January 15 2016

elb2It’s Friday and if you aren’t already subscribed to EI Premium, it’s just $300 for the year and a new season of insights kicks off today with a discussion of Young’s Pyramid – my way of looking at the heft of market operators. A useful tool some clients have already deemed worth the cost of subscription alone and a good prelude to the pending deal flow in markets we are likely to see this year…

Meanwhile, my latest RT OpEdge Column: “Oil: Lubricating Chaos Around the World.”

Today in EI, IEX battle simmers along while US & EU seem to finally have found ‘rational mode’ in their derivatives oversight discussions as the Dutch edge FTT off their Presidential agenda for the EU while Cinnober is organising a Makeathon in a hypercool venue… happy scrolling:

Public Markets

IEX Debate Reaches New Crescendo, Decision Will Pave Future Industry Path

Mark Melin – ValueWalk

Perhaps one of the more historic public fights in “Wall Street” history might be coming to a conclusion. The impending SEC approval or disapproval of the “Flash Boys” stars and their IEX Exchange, founded by Brad Katsuyama, is reaching a higher crescendo, if such a point in this emotionally charged battle is possible.

PLY: Approve and the SEC are clearly on the side of progress and Main Street. Disapprove and the SEC are clearly signalling an intent to empower the more aggressive end of the HFT spectrum to believe they really are the impeachable princelings of American markets.

 

EU & US Close In On Derivatives Oversight Agreement (subscription)

Philip Stafford & Jim Brunsden – Financial Times

The EU and US are closing in on a deal to close a gap in financial markets regulation that traders have warned could fracture global derivatives trading.

PLY: Finally a little common sense appears to be prevailing.

 

FTT Slips Off EU Agenda (subscription)

James Rundle – Financial News

The FTT is notable by its absence from the topics due for political agreement under the leadership of the new Dutch six-month presidency of the European Council. QV Premium: EU FTT Brief Part 2.

PLY: Good, the upcoming Dutch Presidency ought to be pro market (within the prevailing constraints of Euro-socialism of course).

 

Frank Troise To Begin ITG Rescue Job (subscription)

Tim Cave – Financial News

The man who built JP Morgan’s electronic broking business returns to ITG on January 15. Only this time he’s not out to build a reputation, he’s out to repair one.

PLY: I wish Frank Troise well as he prepares to resurrect ITG in the wake of the Justin Hughes /Phillyfin orchestrated shareholder putsch post SEC fine.

 

Nasdaq’s Subsidiary Launches IR Insight Platform For IROs, Executives

Jeff Patterson – Finance Magnates

Nasdaq has launched (press release) its IR Insight platform, which is designed to cater specifically to financial executives and senior investing relations officers (IROs) worldwide.

PLY: More coherent IR functionality is always welcome.

 

China Flexes Muscles At Shanghai Gold Exchange

Jeff Nielson – Sprott Money

China’s open market purchases of gold are not the only example of China “flexing its muscles” in the gold market. Domestically, China has sought to steadily increase the role of the Shanghai Gold Exchange globally.

PLY: Spikey insights as the author refers to the ‘paper fraud’ of the western Gold markets… Wonder is the often secretive LBMA wincing?

 

CFTC Issues Order Delegating to NFA Certain Functions Related to Notices of Swap Valuation Disputes Filed by Swap Dealers & Major Swap Participants

CFTC

Private Markets

Stock Market Watchdog Permits Dragon Capital To Buy Shares In Ukrainian Exchange

Interfax

The National Commission for Securities and the Stock Market of Ukraine at a meeting on January 12 permitted Dragon Capital LLC to acquire a large stake in public joint-stock company Ukrainian Exchange (Kyiv).

Dragon Capital CEO Tomas Fiala and Conebond Limited also received the permits to acquire shares in Ukrainian Exchange.

