JANUARY 23 2017


And so we reach issue 916 which is best known for corresponding to a Porsche which actually made a rather more silky purse out of the 914’s ugly duckling to mix a metaphor or two.

Many thanks to the good folks of Mimcol for the invitation to the excellent Economist World in 2017 dinner in Malta Friday night, interesting evening.

In Video

FinTech, PLY, “Victory or Death” – the future of finance.

In Today’s Exchange Invest

It can only be seen as a shock that Garry Jones has suddenly stepped down with immediate effect from LME. I had asked for a reboot over the fraud fiasco but that wasn’t predicated on what now amounts to the decapitation of Garry’s team as his COO and fellow former LIFFEr Stuart Sloan left late last year. We had heard tales of some infighting between Hong Kong and London but this is rather more explosive than had been anticipated!

And there’s more: such as word the EU (rightly) fears unleashing an unhealthy monopolist if it allows the DB1-LSE merger. Happy scrolling:

In BigWorld

Bit of an own goal for the Trump campaign to say it was the biggest inauguration given that the 96% of Washingtonians who voted for the Hillary entitlement movement weren’t likely to turn up. Then again good to see that at least President Trump’s only involvement in a busty scandal involved some idiot from Time Magazine not looking across the room to see Martin Luther King still in situ. Moreover, I am very pleased to note, the bust of Winston Churchill returned to the Oval office after being absent for some time. MLK and the world’s greatest Winston, that seems like a fitting balance to me.

Public Markets

London Metal Exchange Chief Executive Retires
MondoVisione

PLY: Shock news as Garry Jones leaves the building today but is being retained for 2017 as an advisor. The lack of transparency over the fraud issue was a major worry for the parish and yet there appeared no appetite to clarify just what has been happening at LME. Matt Chamberlain finds himself propelled into the acting CEO position having only taken on the COO role in recent weeks after the ousting of Stuart Sloan.

A cleansing of the air is still required (without touching sub judice issues). There was no active external movement seeking Garry’s scalp, albeit many who were increasingly concerned about his rather hubristic approach in recent times, will not be overly disenchanted by the news.

EU Said To Warn DB1-LSE Merger May Crush Rivals
Bloomberg

PLY: Stories emerging from the EU Statement of Objections suggest the EU’s antitrust authorities are indeed somewhat closer to seeing the market as a market for CCPs overall as opposed to the deft but outrageous non-sequitur being promulgated by the eager to merge parties.

LSE Confident French Will Allow Its Merger
Telegraph.co.uk

Fix, Don’t Kill, The Volcker Rule: Trump Treasury Pick
CNNMoney

ICE Clear US Files To Accept Only Dollars As Margin
FOW magazine

ICE Clear US, the Intercontinental Exchange’s main US clearing house, has applied to change its collateral policy to accept only US dollars…

Derivatives-Margin Clarity Sought On CCP Resolution Rules
Reuters

Private Markets

BSE IPO: Love It, Hate It, Can’t Ignore It
The Hindu

PLY: Good article by Ashish Rukhaiyar which quotes one Patrick L Young extensively…I must admit I agree with his views…

Bse IPO: Makes Sense
Hindu Business Line

So, the asking price is not expensive. MCX , the only other listed bourse in the domestic market , trades at about 31 times likely earnings of 2017-18…

FBI, EU Fraud Authorities Hold Emergency Summit On Binary Options Fraud
The Times of Israel

PLY: Explosive and excellent news – the Times of Israel rightly notes the reluctance of Israeli authorities to act as a lens for this story which suggests the EU and US are serious about decimating the shonky folks who have taken the binary options product and turned it into a sleazy ponzi scheme.

Stock Exchange Targets UK Firms In Fresh Bid For Brexit Business
Irish Independent

The Irish Stock Exchange ( ISE ) has launched a marketing offensive in the UK to encourage British companies to establish listings in Dublin ahead of Brexit.

New Colombo SE Board To Attract Maldivian Firms
The Sunday Times Sri Lanka

Ghana SE To Sign Mou With Casablanca SE
Graphic Online

Sebi To Bourses: Give Market Participants Access To Data Fairly
Business Standard

PLY: More reaction to the co-location preference issues at NSE…

Special Section: FTI, NSEL, India at the Crossroads

NSEL Fraud: HC Stays Freeze Of Accused Company’s Accounts
Hindustan Times

Jignesh Shah & The Nsel Scam: New Book Looks At Decimation Of Ftil Head’s Empire
Firstpost

PLY: Except from a new book I mentioned last week (The Target by Shantanu Guha Ray). There is also more from the Tumblr pages I mentioned the other week too:The Target Book. It strikes me the tome looks remarkably like a modicum of whitewash for JS but I have yet to read the book myself.

