the Brexit referendum.

CME’s Duffy Sees Pay Jump To Nearly $10 Million
Crain’s Chicago Business

PLY: Chicago media compares Terry Duffy’s pay packet with that of CBOE’s Ed Tilly which jumped from $4.8 million to $6 million last year.

Broking Giant TP ICAP Rethinks Bosses’ Pay After Investor Backlash

PLY: TP ICAP heads towards a resolution of the recent pay standoff.

NYSE Execs Talk Austin, National IPO Activity

During their Austin visit, NYSE President Tom Farley and John Tuttle chatted with local media…

London Stock Exchange Group Plc Transaction In Own Shares

DSE – Notice Of The 2nd Annual General Meeting
Dar es Salaam Stock Exchange

Private Markets

NSE IPO A Good Idea
The Nation Newspaper

PLY: Interview with Emeka Madubuike, the immediate past Chairman of the Association of Stockbroking Houses in Nigeria, supporting NSE IPO.

Bourses Want Three-Year Tax Holiday
Dhaka Tribune

…On monies received by listing corporations and capital gains by investors.

Colombo Stock Exchange Designated As Qualified Foreign Exchange By OTC Markets Group
GlobeNewswire (press release)

PLY: This piqued my interest Saturday morning…Then this piqued my interest even more Sunday morning:

CSE Disowns OTC Group Plan
The Sunday Times Sri Lanka

The Colombo Stock Exchange (CSE) disowned connections to the OTC Markets Group Inc on Friday saying the exchange hasn’t collaborated…

PLY: Egad, surely there could not be a hint of misleading hype around the pink sheets?

CSE New Rules On Errant Firms Of Public Float In June
The Sunday Times Sri Lanka

PLY: Rules on float size as the brokers request the government raise brokerage rates. Fair to say the Sri Lankan free market may still be viewed as developing.

FIS, Loaded With Sungard Debt, May Start Buying Again This Year
PE Hub (subscription) (blog)

Nadex Bans Husband And Wife Over Money Pass Scheme
Finance Magnates

SECP Invites Comments On Draft ‘Futures Exchanges Regulations’
Pakistan Observer

Special Section: FTI, NSEL, India at the Crossroads

No news today.


Blockchain Low Among Corporate Investment Priorities, PWC Finds

While half of all financial technology companies intend to focus on blockchain in the next 12 months, only 19% of large banks made the same claim.

PLY: Read this and weep if you are amongst the optimistic (naive) ‘cooperation’ kiddies of fintech.


FTSE Russell Launches £SONET

ICE Clear Credit Expands Clearing For Global Financial Corporate Single Name CDS

Traders Asked For This Futures Contract, But Aren’t Using It

…On global cotton and its growing pains.

DGCX May Launch Gold Contract For Retail Investors

DGCX Opens-Up Access To The Chinese Bullion Market With The Historic Launch Of Shanghai Gold …

Dalian Commodity Exchange: Soybean Meal Options Saw Steady Trading On First Day Of Launch

NSE Cuts Fee On Options, Currency Derivatives

Companies On Dissemination Board Can Seek Listing, Says Sebi
Daily News & Analysis

ACER Calls For Further Improvements In Union-Wide And National Electricity Network Development Plans

Multi Commodity Exchange Commences Futures Trading In Rbd Palmolein
Financial Express

Career Paths

Brief- CME Group On April 6, James Oliff Notified Company That He Would Resign From The Board Immediately
SEC Filing

PLY: After some 31 years’ membership, former CME Deputy Chairman and long-time board member Jim Oliff has abruptly left an institution where his late father Hershel was also a long standing member. Amongst other achievements, as Chairman of the Strategic planning Committee, Leo Melamed acknowledged that “Oliff did an outstanding job as Chairman.”

Perhaps I missed the CME press release praising Jim’s remarkable legacy but in its absence I will tell the story myself – as it needs to be outlined for the parish record. Jim has been a dynamic figure (largely behind the scenes), playing a key role in the rejuvenation and rebirth of the CME. After all, this was an exchange riven with factional infighting threatening the institution itself when Scott Gordon was elected chairman and the CME began the path from an uncertain future in 1999 to becoming the powerhouse business it is today. Jim Oliff played a key role (often behind the scenes) in the vast change of the CME from the legacy club to becoming a serious regulated business with customers and shareholders across the globe. The strategic steering committee he chaired led to the electronification and public share offering of what is now the world’s largest exchange group by market capitalisation (only ICE and HKEX come close by comparison). He was a pivotal figure developing GFX from the Globex era to the current electronic times as well as pioneering the ethics programme which became mandatory for employees and members.

