July 01 2015

Today in Exchange Invest:elb2

 

No apparent damage from the leap second. Greeks to fold in biggest Euro denominated poker game after default? Helex settling but still closed for trading. Plus 500 redefining “Business as Usual?” Flow IPO worth almost $2 billion? NASDAQ ponder SME pricing issues and more. Meanwhile, on a busy summer’s day, the big news from China is that the number of stock investors has surpassed the membership of the Communist Party….

 

Public Markets

BGC Partners Updates Its Outlook For Q2 2015

MondoVisione

PLY: Dollar impacts to the fore as BGC integrates GFI Group into the statements.

Greece Exchange Settlement Resumes As Market Stays Closed

John Detrixhe – Bloomberg

PLY: June 25-26 trades pre market close are being settled.

Plus500 Says Everything Is Back To Normal & It’s ‘Business As Usual’

Oscar Williams-Grut – Business Insider

PLY: Vast majority of UK accounts (13,499 apparently) may be operative again but I do fear for the creep of definition when Plus 500 refers to “Business as Usual.”

Plus500 Revenues Have Nearly Halved After Money-Laundering Checks

Evening Standard

Plus500, Absent Numbers, Materiality & Blame (subscription)

Dan McCrum – Financial Times

Customer revenues plunged from $82 million (£52.2 million) in Q1 to $43 million in Q2.

PLY: Dan McCrum nails it once again.

Latest in FT Alphaville Plus500 series Plus500, MeVideo Ltd and a question of disclosure, Plus500 thaw update

Read our Premium Plus500 Turmoil & Deal – Brief – Part 1, Part 2.

Flow Traders Seeks €1.7bn Valuation From Upcoming IPO (subscription)

Philip Stafford – Financial Times

Group which has lost just €2m from trading in over 3 years, said forthcoming IPO price range would be €29-€37, market cap €1.35bn-€1.72bn, greater than the €1bn valuation mooted earlier this year…

PLY: At least Flow will get to IPO. Remember when Hull Trading filed with Goldmans and the company was bought by its advisor before anybody else had the chance to shine further transparent light on Blair’s brilliant team?

Nasdaq Advocates For U.S. Stock Exchange Pricing Reform

Reuters

Nasdaq said on Tuesday that U.S. equities exchange rules should be changed so that the price of trading a stock is based on the how actively it trades, echoing a similar proposal by rival exchange operator BATS Global Markets (reported here and here).

In a letter to Nasdaq’s customers, Tom Wittman, global head of equities, also voiced the exchange’s support for a plan by U.S. regulators to test widening the increments, or “ticks,” at which smaller companies’ stocks are priced to see if doing so helps improve market liquidity.

PLY: Now the test is on, I want to see the data for small caps… Meanwhile I am interested to see how NASDAQ approaches improving the treasury market.

ESMA Publishes The Final Report On Draft Technical Standards On MiFID II & MiFIR

MondoVisione

ESMA Consults On Regulatory Technical Standards Under The CSD Regulation

MondoVisione

Second Consultation Paper (CP) is limited to the provisions on buy-in of the draft RTS and is seeking input and quantitative elements from stakeholders on the different options presented in the paper.

Hong Kong Needs New Stock Board For Chinese Tech Firms, Start-Ups (subscription)

Enoch Yiu – SCMP

Francis Leung Pak-to, known as the “Father of Red Chips” and newly elected Chairman of the Chamber of Hong Kong Listed Companies, believes Chinese tech companies should not be listed on the main board but on a separate tranche, or a revamped Growth Enterprise Market (GEM).

BM&FBovespa To Review Rules For Novo Mercado

Reuters

A plan to strengthen corporate governance rules for state-controlled companies will be heard at a public hearing for 90 days…

How 12-Yr-Old Idea Of Sebi-FMC Merger Is Finally Becoming A Reality This September

The Economic Times

Big institutional changes in India often follow big crises.

PLY: Sadly big resolutions don’t seem to follow big crises.

Read our Premium SEBI-FMC Merger Brief.

EEX, EPEX SPOT, Gaspoint Nordic & Powernext Publish Common REMIT Data Services Agreement

MondoVisione

 

Private Markets

SDiX To Launch World’s First Physically Settled Diamonds Exchange In Singapore

Chan Yi Wen – Business Times

The launch of Singapore Diamond Investment Exchange (SDiX) is targeted to go live in September 2015. Vertex Ventures Holdings, a fully owned venture capital subsidiary of Temasek Holdings, is an investor of SDiX. The exchange will start with two dedicated physical vaults, one operated by Malca-Amit in Singapore Le Freeport and the other operated by Malca-Amit within the Bharat Diamond Bourse in Mumbai.

CLTX Fuel Oil Market Maker “Lights Up” In Asia Hours

CLTX

 

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX and FTIL both up over 2% as hearings are adjourned…

FTIL Case: CLB Adjourns Hearing To Sept 2

The Hindu Business Line

The Company Law Board (CLB) has adjourned till September 2 hearing on the Ministry of Corporate Affairs (MCA) petition to supersede the Board of FTIL.

FTIL was directed to maintain status quo (on sale of assets) till September 2 without affecting the operations of the company.

Read in Premium NSEL-FTIL Merger Brief.

