July 24 2015

elb2On the rush to pixel, I hear Plato is going into exclusive negotiations with Turquoise for a platform for its independent buy side initiative.

On a remarkably brisk summer’s day, Tradeweb wins contract from ECB. Channel Islands SE buys GXG, resolving latter’s regulatory impasse. NASDAQ numbers encouraging, capitalist Nikkei to buy the pinko from ailing Pearson ownership…and more, happy scrolling:

Public Markets

Nasdaq Q2 2015 Financial Results

Nasdaq

vs Q2 2014 Revenues less transaction-based expenses $518 mln, down 1%

Operating income $217 mln, up 13.6%

Net income $133 mln, up 31.6%

Diluted EPS $0.77

PLY: Very heartening income stats all round.

Pearson To Sell FT Group to Nikkei Inc.

Pearson

Pearson agreed the sale of FT Group to Nikkei Inc. for a gross consideration of £844 million (USD 1.3 bln), payable in cash.

PLY: Doubtless everybody has seen the headline by now. Nikkei not buying the FT building makes me wonder how many hacks will squeeze into the new offices? Good to see the pinko maintained those intuitive deal skills (honed in this parish alone, through such disasters as the confident belief LSE was about to buy LIFFE) by reckoning Axel Springer was the buyer just hours before Nikkei was announced.

Well at least the Chinese walls worked.

Nikkei explicitly believes in capitalism with small government. EU mandarins may wonder if this means the pinko’s stance as the Brussels Bugle is in danger. Who knows it might even return to coherently focussing on financial markets soon. Leaving Pearson’s erratic stewardship can surely be no bad thing for a once great title.

Nikkei & Axel Springer Bid Battle For FT Went To The Wire (subscription)

Arash Massoudi & James Fontanella-Khan – Financial Times

PLY: The classic FT cover up masquerading as a warts and all insight piece into what went on behind closed doors, glossing over the FT misidentifying the buyer. Bloomberg trailed the sale first and FT incorrectly reckoned Axel Springer would save the day (aka another soft left pro-EU entity which wouldn’t spoil the FT’s status quo).

Market Holds Breath On Nasdaq NFX

Alice Attwood – FOW

Nasdaq hopes to capture 10% of the energy market in the next two years with its new energy exchange Nasdaq Futures (NFX) but is there space in the market for a new player?

Last month Nasdaq claimed clearing costs at NFX will be half those on rival CME.

Greece Extends Market Shutdown To Fifth Week As Traders Trapped

Christos Ziotis & Nikos Chrysoloras – Bloomberg

A decision on when and under what conditions Greek financial markets will reopen was deferred to next week.

Clearstream & ICCL Collaborate On Triparty Margin Collateral Management

Clearstream

Indian Clearing Corporation Limited (ICCL) to be linked to Clearstream’s Global Liquidity Hub.

PLY: Very interesting – and presumably doubly attractive as getting money in and out of the protected Indian currency is tricky, so all parties may do more collateral trades to avoid moving cash?

LSE Delays Start Of Midday Auction To February

John Detrixhe – Bloomberg

LSE is citing its customers’ need for more time to run tests. The exchange had planned to introduce the auction later this year. As reported in May, NYSE also plans to institute a midday auction in an effort to boost liquidity in thinly traded stocks.

Investors Face Wait On Europe Dark Pool Caps (subscription)

Philip Stafford – Financial Times

PLY: Update on one of the most moronic protectionist aberrations of recent regulation: a dumb rule which will be expensive and complex to police. Classic Brussels, in other words.

China Confident Of Steadying Turbulent Stock Market, Says Vice Finance Minister

Peter Spence – Daily Telegraph

Boom in number of retail investors has made the country’s equity market ‘very difficult to supervise’.

The Meaning Of China’s Stock Market Intervention

Joshua Kurlantzick – Bloomberg

PLY: China appears to be opting for a collision course with the ‘middle income trap.’

Former Chinese Regulator Criticizes Government Stock Rescue

Ye Xie & Aleksandra Gjorgievska – Bloomberg

Gao Xiqing, an architect of China’s stock market and a former top regulator, said policy makers helped inflate equity prices and then mishandled the response to a collapse that wiped out $4 trillion in less than a month.

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

PLY: The notion of sticking together opposing tectonic plates, even with carbon fibre strengthened titanium duct tape, strikes me as unlikely to deliver a lasting solution.

