August 25 2016

 

elb2Even the Bundesbank is worrying about the too big to bail/fail CCP business which would be the monopoly DB1-LSE as derivatives users worry about collateral roving costly – but not in the conventional economic sense… MCX and MSEI secure out of court agreement on warrants. With 14.99% of MSEI, MCX is well-positions, if, MSEI can survive and thrive. TMX may help BRVM with a West African Mining Exchange.

 

I am briefly on video briefly discussing the forthcoming CEE Capital Markets Awards & CMU summit taking place September 15th in Warsaw. The nominees have just been published too. If you are interested in CMU, you can’t afford to miss the summit while the Gala dinner is the event rewarding CEE listed companies. Prices range from from €295 for the summit, to €595 for the Gala & Summit together. Email me or follow this link HERE to sign up.

 

Public Markets

 

Buba’s Dombret Says Eyes LSE-Deutsche Boerse Merger With Some Concern

Andreas Kroener, Frank Siebelt, Jonathan Gould Reuters UK

 

PLY: We’re closer than ever of DB1 notifying the antitrust folks officially of its acquisition of LSE and the Merger of Equal Desperation seems to be broadly friendless beyond the exchanges’ payroll (and it’s not even clear the internal spirit is unanimous either. Bundesbank board member Andreas Dombret is clearly concerned with the contagion risks being created by a CCP monopoly under one holding company (that the holding company will dart about faster than a restive Pokemon Go creature is a separate issue). We’re 184 days in, with 167 to go until we hopefully reach what will prove to be “a safety-nyet” from antitrust (based on the NYSE-DB1 debacle).

 

Does the SGX-Baltic Exchange Deal Make Sense?

CNBC Video

 

The deal makes sense because SGX’s fastest-growing business is in commodity derivatives, shares SGX’s Head of Derivatives Michael Syn.

 

Derivatives Users Hit as Negative Rates Raise Collateral Costs

John Detrixhe & Richard Partington, Bloomberg

 

PLY: Perfect surmise in this article from Peter Lenardos of RBC: “Banks are tying up collateral that is in short supply, and that sits at clearinghouses earning them nothing, and now it may even cost them something.”

 

Central bankers, having created perhaps the greatest elite blob mania of all time, need to be reeled in…

 

Paddy Power Betfair H1 earnings up 31 pct, merger cost synergies inc…

Reuters

 

PLY: Revenue up 18% with merger synergies increased, just like the best of exchange mergers…. Albeit the new business is much more diluted as an exchange entity, somewhat therefore on the cusp of the parish nowadays…

 

These big banks are working on a digital currency together

Lynsey Barber City A.M.

 

PLY: More on Utility Settlement Coin (USC) mentioned yesterday.

 

Private Markets

 

MCX, MSEI ink pact to settle warrant dispute out of court

Economic Times

 

PLY: Good to see this long running dispute over warrants being resolved at last. The settlement terms will leave MCX just shy of the 15% limit with 14.99% of Metropolitan Stock Exchange of India (MSEI) from currently circa 3.9%.

 

West Africa Bourse Plans Mining Exchange to Ease Capital-Raising

Olivier Monnier Bloomberg

 

PLY: Very interesting: the BRVM is in talks with the Toronto Stock Exchange to set up a “technical cooperation” for a specific mining exchange.

 

Special Section: FTI, NSEL, India at the Crossroads

 

MCX up 1%, FTIL flat, no other news today…

 

Technology

 

Japanese Banks, E-Commerce Giant Ramp Up Blockchain Development

Diana Ngo Bitcoin Magazine

 

PLY: The Rakuten Blockchain Lab (RBL) follows the firm’s acquisition of Bitnet Technologies, a bitcoin startup specializing in merchant payments…which was mentioned in my white paper last year “Towards A Real Time World Market.”

 

Products

 

The Time is Ripe for Equity Market Auctions

John D’antona jr Traders Magazine

 

The Chicago Stock Exchange has begun to adopt an auction structure, launching their SNAP auctions for securities…

 

PLY: As a big advocate for auctions myself, the most comprehensive thinking in the space I have seen is being delivered in the solutions of Perfect Channel.

 

Career Paths

 

As a result of Sandnes Sparebank being sanctioned for a breach of the duty to disclose inside information to the market, Chairman Harald Espedal has resigned as Deputy Chairman of Oslo Børs ASA, and Oslo Børs VPS Holding ASA. “I stand by the assessments made by Sandnes Sparebank during this process, but do not think it right for me to continue to serve on the Board of Oslo Børs when a violation charge is being imposed on a company where I am Chairman of the Board”, Espedal has said.

 

TMX announced the launch in September of the Advancing Innovation Roundtable, to examine ways to increase access to growth capital for companies in Canada’s innovation economy with the goal of delivering a set of actionable recommendations in early 2017 on how to successfully scale globally competitive enterprises in a variety of sectors including technology, clean technology, life sciences and advanced manufacturing. The Roundtable will be chaired by Salil Munjal, General Partner at Yaletown Partners, a private investment firm focused on financing growth-stage technology companies and have members from amongst the senior leaders of the Canadian investment community.

 

PLY: Great idea although it might be worth adding some international and lateral perspectives to the roundtable gene pool?

 

Following its senior management departures in the wake of bond conflicts of interest, Bloomberg reports LendingClub has shored up its investor group, employing Morgan Stanley  former Valerie Kay to be head of institutional clients alongisde ex-Blackrocker Raman Suri heading institutional clients.

 

David Davies, a member of the Supervisory Board of the Vienna Stock Exchange (CEESEG AG) has been appointed as a NED by Ophir Energy.

 

City AM reports Elena Gaetini, formerly with DTCC as governmental affairs director & head of southern Europe / France for Deriv/SERV sales, has joined a compliance service, Risk Focus.

 

Financial Calendar

02.09 – MOEX EGM

02.09 – Record date Q3 CBOE $0.25 dividend

02.09 – Record date Tullett Prebon 5.6p interim dividend

02.09 – TMX $0.40 dividend payment

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

 

Share Notes

 

Mandatory Notification Of Trades – Oslo Børs VPS Holding ASA

Mondovisione

 

Analyst Notes

 

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

 

Crowdfunding

 

Holes exposed in crowdfunding site

Matt Taylor dailytelegraph.com.au

 

A POPULAR crowdfunding site has been exposed for misleading the public…

 

PLY: Fundamental due diligence failures leave a “good causes” website funding a drug crazed maniac who crippled 2 in a road accident…

 

Other stories

 

China publishes new rules tightening regulation of peer-to-peer lending

Shu Zhang and Nick Heath Reuters

 

BEIJING Aug 24 China announced new rules on Wednesday to tighten regulation of the country’s $60 billion peer-to-peer lending sector…

 

PLY: The scandals have been one big issue while trying to rein in China’s lending bubble is another but both are interlinked here…

 

Malta Stock Exchange Newsletter Q2 2016

 

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