July 15 2016

elb2Clearly news from Bigworld of the latest terrorist attack in Nice fills the headlines. Every nation ought to be free for citizens to celebrate their national day. Our sympathies lie with all those affected by this ghastly, malevolent act.

Today there is a New Premium post  Brexit Mythbusters 2: Scottish Independence

Public Markets

DB1 Investors Poised to Back LSE Deal by End of Week

John Detrixhe – Bloomberg

PLY: If you keep changing the rules, eventually you ought to get the result you seek. The DB1-LSE Countdown to AntiTrust hits 208 days (to the zone where this deal likely hits the M&A monopoly graveyard).

QV Premium: DB1-LSE Merger Brief.

 

Tullett, ICAP Restructuring Of Deal Gets Nod From U.S. Justice

Reuters

Tullett Prebon & ICAP Restructure Transaction After U.S. Justice Department Expresses Concerns About Interlocking Directorates

MondoVisione

U.S. Justice Department Says Tullett, ICAP Restructure Transaction

Reuters

UK’s CMA Says Served Initial Enforcement Order On Tullett Prebon, ICAP

Reuters

The restructuring of the $1.5 billion transaction between Tullett Prebon and ICAP addresses the U.S. Justice Department’s concerns that the transaction would create an interlocking directorate, the department said on Thursday.

…UK’s CMA says on June 30 served initial enforcement order on Tullett Prebon and ICAP in relation to deal for voice and hybrid broking and information units.

PLY: It’s a squeeze but hardly the eye of the needle being faced with a camel…

QV Premium: Exchange Deals Brief – M&As.

 

LME Consults On Caps For Warehouse Charges

LME

Exchange proposes to publish a simple, transparent set of caps on maximum rates charged by LME-registered warehouses. Maximum rates would be frozen for five years from 2017-18. Once freeze ends, caps would increase annually based on consumer price index.

 

FXCM Plans to Refinance Debt via Selling $125m Worth of Securities

Victor Golovtchenko – Finance Magnates

FXCM has filed with the SEC a prospectus to issue up to $125 million worth of new securities albeit without clarity on security type – all options being considered presumably.

QV Premium: FXCM Stakes Sales Brief.

 

EEX Warns Of Competition Hit From ICE-Trayport Deal (subscription)

Alice Attwood – FOW

PLY: Maybe not the most holistic of group approaches for the EUREX controlled entity. EEX deploys the pot kettle black divergence trade for this skirmish ahead of that bigger antitrust battle to come. Then again, DB1 is inevitably going to be attacked by a vast realm of market participants over their ill-considered, poorly managed, Merger of Equal Desperation with LSE anyway I suppose, so what’s a little more ammunition delivered from EEX to upset the marketplace which now appears overwhelmingly opposed to DB1:LSE?

 

OCC Says Pre-Trade Risk Controls Add Resiliency To Markets

MondoVisione

Private Markets

Regulatory Ambiguity On NSE Foreign Listing Plan

Business Standard

Investment banking experts say listing abroad would help Indian exchanges in better price discovery.

 

Malta SE: Going International (subscription)

Joseph Portelli – Times of Malta

PLY: Chairman Joe Portelli has a dynamic vision for the Malta Stock Exchange going forward as he writes on the cusp of the 25th anniversary of the organisation being celebrated next week.

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX down 2%, FTIL flat, Jignesh still behind bars – who knows maybe he enjoys a summer break in prison as some part of his seasonal routine?

Sebi Likely To Order Forensic Audit Of Brokers Linked To NSEL Scam

Jayshree P. Upadhayay – Livemint

Regulator will continue probe although an initial investigation into role of brokers did not find too many violations.

PLY: Love that “did not find too many violations.” Clearly we have a bit of leeway between NSEL applying rules and zero tolerance.

Technology

Trading Outage Deals Another Blow to SGX’s Reputation (subscription)

Jake Maxwell Watts – Wall Street Journal

Fourth Outage In Two Years Hits SGX

MondoVisione

SGX Securities Market To Open Per Normal On 15 July

MondoVisione

SGX Opens as CEO Atones for Halt That Riled Traders

Andrea Tan & Kana Nishizawa – Bloomberg

SGX securities market temporarily ceased trading as at 1138 hours local time yesterday – the fourth outage in two years and may trigger a second rebuke from the Monetary Authority of Singapore. Update 4 on Thursday – SGX informs that the securities market will not resume trading at 1600 hours and will not re-open today. (All updates here).

PLY: Having cleansed the management and IT departments of foreigners, I think it is fair to suggest that wasn’t the problem?

