August 30 2016

elb2Hello Again Britons…

Welcome back to parishioners from the UK after your bank holiday weekend – here’s what you missed: EI yesterday.

In Today’s EI: 

A New Chairman for SGX while Hillary Clinton’s mellifluous brilliance at trading is being used to suggest she may lack moral probity – surely not! DB1 holding BSE stake as is, not going the full 15% it seems (wonder what’s keeping them busy elsewhere)…SGX risking dual share move?

And there’s more…

DCOEX Anybody?

Meanwhile, a curious web site crosses my desktop. Has anybody heard of the DCOEX? I only mention it because their web site appears fresh and news of their existence reached me via a scam warning website (not a harbinger of good omens, traditionally). They claim “Deutsche Commodities and Options Exchange is one of the world’s largest commodities platform. The aggregate market cap of our listed issuers is greater than that of issuers listed on the next four largest exchanges combined.” Wow, this is big league stuff…yet I have never heard of them? It has an office in Mergenthalerallee 61, Eschborn, Germany 65670.“ DCOEX, despite their claimed commodity success, claims to be “applying for a licence from the Securities and Futures Commission (“SFC”) of Germany.” (I always thought it was called BaFin in Germany?). No management is listed and I suspect it is another form of leveraged cfd/forex retail brokerage but if it is legitimate, perhaps the management can get in touch?

(I would encourage the many folks reading elsewhere in Eschborn to ring their regulator and have a quiet word to check lest DCOEX isn’t, well, a ‘kosher’ German exchange).


Elsewhere, there are just over 2 weeks to to to the CEE Capital Markets Awards & CMU summit taking place September 15th in Warsaw. Who in the world of SME markets cannot afford to discuss CMU? Here the format is centred on the opportunities for the CEE region with top line speakers from EBRD, European Issuers and from this parish leading figures from Vienna, Zagreb, Sofia et al.Email me or follow this link HERE to sign up.


Meanwhile in Bigworld, RIP the brilliant Gene Wilder. In Young Frankenstein he was quite sublime but as Willie Wonka, he notably remarked: “Invention, my dear friends, is 93 percent perspiration, 6 percent electricity, 4 percent evaporation and 2 percent butterscotch ripple.” – Words, I do believe, many exchange tech teams live by to this day, especially with algo applications. (Note too the percentage accounting which bears a hint to Wilder’s syndication ‘genius’ from The Producers).


Public Markets

Deutsche Boerse Said Unlikely to Increase BSE Stake Before IPO

DB1 is unlikely to increase its stake in BSE Ltd. before the Indian stock exchange holds its IPO next year

PLY: Quite understandable given the circumstances but at the same time, given the low likelihood of the DB1-LSE deal actually passing antitrust, DB1 may yet rue being too busy to increase their stake from 5% to 15%. Gives a more open goal to fellow 5% holder SGX…

SGX Advisory Group Gives Nod To Dual-Class Shares

PLY: I think this is definitively regressive for SGX, albeit one can understand the opportunism of their move given that HKEx stays above the fray in these unfortunate manipulations of shareholder interest.

Congresswoman Presses Regulators on Volcker Rule Data
New York Times

PLY: Democratic Congresswoman makes interesting request for data to see if Dodd Frank works, 2 years before and 2 years after. I sincerely hope this is made public so that data mining boffins with an understanding of markets such as Prof Craig Pirrong or the CMCRC in Australia can study this in detail.

Urbana Corporation – Notice of Intention to Purchase Shares
Marketwired (press release)

PLY: Urbana launches buy back of TMX listed stock. Interesting because their asset list of course includes many leading exchanges.


Private Markets

Demise of Direct Match Shows Bank Death-Grip On Treasury Market

PLY: Excellent report by Matthew Leising & John Detrixhe. The banker stranglehold on much of market structure is in desperate need of a revamp and unless or until the blob is willing to take this on, we will have an ongoing problem of market structure being strangled by legacy institutions (oh and let’s not forget the irony of their desperation for the ill-considered, impossible dream of open access to CCP!)

NB To think people worry about Trayport – ICE!


Special Section: FTI, NSEL, India at the Crossroads

PLY: FTIL and MCX flat, with a flurry of reportage:

NSEL: Default Lies In The Courts
Economic Times (blog)

PLY: A rather damning blog… albeit I am not quite sure who was regulating NSEL, wasn’t that part of the problem?

NSEL Investors & Entities Receive Tax Notices

PLY: An ironic further body blow for creditors, the tax offices demanding details of proof of funds, that many have lost in NSEL…

NSEL – A Lawyer Writes
The Times Group

Yathuri Associates – One Of The Defaulters In NSEL
Modern Indian Economy

Since the National Spot Exchange Limited crisis came into light the parent company FTIL is taking up blame. But the defaulters who are actually responsible for all the money laundering are roaming scot-free.



Japan Exchange Paper: Distributed Ledger Technology


Career Paths

Mr Kwa Chong Seng will succeed Mr Chew Choon Seng as Chairman of the Board of SGX.

Mr Chew will retire at the conclusion of SGX’s AGM 22 September 2016, and is not standing for re-election. He joined the Board in December 2004 and has been the Chairman since January 2011.

Mr Kwa was elected to the Board in September 2012. He was appointed the Lead Independent Director in December 2013, and has been the Chairman of both the Nominating & Governance and the Remuneration & Staff Development Committees since September 2013.

PLY: All the best to both gentlemen. Like so many exchanges, SGX faces incredible challenges laced with remarkable opportunities.



How Bloomberg’s ‘Expose’ On LendingClub Is Wrong
Seeking Alpha

PLY: Rumbling on from  EI yesterday.


Other stories

Hillary Clinton’s Ethical Problems
Washington Times

PLY: Back to those classic trading records when Hillary Clinton was able to somehow deposit 1000 dollars and trade 12 contracts – something you would have thought might have interested the NFA at the time. Fortunately the trades were allowed to take place, as her progress to making $100,000 remains legendary – something even her close cohort George Soros must be jealous of as a track record.

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