July 20 2015

elb2

George Osborne pushes Martin Wheatley out of FCA, as HKEx settles aluminium fixing claims while Irish Central Bank enables use of ‘through train’ albeit perhaps not at the moment investors (without government prodding) are eager to get into the Chinese market.

It’s a day to ponder how centralised solutions from committees don’t deliver. Dodd Frank is 5 years old and lots of folk are discussing shorter clearing times while the elephant in the blockchain is readily available for real-time solutions. More exchanges are leaping on that bandwagon (do they all really know what they are doing?….I am inclined to wonder how broad is the arb between comprehension and lip service).

Public Markets

Euroclear H1 2015 Operating Performance – Increased Client Activity Levels & Favourable Market Conditions Support Robust H1 Operating Results

MondoVisione

ATHEX Risks Turning Into A Ghost Market

ekathimerini

The ghost of a marginalized Greek stock market, as it was before the country’s access to the eurozone, is now haunting Athinon Avenue…

HKEx Says Settlement Reached On US Aluminium Price-Fixing Claims

Reuters

HKEx said on Sunday (press release here) it had settled two class-action lawsuit complaints against itself and subsidiary LME over allegations of anti-competitive and monopolistic behaviour.

Irish Regulator Lets Funds Trade On HK-Shanghai Stock Connect

Reuters

Read our Premium HKEx – SSE – Stock Connect Brief Part 4.

China’s Hunt For Short-Sellers Tests Legal Boundaries (subscription)

Gabriel Wildau – Financial Times

China’s Markets Are Free Only So Long As They Rise (subscription)

James Mackintosh – Financial Times

China’s Communist Party Saves The Stock Market

Manas Chakravarty – Livemint

In the wake of the Chinese stock market’s dramatic fall early this month, police and securities regulators announced they had launched an investigation into “malicious short selling” in the equity futures market.

Read our Premium China Capital Markets Transformation Brief – Main File.

After Five Years, Dodd-Frank Is A Failure (subscription)

Jeb Hensarling – Wall Street Journal

Mr. Obama told the country that the legislation would “lift our economy.” The statute itself declared that it would “end too big to fail” and “promote financial stability.”

None of that has come to pass.

PLY: I sincerely hope Mr Obama’s golf handicap has been reduced during his Presidency so he has some tangible success to show for a disastrous period in office for free markets and prosperity.

T2S: Winners & Losers (subscription)

Financial News

Time To Deliver For Europe’s Settlement Revolution (subscription)

Financial News

The ECB’s flagship securities market integration project, T2S, offers many benefits, but at a cost.

PLY: T2S demonstrates why committee led, top down, initiatives never deliver the optimum result. Europe is now strangled by an expensive outmoded solution when the world of commerce is increasingly real-time beyond the narrow confines of central banker-designed myopia.

Private Markets

Shanghai Shines Brighter With ‘Gold Exchange’

Tom McGregor – CCTV

The China and India markets have accounted for more than half of all global gold consumption for the past few years, however both countries hold little sway over the daily spot-pricing of the precious metal.

Read our Premium China Capital Markets Transformation Brief – Main File.

BSE Asks Govt To Scrap Tax Arbitrage

TOI

Bombay SE (BSE) has written to the government, seeking removal of capital gains arbitrage between listed and unlisted companies to stem possible misuse of capital market transactions, especially in penny stocks.

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX off 1%, FTIL flat, anniversary of the NSEL fiasco is looming. Alas resolution isn’t.

Technology

Eurex Technical Glitch Delays Trading In Futures, Options

John Detrixhe – Bloomberg

A technical glitch postponed the start of trading in futures and options contracts on Eurex by almost two hours, the latest in a run of breakdowns by exchanges. Technical problems caused the delay, according to a notice on its website.

CME & DB1 Join Blockchain Gang (subscription)

Financial News

PLY: It’s good to see the Blockchain adoption movement gaining steam albeit that most are buying into the idea if not really appreciating what they are doing and what can be done with it (again QV how innovation by committee doesn’t work).

Products

Taifex Eyes ETF Options, Equity Futures For Growth (subscription)

Alice Attwood – FOW

TAIFEX Launches Taiwan’s First RMB Currency Futures Contracts – New Products To Extend Development Of Taiwan’s Rapidly Growing Offshore RMB Financial Services Sector

MondoVisione

Indexes

FTSE Russell Confirms Compliance With IOSCO Principles

MondoVisione

FTSE Russell Confirms Compliance With IOSCO Principles – Update

MondoVisione

Career Paths

Reuters reports that Martin Wheatley, viewed as a hardliner in regulatory terms, had resigned as head of FCA after the government refused to extend his contract, due to end in March 2016. (FCA press release here)

PLY: British Parliamentarian Enoch Powell once noted how ‘all political careers ultimately end in failure’ and so it seems to be with political regulators too. Martin Wheatley appeared increasingly quixotically removed from capitalism as he sat astride the colossus of budgeting which is the FCA, an entity which appears all too often officious in places yet lacking in coherence. Apparently the British Finance Minister George Osborne didn’t want to renew Mr Wheatley’s contract – it will be interesting to see who he chooses as the UK regulator continues to appear perilously adrift from efficiency in various regards.

SEC promoted Michele Anderson to the position of Associate Director in the agency’s Division of Corporation Finance.  She begins her new role later this month.

Ned Davis Research Group (NDRG), an independent, global, institutional, financial research firm hired Charles McTiernan as Head of Global Sales. In his new role, Mr. McTiernan will report to Matthias Paul, CEO.

Betfair Pays Out £11m For Its CEO

The Times

Breon Corcoran has scooped an £11.6 million jackpot from his long-term incentive scheme at Betfair. The total package compares with only £1.3 million in pay and bonuses last year, making him one of the most richly rewarded bosses at a UK-listed company.

BGC Broker In Racism Case Says Joking In E-Mails Cut Stress

Patrick Gower & Manisha Jha – Bloomberg

A BGC Partners broker accused of sending racist e-mails said “inappropriate” messages are a typical part of life on London’s trading desks as under-pressure workers attempt to lighten the mood.

Financial Calendar

Interactive Brokers Q215 Financial Results – July 21, 2015

New announcement

SunGard Data Systems Q2 Financial Results – Thursday, July 30, 2015

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

Analyst Notes

Evercore ISI Upped Their Price Target On CME From $101.00 To $102.00 – “Buy”Rating

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

Other stories

Hong Kong’s Securities & Futures Commission Proposes Changes To Financial Resources Rules

MondoVisione

The Benefits Of Shortening The Securities Settlement Cycle, Commissioner Luis A. Aguilar, United States Securities & Exchange Commission[1], July 16, 2015

MondoVisione

PLY: It’s not a question of ‘what a difference a day makes’ but rather we require an impending reality that real time is everywhere else, why isn’t it the mainstream in finance?

ESMA Publishes Responses Received To CP On Clearing Obligation

MondoVisione

The responses can be viewed on the Consultation page.

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