July 18 2016

elb2

For those that missed the weekend, Pokemon Go seems to be quite the thing this summer albeit, things in Turkey got a bit out of hand. Plus ca change, Britain dominates the Tour de France and the snowflakes are still struggling to cope with the realpolitik of Brexit. Happy Holidays.

We hit 205 days to the DB1-LSE antitrust danger zone with news the works council of DB1 is applying the sort of astute deal assessment which would, in more normal companies, come from the management.

Back to Brexit, I burst some of the biggest myths last week which prevail amongst the snowflakes and mainstream media still clinging desperately to the notion that Britain is about to disintegrate. The latest Premium post is Brexit Mythbusters: Northern Ireland. (You can now access my Brexit files in Premium through this contents directory: Brexit – Main File). More to follow as the situation develops…

Public Markets

New UK Fin Min To Fight Euro Clearing Protectionism (subscription)

Tim Wallace – Daily Telegraph

PLY: The nakedly protectionist instinct of Buba/ECB/EU writ large on clearing will not benefit anybody if pursued.

DB1 Works Council: New Deal Required

European Online

PLY: The DB1 works council pragmatically does the job of management in noting the large flaws in the deal as negotiated in haste and clearly without much in the way of foresight or perspective.

QV Premium: DB1-LSE Merger Brief.

ING Shuts Institutional Brokerage In Poland Amid Market Malaise

Konrad Krasuski – Bloomberg

PLY: Sad to see the Polish “market malaise” continuing but the continued interventionist approach of government is frightening investors away.

Buy Side Focuses on Order Routing

Shanny Basar – Marketsmedia

Consultancy Greenwich Associates report large institutions are shifting trading volume to algorithmic avenues of execution which has kept the overall commission pool flat. The annual pool of cash equity commissions paid by institutional investors to brokers on US equity trades was $9.65bn (€8.7bn), down more than 30% from its peak in 2009 but 4% more than the low of $9.3bn reported in 2013.

Abu Dhabi Global Market And China Securities Regulatory Commission Sign Agreement On Market And Regulatory Collaboration

Mondovisione

The Financial Services Regulatory Authority (FSRA) of ADGM and the China Securities Regulatory Commission (CSRC) entered into an MoU to facilitate cross-border activities and enhance regulatory collaboration between the two jurisdictions.

LME Says Ring Trading Moves To Emergency Venue After Offices Shut

Reuters

LME will move open outcry trading to its disaster recovery site in Chelmsford, east of London, on Monday and Tuesday because its offices have been closed due to a structural issue, the exchange said in a statement on Sunday.

The exchange, the world’s oldest and largest market for industrial metals, said a potential safety issue in the building that houses its offices on Finsbury Square in London’s financial district was discovered on Saturday.

PLY: Ooops one hopes the issue is not a dodgy metal girder as that could be embarrassing obviously, even though LME is merely a tenant in its new building.

Master Plan Implementation To address Retail Investors’ Challenges – SEC

Peter Egwuatu –  Vanguard

NB That is SEC of Nigeria…

Private Markets

New Rules Force More Stock Brokers To Surrender Licences

Shahid Shah – The News

KARACHI: At least 12 stock brokers of Pakistan Stock Exchange (PSX) have surrendered their Trading Rights Entitlement Certificates (TRECs) to the management as their business became tougher under new regulations.

EXIST In Talks With Turkey’s Neighbors To Merge Markets

Daily Sabah

Energy Exchange Istanbul (EXIST) General Manager Hüseyin Savaş has said talks related to collaborating with energy markets in Turkey’s neighboring countries, in addition to European countries, and market mergers are still in progress.

Membership Verification Threatens NSE’s Ownership Change

Taofik Salako – The Nation Newspaper

A simmering disagreement between the council and management of the Nigerian Stock Exchange (NSE) and majority of its members over the accurate list of its members is threatening the implementation of the change in the ownership structure of Nigeria’s only stock exchange.

Nairobi Securities Exchange Can Now Run Derivatives Market

Geeska Afrika

…after receiving formal recognition as a self-regulating organisation from the Capital Markets Authority.

