June 03 2016

elb2Hesse flexes muscles with info requests – various bankers who worked on the first deal in 2005 are still working on it…  Exciting Chinese deal for ICAP, MSEI fighting on, and much more.

Don’t forget, the FESE Convention – Malta, 15/16th June, interesting event, terrific venue of the Hilton conference centre. Also, ICDA have their upcoming CyberRisk conference in London, July 20th: Secure a place at GBP 295 with the Exchange Invest code YOUNG295.

Have a great weekend.

Public Markets

German Regulator Asks For More Information On DB1-LSE Tie-Up

William Turvill – CITY A.M.

The German politician responsible for approving DB1’s merger with the LSE has said he requires “further information” on the deal.

Tarek Al-Wazir, economy minister for the State of Hesse, requires “further information” on the Merger of Equal Desperation. He made the statement after the exchange houses published a (PLY: spectacularly underwhelming) shareholder prospectus for the deal yesterday.

PLY: Bear in mind that CarCrash said all the regulatory talks were going well and as he is the boss of DB1 – well readers will believe what they want and your independence of thought is welcomed.

Former Morgan Stanley Deal Makers Reunite on Exchange Merger

Anita Raghavan – NY Times

The main investment bankers involved in the merger between DB1 and LSE worked at one of Wall Street’s biggest companies, Morgan Stanley, the last time the two exchanges flirted with the idea of getting married.

Perella Weinberg Partners, one of whose founders is Joseph R. Perella, a former head of investment banking at Morgan Stanley, is leading a clutch of banks representing DB1.

The main banker for LSE is Simon Robey, who was co-chairman of global mergers and acquisitions at Morgan Stanley now runs his own firm, Robey Warshaw.

QV Premium: DB1-LSE Merger Brief.

PLY: Given the experience of multiple bankers involved, you would think they could have written a better deal document than the one published yesterday? Besides, how can the NYT so perfectly identify the “main” bankers – I mean it’s a cast of thousands…on the LSE side, remarkably they seem to be almost invariably OTCDerivNet shareholders – what an uncanny situation? In the main the bankers are sharing some 307 million Euros in fees. Yet the evidence of yesterday’s wishy washy deal document is they would have been better off spending a lower sum on JK Rowling to deliver a more cohesive understanding of what benefits there are to this brainless bulking of two entities which need internal efficiency / integration surgery aforethought, not a semi-endless, fruitless quest to avenge antitrust for making correct decisions previously.

 

Nasdaq Announces Proposed Senior Notes Offering

Nasdaq Prices $500,000,000 Senior Notes Offering

Nasdaq

Nasdaq priced a public offering of $500,000,000 aggregate principal amount of USD-denominated 3.850% senior notes due 2026.  Net proceeds, together with cash on hand and/or borrowings under the Company’s senior credit facility, expected to fund the cash consideration payable ISE acquisition.

 

HKEX Set To Introduce Volatility Controls On August 22

Reuters

Presentation by HKEX Head of Markets Roger Lee at a Media Workshop on Closing Auction Session & Volatility Control Mechanism

HKEX

HKEX: New Market Circuit Breaker Designed On ‘Light-Touch’ Principle (subscription)

Laure He – SCMP

 

CFTC to Reopen Comment Period for Specific Elements of Regulation Automated Trading

CFTC

 

 

Tokyo Bourse, Government Butt Heads Over HFT

Nikkei

A large rift has developed between Japan’s Financial Services Agency and the Tokyo Stock Exchange over HFT as the government looks to toughen up rules governing the practice.

Private Markets

MSEI Rolls Out Revival Strategy To Stay Afloat
Business Standard

The Metropolitan Stock Exchange of India (MSEI), formerly MCX Stock Exchange (MCX-SX), is said to be reducing its cost and losses, getting companies from regional exchanges as part of its turnaround strategy, to stay afloat in the highly competitive segment. MSEI, struggling due to dwindling volumes and inadequate reserves, has reduced its annual losses by 33% in the last financial year.
MSEI has listed over 130 companies and is in the process getting another 40 on its platform.

 

CFTC Orders Bitcoin Exchange Bitfinex to Pay $75,000 for Offering Illegal Off-Exchange Financed Retail Commodity Transactions & Failing to Register as a FCM

CFTC

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX flat while FTIL jumps 5%…not yet clear why (as is so often the case with FTIL).

Sebi Proposes New Rules For Warehouse Service Providers

Anirudh Laskar – Livemint

Move aimed at increasing transparency in commodity market transactions to avoid frauds like NSEL.

Technology

ICAP Lands Deal for Mainland China’s Yuan-Trading Platform

John Detrixhe – Bloomberg

ICAP will supply (press release) fixed-income and currency market technology to China Foreign Exchange Trade System (CFETS using ICAP’s EBS BrokerTec systems and worth $65 million over three years. ICAP will open an office and a development center in Shanghai.

 

Millennium Exchange Release 9.1 Oslo Børs – Functional Description, Technical Specifications & Invitation To Information Meetings

MondoVisione

 

BMV Group Selects Next Generation FIX Engine, Catalys By Itiviti

MondoVisione

Bolsa Mexicana de Valores (BMV Group) has chosen the next generation FIX Engine, Catalys by Itiviti, to support their transactional needs.

