February 02 2016

elb2A sunny morning in Malta. Thanks to all who participated in my FinTech briefing here yesterday, and particular thanks to the JCI and Malta Enterprise for hosting the event where we discussed all manner of interesting entities and possibilities including Blockchain and much else besides…

Likely routine DoJ enquiry about ICAP-TNT deal, NASDAQ completes on Chi-X Canada, Egyptian commodity exchange inching forward…and more, happy scrolling:

Public Markets

Nasdaq Completes Acquisition of Chi-X Canada

GLOBE NEWSWIRE

Nasdaq announced the completion of its acquisition of Chi-X Canada, an ATS for TSX & TSX Venture listed securities, from Chi-X Global, having announced its intent to acquire Chi-X Canada on December 8, 2015.

QV Premium: Exchange Deals Brief.

PLY: Speedy completion, well done. Now, how many former TMX folks previously on the NASDAQ payroll can we expect to be deployed to Canada? Will former CEO now NED Tom Kloet go executive once again in Toronto?

 

Court Approves Proposed Acquisition Of Betfair By Paddy Power

Maria Nikolova – LeapRate

Shortly after the proposed merger of Paddy Power and Betfair secured the nods of approval of the UK Competition & Markets Authority (CMA), and Ireland’s equivalent CCPC, the deal was approved by a UK court. Official announcement on the legal decision – here.

QV Premium: Exchange Deals Brief.

 

Bursa Malaysia FY2015 Results

MondoVisione

  1. FY2014: PATAMI at RM198.6m ($47m), up 0.2%, operating revenue at RM487.7m ($115m), up 3.5%.

PLY: Somewhat flatlining at Bursa Malaysia, alas.

 

Tullett Says U.S. Justice Dept Seeks Details On ICAP Deal

Reuters

Tullett Prebon  said the US Department of Justice had requested additional information relating to the British IDB’s proposed acquisition of ICAP’s global hybrid voice broking and information business.

PLY: This strikes me as being as unsurprising as the risk disclosure BATS noted about Brexit (despite some scribblers trying to make that sound like a crisis yesterday).

 

More Dark Pool Investigations Under Way, Says New York’s Top Cop

Keri Geiger, Sam Mamudi & Christie Smythe – Bloomberg

PLY: Why stop now when the fatted calf so effortlessly delivers lucrative settlements and political brownie points?

‘Dark Pool’ Settlements Bring Tangled Relationships to Light (subscription)

Scott Patterson – Wall Street Journal

Should Banks Drain The Dark Pools?

Michael P Regan – Bloomberg

The latest round of penalties over “dark pools” highlights how reliant banks & exchange operators have become on business from HFT —even on platforms that promised to blunt their advantage.

There are two ways to look at the $154 million that Barclays and Credit Suisse Group paid to settle allegations that they misled clients regarding how their dark pools operated.

1) it’s peanuts compared with the big bucks that large banks have spent on mortgage settlements

2) how much do banks make on MTFs & are they worth the hassle?

PLY: Good articles & good questions – I think the future for all broker related businesses in equities may be close to a capital crunch. Brokerage fees are low, MTF competition high and the fines are alerting boards to the notion that the internalisation play may not be worth the risk…

 

Hong Kong Considering Revision Of Share Suspension Rules

Michelle Price – Reuters

Regulators are considering revising share-suspension rules as pressure grows from hedge funds and other investors to bring them in line with Western markets.

 

CDCC & NGX Receive CCP Recognition From ESMA

Canada NewsWire via COMTEX

TMX announced that both NGX and the Canadian Derivatives Clearing Corporation (CDCC), Canada’s national ETD CCP, certain OTC products & repos, have received third country CCP recognition from ESMA.

PLY: Good progress on recognition in recent weeks from the ESMA team.

 

EU Regulator Adopts Equivalence Decision For South African CCP – JSE Clear Is Globally Recognised

MondoVisione

 

CFTC Authorizes Eurex Clearing As A DCO

Mike Fox – LeapRate

Statement Of Chairman Timothy Massad On CFTC’s Decision To Grant Eurex Clearing AG Registration As A DCO

MondoVisione

 

DFM Announces All Inclusive Plan To Reinforce Innovation

MENAFN

 

Experts Divided Over Self-Listing

Ashley Coutinho – Business Standard

PLY: India’s rather parochial experts against those with a more global view reflecting international best practice. Clearly, the worrying factor is the lack of trust in Indian institutions. That is harsh on NSE but unsurprising in an India riven by various crises where the blob is apparently unable to resolve them (qv NSEL in this parish alone).

 

ESMA Updates Registers Under MiFID And Short Selling Regulation

MondoVisione

 

ESMA Issues Technical Standards On Settlement Discipline Under CSDR

MondoVisione

Private Markets

ISE Mercury To Launch On February 16, 2016 – SEC Approves ISE’s Form 1 Application For Third Options Exchange

MondoVisione

PLY: A Payment for Order Flow / rebate structure is at the heart of the Mercury model… Naturally given their typical operational excellence, I anticipate a smooth launch from ISE February 16th.

