July 13 2015

elb2For those who dislike the sight of 50 shades of debt servitude, it’s probably better to look the other way when it comes to this morning’s promissory note of a deal to bailout Greece with more money it cannot afford to pay while demanding blood from both arms of the already comatose Hellenic Republic, throttled in the EUronoose. More to follow in an RT column today on that topic. This isn’t over and it ends badly (like worse than the current mess) I fear…

Meanwhile, in our parish, CITIC are at the head of the peloton to buy Russell Investments for 2/3rds of what LSE spent on the entire group. India has been having a hyperactive day of regulatory fiat. Today’s must read comes from Denis Ignatovich about the NYSE problems of last week…while the buy side pushes back on Maker Taker…and more, happy scrolling:

Public Markets

CITIC In The Lead To Buy Russell Investments

Jessica Toonkel & Saikat Chatterjee – Reuters

China’s CITIC Group Corporation is in negotiations to acquire Russell Investments from LSE in what is expected to be a roughly $1.8 billion deal.

Read our Premium LSE – Frank Russell Deal Brief.

PLY: Wow… could it be better for LSE? They only paid $2.7 billion for the whole group (apparently CEO Len Brennan demanded original owners Northwestern Mutual sell the business as a single entity). This is headed (as I always argued) for perhaps the most significant value miscalculation in the entire sector’s deal history. LSE shareholders are laughing all the way to the bank, acquiring a(nother) powerhouse index business at a knockdown price. Why that even trumps the shortsightedness of Pearson Group keeping the dead tree press Brussels Bugle and selling their 50% in FTSE. Again Xavier burnishes his reputation…oh and is it really somewhere proximate to his offices indirectly hyping the idea of a sale to ICE? I sometimes wonder where that story is being fanned from…

(For the purpose of clarification: I am on a train to Berlin all afternoon so all denials to today’s pith are best delivered by email as mobile phone coverage may be patchy).

Bombay High Court Restrains MSEI From Cancelling MCX’s Warrants

The Economic Times

The Bombay High Court (HC) has restrained Metropolitan Stock Exchange of India (MSEI – formerly MCX-SE) from cancelling, extinguishing or appropriating warrants worth Rs 41.6 crore that commodity bourse MCX holds in it until it disposes of a suit filed by the MCX against MSEI in the matter.

Managers Push SEC For Limits On Brokers’ Maker-Taker Rebates

Rick Baert – P&I

Money managers want SEC to examine maker-taker rebates — to limit or eliminate them for all stock trades — claiming that the rebates spur broker-dealers to find trading venues based on revenue, rather than on best execution for clients.

PLY: It has to be said while initially I loved the idea of maker taker, I do fear that in the final analysis the system is not delivering a better market overall.

(NB As above, For the purpose of clarification: I am on a train to Berlin all afternoon so all denials to today’s pith are best delivered by email as mobile phone coverage may be patchy).

Private Markets

FMC Issues ‘Not Fit & Proper’ Notice To Universal Commodity Exchange Promoter & MD

The Economic Times

“We have issued ‘not fit and proper’ notices to UCX promoter Ketan Seth and MD Praveen Pillai a few days back. They have been given 15 days time to reply to the notice,” a senior FMC official said, after the auditing firm KPMG, which conducted forensic audit of the UCX, found several irregularities including diversion of the Settlement Guarantee Funds (SDF).

BSE Asks Brokers To Submit Monthly Statement On Suspicious Transactions

The Hindu Business Line

BSE has asked its brokers to submit a monthly statement on the number of Suspicious Transaction Reports (STRs) filed by them with Financial Intelligence Unit India (FIU-IND) to the Exchange.

Vietnam To Allow Up To 100% Foreign Ownership In Firms

Arno Maierbrugger – Gulf Times

Vietnam will eliminate caps on foreign ownership in many companies listed on the country’s two bourses, the Ho Chi Minh SE and the Hanoi SE. The move is meant to boost trading activity, but most of all should accelerate the lacklustre privatisation process for government-owned companies.

Chinese ‘Pump-n-Dump’ Suspected As Litecoin Passes Bitcoin In Trading Volume

Cointelegraph

Elliptic & Crypto Facilities Bring Settlement & Clearing Mechanism to Bitcoin Trading

Nikhil Gupta – newsbtc

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX rallying on warrants judgement (+3%) while FTIL is up 1%.

Madras HC Stays CLB’s Order Which Prevented FTIL From Selling Assets

Business Standard

The high court here suspended a Company Law Board (CLB) order which stopped FTIL from selling its assets. The company had petitioned against the June 30 order of CLB, passed while the latter was hearing a petition from the ministry of corporate affairs (MCA) for supersession of FTIL’s BoD.

