December 10 2015

elb2NASDAQ gets an upgrade, Michael Spencer reminds us of the bounty available for renaming ICAP and LSE considers an Indian present in GIFT City… and there’s more…

Last evening there was a great line up at the European Issuers / FESE 3rd SME Awards dinner. Congratulations to all the winners, whose stocks are listed on Euronext, London, Oslo & Warsaw. The latter exchange deserves special mention for fielding 3 nominees once again this year against a healthy background of 30 IPOs. Alumetal had the grooviest intro video while Selvita was the Warsaw winner on the night (Euronext’s Erytech was another strong bio-victor). I was disappointed that LiveChat, a truly excellent example of what European tech can do, was overlooked for the Most Internationally Successful newcomer despite their global footprint of customers. That said, all the nominees deserve their plaudits.

FESE President Deirdre Somers was on scintillating form, passionately outlining what the EU must do to avoid being little more than a background to future Ben Stiller “Night of the Museum” sequels. – Disappointingly, the scripted remarks from the Commission representative were essentially the same speech we have now heard for three years in a row. It wasn’t that relevant then and is not becoming more accurate on repeated renderings…

Huge plaudits to the European Issuers team and the FESE team led by Rainer Riess for coordinating another excellent showcase of European SME excellence, thanks for the invitation.

Public Markets

INTL FCStone Fiscal Q4 &  2015 Annual Results

GLOBE NEWSWIRE

Fiscal Year Ended September 30: vs 2014: net operating revenues $431.8 mln, up 34%, net income $55.7 mln, up 189%.

 

Playtech Finally Closes Doors On Plans To Buy Ava Trade

Calvin Ayre

Playtech is withdrawing its application to buy Ava Trade in light of the opposition from the Central Bank of Ireland.

PLY: Of course, Playtech also walked away from a deal to buy Plus 500 the other week.  QV Premium: Exchange Deals Brief.

 

LSE Mulls Trading Platform At GIFT City

Times of India

LSE – NSE MoU For Joint Research Centre

The Economic Times

National SE (NSE) entered into a pact with LSE to set up a joint research centre as well as explore opportunities for collaboration in the GIFT City at Gujarat.  The MOU would look into further collaboration on indexes and debt market development.

PLY: An interesting step for LSE, NSE and indeed the GIFT City financial centre project which appears to have more momentum already than Mumbai despite the latter endeavouring to codify its international financial centre for almost a decade.

 

India – Foreign Exchanges May Get To Own 15% In Domestic Exchanges

The Economic Times

The shareholding cap for foreign bourses in domestic stock exchanges may rise to 15% from the current 5%. The finance ministry is preparing to ease investment norms for foreign players in stock exchanges and an announcement is likely in February during the budget session.

PLY: Some progress…

 

CME Loses Ground To LCH.Clearnet In Swaps Clearing Battle (subscription)

Joe Rennison – Financial Times

CME has seen its market share of investors’ cleared US IRS activity fall to its lowest level to date, according to data from Clarus FT, an industry data compiler.

PLY: Fascinating. Just as many regulators are worried about genetic engineering, between them the TransAtlantic regulators appear to have successfully managed to take identical DNA and split it into apples and oranges.

 

IIROC Completes Comprehensive Study Of HFT

MondoVisione

IIROC: HFT Helps Canadian Markets

Brian Louis – Bloomberg

IIROC says HFT has `mostly positive’ impact on stock market. Study finds speed traders boost liquidity, improve prices.

 

Sebi Asks Commodity Bourses For Detailed Monthly Report

NDTV

 

SGX “Trade with Caution” Alerts To Be More Detailed & Targeted

SGX

 

China Plans Registration-Based System For Stock Market Flotations

Reuters

China To Deregulate IPO Approvals Within Two Years (subscription)

Gabriel Wildau – Financial Times

 

Everbright Securities Files For HK Listing

Danny Leung – FinanceAsia

 

WSE Introduces New Market Practice On NewConnect

MondoVisione

 

European Council – Council Of The EU: Manipulation Of Market Benchmarks: Council Confirms Agreement With European Parliament On Tougher Rules

MondoVisione

Private Markets

Myanmar Opens Stock Exchange As Rehabilitation Continues

Moneycontrol

Yangon SE Opens (Video)

Wall Street Journal

Myanmar’s SMEs Could Be Backbone Of New Yangon SE

CNBC

Reportedly a USD 24 million investment, Yangon SE, a jv between state-owned Myanmar Economic Bank, Japan’s Daiwa Securities and JPX, opened Wednesday, although trading is expected to start in March at the earliest.

FAO: JPX owns 18.75% of YSX, while Daiwa Securities owns 30.25%.

 

Wall Street CEOs End Ties To Del. Stock Exchange Plan

Joseph N. DiStefano – Philly

Richard Grasso, former NYSE CEO, and Joseph Grano, former CEO of UBS Financial Services, were listed as “members and affiliates of The Delaware Board of Trade” (DBOT) in this July press release about New Castle County’s plan to lend its name to a $15 million revenue bond for the exchange to raise capital.

But NYSE’s Grasso “never committed, and last week informed them he would not be involved,” Grasso’s spokesman and longtime lieutenant, Joseph Zito, told me. UBS’s Grano “had intended to serve as an advisor, but has been very busy with other commitments and was not happy with recent developments at the DBOT. He informed management on Dec. 8 he would not be involved moving forward,” Zito added.

Last week, County Executive Thomas Gordon said he had “moved a $3 million investment” from the county’s park maintenance endowment fund into private DBOT notes paying 6% annual interest, to be backed by a license on software used to run the as-yet unopened DBOT market.