On November 27, 2015, the National Commission for Securities and the Stock Market permitted Teta Partners Ltd. affiliated with Univer Capital (Kyiv) to indirectly acquire shares in Ukrainian Exchange. 100% in Ukrainian Exchange Holding which holds 20.64% in Ukrainian Exchange will be bought. In addition, Univer Capital plans to acquire slightly over 2% of shares in Ukrainian Exchange. Thus, the group will hold around 23% of shares in the exchange.

In December last year, Dragon Capital announced it was planning to acquire 19.99% (4,997 shares) in the exchange.

QV Premium: Exchange Deals Brief 2.

 

CSE Chairman – CCP By Q1 2017

LBO

Sri Lanka’s Colombo SE (CSE) aims to establish the CCP system, a new risk management system, by early 2017, Vajira Kulathilake, CSE Chairman said.

PLY: As I recall Brian Taylor is leading this project from the advisory side.

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX down 2%, FTIL down 1%.

Technology

CBOE To Upgrade Trading Platform

Markets Media

CBOE plans to migrate its CBOE and C2 options markets as well as its CBOE Futures Exchange to an internally developed matching engine beginning in August. The new system, dubbed Vector, will replace the current internally developed CBOE Direct platform, which the exchange launched in November 2001 and runs all three markets.

 

Cinnober To Arrange Makeathon Challenge

Cinnober

Cinnober, with its innovative Labs-facility, will be one of the organizers behind an upcoming Makeathon event that begins on January 18.

The two-week Makeathon Challenge will take place in the Swedish university town of Umeå. The Makeathon is arranged together with Sliperiet, an open, interdisciplinary innovation space for collaboration and innovation at Umeå University and Uminova eXpression, the incubator for the culture and creative industry.

PLY: Having visited the uber-funky Sliperiet at Umea University, I am sure this will be a fantastic venue for the Cinnober Makeathon Challenge – sounds like great fun! Meanwhile, in FinTech, if you are in warmer climes than the lovely, if snow environs of Umea, don’t forget my FinTech briefing session in Malta, Monday February 1st.

Products

Sebi Contemplating Action Against Commodity Manipulators

Business Standard

The regulator has collected information from exchanges as well as through surveillance reports to prepare a case for action on irrational price movements.

Career Paths

Diamonds.net reports that Israel Diamond Exchange (IDE) has appointed Eli Avidar as MD, replacing Moti Besser, who had completed two terms in the role.

Financial Calendar

19.01 – Interactive Brokers Q4 2015 Results

20.01 – SGX Q2 Results for Financial Year 2016

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

Analyst Notes

JPMorgan Chase Upgraded CME From “Neutral” To “Overweight – $96.00 Price Target

NASDAQ OMX Target Price Boosted By Keefe, Bruyette & Woods From $60.00 To $61.00 – “Hold” Rating

CBOE Price Objective Cut By Keefe, Bruyette & Woods From $70.00 to $69.00 – “Hold” Rating

A full table of current analysis can be found on our Analyst Ratings page which is updated daily.

Crowdfunding

LendingTree Announces $50 Million Stock Repurchase Program

PRNewswire

LendingTree’s BoD has authorized the repurchase of up to an additional $50 million of the Company’s common stock under the Company’s existing stock repurchase program. The Company previously announced that its Board authorized the repurchase of $10 million of common stock in January 2010 another $10 million in May 2014.

 

Equity Crowdfunding Platforms Report Strong Activity for 2015

Ron Finberg – Finance Magnates

Seedrs and CrowdCube both closed 2015 with strong fundraising results as the firms begin new campaigns for the 2016 period.

PLY: Hooray, & congratulations all round.

Other stories

CFTC Obtains Almost $500 Million Award in a Madoff Feeder Case

Andrew M Harris – Bloomberg

 

SEC Charges Goldman Sachs With Improper Securities Lending Practices

SEC

Goldman, Sachs has agreed to pay $15 million to settle charges that its securities lending practices violated federal regulations.

 

GFMA, IIF And ISDA Statement On The Fundamental Review Of The Trading Book (FRTB) Framework Issued Today By The Basel Committee On Banking Supervision

MondoVisione

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