July 26 2013

elb2 Numbers from DB, GFI and so forth, MCX shareholding change, BVB shareholders demand a dual board structure, CBOE apparently buying Liquidpoint to provide more software functionality, brutal views on LIBOR and a boost for Canada’s newest exchange project…

…Now if only London had something approaching the infrastructure of a third world nation like Romania, then this news would all have been in your inbox much earlier. Heavens above how efficient could Britain be if they mastered the art of coffee shop wifi and indeed realised that modern digital economies are fuelled by free internet provision as part of the service…

Public Markets

DB Q2 Earnings Fall On Trading

Bloomberg

DB Q2 profit fell 8.2 percent as trading volumes declined.

Net income for the quarter dropped to 171 million euros ($227 million) from 186.2 million euros. Earnings before interest and taxes dropped to 256.3 million euros from 278.8 million euros a year earlier.

CBOE Plans To Buy LiquidPoint

chicagobusiness.com

CBOE Holdings Inc., the biggest U.S. options exchange, plans to acquire the LiquidPoint LLC options technology unit of ConvergEx Group LLC.

PLY: Interesting possible development. Some are instantly calling this a game changer. I need to think about it a bit more…

The Best Way To Reform Libor: Scrap It (subscription)

Wall Street Journal

The British have learned nothing from the recent Libor scandal.

PLY: Brutal commentary worth reading!

Canadian Securities Regulators Enter Into Supervisory Cooperation Arrangements With EU And EEA Financial Regulators

The Ontario Securities Commission (OSC), Autorité des marchés financiers (AMF), Alberta Securities Commission (ASC) and British Columbia Securities Commission (BCSC) today announced they have entered into supervisory Memorandums of Understanding (MOUs) with financial regulators of member states of the European Union (EU) and European Economic Area (EEA) regarding the supervision of alternative investment fund managers as required under the EU Alternative Investment Fund Managers Directive.

Three Bucharest SE Shareholders Demand Statue Change

Ziarul Financiar

BVB have received three applications from shareholders holding over 5% of the capital, in order to convene the Extraordinary General Meeting to approve the move to a two-tier (dualist) system of management and to amend the constitutive act by lowering the quorum asked for holding extraordinary meetings.

PLY: Perhaps the Ludwik Sobolewski honeymoon is over before it has begun?

Private Markets

World Federation of Exchanges Publishes H1 Highlights

Fort Mill Times

The World Federation of Exchanges’ (WFE) semi-annual survey of global markets found that the value of share trading on its member exchanges increased 23% during the first half of 2013, while the volume of exchange-trade derivatives increased 14% after a negative performance in 2012.

The WFE report found that the relatively good performance of stock markets in the recent period was largely driven by the Americas. The growth rates of market capitalization observed in the last three semesters in Americas (chronologically +10.3%, +7.4% and +7.4%) enabled this region to significantly surpass the previous peak of market capitalization level observed in June 2011.

BCE, OMERS Back New Canadian Exchange (subscription)

Wall Street Journal

Canada’s biggest telecommunications company and one of its largest pension funds are backing a group launching a new stock exchange that’s aiming to compete directly with the country’s flagship stock exchange operator, according to people familiar with the matter.

Earlier this year, Royal Bank of Canada and a handful of other financial backers unveiled plans for Aequitas Innovations Inc. (a trading platform).

PLY: A good fillip for this planned TMX competitor . led by Alpha founder Jos Schmidt.

Electric Privatisation: Bourse Content

AllAfrica.com

17 electric companies will end up listed on NSE.

PXIL Gets Dec Deadline To Hike Net Worth

Business Standard

The Central Electricity Regulatory Commission (CERC), has rejected Power Exchange India Ltd (PXIL)’s demand to give extension up to March 31, 2015, to achieve a net worth of Rs 25 crore, as mandated under the Power Market Regulations, 2010.

Instead, the regulator has stuck to its earlier directive of PXIL increasing its net worth to Rs 25 crore by March 31, 2014. The power regulator has clarified no further extension would be granted.

Products

SGX To Trade First SGD-Yuan Stock

Reuters

Yangzijiang Shipbuiding Holdings Ltd will be the first stock on the Singapore Exchange to be traded in both Singapore dollar and yuan, August 5.

Career Path

Tel Aviv Chairman Resigns, Follows CEO

Reuters

Tel Aviv Stock Exchange Chairman Saul Bronfeld resigned on Thursday, one week after the bourse’s chief executive, Ester Levanon handed in her resignation.

