July 13 2016

elb2Jignesh Shah has been arrested again. This time the authorities accuse him of being uncooperative with investigations. Given he had previously assured creditors they would be paid something like 2 years ago, there remains a fair bit of ill will amongst creditors that he hasn’t been especially cooperative there either.

David Cameron leaves office in BigWorld while Britain gets its second female  Prime Minister, Theresa May and I added a New premium post: Brexit Update. In the parish, ALTX goes live powered by GMEX, JSE improves tech as competition emerges and Africa as a whole looks to improve market linkages.

Public Markets

ICAP – Trading Statement


1 April – 30 June 2016: Group revenue from continuing operations +2% (constant currency), +7% on reported basis. Overall market conditions mixed with a spike on the Brexit referendum.


Bats Unveils Community Policing Program for U.S. Equities, Options Exchanges


Announcing Bats Community Policing Program – for its U.S. equities & options exchanges, designed to further enhance monitoring of markets.


EU Commissioner Says Excessive Regulation Hurts Growth (subscription)

Wall Street Journal

European Commission: Keynote Speech By Commissioner Jonathan Hill, Commissioner For Financial Stability, Financial Services & CMU, At Bruegel On The Call For Evidence: “The Impact Of The EU Regulatory Framework For Financial Services”


Excessive financial regulation piled on after the financial crisis is impeding growth and European regulators need to understand the impact they have had on the market place,outgoing EU commissioner Jonathan Hill said.

PLY: Lord Hill reprises the Brexit manifesto in other words. The EU would be foolish not to heed the words of this pragmatic Europhile.


Key Takeaways From The FCA’s Annual Report (subscription)

Tim Cave & Samuel Agini – Financial News

The final pay packet of the FCA’s former CEO Martin Wheatley – £827,000 – has been revealed in the regulator’s latest annual report.


SIFMA Applauds House Passage Of The National Securities Exchange Regulatory Parity Act



NZX Proposes Changes To Price-Sensitive Announcements

Paul McBeth – Scoop

NZX wants to change the way it flags price-sensitive announcements which attract brief trading halts, putting the onus on issuers to identify what’s material.

Private Markets

ALTX East Africa Launches In Uganda


ALTX East Africa has gone live, led by CEO, Joseph Kitamirike, powered by GMEX technology. The platform obtained regulatory approval in 2014 and depository approval was secured in 2015.

Last year, GMEX acquired a 25% stake through its GMEX Technologies (GMEX Tech) subsidiary in the Mauritius-based ALTX Africa Group. ALTX wholly owns ALT-Xchange (ALTX Uganda) and ALT-X Clearing (ALTX Clearing).

PLY: Great to see such a state of the art marketplace launched in East Africa with GMEX technology.

QV Premium: Rise of Africa Brief – Part 5.


Bitcoin Surpasses Gold Trading in Brazil


During the first six months of 2016, bitcoin trading volume on Brazilian crypto exchanges surpassed that of gold spot trading on BM&F BOVESPA.

PLY: In times of crisis it is easier to be virtual than hauling gold around.


Bitcoin’s Unfortunate Liquidity Problem, As Inadvertently Highlighted By An SEC Order (subscription)

Financial Times

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX down 1% while FTIL is down 6% after Jignesh Shah‘s latest arrest:

Jignesh Shah Arrested By ED In NSEL Scam

P.R. Sanjai & Jayshree P. Upadhyay – Livemint

“Shah has been arrested for not cooperating with the investigative processes,” said a senior ED official on condition of anonymity.

ED, a specialized financial investigation agency under the ministry of finance, has found evidence of money laundering against Shah under the Prevention of Money Laundering Act, 2002 (PMLA), according to ED officials.

This is the second time Shah has been arrested in connection with the NSEL fraud. He was arrested by the Economic Offences Wing of the Mumbai Police in May 2014 and granted bail by the Bombay high court three months later.

Shah will be produced before the special PMLA court on Wednesday by the ED, which filed its first chargesheet in the NSEL scam in April 2015.

QV Premium: NSEL Scandal Brief – Part 16.


JSE Boss Nicky Newton-King Braces For Competition

Jess Delaney – Institutional Investor

Newton-King is upgrading the bourse’s technology with Millennium uogrades and a new real time clearing system from Cinnober as South Africa opens the door for more exchange operators.

PLY: Various competitors chasing the JSE monopoly include: ZAR X and 4AX.


IBM To Open Blockchain Innovation Center In Singapore

Ian Allison – IBT

IBM is opening a Blockchain Innovation Centre in Singapore in collaboration with with the Singapore Economic Development Board (EDB) and the Monetary Authority of Singapore (MAS).

PLY: If I translated correctly from geekspeak, the grunts I have heard from behind the pizza boxes seem to suggest some nerds don’t have much faith in what IBM is pushing as Blockchain…


New Report Examines Regulatory Landscape of Financial Technologies


Financial Innovation Now, a public policy coalition comprised of Amazon, Apple, Google, Intuit and PayPal, released a report titled, “Examining the Extensive Regulation of Financial Technologies.” The report details current state and federal regulatory compliance requirements for new marketplace innovators in financial services.


Moscow Exchange: Revised Maximum Quantity Of Securities Eligible As Collateral In Derivatives Market



SolidX Seeking to List Bitcoin ETF on NYSE

Pete Rizzo – CoinDesk

Blockchain technology firm SolidX has filed a registration statement with the SEC to launch the SolidX Bitcoin Trust.


