February 29 2016

elb2The great news is another sale for Cinnober as their unique real-time CCP platform acquires JPX as a customer. Meanwhile NSE has established a listing committee, a great leap forward for shareholders seeking transparency, and, indeed, an end to the ludicrous legacy of the Jalan Committee report and other protectionist bridges to exchanges embracing capitalism in India.

Meanwhile, the DB1 proposed acquisition of LSE has garnered vast reams of coverage but it remains predominantly 3G. AKA: rather general/generic or generated by counterparty agitprop. Hence I have pared that to the required bare minimum to save your time. If you need to get the gist of DB1-LSE, it’s all in EI Premium… Over the weekend, I added the Posts: A Simple Numerical Progression & Xavier: Where Did It All Go Wrong? Elsewhere, I was quoted in despatches by the excellent Financial Revolutionist weekly newsletter.

In the worrying backlash department, the Central Bankers have just realised FinTech is eating their constituents’ lunch so like all members of the spurned & vengeful camp, they are considering regulation… Really seriously dire move but one to be expected given that the blob remains steadfastly anti-Schumpeterian.

For those interested in the Brexit debate (essentially where the British government tells any old guff to panic the populace into no change so the EU can then indulge in ongoing spousal abuse), NLX Non-exec Daniel Hodson, has waded in with a personal Opinion piece in City AM.

Happy scrolling & if you haven’t already got a subscription to Exchange Invest Premium, remember $300 per user/year remains the benchmark separating ignorance from insight.

Public Markets

JPX Selects Cinnober Real-Time Clearing For Listed Derivatives


Cinnober was selected by JPX to deliver a real-time clearing solution for its listed derivatives market, which is operated by Osaka Exchange (OSE), and cleared by Japan Securities Clearing Corporation (JSCC). The new implementation will be based on Cinnober’s proven TRADExpress RealTime Clearing.

PLY: Brilliant news from JPX which is a huge further fillip for the Cinnober system revolutionising markets with the move to real-time clearing precepts as JPX moves away from legacy internal systems.


London-Frankfurt Deal Is Brexit-Proof Say Exchanges

Simon Jessop – Reuters

LSE Admits £20bn German Merger Could Be Damaged By Brexit (subscription)

James Quinn – Daily Telegraph

PLY: Back in the day the LSE was somewhat notorious for being off-message between Chairman & CEO’s office, let alone the rest of the staff when it came to some deals. Of course the DB1:LSE negotiation has cured that as the Chairman has neutered the CEO…but seriously the idea this is now so much ‘not an issue’ has led to a committee of people’s deputies to advise the nation on tractor production statistics and the benefit of the EU? I still think they would be better off spending their insomnia on antitrust but we know LSE had suffered acute open access delusion syndrome (“OADS”) months back.

LSE/DB1 Deal Gets Veto Threat From Regional Regulator (subscription)

Stefanie Eschenbacher & Tim Cave – Financial News

The regional German regulator responsible for DB1 has said it could veto the exchange’s proposed merger with LSE if Frankfurt’s financial centre is disadvantaged by the deal.

PLY: A Bloomberg piece this AM bigs up the importance of London to DB1 which signifies how this deal only means less significance for Germany’s principal financial centre. Frankly, Frankfurt is a small, slightly boring city imho most famous for being at one end of the autobahn to Darmstadt where the brilliant Bernd Rosemeyer was killed in 1938 on a record attempt in a slab sided Auto Union. The future of DBI…well the Direction of Deutsche Boerse, (regulators permitting), has been clear for years to EI Premium readers.

Forget the Harlem Shake; Do the Deutsche Shuffle (subscription)

Max Bowie – Waters Technology

PLY: Useful reminders of some data travails from the ever insightful Max Bowie.


SGX Back In Hunt For Overseas Buys

Goh Eng Yeow – Straits Times

SGX confirmed Friday that it’s in discussion to buy Baltic Exchange.

PLY: Not sure what SGX can do other than very small deals such as Baltic – unless they get a lot braver – but nonetheless it is an interesting business for them to roll up – if – they can prevail in a very crowded field of bidders.


