July 27 2016

elb2Lots of results cranking up from today on…

DB1 crawls over the redefined line for acceptances just before it would had had to change the deadline again to make sure shareholders supported the deal. I am indebted to a parishioner who notes the not very coded message in the new ISIN for the nominated holdco of DB1: SIN GB00BYMYCZ62 (emphasis added for clarity). The “Booby prize” is the award “usually given in recognition of a terrible performance or last-place finish” (Wikipedia). It seems apt the DB1 brandmeisters missed this obvious faux pas – wooden spoons all round it seems. That leaves 196 days until DB1 hits turbulence in the anti trust zone.

Meanwhile in Bigworld, the ructions of Brexit seem to be slightly calming, with European Commission officials allegedly reckoning it’s no longer “Code Red”, more Code “vague tiff with the Kardashians” having been downgraded from “full on Taylor Swift breakup aftermath” since the referendum result was announced.

Public Markets

HELEX H1 2016 Results

HELEX

vs H1 2015: net profit Euro 3.2m (USD 3.52m), down 41%, turnover Euro 14.9m (USD 16.4m), down 19.4%.

PLY: Helex is a great business held back by an awful economy constrained by a failing customs union. Alas. Tricky bit is investment timing as the Greek economy could go falling knife again anytime soon, especially as the Italian bank contagion looks to be really gaining momentum.

 

DB1 Investors (FINALLY!) Back $13.5 Billion Purchase of LSE

Will Hadfield & John Detrixhe – Bloomberg

Preliminary Acceptance Level Of The Exchange Offer Made By HLDCO123 Plc To The Shareholders Of DB1 Exceeds The Minimum Acceptance Threshold

MondoVisione

As of 5pm German time on Tuesday, 60.35% of shares had been counted as tendered.

QV Premium: DB1-LSE Merger Brief.

PLY: Crawling over the line after what ought to have been a frenzied panic, given multiple rule changes to make the mandate fit the goal, as opposed to the more normal aim of making the vote pass the threshold you yourself first set, the DB1 deal splutters on towards its showdown with regulators.

 

Euroclear-DTCC JV Eyes Asia After Signing Up Northern Trust (subscription)

Samuel Agini – Financial News

 

ASX Listing Rule Changes Pushed Back To December 19

Yolanda Redrup – AFR

Early stage startups hoping to go public on the ASX have been granted a reprieve from the tougher listing rules to be implemented later this year, with the exchange delaying the start date of the changes to December 19.

The changes, which could see young companies with a market value of under $20 million and less than $5 million in net tangible assets blocked from the ASX, had originally been slated to come into effect on September 1.

But the ASX has been inundated with feedback following a consultation period that ended in late June, forcing it to delay their introduction.

PLY: Hopefully the feedback notes just how anti-capitalist the ASX blob now is and suggests it try operating a service business to help the Australian economy grow.

 

SEC Recognizes The Athens SE As A “Designated Offshore Securities Market” Under U.S. Regulation

MondoVisione

PLY: Encouraging news for Athens. Now US investors can go bottom fishing so much more efficiently, albeit with the ‘falling knife’ proviso aforethought.

Private Markets

Saudi Market Regulator to Accelerate Plans Easing Foreign Investment Restrictions (subscription)

Ahmed al Omran & Margherita Stancati – Wall Street Journal

Rules to allow international investors to own larger stakes in listed companies could take place this year.

PLY: Good.

 

Qatar SE Changes Rules To Promote IPOs

Gulf News Journal

PLY: Also good.

 

NCDEX Raises Margin For Less Liquid Commodities

Business Standard

NCDEX has revised value at risk (VaR)-based initial margins for select commodities. VaR-based initial margins are part of the exchange’s risk management framework.

The exchange has also decided to have margin period of risk (MPOR) of two days as a measure of underlying liquidity. This means the exchange will cover margins required for two days and that will be based on liquidity.

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX and FTIL flat to small up. Jignesh Shah still in jail until at least July 30th.

No HC Relief To Attachment Of FTIL Bank Accounts By EOW

Dilip Kumar Jha – Business Standard

This, after the Bombay High Court today rejected interim relief to FTIL.

The Bombay High Court on Tuesday refused to intervene in the attachment process of FTIL’s assets including its bank accounts and FTIL Tower, the company’s headquarters. The court asked the company to file a separate petition seeking permission to use its bank account for meeting day-to-day operations. As of now, that is not permitted which has put employees’ salaries at risk.

FTIL Employees On Salaries

Dilip Kumar Jha – Business Standard

Amid fears of delay in salary disbursement, employees of FTIL presented a memorandum to the officials of the Economic Offences Wing of Mumbai police on Tuesday seeking continuation of salary disbursement by the company.

Jignesh Shah’s Bail Hearing Postponed to July 30

Varun Chirumamilla – Bloomberg Quint

QV Premium: NSEL Scandal Brief – Part 16.

Technology

Euronext Pursues Innovation Strategy with Tredzone

Euronext

Euronext signed a partnership agreement with Tredzone, a technology solution provider specialised in developing software tools for handling complex data with high volumes and guaranteed latency.

PLY: Interesting deal which strikes me as a potential bargain for Euronext gaining a 34% stake for 1.36 million Euros – a very low valuation even for an early stage vendor methinks. CEO and CoFounder of Tredzone is Nicolas Levy, who was once a senior figure at GL Trade and much else besides.

 

MOEX Completes First Stage Of Migration To New Data Centre

MondoVisione

 

CSRC Warns Against Use Of Unauthorised Apps To Trade Overseas Shares (subscription)

Xie Yu – SCMP

CSRC warned mainland Chinese investors to stay away from new internet platforms and mobile apps geared towards overseas equity trading, citing operating risks in the unauthorised platforms.

 

Blockchain Consortium To Open London Office

Finextra

Agentic formed in 2015 and is a membership-driven consortium with over 35 companies involved. London second European office after Paris.

Products

LSEG: UnaVista Offers LEI Allocation Service To Help Firms Meet Their Accreditation Requirements

MondoVisione

 

Tullett Prebon’s tpMESSENGER Service Selects CME Pivot Instant Messaging Platform To Support Open Communication

Tullett Prebon

Career Paths

BNP Paribas Investment Partners appointed Jean-Charles ‘JC’ Sambor as Deputy Head of Emerging Market Fixed Income.  He is based in London and reports to L. Bryan Carter, Head of Emerging Market Fixed Income.

 

Ghana SE (GSE) has appointed Kweku Bedu-Addo as Chairman, taking over from Dr Sam Mensah whose term ended at the AGM held on July 14, 2016.  

PLY: Plaudits to Sam Mensah as he stands down. Sam remains an indefatigable champion for Ghanaian investment.

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

CFTC Announces Fourth Whistleblower Award

CFTC

CFTC announced an award of approximately $50,000 to a whistleblower who voluntarily provided key original information that led to a successful CFTC enforcement action.

 

State Street Misled Custody Clients About Prices for Foreign Currency Exchange Trades

SEC

 

Alberta Securities Commission Advances New Capital-Raising Initiatives For Start-Up Businesses

MondoVisione

PLY: Strikes me as rather prescriptive but at least the regulators are trying to move in the right direction.

 

 

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