July 16 2013

elb2 SEF applicant 3 has emerged while the EU’s top financial regulator seems to have out-maneouvred the US government over free trade – surely not! Japan’s merger is implementing as expected, as well as news of other speedy ventures and tie-ups. Meanwhile LIBOR charges have begun…

Incidentally, with plans for the autumn “off-site’ season fast approaching, I have a series of pertinent presentations available for delivery as required relating to the future of finance, money and every vestige of social lending/crowdfunding and clearly exchanges. For terms and dates, please email me for more details. All presentations can be tailored to the specific audience.

Meanwhile, here are today’s top stories pertaining to ExchangeInvest:

Public Markets

EU Wants Financial Regulation as Part of US Trade Talks (subscription)

Wall Street Journal

Commissioner Barnier said negotiations over financial-services regulation should be included in EU-U.S. trade talks, signaling another area of potential transcontinental rift.

PLY: Now we have the marvellous demonstration of just how sclerotic US government is in the time of President Obama. A French EU regulator goes to Washington, suggests financial free trade and the US government is in paroxysms of confusion… Given the US financial industry apparently supports the move outright and M. Barnier is at odds with the French President, his remarks out to have been welcome with open arms in Washington…

Brokers Charged in Libor Investigation

Wall-Street Journal

PLY: The first charges against brokers have been laid in the ongoing LIBOR investigation. How deep will this go? Certainly, the money markets are quaking right now over just how many will be investigated. For IDBs, this is equivalent to the FBI pit investigations in the late 1980’s which threatened to tear Chicago’s markets apart.

CME seeks exemption from SEC testing, oversight rules

Chicago Tribune

CME Group Inc. wants to be left out of proposed rules that would require testing and better preparation to handle trading glitches or natural disasters.

PLY: Extraterritoriality comes home to roost. CFTC Chairman Gensler was keen to rule swaps trading across the waves while closer to home the SEC got all IT territorial with CME whose markets all fall outside the SEC’s cash equities & options remit. IT: the new frontline in the age-old battle between Finance and Ag committees…

Settlement houses team up to streamline Europe’s funding market

Reuters

Long-standing rivals Euroclear and Deutsche Boerse will jointly help improve the supply of short-term funding for banks, an important step towards a Europe-wide capital market and to boost lending.

Brussels-based Euroclear and Deutsche Boerse’s Clearstream and Eurex Clearing will pool their highly-rated government bonds and similar assets to create an easily accessible supply of collateral that banks use to get short-term funding in the financial markets.

PLY: Regulatory pressure clearly helped create this solution and the resulting mammoth pool of lendable securities can only improve markets and indeed business for both Euroclear and DB Group.

MarketAxess Files Swap Execution Facility Application With CFTC

MarketAxess Holdings Inc. (Nasdaq: MKTX), has become the third applicant to file for SEF status.

Private Markets

Japan Exchange Group: Integration Of Equity Clearing & SRO Function

Today, as scheduled, the cash equity market, clearing functions, and self-regulatory functions of Osaka SE will be integrated with those of Tokyo SE, Japan Securities Clearing Corporation, and TSE Regulation, respectively.

CNSX Discounts Listing Fees 60%

www.marketwatch.com

Canadian National Stock Exchange (“CNSX”) today announced an initiative designed to provide relief from the high costs of maintaining a public listing on other Canadian stock exchanges with a discount of 60% discount to new CNSX applicant fees.

Zimbabwe: ZSE Automation By Next Year

The Herald

THE Zimbabwe Stock Exchange will be fully automated by end of Q1 2014.

Products

ICE Futures May Add Cotton Contract With Non-US Origin

Bloomberg

ICE’s U.S. unit plans to introduce a new cotton contract that may allow delivery of fiber produced outside the country.

Technology

Perseus Connects BLK to BM&F Bovespa for Enhanced Liquidity and DMA

Low-Latency.com

BLK Sistemas Financeiros has connected to BM&F Bovespa through the Perseus Telecom LiquidPath connection of sub 50 microseconds.

Indexes

Nasdaq OMX expands global index family

ETF Strategy

The Nasdaq OMX Group has expanded its Nasdaq Global Index Family, resulting in the launch of an additional 21,000 new indices. The enlarged family represents more than 98% of the global equity investable marketplace and includes in excess of 25,000 separate indices.

PLY: Indices in a time of big data processing…

Career Path

Ex-NYSE data chief joins Markit (subscription)

Financial News

Mark Schaedel, a former head of data at NYSE Euronext who was at the heart of an industry initiative to bring greater price transparency to Europe’s equities markets, has joined Markit to oversee its suite of equities products.

PLY: An ardent unifier of tapes joins Markit, can they unite where exchanges have so far failed?

Financial Calendar

Interactive Brokers Group second quarter financial results scheduled to be published today;
Charles Schwab Corporation is expected to report earnings today;

Analyst Notes

Macquarie reissued their outperform rating on shares of NASDAQ OMX Group

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.

Earnings Decline Projected for Charles Schwab ( SCHW )

Forbes

Analysts are looking for decreased profit for Charles Schwab when the company reports its Q2 results Tuesday, July 16, 2013. Charles Schwab reported profit of 20 cents a year ago, but the consensus estimate calls for earnings per share of 19 cents this time around.

Crowdfunding

Crowdfunding Power: Solving Climate Change and Other Community Needs

Justmeans

Crowdfunding could be an incredibly powerful way to deliver a decentralised energy system. In Germany, over 50 per cent of renewable energy capacity is now community-owned.

Cal-X Crowdfund Connect Selects EarlyIQ for Diligence and Transparency Services to Protect Investors

Sacramento Bee

The California Stock Xchange (Cal-X) and Cal-X Crowdfund Connecthave selected EarlyIQ, Inc. of San Diego to provide enterprise management reports for use in vetting, diligence, and fraud detection services that will further help protect investors on future Cal-X platforms.

Other stories

Free market is best way to combat climate change

Phys.Org

The best way to reduce carbon emissions and combat climate change is through the use of market forces, according to a new study.
Researchers who monitored the effectiveness of the European Climate Exchange (ECX) – the world’s biggest carbon trading platform – found it to be as efficient as Europe’s two biggest exchanges, the London Stock Exchange and the Euronext Paris.

PLY: Good news insofar as it was patently obvious to all bar the usual insidious liberal ‘intelligentsia’ which seeks to tax anything and then distribute the revenue inefficiently.

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