Wildly frantic day today, as I rush to pixel and zoom around London. Lots happening, catch the pith… BATS IPO goes off well. Oslo dumping a CSD systems vendor is pretty seismic while something is happening at FTIL et al.
See many of you tomorrow at ICDA Blockchain, I have a few keynote remarks at the start of the day and a panel at around 1600… (To qualify for a GBP 320 discount ticket (normal price GBP 695) use the code “YOUNG320” to claim your discount here).
Meanwhile, at Fidessa Old Jewry tonight, it’s Dave Setters’ soiree for Motor Neurone Disease – drop by to say hi to Dave and support a great cause.
Leslie Picker – NY Times
BATS’s stock gained 21%, to $23 at the close of trading in NY. The shares are listed on BATS’s own BZX Exchange, the first to do so since the company was founded 11 years ago as an alternative trading site to NYSE & Nasdaq.
QV Premium: Bats IPO Brief.
PLY: They made it – phew! Bet there was a very very rigorous watch for errant algos on day one… Welcome to the public parish, BATS: a great IPO shows how investors value the exchange model.
A British vote to leave the EU could be a threat to any rival bidder from the US for LSE but would not undermine the planned $30 billion merger between DB1 & LSE, DB1 finance chief Gregor Pottmeyer said in “Euro am Sonntag”.
PLY: Plenty of other things however do undermine the merger of equal desperation rather definitively. The fact that Jeff Sprecher now defines the debate while saying nothing is in and of itself the factor undermining the deal – DB1-LSE management are just pawns on Jeff’s board goes the perception.
William Turvill – CITY A.M.
Sources close to the LSE-DB1 deal have dismissed the prospect of the merged company having its headquarters outside of the UK in the event of a Brexit.
QV Premium: DB1-LSE Merger Brief.
PLY: #ScaremongeringDrivel. If DB1-LSE is to be based in Europe’s industrial heartlands and rather parochial financial centre of Frankfurt then the deal is utterly pointless.
Nicole Bullock – Financial Times
PLY: Usual status quo impetus which robs markets of leadership while we live in hope the SEC can ‘grow a pair’ as I believe is the vernacular for the old Shakespearian Lady Macbeth maxim on courage and sticking places…
Dave Michaels – Wall Street Journal
Richard Ketchum, Chairman & CEO of FINRA, said Friday that IEX has probably satisfied most of the SEC’s concerns about how the market would operate, including its use of a “speed bump” intended to slow down the fastest traders.
PLY: We live in hope.
Silla Brush – Bloomberg
Economists at the FCA said there was no proof that speed traders use their technology to jump milliseconds ahead of competitors’ orders, according to a research paper.
PLY: Backed up on reading right now…interesting conclusions but not necessarily contradictory to US outlook either.
Katrina Mennen A. Valdez – Manila Times
Philippine SE is considering its options, which could include opening its own fixed-income exchange, and will decide in H2 of the year what action to take after its application to acquire PDEx was denied by SEC.
QV Premium: PSE – PDEx Merger Brief.
Saudi SE (Tadawul) is in the process of hiring an investment bank to advise on its flotation, planned for 2018.
Leveraged retail forex products broker/platform XTB is planning on raising $56 million in its IPO, which would value XTB at about $400 million.
Pakistan Mercantile Exchange (PMEX) has proposed Federal Board of Revenue (FBR) to impose 5% tax on capital gains instead of the current tax of 0.05% on margins and deposits, reduce tax on import of gold and amend tax laws to enable the exchange to develop an Islamic money market, providing a platform for the Islamic Financial Institutions (IFIs) in budget (2016-17).
Matthew Philips – Bloomberg
In 2011, Baiju Bhatt and Vladimir Tenev, both Stanford physics graduates, were living in New York, building trading systems for the buy side. After Occupy Wall Street, they decided to apply their expertise to improve access to the financial-services industry for young people. In 2013 they founded Robinhood, a commission-free trading app. Robinhood is now the fastest-growing brokerage, with more than $3 billion in trading volumes. Its almost 1 million customers have saved some $70 million in trading commissions.
PLY: Er…platform charges you nothing, gets paid for order flow and this means the crusties really stick it to the 1%? I hate to sound negative but I sense a flaw in this USP.
Special Section: FTI, NSEL, India at the Crossroads
PLY: What’s up at FTIL? Up nearly 14%… MCX flat. Funny how FTIL stock always seems to front run any news in the stock.
Jayshree P. Upadhyay – Livemint
Sebi has started an audit of the brokers that sold products of NSEL.
In Q4 2014 VPS initiated a project to modernise its IT platform and service platform. The BoD of VPS has decided to end the agreement with Percival CSD Partners to deliver a CSD core system.
PLY: Pretty seismic loss for Percival to be shunted out of a signed deal during implementation. Suggests a breakdown of relations not in keeping with the normally reserved Scandinavian culture – to put it mildly.
