JULY 13 2017

On this day not only was Harrison Ford born but Frida Kahlo and Alfred Stieglitz died while Krispy Kreme doughnuts were founded in 1937…

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.

In Today’s Exchange Invest

Thanks to BIDS for quoting me… “ I am not much minded to simply trumpet volumes but there is something fascinating here happening at the heart of European block trading. It always struck me, especially when serving on a rival platform board, that BIDS launched properly in Europe could be spectacular. Turquoise to some degree cloned the BIDS approach but through the BIDS-BATS LiS model of direct cooperation, it would appear that BATS is making a stunning breakthrough and that must presage better markets.“ in their monthly newsletter mailshot yesterday.

Meanwhile the Financial Services Negotiation Forum has merged itself into the Legatum Institute which ought to deliver an even better flow of information about the City of London, UK finance and the Brexit opportunities ahead for Britain and Europe. Founders Anthony Belchambers and Daniel Hodson will become Legatum fellows – a good deal all round.

Over in Europe, it’s let them eat CCP cake time.

And there’s more, happy scrolling:

In BigWorld

“The Boy Who Cried Wolf” could be next year’s Hollywood blockbuster – soon to be adopted as a morality tale of American leftist legacy media and how they couldn’t make America listen and the rest of the world had already switched off, even if they have evidence of President Trump being a Russian puppet.

Public Markets

Rivals Frankfurt And Paris Have Joined Together In A Bid To Poach London’s Euro Clearing Business
Business Insider
Frankfurt’s High Hopes For Euro Clearing
Handelsblatt Global Edition (subscription)
Joint Declaration Of Paris EUROPLACE & Frankfurt Main Finance On Euro Clearing

PLY: The crescendo of economic illiteracy grows ever louder. Now Frankfurt and Paris show their colours by launching the “Pincer of Protectionism.” This is an earnest endeavour to subvert financial trade norms in a crude battle for business advantage. Take the final point alone:

“The legal framework in which the CCP operates must be EMIR equivalent and the CCP should fall under the jurisdiction of the European Court of Justice.”

Er, wasn’t all that time spent in the 1980’s about ISDA Master Agreements precisely intended to enable derivatives trading in different jurisdictions? Are the French and German financial centres myopic enough to believe that mandating the clearing of a specific currency in a particular jurisdiction is not going to result in a remarkable reaction from other countries who play the cross border trading game? QV Can President Trump lose one vote by standing up to such an EU imposition against the core rules of what constitutes a free floating currency?

The sheer imbecility of this message defies belief.

All I can say is thank goodness for proper considered journalism over at Reuters. Another excellent piece from Huw Jones and colleagues, with a piece which colourfully starts with the brilliant brake manufacturers of Brembo:

How Brexit Is Set To Hurt Europe’s Financial Systems

PLY: The engineering of a “lose lose” deal must now be a major worry with the ridiculous froth of the Paris-Frankfurt axis combining in an act of frank protectionist economic illiteracy in the foolish notion that their financial centres will ever be viewed as what they have just emphasised: parochial of thought and protectionist in word.

NEX Shakes Off Quieter Trading To Increase Quarterly Revenue
Interactive Investor
Michael Spencer : NEX ‘Unlikely’ To Bid For ICE’s Trayport
Financial News (subscription)
One Of The Biggest Global Currency Exchanges Is More Excited About Ethereum Than Bitcoin

PLY: Ignore the odd headline which goes with the breathy style of Quartz but interesting to see that just as Quartz joins the “cryptocurrency must be a bubble because it has gone up” school of consensus journalism, Michael Spencer is keeping an eye on the cryptocurrency… albeit the many coins are still dwarfed by even small fiats.

NYSE Group Expands Opportunities for Listings of Special Acquisition Companies (SPACs) through Listings Rule Enhancements; Launches Three SPAC IPOs in Three Months Raising $1.2B

LME Favorite To Clear For New Base Metals Platform NFEX: Sources

PLY: Interesting circle being squared with Martin Abbott competing with the business which made his fortune by using their CCP?

London Stock Exchange Group Plc Transaction In Own Shares

Private Markets

Nigeria Stock Exchange Looks On Course To List Its Own Shares

PLY: Bill passes second reading.