Grano informed one of DBOT’s organizers, former Philadelphia SE official John Wallace, that he was no longer willing to serve as an advisor on Tuesday, Zito said. Grasso informed Wallace and another DBOT organizer, former Cincinnati SE official Richard “Nick” Niehoff, of his decision not to get involved by email last week.

PLY: Tricky. Plans can change but the phrase “not happy with recent developments” will worry some, even if it may just mean a simple strategic disagreement.

 

Saudi SE (Tadawul) & Algiers SE Sign Cooperation Agreement

MondoVisione

 

Serbian, Croatian Spot Power Exchange Starts Delayed To 2016

Maja Zuvela – Reuters

Power exchanges in Serbia and Croatia have delayed the launch of their day-ahead power markets until early 2016 to give participants more time to prepare and iron out administrative details. The Serbian exchange was originally expected to start in Q3 2015 and the Croatian bourse had initially sought to launch operations in December 2015. Bulgaria plans to launch a day-ahead exchange in March.

Dividend News

CME annual variable dividend – $2.90, payable on January 12, 2016, record date December 28, 2015.

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX +1.5%, FTIL flat.

Technology

Oslo Børs VPS: Change In Completion Date For New Core Systems For VPS

MondoVisione

In Q4 2014 VPS started a project to replace its core systems for securities registration and settlement. The project was expected to take until Q2 2017. The project is experiencing delays. Further planning is now being carried out based on a target for completion in April 2018. An update will be provided at the time of the interim report for Q4 2015.

 

European Council – Council Of The EU: First EU-Wide Rules To Improve Cybersecurity: Deal With European Parliament

MondoVisione

Products

SGX Launches Asia Corporate Bond Trading Platform

Reuters

SGX launched (press release) SGX Bond Pro, a trading platform designed to connect buyers and sellers of Asian corporate bonds.

Describing it as the first OTC Asian bonds trading venue, SGX said the platform would seek to provide enhanced protection for institutional investors and encourage larger trade sizes. QV Premium: The Bond Platforms Rush Brief – Part 2.

 

SGX Successfully Launched Dated Brent Swaps & Futures

Platts

 

DGCX To Launch Chinese Yuan Futures In December 2015

MondoVisione

 

CISE Introduces SPAC Listing Product

ILO

Channel Islands Securities Exchange (CISE) will introduce a new chapter to the Listing Rules in order to permit special purpose acquisition companies (SPACs) or cash shells to list.

SPACs are used to raise money via an IPO in order to search the market for a specific acquisition which fits within the investment strategy set out in the prospectus for the SPAC.

Indexes

Taiwan, Korea Bourses Plan To Launch Chip Index Next Year

Reuters

Taiwan SE and KRX plan to launch a semiconductor index next year.

Career Paths

Liquidnet Canada CEO, Robert Young, is stepping down at the end of 2015.

PLY: After 10 highly productive years, Robert has chosen to leave the Liquidnet enterprise having helped build the business first as global COO and latterly in developing Liquidnet’s highly successful Canadian franchise, amongst other projects. I wish Robert every success in his future endeavours and am sure his diverse skills set will be in considerable demand in both Toronto and New York…

HK SFC approved Trevor Spanner’s appointment as COO of HKEx while HKEx announced that BoE has no objection to the appointments of Adrian Farnham and Iain Greig as CEO & COO respectively of LME Clear.

BGC Partners named Yann Le Gallais, MD and Head of BGC’s Swiss offices, based in Nyon.  He reports to Jean Pierre Aubin, Executive MD, Global Head of Listed Products and GM, Continental Europe.

FOW reports that HKEx is set to part ways with its Head of Client & Business Development, Sharon Ang.

Financial Calendar

10.12. – Record date CME $0.50 Q4 2015 dividend

11.12. – ITG $0.07 quarterly dividend payment

New! 16.12. – CFTC to Hold an Open Commission Meeting (press release)

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

Analyst Notes

S&P’s Ratings Services raised its issuer credit and senior unsecured debt ratings on Nasdaq to ‘BBB’ from ‘BBB-‘. The outlook on the issuer credit rating is stable.

RBC Capital Began Coverage On ICE – “Sector Perform” Rating, $266.00 Price Target

TMX Downgraded By TD Securities From “Buy” To “Hold”

Nomura Upgraded Betfair To “Neutral” – GBX 3,450 Price Objective, Up From GBX 2,094

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

Other stories

ICAP’s Charity Day: Duke & Duchess of Cambridge Join Brokers On Trading Floor

Daily Telegraph

Royal couple have a go at closing deals over the phone as they take part in ICAP’s 23rd annual charity day also attended by Samantha Cameron.

 

ICAP’s Spencer Offers Case Of Claret Wine For New Company Name

John Detrixhe & Guy Johnson – Bloomberg

“Anybody who comes with a name for the new ICAP, a case of very fine claret,” ICAP’s CEO Spencer said in a Bloomberg Television interview during the firm’s Charity Day. “E-mail me, michael.spencer@icap.com, with your ideas. If you win, a case of very fine claret.”

 

Nasdaq Launches International Designation to Offer Non-U.S. Companies Increased Visibility to U.S. Investment Community

Nasdaq

 

Now Traders Get to Tell the Jury: Look, We’re All Lying

Matt Robinson, Chris Dolmetsch & Greg Farrell – Bloomberg

 

FESE: Associations Support ‘Increased Equity Market Financing’

MondoVisione

PLY: Echoing the message from the excellent SME Awards dinner last night at the Albert Hall, Brussels. A great evening, a super showcase for European SME excellence and a fabulous roster of nominees and winners. Once again, well done one and all…

 

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