Welcome to Exchange Invest, the unique market structure daily, where it’s Issue 927 which correlates to a reserved Porsche type number for the 4 valve 917 engine.

Incidentally if you have some time to spare before / after the ICE results announcement – read this excellent white paper on auction markets in dairy by the good folks of Perfect Channel.

In Today’s Exchange Invest

The founder CEO of TriOptima standing down is a huge event and I salute Per Sjoberg for his remarkable contribution to the parish and beyond. CBOE results show slippage from last year despite the Trump bump. DB1 so worried they are assuring us their CEO has full support – yes clearly things are that bad over in the Eschborn bunker. Meanwhile FXCM has been badly damaged by the CFTC; and about time too many will say. Elsewhere, an entity called “ISEG” is talking of a 3000 million dollar deal despite no clear evidence of where its finances come from, nor where it is regulated as an exchange entity despite activity in some 50 countries.

And there’s more, happy scrolling:

In BigWorld

The ramifications from the Super Bowl are still, er, in play. Lady Gaga shocked millions by standing up and singing which apparently is a rare event between political prancing and wardrobe malfunctions at this event. Apparently the football match was pretty interesting too if you happen to like watching grown men chase inflated pigs bladders. Well, it takes all sorts, as they say.

Public Markets

CBOE Profit Falls On Higher Costs
CBOE Q4 2016 Financial Results
PR Newswire (press release)

The operator of the largest U.S. options exchange, reported a 10.8 percent fall in quarterly profit…

PLY: All that “yuge” Trump volatility and yet CBOE profits decline – I find that profoundly disappointing.

CFTC Orders Forex Capital Markets, LLC (FXCM), Its Parent Company, FXCM Holdings, LLC and FXCM’s Founding Partners, Dror Niv and William Ahdout, to Pay a $7 Million Penalty for FXCM’s Defrauding of Retail Forex Customers
Breaking: FXCM to Sell US Accounts to GAIN Capital
Finance Magnates
FXCM banned by CFTC after taking positions against clients

PLY: This is a ghastly damning indictment of the immoral culture which has been allowed to pervade some areas of the parish.

Statement Of The Supervisory Board Of Deutsche Börse AG: Full Confidence In Chief Executive Officer Carsten Kengeter

PLY: The double down.

DB1 is so efficient and so fast moving that nothing was being discussed whatsoever in 2015 with LSE despite XavRol being consistently rumoured to be shopping his exchange to anybody and everybody? Thus 2016 dawned, a light bulb moment occurred and suddenly within days a deal was taking place (er, complete with apparently a trailing…oh you need to read Does Insider Dealing Sink DB1-LSE? in Premium).

This blanket statement raises more questions than it answers and suggests DB1 is in a deep dark bunker-like place right now. Moreover parish trust in DB1, despite the many decent staff there, is dwindling. This statement only suggests a remarkable hubris and / or naivete on the part of DB1. No wonder the business has been drifting for years.

It also depicts the difficulty for German companies in dealing with Anglo-Saxon business practice. In our perception, once the company issues such a blanket statement, it is absolutely clear the executive in question is in BIG trouble. A broadly plaint German media may tend to publish whatever rubbish the big corporations pump out but in the Anglo Saxon world, this release suggests an injured shark bleeding into the ocean with predators around trying to confidently strut a superiority it has never been clear they have a reason to possess (in the parish at least). (Moreover, the Supervisory board of DB1 now risks being seen as cavalier in a criminal investigation…).

I would have thought Carcrash was safe given how incapable the DB1 board was over Reto’s incapacity to progress much anything but after this statement…

(Oh and no, I still don’t think it helps elevate XavRol from EVP of tea trolley servicing and glad handing to be Group CEO).

Regulator Hands Over Info In DB1 Insider Trading Case
Europe Online Magazine
DB1 & LSE Offer French Unit As Merger Antitrust Remedy
Financial Times

PLY: I am reminded of Tanya (Vera Day) the croupier in Lock Stock & Two Smoking Barrels: “Is that it?” when the poker hands are revealed as nothing remotely significant in the pantheon of winning hands.

This proposal is either bourse hardball or a remarkable case of hubris…

Bucharest SE CEO: Romania, Very Close To Emerging Market Status

PLY: I suspect emerging market status is already broadly priced into the tiny market structure of Romania and the corruption protests roll on in the feudal republic.