Invitation To The Extraordinary General Meeting Of The BSE
Budapest Stock Exchange

PLY: EGM has agenda item on establishing a new subsidiary but it is not clear which – perhaps the MTF for SMEs mentioned in the strategy docs?

Stick It To The Stock Exchanges And Brokers
Seeking Alpha

PLY: Any article which likens the SEC to US subsidy of Afghan poppy farmers during war time is worth a read whether or not you agree with any of Kurt Dew’s musings.

Special Section: FTI, NSEL, India at the Crossroads

No news today.


Equinix To Invest $42M To Expand Sydney Datacentre

PLY: Doubling the number of racks in Alexandria…

Prop Firms Say ‘No Thanks’ To Speed Bumps On LME
Financial News (subscription)

Bitcoin Is Embroiled In A Civil War — Here’s One Way It Can Unfold
Business Insider

PLY: A civil war driven by its own success one might add…


Why Commodity Traders Are Fleeing The Business

Moscow Exchange Announces Launch Of Aeroflot Futures Contract

Feature: EU , Japan To Explore Options For Reliable Lng Spot Price Indices

NCDEX To Launch Chickpea Futures From Friday: Sources

Sebi Seeks Views To Make Equity Derivatives Healthy
Hindu Business Line

More Transparency Is Coming To Ethiopian Coffee

PLY: Another story on the curious case of how ECX is felt to have partially harmed the market by forcing all sellers through the exchange which has reduced the drive to grow higher quality beans. The solution? Well first up the problem is a lot lot more complex than there being an exchange – after all the big multinationals dislike exchanges as it harms their chances of driving supplicancy in growers…

Hanoi Stock Exchange To Hold Pilot Trading For Derivatives Market
VietNamNet Bridge

The first derivatives product to be launched is the VN30 Index futures contract. Later products include the HNX30 Index and five-year Government bonds.

Derivatives – Bnpp To Acquire ING Structured Products Risk

Career Paths

Vikram Limaye Likely To Take Charge As Nse Chief Executive From Monday
Hindustan Times

PLY: Axioma has named Thomas D. Severance As Chief Revenue Officer, the former IHS Markit executive Led Risk Strategy And Analytics For The Americas

NEX Optimisation has appointed Paul Busby as Global Head of Sales for ENSO, its portfolio finance and centralised treasury management solution for the buy-side.


Can Communities Finance Their Own Projects?
The Hudson Reporter

Seedrs Is An Iceberg Business. The Behind The Scenes Operation Is Hugely Important
Crowdfund Insider

Other Stories

The ICMA Quarterly Report is now available for download at www.icmagroup.org

Paris EUROPLACE: Brexit, The Delusions Of The Paris Financial Centre Accelerate

PLY: I didn’t even realise the Paris Europlace conference still existed. Their headline read “dynamics” but I think they meant “delusion” so I amended their headline for them. (NB This was written before the “Pincer of Protectionism” CCP release with Frankfurt). Essentially Jamie Dimon thinks he’s going to get a regulatory race to the bottom while reading the remarks prepared by his dripping remainer EU policy team displaying pure supplicancy to EU hegemony. The boss of HSBC may have said what he thinks his latest audience wants to hear. I doubt there will be a clearance of the Lycee waiting list in London, let alone an advance of non Francophones wishing to live in a nation under near curfew with little opportunity to educate their children. Sorry, I am unconvinced that just having an elegant first lady back in the Elysee palace means there is a coherent government of France that can deliver what the nation needs. Or as somebody in the Reuters story above notes about the Paris approach to luring business from London: “”It was all very Moulin Rouge,” he said.

Mt. Gox Bitcoin Exchange Chief Denies Embezzlement

The 32-year-old chief executive of defunct Mt . Gox has pleaded not guilty to charges relating to the loss of hundreds of millions of dollars worth of Bitcoin….

PLY: Ironically the rise in BTC has now been so significant the company is arguably solvent in fiat currency terms!

US SEC Chairman Signals Plans To Scale Back Corporate Disclosure Rules

Lighting Our Capital Markets, Sec Commissioner Kara M. Stein, Boston, Massachusetts, July 11 …

ESMA Issues Positive Opinion On Renewal Of Short Selling Ban By Spanish CNMV

Remarks At The Economic Club Of New York, SEC Chairman Jay Clayton, New York, N.Y., July 12, 2017
Thanks for reading, have a great day.


Patrick L Young
Executive Director DV Advisors

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