India banning sugar trade just as BSE hits a pre-IPO sweet spot? EEX powers ahead, BvB stagnant. Ramifications on WGC-LME and some insights into the linearity of some viewpoints in metals.
Thanks for all the correspondence on the BIDS BATS LIS deal, particularly my Premium piece: BATS BIDS: New Kids on The Block In Europe written just after the announcement the other day.
The CEE CMU Capital Markets awards are coming up mid-September (see banner to the left). The first summit for CMU in CEE takes place on the same day, chaired by me – can you afford not to be there? Rates are very attractive: from €295 for the summit, to €595 for the Gala & Summit together. Email me or follow this link HERE to sign up.
Additional acceptance period will expire on 12 August 2016, 24:00 hours (CEST).
PLY: The blob crawls on with some more votes trickling in long, long after all the original deadlines. 181 days until this deal hits the antitrust zone of peril. QV Premium: DB1-LSE Merger Brief.
vs H1 2015: sales revenue EUR 117.5m (USD 131.6m), up 34%, EBT EUR 45.8m (USD 51.3m).
PLY: Excellent progress and good to see an arm of DB1 moving forward despite the entropy of the parent company’s Merger of Equal Desperation strategy.
vs H1 2015: operating revenue Lei 14.16m (USD 3.55m), down 5%, operating profit Lei 1.24m (USD 310k), down 4%, profit for the period Lei 1.8m (USD 450k), down 44%.
PLY: Without government support and with the Romanian investor community a fraction of its potential size due to investor education and, more fundamentally, trust issues, BvB is drifting.
H1 Results published yesterday.
PLY: …perhaps even by end 2016…
QV Premium: HKEx – SZSE Stock Connect.
Enoch Yiu – SCMP
HKEX reveals 38% fall in quarterly profit and Chairman Chow Chung-kong plays down ongoing spat between regulators.
Andy Home – Reuters
LME has announced the launch next year of a suite of precious metals contracts, starting with gold and silver and eventually encompassing platinum and palladium.
PLY: Balanced outlook with perspective. The history looks tricky but it was also a history from a different world and even metals are moving towards the digital (and MIFID II is a looming issue too).
Ewa Manthey – Fast Markets
“It’s been tried before, with very poor results,” one market source said.
PLY: (Fastmarkets is a copper centric site btw). Anonymous cynicism is not merely the first resort of the spineless, it’s the watchword of faceless linearists who dog innovation with their stubborn incapacity to see the future. WGC ought to be cheered that the arguments are so weak – e.g. ‘somebody tried it before in a different millennium’ which inspire me to note ‘it’s a new digital world, and you clearly aren’t in it” to those who enjoy the opacity of metal markets to hide behind their weasel words. True, there is a side issue which would suggest LME antipathy is strong in many places but that is a separate argument between LME and an agitated minority which ought not to interfere with WGC’s initiative.
Kurt Dew – Seeking Alpha
Exchanges, in the popular view, are a sort of public utility. But their high performance stocks belie this notion. They have been a bulwark of steady excess profitability for the past five years. Yet this profitability is built on a government-created data monopoly. Within the next five years, the party will end in tears.
Justin Baer, Gregory Zuckerman & Aruna Viswanatha – Wall Street Journal
After his warnings about Bernard Madoff’s Ponzi scheme went ignored for years, Harry Markopolos urged U.S. regulators to encourage tipsters. Now, the forensic accountant and a team he put together are in position to benefit from those new incentives.
PLY: In Britain they would probably give Markopolos a medal of some sort, except they all seem to be reserved for hairdressers and dismal advisors to Dave Cameron this summer.
Tim Cave & Samuel Agini – Financial News
Working together is not something financial firms have always found easy to do. But trading venues, brokers and technology providers are increasingly linking up to help clients meet new EU regulatory requirements.
PLY: This is only in its infancy but clearly the week’s big news on that front is the BIDS BATS LIS platform as discussed in Premium: BATS BIDS: New Kids on The Block In Europe.
Joe Parsons – The Trade
Following a controversial report regarding the costs of clearing OTC derivatives, Joe Parsons speaks to LCH’s rates and FX boss over the future of central clearing.
vs 2015: consolidated net profit at Rs 52.72 crore (USD 7.9m), up 40% , total income 165.42 crore (USD 24.8m), up 15%.
PLY: Wow, wow, and thrice wow – that is a rather awesome Q1 profit number for a BSE on the launch ramp towards IPO. Looks like a circa $700 million valuation is achievable (at least!).
Deema Almashabi – Bloomberg
The regulations — which will cut the amount of assets foreigners must have under management to invest directly in the nation’s stocks to 3.75 billion riyals ($1 billion) from 18.75 billion riyals — will come into force on Sept. 4, according to a statement from the Capital Market Authority on Wednesday. They will also allow individual foreign investors to own not more than 10% of shares outstanding in a single company, up from 5%.
ITG declared a regular quarterly cash dividend of $0.07 payable on September 7, 2016, record date August 22, 2016.
Special Section: FTI, NSEL, India at the Crossroads
PLY: MCX 996.00 up 2%, FTIL flat.
Matthew Leising & Annie Massa – Bloomberg
After JPMorgan’s shares plunged 21% in the opening minutes of trading on Aug. 24 last year, the world’s largest investment bank sought out an unlikely ally, Virtu Financial, to help it understand what happened.
The lion was turning to a mouse for help navigating the jungle where it has long been king. JPMorgan spends more on technology in six months than Virtu’s equity is worth. It has 240,000 employees to Virtu’s 148.
Yet Virtu is so advanced in the arms race of electronic trading and order routing that JPMorgan executives wanted its appraisal to either confirm or deny the bank’s own analysis.
Anna Irrera – Financial News
BAML and HSBC have teamed up with a Singapore government agency to develop a blockchain-based trade finance application, as capital market firms speed up efforts to bring DLT into use.
PLY: Trade finance is fundamentally broken and needs all the help it can get.
Joseph Wang, Bitquant Research Laboratories chief science officer, discusses what we learned from the $71 million hack of Bitfinex.
John McCrank & Trevor Hunnicutt – Reuters
Nasdaq plans to increase the amount it pays to trading firms that support ETFs in an effort to make thinly traded ETFs easier to buy and sell.
Jayshree P. Upadhyay – Livemint
The government is concerned that futures market aren’t setting correct price signals for sugar amid concerns of speculators dictating terms during a shortfall.
PLY: Bad move, particularly given the supposed free market inclinations of the current regime.
SEC named Kristin Snyder as Co-National Associate Director of the Investment Adviser/Investment Company examination program in the Office of Compliance Inspections and Examinations (OCIE). She joins Co-National Associate Director Jane Jarcho who has led the program since August 20, 2013 and was named OCIE’s Deputy Director on February 3, 2016.
12.08 – BM&FBOVESPA Q2 2016 Results
17.08 – NZX Q2 2016 Results
New! – 18.08 – ASX Full-Year Results For FY16
All forthcoming exchange / investment related events are now listed in our Events page.