APRIL 12 2017

I thoroughly enjoyed the opportunity to address the EU 27 Financial Services Attaches yesterday with my views on FinTech and how it can integrate and threaten the political / economic status quo delivering opportunities for all in the digital world. Fascinating feedback afterwards with feedback afterwards suggesting I take a variation of the presentation to Brussels – very flattering.

The Malta Presidency of the EU is in full swing and I appreciate the remarkable diligence of all those involved in the organisation of the event, led by Audrey-Anne Callus-Randich and her diligent team within the Finance Ministry. The conference rounded out with some excellent remarks by Professor Joe Bannister, Chairman of MFSA who remains a towering figure amongst the regulators of the EU and especially amongst smaller financial centres the world over. Thanks to all parties concerned for their kind invitation and plaudits to Malta for making their Presidency so successful already and it is barely half-way through.

In Today’s Exchange Invest

It’s a near clean sweep of big stories from Asia today, as HKEX announces a massive upgrade/continuation of their NASDAQ systems, the HK SFC endorses infrastructure listings tied into the “Belt and Road” initiative and HKEX CEO confirms gold contracts for June/July around the 20th anniversary of the Hong Kong handover to China. Slightly further south the Chi-X board has ousted CEO John Fildes as PE JC Flowers owners continue their clean sweep of management. Finally, there are worries about Palm oil, and, as we race to pixel (delayed – sorry, Google is having a bad day in the SaaS department), news filters through from Tajikistan with the welcome news that GMEX’s latest client the Central Asian Stock Exchange and Central Depositary has gone live.

In BigWorld

South Korea are eager to deny rumours that they could initiate a preemptive strike against North Korea but US officials have not commented on rumours a battalion of United airlines ground crew have been discretely parachuted in to Seoul, just south of the Demilitarised zone.

Fly the friendly skies – to Pyongyang and beyond.

Public Markets

A Nuanced View Of The Markets
NewCo Shift

PLY: Interview with Adena Friedman.

Remarks By President Trump In Strategic And Policy CEO Discussion – We’re Going To Eliminate Wasteful Regulations – Take A Look At Dodd-Frank
MondoVisione

ICE Data Services Launches Innovative Reference Data Solution for Exchange Traded Derivatives
ICE

Shenzhen Stock Exchange’s Unit, Euronext & Sina Sign MOU
Reuters

PLY: “MOU to jointly develop internet big data, cross-border index products” – sounds very interesting all round.

London Stock Exchange Group Plc Transaction In Own Shares
MondoVisione

PLY: Naturally parishioners on tenterhooks to see if it’s a buy or a sell.

Basking In Zupta ‘Halo Effect’: Can JSE Probe Bring Pravingate Insider Traders To Book?
BizNews

PLY: Nobody suggesting any wrongdoing at JSE but the exchange finds itself in a tricky situation – the government has biodegraded the nation to junk bond status, there are many accusations of corruption and now insider trading on the back of government changes. Could be an interesting template in the future to see how exchanges and regulators have to continue developing their big data surveillance arms in challenging circumstances. I have considerable sympathy for JSE. Like Athens Exchange they are a good business entirely let down by the political side of the economic ledger.

ESMA To Stop Brexit ‘Race To Bottom’ By Financial Centres
Reuters

PLY: No sooner did this story appear on “sweeteners” than the above response emerged too. Net result? EU will soon be under member pressure to deregulate in line with the Trump led global zeitgeist.

ESMA’s 4 proclamations will be interesting to read on regulation.

ECB: Brexit Banks Need To apply For Licences ASAP
Reuters

PLY: Sound warning, noting the ECB is pragmatically open to business and avoiding taking the blame for late registration and asking for at least 6 months to regulate…Albeit the key undertone here some will see a land grab where EU is trying to take control of UK banks by getting them regulated within the EU where they may yet be able to achieve a mutual recognition system… “The European Central Bank reiterated on Tuesday it would not allow banks from Britain to have a euro zone licence if they wanted an unlimited ability to outsource operations back to London” implies an unbending approach to trying to force business out of London – a policy which has simply never worked.

In essence, that old Facebook status message “it’s complicated” applies.

Private Markets

Central Asian Stock Exchange and Central Depository Goes Live With First Bond Listings
GMEX

PLY: Plaudits to GMEX on the go live of their latest client, in Tajikistan.

NSE Ex-Staffer Reveals How Some Brokers Got ‘Preferential Access’ To Servers
Economic Times

PLY: Potentially explosive ramifications if these accusations hold water.

