July 8 2015

elb2

Apparently after five years of indolence and 20 years of denial about the dismal engineering dynamics, there are now five days to save the Euro. I wrote a column the other day on the Big Fat Greek Divorce.

Today in Exchange Invest Daily, Corzine settles final MF Global investor suit. ICAP makes a further investment in ArcadiaSoft, as banks join the fascinating platform to seek solutions to margin disputes and many more useful, crunchy nuggets besides, happy scrolling:

Public Markets

ICAP – Further Investment In ArcadiaSoft

MondoVisione

ICAP has made a further investment in AcadiaSoft, Inc, a provider of electronic margining for OTC derivatives. The investment is alongside DTCC, Euroclear and four additional banks, for a total of 13 bank investors.

Simultaneously, ICAP’s TriOptima has entered into commercial agreements with AcadiaSoft and DTCC-Euroclear Global Collateral to link AcadiaSoft’s MarginSphere 2 messaging service with TriOptima’s triResolve OTC trade reconciliation service and the Margin Transit Utility operated by the DTCC-Euroclear joint venture, creating an open, seamless, end-to-end collateral processing hub for non-cleared derivatives.

Read our Premium Exchange Deals Brief.

Leading Global Banks, Service Providers & Market Infrastructures Create New Hub for End-to-End Margin Processing

ICAP

Thirteen major global banks, ICAP and market infrastructures DTCC and Euroclear have joined forces with AcadiaSoft to solve a vexing industry problem involving margin flows.

Goal is to facilitate compliance with new margin regulations for non-cleared derivatives effective in 2016.

Aim’s Survival Is In The Hands Of The Regulators (subscription)

Financial Times

PLY: A useful letter which again underlines how SME listing mechanisms are being hampered by regulation despite the boffins of Brussels extolling the virtues of Capital Markets Union. Meanwhile crowdfunding is encroaching on the more heavily regulated listing venues. There is a market for advisors/nomads but exchanges too ought to be permitted better direct access to the clients for primary listing to compete with the crowdfunding movement.

EuroCCP Upgrades Capacity To Deal With Wild Market Swings (subscription)

Philip Stafford – Financial Times

EuroCCP has upgraded the capacity of its systems to cope with the large swings in market liquidity and the forthcoming addition of business from LSE.

UK Proposes Tighter Rules For Financial Market Traders

Huw Jones – Reuters

PLY: So can we therefore presume therefore that the original analogue Registered Reps concept has failed in the digital era?

Five Years After Dodd-Frank, Here Come The Reviews

Lucy Ren – MarketWatch

PLY: Don’t get me started…

China’s Stocks Plunge As State Intervention Fails To Stop Rout

Bloomberg

China’s CSRC Encourages Shareholders, Executives To Buy Their Firms’ Shares

Reuters

China Securities Finance Corp Lends 260 Bln Yuan ($42 Bln) To Brokerages

Reuters

ASX Chief Elmer Funke Kupper Needs To Spruik Shares (subscription)

John Durie – The Australian

ASX boss Elmer Funke Kupper needs to get on his soapbox to sell more shares as the latest figures show an alarming drop in share ownership in Australia.

PLY: A disappointing indictment of the decade and more of strategic drift at ASX away from world leader to risk averse monopolistic also ran. Yes privatisations probably helped the high water mark a decade ago but ever since the ASX has continually failed to pick up the baton to move the nation forward. Moreover the hyper-risk averse attitude bestowed upon regulators has materially harmed Australian investors and markets in the long term.

Read our Premium ASX Monopoly – Brief – Part 3.

Asean Link: A Stronger Regional Capital Market

Inquirer

This year is a turning point for the Association of Southeast Asian Nations (Asean) as member-countries form a unified economy, the Asean Economic Community (AEC).

Read our Premium ASEAN Exchanges Project Brief.

Institutional Investors, Managers Eye New Nairobi SE Futures Market Segment

Jackson Okoth – Standard Media

Private Markets

DME & ADX Sign MoU To Drive Development Of UAE & Regional Capital Markets

Zawya

Dubai Mercantile Exchange (DME) and Abu Dhabi Securities Exchange (ADX) signed an MoU to drive growth and development…

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX down 3%, FTIL down 2% on some news:

Bombay HC Reserves Order On MPID Act Applicability

Business Standard

MPID Act says ‘deposit’ accepted by a financial establishment should be retained, processed and returned by it with or without interest on maturity.