 

Nasdaq Dubai Launches New ‘Share Link’ To Facilitate Trading For Egyptian Investors

Daily News Egypt

 

NCDEX Restricts Trading By Four Brokers

Partha Sinha – TOI

National Commodity and Derivatives Exchange (NCDEX), which had suspended trading in castor seeds futures last week, on Monday barred 4 brokers (Mid India Commodities, Investsmart Commodities, Neer-Ocean Multitrade and Leo Global Commodities) from buying in the commodities bourse as part of its investigations into what led to the build up of a large position in the oilseed.

 

Metropolitan SE Members Queue Up To Surrender Membership

Suresh P Iyengar – The Hindu Business Line

The struggling Metropolitan Stock Exchange (formerly MCX Stock Exchange) is faced with a new crisis with most of its members surrendering their licences and seeking refund of the ₹10-lakh ($14.7k) deposit as the three-year membership term comes to an end from this year.

PLY: A worrying development for MCX SE (or MSXi or whatever its acronym is this week) but the exchange does not seem to have found a niche and has endured a drain in confidence.

 

Egypt To Launch Middle East’s First Commodities Exchange By End-2016

Reuters

Egypt plans to launch the Middle East’s first commodities trading exchange by the end of 2016, Supplies Minister Khaled Hanafi said on Monday.

PLY: In a nation the size of Egypt, there is an enormous harvest yield gain to be made if an efficient market can help get more products to commercial centres before it goes to waste.

 

Shenzhen SE Signs MOU With Tel Aviv SE

MondoVisione

Dividend News

Bursa Malaysia is proposing a final dividend of 18.0 sen per share, bringing the full year 2015 total dividend to 34.5 sen per share.

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX off 2%, FTIL -2.5% as these entities underperform a slightly lower NIFTY Index…

Technology

Data Fees—Everyone Else is Doing It; Why Can’t I? (subscription)

Max Bowie – Waters Technology

Like a drunk uncle at a family get-together, most data consumers view market data fees as an unwelcome guest—a necessary and inevitable evil that must be endured as a condition of participation in the capital markets “family.”

Products

India – Commodities Market Players Begin To Feel Regulatory Heat

The Economic Times

With the regulator Sebi stepping up its surveillance, commodities market players have begun to feel the heat and several non-serious entities are looking for an exit.

 

Shanghai SE Warns Securities Firms On Corporate Bond, ABS Risks

Reuters

 

China FX Regulator Says Has Not Asked Institutions To Defer New QDII Products

Reuters

 

ESMA Publishes Consolidated UCITS Q&A

MondoVisione

Career Paths

LeapRate reports that Moscow Exchange (MOEX) reappointed its CFO Evgeny Fetisov to its Management Board. Mr Fetisov, who has been in the roles of MOEX’s CFO and a MOEX’s Management Board member since February 2013, has secured an additional three-year term as a member of the Management Board.

Evgeny Fetisov joined MOEX from private equity firm Da Vinci Capital Management, where he was a partner and MD responsible for the investments in the financial services sector since 2007. In 2009 Mr. Fetisov, became a member of the BoD at RTS. Following RTS’s merger with MICEX, he served as a member of MOEX’s Corporate Governance Committee and Deputy Chairman of the Budget Committee.

The Hindu reports that LSE appointed Jasmine Arora as Head of India, Africa and Middle East for Equity and Debt Primary Markets. Jasmine has close to two decades of experience of working advising companies, institutional investors and private families.

FXCM announced that Mr. Perry Fish submitted his resignation to FXCM from his position serving as an independent member of the Company’s BoD for personal reasons.

FXCM’s Board, appointed Mr. Bryan I. Reyhani to serve as an independent member of the Board.

FN reports that Bill Benz, the head of Pimco in Europe and a 30-year veteran of the firm, will retire later this year.

The Romanian FSA validated the new Board of Bucharest SE Governors: Lucian Claudiu Anghel, Otto E. Naegeli, Robert Cosmin Pana, Dan Viorel Paul, Cristian Micu, Valerian Ionescu, Gabriel Marica, Octavian Molnar, Radu Toia.

PLY: I am sure the wise countenance of my old friend Otto Naegeli will add value to BvB via his board position. Good to see him confirmed alongside the other members.

ESMA Vacancy Notice – Seconded National Expert – Supervisor Of Credit Rating Agencies & Trade Repositories (Deadline: 21/02/16)

MondoVisione

Financial Calendar

02.02 – SEC Equity Market Structure Advisory Committee Meetingagenda.

03.02 – CBOE Q4 2015 Results

04.02 – ICE Q4 2015 Results

04.02 – ITG Q4 2015 Results

04.02 – SGX 5 cents interim dividend payment date

05.02 – CME Q4 2015 Results

New! 16.02 – ISE Mercury Launch

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

Other stories

European Commission – Keynote Speech By Commissioner Jonathan Hill At The DG FISMA Conference On Covered Bonds, Brussels, 1 February 2016

MondoVisione

 

European Court of Auditors’ Publishes Report On ESMA’s Supervision Of Credit Rating Agencies

MondoVisione

 

Keynote Speech Of CFTC Chairman Timothy Massad Before The Commodity Markets Council

MondoVisione

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