August 26 2016

elb2The DB1-LSE Merger of Equal Desperation has submitted their case to the EU antitrust which I remain confident will reject the deal. Today is 185 days in sinceFebruary 24 2016 which means we have 166 days on the countdown to a target zone of a decision – albeit the EU authorities themselves are suggesting an interim decision September 28th but that likely only marks the date they will go from a phase 1 investigation to a phase 2.

Back in the world of listed equities, my first one minute video briefly discussing the forthcoming CEE Capital Markets Awards & CMU summit taking place September 15th in Warsaw. Nominees published here. 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.

Today in EI, BGC buys Perimeter, big outflow of PE on NSE IPO likely,  auctions for Nepal… WFE ‘Blockchain’ survey sees much interest while the FIA releases its latest SEF tracker…and there’s more…

Meanwhile in Bigworld, Hillary Clinton remains under such pressure over her email servers, not to mention the Clinton Foundation’s semi-perfection of crony capitalism, it’s surely only a matter of time before she encourages Ryan Lochte to endorse her to burnish her ebbing credibility.
Public Markets


DB1 – LSE Battle To Win EU Commission Merger Approval
James Turvill City A.M.

PLY: Submissions in. Given the outlandish expenditure on the deal to date, presumably a team of professional dice warmers were flown in from Las Vegas to breathe on the paperwork before it was posted to Brussels… September 28th is the date for the initial response – which will almost certainly be to kick the phase 1 investigation into a phase 2.

Exclusive – BATS Eyes New EU Base Outside London after Brexit
Huw Jones Reuters UK

PLY: Having only passported as a bourse in 2013, BATS has the paperwork mostly on hand as Huw notes. Dublin is strongly touted as a possibility (avid golfers like Guy Simpkin may be declaring conflicts of interest in that decision making process…) I cannot also help but wonder if the problem is not so much acutely Brexit as rather, at least partially, London just pricing itself out of the hyper-parsimonious BATS approach to business? The Irish regulatory fees alone are likely to be significantly less and while Dublin is not ‘cheap’ within the EU, there could be all manner of opportunities to secure cheaper support staff in the likes of Belfast (through various cross border agreements)… Also it gets BATS a few summer headlines and they didn’t even have to mention their excellent LIS block trading initiative with BIDS. Oh and of course alongside the Irish SE, the Plato Politburo has signalled it will set up in Dublin too.

(see also Premium: BATS BIDS: New Kids on The Block In Europe)

LSEG PLC Rule 2.10 Announcement

ALEX BRUMMER: DB1-LSE Clearing the Air
This is Money

PLY: Alex Brummer retains his cynicism that DB1-LSE can thread its monopoly through the eye of the antitrust needle.

BGC Partners To Acquire Perimeter Markets Inc., Operator Of Electronic Trading Platforms In Canada

PLY: Acquiring the CBID Bond platform which enhances the brokerage services of BGC in Canada. Elsewhere in the Canadian bond market, during July the funding was completed for OverBond

Private Markets

NSE Public Offer May See Largest PE Exit
Abhineet Kumar Business Standard (subscription)

PLY: Up to 20% may be sold by the PE firms…

Finance Minister Keeps Up Pressure On Regulators
Times of Malta

PLY: No issue about the probity of the MFSA but the Maltese Finance Minister Edward Scicluna is eager to see regulatory applications being dealt with faster. …The Winkelvoss twins doubtless will rue that the Maltese government has no oversight over the US SEC but their story comes later…

Nepse To Operate Trade Guarantee Fund, Start Auction Trading

PLY: Further to my comments on auctions / Chicago SE – SNAP and the expertise of Perfect Channel yesterday, let’s note that if auctions have reached Nepal…


Special Section: FTI, NSEL, India at the Crossroads
MCX slightly firmer,  FTIL down 2%, no other news today…

WFE Distributed Ledger Survey – Over 84% Of Respondents Investigating DLT Applicability

PLY: Given the hype cycle of Distributed Ledgers, the question is more what the 16% of WFE members are (not) doing, not looking at Distributed Ledger technology when everybody else in the world is…

Financial Networking Company Prepares for ‘Post-Quantum’ World

A few financial firms, including Goldman Sachs, Royal Bank of Scotland, CME Group and Guggenheim Partners are evaluating quantum computers …

Three Trading Venues, Three Different Approaches

PLY Links ot a podcast discussing technology and the differences between IEX (own build), Nasdaq Futures (NFX) (internal technology) and Seed Commodities Exchange (Seed CX) (GMEX).

The Bitcoin Patent – Only A Matter Of Time?

The birth of bitcoin came in 2008 in a paper entitled “Bitcoin: A Peer-to-Peer Electronic Cash System” by the pseudonymous Satoshi Nakamoto.

PLY: Interesting piece to consider over the weekend.

The Bitcoin Bros Have Lost

The cryptoanarchists’ revolution is over. Condolences. The victorious cryptocapitalists’ advice is: Do what your parents did! Get a job, sir, at UBS, …

PLY: When the mainstream has it…can it still be a revolution?

Junk bond issuers mull delisting in latest push to evade MAR

PLY: A worrying development as the reality of the new MAD / MAR bites and potentially moves junk bonds out of the EU to other platforms…

Why the Winklevoss Brothers Are Still Waiting for a Bitcoin ETF

PLY: As you may recall, the Gibraltar SE was the first to list a Bitcoin fund… Meanwhile presumably the good folks of the Gibraltar SE must be excited at the opportunity being potentially delivered to their market from the previous story on MAR.
Financial Calendar

31.08 – HKEx 2016 Interim Results
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
19.09 – new – MCX India AGM September 19th
All forthcoming exchange / investment related events are now listed in our Events page.

Top City CEO: Crowdfunding Has ‘a long way to go’ But Will Be Massive
Business Insider

Other stories

Open Outcry Dying — But Will We Really Mourn Its Loss?

PLY: Gosh who would have thought we would be in 2016 and still have open outcry floors (albeit apart from the unique LME format which thanks to fixing makes it viable).

FIA Releases July SEF Tracker

All feedback welcome as always.

Best wishes,

Patrick L Young – Executive Director DV Advisors

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