December 15 2014


Declining bank industry still calling the shots in Washington. Oddly enough some say the status of Parliamentary democracy is declining too. LME latest to complain how European rules hurt growth as DGCX goes for Rand, Ruble and Won products, seeks broad regional gold benchmark. HKEx stats show “Through Train” succeeding as IEX (the power one) seeks to become latest exchange to amend or withdraw from FTIL IT contract.

There’s lots more worth a scroll in Monday’s Exchange Invest, happy reading:

Public Markets

Dimon Dials DC To Divert Derivatives Action (subscription)
Tom Braithwaite – Financial Times

Jamie Dimon, CEO of JPMorgan Chase, had phoned members of Congress to argue for the provision, which reverses a recent rule on where banks have to book their derivatives. Citigroup, which drew most of Ms Warren’s anger, had even written some of the language.

PLY: The problem is how Messrs Dimon et al have directly created a whole new realm of Wall Street versus Main Street through their high handed actions. A remote class of bankers along with an isolated caste of politicians don’t seem to have any idea of the sheer opprobrium in which banks and politicians are (rightly) held for their behaviour.

Holland Clearing House Receives EMIR Authorisation
Business Wire

The full list of the EMIR approved CCPs on our website – here.

Statistics Show Stock Connect’s Quota Usage Has Been Efficient

Total turnover values under Shanghai-Hong Kong Stock Connect have often been much larger than the quota usage, and on average Southbound trading’s daily turnover value is nearly twice the daily quota usage, according to statistics from the first four weeks of the programme.

PLY: “Through train” lives and appears to be working – despite the shrill complaints of media and others in the territory who seem eager to talk down a remarkable initiative.

India – No Proposal To Set Up New Commodity Futures Regulator, Says Govt

PLY: Notwithstanding an excellent upbeat analysis on the Indian nation from economist Liam Halligan yesterday, this story demonstrates how much work needs to be done as the usual agents of retarded reaction battle to stop risk transfer on any aspect of Indian agriculture as they reckon it adds inflation. As things stand, the paucity of futures on perishable foodstuffs is a prime example of how the Indian economy remains more a tiger in waiting than a fully fanged feline global capitalist.

Private Markets

Power Exchange India Gets Time To Comply With Net Worth Norms
The Economic Times

Providing “one last opportunity”, CERC has given power exchange PXIL time till September-end next year to comply with the minimum net worth requirement of Rs 25 crore (USD 4 mln) Power Exchange India Ltd (PXIL) — promoted by National Stock Exchange of India Ltd (NSEIL) and NCDEX — has been struggling to meet the net worth requirement.

eToro Plans UK Push After Snagging $27m From Russians & Chinese
Oscar Williams-Grut – London Evening Standard

Social trading platform eToro has just raised a hefty $27 million from Russia’s Sberbank and China’s Ping An Insurance. The raise takes eToro’s total investment to over $60 million. Last month eToro began letting users trade currency futures for the ruble and yuan.

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX is down 1% while FTIL is down 2%.


Euronext Cancels All Early Derivatives Trades, Delays Opening
Euronext – Trading Resumption Announcement

Members are advised that trading will resume as of 10.25 CET for all derivative products .
All cash markets opened normally at 09:00 CET.

Euronext Concludes HKEx Project Via OMD Platform
Forex Magnates

Euronext has completed a project with HKEx on the Orion Market Data Platform (OMD), helping leverage the derivatives market at HKEx.

Euronext press release here.
HKEx press release here.

Dhaka Stock Exchange Goes Live With New Trading Engine Powered by Nasdaq

Dhaka SE (DSE) and Nasdaq announced that the DSE has gone live with its new trading engine powered by Nasdaq’s X-stream INET technology.

IEX In Talks With FTIL For Buying Out Technology Solutions
Financial Express

Indian Energy Exchange (IEX) is in talks with its erstwhile promoter FTIL, which is in the process of exiting the bourse, for buying out the application software and other solutions used for its trading platform.

Since its inception, the leading power exchange has been using the technology provided by FTIL, which has been asked by the regulator CERC to complete sale of its entire stake by January 4.

Last month FTIL had inked a deal to offload its entire 25.64% shareholding in IEX for more than Rs 576 crore (USD 93.9 mln).

