It sounds as if post LSE vote to approve a London based organisation, all of a sudden, an HQ shuffle is on the cards because nobody in their haste had the foresight to predict a Brexit vote. Not sure this double down will succeed either. However, for naked desperation on the part of both sides, this deal is now the market leader in the history of the parish. It also broadly takes the biscuit for bad organisation and dismal communications too despite the egregious fees being paid to (often OTCDerivnet) banks. Meanwhile I consistently hear from parishioners everywhere that beyond the payroll of the companies concerned there is enormous cynicism the deal will make it through multiple regulatory hurdles.
Elsewhere it’s good to see the major newswires producing some more mature comment on Brexit with the realisation dawning that shuffling clearing is a huge challenge. (You can now access my Brexit files in Premium through this contents directory: Brexit – Main File).
William Turvill – City A.M.
Executives at the exchanges are scrambling to reach an agreement over the location of their post-merger base, with pressure from Germany for the merged entity to have an EU-based HQ.
Both sides had pledged that the joint company’s HQ would remain in London as a condition of the deal.
PLY: “My word is my bond…well, maybe.” That could prove seismic.
Tim Cave, William Wikes & Eyk Henning – Wall Street Journal
Jupiter Asset Management fund manager says politics shouldn’t interfere with deal that ‘succeeds in delivering efficiency’.
PLY: I am so minded to ponder which planet Jupiter Asset Management are on when they put the phrase ‘efficiency’ in the same sentence as either DB1 or LSE, let alone the collective blob which might emerge.
QV Premium: DB1-LSE Merger Brief.
DB1 and Hale Global have entered into an agreement regarding sale of MNI (Market News International). Details of deal are subject to a confidentiality agreement.
Completion of transaction is expected within Q3 2016.
PLY: Hale is a turnaround shop it seems with few, if any, direct investments in pure financial markets currently. I was never quite sure why DB1 bought MNI. Now I am not quite sure why they are selling it.
Virtu Financial is making a strategic minority investment in SBI Japannext, a leading Proprietary Trading System based in Tokyo.
Huw Jones – Reuters
Lionel Laurent – Bloomberg
A French president taking an interest in the arcane world of financial plumbing is a sure sign of how Britain’s neighbours plan to exploit its vote to leave the European Union.
…The way French President Francois Hollande tells it, it sounds like a fait accompli. London will be forced to give up its dominance over the clearing of trades done in euros as a consequence of leaving the EU. But it’s probably safe to file this simple act of retaliation under “not going to happen.”
PLY: After a week containing a lot of idiocy, the major newswires roll out wiser heads to assess just what the threat isn’t to clearing (as I discussed in client briefings straight after the Brexit vote). Hopefully this outbreak of thinking may prove contagious into the financial press as well…
Dilip Kumar Jha – Business Standard
The relaunch of Indian Commodity Exchange (ICEX), which has Reliance Capital, MMTC and Indiabulls Housing Finance as major shareholders, is likely to face a hurdle on account of a likely conflict of interest between Reliance Capital holding a seat in the governing body of the exchange and being a promoter of a broking subsidiary.
Special Section: FTI, NSEL, India at the Crossroads
Markets closed: Id-Ul-Fitr (Ramzan Id).
Shrimi Choudhary – Business Standard
The special court of the Prevention of Money Laundering Act (PMLA) has summoned all the 68 accused named in the Enforcement Directorate (ED) chargesheet in NSEL scam case.
All the accused, including FTIL founder Jignesh Shah, MCX-SX’s Joseph Massey and former NSEL CEO Anjani Sinha, have been asked to be present before the court on July 7.
QV Premium: NSEL Scandal Brief – Part 16.
As part of its plans to upgrade its core systems to meet MiFID II requirements, LME will deploy a new, more flexible Matching system to replace the existing LMEsmart. The matching system developed by Sinara will integrate with both the Trading & Clearing systems at LME.
PLY: New bilateral system for LME. Off the top of my head while racing for pixel, I think the legacy system was from Millennium IT.
Yuko Takeo & Toshiro Hasegawa – Bloomberg
More transparency about strategies and their effects needed. But OSE Head Hiromi Yamaji adds HFT “absolutely necessary”.
EC launches a new public-private partnership on cybersecurity that is expected to trigger €1.8 billion of investment by 2020. This is part of a series of new initiatives to better equip Europe against cyber-attacks and to strengthen the competitiveness of its cybersecurity sector.
Philip Stafford – Financial Times
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
New! 19.07 – IBKR Q2 2016 Results – press release
New! 03.08 – TMX Q2 2016 Results – press release
New! 04.08 – Bats Q2 2016 Results – press release
All forthcoming exchange / investment related events are now listed in our Events page.
In connection with a monthly share savings plan for employees of subsidiaries, Oslo Børs VPS Holding has allotted 1861 shares to employees.
Jeremy Quittner – Fortune
Alex Brummer – Daily Mail
Four years have passed since ‘Master of the Universe’ Bob Diamond revealed that something rum was going on in the Libor market.