July 02 2014

elb2

Cinnober buys BOAT, independence for equity reporting remains in Europe. Corporation Bank exits MCX. Dave Cummings back in the front line at Tradebot. NYSE raises over 60% of all US IPO proceeds in H1 while planning pre-AliBaba IPO software tests. Consolidated audit trail long list whittled down, LME plans silver fix trading ahead of London fix decision while Goldmans gets light FINRA slap on wrist for 395,000 less than best executions at Sigma-X.

Another fascinating day in the free Exchange Invest daily, happy scrolling:

Public Markets

Corporation Bank Exits From MCX, Sells Rs. 3.60-Crore (USD 600k) Shares
NDTV

Corporation Bank on Tuesday exited MCX by selling its 58,053 shares for about Rs. 3.60 crore (USD 600k) a 0.11% stake.

NYSE Leads In Global Capital Raising In H1 2014
ICE

NYSE remained the global leader in capital raising in H1 2014. With $20.7 billion in total proceeds raised from 68 IPOs, NYSE is set to outpace 2013 in total IPO proceeds.

PLY: NASDAQ as mentioned yesterday may have listed more companies but NYSE raised $20.7 billion: 61% of all proceeds raised from U.S. IPOs. Interesting side pointer is that NYSE received 4 transferred listings from other US exchanges during H1.

NYSE To Run Software Tests For Trading Firms Ahead Of Alibaba IPO
John McCrank – Reuters

NYSE will hold a test run of Alibaba highly anticipated market debut.

PLY: I remain deeply uncomfortable about the Alibaba shareholding structure. NYSE is wise to hold these tests after some recent issues with Facebook, BATS etc.

SROs Select Short List Bids For The Consolidated Audit Trail
ICE

The national securities exchanges and FINRA (collectively, the self-regulatory organizations, or SROs) have selected six bids from the list of ten RFP responses that were submitted to build and maintain the Consolidated Audit Trail (CAT). The six bids that have been selected for shortlisting are listed below in alphabetical order:

AxiomSL and Computer Sciences Corporation (CSC)
EPAM Systems, Inc.
FINRA
J. Streicher Analytics on behalf of the CATPRO Consortium: Hewlett Packard, Booz Allen, Buckley Sandler
SunGard Data Systems Inc.
Thesys Technologies, LLC

PLY: An interesting list with only Sungard as single mega-multinational (albeit alongside the CATPRO consortium) and a collection of specialist highly qualified bidders.

LME Eyes July Launch For Silver Fix Pricing (subscription)
Joe Parsons – FOW

LME is planning to launch its silver price settlement solution and test trade sessions on July 14, one month before the London Silver Market Fixing stops running the benchmark.

EI reported on June 25th that CME and Thomson Reuters made a proposal to LBMA for an alternative silver pricing mechanism and on June 16th that ten different groups want to replace the historic London silver fix.

Goldman Sachs Fined Over Dark Pool Pricing
BBC News

Goldman Sachs has been fined $800,000 by a US regulator for “failing” to ensure that trades in its dark pool took place at the best price.

The regulator said more than 395,000 trades were executed in the bank’s Sigma X dark pool at an inferior price during an eight-day period in 2011.

But it added that Goldman was “unaware” of the issue at the time.

PLY: 2 bucks an error strikes me as being in the low side given recent fines by US regulators. Goldmans have already paid $1.6 m to clients over the trades which suggests the discrepancy was incredibly minuscule aka 4 dollars per trade.

Private Markets

Shareholders Agree To Closure Of VSEL
Business Standard

VSE Sharebrokers’ Forum and investor shareholders have agreed for voluntary closure of the Vadodara SE (VSEL) after its failure to comply with a SEBI directive that it must reach a turnover of Rs 1,000 crore (USD 166.6 mln) by May 30, 2014.

PLY: A sad moment. India needs more models for bourses and simply more bourses to capitalise on the opportunity of developing markets in all forms from bottom to top.

Bitcoin Auction Ends, Mystery Bidder Wins Entire Cache
Olga Kharif & Carter Dougherty – Bloomberg

A single bidder bought a large cache of bitcoins at an U.S. government auction, part of a larger pool of the virtual currency seized from the Silk Road website.

The auction attracted 45 bidders, including New York brokerage SecondMarket Inc., and 63 bids were submitted during the 12 hours of the auction on June 27, according to the U.S. Marshals Service. The agency didn’t disclose the winner’s identity.

PLY: I wasn’t aware it was the job of government (or any auction house) to publicise auction buyers?

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX up nearly 2% on stake sale news (above). FTIL flat, Jignesh still sleeping with the convict caste, Shahdenfreude reigns west of India.

Technology

Cinnober Acquires BOAT From Markit
Cinnober

Cinnober Financial Technology announced the acquisition of Markit Trade Reporting (“BOAT”) from Markit with Cinnober taking full control of BOAT’s European trade reporting service as of July 1st. Earlier this year, Markit announced plans to discontinue the trade reporting service. However, with significant market demand for an independent trade reporting service and an extensive client base, Cinnober has decided to acquire BOAT. Cinnober has provided the core technology and operated the BOAT platform since its inception in 2007.

PLY: A fascinating, exciting and timely development for both BOAT and Cinnober. Some clients have already migrated away from BOAT. Nevertheless, Cinnober has a great opportunity to refloat this unique independent service.

The Acquisition: JPX CIO Yoshinori Suzuki (subscription)
waters technology

Yoshinori Suzuki, CIO of JPX, has overseen a massive technology overhaul during his tenure at the organization—but it’s an overhaul that he never expected to be in charge of just a few years ago.

