A sad day for bond markets the world over with the passing of the innovative securitisation issuer David Bowie, a man more famous for his popular music. Our condolences to one and all.
Thanks for the steady stream of new subscriptions to our Premium service – it all helps shore up the free Exchange Invest daily. If you aren’t already part of our inner circle, you have until Thursday to get in at the $120 rate for 3 years, thereafter it’s $300 from Friday per individual subscription…
If you happen to be in Malta at the end of the month, you can catch one of my briefings. It’s a rare public session by me, organised by the JCI hosted by Enterprise Malta. See the details here, all welcome, looking at FinTech.
Today in Exchange Invest, China is in meltdown, even if the markets recover soon, the system may not be able to find enough duct tape to patch the Communist meets capital allocation model back together.
Business World Online
Philippine SE (PSE) is confident it can comply with requirements of SEC within the extended deadline approved by the corporate regulator in order to finally proceed with the long-delayed consolidation of the country’s equity and fixed-income exchanges. QV Premium: PSE – PDEx Merger Brief.
PLY: Frankly we just want this story over with. Nobody so far emerges well from this soap opera.
Lingling Wei – Wall Street Journal
Matthew Miller & Shu Zhang – Reuters
At an emergency meeting convened by China’s cabinet Thursday, the country’s top securities regulator, Xiao Gang, was in the hot seat.
Adam Haigh – Bloomberg
A 10% daily limit on single stock moves and a rule preventing investors from buying and selling the same shares in a day remain in force.
Greg Ip & Bob Davis – Wall Street Journal
PLY: The Chinese wobbles will continue until a total meltdown which may be before or after the realisation that Canute Markets Inc was never successful, even in its final stages as a very aggressive low latency enterprise.
FAO: As announced in November last year.
PLY: Welcome to One big broad church of futures brokers. Still doubt I can justify a trip to the rats’ mouth, alas.
John Aidan Byrne – NY Post
The Flash Boys may have a Flash Crash coming. The national heroes of mom-and-pop investors everywhere — as well as the subjects of an American runaway best-seller — have run into big trouble.
They are facing public humiliation stemming from “Flash Boys” hero Brad Katsuyama’s upstart IEX Group, with its grandiose plan to be a groundbreaking stock exchange to combat predatory HFT.
“Demonizing HFT worked well for a book tour, but if ‘IEX: The Exchange’ is the sequel, it’s a lot different story,” Bill Harts, CEO of Modern Markets Initiative, the advocacy group for HFT, told The Post.
PLY: Typically tabloid fodder fuelled by the MMI, a group which sees speed as the all-consuming God-given right of its members and appears to exhibit a stunningly blinkered view of the big picture. Wall Street will be humiliated if the IEX plan is vetoed and MMI would be better off calculating the risks holistically.
Chris Flood – Financial Times
Securities lending is an area of growing concern to global regulators who are worried about potential risks to financial market stability.
PLY: Given lack of securities lending leads to illiquidity & given how much more lending is needed to secure a safe post OTC derivatives landscape, isn’t this worry misplaced? Then again regulators still have not understood (e.g. Greece) that when you ban, say, short selling, that just convinces the markets a panic is afoot.
The three stock exchanges of Karachi, Lahore and Islamabad will formally merge today (Monday) to become the Pakistan SE (PSX). QV Premium: Pakistan Exchanges Merger Brief.
Maria Nikolova – LeapRate
Special Section: FTI, NSEL, India at the Crossroads
PLY: MCX up 1%, FTIL small up. No news, although the libel actions before Christmas appear to have backfired on FTIL as there has been a crop of Jignesh Shah Twitter parody accounts ridiculing the man behind NSEL in recent weeks with more being added almost daily…
Stan Higgins – CoinDesk
CFTC will discuss the application of blockchain technology in derivatives markets during a meeting of its Technology Advisory Committee later this month.
Alice Attwood – FOW
NLX said it will relist its bund, bobl and schatz options in its test environment on Monday January 11. QV Premium: NLX Brief.
PLY: Uncle Google seems to reckon they did a heady 1460-ish lots Friday in futures – I think we can safely suggest the “we have 10% share” hype in at least one product during 2014 is now long since extinct as NLX became little more than a cash drain in the hope of a means to revenue (perhaps the smash & grab attempts to crowbar open clearing by the ‘superstriver’ exchanges LSE & NASDAQ who learnt there was life beyond cash products a tad too late). In my experience, options markets thrive on the back of either significant futures liquidity or a market making system which allows people to make markets ‘upstairs’ then print on the exchange.
Darana Chudasri – Bangkok Post
The Stock Exchange of Thailand (SET) plans to introduce a trading platform that pools all mutual funds in one place by early 2017.
12.01 – CME $2.90 variable dividend payment
12.01 – WSE EGM
13.01 – Oslo Børs: Merkur Market Go-Live
All forthcoming exchange / investment related events are now listed in our Events page.
Annette L. Nazareth & Gabriel D. Rosenberg – Financial Times
Last year we offered our 10 regulatory reform predictions for 2015, which turned into a busy year in the financial regulatory space. Here are our predictions for 2016.