 

Technology

Scila Surveillance Deal With Irish SE

MondoVisione

PLY: Update to yesterday, Scila providing surveillance tech which DB1 will host.

Thomson Reuters Launches Open Source Market Data APIs

MondoVisione

Goldman To Pay $7 Million Over Options Glitch (subscription)

Justin Baer & Angela Chen – Wall Street Journal

…to settle SEC charges that concerning that August 2013 glitch. Strikes me as chicken feed compared to what banks have been paying recently for some rather vague accusations on the fixing front…

SEC Charges Goldman Sachs With Violating Market Access Rule

SEC

CME Delays Globex Market Open For July 1 On ‘Leap Second’

Ben Sharples – Bloomberg

CME delayed the open of its CME Globex market trading for July 1 as international clocks are adjusted to account for a leap second.

New DTCC Data Products Service To Provide Dynamic Data Provisioning & Easier Access To DTCC Data

MondoVisione

Bond Traders Face Pitfalls Of Technology (subscription)

Joe Rennison – Financial Times

PLY: This sounds like something where FIQA, the industry quality body started last month ought to be involved helping coordinate standards?

Nasdaq’s BWise Launches Sarbanes-Oxley Software Solution For New Public Companies

Nasdaq

Fidessa Unveils New Low-Latency DMA Platform

Finextra

Banks & Exchanges Turn To Blockchain (subscription)

Philip Stafford – Financial Times

PLY: Phil endeavours to get to grips with an issue which is at once fascinating, and perhaps the most broadly misunderstood financial innovation I have seen. The bandwagon jumpers are all in there and some media have suddenly breathlessly done a volte face on the Blockchain. However, the situation is both much more complex and much more exciting than is broadly being discussed. Incidentally, this will form a key theme during my Young Markets conference, in Warsaw September 17th.

FAO: Last week Nasdaq named Chain as its partner for a pilot (announced in May) to test blockchain for trading shares in private companies.

 

Products

China Targets Counterweight In Gold Trade With Yuan Fix

Reuters

Plans to establish a yuan price fix mark one of Beijing’s biggest step so far to capitalise on the country’s position as the world’s top producer and a leading consumer.

Read our Premium China Capital Markets Transformation Brief – Main File.

NCDEX Planning To Add More Commodity Mini Contracts

Vimukt Dave – Business Standard

Over 5,000 new clients have traded in minis on NCDEX.

NCDEX Writes To Rajasthan Government On Stock Limit Exemption

Dilip Kumar Jha – Business Standard

To avoid seizure of depositors’ goods stored in regulated godowns, NCDEX is highlighting exemption of stock limit on WDRA (Warehousing Development and Regulatory Authority) registered warehouses.

 

Indexes

FTSE Russell Plots Fixed Income Push (subscription)

Financial News

Fresh regulations and a retreat by banks have thrown up opportunities for index providers.

OJK, IDX Mull Plan For Separate Stock Index For SMEs

Lona Olavia – Jakarta Globe

 

Career Paths

KDPW and KDPW_CCP re-elected Dr Iwona Sroka as President of the Management Board for the next term of office alongside Sławomir Panasiuk as VP and Michał Stępniewski as Member of the Management Board.

Waters Technology reports that SR Labs appointed Jennifer Nayar as CEO. Nayar was most recently technology chief of staff at Redi Global Technologies, prior to which she spent four years at NYSE.

Cantor Fitzgerald Europe appointed Philip Dixon as COO.

JonesTrading Institutional Services named industry veteran Bryan Turley as MD of JonesTrading’s Capital Markets Group.

DB1s New CEO Unveils Management Revamp

Reuters

DB1 is set to launch a management revamp Wednesday aimed at making better use of middle managers’ knowledge, as Carsten Kengeter, its new CEO seeks to spur growth at the German exchange operator, including through acquisitions.

Carsten Kengeter is creating a Group Management Committee (GMC) tasked with improving information flows, reviewing investment proposals and taking leadership of special projects.

PLY: Interesting first set of incremental changes, Jeff Tessler to chair Clearstream leaving CEO duties to others while Thomas Book and Gary Katz are amongst those on the new GMC – albeit this body is clearly senior management not the middle – it will be interesting to see what is planned for that tranche.

QV Premium post Dear Carsten – An Open Letter to the New DB1 CEO.

 

Financial Calendar

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

 

Share Notes

ICE insider Thomas W. Farley sold 7,887 shares Friday, June 26th an average price of $226.48 (bargain $1,786,247.76). He now owns 7,239 shares. See all ICE insider stock transactions on our dedicated page here.

 

Other stories

There Are Now More Stock Traders In China Than Communist Party Members

Bloomberg

Stock investors of the world unite! For the first time in modern China, you outnumber the Communists.

The nation’s $8.1 trillion equity market now has more than 90 million individual investors, according to China Securities Depository and Clearing Co. compared with 87.8 million Communist Party members at the end of last year.

Read our Premium China Capital Markets Transformation Brief – Main File.

ESMA Publishes Guidelines For Issuers Performance Measures

MondoVisione

Building A Stronger Single Market In Capital, Jonathan Hill, European Commissioner For Financial Stability, Financial Services And Capital Markets Union, TheCityUK Annual Conference, London, 30 June 2015

MondoVisione

Read our Premium EU CMU Brief.

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