Eze Software Launches Cloud-based Technology Framework – Eze Data Services First Offering Released On New Framework
MondoVisione

Eze Software Group, announced the launch of a new technology framework for the cloud. The first offering to leverage this new framework will be Eze Data Services, a cloud-based data hub and integration service to support position and transaction interfaces across the company’s front-to-back product suite.

PLY: Interesting development from Eze (pronounced like the cote d’Azur village/town).

Products

ICE Completes Liffe U.S. Transition To ICE; Trading And Clearing For MSCI Equity Index And Precious Metal Contracts Successfully Transitioned
ICE

Liffe U.S. MSCI equity index and precious metal contracts were successfully transitioned to ICE Futures U.S. and ICE Clear U.S. on June 30, 2014, where they trade and clear alongside ICE’s agricultural commodity and Russell index futures and options contracts.

The transition of Liffe U.S. MSCI equity index and precious metal contracts involved our global customer base with 500,000 contracts being transferred to ICE Clear U.S. and an additional U.S. $1.9 billion margin transferred to the clearing house for these positions on June 30, 2014.

PLY: How long before Russell futures are migrated through a licence change to new parent LSE I wonder?

Thomson Reuters & ICAP Expand 19901 Service For Swap Rates
hedgeweek

Thomson Reuters and ICAP Information Services (IIS) have renewed a distribution agreement which adds new electronic data sources to the 19901 service – a reference source for USD interest rate swaps and US Treasuries.

DGCX: Re-introduction Of Options On Indian Rupee Futures Contracts
MondoVisione

DME Launches New Trading Tool For Oman Futures
MondoVisione

DME, the Middle East’s premier international energy futures and commodities exchange, launched a new trading mechanism today, ‘Trade at Marker’ (TAM), for customers of the DME Oman crude oil futures contract.

Indexes

NASDAQ OMX Global Indexes Now Available Through Informa Investment Solutions
NASDAQ OMX

NASDAQ OMX a market leading provider of innovative, transparent indexes, announced 21 NASDAQ Indexes are now available to clients of Informa Investment Solutions’ Zephyr StyleADVISOR. They will also be launched within Informa Investment Solution’s PSN Enterprise in the coming months.

S&P Dow Jones Indices Introduces Dow Jones Commodity Index; Straightforward Design, Equal-Weighted Approach
MondoVisione

S&P Dow Jones Indices (SPDJI) has introduced the Dow Jones Commodity Index designed to serve as a broad-market commodity index with diversification and liquidity as its intrinsic characteristics. The Index may be used as a well-diversified, core beta exposure, or as a simple building block for customizable indices or product creation. The Dow Jones Commodity Index will serve as a complement to the S&P GSCI – the first investable commodity index and its family of indices.

Career Paths

FT reports that Dave Cummings, the founder and former CEO of Bats Trading, said on Tuesday that he would resume his role as CEO of Tradebot Systems, the HFT firm where he is chairman (in the wake of the higher publicity involving Tradebot surrounding the NY AG suing Barclays dark pool).

PLY: Anything which involves Dave Cummings in the front line is immediately excited, interesting and probably disruptive…”bring it on” I believe is the appropriate American colloquialism of encouragement.

MV reports that Bloomberg L.P. appointed 25-year marketing industry veteran Deirdre Bigley as Global CMO. She will report to Bloomberg’s CEO and President Dan Doctoroff and oversee all marketing strategy for the company and its products globally. Bigley succeeds Maureen McGuire, who joined Bloomberg in 2009 as the company’s first CMO.

FN100: Where Are They Now? Tony Mackay (subscription)
Anish Puaar – Financial News

Tony Mackay, one of the pioneers of electronic trading, is now looking to apply the principles learnt during his career in financial markets to other ventures.

PLY: As per my comment on Dave Cummings above, the same applies to Tony MacKay

Financial Calendar

This week

Record date ICAP 15.4p final dividend

New announcements

NASDAQ OMX Q2 2014 Financial Results – Thursday, July 24, 2014

NASDAQ OMX press release here.

CBOE Q2 2014 Financial Results – Friday, August 1, 2014

CBOE press release here.

SGX – Financial Year 2014 (FY2014) Financial Results – 31 July 2014

SGX press release here.

Thomson Reuters Q2 2014 Financial Results – Wednesday, July 30, 2014

Thomson Reuters press release here.

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

Other stories

ESMA Publishes Retail Investor Guide To MiFID II
MondoVisione

ESMA has published a short guide for retail investors explaining the impact of the changes to be made in investor protection under the MiFID II reform.

PLY: A useful guide welcomed by informed retail traders, and, doubtless, insomniacs, alike.

CFTC Staff Extends Time-Limited, No-Action Relief For Swap Dealers & Major Swap Participants From Compliance With Reporting Obligations
MondoVisione

CFTC’s Division of Market Oversight recently issued a no-action letter extending until June 30, 2015 the relief previously provided in no-action letter 13-34, expiring on June 30, 2014. The relief is provided to Swap Dealers (SDs) and Major Swap Participants (MSPs) from the obligation to report valuation data for cleared swaps as required by Section 45.4(b)(2)(ii) of the Commission’s regulations.

Deutsche Boerse Launches Open Innovation Forum
MondoVisione

Open Innovation forum is Deutsche Boerse’s latest initiative to keep the group at the cutting edge of financial market innovation.

PLY: All innovation is good innovation, well done Deutsche Boerse. DB1 have made their bed, CME have their investment entity, how will other exchange groups go forward as there is so much opportunity everywhere in this vast world for marketplaces…

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