Ezubo clearly looks like the biggest ponzi scheme nobody out west has ever heard of, while questions arise about the price received by FTIL for their DGCX shares. CBOE results flat while Aquis bans HFT. LBMA to issue tender today for an electronic platform according to FT…and there’s more, happy scrolling:
Q4 2015 Financial Highlights
GAAP Operating Revenue down 6% to $156.0m; Adjusted Operating Revenue down 8% to $154.0m; GAAP Net Income up 2% to $50.2m; Diluted EPS up 5% to $0.61; Adjusted Net Income down 9% to $48.9 Million; Adjusted Diluted EPS down 8% to $0.59.
Full-Year 2015 Financial Highlights
GAAP Operating Revenue up 3% to $634.5m; Adjusted Operating Revenue up 2% to $632.5m; GAAP Net Income up 8% to $204.1m; Diluted EPS up 11% to $2.46; Adjusted Net Income up 2% to $198.9m; Adjusted Diluted EPS up 5% to $2.40.
Jayshree P. Upadhyay & Ankit Doshi – Livemint
The transaction, announced last week, was done at a valuation of around $40 million, which means FTIL received $11 million for its 27.3% stake.
PLY: This is a curious tale and the sale of the DGCX stake looks like the bargain of the century for the buyer. It raises a lot more questions than it answers, though, some of them pondered by Hirander Misra of GMEX and myself in this story…
John Detrixhe – Bloomberg
Philip Stafford – Financial Times
Aquis Exchange told users on Wednesday it would bar traders who used predatory tactics to move prices and take advantage of orders placed by investors. The rule, which the London-based start-up said in a circular would apply from Monday, aims to clamp down on “momentum ignition strategies”, by which traders try to kick-start rapid price movement. In one strategy a series of rapid-fire buy or sell orders are initiated and then cancelled. Some techniques are part of legitimate trading but others are illegal.
PLY: Not heard much from Aquis of late but the “all you can eat” model is still with us.
Bradley Hope – Wall Street Journal
The market-making arm of hedge fund Citadel is in talks to buy the seats on the floor of NYSE owned by KCG Holdings.
PLY: Thus continuing the ongoing HFT takeover of the old floor, what an intriguing cycle that marks?
TMX may again narrow the differential in pricing between market participants who provide bid-ask quotes, and those participants who trade off the quotes.
PLY: The worry on Bay Street seems to be that TMX is fiddling as opposed to deploying a big picture strategy to deal with competition which has just been further extended to include NASDAQ after their acquisition of Chi-X Canada.
Michael Holden – Reuters
Mike Fox – LeapRate
Among MOEX members, Sberbank (25, 670), Finam (23,755) and BCS (15,133) opened the most IIAs, MOEX data shows. Individuals have a choice of 80 companies when looking to open an IIA.
PLY: LBMA tender apparently imminent, will be interesting to read.
The Know Your Depositor (KYD) documentation process at the time of accepting deposits will now include declaration by depositor conceding he is the sole beneficiary of deposited goods.
CME declared a Q1 dividend of $0.60, a 20% increase from the prior rate of $0.50. The dividend is payable March 28, 2016, record date March 10, 2016.
Special Section: FTI, NSEL, India at the Crossroads
PLY: Flat day for MCX while FTIL is up 2% despite media reports questioning the price achieved for the DGCX stake.
Aastha Minmet and Juggernaut Projects ordered to pay Rs 12.5 cr ($1.84 mln) and Rs 145 cr ($21.4 mln) respectively.
Philip Stafford – Financial Times
ASX has signed a deal for Nasdaq, the US operator, to upgrade the Sydney group’s equities clearing platform and will roll out the project as it tries to create a workable system for settlement.
PLY: ASX talks Blockchain while inelegantly ignoring the distributed word before ledger, as befits a monopolist.
PLY: Interesting deal which, although I see a future for turrets and related products, does have an air of merging blacksmiths in the face of the automobile as Philip McBride Johnson memorably commented about the state of futures exchanges in the open outcry mutualised era when the Capital Market Revolution broke out.
Pete Rizzo – CoinDesk
Post-trade settlement specialist Euroclear has co-authored a new report on how blockchain and distributed ledger technology can be adapted for capital markets.
PLY: The problem with Euroclear is that with its rather slow management approach to innovation this could be the T+forever Blockchain solution. QV Also my paper from last year “Towards A Real-Time World Market.”
CME plans to resume the listing schedule for live cattle futures and options contracts, effective Feb. 18, posting the June 2017 live cattle f&o that was originally scheduled to be listed on January 4.
Stephen Morris – Bloomberg
Barclays agreed to transfer a portfolio of derivatives contracts (mainly IRSs) to JPMorgan Chase, as the U.K.’s second-largest bank speeds up the sale of unwanted assets to reduce its capital requirements.
Interactive Data, will work with AllianceBernstein L.P. (AB) to help the firm evaluate its trade execution quality and perform transaction cost analysis (TCA). The work will be done across various mutual funds and separately managed portfolios using Interactive Data’s Best Execution (Best Ex) service.
PLY: Interesting win for the IDC franchise in TCA…
PLY: Competition in ETFs is almost at the fever pitch of US single name equity options….
…Enables customers to use just one index as an underlying for their products that are linked to the performance of DAX before, during or after Xetra trading hours (as opposed to both DAX & XDAX previously).
ITG announced the promotion of seven new MDs: Kathryn Birn, James Cochrane, Alex Goldstein, Tim Love, Jon Moleshead, Shimon Rozenzweig, Erin Stanton.
SEC named Jane Jarcho as Deputy Director of National Exam Program.
Finance Magnates reports that Elliptic, the blockchain intelligence and security firm, revealed the members of its new board of advisors: David Harris, Martine Niejadlik, Richard Brown and Nadav Rosenberg.
David Harris served as CEO of the CBOE Stock Exchange, as well as Chairman & CEO of the National SE. Martine Niejadlik handled AML and regulation as CCO at Coinbase, and before that ran risk management teams at PayPal, eBay and Amazon, and was a lead developer of the FICO score.
Richard G. Brown is currently Head of Technology at R3CEV. Prior to R3CEV, Richard was the Executive Architect for Industry Innovation and Business Development for IBM’s Banking and Financial Markets business in the UK. Richard has been an advisor to Elliptic since 2013.
Nadav Rosenberg was MD of Europe Operations at Taboola.com, and a senior executive and Regional Director Groupon UK & IR.
Bloomberg reports that Morgan Stanley named Steve Zamsky COO of its fixed-income & commodities business. He replaces Steve D’Antonio, who retired after almost three decades at Morgan Stanley.
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
New! 11.02 – ASX H1 Results for FY16
All forthcoming exchange / investment related events are now listed in our Events page.
Almost overnight, Ding Ning and Zhang Min struck it rich with the hot new thing in Chinese finance. In 18 short months, they transformed an old-line industrial company into an Internet phenomenon through the seeming magic of P2P lending.
It was all a lie — a vast Ponzi scheme that appears to have been orchestrated by the Bernie Madoffs of China.
PLY: Bernie Madoff may even look a touch lacklustre against Ezubo, picking up on the story we have already been discussing this week. One P2P platform which was a pure ponzi it seems, bilking some 900,000 people out of $7.6 billion…