January 21 2016


SGX reports flat FY 2016 results retaining multi-asset strategy with HKEx rolling out its strategic plan 2016-2018. CME & ICE file amicus brief on DRW market manipulation case – watch this space develop. Mexican exchange challenger taking shape, while Zcoin, an untraceable cryptocurrency launches, and there’s more…

Incidentally, a word of thanks to David Thomas, the indefatigable head of PR for the World Federation of exchanges for his generous remarks in an interview with PR/Media bible Gorkana. He selected a sound portfolio of conventional media sources but also singled me out thus: “Patrick Young (of Exchange Invest) is a seasoned guru of the exchange space and his daily blog is always entertaining and provocative.” Thank you for the mention David, I appreciate it. Thanks too for all the feedback of late, the Exchange Invest endeavour continues to elucidate the investors & encourage (with challenge, as required) our industry while being clearly popular with the C-suite and decision makers in market infrastructure..

Happy scrolling:

Public Markets

SGX Q2 Results Financial Year 2016


vs Q2 FY2015: revenue: $195m (USD 135.4m), unchanged, operating profit: $98m (USD 68m), down 4%, net profit: $84m (USD 58m), down 3%, EPS: 7.8 cents (5.4 cents US), down 3%, interim dividend: 5 cents (3.47 cents US), up from 4 cents.

SGX To Stay Focused On Multi-Asset Strategy

Straits Times


HKEX Rolls Out Its Strategic Plan 2016-2018


HKEX’s Strategic Plan 2016-2018

HKEX CEO Charles Li’s Elaboration on HKEX’s Strategic Plan 2016-2018

Presentation by HKEX CEO Charles Li on the Strategic Plan 2016-2018 at Annual Media Luncheon

PLY: Plan as previewed yesterday.

HKEx Seeks To Expand China Ties In 3-Year Plan

Kana Nishizawa – Bloomberg


EEX Acquires Majority Stake In PXE

FTSE Global Markets

As expected, European Energy Exchange (EEX) is acquiring 66.67 % of PXE shares, transaction expected to be closed by the end of Q1 2016, subject to approval by relevant authorities. QV Premium: Exchange Deals Brief.


Rival Aims To Challenge Mexican Stock Exchange (subscription)

Jude Webber – Financial Times

A private Mexican company, Central de Corretajes (Cencor), is planning to challenge BMV. It expects the Institutional Stock Market, dubbed BIVA in Spanish, to be up and running by the end of this year, ushering in competition, fuelling liquidity and boosting trading in Mexico by 40 per cent within three years.

BIVA, which has been in the works for three years and is awaiting final authorisation from Mexico’s finance ministry, already has one big backer: Nasdaq, who are supplying the X-stream trading platform and the Smarts surveillance system.


Exchanges Clash With Regulators Over Market-Manipulation Case (subscription)

Bradley Hope – Wall Street Journal

Last week, CME & ICE, together with representatives of the futures trading industry, jointly filed a friend-of-the-court brief opposing CFTC’s definition of “manipulation” being used in a 2013 case against DRW Investments and its founder,Don Wilson Jr. The exchanges argue that the CFTC is trying to establish a lower burden of proof for market manipulation in the case, which could open up legal trading to potential enforcement actions. Exchanges typically don’t oppose the CFTC in enforcement cases.

PLY: A very interesting legal debate. Watch this space.


Trans-Atlantic Derivatives Fight Nears End As Capital Rules Loom

Silla Brush & Julia-Ambra Verlaine – Bloomberg

Jonathan Hill, EU’s financial-services chief, said an agreement is expected shortly and that progress has been made in negotiations with CFTC on supervision of clearinghouses such as those operated by CME and LCH.Clearnet that are at the center of the market.

PLY: We’ll leave the rejoice to one side of the ledger and express sheer relief if they can finally get this agreed in a coherent fashion.


IEX CEO Vows To Fight Efforts To Water Down Exchange Request (subscription)

Andrew Ackerman – Wall Street Journal

IEX CEO Brad Katsuyama, stands firm against calls by opponents, led by firms such as NYSE and Citadel, to alter features that critics say are anticompetitive.

PLY: The old and the new vested interests fearing change to their business models are not to be listened to – albeit I thought NYSE was fairly muted as a critic, it’s the Crown Princesses of HFT who believe they have a right to gouge as they go which are really the opponents methinks.


60 Seconds With David Thomas, WFE Head Of Communications


What media outlet can’t you start your day without?

“CNBC Squawk Box is a relatively sane way to start the morning and provides the main market headlines. Myriad journalists cover my sector in market structure – FT Trading Room, Bloomberg, Reuters, FOW (Futures and Options World), The TRADE, Risk magazine. They are all excellent in their own niches and one has to keep an eye on all of them. Patrick Young (of Exchange Invest) is a seasoned guru of the exchange space and his daily blog is always entertaining and provocative.

PLY: A kind word from a good man working hard with the WFE team to make markets better. Thank you, David.