Private Markets

Sebi Board To Discuss NSE ‘Unfair Access’ Issue
Business Standard

Sebi could also update its board on the ongoing probe into the National Spot Exchange Limited (NSEL) matter.

Announcement From Borsa Istanbul A.S. Regarding The Transfer Of Its Shares Owned By The Treasury Of The Republic Of Turkey To Türkiye Wealth Fund

Chicago Stock Exchange Plans New Speed Bump To Curb Fast Traders

MOU Signed Between Qatar Stock Exchange And Tajikistan Central Asian Stock Exchange (CASE)

Should Scotland Have Its Own Stock Exchange Again?

PLY: Given that I support Scottish independence on the basis it would lift a vast weight of trough off the back of England (likewise I think Northern Ireland ought to be sold to private equity), I do happen to support a Scottish Stock Exchange as it might help the client state of Scotland appreciate how to generate wealth once more as well as being a sound move towards more regional exchanges. Not heard anything from Scotex of late albeit that looked a little opaque for my liking, speaking of which:

ISEG Confirms the Launch of 50 Global Stock Exchange Sites Which Have Gone Live Today and …

ALLIEDSX equips local partners with all they need to own and operate the ALLIEDSX startup stock exchange in their country.

PLY: ISEG acquired the “Startup Stock Exchange” last May. However, this is apparently a monumental deal – some 300 million dollars invested according to their press release – yet there is no sign of any regulatory oversight in any jurisdiction, let alone all 50 mentioned here.

Belarus: Individuals Will Be Allowed To Trade Foreign Currency Directly On Stock Exchange

Currently, only legal entities are allowed to buy currency at the stock exchange

PLY: Interesting liberalisation move in Belarus.

Special Section: FTI, NSEL, India at the Crossroads

See story on NSE above, Sebi might discuss NSEL again at their board meeting…


Delivering a Best In Class Dairy Auction Mechanism
Perfect Channel

Like Shares, Hold Commodities In Demat Soon
Economic Times

Both the BSE and commodity bourse MCX have agreed to pick 24% stake each in the venture with CDSL holding 52%.

PLY: An interesting development. Of course NSEL had a form of demat too – you paid for the cash commodities and the money dematerialised.

Börse Hamburg And Börse Hannover Go Live With Scila Surveillance For Real Time Market Surveillance And Prevention Of Market Abuse And Insider Dealing

PLY: Well done Scila.

Deutsche Börse Successfully Brings Settlement Volume To The Eurosystem

PLY: Smug headline reminds us that DB1 is one of the last entities to join the Target2 securities system. Chamber Of Digital Commerce Welcomes CME & TMX As Members


Accept European Court Or Risk Losing Euro Clearing, ECB Tells UK
Reuters UK

PLY: Oh dear poor SuperMario, he really does believe he can control where folks clear their Euro denominated instruments. Well I suppose one could say “You’re no John F Kennedy” but let’s face it the latter glossy Presidency with spiky left-wing economics did lots for the world’s markets by pushing a lot of US clearing overseas.

Career Paths

NEX Optimisation Announces That Per Sjöberg, CEO Of TriOptima, Has Decided To Step Down And Will Be Replaced By Stuart Connolly

PLY: an epic moment in the history of TriOptima with the departure of the founder and CEO Per Sjoberg. I wish him well, he has in many ways been a largely unsung hero in improving markets.

…CloudMargin, which claims to be the creator of the world’s first web-based collateral and margin management solution, has hired Filipe Rodriquez as the firm’s new Chief Technology Officer, based in London reporting directly to Steve Husk, CEO of CloudMargin.

Cantor Exchange On-Boards Lubomir Kaneti as Senior MD
Finance Magnates

The US binary options trading venue has on-boarded financial services veteran, Lubomir Kaneti.


Fintech Startup SlicePay Acquires P2P Lending Platform Trustio

SlicePay is a fintech startup that provides buy-now-pay-later service.

Are Crowdfunders Due For A Reality Check?

So where will crowdfunding fall? It is being launched with a lot of hype and hoopla. And the new rules are designed to make crowdfunding easier.

Other Stories

Reconsideration Of Pay Ratio Rule Implementation SEC Acting Chairman Michael S. Piwowar

Thanks as always for reading Exchange Invest.

Best wishes,


Patrick L Young
Executive Director DV Advisors

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