August 25 2015

 elb2NASDAQ intelligently pushing into forex, as Virtu amongst the big winners on a day when markets were lopsided and the media frothing at the mouth. (PLY inputs include: an Op-Edge column & an impromptu radio interview). Markit acquires DealHub for undisclosed sum, while American MTFs suffer market share falls as US equity volumes rise. In other asset classes, Liquidnet very optimistic about prospects for their Bond platform…

Public Markets

Nasdaq Poised To Launch FX Trading Platform
Ole Mikkelsen – Reuters

Nasdaq is poised to launch a platform for fx trading which it says would make the $5 trillion-a-day global market more transparent and would diversify its own business, according to Nasdaq Co-President Hans-Ole Jochumsen. The FX trading platform is ready to be tested with banks although a launch was more likely in 2016.

PLY: Brilliant move by NASDAQ. Hans-Ole Jochumsen demonstrates both the ability to expand the NASDAQ offering into interesting markets as well as deploying technology and infrastructure cost effectively for new markets (not always a NASDAQ strongpoint in the past). The forex market is in significant flux and that provides a huge opportunity for multiple exchange groups and upstart platforms across the world…

Markit Continues Technology Buying Spree With DealHub Acquisition
Avi Mizrahi – Finance Magnates

Markit agreed to acquire DealHub (Option Computers Ltd), a trade processing and trading services provider to the fx market, for an undisclosed sum.

It comes on the heels of the firm’s acquisition of CoreOne Technologies for $200 mln earlier this month, and is part of the major consolidation underway in the fintech sector: FIS is buying SunGard Data Systems for $9.1bn while CSC is buying Fixnetix in a $100 mln deal, both reported on Aug 13th..

NASDAQ OMX NLX Market Memo: 003-15

Appointment of Designated Market Makers in the NLX Futures Products

For background, read our Premium NLX Brief.

ITG Dark Pool Volume Fell By Nearly Half Following Record Fine

More about ITG settlement with SEC here & Read our Premium post: “ITG, Dark Fines & A Coalition for Change.

Dark Pools Were The Losers As U.S. Markets Saw Volume Spurt
Sam Mamudi – Bloomberg

US MTFs handled less than 30 percent of equity volume, their smallest share of trading since August 2012. More than 14 billion shares traded in total, the most since June 26 and more than double the daily average of 6.6 billion during the past year.

Historic Profits For HFT Firm (subscription)
Bradley Hope – Wall Street Journal

Virtu Financial was on track to have one of its biggest and most profitable days in history Monday amid a tumultuous 24 hours for world markets, according to its CEO Douglas Cifu.

Sebi To Revise Clearing Corp Norms; Mulls Interoperability
The Economic Times

Sebi decided to seek public comments on recommendations made by an expert committee on Clearing Corporations chaired by eminent banker K V Kamath.

Sebi Approves New Norms For Commodity Derivatives Market
Anirudh Laskar & Ashish Rukhaiyar – Livemint

New Sebi Norms Will Usher In Next Set Of Reforms: Commexes
Business Standard

MCX and NCDEX welcomed Sebi’s new norms for commodities derivatives market saying that this will usher in next set of reforms as Sebi set September 28 as the date for merger with FMC alongside an equalisation of rules for brokers in the commodity sector with their equity peers.

Read our Premium SEBI-FMC Merger Brief.

Private Markets

Indonesia Exchange Imposes 10 % Drop Limit On Shares
Harry Suhartono & Yudith Ho – Bloomberg

Indonesia Stock Exchange narrowed the daily limit on share-price losses to 10% in a bid to stem volatility after the benchmark index fell to a 20-month low. The bourse cut the cap from between 20% to 35% starting Tuesday, the same day that state-owned companies collectively plan to spend at least 10 trillion ($710 million) on share buybacks.

Augur Breaks The 1000 BTC Mark In Prediction Market Crowdsale

PLY: A strong performance so far by a fascinating concept which threatens to revolutionise the prediction markets space.

Special Section: FTI, NSEL, India at the Crossroads

PLY: ‘The moonies’ formerly known as FTIL shares are down 5%, MCX is down 1%.


PSE Halts Trade After Stocks Drop Most In 7 Years
Ian C Sayson & Cecilia Yap – Bloomberg

Philippine SE (PSE) halted trading because of a technical glitch after the benchmark equities gauge tumbled the most in almost seven years. There was “a problem of interface with the translator system,” Chairman Jose Pardo said in a mobile-phone text message, denying speculation the exchange stepped in to arrest the index’s tumble.

PLY: PSE have been having problems with various third party systems in recent weeks. Last week it was the OMS. None of the problems emanate from the NASDAQ X-stream technology in the PSEtrade XTS system.

MOEX To Update SPECTRA Trading System
Maria Nikolova – LeapRate

The new version of the system, to go live on August 31, 2015, removes limitations for maximum FX rate change for Variation margin calculation at clearing/intermediate clearing.


Liquidnet Says Support Growing For Its Fixed Income Dark Pool

Liquidnet will launch its corporate bond trading “dark pool” at the end of September and so far has 120 U.S. firms, representing ownership of 50 percent of the asset class, lined up to start using the private trading venue.

Liquidnet, which usually connects fund managers seeking to trade big blocks of stock anonymously, had aimed to have 60 to 70 firms signed up before the launch, but already has double that amount in the US alone. The New York-based company said it had not yet finalized the number of European firms signed up.

PLY: Very encouraging news. I clearly recall the LN Europe board meetings where my then fellow board member Adrian Fitzpatrick first urged Liquidnet management to consider a bond platform. I wish the Liquidnet platform every success.

Read our Premium post On Bonds & SEFs and Premium brief The Bond Platforms Rush Part 1,Part 2.

Career Paths

SR Labs hired Raakhee Tharani Miller as Head of Sales based in New York.

Amercanex (American Cannabis Exchange) hired former NYMEX Chairman Richard Schaeffer, along with his fellow NYMEX Board Member David Greenberg. Schaeffer, now an equity stakeholder in Green Tree International, parent company of Amercanex, and is a new member of Green Tree’s BoD. Greenberg has joined the Amercanex Advisory Board.

Financial Calendar

28.08 – Record date LSEG interim dividend of 10.8 pence

28.08 – Record date for HKEx Interim dividend

Young Markets Future of Finance Symposium: Warsaw 17th September, email me for registration details.

New announcement – WFE General Assembly and Annual Meeting at the Kempinski Marsa Malaz hotel in Doha, Qatar, on October 19-21.

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

Share Notes

Interactive Brokers President Milan Galik sold 13,025 shares on August 20th at $40.24 (bargain $520,236.06).

Interactive Brokers Vice Chairman Earl H. Nemser sold 2,605 shares on August 21st at $39.94 (bargain $104,043.70).

Check our Share Notes section in Premium.

Analyst Notes

CME Upgraded By Vetr From “Buy” To “Strong-Buy” – $104.72 Price Target

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

Other stories

Charles Schwab Fined $2 Million By Finra
Lisa Beilfuss – MarketWatch

…net capital and risk management issues.


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