STOXX Enters MOU WIth Yuanta SITC & MUTB To Expand Smart-Beta Footprint In Taiwan


Career Paths

Nasdaq appointed three new non-executive members of the Board of Nasdaq Nordic: Johanna Lybeck Lilja (Executive Advisor at Nordea), Joachim Alpen (Co-Head of Large Corporate & Financial Institutions at SEB) and Magnus Fageräng (Head of Business Support & Development at Handelsbanken Capital Markets). In addition, the appointment of one new non-executive member of the Board of Nasdaq Clearing AB was announced, Pia Warnerman (CFO & Head of Staff for Division Corporate & Private Customers at SEB).

The Board of Nasdaq Nordic consists of 9 non-executives independent of Nasdaq, and of Hans-Ole Jochumsen, President of Nasdaq. The Chairman of the Board is Lars Wedenborn, CEO of FAM AB, who is also a member of the Board of Nasdaq.

The Board of Nasdaq Clearing consists of 3 non-executive board members, and of 3 executive board members of Nasdaq. The Chairman of the Board is Johan Rudén, SVP, Global Head of Post-Trade Services at Nasdaq.

Three members stepped down from the Board of Nasdaq Nordic: Carl-Olof By, Senior Advisor at Industrivärden; Maunu Lehtimäki, CEO & Partner of Evli Bank; and Pia Warnerman.

Björn Sibbern, SVP & Global Head of Commodities at Nasdaq, stepped down from the Board of Nasdaq Clearing.


Reuters reports that ITG hired Robert Darling & Stephen Farrell to its Asia Pacific electronic trading team in Hong Kong. Darling previously worked at Standard Chartered Bank as a director in the cash equity sales trading group. Farrell joins from CIMB Securities, a unit of Malaysian lender CIMB Group Holdings, where he was an electronic sales trader covering Asia clients.


On Finextra Blythe Masters, the former JP Morgan bigwig who now runs DLT startup Digital Asset Holdings, has been named group senior advisor on technology and blockchain by Santander.

Masters is stepping down as Chairman of Santander Consumer USA Holdings after just a year in the job to take on the newly created blockchain role. She also joins Santander’s international advisory board and the board of online-only subsidiary Openbank.


SEC appointed three new members to its Investor Advisory Committee, and the reappointment of five members whose terms recently expired.

The new members of the Investor Advisory Committee are:


  • John Coates, John F. Cogan Jr. Professor of Law and Economics at Harvard Law School,
  • Nancy LeaMond, EVP, Chief Advocacy & Engagement Officer, Community, State & National Affairs, AARP
  • Elisse Walter, Former Chairman, SEC


The reappointed members of the Committee are:


  • Stephen Holmes, General Partner Emeritus, InterWest Partners
  • Barbara Roper, Director of Investor Protection, Consumer Federation of America
  • Kurt Schacht, MD, CFA Institute
  • Anne Sheehan, Director of Corporate Governance, California State Teachers’ Retirement System
  • Damon Silvers, Director of Policy and Special Counsel, AFL-CIO


The new and reappointed members will join the following members, who continue to serve their terms:


  • Joseph V. Carcello, Department Head & Professor, University of Tennessee Department of Accounting & Information Management
  • Lisa Fairfax, Leroy Sorenson Merrifield Research Professor of Law, The George Washington University Law School
  • Rick Fleming, Investor Advocate, SEC
  • Matthew Furman, EVP & Group General Counsel, Willis Group
  • Craig Goettsch, Director of Investor Education & Consumer Outreach, Iowa Insurance Division
  • William Lee, SVO & Chief Investment Officer, NewYork-Presbyterian Hospitals
  • Hester Peirce, Senior Research Fellow, Mercatus Center at George Mason University
  • Susan Ferris Wyderko, President and CEO, Mutual Fund Directors Forum



DTCC Backs Blockchain Advocacy Group Coin Center – Mark Wetjen Appointed Member Of Advisory Board



R.J. O’Brien & Associates announced that Jordan Stern has joined the firm as SVP of Ethanol, operating out of Chicago.

Financial Calendar

13.07 – Q1 Trading update & AGM

20.07 – Record date WSE 2015 PLN 2.36 dividend

21.07 – Adjourned WSE Ordinary General Meeting to resume proceedings

New! 28.07 – ITG Q2 2016 Results – press release

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

Analyst Notes

LSE “Outperform” Rating Restated By Credit Suisse – GBX 2,900 Price Target

A full table of current analysis can be found on our Analyst Ratings page which is updated daily.

Other stories

Accused Spoofer Beats CFTC Bid to Bar Trading Before Trial

Janan Hanna – Bloomberg

Igor Oystacher can keep buying and selling commodities while he figures out how he might convince a jury he’s done nothing wrong.

Oystacher, of 3Red Trading, avoided a ban on trading as he prepares for a Jan. 17 trial in a lawsuit brought by CFTC. U.S. District Judge Amy St. Eve in Chicago rejected the request by the CFTC, which accuses Oystacher of manipulating the market through spoofing.


ASIC Consults On Remaking And Repealing Class Orders On Markets & Securities



EuropeanIssuers Remains Committed To The European Project & To The CMU Action Plan After The UK Referendum


QV Premium: EU CMU Brief.


UK FCA Publishes Annual Report 2015/16 & Report Of Its Competition Activities Since 2013



The African Development Bank & The African Securities Exchanges Association Sign MoU To Join Forces To Develop Africa’s Capital Markets


PLY: An interesting initiative, I wish it every success.



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