FEBRUARY 8 2017

Welcome to Exchange Invest, the unique market structure daily, where it’s Issue 928. For those who enjoyed elegant V8 cruising in a fabulous front engined Porsche, remember the 928 which we celebrate in Exchange Invest Issue 928 today.

In Today’s Exchange Invest

ICE results beat estimates. DFM produce spectacular improvement after recent lull. Plus 500 seems to have good numbers but trust is a bit of an issue. DB1 and LSE retain smug conviction they are on track to create an egregious monopoly.

And there’s more, happy scrolling:

In BigWorld

In the increasingly desperate battle to garner the bank jobs that probably will be automated and hence won’t leave London anyway after Brexit, France is now noting Paris is a City of romance and has better restaurants than London. Clearly, that will focus sharp executive minds much more than considering the ongoing terrorist inspired state of emergency or the prospect of living in a command economy where the government is the largest economic actor.

Meanwhile, the French pre-Presidential election campaign leaking season is in full swing. So far, they seem to suggest all the mainstream candidates have secrets in their closets – plus ca change as the English always say.

Public Markets

Intercontinental Exchange Reports Fourth Quarter 2016 GAAP Diluted EPS of $0.59 on Revenues of $1.1 Billion; Fourth Quarter 2016 Adjusted Diluted EPS of $0.71, +9% y/y
Intercontinental Exchange Announces Expanded Capital Return Program Including an Increase of 18% to its Quarterly Dividend
The ICE
Intercontinental Exchange Revenue Rises On Trading Fees
Wall Street Journal

PLY: Beat estimates by 2 cents. Amongst the always interesting comments by Jeff Sprecher, he pointed out that the EU will need to consider deregulation to keep up with the Trump Presidency.

SEC May Sue New York Stock Exchange Owner Over 2015 Outage
Wall Street Journal

Recommended All-Share Merger Between London Stock Exchange Group Plc And Deutsche Börse AG – Information Update – Expected Aggregate Fees And Expenses On London Stock Exchange Group Deutsche Börse Merger
Mondovisione

PLY: For those who have complained about the waste of money by DB1-LSE on the merger of equal desperation, here’s a breakdown by segment.

Dubai Financial Market Q4 Net Profit Soars 406 Percent
Reuters

Plus500 Posts Strong Revenue Growth Despite Curb On Products
Financial Times

PLY: I note in despatches the term “unaudited” for these results.

LSE & DB1 Confident European Regulators Will Wave Through…
City A.M.

PLY: In the lavishly appointed, flunky laden, no expenses spared (see here), bunker, there is a radiation of confidence things are going to plan. The parish remains broadly bereft of faith in the concept, and sceptical the egregious monopoly can be threaded through the eye of the antitrust needle.

Fintech & CME Launch Debt Exchange
Handelsblatt Global Edition (subscription)

A Berlin-based financial startup, Crosslend, has teamed up with the Chicago Mercantile Exchange to set up a European marketplace.

PLY: Interesting – Crosslend is trying to effectively create securities from loans at P2P level and beyond while, so far as I recall, this marks a first actual investment by the CME venture arm in an exchange, as opposed to mega projects changing tech. Does this presage a change in approach to the Rumi Morales run fund?

Private Markets

Sebi Seeks Clarification On NSE’s Rs 10000-Cr IPO
Moneycontrol.com

Ireland Making Plans For Its Own CSD As Brexit Concerns Grow
Global Investor

PLY: Logical approach, I have long thought Ireland ought to build its own CSD, Brexit is a good reason to do so.

Plans For E-Procurement Platform At Belarus’ Universal Commodity Exchange
Belarus News (BelTA)

Special Section: FTI, NSEL, India at the Crossroads

Sebi might discuss NSEL again at their board meeting but given the other news today, it seems they have a greater priority to add more layers of regulation to the national stock exchanges et al.

Technology

ESMA: Too Soon For New Blockchain Rules
Reuters

PLY: A logical conclusion; a software tool ought not, in and of itself, power new regulations.

The Technology Impacts Of Mifid Ii (Part 1)
www.waterstechnology.com

Products

DB1-Liquidnet Dark Pool Closes Three Years After Major Brokers Revolted
Bloomberg

PLY: Perhaps the moment the buy side / sell side conflict resulted in it being clear DB1 was more a sell side poodle. The Liquidnet deal was not sold well and the brokers pushed back to protect their expensive self-interest. Now the chapter closes as presumably DB1 views the successful Turquoise dark pool which has united buy and sell side activity thanks to the political skills of Robert Barnes et al, amongst other advantages.

NCDEX Tightens Deposit Operations At Warehouses Audit Checks
Financial Express

Career Paths

Investigations Against Chirume Widened
ZimEye – Zimbabwe News

PLY: The Zimbabwe Stock Exchange says investigations into the conduct of its chief executive Alban Chirume will not be restricted to the Econet Wireless affair and the CEO has apparently been suspended. Mr Chirume is also currently involved in court proceedings concerning alleged assault against his estranged wife, amongst other issues.

Sebi To Overhaul Governance Norms For Stock Exchanges
Livemint

PLY: Sebi seeks to be yet more involved in choosing public interest directors. Alas.

Crowdfunding

Qv the CME investment in Crosslend above.

Other Stories

ISDA Sends VM ‘Big Bang’ Letter To Regulators
MondoVisione

ESMA Publishes 2017 Risk Assessment Work Programme
ESMA

ESMA Assesses DLT’s Potential And Interactions With EU Rules
ESMA

WFE Calls For Clarity On CCP Resolution
Reuters

Office Of Financial Research Update – The Case For Including Capital Buffers In Stress Tests
MondoVisione

Thanks as always for reading Exchange Invest.

Best wishes,

Patrick

Patrick L Young
Executive Director DV Advisors

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