July 25 2016

elb2Essex will apparently now sustain more trained LME traders during working hours than anytime since the tin market collapsed fuelling a generation of local minicab drivers. No fault of LME’s, they rented offices advertised as, ahem, “A precision-made contemporary office building.” Egg is clearly on the faces of Pembroke real estate, the owners of the building which suggests the worst of southern Mediterranean build quality is now reaching even the City of London. At least the building website has a tenant login – although I doubt that really makes up for the LME being forced to use their backup facility throughout summer.

Meanwhile for those who wonder why so many are cynical of the blob, consider this conundrum where the blobster is left in situ while the one who has a track record of vision and success, may be left unrewarded. Michael Spencer, one of the most successful self-made men in the City of London, is apparently being denied a peerage currently by British blob bureaucrats because his company had brokers (a few amongst thousands) tied up in the LIBOR scandal. Meanwhile, IMF Boss Christine Lagarde (whose agency has made such a consistent hash of its economic forecasts, especially with the UK: most recently concocting a misleading toxic Brexit message), is still in her job, not even taking a leave of absence, let alone resigning, having been indicted for a half billion dollar gratuity to a somewhat mercurial political donor when she was French Finance Minister. This reeks of fraud and came under her direct authority yet she is as immovable as the filing cabinets in IMF HQ. Meanwhile Michael Spencer has long deserved his peerage for his work in redefining the finances of the Conservative Party alone. That he is being apparently denied it by the self-same British civil service which has long put Europe’s best interests above Britain’s underlines everything which needs to be fixed in the blob. Hopefully we can applaud Lord Spencer soon. Given some of the de facto trailer trash recently appointed to the British upper house, a proper man of achievement and vision is just what is required in these fascinating times of opportunity for Britain!

Public Markets

DB1- LSEG: HLDCO123 PLC – Announcement Pursuant To Section 23 Para. 1 Sent. 1 No. 1 Of The German Securities Acquisitions & Takeover Act

MondoVisione

DB1 Has Less Than A Week To Win Shareholder Backing For Takeover Of LSE

James Burton – Daily Mail

DB1 Confident The Answer Will Be ‘Ja’ (subscription)

Martin Waller – The Times

The German firm needs 60% support for the deal – a figure it has already slashed from 75% amid signs of growing opposition.

QV Premium: DB1-LSE Merger Brief.

PLY: 198 days until the antitrust grey area is likely to kick in. Meanwhile, there is so much egg now on the faces of DB1, the EU may soon face a protein source shortage. Expect the usual arrogant expressions of self-wonderment when they finally crawl exhausted over the moved finishing line with smaller goal posts having finally edged the umpteenth penalty. The parish appears entirely unconvinced as to any aspect of this merger nowadays and both DB1 and LSE are in the throes of significant reputational damage entirely administered by their own hands. How very very sad.

 

Broker Mega-Merger Moves Two Steps Closer

James Phillipps – Citywire

The tie-up between Tullett Prebon and Icap has moved two steps closer after both US and Singaporean competition authorities gave the deal the green light.

QV Premium: Exchange Deals Brief – M&As.

PLY: The CMA is the only major regulator required to deliver their approval now. Given that ICAP seems to have attended to their concerns over niche energy business, it appears highly likely the deal is going through.

 

LME Is Going To Essex For A Summer Holiday

Caitlin Morrison  – CITY A.M.

LME is leaving the Square Mile for a while – and moving its trading base to its backup venue in Essex. The Exchange, which is usually based at 10 Finsbury Square, has been informed by its landlord that a structural issue within the building, which was discovered last weekend, would take longer than originally expected to resolve.

 

New Faces In LME Warehousing But Old Hands Still Dominate

Andy Home – Reuters

The number of LME physical storage units continues to decline in tandem with falling registered stocks.

As of July 8 there were 608 registered warehouses for the storage of base metals, down from 621 a year ago and from almost 700 in 2012 and 2013.

