APRIL 4 2017

Issue 968 of Exchange Invest coincides with the final version of the 944 Porsche, the S3 which bore the type number 968. Best served in its lightweight ClubSport variation.

In Today’s Exchange Invest

The good folks of Kynetix have launched their latest white paper concerning Refined Fuel Storage. Commodity mavens can click the link to download “Overcoming Complexity In Establishing And Transferring Title” free of charge.

“You mean nothing to me!” says LSE of departing Euronext CCP volume as it eagerly defends the CDS and repo business in Clearnet.

BXTR goes (rather seamlessly) buy side, BOX floor causes complaint, DTCC hires OCC COO and OCC replaces Mike McClain with John P Davidson while Marlene Street Forrest is promoted to the board and CEO of JamStockEx from her longstanding MD position.

And there’s more, happy scrolling:

In BigWorld

Big news in the digital world is the upheaval in Operating Systems. For the first time, that dreadful ‘tat’ which is Microsoft Windows has been outpaced by Google’s Android. Interestingly, the old world, particularly analogue Europe still loves Windows where in keeping with the many ancient monuments, the Seattle museum piece had 51%. Asia is way gone down the Android route and pulling away…

Only 5 years ago Windows reigned supreme world-wide with 82% of OS in 2012 versus 2.2% for Android.

Of course the biggest undercurrent is not merely how far and fast Microsoft has fallen (despite a decade and more of sucky software) but on the big picture of big OS, remember that the Android revolution is a fundamentally mobile / tablet OS…

Public Markets

LSEG Plc Statement On LCH SA
Euronext Signs Up ICE To Replace LSE Derivatives Clearing Unit

PLY: The profit numbers mislead in the millstone repo which is LCH SA for LSEG. Clearly it makes little of the group profit, as LSE tartly notes but the entity is mostly occupied clearing Euronext equity options et al. Thus a lot of costly French executive bodies may soon lack gainful employment but firing French workers is to put it mildly a challenging experience (a la Paris Bourse all those years ago: expect CGT union membership forms to be the hip accessory to any bourgeois lifestyle at LCH SA today). Besides, ICE in Amsterdam will not hire many (any) of them. Perhaps XavRol thinks he can lease them to Brexit absconding bankers from the City of London who just want to be cocooned in the elegantly anti-commercial confines of Paris?

LSE may be making such robust statements by threatening to set Turquoise on Euronext equities with a greater vengeance but it’s hardly a coherent measured response. I can appreciate LSE aren’t happy about selling on their repo biz (rapidly expanding in Paris now MOED is off the agenda) nor the CDS enterprise which was adroitly manipulated into Paris through the appropriate squeezing of EU channels but ultimately Euronext have just left LSE looking confrontational.

Hong Kong’s Struggling Debt Market Puts A Damper On Hopes For Bond Connect Scheme
South China Morning Post

PLY: Cyclicity has been a key factor dogging the HK Connect network to date. Over time the results ought to be much more clear while launching into a bear market is not the worst idea for an exchange which can afford to launch a unique access point methinks.

Will BSE’s New Pricing Strategy For Trades Get In More Volume?
Business Standard

Though the BSE is doing well, the growth is not comparable to the NSE .

Bats Europe Expands BXTR To Offer Buy-Side Trade Reporting Services

PLY: Logical, coherent and links through existing technology. Can only help the BATS/BIDS LiS block trading facility too methinks. Good move by the newly crowned President of CBOE Europe Mark Hemsley.

FXCM’s Great Comeback: GLBR Shares Up 86% Since March 20

PLY: Varying perspectives:

Short-term (presumably for forex traders): A whopping 80% bounce in a week or so of low volumes drives frenzied excitement, leaving the stock at around 2.70 (oh and I think it fell again yesterday);
Longer-term more sanguine: Still a touch shy of circa $9 earlier this year, let alone the $15 of this time last year.

Elsewhere on the etherweb, there are suggestions the disgraced Drew Niv is still listed as a director of a UK subsidiary are floating around.

Private Markets

Big Exchanges Attack New Chicago Trading Floor Plan
Crain’s Chicago Business

PLY: Even though I heard of this frankly curious plan last year, had it arrived on April 1, I would not have been surprised.

Ireland May Need New Central Securities Depository Post-Brexit
Irish Times

REGIS-TR Receives Formal Recognition As Foreign Trade Repository In Switzerland

Funderbeam Secures Funding From Mistleto, To Expand Into APAC

PLY: Ambitious move to Asia for Funderbeam.

Special Section: FTI, NSEL, India at the Crossroads

No news today.


Broadridge Is Building A Global Blockchain For Stockholder Voting

PLY: Intelligent.


Tokyo Commodity Exchange Announces Launch Of New LNG Contracts On JOE

Career Paths

PLY: Andrew B. Busch has been appointed as the CFTC’s first Chief Market Intelligence Officer.

Michael McClain who was COO of OCC has been appointed MD & GM Of DTCCs Equity Clearing Business while parish veteran John P. Davidson has been appointed to replace McClain as President & COO of OCC. Also at OCC, the Chief Audit Executive, Adi Agrawal has been promoted to the new role of Chief Business Transformation Officer.

Congratulations to all the above and also hearty congratulations to longstanding GM of the Jamaica Stock Exchange Marlene Street Forrest on her appointment as MD and a member of the Board of Directors effective April 3, 2017. Consequent on the appointment of Mrs. Street Forrest, Miss Roxanne Hutchinson, Senior Legal Officer, has been appointed the new Company Secretary, effective April 3, 2017.

NCDEX e Markets (NeML), a NCDEX group company, has appointed Rajesh Sinha to grow the agricultural focussed e-commerce end of the NCDEX electronic exchange platform.

Fantex Founder Leaves Athlete Stock Exchange

Cornell “Buck” French, the co-founder and chief executive of Fantex, has left the San Francisco-based athlete stock exchange after having shut its trading platform.

PLY: It would be simplistic to just say “oh Duncan Niederauer invested so the platform was doomed” but this innovative venture I thought had some issues in the way it was created – albeit many arguably driven by US regulation. There is a huge market here which has been visible for 20 years or more but alas Fantex didn’t quite hit the spot. That’s a shame.


China P2P Industry Lending Nears Rmb 1tln Despite Crackdown, New Regulations
Financial Times

Other Stories

ESMA Updates EMIR Q&A And Validation Rules
ESMA Updates Q&A On MiFIR Data Reporting
With an exception or two, positivity focus of the week seems to be still intact…

Thanks for reading Exchange Invest.


Patrick L Young
Executive Director DV Advisors

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