PLY: Interesting choice even if Itiviti remains a brand name as ghastly as 63 Moons.

 

NYSE-ARCA Exchange Time Experiences Excessive Latency In May

Garrett Cook – Benzinga

Exchange time-syncing is something the SEC has admitted they’re unable to police due to the inherent issues involved in technology and the dynamics of the physical world (aka Great Circle Path). On Thursday morning, the one-man market monitor — Eric Hunsader of Nanex — displayed yet again how he can do the SEC’s job in real-time. Perhaps it’s time for the SEC to dump that MIDAS platform they are paying TradeWorx for and get a subscription to Nanex’s NxCore (pronounced “N-Core”).

Hunsader tweeted: “Starting May 16, 2016, the NY-ARCA clock shifted forward in time by ~1500 microseconds and has remained that way since.”

PLY: As if anybody needed proof that the private sector can do things better than government – well this is hardly a fair example given that regulatory agencies are being strangled of resources in keeping with their expanded remits. That said SEC really ought to consider a subscription to NANEX NxCore.

 

ESMA Assesses Usefulness Of Distributed Ledger Technologies

MondoVisione

EU Watchdog To Take Deeper Look At Blockchain

Reuters

PLY: It is to be sincerely hoped ESMA can avoid the disastrous conservatism of the precautionary principle which blights EU innovation in other areas.

Products

EEX & Powernext Confirm Launch Date Of Additional Trading Venues In Response To MiFID II

MondoVisione

 

EEX To Launch Non-MTF Power Futures

MondoVisione

 

Thomson Reuters Enables Financial Services Industry To Manage Big Data Challenges With Intelligent Tagging Offering

MondoVisione

Indexes

ICAP Delays Discontinuation Of U.S. Rate Benchmark Until September

Reuters

The Risk Management Association and SIFMA said on Thursday ICAP agreed to their extension request.

The interbroker dealer will continue to publish its index on the federal funds rate through Sept. 30, rather than ceasing its publication on July 27, the groups said.

Career Paths

Bursa Malaysia appointed of Mr. William Francis Herder as the Independent Director to the BoD of its subsidiaries, Bursa Malaysia Derivatives and its clearing house, Bursa Malaysia Derivatives Clearing (collectively referred to as Bursa Malaysia Derivatives Group), effective 2 June 2016. Bill Herder is President of FIA Asia.

The BoD of these subsidiaries as at 2 June 2016 consist of three Nominee Directors of Bursa Malaysia, one Nominee Director of CME which owns 25% shareholding in Bursa Malaysia Derivatives Group and one independent Director. They are as follows:

Datuk Seri Tajuddin bin Atan – CEO & Executive Director of Bursa Malaysia;

Dato’ Zuraidah binti Atan – NED & Public Interest Director of Bursa Malaysia;

Datuk Chay Wai Leong – Independent NED of Bursa Malaysia;

Mr. Bryan Thomas Durkin – Director of CME; and

Mr. Bill Herder – Independent Director with experience in derivatives industry

MOEX Supervisory Board named new members to its six committees.

Four of the Board”s six committees are chaired by independent directors:

Strategy Planning Committee, chaired by Rainer Riess, independent director;

Audit Committee, chaired by Duncan Paterson, independent director;

Nomination & Remuneration Committee, chaired by Rainer Riess, independent director;

Budget Committee, chaired by Andrey Golikov;

Technical Policy Committee, chaired by Anatoly Karachinsky, independent director;

Risk Management Committee, chaired by Yuriy Denisov.

PLY: Delighted to see Rainer Riess chairing a pair of vital committees.

SEC announced that Christopher R. Hetner has been named Senior Advisor to the Chairman for Cybersecurity Policy.  Mr. Hetner will serve as a senior advisor to Chairman Mary Jo White on all cybersecurity policy matters.

THEAM, the BNP Paribas Investment Partners subsidiary specialising in capital-protected, indexed and model-driven management, appointed of Isabelle Bourcier as Head of ETF and indexed fund activities.

Finance Magnates reports that Markit added Samantha MacRae Foerster as its newest senior sales specialist and director.

Finextra reports that Bart Chilton, former Commissioner of the CFTC, has joined the NexChange advisory board as Senior Advisor.

FIA announced that David Martin of J.P. Morgan has been appointed Chairman of the Asia Regional Advisory Board for a two year term. He replaced Paul Davies, who stepped down after retiring from Goldman Sachs.

Financial Calendar

03.06 – Record date CBOE $0.23 dividend

07-08.06 – FIA IDX

New! 10.06 – CFTC Division of Market Oversight – public roundtable meeting, to discuss certain elements of the Commission’s notice of proposed rulemaking (NPRM) regarding Regulation Automated Trading.

22.06 – WSE AGM – amended agenda

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

Crowdfunding

HK As An Evolving International Financial Centre – The significance Of Regulation – HKSI Luncheon – Speech By Mr Ashley Alder, CEO, HK’s SFC, 2 June 2016
MondoVisione

 

Other stories

US Department Of Justice: Two Former Deutsche Bank Employees Indicted On Fraud Charges In Connection With Long-Running Manipulation Of Libor

MondoVisione

 

 

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