FEBRUARY 2 2017


Welcome to Issue 924 which dovetails neatly with the simple but elegant front engined Porsche coupe which may have been underpowered compared to its peers but given the design team raided the VW parts bin (again) and deployed a van engine, is quite a remarkable vehicle – and a lot prettier than the 914 for instance. The most affordable Porsche, and always a pleasant drive, although I prefer the… oops getting ahead of myself there, later, folks, later…

In Today’s Exchange Invest

The great news is that Cinnober have a cracking new client AND it’s a new market which is even better news for the parish.

Unfortunate news for the parish is that prosecutors, police et al have been raiding the offices of DB1 – sending out very unfortunate signals about the parish as a whole.

And there’s more, happy scrolling:

In BigWorld

I note Covering Trump the Reuters Way is the number one story on the august newswire’s global web site (well over 24 hours after it was posted). As a naturally sunny optimist, I do hope multiple other organs of media can pull out of their death spiral of inept reporting of their own snowflake views and get back to analysing facts…albeit my realistic side is not suggesting a large trade in favour of legacy media realising the folly of its ways.

Public Markets

Deutsche Boerse CEO Office Raided
Bloomberg
(Original German Story: Wirtschaftswoche,)

The probe alleges that Kengeter bought Deutsche Boerse shares in December while knowing about the talks that at that time weren’t public, prosecutors said.

PLY: When this deal came out – in a rather ugly leaked fashion (which NB never really seemed to be coherently investigated), wasn’t there rumoured to be an issue about a ratio decision on takeover which would relate to the relative share prices of either DB1 and LSE to decide on the deal split?

This would start to gum up the works of all manner of timings as clearly a, 90 day tracking period wasn’t agreed without much to and fro beforehand (at least a month methinks) and thus the purchase timing of buying shares on December 14, 2015 and the outing of the announcement on February 23rd, 2016, look a tad proximate to deliver anything but an acute feeling of, at least, unease…

…Subscribers to Exchange Invest Premium can read the rest of the story here: Does Insider Dealing Sink DB1-LSE?

(If you aren’t a subscriber email me with details for invoicing and it’s $300 per single user / year; discounts for corporates)

LSE Says Looks Forward To Completing Merger With DB1
Reuters

PLY: No mention of the fact that it’s the best way for various senior managers to cash in because clearly their commitment must be driven by overall shareholder value and pursuit of a better market for all…

DB1 Boss Wants LSE Takeover To Bring Anglo-Saxon Spirit To Europe
City A.M.

PLY: Remarks from the DB1 London cocktail reception the other evening – I wasn’t going to include it but following today’s lead story, readers may ponder the comparison of just what Germany Inc might perceive as “Anglo Saxon Spirit.”

ESMA To Launch 2017 Clearing House Stress Tests In March
FOW magazine

Amendment Of Eurex Clearing Ag’s Capital Structure: Increase Of Dedicated Amount
Eurex Clearing

Eurex Clearing’s own contribution to the Clearing Fund, the so-called Dedicated Amount will be applied, prior to utilising any non-defaulted Clearing Members’ resources.

To meet the objective of continuously optimising the incentive structure around the CCP’s default management process and default waterfall, Eurex Clearing increased its Dedicated Amount by EUR 50 million, to EUR 150 million, as of 31 January 2017.

PLY: Interesting, particularly given the next story:

Don’t Bank On Users To Rescue Clearing Houses Top Regulator Warns
Reuters

PLY: FSB unhappy about how liability could end with users – users especially on buy side continue to believe the old world will continue into the new, leaving a tricky impasse.

Investment Technology Group’s (ITG) Ceo Frank Troise On Q4 2016 Results – Earnings Call Transcript
Seeking Alpha

Shareholder Alleges BATS Global Market, Board Members Violated Law
Legal News Line

PLY: Not clear here just what transgressions took place but evidently this is neatly timed to exacerbate pressure ahead of the closing of CBOE’s acquisition.

Private Markets

India Fin Min: Integrate Spot, Derivative Markets
Business Standard
Government Proposes Integration Of Spot And Derivative Commodity Markets
Business Standard

PLY: Perhaps the most significant thing to emerge for the parish in budget week. Sounds like a sound idea overall to have the potential to trade cash and derivatives together but first, the government seriously needs to logically sort out the NSEL mess – without destroying the corporate code…

Developing A Stock Market For MSMEs
Jamaica Gleaner

PLY: Interesting proposal

Nairobi Bourse Moves To Attract Local Investors
News Ghana

PLY: Financial literacy amongst the key projects, encouraging news.

Special Section: FTI, NSEL, India at the Crossroads

See the integration of cash and derivatives markets story in “Private Markets” above.

Technology

New Asian Marketplace Signing For Cinnober’s Real-Time Clearing Technology
Cinnober

PLY: Fabuous news for Cinnober in signing this “mid-sized deal.”

NB I could not confirm by pixel time if this is the same but qv the release of last summer: Cinnober Chosen For Major Design Study.

Switzerland Begins Consultation On New Fintech Regulations
Finextra

Itiviti Introduces Fully Managed FIX Infrastructure Service
MarketWatch

Products

Amendments To Derivatives Regulation – Autorité Des Marchés Financiers Proposes To Prohibit The Sale Of Binary Options To Québec Consumers
Newswire CA

Hong Kong Government Backs Plan For New Tech Board
South China Morning Post

Euronext And Biotech Bourse Launch First Quarterly Barometer For Biotech Sector
Euronext

PLY: Interesting development between Enternext and the French research house Biotech Bourse.

Career Paths

DTCC Appoints Ann Shuman As General Counsel – Larry Thompson To Focus Full Energies On Vice Chairman Responsibilities
MondoVisione

PLY: Larry Thompson no longer having his ledger distributed, clearly.

Post Investment: Four Chinese Directors To Join PSX (Pakistan) Board By February 10
The News International

LCG Announces Resignation Of Non-Executive Director, Rebecca Fuller
LeapRate

She also sits on the board of BATS/Chi – X Europe.

PLY: Industry veteran from multiple vending entities, Jonathan Cowan has joined Calpso Technolgy in a senior role to head up their Regulation and Compliance MiFID/ Emea product. I wish Jonathan well given his extensive experience in the full lifecycle of OTC and exchange products.

Braintree Hires Former Lending Club Exec As Chief Technology Officer
Chicago Tribune

Crowdfunding

Ethical Issues Complicate The Benefits Of Medical Crowdfunding
STAT

Other Stories

ESMA Announces Details Of 2017 CCP Stress Test
ESMA

African Exchanges Magazine 2016, Issue 4
ASEA

UK Financial Watchdogs Shake Up Enforcement System
Reuters

ESMA Updates Its EMIR Q&A
EMIR
Thanks as always for reading Exchange Invest.

Best wishes,

Patrick

Patrick L Young
Executive Director DV Advisors

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