June 11 2013

elb2 Well everything from an ASX cash call, through 2 new exchanges to regulatory shufflings and salary issues alongside a trillion dollar benchmark… To think that some people didn’t think there would be enough daily news for investors in financial markets infrastructure!

Interesting reading:

Public Markets

ASX Raising A$553 Million to Fund Clearing, Growth Projects

Businessweek

ASX Ltd. (ASX), the operator of Australia’s main stock exchange, is raising A$553 million ($523 million) to expand its clearing facility and fund future projects.

ASX plans to sell fully underwritten new shares at A$30 each to retail and institutional investors and will use A$200 million to contribute additional equity to ASX Clear (Futures), the exchange’s clearing facility and CCP for ASX listed securities listed. ASX Clearing Corp.’s A$250 million of unsecured debt will be replaced with equity capital and the remaining funds used for future projects.

More Derivatives Centrally Cleared as Dodd-Frank Takes Effect (subscription)

Wall Street Journal

PLY: A useful discussion of the D-F process and attempts to futurise swaps by exchanges to help bourses gain an advantage over OTC platforms.

Post-Facebook, Nasdaq Steps Up Listings Push (subscription)

Wall Street Journal (blog)

Nasdaq OMX is updating its profile as the exchange group works to move past last year’s Facebook IPO debacle.

The electronic exchange group has shuffled senior officials overseeing its listings business and broadened its array of corporate services to add firepower in its perpetual battle with rival NYSE Euronext to land marquee listings.

EU States Face Showdown Over Markets Overhaul

Reuters

EU officials are pressing Britain, Germany and France to agree a compromise over trading rules intended to plug gaps exposed by the credit crunch in the $630 trillion market for derivatives and other specialized products…

Intercontinental Exchange: Buyside Clearing Surpasses $1Trillion In CDS Gross Notional

IntercontinentalExchange (NYSE: ICE), a leading operator of global markets and clearing houses, today announced that as of June 6 it has cleared more than $1 trillion in credit default swap (CDS) gross notional value by buy-side participants since client clearing was launched in December 2009.

PLY: We’re not in the habit of announcing volume numbers generally but here is a nice round number which even in these days sounds like quite a lot of cleared Principal.

Private Markets

Launch of Innovative New Property Investment Exchange

Launching this week: Estates Investment Exchange (EIE) enables property owners and developers to find new sources of funding rather than relying on the traditional model of bank lending.

PLY: I met the founder/CEO recently and it is an interesting vision, the proof of the pudding will clearly be in how it actually rolls out…

OTC Global Holdings To Create Commodities Exchange

Commodities Now

OTC Global Holdings LP (OTCGH), a leading independent interdealer broker in commodities markets, formally announced today that its subsidiary, EOX Exchange LLC, filed its application with the U.S. Commodity Futures Trading Commission (CFTC) for designation as a contract market (DCM).

A wide range of derivative products will be offered on the EOX Exchange, including futures and options in natural gas, crude oil and refined products, natural gas liquids, power and agricultural products leveraging OTCGH’s proprietary EOXLive platform.

Calcutta Stock Exchange Platform For Regional Bourses

The Statesman

The Calcutta Stock Exchange (CSE), the only regional exchange retaining a trading platform of its own is ready set to sign an agreement with several regional stock exchanges to enable them to trade on the CSE trading platform.

What’s Behind The Remarkable Growth Of DGCX?

FOW magazine

2012 was a year that most derivatives exchanges would rather forget. But for the Dubai Gold and Commodities Exchange it was the best year ever as volumes grew 138%.

Career Paths

ISE: Three New Board Members, Re-Elections

The Options Insider

New members elected: Patrick Hickey of Optiver US, Elizabeth Martin of Goldman Sachs & Co., Slade Winchester of Citigroup.

NYSE Euronext Appoints Eric Forest As Chairman And CEO Of EnterNext

PLY: Clearly what is required as well as financing SMEs (or small caps as is the case of this mistitled bourse) is good corporate governance. Congratulations then to M. Forest for taking on both Chairman and CEO roles in what I thought was widely regarded as poor corporate governance practice?

Former Warsaw Bourse Head In Advanced Talks To Take Helm Of Bucharest Stock Exchange (subscription)

Ziarul Financiar

Ludwik Sobolewski, former president and chief executive of the Warsaw Stock Exchange, is in advanced talks with the management of the Bucharest Stock Exchange (BVB.RO) to take over as executive manager.

PLY: This is frankly a weird one, why would Ludwik want to potentially damage the good reputation he had on developing GPW unless he thinks he can score one over the old GPW? It is a risky strategy, Sobolewski is a manager not a builder of businesses from what I have seen. Likewise, BvB needs somebody with huge reforming zeal to turn their market into, well, a market.

Indexes

Nasdaq OMX Introduces New Indexes For Icelandic Bond Market

NASDAQ OMX (NASDAQ:NDAQ) today introduces six new indexes in the Icelandic bond market based on Icelandic nominal and inflation-linked benchmark bonds listed and traded on NASDAQ OMX Iceland.

PLY: With one index per 65,000 inhabitants this is a good example of how indices are moving from macro to micro level.

Financial calendar

Nasdaq OMX Group (NASD: NDAQ) Will Trade Ex-Dividend
$0.13, payable on 6/28/13, or roughly 0.40% of recent stock price

Other stories

European Regulator Threatens Derivatives Reporting Delay (subscription)

Financial News

““All the SDR applications have been sent back as Esma can’t cope with the paperwork. Esma has a big need for personnel – it is struggling with resources and time and is using all possible means for pushing back.”

PLY: Here’s the rub in this big regulatory framework being created by the misguided Obama ‘administration’* and their EU counterparts.

Misguided anti-market MEPs want to regulate everything including the weather but have missed out the fact that the government has no money to do it.

Hence, we have this ludicrous situation where the good folk of ESMA apparently cannot cope. Not their fault but a damning indictment of big government and why, unlike big data, it is on the precipice of collapse.

*No point saying things privately about the breathtakingly arrogant uselessness of the basketballer in chief, he’s doubtless already read my emails…

India – Staff Costs Spike At Exchanges

Business Standard

As it competes for business, the country’s newest stock exchange, MCX-SX, has seen employee expenses rise over 50 per cent in the latest year, outpacing established rivals NSE and BSE by a wide margin.

PLY: Good news for investors: Salaries may be rising in India’s exchanges but there is no sign yet of private jets or multi-million dollar payouts in the event of being taken over regardless of price achieved for shareholders…

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