China Bars Some Financial Firms From Listing On OTC Exchange


The latest ban includes a halt on listings of certain kinds of financial firms, such as P2P lending companies and pawnshops. The suspension would not include traditional financial firms such as banks, trust firms and brokerages.


JSE Expands To Cape Town


JSE, which dates its existence back to 1887, is opening its first office outside of Johannesburg.

PLY: Lovely move, I suspect of lot of folks are eager to work in the delights of Cape Town given the fabulous surrounding area.

Private Markets

Zcash, An Untraceable Bitcoin Alternative, Launches In Alpha

David Schwen – WIRED

BTC may have become the currency of choice for the anonymity-loving Internet underground. But it’s never been anonymous enough for Zooko Wilcox. As he’ll remind anyone who’ll listen, the blockchain, bitcoin’s very public ledger of all transactions in its crypto-economy, means that unless bitcoin’s users funnel it through intermediaries or special software, their transactions can easily be traced.

PLY: The ultimate in privacy?


New IMF Staff Paper Looks At How To Reap The Benefits And Curtail The Risks Of Virtual Currencies


Dividend News

SGX declared an interim dividend of 5 cents, payable on 4 February 2016.

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX flat, FTIL off 1%, on resolution we have a(nother) hiatus, it seems.


Eleven Big Banks Test Blockchain-Based Trading System

Jemma Kelly – Reuters

Eleven major banks, including Barclays, UBS and HSBC, said on Wednesday they had tested a system that could make trading much faster and cheaper, using the technology that underpins crypto-currency bitcoin. The banks are part of a consortium of 42 major lenders, brought together last year by New York-based software company R3 to work on ways blockchain technology could be used in financial markets – the first time so many have collaborated on using such systems.


Thomson Reuters Partners With Startupbootcamp FinTech Singapore



Speakerbus & Green Key Technologies Partner To Provide Seamless Communication Between Users Of Both Platforms



Fintech: Search For A Super-Algo (subscription)

Robin Wigglesworth – Financial Times

Investment groups race to create a thinking, trading computer. But will AI machines become the Warren Buffetts of the future?


MTS BondsPro Launches European Denominated Corporate Bond Trading


MTS Markets International, part of LSEG, is launching non-US denominated corporate bond trading for US, UK and Swiss participants on MTS BondsPro, its live all-to-all trading platform for US corporate and emerging market debt.


BIST, WDM Sign Pact To ‘Institutionalize’ Diamond Trading In Turkey


Borsa Istanbul (BIST) signed an agreement with the World Diamond Mark Foundation (WDM) to “institutionalize” diamond trading in Turkey and other markets with which the bourse is connected.

PLY: A very interesting concept, I still think diamonds have huge opportunity to trade through broader exchange fora than say their traditional relatively closed wholesaler enterprises…


MOEX: Revised List Of Securities Eligible As Collateral In Derivatives Market


Career Paths

Automated Trader reports that Paul Warhurst joins ITG in Hong Kong and will work alongside PT trading specialist Simone Turtle. He joins from HSBC Securities where he worked as a cash equity and program trader.

​AlphaPoint announced that industry veteran Scott Scalf has joined its executive team. Scalf, former Director of Trade Lifecycle Systems at Deutsche Bank Global Technology, joins the company as EVP of Development Operations.

PLY: Another DB veteran joins AlphaPoint, a vendor of exchange systems focussed around cryptocurrency at its inception now eyeing other asset classes.

SEC announced that Susan Nash, Associate Director in the Division of Investment Management, will leave the agency at the end of January.

Axioma, a leading provider of innovative risk solutions for buy-side institutions, appointed William (“Bill”) Morokoff, Ph.D., as VP, Head of Research, based in New York.

Bloomberg reports that Barclays CEO Jes Staley has started a fresh round of cuts at the investment bank, with plans to eliminate more than 1,000 jobs worldwide and exit several Asian countries. The U.K. bank plans to cut about 230 jobs in the Asia-Pacific region, including winding up its cash equities business there. It will exit operations in countries including Australia, Taiwan, South Korea and Malaysia and plans to maintain offices in Hong Kong, China, Japan, Singapore and India, and keep its prime brokerage and derivatives business in Asia.

Mr. Alaa Sabei resigned from Egyptian Exchange (EGX) board due to the proximity of his resignation from Beltone Financial Holding.

Financial Calendar

New! 24.02 – NZX Preliminary 2015 Full Year Results

New! 11.02 – TMX Q4 2015 Results (press release)

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

Analyst Notes

NSE Company NSCCL Earns Top Corporate Credit Rating

Business Standard

NSE subsidiary National Securities Clearing Corporation Limited (NSCCL) received the highest corporate credit rating ‘CCR AAA’ from ratings agency CRISIL.

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


Crowdfunding Platform Ketto In Talks To Raise $5m

Anuradha Himatsingka – The Economic Times

Ketto is in advanced stage of negotiations with venture capital funds to raise another $5 million. The startup, now one of the most popular crowdfunding platforms in India, hopes to clinch its third round of funding by end-April 2016.

Other stories

Basel III Fundamentally Changes How Asset Managers Are Connected To The Financial System



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