July 07 2016

elb2Lots of stories to scroll today…


Meanwhile In Bigworld, actor Tom Hiddleston apparently isn’t faking his affection for Taylor Swift but has been under stress from the impact of Brexit. If that doesn’t make you happy to concentrate on Exchange Invest Daily, I don’t know what will…

Public Markets

DB1 Tells German Politicians: Merged Stock Exchange Will Have EU HQ

William Turvill – City A.M.

HQ Not An Issue In DB1/LSE Merger

Andrea Thomas – MarketWatch

Germany’s finance minister, Wolfgang Schäuble, argues the location of its headquarters was “not the most important” question hanging over the deal.

QV Premium: DB1-LSE Merger Brief.

PLY: Given how Mr Schauble has had an uncanny knack of nailing his colours to the losing side of the argument for some time, I am not sure DB1 ought to view this as good news. At the same time, the material deal term change surely cannot have been decided just since Monday’s LSE vote if it has already been relayed to German politicians, can it? Presumably we should keep an eye for LSE stationary changing the motto to “My word is my, oh whatevs…”


EU Finance Chief Wants System To Wind Down Troubled Clearing Houses

Francesco Guarascio – Reuters

The EU should set up a mechanism to wind down troubled clearing houses, Valdis Dombrovskis, said on Wednesday, setting out his priorities after replacing British Commissioner Jonathan Hill as financial services portfolio post Brexit vote.

PLY: I am not sure VD really understands what he is saying (at least based on his national political career in Latvia) BUT this says a lot about the EU’s priorities. Now what else is on the agenda? Oh yes, a group which has a fairly uncertain plan for a too big to fail clearinghouse merger with a theory they can collateralise across borders what others cannot…


Nasdaq is Global Leader for New Listings in H1 2016


Nasdaq welcomed a combined 176 new listings – including 68 IPOs – in H1 2016 to its U.S. & Nordic exchanges, maintaining its position as the leading global exchange venue.  This includes DONG Energy – the largest IPO of 2016 YTD across global exchanges – and a record number of 13 company listing transfers from NYSE.

PLY: Impressive NASDAQ H1 numbers from across its multiple exchanges.


New EU Market Abuse Rules Pose Challenges for U.S. Issuers (subscription)

Mara Lemos Stein – Wall Street Journal

With the new Europe-wide market abuse regulation now in place, the once lean rule book of some exchanges housing securities of U.S. issuers has grown heavy…


SEC Approves NYSE Request For New Market Volatility Rules

Chuck Mikolajczak – Reuters

In a ruling released on Tuesday approving plans to speed up and smooth early morning trading in times of market stress, the SEC said the NYSE could allow stocks to open for trading on particularly volatile days, even in the absence of clear price disclosure that is normally required before trading opens.


The JSE T+3 Project Goes Live


On Monday, July 11th, the Johannesburg SE (JSE) will complete its move to  T+3 settlement.


Trading: What Happened When The Pit Stopped (subscription)

Gregory Meyer – Financial Times

The Nymex floor brought wealth for many without pedigree but electronic trading has blocked the path.

PLY: As parishioners may recall, when the GLOBEX centre was opened to encourage electronic trading, I had the pleasure of lecturing CME traders on methods to make the move to electronic trading. The story here just reviews what was a story in 2000 AD for those with foresight and has become a glossy magazine feature for the FT some 2 decades after it was originally discussed.

Private Markets

Chairman Ashok Chawla: NSE Listing Will Enhance Corporate Governance


Shareholders have been pressing for early listing to derive benefit of a good valuation.


NSE Officials To Meet Sebi Panel On Alleged Algorithmic Violations

Jayshree P. Upadhyay & Anirudh Laskar – Livemint

Interaction expected to help Sebi form opinion on allegations after NSE explains its case; meeting set for 7 July.


SSE Is Little More Than A Casino (subscription)

Jake Van Der Kamp – SCMP

Shanghai SE (SSE) has yet to get the balance right between industry and investors’ interests.

QV Premium: China Capital Markets Transformation Brief – Main File.


New Sebi Norms To Enable Investors Exit 3,000 Firms Of Defunct Exchanges

Anirudh Laskar – Livemint

Sebi is likely to introduce new norms to ensure that the money of investors in around 3,000-odd firms delisted from defunct stock exchanges is not stuck indefinitely.

Former Employees Of UP SE To Protest

Business Standard

Former employees of the now defunct Uttar Pradesh SE are planning to protest against the forced voluntary retirement scheme offered to them when the exchange closed last year, as well as demanding their jobs back.

QV Premium: Indian Exchanges Shutdown – Brief.


PEGAS: Danish Gaspoint Nordic To Join PEGAS Platform



Russian Banks Form Private Blockchain Consortium


Russian banks and financial services firms have come together to form the country’s first financial blockchain consortium, a coalition that will seek to explore and implement blockchain solutions in the banking and financial services industries.