Ministry Of Corporate Affairs Calls NSEL & FTIL To Hear Merger Objections

Rajat Arora – The Economic Times

The corporate affairs ministry has called NSEL and FTIL to hear any objections to their proposed merger ahead of the Bombay High Court’s deadline to the government for issuing the final order.

Read our Premium NSEL-FTIL Merger Brief.

Products

CFTC Stays ICE Plan To Raise Position Limits In Power Contracts (subscription)

Gregory Meyer – Financial Times

CFTC Requests Public Comment on a Certification Filing by ICE Futures US to Amend the Position Limits on NYISO Zone G Futures Contracts

CFTC

MCX Set To Launch An International Gold Contract Denominated In Rupees

Ram Sahgal – The Economic Times

Unlike the existing gold contract, which derives its value from the landed price at Ahmedabad, adjusted for currency and including 10% import duty, the new contract is likely to be the product of Comex-based international price multiplied by rupee rate, and exclude import duty and other local charges.

FMC Reduces Trading Time Of Evening Session By 2 hrs

Business Standard

FMC has reduced the trading time of the evening session in agricultural commodities by two hours and de-listed four contracts from the evening session owing to the lack of liquidity.

PLY: Not sure why the regulator dictates all here but it is India.

DGCX Plans New Contracts In H2

Emirates 247

London Loses Golden Touch As China’s Build-Up Of Bullion Continues Apace

Ben Kilbey – Platts

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

Career Paths

Bernard Dan (Bernie) has stood down from Sun Trading as CEO and board member, according to Crain’s Chicago Business, Global Head of Trading, Kevin Cuttica is the new CEO.

World Federation of Exchanges (WFE) appointed Gavin Hill as Head of Regulatory Affairs. Hill starts work at WFE on September 21.

DTCC elected Jim Turley, Co-Head of Group Technology and Operations (GTO) for Deutsche Bank, to its BoD.

FCA appointed Jonathan Davidson as their new Director of Supervision – Retail and Authorisations.

FN reports that Instinet hired Citi’s Rodriguez for Europe electronic role.

Barclays PLC and Barclays Bank PLC (Barclays) announce the departure of Antony Jenkins as CEO and the appointment of John McFarlane as Executive Chairman pending the appointment of a new CEO.

Financial Calendar

Today

CME Executive Chairman & President Terry Duffy will appear before the U.S. House Committee on Agriculture to discuss impacts of lifting the oil export ban.

New announcement:

BGC Partners’ and GFI Group’s Q2 2015 Financial Results – Wednesday, July 29, 2015

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

Share Notes

In connection with a monthly share savings plan for employees of subsidiaries, Oslo Børs VPS Holding has allotted 1845 shares to employees. New holding is 8898 shares.

In connection with the offer, the following number of shares have been allotted to primary insiders (new holding shown in brackets):

Bente A. Landsnes, 26 (33160)

Øivind Amundsen, 26 (3650)

Thomas Borchgrevink, 26 (3274)

Kjetil Nysæther, 26 (2855)

Øyvind Skar, 26 (5189)

Tom Kristoffersen, 21 (869)

John-Arne Haugerud, 26 (12990 including 2500 shares held by close associate)

Harald Næss, 26 (2612)

Geir Heggem, 26 (3462)

Sveinung Dyrdal, 26 (6450)

Anne Kristin Hildrum, 26 (3823)

Sissel Bakker, 11 (234)

Morten Nordby, 26 (682)

Christian Falkenberg Kjøde, 26 (4633)

Ingvild Resaland, 26 (515)

Analyst Notes

LSE “Overweight” Rating Reconfirmed At Barclays Capital –  GBX 2780.00 Target Price

Barclays Decreased Their Price Objective On ICAP To GBX 600 –  “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.

Other stories

Banks Promise No Lehman Moment By Relying On Unfinished Derivative Rule Change

Forbes

Corzine, Others Settle MF Global Lawsuit For $64.5 Million

Jonathan Stempel – Reuters

PLY: Ends the investor lawsuits but CFTC is still seeking fines and a ban from the industry for former Governor Corzine.

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