August 31 2016

elb2Thanks for the feedback on DCOEX (original comment), the comfort level amongst parishioners for this Eschborn-based exchange is it seems, as near to zero as makes no difference. Interesting – the hinterland of rogue exchanges, DCOEX is not alone…


It’s going to be a busy quarter for events and I will be speaking on a broad axis all the way from Burgenstock to Stuttgart (November 17th, MIFID Congress). First up is Warsaw:

Anybody interested in CMU or the achievements of CEE listed companies will need to attend the the 2nd CEE Capital Markets Awards & Inaugural CMU Summit taking place September 15th in Warsaw. The inaugural CMU summit features 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, there is nothing funny about the unhinged approach to taxation which now ranges from FATCA to equally fatuous concepts such as the EU’s overtly protectionist manoeuvring against a longstanding FDI in Ireland, Apple Corp. The tenuous rationale for corporation tax is dissolving in the digital world, albeit the nation states, and worse still, the entirely outmoded supranational blob of the EU, are desperate to destroy enterprise with a one size fits all high tax rate. The EU news release is here: European Commission – State Aid: Ireland Gave Illegal Tax Benefits To Apple Worth Up To €13 Billion while Apple eloquently notes their vexation in this open letter from CEO Tim Cook. Naturally the EU has further fuelled its own demise with this latest deranged power grab which threatens the global trading system.


Public Markets

Bats Offers Up to $400000 Rebate to Traders Who Lift ETF Volume

PLY: BATS continues to push the ETF war moving from listings to trading…

Winners From Shenzhen-Hong Kong Stock Connect

PLY: Useful report from Barrons; 2 points not highlighted last week:

“1. Abolition of the aggregate quota, though daily quotas would still be imposed on both SZ-HK and SH-HK programs, and
2. Permitting ETFs to be traded through the Stock Connect.”

If Singapore Wants A Facebook, Dual-Class Shares Aren’t Enough
PLY: Good article on achieving upside but entirely failing to note the huge potential damage from dodgy dual class manipulations. Not getting the next Facebook is one thing but risking the hard worn reputation of SGX and Singapore Inc is entirely another!

SGX’s Baltic Exchange Bid Seeks A New Path To Growth
Euromoney magazine

PLY: Essentialy argues the Baltic is a scaled down variant on the HKEX-LME play.

Nasdaq Dubai Futures: A Bold Venture
The National

PLY: Launching futures on NASDAQ Dubai as the UAE embraces more ETD.


Private Markets

Chicago Stock Exchange Targets Latency Arbitrage With Speed Bump

“We applaud CHX for this important innovation that will slow down traders intent only on picking off stale passive quotes and enable market making firms like Virtu to provide more liquidity,” Virtu Financial Inc. CEO Doug Cifu said. “This change will benefit institutional investors.”
PLY: The Chinese owned CHX replicates the IEX speed bump.

Kenya Capital Markets: Interview with Nairobi Securities Exchange

PLY: Conversation with CEO Geoffrey Odundo.

Flash Crashes, ETFs & An Arbitrage Trader’s Dream

PLY: Another thoughtful column from Roger Aitken.

Power Trading Helps Industry Reduce Costs
Times of India

Only 10% of power consumed in India is being bought off the exchange. More than 90% of power is still being bought from state distributors.

IDX To Hold Incubator Program For Startups
Jakarta Post

The Indonesian Stock Exchange (IDX) will organize a business incubator program to help the country’s startups develop.


Special Section: FTI, NSEL, India at the Crossroads

FTIL and MCX flat as market digests the various tax notices from yesterday etc.



CurveGlobal To Kick Off Tech Testing
FOW magazine

Sebi Asks Commexes To Disseminate Derivatives Prices Via SMS

Markets regulator Sebi Tuesday asked commodity exchanges to offer price dissemination facility to subscribers through SMS daily from September 29th.

PLY: Good idea, I am surprised the exchanges have not already been doing so, strikes me as a great way to get to the farmers in the fields.

How Bitcoin Was Brought Down By Its Own Potential — And The Banks

Welcome to today’s Bitcoin—a phenomenon so internally focused that the best that can be said about Bitcoin right now is that it still exists.




Eris Bows Streaming Prices for 3-, 4-Year Contracts

Swap futures market Eris Exchange will begin displaying firm streaming quotes on three-year and four-year tenors for its Primary Standards futures

Sebi Issues Advisory To Investors: ‘Stock Gaming Sites Not Endorsed By Us’
The Indian Express

The Securities and Exchange Board of India cautioned investors against … offering stock trading games based on live feeds from the NSE and BSE

PLY: Elsewhere I note that Malta’s gaming regulator is looking at skills based rating for participants in similar games…



Career Paths

Meet The ASX CFO

Interview with Ramy Aziz.

KTH Royal Institute of Technology Presents Award To Cinnober CEO

PLY: Plaudits to Veronica Augustsson for her achievements as Cinnober’s CEO, she has been named Alumna of the Year 2016 by KTH Royal Institute of Technology in Stockholm. A brilliant role model for women in technology and the top tier of management – well done Veronica.

Metropolitan Stock Exchange of India – AVP – Corporate Finance & Strategy



Other stories

European CSD Association Annual Factbook Published 

Is Chicago Really Broke?

PLY: For those who think economic fruit loops only exist in that bastion of regressive socialism, Europe; Bernie Sanders’ wake up call leads to more talk that Chicago is rich – and indeed if the blob loots the CME, FTT all the transactions et al there will be more money for the unionised disaster area of public service. At the same time, there may also be a lot less to tax the following financial year…when everybody suddenly realises the delights of, say, Detroit.

Yintech: A Growth Play On China’s Spot CommodityTrading Markets
Seeking Alpha

Yintech recently acquired its closest competitor, Gold Master, who accounted for 14.9% of trading volume on the Shanghai Gold Exchange and holds about 4% of the Chinese spot metals trading services segment…

PLY: Interesting profile of another of those billion dollar Chinese companies most folks have never heard of (myself included).

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