Ex-Secret Service Agent Who Investigated Silk Road May Have Stolen Another $700,000

Network World

Ex-U.S. Secret Service Special Agent Shawn Bridges, who was part of Baltimore’s Silk Road Task Force and stole $820,000 in bitcoins during the investigation that led to Ross Ulbricht’s conviction, eventually pled guilty to money laundering and obstruction of justice. Bridges, was sentenced to nearly five years, 71 months, in prison.

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX up 1%, FTIL leaps up 7%.


EC: Statement By VP Ansip & Commissioner Oettinger Welcoming The Adoption Of The First EU-Wide Rules On Cybersecurity



North Carolina Leaps Forward With Blockchain-Friendly Bill – State, Chamber Of Digital Commerce Make History With Comprehensive Money Transmitter Act



After 4,400% Surge, Bitcoin’s Fate Hinges on Huge Chinese Miners

Lulu Yilun Chen & Yuji Nakamura -Bloomberg

China is home to 90% of bitcoin trades and 70% of mining.


EMTA & CME Adopt MOEX USD/RUB FX Benchmark


MOEX’s USD/RUB benchmark has been recommended by the Emerging Markets Traders Association (EMTA) as the major settlement (reference) rate for OTC rouble derivatives (NDFs, NDOs) for its OTC FX members. CME will also use MOEX’s USD/RUB benchmark for its rouble-denominated currency futures.


MOEX Begins Calculating & Releasing Eurobonds Yields From 11 July



TSX Venture Exchange to Launch New Market Making Service Called TSXV LiquidityPro



ITG Launches Enhanced US Smart Order Router


In early tests, ITG’s smart order router (SOR) returned 35% size improvement over the displayed quantity and $0.0015 per share price improvement if routed to dark and lit venues.


ICMA Study: Bond Liquidity At Risk Of ‘Interminable Decline’ (subscription)

Tim Burke – Financial News

ICMA’s latest report on the secondary market for European high-grade paper says banks and investors are having to rethink business models.


CBOE Launches Second Index Series That Targets Investment Outcomes


The CBOE S&P 500 Enhanced Growth Indexes measure a hypothetical portfolio of S&P 500 Index (SPX) FLexible EXchange (FLEX) options designed to provide targeted annual returns. CBOE began disseminating daily values for the new benchmarks on June 24, 2016.

Career Paths

WSE appointed Adam Milosz as new Chairman Of Supervisory Board.

PLY: Mr. Milosz was appointed to the board in January 2016 for 3 years as part of the defenestration under the latest in the ongoing government manipulations of nominally privatised businesses. It is not readily apparent that Mr Galt had much experience to justify his board seat let alone sufficient experience to be chairman. However he is an expert at corporate restructuring and insolvency: Draw conclusions from that as you will! Milosz replaces Wojciech Nagel who was summarily dismissed last month.


CME appointed Young-Jin Chang as Global Head of Metals Products, reporting to Derek Sammann, Senior MD, Global Head of Commodities & Options Products. Previously, Chang served as Executive Director, Industrial Metals Products for CME.

FOW reports that LCH has parted ways with one of its most experienced clearing experts, Rory Cunningham, who held various senior positions in his 35 years at the firm.

PLY: I am profoundly sorry to hear that Rory is leaving and wish him every future success in retirement.


Liquidnet appointed Rebecca Healey as Head of Market Structure & Strategy reporting to Mark Pumfrey, Head of Liquidnet Europe. Rebecca joins from TABB Group where she was Principal European Capital Markets Research Analyst & Consultant, and Incisus Partners, an independent research consultancy she founded in 2015.

PLY: Good luck to Rebecca whose US equivalent Adam Sussman was also employed directly from Tabb Group, in 2014.


The UK FCA has re-appointed Sue Lewis Chairman of the Financial Services Consumer Panel for a further two and a half years, from 1 July.


EBRD appointed Pierre Heilbronn as VP, Policy & Partnerships. Reporting to the President, Sir Suma Chakrabarti, Mr. Heilbronn will also be a member of the Bank’s Executive Committee. He will take up his post in November 2016.

Financial Calendar

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

New! 12.08 – BM&FBOVESPA Q2 2016 Resultspress release

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

Other stories

Ex-Barclays Traders Contogoulas, Reich Face Second Libor Trial

Suzi Ring – Bloomberg

A jury in London earlier this week failed to reach a verdict on Stylianos Contogoulas and Ryan Reich after an 11-week trial. The Serious Fraud Office said in a statement that no new trial date had been set.


CFTC Fines Barclays $560,000 For Inaccurate Swaps Position Reports


CFTC Orders London-Based Barclays Bank PLC To Pay A $560,000 Penalty For Inaccurate Large Trader Reports For Physical Commodity Swaps Positions



Canadian Securities Regulators Release Report On 2013-2016 Achievements



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