July 19 2016

elb2

No Pokemon spotted in or around this newsletter so far…

Crowdcube eyes secondary market, MarketInvoice raises $9.5 from Polish PE fund, Japanese day trader catnip index futures launched and there’s more, happy scrolling:

Public Markets

Charles Schwab Q2 2016 Results

Charles Schwab

vs Q2 2015: net revenues 1.8 bln, up 17%, net income $452 million, up 28%.

 

BGC Partners Announces Agreement to Acquire Sunrise Brokers, a Leading Financial Brokerage for Equity Derivatives

BGC Partners

Details of the transaction were not disclosed, and completion of the transaction is subject to legal and regulatory approvals and certain closing conditions. Sunrise Brokers generated consolidated revenues of approximately $90 million in the financial year ending December 31, 2015.

QV Premium: Exchange Deals Brief – M&As.

PLY: Interesting acquisition of a longstanding broker pioneer in OTC markets.

 

A Structural Problem The LME Can Fix

Andy Home – Reuters

LME finds itself operating in “business continuity” mode with open-outcry ring trading migrating east of London to the disaster recovery site in Chelmsford because of “a structural issue” within the Exchange’s new home in Finsbury Square. The building remains out of bounds until at least Wednesday, July 20 as “the landlord, building manager, structural engineer and other relevant parties (work) to establish the extent of the issue, its implications and resolution.”

PLY: Good to see LME making the switch to its backup effortlessly as a result of structural problems not of their doing.

Traders Plot Walkout From LME As Foreign Owners Push Up Prices

James Burton – Daily Mail

Martin Abbott is leading the breakaway bid. ‘We’ve come to the point where there is no point sitting around,’ he said.

PLY: The LSE ought to bear in mind that if it actually does get sold to DB1, then wrapped into an Am’dam HQ which very obviously does an anschluss repo to Frankfurt and then ends up a Germanic pastiche of London (sort of Deutsche-Austin Powers-style)…London’s flow will fragment as every current actor and many more carve up what will become a London Stock Exchange but not the London Stock Exchange. Thus the metals shift is surely just, er, sabre rattling from, ironically the CEO which HKEx enriched with their original purchase.

 

SGX Echoes NYSE in Spinning Off Policing Role

Andrea Tan – Bloomberg

As mentioned yesterday, SGX will house regulatory functions in a unit with its own board, following calls to separate the role.

 

HK SFC Said To Survey Brokerages On Dark Pool Compliance

Business Times

SFC sent about 70 questions that aim to ensure the required procedures for trading, order facilitation and monitoring in dark pools are being followed.

 

CFTC Extends Designation Of DTCC-SWIFT As LEI Provider

Mondovisione

 

Canadian Securities Regulators Recognize Three Trade Repositories

Mondovisione

Securities regulators in Alberta, British Columbia, New Brunswick, Nova Scotia and Saskatchewan announced the approval of recognition orders for three derivatives trade repositories: CME, DTCC Data Repository (U.S.) and ICE Trade Vault. Securities regulators in Newfoundland and Labrador, Nunavut, Northwest Territories, Prince Edward Island and Yukon expect to approve comparable recognition orders for some or all of these trade repositories before trade reporting requirements begin in their jurisdictions.

Private Markets

NCDEX Execs Cleared In Castor Seed Payments Row

Jayshree P. Upadhyay – Livemint

 

Saudi Arabia’s CMA: Announcement In Relation To The Amendment Of The Resolution Of Securities Disputes Proceedings Regulations

Mondovisione

 

CME Exec: Bitcoin ETFs Signal Digital Asset Maturity

Sid Kalla- CoinDesk

CME’s executive director and digitization lead has called the increasing number of planned bitcoin ETFs a sign that the market for blockchain-based digital assets is maturing.

 

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX and FTIL flat to small off as the courts seem to be regaining their mojo for arrests – keep it up…

Court Rejects ED Plea For Jignesh Shah’s Custody In NSEL Case

Economic Times

Jignesh Shah Remanded To Judicial Custody Till 1 August

Jayshree P. Upadhyay – Livemint

Jignesh Shah In Judicial Custody, Files For Bail

Indian Express

The court has directed the ED to file its reply on Jignesh Shah’s plea on July 26.

ED: Shah Ran Stock Exchange As A Financial Company

Hindustan Times

‘Top NSEL Officials Received Kickbacks Worth Crores’

Hindustan Times

NSEL’s Defaulters Diverted Funds To Real Estate

Hindustan Times

PLY: We have seen a fairly endless cycle of shark jumping where it has frequently looked as if the culpable might be punished and reparations undertaken. No point being too optimistic this time but a Jignesh in jail is always a hopeful sign that at last something might be done…

Technology

JPX Launches Next Generation Technology Suite Powered by Nasdaq

Nasdaq

JPX has gone live with their new next-generation NASDAQ derivatives trading system for the JPX subsidiary, Osaka Exchange. This is a milestone in the relationship between Nasdaq and JPX, who have been working together since 2011.

Osaka Exchange: The Release Of New Derivatives Trading Platform “J-GATE”

MondoVisione

 

SGX Provides Further Details On Market Disruption

MondoVisione

Re. market disruption on Thursday, 14 July 2016.

 

Moscow Exchange: Public Testing Of DataSpace1 As Backup Datacenter

Mondovisione

This Saturday 23 July 2016 the public test of the MOEX migration to the new backup data center DataSpace1, including the disaster recovery test, will be held.

