July 02 2015

elb2I suspect it may be best to steer clear of the more international regions of cable tv today as you may catch me on either CCTV and/or RT. If you need a brief primer on Greece’s options, then I have a column here.

Today in Exchange Invest Daily: Playtech buying forex brokers with gusto, Indian blob in classic contradictory form, TriOptima compressing with customary gusto, concerns about HFT regulation, SGX stock leaps, coworking spaces are the new pits, Euronext signs an MOU even I get excited about. Tanzania approaching IPO launch pad while KRX is coming soon too…(and as always, there’s more) happy scrolling:

Public Markets

UK’s Playtech Expands Online Trading With Ava Trade Buy

Teddy Sagi’s Playtech Plc agreed to buy currency trading platform Ava Trade for $105 million to expand its online trading platform acquiring via its subsidiary, TradeFX, (itself acquired in April).

FAO: Playtech said earlier this month that it is raising $350 mln, placing up to 29,050,000 Ordinary Shares (price TBD) through an accelerated bookbuild, to fund acquisitions.

Playtech also holds 9.36% of Plus500, with good chances for a merger success at EGM July 16th, as management/founders hold 35.6% whereas Odey has 25% in opposition against a simple majority vote.

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

CERC Asks FTIL To Sell Stake In IEX By July 20
Business Standard

CERC asked FTIL to sell its stake in IEX by July 20. Notably, this runs contrary to another order by CLB, which has asked FTIL not to sell any assets till September 2.

Earlier this week CERC ordered FTIL to transfer by July 2 its entire 26.6% shareholding in IEX.

Recently FTIL signed a new agreement to sell 16.6% of IEX.

Read our Premium FTIL Stakes Sales Brief.

LME Launches New Round Of Warehousing Rules Proposals (subscription)
Ese Erheriene – Wall Street Journal

LME’s consultation (read here), will close Aug. 17.

Singapore Regulator Gives First Warning On Trading SGX Stock
Jonathan Burgos – Bloomberg

PLY: SGX stock makes an unexpected near 5% great leap forward. MAS delivers mandatory mantra, warning that any dodgy deals will be punished.

Out Of The Pits, Chicago Traders Seeking Booths With A View
Karl Plume – Reuters

PLY: It looks to be farewell to the floor, hello coworking space in all pits soon…

Speed Traders Now Have A Way To Cut Out Brokerages In Japan
Yuji Nakamura & Toshiro Hasegawa – Bloomberg

It took them six years, but high-frequency traders have finally secured a perfect way to lower brokerage costs in Japan: cut out the middlemen.

INTL FCStone To Consolidate Its 3 U.S. Subsidiaries
Mike Fox – LeapRate

INTL FCStone completed the merger of three of its regulated U.S. subsidiaries into INTL FCStone Securities Inc. as registered broker-dealer and FCM, as of July 1st.

CSRC Relaxes Rules On Margin Trading

China Securities Regulatory Commission said it would cancel a rule that said investors needed to make additional guarantees if the ratio of capital they borrowed from brokerages reached 130 percent of warning levels.

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

EnterNext Launches Techshare To Assist Unlisted European Tech Companies As They Move To Listing – 30 High-Growth European Innovators Selected For EnterNext’s TechShare Programme

Euronext Signs MOU With ICBC

PLY: A serious meeting of serious minds in this press release: Mr JIANG Jianqing, Chairman of ICBC who I had the pleasure of chairing at the Moscow Open Innovations Forum last year, and Lee Hodgkinson, Euronext’s Head of Markets. Two of the most interesting people with whom to discuss markets IMHO.

Private Markets

Pressure Rises On India Exchanges To List (subscription)
James Crabtree – Financial Times

Dozens of international investors bought stakes over the past decade in both BSE and NSE, many in expectation of an eventual flotation.

Previous discussions earlier this week.

PLY: The frustration festers as the ghost of the deeply flawed and (apparently) broadly discarded Jalan Plan for a sort of Communist collective of, ahem, rent controlled ‘for profit’ Indian exchanges continues to leave India in a limbo. The economy develops while market infrastructure is stuck in regulatory controlled suspension of progress.

China Launches New Oil And Gas Trading Platform

Shanghai Petroleum and Natural Gas Exchange (SHPGX), registered in the Shanghai FTZ will initially only handle natural gas transactions during a test run.

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

S.Korea Plans Overhaul Of Bourse Structure To Attract New Listings
Joyce Lee – Reuters

KRX Pushes For IPO
Kim Eun-jung – Yonhap

Korea Exchange (KRX) is set to become a listed holding company that will foster more competition between its boards under government reforms aimed at better attracting firms seeking to go public.

PLY: Korea moves forward – no date for IPO but this is progress…

FAO: In April KRX said it is determined to boost its derivatives market alongside the long-term plan to expand its overseas business after it was reprivatized in February following six years of government control.

Read our Premium KRX IPO Brief.

Tanzania SE Plans Share Sale In Six Months

Dar es Salaam SE (DSE) plans an IPO within six months to improve its governance and raise funds for expansion. The exchange has 22 listed companies whose total market capitalisation is 24.5 trillion shillings ($12.31 billion). It also has listed corporate and government bonds worth 4 trillion shillings.

