DECEMBER 16 2016

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elb2Today marks the 900th issue of Exchange Invest – a neat landmark to hit just before the festive season. This special edition is generously sponsored by our original commercial supporter in this venture, Cinnober.

My thanks to Cinnober and all the other sponsors of Exchange Invest over the years (as well as various subscribers as individuals and corporates), who have helped ease the cost of creating this unique venue where exchanges can be assessed and praised, as well as, where merited, judged objectively on their merits. It’s a fascinating journey and I look forward to issue 1000 which will occur next year.

In the interim of course, the next 100 editions will share some of the finest marque designations in automotive history. Don’t be surprised if I reminder you of the better ones on the way through – you have been warned.

In Today’s Exchange Invest

Vienna scoops up 5% of Prague SE to be within a wafer’s width of 100% ownership. Mixed NSE messages, as ASX CTO resigns for personal reasons while LME has no comment on the fraud case swirling around their offices but will keep exchange fees static while some clearing fees reduce.

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

Events

I think we’re done for 2016. Now what does 2017 have in store?

In BigWorld

Cuba has offered to repay a $250 million cold war loan to Czechoslovakia in Cuban rum.

Even by the standards of recent QE policy amongst the western central banks, this amounts to taking liquidity into a whole new plane.

Public Markets

LME Says No Cuts To Main Trading Fees In 2017 Despite Criticism
Reuters UK

LME clearing house, LME Clear, will cut fees by two-thirds for its compression services and will halve charges for those using warrants as collateral.

PLY: Looks like LME Clear powered by Cinnober’s real-time clearing software is making great efficiency for markets and delivering cost reductions which will be welcomed by all parties – that is great progress and Trevor Spanner’s implementation of the LME Clear project was a turning point in the fortunes of LME as a business, bringing a transparency and trust that has enhanced the marketplace.

On the macro, alas, LME is still unable to clarify just whose money has been allegedly lost in the pending fraud case, claiming they do not wish to affect matters sub judice.

However, without having to touch the specifics of the court cases, parishioners continue to complain that it would only seem sensible to have had a clearing of the air around the issue by now – was it for instance client money which went missing? What safeguards are now in place to stop further funds floating out of the LME? Those sorts of questions – the kinds of things which give folks confidence.

It’s a pity the UK FCA don’t appear to have much desire to push this in public either.

Call me old fashioned but this unfortunate odour of fraud hanging over a regulated entity always harms the parish image and it is increasingly clear LME are trying to avoid making any comment whatsoever – which is very old-school analogue metals market but not good behaviour for a modern, highly regulated (apparently), business which is itself a subsidiary of a major publicly listed company.

ASX CTO Tim Thurman To Depart
The Australian Financial Review

PLY: More on Tim Thurman’s departure in Career Paths below, I wish him every future success and a safe move back to Canada.

ASX Says Options-Trading Issue Won’t Be Fixed Until Friday
Bloomberg
Private Markets

NSE Will List Only After Allegations Of Unfair Access Are Resolved: Ashok Chawla
Livemint

PLY: Chairman Chawla makes calm rational statements – NSE needs a CEO it also needs to solve these HFT accusations as they look a touch unfortunate…

Deloitte Audit Finds Lapses In NSE Algo System
Business Standard

PLY: For the poster child of Indian digital markets, the pioneering NSE, these accusations must make for at least excruciating loss of face.

CEESEG Increases Stake In Prague Stock Exchange To 99.4%
Wiener Börse

PLY: The holding company CEESEG Aktiengesellschaft (CEESEG) announced the acquisition of a 6.560% stake in the Prague Stock Exchange (PSE) from Moneta Bank for a consideration of CZK 135 million (USD 5 million) valuing Prague SX somewhere just north of $77 million US. Good deal.

BSE-Promoted CDSL Plans To File Papers For IPO Soon
Economic Times

Will become the first listed Indian depository.

Four Strategic Investors File Bids For PSX Stake
The Express Tribune

PLY: (This PSX is Pakistan – keep up at the back): 4 bidders, including the Chinese group mentioned previously – who apparently asked for some concessions…

Muhith Seeks Specific Proposal For Capital Market Development
Business News 24 BD

PLY: Bangladeshi Finance Minister Muhith seeks specific proposal for capital market development.

Special Section: FTI, NSEL, India at the Crossroads

Sebi Sends ‘Not Fit and Proper’ Notice To Five Brokers In Rs 5600-cr NSEL Scam
Business Standard

Technology

DB1 and BSE India Extend Market Data Partnership To New International Exchange
LeapRate

PLY: Entirely understandable given the 5% DB1 stake in BSE.

XBRL EU SBR Working Group
XBRL US Forms Blockchain Working Group
Mondovisione

Products

South Korea To Create ‘Data Exchange’ For AI Age
ZDNet

South Korea will create laws for a data exchange where people can buy and sell data for fair market prices, the country’s IT ministry has said.

PLY: Brilliant.

New Futures Contracts – BITCOIN and BRENT
Ux.ua

On December 19, 2016 Ukrainian Exchange will launch two new futures contracts – on index of Bitcoin and on price of Brent crude oil.

PLY: Good to hear the UX is alive and kicking after some traumatic times in the macro political and shareholder sphere in recent years.

Indexes

Athens Exchange Group: Changes In The Composition Of ATHEX Indices
MondoVisione

Exchanges Hold Steady Going Into Christmas And New Year Holidays, CME Group Best Performer In November, FTSE Mondo Visione Exchanges Index Up By 2.1% For Month, 7.6 % Year-To-Date
MondoVisione

GPW Publishes The New 10th RESPECT Index Portfolio
MondoVisone

The Warsaw Stock Exchange (GPW) has announced the portfolio of RESPECT Index, the social responsibility index, on 14 December 2016…

PLY: Given the inclusion of utterly inept monoliths such as Energa, this flawed process should be renamed the “DISRespect Index” as it runs the risk of being little more than a corporate whitewashing of some rather unacceptably inept businesses. Presumably Monday we can expect an exciting tractor production index update from the GPW…

Career Paths

PLY: Tim Thurman is stepping down as TT ASX CTO and will return to Canada in March or April having first overseen the installation of the new derivatives system (Cinnober) due in February. It’s difficult to know precisely what to make of this albeit the recent ASX tech meltdown and some delays in implementation of projects suggested some issues while at the same time, ASX has been, from the CEO’s office, rather evangelical to the point of almost, er, ‘distributing the shark’ in the minds of some, about Blockchain. Of course Tim Thurman was not seen in the forefront of this manoeuvring which was of course originally inspired by the former CEO Elmer Funke Kupper who clearly did resign in disgrace earlier this year.

Following Lourdes Centeno standing down, Gabriela Figueiredo Dias, of the Comissão do mercado de valores mobiliários (CMVM) of Portugal, has been elected to complete her term (until end May 2018) as a member of the Management Board of ESMA.

Crowdfunding

No major news today.

Other Stories

ESMA Updates MiFID II Q&A On Investor Protection
ESMA

ESMA Consults On Extending Aggregated Trade Repository Data
ESMA

India to Establish BlockChain Technology Institute to Curb Financial Fraud
Sputnik International

ESMA Publishes Its CRA Market Share Calculation
ESMA

Last weekend before the big present one for the folks on one side of the distributed ledger of beliefs… Whatever your present outlook on T+9 settlement, have fun.

Patrick

Patrick L Young
Executive Director DV Advisors

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