Nepse Extends Share Trading Hours To Four

Prahlad Rijal – The Kathmandu Post

Nepse has extended the trading hours from three to four hours, effective from Sunday.

The secondary market will now remain from 11:00am to 3:00pm.

Bitcoin Regulations Not Welcomed by Everyone in Bitcoin Community

newsBTC

There are a set of companies and organizations stressing for regulations in the Bitcoin sector , which an opposing camp believes will violate the very principles the digital currency is built on.

Regulating Blockchain: The Israeli Block In The Chain

Brian Worley – CoinReport

The recent, May 2016 resolution adopted by the European Parliament, a fairly conservative institution, to take a “hands-off” approach to the regulation of the Blockchain may signal a significant about-face in the approach towards Blockchain and Virtual Currencies (VCs).

Special Section: FTI, NSEL, India at the Crossroads

PLY: BSE and FTIL up 2%, as others fear jail:

ED’s Arrest Of Jignesh Shah Sparks Fear Of Incarceration Among Other Accused

Ram Sahgal & Maulik – The Economic Times

The Enforcement Directorate’s arrest of Jignesh Shah, — promoter of the scam hit National Spot Exchange (NSEL) — appears to have sparked fears of similar incarceration among the other accused in the case.

Fast-track Court Set Up To Expedite NSEL Cases

Dilip Kumar Jha & Shrimi Choudhary – Business Standard

Following direction from the Bombay High Court, a sessions court in Mumbai on Friday set up a fast-track court for speedy disposal of National Spot Exchange Ltd (NSEL)-related cases.

QV Premium: NSEL Scandal Brief – Main File

Technology

Cinnober Chosen For Major Design Study

Mondovisione

Cinnober has signed an agreement with a major international exchange group to conduct a comprehensive design study for utilizing Cinnober’s technology for real-time clearing for listed derivatives as well as a complete CSD system.

PLY: Fascinating… Naturally we all wonder who it might be…

Osaka Bourse Revamping Derivatives Trading

Nikkei Asian Review

Next J-Gate can process orders, contracts and notices in 100 microseconds — 20 times as fast as its predecessor. It goes live this coming Tuesday.

SGX Outage Triggered By Hardware Issue: CEO

Channel News Asia

SGX Securities Market Reopens After Disruption

Aradhana Aravindan &  Marius Zaharia – Reuters

SGX, Saying Sorry Is Not Good Enough

Goh Eng Yeo – The Straits Times

The “technology problem” that caused the shutdown of the securities market on Thursday was “triggered by hardware”, said Singapore Exchange (SGX) CEO Loh Boon Chye in a conference call on Friday (Jul 15).

Mr Loh clarified that SGX’s technology is supplied by Nasdaq, but did not say if the problem originated internally or from the vendor.

SGX To Transfer Regulation Unit To Subsidiary Company With Separate Board

Mondovisione

Singapore Exchange (SGX) will establish a separate subsidiary company (RegCo) to undertake all the front-line regulatory functions it currently performs. The move aims to further enhance the governance of SGX as a self-regulatory organisation (SRO) by making more explicit the segregation of its regulatory functions from its commercial and operating activities.

Blockchain Gains Inroads In India

Rachel Chitra – The Times Of India

Indian banks have started engaging in pilot projects on blockchain, banks are looking at private ledgers to reduce transaction costs, interchange fees, etc.

BNP’s Ex-Blockchain Lead Is Now Coding Smart Contracts For Clearinghouses

Michael del Castillo – CoinDesk

PLY: Article about Colin Platt of dPactum who was on my panel at the excellent ICDA Blockchain event in London a few months back.

Products

Jefferies, LendingClub Said to Eye Revival of Scuttled Bond Sale

Matt Scully – Bloomberg

Jefferies Group is again considering selling bonds backed by LendingClub Corp. consumer loans, after disclosure issues at the online lender scuttled an effort earlier this year.