 

MOEX Shareholders To Vote On Consolidation Of Subsidiaries At EGM On 2 September

MondoVisione

At its meeting on 21 July 2016, MOEX’s Supervisory Board resoIved to call an EGM on September 2nd to approve consolidation by PJSC Moscow Exchange of its 100%-owned subsidiaries CJSC MICEX Stock Exchange and MB Technologies and the terms and conditions of the restructuring.

MOEX Proposes Buying Out Shareholders Opposing Merger

Reuters

Board proposes buying out shareholders opposing merger with MICEX and MB Technologies at 106 roubles ($1.65) per share.

PLY: At first glance this looks confusing, if not outright contradictory. Actually a buyback must be offered under prevailing law when a restructuring takes place. Hence those shareholders who oppose the consolidation of the 100% owned entities can have their shares in MOEX itself bought back at 106 roubles per share (a 10 rouble discount to the trading price as we race to pixel).

 

UK Markets Body Publishes Draft Rule To Stamp Out Manipulation

Reuters

The Fixed Income, Currency and Commodities Markets Standards Board published a standard on Friday that defines acceptable practise in financial and commodity markets, aiming to stamp out behaviour that prompted regulators to fine Barclays for fixing the price of gold.

 

Market Chaos Fear On Closing Auction

Esther Yu – The Standard

The closing auction session will be officially relaunched today, analysts believe it may lead to a short-term tumble. Some retail investors are also unaware of the session. The eight minute session starts automatically after the 4pm close. In that time investors can trade normally and the market will then close at any time between 4.08pm and 4.10pm. The exact closing time is determined randomly and varies every day.

PLY: We are racing to pixel just as apparently this first auction so will bring you the aftermath tomorrow…

 

Safeguarding Independence Of SGX’s New Regulatory Unit

Goh Eng Yeow – Straits Times

An Independent Bursa Malaysia Regulatory Arm?

Cindy Yeap – The Edge Markets

Bursa Malaysia Bhd, which is set to be the single approving authority for all secondary securities-based fundraising by listed issuers, could adopt an improved governance structure — hot on the heels of the SGX’s last week announcement to transfer its regulatory unit into a new subsidiary (RegCo) with a separate board.

Private Markets

BUCE Considering Opening Representative Office, Exchange Warehouse In Iraq

Belarus News

OAO Belarusian Universal Commodity Exchange (BUCE) may open a representative office or an exchange warehouse in Iraq. The idea was discussed among other things during the recent meeting of the BUCE management with a delegation of the Iraqi Businessmen Association (IBA).

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX down 3%, FTIL flat, Jignesh still in detention apparently.

Government To Set Up Special Court For All NSEL Cases

The Economic Times

Government today decided to set up a special court to hear all NSEL related cases on a priority basis while also asked the Enforcement Directorate to expedite action to recover Rs 3,721 crore (USD 553m) from defaulters, and regulator Sebi to complete probe of brokers at the earliest.

PLY: If it hurries up the sclerotic process so far, that sounds good to me.

ED May Seize Rs1,000 Crore (USD 149m) Of NSEL Assets

Jayshree P. Upadhyay – Livemint

The Enforcement Directorate will avoid targeting assets already attached by Mumbai police, plans to present united front with EOW in the case.

PLY: …and also this is encouraging: the blob is acting together. The EOW (fraud squad) and the ED seeking to pursue jointly against assets attached by the Mumbai police. #Encouraging.

Technology

What The Market’s Response To Brexit Tells Us About Trading Speed (subscription)

Nicole Bullock & Philip Stafford – Financial Times

While more trading is being carried out electronically, humans still have a role to play.

 

Bitcoin Developers Warn Ethereum Fork Sets Unsettling Precedent

Michael del Castillo – CoinDesk

The ethereum ecosystem is returning to normalcy following a high-profile hack last month that resulted in nearly $60m worth of investor funds ending up under the control of an unknown group or individual.