From a personal standpoint, I will never forget the great efforts Jim masterminded to develop the knowledge base for electronic trading. I was honoured to spend time in Chicago at CME working on electronic trading education with members and the company – all at his behest. Thus CME was the only exchange ever to mount any coherent endeavour to develop electronic trading knowledge. Jim Oliff saw it as essential both for business and as a moral imperative for the exchange old and new (perhaps a link to his Father’s chairing of the Gratuity Fund some years earlier). The business rationale was simple: to take CME forward in a new era that ensured as many open outcry traders as possible had access to understanding, and thus making, a successful transition “from floor to screen.”

Jim sat on various other bodies too: amongst them the Clearing House Risk Committees (chairing 2 of the 3, co-chairing the other). Moreover Jim has been closely involved with European initiatives, as a board member from inception at the CME London Exchange and Clearing House (while he had sat on the main board of CME in Chicago since 1994).

Beyond the pure trading community and looking to the future, for the past 3 years Jim tirelessly chaired the CME Group Foundation Chairman, focusing on early math education, coding and helping first generation students get through college to a degree. The foundation made great progress thanks to teaming Jim with the highly productive Kassie Davis (“the best director in the foundation world” Jim has been often said). Jim pioneered the link and subsequent $1 million grant to the The Cambridge Center for Alternative Investment amongst many other endeavours, such as the CME Group Financial Innovation Library at the University of Ulster in my native Belfast.

In essence an incredible career alongside Jim’s own incredible career in trading, without which we would all be poorer parishioners.

Jim Oliff marked the bridge which brought the CME from a fractious past where it looked in danger of being swamped by the Capital Market Revolution through an often difficult present these past 2 decades to a point where…well, it’s difficult to see how CME is best prepared for the next generation when one of its leading actors in making the future a reality has so abruptly left. CME and the parish owe Jim a debt of gratitude for his diligence and creative thought.

Every parishioner knows the CME board is too big but in this case it has lost absolutely the wrong man at the wrong time.

I am proud that he asked me to play a tiny role helping along some of his many achievements in the CME Group. Thank you Jim and congratulations on an amazing 31 year track record. I wish you every success in your future endeavours.

NZX’s Acting CEO Mark Peterson Gets Top Job
New Zealand Herald

NZX acting chief executive Mark Peterson will take over the reins full-time effective immediately and has been tasked with growing the business to …

Vikram Limaye Still Awaits Sebi Nod To Join NSE 2 Months On
Business Standard

PLY: Two months on and the new NSE CEO has not been given the nod by SEBI’s bureaucrats.

A Very Critical Appointment
It’s Official: PSE’s Changing Of The Guards

PLY: Official confirmation of the changing of the guard at PSE, Hans Sicat moving to a transition/integration role with Ramon Monzon incoming as CEO.

Hala Sakr Appointed As Member Of EGX Board Of Directors
Daily News Egypt

New SIAS Chair Aims To Grow Investor Activism, Education

Drew Niv Relinquishes Another Director Role, Leaves FXCM UK Merger Limited
FinanceFeeds (blog)

His status at FXCM UK Merger, however, has just changed, as indicated by a regulatory submission with UK authorities dated April 7, 2017.

Renaud Laplanche, Ousted At Lending Club , Returns As Rival To His Old Firm
New York Times

Renaud Laplanche, the former chief executive at Lending Club , was ousted from his job there last year. He was set to start a new online lender, …

PLY: Global Investor reports: Former Clearstream VP James Cherry has taken up the role of business development manager at Pirum.

Stephen Luparello, who stepped down in January as head of the SEC’s Trading and Markets division, will join Citadel Securities as general counsel in May.


Fintech Tracker: Lendbox Joins The P2P Lending Club

Other Stories

NCLT Stays Demolition Of Erstwhile Hyderabad Stock Exchange Property
Business Standard
It’s a short week but it has begun with a bang. Many thanks for reading Exchange Invest as always.


Patrick L Young
Executive Director DV Advisors

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