The Exchange Invest team wishes all our American readers a very happy Independence Day.
In the parish, the ICDA CyberRisk conference in London, July 20th is an interesting upcoming event, secure a place at GBP 295 with the Exchange Invest code YOUNG295.
Meanwhile, you can now access my Brexit files in Premium through this contents directory: Brexit – Main File. Once again I cannot caution enough the dangers of reading the mainstream media on the topic which broadly reflects its own biases and not the reality of the situation…let alone delivering coherent analysis.
Today it’s the LSE shareholder vote. Given the outsize return being offered, investors would be mad not to take it but that is a very different thing from the silly crowing of investors endorsing the deal we can anticipate from the embattled and wrongfooted LSE after the vote goes ‘their’ way.
Paul J. Davies – Wall Street Journal
Brexit threatens to crack the common regulatory ground in Europe and derail the merger.
PLY: Hesse dislikes the deal, Brexit gives them more leverage. It’s a bit like having a man who is lost in the desert whose water has been poisoned but the water bottle has been holed by a different party. Who ultimately will kill him? Difficult to say but he is doomed.
John Detrixhe & Aaron Kirchfeld – Bloomberg
PLY: Given the vote now gives them free money on a more fundamental misprice than ever, investors would be mad not to support the deal even if it is highly unlikely to succeed.
Tom Buerkle – Institutional Investor
PLY: I see “stubborn” and “brave” as differently defined in my dictionary.
QV Premium: DB1-LSE Merger Brief.
Alexandre Boksenbaum-Granier & Caroline Connan – Bloomberg
Euronext NV CEO Stephane Boujnah: The U.K. vote to leave the EU is a growth opportunity for euro zone-based marketplaces and market players will have to reorganize their businesses within the EU.
PLY: I think the worry is the politicisation implicit as the minor European financial centres try to carve bits of flesh off a carcass…which is in fact still a living, viable entity. There is opportunity as Boujnah rightly assesses but the danger is in seeing a zero sum outcome which is to misunderstand both the history of this parish and financial centre dynamics as a whole. Good to see the Euronext CEO on the side of the optimists which is where the intelligent parishioners moved rapidly last week, qv the Bob Greifeld WSJ Op Ed etc.
QV Premium: HKEx – SZSE Stock Connect.
Declan Harty – Bloomberg
Poised to open in mid-August, Investors Exchange may handle 2 – 5% of volume within the next five years, Weeden & Co.’s Andrew Upward estimated. In June, IEX’s current venue handled about 1.6% of trading.
Steven Bertoni – Forbes
IEX Group won stock exchange status from the SEC on June 17th (reported here).
As an exchange, IEX will see volume surge since traders will have to execute on IEX if it has shares priced better or equal to the other exchanges. It also means Katusyama can collect high-margin fees by listing companies on his exchange.
Rob Daly – Markets Media
The 350-microsecond speed bump deployed by the Investors’ Exchange has been the most cantankerous market-structure issues in US cash equities since the NYSE attempted to keep its ‘slow quote’ a protected quote in the run-up to Regulation National Market Structure last decade.
Nick Baker & John Voskuhl – Bloomberg
“We support a financial transactions tax on Wall Street to curb excessive speculation and high-frequency trading, which has threatened financial markets,” according to a draft released Friday of the proposed Democratic platform, a summary of goals the party wants to promote. “We acknowledge that there is room within our party for a diversity of views on a broader financial transactions tax.”
The proposal is a nod to the agenda of Democratic presidential candidate Bernie Sanders, and an effort to appeal to his supporters. The draft platform’s reference to “a broader financial transactions tax” echoes a proposal from the Vermont senator, who challenged Hillary Clinton for the party’s nomination but who now says he’ll vote for her.
Bats provides the following additional information related to the Form 4 filed by International Securities Exchange Holdings (ISE).
Enoch Yiu – SCMP
The SFC has no intention of taking over HKEX’s front-line role in regulating new listings and the recent proposals are aimed at involving the SFC in the listing process at an earlier stage, according to Chairman Carlson Tong Ka-shing.
Julie Aelbrecht – FOW
ESMA has published the responses received to the Consultation Paper on Guidelines on participant default rules and procedures under CSDR.
Sangita Mehta – The Economic Times
State Bank of India (SBI) has raised Rs 911 crore (USD 135.5M) by selling 5% of its stake in National SE (NSE) to Mauritius based foreign investor Veracity Investments.
Following this deal, the valuation of country’s largest stock exchange has risen to Rs 18220 crore (USD 2.71B).
Post this transaction, SBI holds 5.19% stake in NSE, while subsidiary SBI Capital Markets holds another 4.33%.
QV Premium: India – NSE Sales Brief.
Israeli cabinet ministers on Sunday unanimously approved a bill to change the structure of the Tel Aviv SE (TASE) to a for-profit entity.
TASE’s members approved a demutualisation plan last year for Israel’s bourse, which is struggling with falling trading volumes and a declining number of listed companies.
The bill still needs parliamentary approval.
Electronic book mechanism for issuance of debt securities on private placement basis.
Taiwan SE (TWSE) has unveiled stewardship principles for institutional investors in a bid to boost the quality of the local capital market and raise shareholders’ value.
Special Section: FTI, NSEL, India at the Crossroads
PLY: MCX up 2%, FTIL slightly firmer.
Michael del Castillo – CoinDesk
ICAP has built what it refers to internally as a ‘Rosetta Stone’ for trades. ICAP invokes this term to describe its new system for managing securities post-trade workflow, one it has now encoded into a single business process. It’s designed to let any buyer transact with any broker across a wide range of possible trades.
The Joint Committee of the three European Supervisory Authorities (ESAs) – EBA, EIOPA and ESMA – has issued a joint letter to Jonathan Hill, European Commissioner for Financial Stability, Financial Services & CMU, on the delayed adoption of the joint draft regulatory technical standards on risk mitigation techniques for non-centrally cleared OTC derivatives.
Ankit Doshi & Jayshree P. Upadhyay – Livemint
New First North 25 portfolio took effect Friday, July 1, 2016.
PLY: Good news again for the highly innovative Cinnober.
ESMA published the new list of members of its Securities and Markets Stakeholder Group (SMSG) following its approval by its Board of Supervisors. The selected individuals begin a 2½ year term on 1 July 2016 and will replace the group whose mandate expired on 30 June 2016.
20.07 – ICDA Cyber Risk London Conference
20.07 – Record date WSE 2015 PLN 2.36 dividend
21.07 – Adjourned WSE Ordinary General Meeting to resume proceedings
All forthcoming exchange / investment related events are now listed in our Events page.
Chairman of Securities and Exchange Organization of Iran (SEO) Mohammad Fetanat announced that Iran Mercantile Exchange’s (IME) membership status in World Federation of Exchanges (WFE) became final.