The ‘theft’, as some would label it, was eventually reversed through what’s known as a hard fork, a change in the code, ‘approved’ by an informal community vote, that effectively moved the disputed funds to a new account where investors could withdraw their original investments.

PLY: Yip, I think “theft” was a good term, it has some history and applies to the digital world too. Meanwhile, ethereum are, along with the developers of LME’s HQ, DB1, & LSE, all contributing actively to summer’s potential egg on face global protein drain.

 

UK Establishes FinTech Bridge With The Republic Of Korea

MondoVisione

PLY: Standard blob MOU fodder. Unclear if anything useful is afoot, although maybe some fintech ‘Remoaners’ may move to Busan or Seoul to avoid Brexit I suppose.

Products

Post-Crisis Clearing Rules Block Derivatives Users From Market (subscription)

Joe Rennison – Financial Times

Thousands of European financial institutions risk being blocked from using derivatives as they struggle to comply with new rules intended to strengthen markets after the financial crisis.

PLY: The perils of the precautionary principle writ large. In its haste to make markets secure, a very stability which has, er, de facto destroyed the Italian banking system, the EU has as ever delivered some highly inflexible rules for clearing which suggest the Euro-trajectory remains one more akin to mud huts and knitting our own sweaters than coherently applying the concept of economic growth. There is still time for logic to assert itself but this permanently reaching the last ditch before any vestige of logic applies is becoming a tediously repetitive element of the clearing regulation debate.

 

NYSE Successfully Petitions for a Simplified Listing Process for Actively Managed ETFs

BUSINESS WIRE

Bats Comments On SEC’s Approval Of Generic Listings Filing – Landmark Decision Pivotal For Actively Managed ETF Market

MondoVisione

Career Paths

On Thursday 21 July 2016, MOEX Supervisory Board appointed Anna Kuznetsova, MD of MOEX’s Equity & Bond Market and Igor Marich, MD of MOEX’s FX & Money Markets to be members of the Executive Board for two years.

 

SEC announced that Vincente L. Martinez, Chief of the SEC’s Office of Market Intelligence is planning to leave the agency in early August.

SEC also announced that Brian T. Croteau, Deputy Chief Accountant, is planning to leave the agency.

 

Business Standard reports that  NSE has revamped its board, appointing three new public interest directors including Chairman of Manipal Global Education Services and Infosysformer director & CFO Mohandas Pai.

Besides, former secretary at the Ministry of Corporate Affairs Naved Masood and KPMG India‘s former Deputy CEO Dinesh Kanabar have been included on the NSE’s board as public interest directors.

The board of NSE has 10 directors with Ashok Chawla, former chief of Competition Commission of India, as its Chairman till January.

 

Michael Spencer’s Allies Decry ‘Unfairness’ In Lack Of Peerage (subscription)

Oliver Ralph & George Parker – Financial Times

Allies of Michael Spencer, the founder of Icap, have said it would be “the height of unfairness” if he were to be denied a peerage in David Cameron’s resignation honours list because of the Libor scandal.

PLY: It is simply disgusting that Michael Spencer is being treated in this way given his clarity of taxation in the UK and longstanding support of good causes such as through the ICAP charity days which have raised more than Live Aid…

Financial Calendar

27.07 – Nasdaq Q2 2016 Results

27.07 – SGX Full-Year Results FY2016

28.07 – BGC Partners Q2 2016 Results

28.07 – CME Q2 2016 Results

28.07 – Euronext Q2 2016 Results

28.07 – ITG Q2 2016 Results

28.07 – Thomson Reuters Q2 2016 Results

29.07 – CBOE Q2 2016 Results

29.07 – WSE H1 2016 Report

03.08 – ICE Q2 Results

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

Other stories

HTG Capital Partners To Acquire Operations of Kottke Associates

Traders Magazine

Expected to close in Q3 2016.

 

Abu Dhabi Securities Exchange & Abu Dhabi Global Market Sign MOU On Bilateral Cooperation

MondoVisione

 

 

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