Technology

Deutsche Börse Presents Blockchain Concept For Risk Free Cash Transfer
MondoVisione

PLY: CCP-centric cash transfer, not dissimilar to one of the concepts we produced about 4 years ago within DV Advisors.

Products

Exclusive: China Quietly Shelves Plans To Launch Shanghai Crude Oil Futures
Reuters

PLY: Setback for China’s endeavours to have its own oil benchmark whereas in Singapore:

SGX To Open LNG Index, Seeking To Establish Benchmark
MarketWatch

The latest move is in collaboration with brokerage Tullett Prebon , for LNG delivered to ports in Dubai, Kuwait and India.

Sebi Asks Exchanges To List Commodities For Curbs In Futures Trading
Business Standard
Moscow Exchange Listing Reform: Results Of The First Phase
MondoVisione

Moscow Exchange Listing Reform: Results Of The First Phase
Exchange News Direct

Career Paths

CFTC Names J. Christopher Giancarlo Acting Chairman
CFTC

PLY: An able candidate in pole position and one very ably qualified to be the first CFTC Chairman who is more an OTC player than an ETD one which is a good thing for this agency.

Former CBOE Member Arrested On Fraud Charges
Chicago Business Journal

A former board member of the Chicago Board Options Exchange was arrested Wednesday after a federal grand jury indicted him on multiple counts…

PLY: The Fed already obtained a $21.8 million default judgement against the former CBOE director Alvin Wilkinson last year

Moscow Exchange To Announce New CFO
Exchange News Direct

Evgeny Fetisov, Chief Financial Officer of Moscow Exchange , will leave his current position at the end of the first quarter of 2017 to take up a post at another company, MOEX anticipates announcing a replacement by the end of this quarter.

Further Shake-Ups At TP ICAP, Iain Plunkett Appointed COO
Finance Magnates

PLY: Fills the position left by Ken Pigaga who didn’t move to TP ICAP; joining from equivalent role at Aberdeen Asset Management.

Gregory Dean Joins FINRA As Senior Vice President, Office Of Government Affairs

Last week the Blackrock Chairman Larry Fink struck a discordant note on the world, supporting the merger of equal destruction ata DB1 reception and even suggesting Angela Merkel was competent. Now he has employed the abjectly inept spendthrift, third rate Machiavellian, former British Chancellor of the Exchequer George Osborne as Senior Advisor. #Scary.

Crowdfunding

Crowdfunding Site Seedrs Backed By Neil Woodford Partners With Chinese Venture Capitalists
This is Money

For Crowdfunding To Succeed, We Must Level The Playing Field
The Globe and Mail

PLY: 12 months on Canadian crowdfunding is being stifled by regulation

P2P Lender Linked Finance Receives Backing From Eiffel Investment Group
Crowdfund Insider

Linked Finance, an Irish peer to peer lending platform, has signed an agreement with Eiffel Investment Group to back Irish SME loans.

Equity Crowdfunding Is Here … And It’s Total Rubbish
Crowdfund Insider

The Company That Crowdfunded A Mind-Reading Headset For Dogs Finally Admits It Never Worked
BGR

PLY: I just could not resist this epic headline…

Indiegogo Wants To Reclaim Its Momentum With A Renewed Focus On Entrepreneurs
Fast Company

Can Gofundme Be The Future Of Philanthropy If The Alt-Right Uses It To Raise Funds?
Co.Exist

PLY: In other news: can wheat be the future of bread even though all Communist regimes have grown it (albeit haphazardly)?

Other Stories

How Forex Brokers Went Bankrupt Overnight Amid Eur CHF Flash Crash – Infographic
LeapRate

PLY: Interesting to remember how the forex market saw many leveraged retail players dismembered a year ago.

Investors Urged To Look Hard At Routing
Pensions & Investments

European Commission – Fact Sheet: Public Consultation On The Capital Markets Union Mid-Term Review
Europa.EU

Three Minute Trading Halt At Tehran Stock Exchange In Honor Of Victims Of Blaze At Plasco Building
MondoVisione

PLY: Our condolences on this national tragedy.

Thanks as always for reading Exchange Invest and have a great day.

Best wishes,

Patrick

Patrick L Young
Executive Director DV Advisors

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