July 28 2015

elb2PLY: Did somebody deliver a lorry load of Red Bull to DB1? After the semi-soporific era of – whatever his name was – Carsten Kengeter is so far defying his New York tabloid budget conscious stereotype by clearly hitting the ‘at market’ button on his OMS… Red blooded wheeler dealing a forethought, albeit at some stress to the DB1 balance sheet…

Frantic day, lots of news, no space for more pith up top, happy scrolling:

Public Markets

DB1: Successful Conclusion Of Negotiations Regarding The Full Acquisition Of STOXX AG & Indexium AG From SIX Group

MondoVisione

In June EI reported that DB1 was in talks to acquire the shares it didn’t already own in two JV securities-indexing companies, STOXX AG and Indexium AG where DB1 owned 50.1% & 49.9% respectively, having offered  CHF650 million ($611 million) for the stakes. EI reported on Monday that DB1 entered into a definitive agreement re the full acquisition of 360T.

Read our Premium Exchange Deals Brief and Index Companies Deals Brief

PLY: No big surprise as this had been trailed. Albeit that the new management now looks as hyperactive as its predecessor looked well…seriously, can you even recall his name? It took me a while… (clue he was the author of a book I initially read as “Equity Markets Inaction” – a fitting career epitaph perhaps). The new broom at DB1 is sweeping furiously, even if this deal flow was all set for his approval. There even appears to be a nascent new strategy too:

DB1 Launches Broad-Based Growth Programme & Publishes Q2 Results

DB1

DB1 Plans Job Cuts, Other Cost-Cutting Measures (subscription)

Ulrike Dauer – Wall Street Journal

Net revenue €583.1 mln, up 19% compared to Q2/2014: € 491.2 million.

DB1 launches Group-wide growth programme “Accelerate”. Having conducted an in-depth review of its strategy, organisational structures and business processes, DB1 launched “Accelerate” with the objective of becoming agile, ambitious and effective to participate in the global competition of financial market infrastructure providers with a strong customer focus.

PLY: Good to see DB1 making a clear first step: realising they are not “agile, ambitious & effective.” Perfect summary. What ought to be the cats’ whiskers of markets in many respects has become more like curdling cream. Ironically DB1 (well EUREX anyway) used to skewer the legacy exchanges then DB1 itself slid into the legacy mould. Interesting times. Progress will be welcome, DB1 has slept too long.

Dealmaking Deutsche Boerse CEO Spends $1.5 Billion In Spree

John Detrixhe – Bloomberg

Read our Premium post Dear Carsten – An Open Letter to the New DB1 CEO and older posts Deutsche Boerse’s Asian Experiment and The Direction of Deutsche Boerse.

PLY: Well signed off and bid up a bit at least…

McGraw Hill Financial To Buy SNL Financial For $2.23 Bln

Reuters

After rumours yesterday, McGraw Hill Financial said it would buy data company SNL Financial for about $2.23 bln.

PLY: One of those little known moderate behemoths of information, not to be confused with the satire “Saturday Night Live” which uses the same abbreviation. Crunchy acquisition for McGraw Hill.

JPX Consolidated Financial Results For The Three Months Ended June 30, 2015 – Based On IFRS, Unaudited

MondoVisione

JPX: Overview Of Earnings For 1Q FY2015

MondoVisione

JPX: Notice Regarding Stock Split As well As Accompanying Partial Amendment To The Articles Of Incorporation & Dividend Forecast Revision

MondoVisione

JPX to split stock and partially amend Articles of Incorporation. Revising dividend forecast in relation to said stock split.

Three months ended June 30, 2015 vs Three months ended June 30, 2014

Operating revenue 27,802 mln yen ($224 mln), up 12%

Operating income 16,737 mln yen ($135 mln), up 37.7%

Net income  10,902 mln yen ($88 mln), up 36%

Basic EPS 39.24 yen ($0.31)

DFM Q2 Net Profit Drops 48%

Reuters

vs Q2 2014

Net profit 132.4 mln dirhams ($36.05 mln) in Q2 2015, down 48% from 252.5 mln dirhams

Revenue 178.1 mln dirhams ($48 mln) down 40% from 296.5 mln

H1 net profit fell 57% to 200 mln dirhams (&54 mln).

NY AG Preps Case Against Credit Suisse Dark Pool

Charlie Gasparino – FOX Business

NY AG Eric Schneiderman’s office is preparing a civil case against Credit Suisse, the operator of the Crossfinder dark pool, that could be announced in the coming weeks. The case would mark the second major civil action filed by the AG’s office since regulators launched their probe into deceptive practices in these markets last year.

Read our Premium NY AG – Barclays Dark Pool Brief and A Taste Of HFT Scandal Brief – Part 6.

PLY: An interesting development in the battle against markets from the NY AG’s office…

ASX Plans Asian Offices In Derivatives Push (subscription)

Luke Jeffs – FOW

Chinese Stock Market Should Find Its Own Level (subscription)

Financial Times

A state-mandated share price boom should be no part of China’s plan.

LME Clear Launches New Renminbi Initiative

MondoVisione

China’s Yuan Pushes Deeper Into Global Financial System (subscription)

Chiara Albanese – Wall Street Journal

China’s domestic stock market may be in turmoil but the country’s currency, known as the yuan or renminbi, is making a seemingly relentless push deeper into the global financial system.