Sebi To Discuss Move To Allow Foreign Individual Investor To Hold 15% In Local Bourse

Anirudh Laskar & Jayshree P. Upadhyay – Deal Street Asia

Sebi will consider a proposal to allow an individual foreign investor to hold as much as 15% in a local stock exchange in its 12 March board meeting.

PLY: A resounding “Yes” is the only sensible answer.


BGC Partners Announces New Unsecured Credit Agreement


BGC Partners entered into a committed unsecured credit agreement providing for maximum revolving loans of $150 million, with the option to increase the aggregate loans to $200 million.


Euronext: Regulatory Statement Per Transparency Directive


PLY: Cynics will say, AKA: ‘Euronext HQ is in Amsterdam, Holland…& even those looking closely can barely see the French Finance Ministry pulling the strings behind this announcement.’


NZX Confirms Move Date To T+2 Settlement Cycle


Following successful testing by NZX market participants and software providers, it’s T+2 for cash markets on Monday 7 March 2016.

Private Markets

NSE Sets Up Committee For Listing

The Economic Times

National SE (NSE) has formed a listing committee, comprising board members, shareholders and management representatives to accelerate the process of listing. The exchange said it was looking to list on its own platform.

PLY: NB Note the defining desire to still list on NSE despite SEBI’s attempts to preclude this. A great leap forward for NSE which has been edging incrementally towards a listing for some time. Good news for NSE & Indian markets.


KBZ Launches Yangon SE Settlement System

Aye Thidar Kyaw – Myanmar Times

Kanbawza Bank signed with Yangon SE (YSX) to run settlement & clearing operations for Myanmar’s first modern bourse.

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX jumps +4.51% while FTIL is up 2%.


Cinnober Q4 2015 Results


vs Q4 2014: net sales 90.8 mln Swedish crowns ($10.69 mln), up 37.5%, EBITDA 9.3 mln ($1.09 mln).

PLY: Great results for Cinnober just as they announce a stunning win with their CCP product in Japan.


Mexico Stock Exchange Friday Trading Halt


Mexico’s stock exchange resumed trading on Friday after technical problems caused a trading halt.


FSB’s Carney: Global Regulators May Propose Rules For Fintech

Huw Jones – Reuters

Global regulators may propose rules to prevent “fintech” innovations from destabilizing the broader financial system.

PLY: I would be wary of this announcement. “FinTech” doesn’t destabilise banks, rubbish banking does. At the same time, P2P eating the lunch of the legacy players means less power for Central Bankers & other regulators, so this is a clear push to strangle innovation and maintain the status quo. #Worrying.


ITG Launches Pre-Trade Analysis Platform



Leap Year Date Confusion Leads To Derivatives Fallout (subscription)

Joe Rennison – Financial Times

Derivatives traders were left scrambling on Thursday, as the first leap year under the new, post-crisis market structure resulted in trades being rejected due to confusion over date conventions.


GSX Lists First Debt Securities

Kirsten Hastings – International Adviser

Gibraltar SE (GSX) listed its first corporate bond and its first asset-backed security in February after expanding its services last month to include the listing of closed-ended funds and debt securities.

PLY: Good steady progress at the Gibraltar SE.

Career Paths

FN reports that David Lester was named Chief Strategy Officer of LSE.

PLY: I had actually thought this was a role already broadly fulfilled by David – anyway plaudits on his formal appointment.

Financial Calendar

01.03 – Tullett Prebon 2015 Preliminary Results

01.03 – Record date Interactive Brokers $0.10 quarterly dividend

02.03 – Record date BGC Partners $0.14 dividend

04.03 – LSEG prelim results for the period ending 31 December 2015

04.03 – Record date CBOE $0.23 dividend

04.03 – Record date ITG $0.07 quarterly dividend

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

Share Notes

ICE CEO Jeffrey C. Sprecher sold 24,599 shares on Wednesday, February 24th at $242.10 (bargain $5,955,417.90). He now owns 318,392 shares.

Other stories

FINRA Approves Enhanced Price Disclosure To Retail Investors In Fixed-Income Securities



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