JULY 11 2017


Issue 1033 of Exchange Invest corresponds with the year in history AD where the world was somewhat panicky as expectations rose that the world would end on what was perceived as the 1000th anniversary of the crucifixion of the messiah (the book of Revelation having foreseen T+1000 year ‘settlement’ for earth).

Euro Clearing Essentials

1) Prosperity UK Panel – Brexit, Euro Clearing & Financial Market Structure: panel with Barney Reynolds, Jeff Sprecher, Michael Spencer and one Patrick L Young lurking in the background.

2) My CapX article explaining The EU’s Euro Clearing Plan Is An Act Of Protectionist Self-Harm.

QV Note on Barney Reynolds’ new white paper below.

In Today’s Exchange Invest

DB1 invests in TruMid, Xetra launch via Vienna for Zagreb. NSE in the doldrums as media coverage aghast at the IT outage. Modest launch day for LME Precious. While India’s primary exchange licks its wounds, Indonesia’s market also falls over. Lobbying grows against Chicago SE takeover by Chinese investors, just as another CSE, Chittagong SE, is petitioning for Chinese investment.

Incidentally while the yobs were getting their rioting gear on and the German state was preparing to look entirely impotent in Hamburg, the French government slipped out an announcement that they will not enact an intraday FTT. Lucky escape for civilisation there just as Oxfam had produced a paper for the G20 summit demanding yet more FTT.

And there’s more, happy scrolling:

In BigWorld

Some say Illinois may yet hit junk status with significant (+32%) state tax rises being voted in to try to staunch decades of mismanagement. It’s an unfortunate position for a state which is home to a leading financial centre. The Chicago Tribune is suitably withering with a headline beginning “Sabotaging Illinois.” The Indiana arb is clearly now more open than ever.

Public Markets

Deutsche Boerse Invests In Bond Trading Platform Trumid
Reuters

PLY: Interesting, DB1 buying a minority stake in TruMid for $10 million with an aim of bringing the corporate bond platform to European names as well. Trumid already raised $28 million earlier this year with investors including Peter Thiel and George Soros.

IHS Markit Announces Pricing Of Senior Notes
Reuters

LME Launches Bid For Slice Of $5 Trillion London Gold Market
Reuters

PLY: A modest first day’s progress.

Trading On The New Trading System Started
Zagrebačka burza

PLY: The Zagreb Stock Exchange started trading on Xetra which is distributed in CEE/SEE by Vienna Borse. Good luck to Ivana Gazic with her new IT solution.

London Stock Exchange Group Plc Transaction In Own Shares
MondoVisione

Private Markets

Lawmakers Urge SEC To Stop Chicago Stock Exchange’s China Deal
Reuters

Why NSE Took Three Hours, Four Attempts To Restart Trading After Glitch
Bloomberg Quint

NSE Seeks Clarification From BSE On Spurt In Stock’s Volume After Technical Glitch Halts Trading
Financial Express

PLY: A textbook case of dumb regulation leads to a round robin of requests for info on share volume increase when the core cause is one of the exchanges’ IT systems falling over. An elegant example of the worst stupidities of the Indian regulatory blob. To the rest of the parish it is obvious but to SEBI, it’s another good reason to create some paperwork.

Trades Restart On Indonesia’s Main Stock Exchange After Halt
The Star Online

The Indonesia Stock Exchange had imposed a trading freeze at 9:34 a.m. in Jakarta because of an issue in its market information distribution system,.

Tel Aviv Exchange Chief Looks To Turn Round Struggling Bourse
Financial Times

PLY: TASE caught in the middle of the ‘startup nation’ with great listing links to the USA and a real estate bubble which both sap interest in domestic equities.

ICEX Gets Final Nod From Sebi To Restart Trading Operation
Livemint

PLY: Just last week ICEX and NMCE announced they would merge.

Chinese Bourses Receive Strategic Investment Proposal From CSE
Financial Express Bangladesh

China Financial Futures Exchange (CFFEX) and Shanghai Stock Exchange (SSE) recently received strategic investment proposal from Chittagong Stock Exchange.

PLY: What’s good for Pakistan is perceived as good for Bangladesh too…

East Africa Exchanges Call For Fast-Tracking Of Capital Markets Integration To Atract More Investors
The New Times

Special Section: FTI, NSEL, India at the Crossroads

NSEL Scam: Economic Offences Wing Vows To Cover Lost Ground
Hindu Business Line

Technology

Securities Commission Malaysia And Bursa Malaysia: Cyber Incident
Products

Products

HKEX’s CNH- And USD-Traded Gold Futures Off To Encouraging Start
MondoVisione
New LME Gold Contract Sees Lacklustre Launch
Financial Times

PLY: FT seem to toe the LBMA line? Somewhat harsh methinks on LME Precious.

Dark Pool Traders Look To Stay In The Shadows
Bloomberg

NYSE Revamp Steps Up Threat To Speed-Fighting IEX Exchange
Bloomberg

Derivatives Offer Bright Future For Vietnamese Stocks
The Nation

Taking Aim: Why The LSE’s Junior Market Is Attracting High-Growth Companies
City A.M.

PLY: LSE’s Marcus Stuttard opines.

‘World’s First Fresh Fruit Futures’
Global Times

“As the world’s first fresh fruit futures, apple futures represents ZCE’s exploration of the futures market to serve the real economy,”

PLY: Apple and red date futures to be listed on the Zhengzhou Commodity Exchange ( ZCE ).

Career Paths

Mark Hemsley. After The Merger
The Trade

CFTC Acting Chairman Giancarlo has appointed Daniel Gorfine as LabCFTC Director and Chief Innovation Officer. Gorfine, an Adjunct Professor of Law at the Georgetown University Law School teaching FinTech Law & Policy, was most recently Vice President, External Affairs & Associate General Counsel at the online lender, OnDeck.

Crowdfunding

Kenya, SA Lead Africa In P2P Lending
Disrupt Africa

Peeriq Reports On Q2 2017 Marketplace Lending Securitizations
Lend Academy (blog)

Other Stories

ESMA Letter To European Commission On Third-Country Regimes
ESMA

CFTC Launches New Video Series Featuring Fraud Victims – Smart Investors, Cunning Fraudsters, Millions Stolen – In The New Video Series, “True Fraud Stories” Victims Tell Their Personal Stories
CFTC

ESMA Issues Final Standards For Publication Of Derivatives Data
ESMA

CFTC: Division Of Market Oversight Announces Review Of Swaps Reporting Regulations
CFTC

ESMA Consults On Guidelines Regarding Internalised Settlement Reporting
ESMA

ESMA Publishes Updated AIFMD And UCITS Q&A
ESMA

How To Achieve A Win-Win Brexit Deal For UK-EU Financial Services
Brexit Central

PLY: Barney Reynolds latest paper: “A Template for Enhanced Equivalence: Creating a Lasting Relationship in Financial Services between the EU and the UK” was launched yesterday by Politeia. No links to download the full paper yet but the synopsis is above. Meanwhile you can always read his excellent: “A Blueprint for Brexit: The Future of Global Financial Services and Markets in the UK,” published by Politeia last November.
Not even two weeks since the Maltese Presidency of the EU ended but going cold turkey after all those events is tricky, I may have to check in to rehab for a canapé addiction.

Patrick

Patrick L Young
Executive Director DV Advisors

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