The resignation came a day after Israel Securities Authority Chairman Shmuel Hauser sent a letter to the exchange’s board saying Bronfeld had failed in his job.

Bronfeld, who has been chairman since 2006, blamed the intervention of the Securities Authority for his decision. From 1991-2006 Bronfeld served as CEO of the bourse.

PLY: Bloodbath in Tel Aviv. Frankly not good for any marketplace whatever way one looks at it, this is costing Israel reputational points. The battle lines are not clear and the place of the regulatory in the whole affair looks to be rather more confrontational than many might deem reasonable. Insights from the ground are welcome, we’re trying to glean more input ourselves…

Financial Results/Dividend News

NASDAQ Q2 Dividend $0.13

The Utah People’s Post

NASDAQ OMX announced a quarterly dividend on Wednesday, July 24th, of $0.13 per share Friday, September 27th. This represents a $0.52 annualized dividend and a dividend yield of 1.54%.

GFI Group Inc. Announced Second Quarter 2013 Results; Declares Quarterly Cash Dividend

— GAAP Total Revenues: $242.3 Million; Non-GAAP Total Revenues: $241.1 Million
— GAAP Net Revenues: $198.4 Million; Non-GAAP Net Revenues: $197.3 Million
— Software, Analytics and Market Data revenues: $21.8 Million, up 6.5% year-over-year
— GAAP Net Income: $6.7 Million or $0.05 per Diluted Share
— Non-GAAP Net Income: $7.1 Million or $0.06 per Diluted Share
— Cash Earnings: $27.6 Million or $0.22 per Diluted Share

GFI has scheduled an investor conference call to discuss the results at 8:30 a.m. (Eastern Time) on Friday, July 26.

Changes in investors/shareholders

DTCC Buys Thomson Reuters Stake In Omgeo (subscription)

Financial Times

DTCC will buy the 50 per cent it does not own of Omgeo, a post-trade services provider, from Thomson Reuters.

PLY: Interesting deal for DTCC as the race for services most people never think about gains pace!

Swiss Finance Acquires Stake In MCX

DealCurry

Swiss Finance Corporation Mauritius has bought 473837 shares of Multi Commodity Exchange through a bulk deal transaction on NSE. The purchase was made at R718.12 per share aggregating the entire transaction close to R34.03 Cr. With this Swiss Finance holds 0.93% stake in the exchange.

Analyst Notes

Morgan Stanley Increases LSE Price Target to GBX 1,705 reiterates “overweight” rating.

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

All Analysts, Banks and Brokers are welcome to contribute to this section.

Crowdfunding

Healthcare Crowdfunding Platform Watsi Grabs $1.2M From Tencent, Paul Graham, Vinod Khosla, Ron Conway And More

techcrunch.com

PLY: An interesting take on various aspects of the crowdfund model. Worth reading.

Crowdfunding The Classics: 20 Years and $1.8 later “Shadowrun” Returns

The Verge

PLY: Fascinating stuff, just as record labels and publishing houses cannot maintain their Dickensian models, so too game production is going outside the system. Watch out Hollywood, you are going the same way too…

Other Stories

Prague’s Fading Bourse Loses Favor as Komercni Says Buy Abroad

Businessweek

The only publicly-traded Czech bank is advising clients to buy shares in the U.S., France and Germany as Prague Stock Exchange (PX) trading wanes and the benchmark index posts Europe’s worst slump after Cyprus.

PLY: The tragedy of Prague. Once looking like it had momentum but private equity shareholders were shaken out post-Lehman and the embrace of Vienna alongside government apathy in the Czech Republic has sent the bourse backwards. If anybody in Warsaw still thinks a Warsaw-Vienna combination is remotely viable, this tragic parable is an excellent example of how New Europe needs new approaches and Warsaw SE needs to stay focussed on its unique advantages in the region.

Alcoa Urges LME To Provide More Transparency In Aluminum Trading

Bloomberg

Alcoa the largest U.S. aluminum producer, is urging the London Metal Exchange to provide more transparency into its marketplace for the lightweight metal.

“The outcome of price determination that is not transparent is eventual lack of trust, people will look for alternatives.”

PLY: A blood curdling quotation running hot on the heels of some angry words in recent House hearings. Warehouse reform is big on the agenda and greedy banks et al have managed to once again sully their reputations from sub-zero levels…

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