DECEMBER 21 2016

Issue 903: In Porsche notation, the type number of an experimental 3 speed torque converter automatic gearbox. Yeah, I agree, exciting stuff.

I spoke recently at the CEEImpact giving a keynote which ought to be online in a few days. Meanwhile, here’s the PLY: A Child Is Born video, enjoy the first 38 seconds…
In Today’s Exchange Invest

 

‘Single point of failure’ ASX carpeted by ASIC while former LME accountant pleads guilty to some charges. DB1-LSE prevarication continues while BGC completes acquisition of Sunrise.

 

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

Events

FYI, the “when a child is born” video speech was entirely spontaneous – if your event needs similar insights, energy and incisive chairing or considered keynotes, reply to this email and let’s discuss opportunities to speak in 2017.
In BigWorld

 

I spoke recently at the CEEImpact giving a keynote which ought to be online in a few days. Meanwhile, here’s the PLY: A Child Is Born video, enjoy at least the first 38 seconds…

Public Markets

 

Former LME Accountant Pleads Guilty To Credit Card Fraud
Reuters UK

PLY: Trial date set for April 18, 2017 on 2 contested charges with Annmarie Norris entering a guilty plea to credit card fraud. Her husband, Michael Norris saw his charges dismissed.

This sorry tale remains a thorn in the ability to view LME with confidence. Management are seeking to hide behind the cloak of sub judice proceedings but once again that does not help convince the parish that LME have now got a grip on what the problem may have been, nor how such problems are now being fixed and, indeed, who might be responsible for what was apparently a systematic multi-year fraud which survived detection through internal accounting and external audit.

If LME try to hang on in grim silence for another 4 months this will only exacerbate parishioner frustration at what is seen by many as a clear LME management failure. Sadly the silence of hiding behind a sub judice fig leaf only increases the pressure while diminishing the standing of the marketplace.

Deutsche Börse, LSE Merger May Hinge on Location
Wall Street Journal
London Stock Exchange Group: Update On Potential Sale Of LCH SA
LCH.Clearnet Group: Update On Potential Sale Of LCH SA
Deutsche Börse: Update On Potential Sale Of LCH.Clearnet SA

PLY: Given a spirit of disingenuity felt by many at DB1-LSE’s various position shifts as they have attempted to sell their ‘merger of equal desperation,’ there are considerable suspicions that the baby / bath water HQ repo may be transacted if the parties can get anywhere close to gaining permission – the inference being that Frankfurt would have to be HQ for their regulators to feel comfortable. Then again this presumes that the EU antitrust body has spectacularly lost its head and will permit an egregiously anti-competitive monopoly.

Stock Exchange Outage Shows ASX Is ‘Single Point of Failure’
Bloomberg
ASIC Launches A Wider Investigation After ASX Market Outage
Business Insider Australia
Report on ASX September19 Market Outage
ASIC

PLY: A brutal indictment of ASX with more investigation to come. Or as ASIC Commissioner Cathie Armour notes:

“Well-functioning financial market infrastructure is critical to the integrity and reputation of the Australian equity market and the trust and confidence investors have in it.”

Ouch!

The Monopoly Aspirations Of Exchanges & CFD rulings: A Cartel On The Horizon?
FinanceFeeds (blog)

PLY: Interesting read. I don’t agree with it all but it’s still worth a perusal.

Moscow Exchange Group”s Reorganisation Completed
MondoVisione

On 19 December 2016, Moscow Exchange Group completed an internal reorganization in which CJSC MICEX Stock Exchange and MB Technologies, wholly-owned subsidiaries of Moscow Exchange, were merged with the parent company. Moscow Exchange has become a legal successor of all MB Technologies”s rights and obligations from the merger date.

The restructuring aims to optimise the Group’s corporate structure, streamline customer relationships with Group companies and reduce costs both for customers and for the Exchange.

BGC Partners Completes Acquisition of Sunrise Brokers Group
Finance Magnates

SGX Shrinks As Value Of IPOs Is Outstripped By Value Of Delistings
The Business Times

PLY: It’s a pity to see the SGX declining in this fashion.

Private Markets
EUrope’s Looming Dark Pool Crackdown
Bloomberg

PLY: A phenomenally contrived and useless means to approach block trading becomes law for 2017. The interesting stats in the article concern Turquoise where Robert Barnes has done a stunning job with his block trading facility while it seems Liquidnet’s net deal size has been in decline in Europe compared to a couple of years back while fascinatingly ITG claims the biggest block size of all in Europe (900K Euros – a bit over $1 million) compared to 619K Euros for Liquidnet in November.

BSE Tells Sebi Will Meet Broker Criteria For Gift City Launch
Business Standard

Here’s What May Have Led To Chitra Ramkrishna’s Exit From NSE
Economic Times

PLY: Situation still unclear as to the precise reasons with various possibilities.

Special Section: FTI, NSEL, India at the Crossroads
No news overnight.

 

 

 

Technology

 

SocGen Computer Glitch Said to Ripple Through Bond Derivatives
Bloomberg

Products

 

EBA Recommends A Harmonised EU-Wide Framework For Covered Bonds
Indexes

Indexes
SET Launches “sSET Index” On January 4, 2017
MondoVisione
Career Paths

 

Financial Tech – Change in Directorate: Ms. Nisha Dutt and Mr. Miten Mehta, Non-Executive Directors have resigned from the Board while full-time director Mr. Jigish Sonagara, will reduce his committment to become a Non-Executive Director. Justice Deepak Verma, former Judge – Supreme Court of India and Mrs. Chitkala Zutshi (Retd. IAS) have been appointed as additional Non-Executive Directors.

Former professional banker, David Clark has joined the board of Thomson Reuters Benchmark Services. Clark will also join the group’s Oversight Committees of two benchmarks, (the LMBA Silver Price and the WM/Reuters foreign currency benchmarks). In addition to this Reuters role, David is an acting member of the Bank of England’s (BoE) Foreign Exchange (FX) Joint Standing Committee, as well as a member of the Bank’s SONIA Advisory Committee and the ICE administered Libor and IceSwap Benchmark Oversight Committees.

Crowdfunding
P2P Lending Companies Can’t Bank On RBI Rules This Year
Economic Times

BENGALURU: Post demonetisation, peer-to-peer startups expect to see a delay in the final RBI guidelines which were expected to come by October.

Cure For Issues Facing P2P Lending Isn’t Regulation
The London Economic

The cure for the issues facing the Peer to Peer lending industry isn’t regulation, but community.

This P2P Founder Thinks 2017 Will Be A Crunch Year & firms could fail
Business Insider

 

Other Stories

 

Blockchain & The Public Sector – What Happened In 2016
OpenGov Asia

PLY: Interesting brief roundup.

Federal Court Orders Chicago Trader Igor B. Oystacher And 3Red Trading LLC To Pay $2.5 Million Penalty For Spoofing And Employment Of A Manipulative And Deceptive Device, While Trading Futures Contracts On Multiple Futures Exchanges – The Court’s Order Finds That Oystacher Entered And Canceled Orders He Never Intended To Fill
CFTC

ESMA Publishes MiFIR Q&A Regarding Data Reporting
ESMA

ESMA Publishes Updated MAR Q&A
ESMA

European Council – Council Of The European Union – Capital Markets Union: Council Confirms Deal On Prospectus Rules
EU

Rolling along it’s T+4 settlement (where “T” stands for “Turkey,” clearly).

Have a great day,

Patrick

Patrick L Young
Executive Director DV Advisors

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