An FTIL spokesperson said the court had, excepting immovable assets, suspended the CLB order: “With this, the company can carry out its day-to-day operation/ activities seamlessly.”

Read our Premium NSEL Scandal Brief – Part 16.

Technology

NYSE Glitch: The Big Point Everyone Is Missing

Denis Ignatovich

NYSE glitch – reported last week.

PLY: Today’s must read – I like the thinking behind Aesthetic Integration. Denis and Grant appear to be not merely thinking hard they are actually capable of qualifying for the ‘doing God’s work’ in the exchange parish moniker… As I say, ignore this piece at your peril.

How Europe Would Cope With A 3-Hour Stock Exchange Outage: Badly

John Detrixhe – Bloomberg

PLY: Good line from Niki Beattie: “Europe is an interesting one because if there’s so much competition, why is it the case that everyone is so dependent on the primary exchange?”

Flash Boys Welcome: World Exchanges Woo High-Frequency Traders

Sam Mamudi, John Detrixhe & Benjamin Bain – Bloomberg

PLY: Every exchange loves colo.

Regulators Tie High-Speed Trading To Treasury Volatility

Ian Katz – Bloomberg

The Next Wave For High-Speed Trading (subscription)

Financial News

A shorter, faster transatlantic cable is set to have far-reaching implications for traders.

Read our Premium A Taste Of HFT Scandal Brief – Part 6.

Dubai Financial Market : Nasdaq Dubai – Change In Trading Platform & Procedures For Derivatives Contracts

4-traders

Contracts traded on Nasdaq Dubai will trade on DFM X-stream trading platform post relaunch.

Career Paths

Menacorp appointed Arshad Khan ( Bahrain Financial Exchange ex-CEO) as Executive Director.

The Stock Exchange of Hong Kong, a wholly-owned subsidiary of HKEx, appointed the members to the Listing Committee of the Main Board and Growth Enterprise Market (GEM).

There are eight new Listing Committee members – Peter Brien, Edmond Chan, Paul Chau, Vincent Duhamel, Blair Pickerell, Donald Roberts, Catherine Yien and Dieter Yih.  They replace Carmelo Lee (who served as Chairman from 2012 to 2015), Arnold Ip, Anthony Leung, Samson Li, Liu Ting An, Andrew Malcolm, Daniel Ng and May Tan.

Listing Committee Membership 2015 – full list of members here.

Bob Greifeld, Nasdaq: Diversification’s Dividend (subscription)

Nicole Bullock – Financial Times

Bob Greifeld, Nasdaq’s CEO, may live in a world of bulls and bears but his passion is for collecting turtles.

PLY: it’s an open secret on the parish grapevine that many NASDAQ creditors suspect Bob’s turtles have been put in charge of running the accounts department’s payments division.

Singapore Banker Faces Uphill Battle Boosting SGX Trading

Jonathan Burgos & Chanyaporn Chanjaroen – Bloomberg

ESMA Vacancy Notice – SNE – Institutional Cooperation

MondoVisione

Deadline: 10/08/2015. Please refer to our vacancy page for the details on this position (Ref.2015/VAC18/SNE) and how to apply.

ESMA Vacancy Notice – ICT Officer – Data Architect

MondoVisione

Deadline: 18/08/2015. Please refer to our vacancy page for the details on this position (Ref.2015/VAC10/AD6) and how to apply.

Financial Calendar

July 15

Record date GPW 2014 PLN 2.40 dividend

Interactive Brokers Q2 Financial Results

CFTC Division of Market Oversight (Division) public roundtable to discuss the Commodity Exchange Act’s trade execution requirement and the process of making MAT determinations.

SEC Advisory Committee on Small and Emerging Companies – public meeting by telephone conference

July 16

ICAP AGM

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

Share Notes

Lending Club insider Chaomei Chen sold 150,000 shares Wednesday, July 8th at an average price of $14.20 (bargain $2,130,000.00).

Analyst Notes

Barclays Boosted Their Price Target On ICE From $260.00 To $267.00 –  “Overweight” Rating

CME Target Price Boosted By Barclays From $87.00 To $96.00 – “Equal Weight” Rating

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

SIFMA Calls For Financial Services Regulatory Coordination In TTIP Negotiations

MondoVisione

Information Overload & Mandatory Securities Regulation Disclosure

Troy A. Paredes – Reg Blog

There is no denying that information is empowering. Generally speaking, we make better decisions when we have better information. But it is also true that information can be overwhelming. We have all thrown up our hands in frustration when faced with reading a very long document – let alone a pile of documents – laden with small font and legalese that would confuse even a lawyer.

PLY: Good post by Troy Paredes – big data is wonderful…so long as somebody is processing it…otherwise the regulators are just fashioning a digital noose after some future crisis…

 

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