CME Readies 6 Weekly FX Option Contracts For Electronic Trading

LeapRate

CME Group announced that effective Sunday, August 7, 2016 for trade date Monday, August 8, 2016, and pending all relevant CFTC regulatory review periods, Chicago Mercantile Exchange will make available its six (6) existing FX weekly options contracts for trading on CME Globex and for submission for clearing through CME ClearPort

Contracts to list:

  • Mexican Peso/US Dollar (MXN/USD)
  • Brazilian Real/US Dollar (BRL/USD)
  • New Zealand Dollar/US Dollar (NZD/USD)
  • Euro/British Pound (EUR/GBP)
  • Euro/Japanese Yen (EUR/JPY)
  • Euro/Swiss Franc (EUR/CHF)

TOCOM Has Announced That July 25th Will Be The Start Date Of New Gold Physical Transaction

Investor Village

Indexes

Shenzhen Securities InformationCo.,Ltd.And Euronext Sign An Index Cooperation

Mondovisione

Recently, Shenzhen Securities Information Co., Ltd. (SSIC) and Euronext signed an Index Cooperation Agreement, signaling that the parties will develop exchange and promotion based on their respective index business and energetically carry out innovative cooperation in the field.

Career Paths

Following the completion of Nasdaq’s acquisition of ISE on June 30, 2016, Nasdaq, Inc. announced the election of seven additional directors to the Boards of The NASDAQ Stock Market LLC, NASDAQ PHLX LLC and NASDAQ BX, Inc. and the election of sixteen directors to the Boards of the ISE, LLC and ISE Gemini, LLC and fifteen directors to the Board of ISE Mercury, LLC. Directors serve a one-year term.

SETL announced additional appointments to its board. Rachel Lomax, former Deputy Governor of the BoE and Ed Richards, former CEO of Ofcom, join the SETL board, following the appointment of Sir David Walker as SETL Chairman in December 2015. PLY: SETL also claim to have raised funding but didn’t provide any data on the round(s), investors or pre/post money valuation. Clearly some work needs to be done in achieving transparency via the Blockchain.

Paul Richardson, a 14 year veteran of the FCA has now departed CME Europe as Chief Regulatory Officer according to FOW.

ICE has reshuffled management for its European franchise, appointing Stuart Williams as COO for its futures exchange, effective immediately. He was previously director of corporate development.

Financial Calendar

19.07 – IBKR Q2 2016 Results

19.07 – SEC – Advisory Committee On Small & Emerging Companies

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

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

Share Notes

IntercontinentalExchange Group Inc. (ICE) Shares Bought by AMP Capital Investors Ltd

Mideast Time

Ancient Art LP Increased Interactive Brokers Group In (NASDAQ:IBKR) by $10.27 Million as Shares Declined

Consumer Eagle

Analyst Notes

Tullett Prebon “buy” Rating reiterated by Numis – 450 Target Price

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

Crowdfunding

Do Crowdfunding Investors Need Better Protection?

Jim Atkins – iExpats.com

Crowdfunding watchdogs want to tighten up the rules to protect peer-to-peer lenders and equity investors. As the value of crowdfunding investments increases with more than 100 platforms completing deals worth £2.7 billion last year, the Financial Conduct Authority wants to check the market is safe for lenders and backers.

PLY: A clear risk now appears to be counterparty…

A Case Of Regulatory Evolution: A Review Of The UK FCA’s Approach To Crowdfunding

Robert Wardrop & Tania Ziegler – Crowdfund Insider

Across Europe, crowdfunding is quickly moving from a fringe funding instrument to becoming a mainstream – nance channel, connecting “crowds” to fund businesses, projects and individuals

Indications Of Interest For Crowdcube Share Offer Now at £50 Million

JD Alois – Crowdfund Insider

Crowdcube, the UKs largest investment crowdfunding platform by amount of capital raised, will launch its most recent self-crowdfunding round this coming Tuesday.

Other stories

ESMA Updates Its Q&A Document On Prospectus Related Issues

Mondovisione

Turkish Business World Condemns Attempted Coup

Hurriyet Daily News

Turkey’s business world has condemned the July 15 attempted coup and voiced support for the country’s democracy, democratic institutions and national will.

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