The latest step: LME, the world’s largest venue for trading metals where $15 trillion of metals was traded last year, is set to accept yuan as collateral for banks and brokers that trade on its platform. The Chinese currency joins the USD, the EUR, the GBP and the yen, which are all currently permissible as collateral on LME’s platform.

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

PLY: The clearly considered LME strategy of opting for real-time clearing (powered by Cinnober technology) at the launch of their clearing house is a huge boon for risk management here…

Private Markets

$15 Million Sought For Planned Wilmington Stock Exchange

Xerxes Wilson –  The News Journal

A new Delaware company led by prominent figures in national financial and political circles, including a former top aide to Vice President Joe Biden, is seeking a $15 million bond from New Castle County to create a stock exchange headquartered in Wilmington.

County Council on Tuesday is scheduled to review a proposal from Delaware Board of Trade Holdings Inc., which was incorporated in June and is led by John F. Wallace, former CEO of the Philadelphia Stock Exchange. Dick Grasso, former chairman and CEO of the New York Stock Exchange, and Joseph J. Grano, former chairman and CEO of UBS Capital Markets, are listed as advisers for the company.

PLY: SME market under JOBS act to run parallel to a domestic/international equity MTF. It is interesting that the bourse is seeking what I understand to be public funds or at least public assistance to raise funds… Welcome to American capitalism in the Obama era?

Dividend News

HKEx: Forfeiture Of Unclaimed Interim Dividend For 2009

MondoVisione

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX up 1%, FTIL flat.

New Case Against Jignesh Shah, NSEL

N Sundaresha Subramanian  – Business Standard

On a court order, the police here have registered a case against NSEL, director Jignesh Shah and other top executives on various charges under the Indian Penal Code and the Information Technology Act, on a complaint by Delhi-based broker Kunal Khaneja.

PLY: We could create a prediction market on when justice might be seen in this case, albeit margining may be tricky for a market which goes from next week to infinity with a lot of trade at the longer end of the curve.

‘SEBI’s Power To Disgorge, A Major Boon In NSEL Case’

Suresh P Iyengar

Read our Premium NSEL Scandal Brief – Part 16.

PLY: I am unconvinced. If SEBI wanted to do something they could have cried force majeure and demanded some powers methinks – after all the argument originally was that FMC was not empowered to fully regulate NSEL either.

Technology

Technical Disturbances – NASDAQ OMX Credit SEK Indexes

NASDAQ OMX

Nasdaq reports issues with the calculation of the NASDAQ OMX Credit SEK indexes and have therefore not been able to produce index closing values or evening weight reports for Monday July 27, 2015 or morning weight reports for Tuesday July 28, 2015.

Monetary Authority Of Singapore Sets Up New FinTech & Innovation Group

MondoVisione

The Monetary Authority of Singapore (MAS) has formed a new FinTech & Innovation Group (FTIG) within its organisation structure with effect from 1 August 2015.

Products

EEX: Options Trading For Four Additional Power Markets To Be Launched On 27 August – New Options For France, Italy, Spain & Nordic Market

MondoVisione

London, North American Forex Volume Shrank In Six Months To April

Anirban Nag & Richard Leong – Reuters

Read our Premium FX – CHF Crisis – Brief.

Career Paths

As announced by HKEx on 17 June 2015, the BoD of HKEx approved the renewal of the employment contract of Mr Li Xiaojia, Charles as the CEO of HKEx for a further 3-year term from 16 October 2015 to 15 October 2018, inclusive.

PLY: Charles Li has ridden the ‘through train’ to redemption. Those downright edgy CNBC interviews have faded from memory where Mr Li was on the rocks just a year ago as LME problems have been broadly dissipated and the direct equity linkage has proven the huge success I always thought it could be – albeit none of the media did as they pursued the equi-erroneous end of Li narrative. Admittedly he was in peril but he has saved himself.

R.J. O’Brien & Associates (RJO) hired Tony Dalton as Head of the FX Division.

AFME has appointed Tanguy van de Werve as Head of its Brussels office.

MAS has appointed Sopnendu Mohanty as its Chief FinTech Officer to head its new FinTech & Innovation Group (FTIG). Sopnendu joins MAS from Citibank, where he was Global Head of Consumer Innovation Lab Networks & Programmes. He will report to Jacqueline Loh, Deputy MD (Monetary Policy & Investment/ Development & International).

FTIG will comprise:

Payments & Technology Solutions Office, led by Bernard Wee.

Technology Infrastructure Office, led by Tan Yeow Seng.

Technology Innovation Lab, led by Roy Teo.

PLY: Clear forward thinking aforethought in the MAS structure as Singapore Inc looks to the future of finance.

Financial Calendar

This week

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 – agenda here

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.

Share Notes

Mandatory Notification Of Trades – Oslo Børs VPS Holding Asa

MondoVisione

Oslo Børs VPS Holding monthly share savings plan for employees of subsidiaries, has sold a total of 1549 shares. New holding is 7349 shares. Employees paid a share price of NOK 91,14 per share, but were allowed a discount of 20% on purchases up to NOK 625.

Other stories

Bursa Malaysia Seeks Public Feedback On Proposal To Advance Sustainability For Malaysian Capital Market

MondoVisione

High-Speed Traders Voice Alarm Over Bonus Cap Rules (subscription)

Financial News

Trade bodies claim the move to limit variable pay exposes HFT firms to fatal risk.

 

 

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