Seriously, a huge dose of egg fried rice must now be all over the faces of SGX as this is outrageously poor form from what ought to be a top tier marketplace in operational terms.

And just to confirm the source of the problem being duplicate trade-confirmation messages, let me add:

Having cleansed the management and IT departments of foreigners, I think it is fair to suggest that wasn’t the problem?

Seriously, a huge dose of egg fried rice must now be all over the faces of SGX as this is outrageously poor form from what ought to be a top tier marketplace in operational terms.

Products

A $500 Billion Investor Developed ‘Cutting Edge’ Technology After Getting Tired Of Tough Trading Conditions

Matt Turner – Business Insider

AllianceBernstein, the asset manager that oversees $487 billion, has a solution to all this chaos. The system is called ALFA, which stands for Automated Liquidity Filtering and Analytics, and it pulls all the various platforms together into one place — giving the firm a real-time view of the entire bond market.

ALFA takes in data from the slew of trading venues that have popped up, such as TruMid, Electronifie and Liquidnet, as well as legacy players like MarketAxess. It is also plugged in to Project Neptune, and is about to connect with Tradeweb to receive data on dealer inventory.

The firm started developing ALFA last June, and rolled it out in October. It now works across investment grade, high yield, emerging market and municipal debt and structured credit.

QV Premium: The Bond Platforms Rush Brief – Part 2.

 

Citadel Adds Phone Trading To European Swaps Market Push (subscription)

Philip Stafford – Financial Times

Citadel Securities to Start Trading European Credit Swaps

Katie Linsell – Bloomberg

Citadel Securities is planning to start making markets in European CDS benchmarks after expanding into trading of U.S. indexes earlier this year.

PLY: Admittedly there may be some folks still trying to push Citadel away from the deals “outside” but the swaps revolution is as inevitable as Brexit: learn to live with it if you are a legacy player.

 

Tokyo Commodity Exchange Plans Launch Of Physical Gold Market

MondoVisione

 

HKMA/Hong Kong SFC: Regulators Release Further Consultation Conclusions On Introducing Mandatory Clearing & Expanding Mandatory Reporting For OTC Derivatives Market

MondoVisione

 

Nasdaq Launches Powerful New Tool for Communications & Marketing Professionals to Seamlessly Leverage Industry Influencers

Nasdaq

Nasdaq’s Corporate Solutions business, has launched Nasdaq Influencers, a new solution designed specifically for communications and marketing professionals to discover and connect with the most relevant thought leaders in their industry and uncover new opportunities to share their news and information, insights and recommendations as well as drive brand identity and awareness.

PLY: Sounds interesting. I wonder who will be deemed influential in the parish of market structure.

 

TMX Adds FX Analysis to Analytics Suite (subscription)

Waters Technology

 

Securities Commission Malaysia Invites Public Feedback On Proposals To Enhance REITs Market

MondoVisione

Career Paths

CalPERS Board of Administration named Marcie Frost as the Pension Fund‘s new CEO.

Frost is a 16-year veteran of the pension industry, having most recently served as the director of the Washington State Department of Retirement Systems (DRS). She will start her new role with CalPERS on October 3, 2016, replacing Anne Stausboll who retired at the end of June. Doug Hoffner will serve as interim CEO.

Financial Calendar

19.07 –  Advisory Committee On Small & Emerging Companies agenda

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! 28.07 – ITG Q2 2016 Results – press release

 

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

Crowdfunding

Crowdcube Has Attracted £39m To Its Crowdfunding Campaign

Business Insider

Investors keen to put money into the UK’s biggest crowdfunding platform Crowdcube have pledged £39 million ($51.8 million) of financing — smashing the platform’s initial target of £5 million.

PLY: That is utterly incredible as a number…I would suggest there are some other opportunities in market structure where those funds could be profitably used but it shows how crowdfunding has captured the zeitgeist! Well done Crowdcube!

Other stories

BME Celebrates Its 10th Anniversary As A Listed Company

MondoVisione

 

EC – CMU: New Rules To Support Investment In Venture Capital & Social Enterprises

MondoVisione

EC – Fact Sheet: CMU: New Rules To Boost Funding For Venture Capital & Social Enterprises – Q&A

MondoVisione

 

Opening Remarks To The Investor Advisory Committee, SEC Chair Mary Jo White, July 14, 2016

Statement At Meeting Of The Investor Advisory Committee, SEC Commissioner Michael S. Piwowar, July 14, 2016

MondoVisione

 

Ontario Securities Commission Launches Office Of The Whistleblower

MondoVisione

 

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