Products

HKEX, Best Known For Stock Trading, Eyes A Role In Currency Market (subscription)

Enoch Yiu – SCMP

HKEX has been trying to move into the currency market, a wise move in light of the internationalisation of renminbi – but a challenging one all the same.

 

EEX Awarded To Host EU Common Auction Platform For Emission Allowances

MondoVisione

 

If Data & Standards Were Easy…

Max Bowie – Waters Technology

Whether dealing with utility startups or commercial offerings, should you throw your weight behind making something a “standard,” or back alternatives in the spirit of healthy competition?

 

Amman SE: New Listing Directives & Regulating Directives For Trading In Unlisted Securities Starting 4/8/2016

MondoVisione

Indexes

KBW & Nasdaq Launch Fintech Index

BUSINESS WIRE

KBW & Nasdaq announced the launch of the KBW Nasdaq Financial Technology Index, a preeminent index designed to precisely track the performance of those companies that leverage technology to deliver financial products and services.

PLY: Interesting index and very tradeable I am sure. However this isn’t the cool zeitgeist of the cutting edge and not in any way a bleeding edge guide. However the term “companies that leverage technology to deliver financial products and services” is an accurate assessment.

 

Japan’s Volatile Mothers Market Blasts Into The Future (subscription)

Leo Lewis & Lucy Colback – Financial Times

From Tuesday investors will be able to buy a Mothers futures contract for the first time.

PLY: From the Bugle’s own story: “the Tokyo Stock Exchange Mothers, a volatile, scandal-hit and wildly unbalanced 224-member index which features a developer of robotic exoskeletons, a motorised bed-maker and an importer of rare Amazonian berries.”

In short this is day trader catnip.

Career Paths

Jim Iorio has joined ICAP’s EBS BrokerTec as Global Head of Sales and will sit on EBS BrokerTec’s Executive Management Committee. He will report to Gil Mandelzis, CEO of EBS BrokerTec.

 

TMX appointed Jay Rajarathinam as Chief Information Officer, effective immediately. He reports to Jean Desgagné, President & CEO, Global Enterprise Services.

PLY: Interesting and high profile hire by Jean Desgagne, a rare instance of an ICE manager (he was originally in NYSE Euronext) leaving for another company.

 

HK’s SFC welcomes the re-appointment by the Financial Secretary of Ms Teresa Ko and Dr William Wong as NEDs for a term of two years with effect from 1 August 2016.

Ms Ko and Dr Wong were first appointed as NEDs of the SFC on 1 August 2012 and 1 August 2014, respectively.

 

Reuters reports that JSE confirmed the resignation of Dr Leila Fourie as an executive director of board. JSE has no current plans to appoint an executive director in place of Dr Fourie.

 

Markets Media reports that IEX hired Elaine Wah to oversee the venue’s in-house market surveillance effort. Wah is a recent Ph.D. graduate in Computer Science & Engineering from the University of Michigan.

 

ESMA Seeking Commodity Derivatives Experts To Join Consultative Industry Group

Mondovisione

 

Michael F. Hutt, Adjunct Professor, Electrical and Computer Engineering at the New York Institute of Technology, joins Speakerbus.

 

FINRA Board of Governors elected John J. “Jack” Brennan, Vanguard Group Chairman Emeritus & Senior Advisor, as FINRA Chairman effective Aug. 15, 2016.

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.

Crowdfunding

UK P2P Lender MarketInvoice Raises £7.2M (USD 9.5M)

Finextra

The funding was led by Polish private equity group MCI Capital which has also invested in Azimo, an online money transfer startup. Other investors included existing backer Northzone.

PLY: Very interesting, MCI is itself a fascinating story of how Polish entrepreneurs flourished before the government descended into demagogic control freakery. MarketInvoice is a top class business which clearly links the real economy with financial markets which has now raised $29.75 million in 4 rounds.

 

Crowdcube Seeks To Unlock Secondary Crowdfunding Market

William Turvill – CITY A.M.

Crowdcube plans to create an environment in which shareholders of private UK companies can sell their stakes, if demand exists.

PLY: Crowdcube is also considering allowing exits from its own shareholder base as its putative fundraising has vast sums pledged already.

Other stories

Moody’s Acquires Full Ownership of Korea Investors Service (KIS)

BUSINESS WIRE

 

EC: Remarks By VP Dombrovskis At The Atlantic Council

MondoVisione

PLY: A new TransAtlantic dialogue is on and it promises more than its sometimes shambolic predecessor. Interesting, constructive and conciliatory remarks from Dombrovskis whose career as a national politician cobbling together coalitions stands him in better stead to deal with Brexit than the frankly rather unhinged obsessives in various Presidential roles. Excerpt from a useful constructive text:

“What will my approach be? Above all, continuity. Lord Hill has done excellent work over the past two years to deepen the capital markets, to strengthen Europe’s Banking Union and to review existing regulation to check and make sure that it is as growth friendly as possible. He has built momentum and support across the piece. This is work we will build on. And where we can, we will quicken the pace of work.

Following the UK’s decision to leave the EU, ensuring financial stability is our first priority. We need to work towards an outcome that gives European industry and our international partners as much clarity as possible. It’s in our collective interest to maintain an environment that is friendly to investment and growth.

We want the UK to remain a close partner.”

 

CME Foundation Grants $3.6 Million to Support Math Education for Illinois Children

PRNewswire

PLY: A useful move to try to help shore up the somewhat dysfunctional state blob of Illinois. Under Jim Oliff’s Chairmanship the CME Foundation is doing good work for the future generation which is a heartening note to end today’s Exchange Invest Daily.

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