August 21 2015

elb2It’s nearly Time for Young Markets:

If you’re at that stage where you want to really see the future of finance evolving in front of your eyes, there are still some spots available at my next “Young Markets – the Future of Finance” symposium in Warsaw 17th September. There will also be a free workshop during the afternoon of Wednesday 16th about HFT led by the CIAMSE arm of the Polish Academy of Sciences. Keynotes include the Chairman of the Warsaw Stock Exchange Dr Wieslaw Rozlucki. If you want to see my latest thinking on the future of markets, I’ll be showing some of that alongside crunchy sessions on the Blockchain, new exchange markets and, well the future of just about everything in traded markets! Hit reply and email me for more details to register – the 600 Euro delegate fee includes an invitation to the Inaugural CEE Capital Markets Awards dinner on the evening of the 17th.

Public Markets

Cinnober Financial Technology H1 2015 Results

vs H1 2014: Net sales SEK 135.8 mln (USD 16 mln), down 3%, EBITDA SEK 2.2 mln (USD 260k), down 40%, Profit before tax SEK 2.1 mln (USD 247k), up 16%, Profit for the period SEK 0.3 mln (USD 35k), down 88%.


ASIC To Level Chi-X, ASX Playing Field
Michael Roddan – Business Spectator

Chi-X Australia may be able to start quoting and trading warrants and ETFs after the corporate regulator proposed changes in a consultation paper to its market integrity rules.

PLY: A level playing field is the aim says ASIC and that is to be applauded, so competition can deliver the benefits seen elsewhere in the world.

Read our Premium ASX Monopoly – Brief – Part 3.


LME Announces Plans For Market Making Programmes

First programmes of their kind to be introduced by LME in its 138-year history for forthcoming aluminium premium contract and two new ferrous contracts – steel scrap and steel rebar – etc.


NZX Retains Electricity Authority Contract
Suze Metherell – 3news

NZX has been named preferred supplier by Electricity Authority to continue managing all its market operations, including pricing, clearing and wholesale information after a recent tender.


Sebi Bars 59 Entities For Manipulating Markets, Evading Taxes
Jayshree P Upadhyay – Business Standard

PLY: Good riddance and bravo to SEBI for clearing this up. Now, while you are about it, NSEL, please?


SGX Proposes Segregation Of Collateral Of Derivatives Clearing Members’ Affiliates

SGX is consulting the public on the proposed introduction of Affiliate Segregation where collateral of an affiliate of an SGX Derivatives Clearing (SGX-DC) member is protected if the member defaults on its own contracts. The affiliate’s positions may also be transferred to another SGX-DC member.

Private Markets

BATS Mulls Derivatives Reporting Extension (subscription)
Alice Attwood – FOW

Bats Chi-X Europe is considering an extension of its equity market trade reporting service to cover OTC derivatives.


NEO Exchange’s Schmitt Says Not All Trading Speed Bumps Are Created Equal
John D’Antona Jr. – Traders Magazine

Not all trading delays or intentional speed bumps are the same according to Jos Schmitt, CEO of Aequitas NEO Exchange.

Of top importance are the implications of changing Alpha exchange into an unprotected market will have on best execution and order protection rules. He also argued that not all speed bumps are created equal and an unprotected Alpha speed bump will only cater to predatory HFT.


“TASE Must Integrate Arabs Or Pay The Price”
Chen Ma’anit – Globes

PLY: A fifth of Israeli citizens are Arabs, many companies are Arab owned yet none of them are lsted on the Tel Aviv SE. Interesting article.

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX is down 2%, FTIL aka Jignesh Inc now rebranded as “63 Moons Technologies” is off 3%. Probably selling by portfolio managers who were embarrassed to see it on their daily reports.


NYSE Plan To Update Private Data Feed Draws Criticism From IEX
John McCrank – Reuters

IEX criticized a plan by NYSE to give a more complete view of transactions executed on the exchange only to firms that pay a premium for that service. “It’s a fundamental issue about fairness and transparency,” said John Ramsay, chief market policy officer at IEX, and former head of SEC’s Division of Trading and Markets.

PLY: An interesting story where I see both sides. From the IEX angle, they would like everything to be open and transparent to help the US stock market overall. At the same time, NYSE is now under competent management who believe in building the company, not self-enrichment. NYSE’s bosses learnt their trade in the 3 dimensional world of derivatives and not the, frankly, a tad stiflingly odd, equity markets (which again it must be noted, IEX are battling to bring more logic to). However, in a commercial operation it strikes me NYSE are entirely within their rights to provide extra information beyond the statutory minima to clients through a premium feed which they get paid for. If the regulators want to move the goalposts that is a different item. Likewise the SIPs remain tricky territory. However if it’s a case of packaging their own data derived from their exchange processes to sell more granular feeds, then that’s NYSE’s business to do as they wish imho.

Then again the difficulty in the dog’s dinner of Reg NMS is that we’re trying to enjoy a ball game (any code) on top of what ought to be a level greenfield site but is instead a hideously complex topography which does not easily lend itself to simple logic…Well beyond “what idiots put that there?” which is pretty much how I feel about the whole US stock market infrastructure. I sympathise with IEX but here I think NYSE is quite within its rights.


Nasdaq: Our Plans With The Blockchain (subscription)
Anna Irrera – Financial News

More about Nasdaq’s blockchain project here.


Nasdaq & Visible Alpha Partner To Provide Companies With Deeper Insight Into Analysts’ Expectations Of Their Performance

PLY: Interesting.


Bitcoin ETF Planned For Launch On KRX
Leon Pick – Finance Magnates

Career Paths

Green Key Technologies hired Ray McKenzie as Head of North American Sales.

PLY: Good luck to Ray McKenzie, who left ICE a while back.

Financial Calendar

21.08 – Record date TMX $0.40 dividend

21.08 – Record date BGC Partners’ BoD $0.12 dividend

Next week

28.08 – Record date LSEG interim dividend of 10.8 pence

28.08 – Record date for HKEx Interim dividend

All forthcoming exchange / investment related events are now listed in our Events page.

Share Notes

Interactive Brokers Vice Chairman Earl H. Nemser sold 2,561 shares Monday, August 17th at $41.98 (bargain $107,510.78) and 2,594 shares Wednesday, August 19th at $42.17 (bargain $109,388.98).

ITG CEO R. Jarrett Lilien bought 5,000 shares Wednesday, August 19th at $17.07 (bargain $85,350.00). He now owns 11,119 shares.

ITG Director T. Kelley Millet bought 2,000 shares Wednesday, August 19th at $17.32 (bargain $34,640.00). He now owns 10,640 shares.

Analyst Notes

LSE “Outperform” Rating Restated By RBC Capital – GBX 2,900 Price Objective

LSE “Overweight” Rating Reissued By Barclays – GBX 2,840 Target Price

DB1 Upgraded By Zacks From “Sell” To “Hold”  

CBOE Downgraded By Zacks From “Buy” To “Hold”

A full table of current analysis can be found on our Analyst Ratings page which is updated daily.


Marketplace Lending: Maddening (subscription)
Financial Times

An old credit card debt is roiling a new industry but it should not overturn valuation assumptions.


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