A whole new battle emerges for Jignesh Shah as a US vendor alleges FTIL has been copying its software. Mr Shah remains in jail on his latest stay, incidentally. Good results from CME, Colombia renews NASDAQ tech agreement, BGC and Marex in talks about acquiring ICAP energy desks.
Meanwhile in Bigworld, Hillary Clinton was crowned Presidential candidate last night. Demonstrating her clearly considerable credentials and experience to be Commander in Chief, there wasn’t even time to mention her extensive experience with the Clinton Foundation.
vs Q2 2015: total revenues $906m, up 10.5%, operating income $563m, up 13.8%, net income $320m, up 20%.
PLY: Good numbers with a lot of granular growth across the board at CME.
vs H1 2015: revenues Euro 168.2m (USD 186.7m), down 7.2%, net profit Euro 86m (USD 95.4m), down 6.1%.
PLY: As noted by Peter Lenardos of RBC: “BME posts a rare beat, with higher-than-anticipated revenue driving the P&L beat.”
vs H1 2015: revenues PLN 155.5m (USD 39.5m), down 6%, profit PLN 60.2m (USD 15.3m), down 8%.
PLY: The good news is, er, these results aren’t as bad as I feared given the quasi-endless internal changes at GPW which still leave the GPW apparently without a clear direction.
vs Q2 2015 (GAAP): revenues $652m, down 2.6%, net income $25.4m, up 91.3%.
vs Q2 2015 (GAAP): revenues $120.6m, down 14%, net loss of $5.2m, compared to net loss of $10.2m.
PLY: Disappointing numbers as ITG continues to reposition itself.
vs Q2 2015 (IFRS): revenues USD 2.76B, down 1%, operating profit USD 401m, up 16%.
Brokers BGC Partners and Marex Spectron are in advanced talks with Icap over buying two of their rival’s oil desks.
PLY: Obvious purchasers but given their existing strength, remind me, why did ICAP have to sell this in the first place?
Jonathan Gould – Reuters
“We expect that it will go in a phase II approach,” DB1 CFO Gregor Pottmeyer told analysts, referring to the more complex process regulators use when they are concerned a merger may restrict competition.
PLY: Obvious statement by Pottmeyer without going to the logical conclusion – the deal won’t pass. There are 194 days until DB1 ought to be in the antitrust turbulence zone.
William Turvill – CITY A.M.
ENX CEO Stephane Boujnah indicated that his company is monitoring the situation to see “whether some opportunities can come out” of the deal.
PLY: Boujnah mentioned the Dutch government is concerned about the Merger of Equal Desperation, adding to the governments of France, Belgium and Portugal.
QV Premium: DB1-LSE Merger Brief.
To give a detailed update on strategic plans at full-year results in february next year – CEO.
LSE-backed CurveGlobal has approved 11 market-makers to support the new interest rate futures trading venue which is set to go live on Sep 26.
Mayuko Tani – Nikkei
Jennifer Hughes – Financial Times
What both are really focusing on, however, is a battle to become Asia’s go-to centre for cross-border dealing in as many other asset classes and market segments as they can lay claim to.
PLY: It strikes me SGX is in some dire need of better organisation – the marketplace has lost face and the market is losing faith. That’s not how it once was when Singapore was a dynamic market at the centre of the Asian trading day.
John Detrixhe – Bloomberg
Some fx platforms have changed their policies, giving priority to orders that are less susceptible to exploitation, the BOE said in a report on Thursday. It comes a year after Britain’s central bank said last look was vulnerable to abuse. London is the global center for currency trading, a $5.3 trillion market.
PLY: Change is still coming too slowly. In other news, some regulators such as Malta have been seemingly further cracking down on retail forex entities which is a welcome sign for a better market.
CBOE BoD declared an increased dividend of $0.25 for Q3 2016, payable on September 16, 2016, record date September 2, 2016.
BME BoD agreed to distribute a gross €0.40 dividend on September 16, its first interim dividend against 2016 earnings.
Special Section: FTI, NSEL, India at the Crossroads
PLY: MCX slightly off, FTIL down 1%.
Jayshree P. Upadhyay – Livemint
US-based firm Modulus Financial’s plea in Bombay high court claims similarities between its product and FTIL’s ODIN.
Nasdaq and Bolsa de Valores de Colombia (BVC) announced the extension of their current trading technology contract for an additional seven years.
The upgraded Nasdaq matching engine, X-stream INET Trading, further enhances the Colombian capital market by supporting new asset classes and providing more efficient MILA connectivity, which integrates the stock exchange markets of Chile, Colombia, México and Perú.
PLY: An encouraging renewal for NASDAQ.
John Detrixhe & Will Hadfield – Bloomberg
Four firms are looking to build 300-meter radio masts in Kent.
Jeff Cox – CNBC
A blue-ribbon panel is proposing a bevy of reforms that it hopes will restore confidence in the stock market. The Committee on Capital Markets Regulation released a laundry list Thursday of changes it believes will make the market function better.
Tina Wadhwa – Business Insider
National Exchange of India (NSE) is having its own “Flash Boys” moment.
With 40% of all stock trading volume on the exchange now coming from high frequency and algorithmic transactions, up from low single digits five years ago, rumors abound of collusion and high frequency traders gaining preferential access at the NSE.
Mike Bird – Wall Street Journal
The city’s dominant position in derivatives may be difficult to undo in the event of Brexit.
PLY: The Wall Street Journal is gradually catching up with EUropean issues – still much work to be done but at least they are pointed in the right direction.
Rosemary Barnes – Finance Magnates
ICE Benchmark Administration (IBA) appointed Dame DeAnne Julius, a founding member of the Monetary Policy Committee of the Bank of England, as a Director of IBA. The appointment is effective immediately. Dame DeAnne’s appointment has been approved by the FCA.
PLY: The ICE Benchmark Administration board is a remarkably strong one incidentally, including Michel Prada, who combines a formidable experience and nous for markets, having headed the French AMF.
29.07 – CBOE Q2 2016 Results
02.08 – SEC Equity Market Structure Advisory Committee – agenda
03.08 – ICE Q2 Results
All forthcoming exchange / investment related events are now listed in our Events page.
PLY: PD remains horribly prescriptive and is part of Europe’s funding problem. Deregulation is urgently needed.
PLY: Sensible request, UK FCA is already very expensive for smaller venues.