July 06 2015

elb2So after 5 wasted years, we finally have Greece on the brink of Grexit albeit with a huge debt and all manner of problems in parallel to an existential management crisis at the IMF and a huge sense of wonderment just what the EU can achieve as crisis management is clearly not one of them. I was chatting with CBC Canada on the topic and expect to appear on various airwaves during the week! That said the macro macro economic problem is the Chinese stock market declining as that has been an engine of growth for the global economy where the EU is on the sad path of (poorly) managed decline.


Elsewhere, is NSE on the block to head towards an IPO? CME Group Pits on verge of closure. NSEL worries of witness tampering, MOEX introduces new tech safeguards, TriOptima has bonzer outcome in Oz, MEPs angry at ESMA…and much more:


Public Markets

HKEx To Introduce Volatility Controls From Mid-2016


HKEx (press release here) said it will proceed with a proposal, unveiled in January and approved by the board last month, to introduce a closing auction and other volatility curbs that would bring it in line with international peers in New York and Europe with the roll-out beginning from mid-2016.

Grexit ‘Would Bring Challenges’ For Financial Services Industry

Business Spectator

“This could be very, very chaotic,” said Mark Hemsley, CEO of BATS Chi-X Europe.

PLY: Wearing his BATS Hotspot forex hat, although re denominating existing trades sounds to me like a somewhat unfeasible errand?

Greek Crisis Hitting Outlook For IPOs – Euronext Paris Chief


Investor Exodus Expected When Athens Exchange Reopens


PLY: “The time to buy is when blood is running on the streets” was the famous Rothschild maxim which can be blended with the mating call of the northern hemisphere summer family genus: “Are we there yet?”

China Freezes IPOs In Attempt To Stem Stock Market Bleeding


China Injects Liquidity In Attempt To Reassure Markets (subscription)

Tom Mitchell & Gabriel Wildau – Financial Times

The China Securities Regulatory Commission said in a brief statement late on Sunday night that the central bank would “uphold market stability” by providing liquidity to China Securities Finance, a state entity that makes margin financing available to brokers.

China’s Push To Save Market May Add Another Victim: Brokers


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

Oil Options Pit Empties On Eve Of CME Futures Shutdown (subscription)

Gregory Meyer – Financial Times

“has become a sleepy seat of what might be called low-frequency trading.”

Previous discussions here.

Esma On ‘Thin Ice’ With Angry MEPs (subscription)

Financial News

Regulator threatened with budget cuts after ‘keeping legislators in the dark’ over the revised Markets in Financial Instruments Directive.

PLY: Given ESMA had an utterly inadequate budget to start with, clearly budget cuts can only mean eventual deregulation – or chaos. Then again when given the choice, it seems the EU has an incredible ability to choose the chaos option.

Bucharest SE Introduces New Solutions To Stimulate Investors To Trade


Private Markets

NSE Explores Listing Shares On Rival Exchange

Santanu Chakraborty – Bloomberg

National SE plans to seek board approval for an initial share sale, Chairman Sunil Behari Mathur said and is looking to cast off its SRO.

PLY: Very interesting…

Flow Traders: Passive Aggressive (subscription)

Financial Times

A way for stock pickers to play passive investing.

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX and FTIL are broadly flat as investors worry that there is some sort of fix (in the ugly sense of the word) afoot:

NSEL Investors Raise Concerns Over Ram Naresh Saraf & Primezone Developers Agreement

The Economic Times

PLY: Allegations included fear Jignesh/NSEL/FTIL are trying to materially influence proceedings…

QV our Premium NSEL Scandal Brief – Part 16.


MOEX Promises New Failover Process Following Third Data Glitch in Three Weeks

Waters Technology

MOEX will implement new precautions to ensure uninterrupted failover to its backup systems in the event of any service interruption, following the third issue with market data distribution in as many weeks. (The most recent incident involving a load balancer on Monday, June 29  was reported here).

You Can Trace A Data Platform’s Pedigree To Its MAMA (subscription)

Max Bowie – Waters Technology

With budgets still tight firms are considering alternatives to incumbent data solutions. But sometimes incumbents are so tightly integrated that they become expensive and time-consuming-if not technically impossible-to displace. Could growing support for OpenMAMA messaging API could change that.


Bank Of China Lists First Euro-Denominated Bond On LSE


NCDEX, MCX Push To Be Part Of Gold Bond Scheme

Ashish Rukhaiyar – Livemint

NCDEX & MCX are competing to be part of the government’s sovereign gold bond scheme, ahead of final guideline publication.

KRX – KOSPI: Reform Of Market Making In Bond Market And Resumption Of Collecting Trading Fee


TAIFEX To Launch RMB Forex Futures

Mike Fox – LeapRate

Taiwan Futures Exchange (TAIFEX) officially announced it’s plans to launch two RMB FX futures contracts, USD/CNT FX futures (RTF) and USD/CNH FX futures (RHF), by late July.

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

TriOptima Eliminates 2.15 Trillion AUD Notional in First Unlinked LCH.Clearnet SwapClear AUD IRS Compression Cycle


PLY: Hooray.

Career Paths

Zen And The Art Of Cracking Down On Financial Market Manipulation (subscription)

Caroline Binham – Financial Times

FCA has a secret weapon in its battle to keep markets clean. His name is Patrick Spens.

Financial Calendar

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

Analyst Notes

Goldman Sachs Cut Its Recommendation ON HKEx To “Sell” From “Neutral”

HKEx Sinks Most In 6 Years As Goldman Says “Sell”

Adam Haigh – Bloomberg

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.

Other stories

FCA Fines Top £800m So Far In 2015 (subscription)

Financial News

Fines levied by FCA in H1 were more than six times the amount charged in the same period in 2014.

Q&A By Shanghai SE (SSE), Shenzhen SE (SZSE) & China Securities Depository And Clearing Corporation Officials On Lowering Charging Standards For A-share Trading, Settlement


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