The Daily Newsletter of Market Infrastructure








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Exchange Invest is a free daily email/web newsletter
about the core events pertaining to investment
in financial markets infrastructure such as:

  • exchanges
  • IT vendors
  • brokers
  • MTFs
  • clearing houses
  • etc.

JUNE 13 2017

Good morning and welcome to Exchange Invest Issue 1014 which corresponds to the California Highway Patrol code for “provide escort.”

Prosperity UK Video

Prosperity UK Panel – Brexit, Euro Clearing & Financial Market Structure: panel ably chaired by Barney Reynolds headlining parish luminaries Jeff Sprecher and Michael Spencer, with one Patrick L Young lurking in the background – perhaps the ‘hot button’ parish topic in derivatives of the moment…

In Today’s Exchange Invest

EU makes its play for Euro denominated clearing, applying the red tape strangulation methodology as opposed to pure up front brute heft. LSE upbeat at investor day, as Michael Davie is repo’d back to LCH from LSE Group.

And there’s more, happy scrolling:

In BigWorld

Gosh Jeff Immelt to stand down as CEO of GE – he’s been in situ so long (16 years) I had forgotten he was even in charge.

Public Markets

City Braced For Clearing Raid As EU Gives Itself More Powers Over Market
CityAM
Brussels Insists On Power To Control Euro Clearing After Brexit
Financial Times
LSE Says Splitting Euro Clearing Would Create Rump EU Market
Reuters

PLY: Essentially EU succumbs to B grade protectionist psychosis. Rather than demand movement, it expects to use overly prescriptive regulatory fiat to push clearing back into the Eurozone. Bifurcation will be the more likely end result than a clean break. Trade war threat still stands if the EU decides to go all hyper-Gensler with unilateral prescriptions.

Update 1-France Leads Opposition To Deal On Bank Capital Rules
Reuters

PLY: In other words French seek to protect own banks…wonder where that extra collateral will come from to shore up their bifurcated Euro swaps or indeed their GCMs? As good an example of any why splitting Euro clearing delivers an altar upon which the EU will sacrifice its own flawed currency I fear.

Hong Kong Bourse To Launch Consultations On Third Board
South China Morning Post

LSE Bullish On Outlook Despite Failed Merger, Brexit Uncertainty
Reuters
London Stock Exchange Lives To Fight Another Day
The Times (subscription)
Brief- London Stock Exchange Group Sees Group Ebitda Margin About 55 Pct By 2019
Reuters
LSE Lifts Guidance For Earnings Margin Growth
Financial Times

PLY: LSE held an investor day yesterday in London and while criticising EU protectionism on clearing, they were optimistic they can catch up in the CCP space thanks to open access, which helps address the multi-generational derivatives failings of LSE. To buy or to build an ICSD was another key issue to arise…

Derivatives Body Warns EU Against Moving Euro Clearing From London
Reuters
ISDA letter to Dombrovskis.

PLY: ISDA sensibly vents on EU protectionism.

Banks Contradict LSE CEO’S Brexit Warnings Over London Clearing
Bloomberg

PLY: A survey of 11 banks says extra cost is merely 20% whereas Xavier says 92% but in the apples – oranges, we really don’t understand this stuff media, it’s tough to tell just what has been discerned apart from the fact that costs would go up extraordinarily…

…and if any exchange had the temerity to add 20% to fees paid by banks we would heard the screams of protest continents away…

Brief- TMX, Tsx Venture Exchange Announce Expansion Into Israel
Reuters

PLY: Interesting news which doubtless excited the broadcasters of Montreal’s Radio Shalom where I appeared a few times on the “Money & Business” show with Samuel Ezerzer.

Plus500 Repurchases 120000 Shares In Week 1 Of Share Buyback Program
LeapRate

Private Markets

Wecast Lands 51% Stake In Nextgen Exchange Group
Seeking Alpha

PLY: Cable tv co buys Blockchain index biz it seems…

Special Section: FTI, NSEL, India at the Crossroads

No news today.

Technology

Thomson Reuters And Symphony Announce Strategic Partnership
MondoVisione

How Stock Exchanges Are Experimenting With Blockchain Technology
Nasdaq

PLY: A list of the main runners and riders in the field.

Products

Natixis Sues Marex Spectron Over Metals Warehouse Receipts
Reuters

Brief- Singapore Exchange Launches Net Total Return Futures For Key Emerging Markets In Asia
Reuters

Turkmen President Approves List Of Contracts To Be Registered At Commodity Exchange
Trend News Agency

EDHECinfra: Game Changer Infrastructure Indices To Create Multi-Trillion Dollar Sector
MondoVisione

Career Paths

PLY: Good luck to Michael Davie who has been appointed Global Head of Rates for LCH Group, effective immediately, reporting to Daniel Maguire, Group COO of LCH and Martin Pluves, CEO LCH Ltd.

Michael’s appointment follows Daniel Maguire’s recent appointment as Group COO in addition to his role as Global Head of Rates and FX Derivatives. Daniel will transition his role as Global Head of Rates to Michael, with Paddy Boyle continuing as Global Head of ForexClear.
Michael re-joins LCH after more than 18 months as Head of Rates Services at LSEG, developing the Group’s approach to rates products and overseeing the launch of CurveGlobal. Michael will remain as Chairman of CurveGlobal.

The EEX General Meeting elected a new Supervisory Board, congratulations to all parties concerned.

Crowdfunding

The Next Industry Amazon Could Dominate
Fortune

PLY: This generation it’s P2P lending…remember way back when in the 1990’s we folks pre-fintech being a word postulated it would be exchanges?

America’s Health-Care Crisis Is A Gold Mine For Crowdfunding
Bloomberg

Other Stories

No other stories of note today…
Britain still has a government thanks to a mea culpa from Mrs May but otherwise there is no sign the long awaited outbreak of government first heralded in 2010 but largely unseen since, is likely to happen.

Have a good day.

Patrick

Patrick L Young
Executive Director DV Advisors

April 2018
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