DECEMBER 15 2016

elb2In Today’s Exchange Invest

ICE will make a (modest) exchange acquisition this year after all, buys NSE from its impending death sentence. BSE on roadshow, NSE to deliver IPO papers by December 20.

And there’s (much) more, enjoy the scroll:

Events

It was good to attend the HugeThing FinTech demo day yesterday in Warsaw where there were several excellent pitches.

In BigWorld

The Christmas specials are in for Pokemon Go. Pikachu in a santa hat looks like a desperate move imho but when it comes to desperate, let’s not forget about Central Banks. It’s fascinating to see that most elusive character of all may not be available on Pokemon Go but it was reborn last night at the FOMC meeting: Meet Yieldcurvechan! For traders who have been in markets less than a decade (perhaps longer), it may seem remarkable to reflect that interest rates used to go up all the time in past generations.

That whole show got vaguely back on the road last night…and that’s bound to add sizzle to the bottom line of exchanges as we power up for a fascinating volatility-driven 2017 as the Trump Presidency takes the world in a whole new deregulatory direction. Exciting times.

Public Markets

ICE Buys NSE
Atlanta Journal Constitution
NYSE Deal for National Stock Exchange May Fuel New Trading Approaches
Wall Street Journal

PLY: Phew it was almost looking like a whole calendar year could go by without ICE buying an exchange but as the year is on the wane, they sweep in for a highly sensible licence acquisition.

Recommended All-Share Merger Between DB1 & LSE
MondoVisione
EU Watchdog Homes In On Derivatives Clearing in DB1-LSE’s Deal
Telegraph.co.uk

PLY: If it’s a pinpoint narrow accuracy to say a resounding no, that’s good, if a lot of other plausible monopoly issues have simply been thrown away without resolution requirement then we will have to question the sagacity of the EU’s antitrust activities.

ESMA Recognises ICE Clear US Inc. As Third-Country CCP Under EMIR
MondoVisione

BVB Shareholders Approve In Principle The Merger With SIBEX
zfenglish.com

Bucharest Stock Exchange (BVB) shareholders on Wednesday approved in principle the merger with SIBEX-Sibiu Stock Exchange.

PLY: A marginal waste of time and money which benefits nobody but helps bury a rather sorry period of feudalism in the activities of certain parties within the broadly stagnant Romanian capital markets structure (which, having been propped up by QE is surely now hugely at risk of vast revaluation).

Bats Europe Slows Down & Joins The Block Party
Financial News (subscription)

… launched in partnership with US-based Bids Trading dedicated to matching the chunkier orders favoured by institutional investors such as Norges.

CMC Markets Will NOT Leave UK, Contrary To Erroneous Reports
FinanceFeeds (blog)

PLY: Odd how that story got about but logical that they are not leaving as it appeared bereft of coherent rationale as I noted yesterday.

Private Markets

NSE to File For IPO by Dec 20
Hindu Business Line

BSE Begins IPO Road Show
Business Standard

China Clears Key Hurdle To Buy Chicago Stock Exchange
CNNMoney

LSE-backed Curve ‘continually’ Building Volume Since Launch
Financial News (subscription)

They currently account for about 15% of volumes, with the bulk generated by professional trading groups, market makers and proprietary traders.

PLY: Nothing very coherent so far, neither meaningfully alive nor dead – it’s really far too early days to opine on Curve but sadly a short termist news cycle pushes to see market success as a low latency event.

IDX Allows Greater Price Swings With Reintroduction Of Old Rule
Jakarta Post

Special Section: FTI, NSEL, India at the Crossroads

No news today.

Technology

Korean Blockchain Service Platform Receives State-Authorized Certification
CryptoCoinsNews

Coinstack’s most prominent implementation, thus far, is its adoption by South Korea’s sole securities exchange operator, the Korea Exchange (KRX).

Cobalt DL Secures Citi As An Investor And A Launch Client For Their Post-Trade FX Solution
MondoVisione

Products

London Outrun By Bermuda On Catastrophe Bonds
Financial Times

CCTV Cameras To Be Set Up In War On Coffee Thieves
Business Daily (press release) (blog)

PLY: Concerns in and around the Nairobi Coffee Exchange.

Indexes

Thomson Reuters Expands Index Series With Western Eurozone Mid & Small Cap Total Return Index
MondoVisione

Career Paths

PLY: DB1 is trying to bring its communications team back to the standards previously held all those years ago by Max Worcester’s crack PR paratroopers. Thus longstanding (non-PR) staffer Kai Fischer is to become MD Group Communications, and Martin Halusa joins DB1 to become press officer of Deutsche Börse AG and thus also Head of Department of Media Relations/Newsroom, all with effect from 1 January 2017.

Given that DB1 IR, media relations and marketing are all somewhat dysfunctional, there clearly needs to be a massive upheaval and Mr Fischer may have the process knowledge and understanding to deliver a coherent function where DB1 is currently a shambles (and that is putting it politely). Naturally the worry will remain that his true role is just to provide another sheen of lipstick to provide a veneer covering the myopic investment bank short-termism which appears to be descending upon DB1’s operations.

In other news, I am delighted to see that: Kay Swinburne has been Confirmed As Co-Rapporteur Of the CCP Recovery and Resolution dossier. Whereas the EU likes to see itself as a massive multinational body striding purposefully into history, the current petulant parochial behaviour around EuroParl and elsewhere within the EU, often refusing to sanction British appointees despite their clear knowledge and value add to the ‘organisation’ only further demeans the EU itself and so it is good that some common sense has finally come through with Kay retaining at least a co-rapporteur position.

The Polish Financial Supervision Authority has approved Pawel Ostrowski As President Of The Management Board Of TGE and he looks to be safely in a job at least through Christmas, as the next GPW EGM isn’t until early in the New Year… (Actually given the next EGM is apparently targeted at the CEO of GPW itself, he is probably entirely safe but in the crazy world of Poland’s New Communism, who knows…).

Finally, Cobalt DL has appointed the former CEO of MTF NLX Charlotte Crosswell as a strategic advisor, I wish her well as she rebuilds her portfolio of activities after her latest NASDAQ term.

Crowdfunding

No major news today.

Other Stories

ASIC Releases World-First Licensing Exemption For FinTech Businesses
MondoVisione

Good to see a new lease of life for NSE US and all in another fascinating day for parish news.

Have a good one.

Patrick

Patrick L Young
Executive Director DV Advisors

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