Euroclear UK & Ireland Extends Settlement Hours

FTSE Global Markets

UK CSD operating CREST settlement system, is extending its settlement day for direct participant banks from summer 2016 to 18:00.

Private Markets

GXG To Sell SME Marketplaces To CISE

GXG

GXG Markets A/S agreed to sell their European marketplaces for SME’s, GXG Markets, to The Channel Islands Securities Exchange Limited (CISE). CISE will acquire the assets of GXG, including use of its trading system, its London offices and three London-based members of staff.

Earlier this month GXG Markets A/S announced its decision to voluntarily relinquish its Danish Market Operator licenses.

PLY: I am sympathetic to GXG who have been somewhat stitched up by what appeared to be truly ghastly regulatory moves. The market’s survival is good and marks an interesting first deal for the rejuvenated Channel Islands exchange itself bouncing back from a regulatory kerfuffle two years ago.

Taiwan – FSC Chairman: Stock Market Not To Extend Trading Hours For The Moment

Focus Taiwan

SEBI To Bring Algo Trading Guidelines In Two Months

Business Standard

We are examining a number of options to bring down the risk associated with such trade, said SEBI Chairman U K Sinha.

PLY: #Worrying.

SET Plans New Products, Services To Expand Long-Term Investor Base

The Nation

Dividend News

Nasdaq declared a regular quarterly dividend of $0.25 payable on September 25, 2015, to shareowners of record at the close of business on September 11, 2015.

Special Section: FTI, NSEL, India at the Crossroads

PLY: FTIL and MCX broadly flat.

Technology

Nasdaq Expects To Be First Exchange Using Bitcoin Technology

John Detrixhe & Ryan Hoerger – Bloomberg

Nasdaq CEO Hints At New Blockchain Projects

Pete Rizzo – CoinDesk

The technology will be “of fundamental importance to Wall Street,” Nasdaq CEO Bob Greifeld said. “The benefits to the industry are immense and cannot be ignored.” Nasdaq is partnering with infrastructure provider Chain to use blockchain to issue and transfer the shares of privately held companies. In May Nasdaq  announced plans to leverage blockchain technology as part of an enterprise-wide initiative.

More about Wall Street’s blockchain adoption earlier this week here and here.

PLY: An interesting start.

OpenMAMA Sees Strong Adoption Across Financial Services Sector – Significantly Increases Vendor Coverage & Re-Launches With A New Advisory Group

MondoVisione

Products

Tradeweb Wins ECB Contracts

Finextra

Tradeweb Markets has been awarded two contracts to supply its electronic trading platform (ETP) to the ECB.

PLY: Under Lee Olesky, Tradeweb continues to blossom. This is an excellent endorsement for the business.

Career Paths

The Sydney Morning Herald reports that SocietyOne has hired Mitchel Harad as CMO. Harad is the architect of the exponential growth at Lending Club, the US P2P lender that raised $US1 billion ($1.35 billion) in December in a blockbuster IPO.

Antonio Simoes, CEO for HSBC in the UK, becomes Chairman of the FCA Practitioner Panel from 1 August 2015. He has been a member of the Practitioner Panel for two years.

Instinet & Nomura Huddle Up In New York (subscription)

Financial News

Office move mirrors relocations in London and Hong Kong, where agency broker’s staff share premises with their Nomura colleagues.

Off Hours: Acting DGCX Chief

The National

PLY: I must admit to rather hoping Gaurang Desai would have been confirmed as CEO of DGCX by now…

Financial Calendar

Next week

Dubai Financial Market BoD’ Meeting – 27.07.2015

29.07.2015

SGX full-year results FY2015

BGC Partners’ and GFI Group’s Q2 2015 Financial Results

Thomson Reuters Q2 2015 Financial Results

CFTC’s Energy and Environmental Markets Advisory Committee

30.07.2015

WSE H1 2015 Financial Results

CME Q2 2015 Financial Results

SunGard Data Systems Q2 Financial Results

CBOE Q2 2015 Financial Results – 31.07.2015

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

Analyst Notes

AlphaValue Reissued Their “Add” Rating On LSE – GBX 2,796 Target Price

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

Other stories

SIFMA Statement On The NYSE & Nasdaq Framework To Enhance Resiliency Of The Closing Auction Process

MondoVisione

How CME Lost Its Colorful Floor

Tom Groenfeldt – Forbes

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