SIX Group Mulls Fintech Incubator (subscription)
Anna Irrera – Financial News

SIX Group is mulling the creation of an incubator to collaborate with technology start-ups, having already set up a new internal innovation programme this year.

FAO Bigger picture: In May CME launched a startup-focused fund called Liquidity Ventures 1 LLC. In June DB1 launched Open Innovation, a platform through which startup companies pitch ideas and receive technological and regulatory support from DB1. Check out the Q&A “Why we invited in the fintech start-ups” with Brendan Bradley, Chief Innovation Officer at Eurex, reported earlier this year.

ADX Implements Circuit Breakers
Gulf News

Abu Dhabi Securities Exchange (ADX) has started applying Circuit Breakers to temporarily stop trade for five minutes during the day when the index drops 5%.


IBA To Suspend ISDAFIX Swiss Franc (CHF) Rate

ICE announced that due to the resignation of one of the submitting banks, ICE Benchmark Administration (IBA) will suspend the ISDAFIX Swiss franc (CHF) from its portfolio of benchmarks. The last rate will be published on Friday 19 December, 2014. The CHF represents the smallest currency rate of the ISDAFIX portfolio.

DGCX Plans To Start Russian Rouble Futures Contract, Spot Gold
Siddesh Suresh Mayenkar – Gulf News

DGCX plans to start trade in the Russian rouble, South African rand and the Korean won soon as well as planning to start a spot gold contract in January, with the intention of creating a benchmark Loco Dubai price for all stakeholders in China, India, and Africa etc.

PLY: DGCX maintains its ambition.

Dhaka Exchange Set To Launch Derivatives (subscription)
Cian Burke – FOW

Dhaka SE (DSE) outlined a plan to expand into derivatives using the new trading engine based on Nasdaq’s X-stream INET technology.

China Regulator Approves Launch Of Shanghai Oil Futures

FMC Marks Up Open Interest Limit For 18 Commodities
The Hindu Business Line

In a bid to increase liquidity, FMC has raised the open interest limit for 18 commodities.

Sebi Mulls New Mechanism For Surveillance Of Debt Instruments
The Economic Times

In the wake of growing interest in debt market, capital markets regulator Sebi is considering putting in place a new mechanism for surveillance of debt instruments traded on the stock exchanges.

Career Paths

The BoD Office of Ethiopian Commodity Exchange (ECX) announced the appointment of Ermias Eshetu as CEO of the ECX effective next month.

PLY: If memory serves me correctly, the third ECX CEO in around three years since founder Eleni Gabre-Madhin stepped down.

Further to our September 30 report on his leaving ICAP, Leap Rate reports that Telecommunications provider TalkTalk Group will welcome former ICAP Finance Director Iain Torrens as he stepped down from ICAP’s board on December 12 2014, with CFO David Ireland stepping in as Interim Group Finance Director.

Financial Calendar

This week

Record date ICE $0.65 Q4 dividend
Thomson Reuters $0.33 quarterly dividend payment
CBOE $0.21 quarterly dividend payment

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

Share Notes

Interactive Brokers Chairman Earl H. Nemser sold 4,321 shares Thursday, December 11th at an average price of $28.42 (bargain $122,802.82). Mr. Nemser’s regular sales are chronicled on this specific page.

Analyst Notes

ICE Target Price Boosted By Deutsche Bank From $230.00 To $238.00 – “Hold” Rating
CME Target Price Boosted By Deutsche Bank From $96.00 To $98.00 – “Buy” Rating
NASDAQ OMX Target Price Boosted By Deutsche Bank From $49.00 To $52.00 – “Buy” Rating
CBOE Price Objective Raised By Deutsche Bank From $65.00 To $66.00 – “Hold” Rating
LSE “Neutral” Rating Reissued By HSBC – GBX 2,280 Price Objective

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

All Analysts, Banks and Brokers are welcome to contribute to this section.

Other stories

LME Chief Says European Rules Are Hitting Growth
Andrew Critchlow – Daily Telegraph

It has been a tumultuous year by any standards on global commodity markets, but for Garry Jones, CEO of LME, opportunity comes hand in hand with volatility.

This site is protected by Comment SPAM Wiper.