AHCX Calls for Warehouse System Receipt Law
Zodiak Malawi Online

BOX Regulation: Consolidated Audit Trail Clock Synchronization Study
MondoVisione

Ethiopia to Loosen ECX Restrictions, Says Green Trader Trabocca
Daily Coffee News

Ethiopian coffee authorities may be opening up the Ethiopian Commodity Exchange (ECX), allowing coffees to be traded outside the platform.

PLY: A bilateral move which suits multinationals. I am not convinced such OTC trading is in the better interests of the market where it relates to volume, as opposed to say, specific niche farms.

Overbooking and Cross-Selling
Bloomberg

PLY: A long scroll through some frankly hilarious coverage of paramilitary airline United and indeed customer choice but carry on to the bit about: “Here’s a white paper from Allison Bishop at IEX Group LLC about the “crumbling quote signal” that it uses to protect discretionary pegged orders…”

Special Section: FTI, NSEL, India at the Crossroads

Govt Planning Tougher Norms For Commodities Spot Market
Livemint

PLY: More coverage on the apparent looming crackdown, viewed through the lens of NSEL in many respects.

Technology

Nasdaq Scores HKEX Market Tech Deal
Finextra
Nasdaq Signs New Market Technology Deal With Hong Kong Exchanges And Clearing Limited – HKEX To Upgrade Derivatives Market Platform To Nasdaq Financial Framework Architecture For Trading, Clearing And Real-Time Risk Management
MondoVisione

PLY: A massive win in many respects for NASDAQ even if it is a broad continuation agreement with an improved framework all round.

CME Group, UK’s Royal Mint test blockchain-based gold trading platform
Reuters

PLY: Interesting development as the system is a major breakthrough sale for vendor Alphapoint.

Products

Hong Kong, London Gold Contracts To Launch By June-July – HKEX Chief
Reuters

Statement On The HK SFC Approach To Certain Project Companies Seeking A Listing In Hong Kong
HKEX Welcomes SFC Statement On Listing Of Infrastructure Project Companies
MondoVisione

PLY: Belt and Road listings get outline approval to move forward.

Nasdaq Dubai Expands Equity Futures Market With Three More Leading Companies
MondoVisione

Solactive And Equileap Team Up To Launch A Family Of Gender Equality Indices With Europe, US And Global Focus – Offering Exposure To Companies With Embedded Gender Equality Practices
MondoVisione

TOCOM To Discontinue Offering Implied Function Of The System On April 24
MondoVisione

EEX To Launch Power Futures For Germany – Product Offers Long-Term Solution For A Potential …
MondoVisione

COMMENTARY: EU moves to wipe out palm oil from the European economy
Jakarta Post

Career Paths

PLY: The big news on the job front is that Chi-X Australia chief John Fildes has resigned from the company with immediate effect. According to the AFR: “”The board thanks John for his contribution to Chi-X Australia and wishes him well in his future career,” the memo sighted by Street Talk said.” Apparently Peter Fowler, current CXA (Chi-X Australia) board director and former CXA CEO, has agreed to act in the CEO role on an interim basis with immediate effect. “Joe Meyer, Group CFO and COO (of Chi-X Asia Pacific Holdings), will also be devoting more time to the CXA business in this interim period” the AFR reports from the Chi-X memo.

I wish John all the best in his future career, as “new” owners JC Flowers seem intent on a different direction for the business to that which was originally envisaged in the Chi-X Australia plan as envisaged by Tony MacKay and executed by John. Given the totally protectionist attitude of the ASX, to have built a platform from zero to 20% market share in the domestic market stands as a huge testament to the ability of John Fildes and his team at Chi-X Australia.

Christopher Woida, previously an investment strategist and a founding member of the Factor-Based Strategies Group at BlackRock, has joined Axioma as Managing Director, Index Solutions, responsible for strategy, development and sales in Axioma’s rapidly growing indexing initiative.

Non-Compete Agreements May Get Tougher to Enforce
Institutional Investor

That’s pending the outcome of a continuing high court battle between two of the world’s largest interdealer brokers, ICAP and BGC Partners.

Crowdfunding

Fintech Talk: The Potential Rise Of MSMEs & Creative Industry Via P2P Lending
Jakarta Post

Real Estate Crowdfunding Is Riskier Than You Think
Seeking Alpha

Other Stories

ASIC Consults On Establishing A Financial Services Panel
MondoVisione

Has The Law Of Manipulation Lost Its Moorings
Mondaq News Alerts (registration)

Plato Partnership Announces Baillie Gifford As A Member
MondoVisione

PLY: A new founding member…er how many years has the politburo been running now?

Despite Passover and impending Easter, a rather epic day…

Patrick

Patrick L Young
Executive Director DV Advisors

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