Read our Premium Exchange Deals Brief.

BTC Surges As Greeks Rush To Buy In
City A.M.

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX & FTIL both up circa 1.5%

Further Delay Likely In Final Decision On NSEL-FTIL Merger
Ashish Rukhaiyar – Livemint

The ministry of corporate affairs (MCA) had granted personal hearing to both FTIL and NSEL next week. But while NSEL will present its case as per schedule, FTIL’s hearing has been postponed by 4 weeks.

Read our Premium NSEL-FTIL Merger Brief.


Markit Completes Acquisition Of Information Mosaic

ASX Selects Nasdaq’s Post-Trade Risk Technology To Manage Real-Time Risk Across Clearinghouses

Sentinel Risk Manager will provide a single, real-time risk management system across both ASX clearing houses and all asset classes, including real-time margin calculation and related customer risk analytics. The new risk system will be implemented in five phases over the next two years.

ASX Tech Chief Says Overhaul Unique
Shaun Drummond – SMH

ASX CIO Tim Thurman says the mammoth overhaul of the ASX’s systems is unique in his long experience of exchange technology because everything is being replaced – including systems that are nearly 30 years old.

PLY: Indeed a big job particularly as ASX has not been in the mood to change systems for many many years. Mr Thurman remains the manager within ASX who is delivering. True, to be fair, Pete Hiom is holding the operation together day to day but alas the plodding monopolist remains without vision or ambition beyond, well, plodding monopoly.

India – Algo Trading In Domestic Commodities Sees Sharp Spike
Ashish Rukhaiyar – Livemint

MCX has seen the share of algo trades more than double in most commodities since January this year. The share of algo trades in commodities such as crude oil, copper, natural gas and silver rose to 30% from 3% in January. Commodities such as aluminium, gold, lead, mentha oil, nickel and zinc currently see 15-25% algo trades in overall trade from less than 10% in January.

PLY: “All western regulators are struggling with complex algo strategies. Given that the Securities and Exchange Board of India (Sebi) is inherently less pro-market than even many EU regulators, I find it challenging to believe Sebi (pre- or post-FMC merger) is really in a good place to coherently understand and regulate algo trading without a significant upgrading of their capacity,” said Patrick Young, executive director at DV Advisors, a Europe-based capital markets advisory firm.”


TriOptima Eliminates ¥79 Trillion Notional In Latest JSCC Japanese Yen

PLY: …and as always I praise the minds who delivered the bounteous simplicity of compression…

Career Paths

Former ICE Clear US COO Lynn Martin has been named President & COO of ICE Data Services, where she will manage the global data teams and platforms including ICE and NYSE market data, SuperDerivatives, the SFTI network and colocation business.

David Goone, ICE’s Chief Strategy Officer, has been appointed Chairman of ICE Data Services in addition to his current roles.

ICE press release here.

Duncan L. Niederauer, the former CEO of NYSE Euronext, joined the board of directors of Fantex Holdings.

“Duncan is a true Wall Street pioneer, and we are excited to welcome him to our board,” said Fantex Holdings’ Chairman & co-founder David M. Beirne.

PLY: I was about to say this must be a different Duncan to the one whose rank value destruction we have experienced first hand in our parish but apparently not. Despite this hire, Fantex, is an interesting concept, akin to part of the potential for sports-related securities I had in mind all those years ago before becoming a founder even of Intrade/GSX. There is huge product opportunity in this nexus and it has barely been considered.

QV Premium posts: Did Duncan Do Due Diligence?, Duncan Niederauer Fund Manager – An Essential Due Diligence Resource and Duncan Niederauer – A Brief Review.

ICAP appointed Jenny Knott as CEO Post Trade Risk and Information Services.

FastMatch appointed David Jones as Director of Sales.

Financial Calendar

New announcement – SGX full-year results FY2015 – 29 July 2015

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

Analyst Notes

Keefe, Bruyette & Woods Hoisted Their Target Price On CME From $98.00 To $100.00

Keefe, Bruyette & Woods Lowered NASDAQ OMX From “Outperform” To “Market Perform” – $55.00 Price Objective

Tullett Prebon Downgraded By Canaccord Genuity To “Hold” – GBX 375 Target Price

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

All Analysts, Banks and Brokers are welcome to contribute to this section.


ESMA Issues Q&A On Anti-Money Laundering And Investment-Based Crowdfunding Platforms

PLY: Essentially common sense it seems to me from a skim.

Other stories

Esma Consults On Mandatory Buy-Ins (subscription)
Financial News

Europe’s markets watchdog starts consultation on controversial proposal that could harm bond market liquidity.

Monetary Authority Of Singapore Consults On Proposed Regulations For Mandatory Clearing Of OTC Derivatives

From Social Networks To Market Networks
James Currier – TechCrunch

Market networks will produce a new class of unicorn companies and impact how millions of service professionals will work and earn their living.

PLY: Interesting, crunchy and to be considered in more detail. QV Marcus Cake’s “Wisdom Networks” too btw…

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