Michelle Price & Engen Tham – Reuters
The move would serve as an alternative to a cross-continent, direct equity trading link being studied by the LSE and Shanghai SE (SSE) but which is unlikely to be pursued due to the technical challenges involved.
PLY: AKA the LSE-Shanghai through train was typically vacuous UK FinMIn puff / LSE Agitprop when they gave George Osborne an away day, as I said at the time.
Nasdaq announced that a compression session in collaboration with TriOptima (announcement here) and several Nordic banks has been carried out for the majority of the Nordic banks. Five clearing members eliminated 288 billion SEK in the first compression cycle for SEK IRS at Nasdaq Clearing.
Yui Nakamura & Mayuko Tani – Nikkei
Amid consolidation among major global bourses, SGX has decided to pursue an altogether different strategy from many of its peers. It focuses on offering new derivatives products in the hope of tapping potential investor demand.
PLY: Pursuing the last decade’s derivatives strategy may yet have a lot of legs in Asia – we shall see…
Currently, the local fx market runs from 9 am to 3 pm on weekdays. If extended, it will open till 3:30 pm.
Alice Attwood – FOW
Nasdaq has restructured the leadership team of NLX, with CEO Charlotte Crosswell to take on a new board member role as CTO Carl Slesser steps up as President. QV Premium: NLX Brief.
PLY: Ceteris paribus anvils at altitude generally can’t defy gravity while similarly perceptions of protection from above ultimately couldn’t prevent the gravity of failure being applied to what was a disruptive presence in derivatives insofar as disrupting reputations without actually ever making any coherent impact beyond a disturbing, brand destructive hype and a lot of very expensive inaccurate agitprop. Good luck to Charlotte in the future. It will be interesting to see how Hans-Ole Jochumsen brings his focus to what NLX does next. Exploiting the licence is a good idea. Dead horse flogging has not yielded tangible results on any platform so far as I can recall.
During its annual General Assembly on 13th April 2016, the 20 members of the European Association of CCP Clearing Houses (EACH) elected the following Board members for a two-year mandate:
Chairman – Simon Turek, Senior Director, Government Relations CME, CME Clearing Europe
Vice-Chairman – Tim Grange, Director of Regulatory Policy, ICE Clear Europe
Vice-Chairman – Oliver Haderup, CCO, Eurex Clearing
Vice-Chairman – Corentine Poilvet-Clediere, Head of Regulatory Strategy & Post Trade Policy, Europe, LSEG, LCH Group
Member – Xavier Aguila, MD Operations, BME Clearing
Member – Erica Brown, Head of International Affairs, Nasdaq Clearing
Member – Arnoud Siegmann, CRO, EuroCCP
Member – Marcin Truchanowicz, MD, CRO, KDPW_CCP
PLY: Good to see Simon Turek stepping up to Chair EACH (and it was good to see you all last week). A very interesting board with a super strong triumvirate of Vice Chairmen and a good board for the long tail of CCP operations which the body represents under the indefatigable day to day management of Rafael Plata. With both IRGiT and KDPW active, it is good to see Marcin Truchanowicz on board, to remind us all that CEE Clearing is not just about the good offices of KELER.
Contango, the specialist derivatives consultancy, announced that Paul Constantinou will be working with its sales & business development team, with a specific emphasis on Technology. Paul was most recently responsible for sales & new market development at Trayport, a leading provider of energy, commodity and financial trading solutions to exchanges, brokers and traders worldwide.
PLY: There was us all thinking he was talking a while off but then again as I said at the time, it is unsurprising he would be a man in demand!
Michael Smith – AFR
ASX Chairman, Rick Holliday-Smith, who usually avoids the limelight, has been doing the rounds of the exchange’s staff, senior executives, shareholders and regulators, following the sudden resignation of EFK.
PLY: I love a good old fashioned introverted exchange. I am still trying to discern a single client reference in this article. Oops.
LeapRate reports that Eddie Astanin, Chairman of the Executive Board of Russia’s National Settlement Depository, has been re-elected to the BoD of the self-regulated non-commercial organization “National Securities Market Association” (NSMA).
Enoch Yiu – SCMP
As Metdist head Apurv Bagri and HK-based hedge fund manager Edward Chin Chi-kin square off for the seat in the coming AGM due April 28, Bagri seems the obvious outsider as it would be the first time someone based outside HK and from the metal trade would make it to the board if he gets past the post. But the board thinks otherwise, having just issued a circular urging shareholders to vote for him.
PLY: The insider outsider… Hmmm.
19 – 20.04 – ICDA Blockchain Conference, PLY speaks & chairs a panel amongst a glittering line up…
21.04 – I-Cham Breakfast, in Dublin, Ireland, Guest Speaker Patrick L Young discussing investment in CEE & SEE markets
17-19.04 – IOMA: WFE’s Clearing & Derivatives Conference 2016 in Kuala Lumpur – programme
All forthcoming exchange / investment related events are now listed in our Events page.
Jorge Otaola & Walter Bianchi – Reuters
A bank and a business group are likely to launch Argentina’s first IPOs in over five years.