June 14 2016

elb2As requested by various readers, I am rolling out a series trying to help understanding of the Brexit dynamics and possible outcomes. Part One was published yesterday in Exchange Invest Premium: Brexit – Introduction while today I have added Part Two: Brexit 2 EU Dysfunction. It’s written from the perspective of an investor / entrepreneur so blobsters of all forms may find it excruciating but I have never found investing according to the principles of the corporate greasy pole delivered any sensible returns…

Today in the parish, banks seem to be getting the message that the OTC gravy train is coming to an end while Warsaw is flying a kite to sell its Aquis shares.

Last call: it’s the FESE Convention beginning tomorrow evening in Malta, 15/16th June.

Public Markets

Conclusion Of A Significant Conditional Agreement Concerning Aquis Exchange Shares

WSE

As a result of signing by all shareholders of Aquis Exchange, an annex to the Aquis shareholders’ agreement entered into force, GPW agreed to conditionally sell (Call Option) the entire package of Aquis Exchange shares held at the time of exercising the Call Option.

The Call Option may be exercised by Aquis Exchange if there is a:

  1. Negative decision of GPW concerning a potential restructuring of Aquis Exchange or its capital structure as necessary to implement an IPO.
  2. Negative decision of GPW concerning a potential IPO by Aquis Exchange.

PLY: GPW flies a kite to try to get somebody to give them a healthy profit on their Aquis stake. GPW want to sell at 37GBP shares they acquired at  13.02GBP when they injected 5 million to garner 30% of the “all you can eat” equity MTF founded by Alasdair Haynes. The option expires Nov 2017 and is valid for the entire tranche of shares only…  GPW now holds a slightly diluted 26.33% stake. If the deal closed it would value Aquis at 54 million Pounds (circa 70m USD) which strikes me as high given the relative lack of market share Aquis holds currently. Will somebody pay this? It will be interesting to see as it strikes me there are much better deals to be had elsewhere but then again one can never discount Alasdair’s power to pivot.

In other news, the Polish government last week announced an intention to renationalize some industries and expressly discouraged foreign investors. How the new Communist era of Polish socialism in one country will go is unclear but it seems plausible to suggest recession will finally break out after a 20 year spell of economic growth.

 

CME Preps For Possible Market Disruption From Brexit Vote

Reuters

CME is “continuously and actively monitoring” its markets for impacts related to Britain’s vote on whether to leave the EU.

PLY: Fabulous non-story. Ask any corporate entity have they a contingency plan in place for any event and the answer is always a variation on “Yes.” when it comes to the Madness of Crowds factor it is clear the media has already long lost any sensible perspective of reality as the incumbents fret furiously about….actually if you really want to understand logically the whole fetid mess, read the Premium posts: Brexit – Introduction & Brexit 2 EU Dysfunction.

 

LME CEO: Possible Link Between Higher Fees, Lower Volumes

Melanie Burton – Reuters

LME CEO Garry Jones: the bourse’s falling trade volumes could be linked to a fee-hike introduced early last year, but the main reason for the decline was a downturn in the global economy.

HKEX Makes New Bid Boost Metal Market Role in China

Bloomberg

HKEX plans to start a metals trading platform in H1 of next year in southern China. Previously discussed here and here.

Commodity Broker Marex Spectron Targets Growth Away From LME After Fee Hikes

Melanie Burton – Reuters

Marex Spectron is expanding its metals business into new regions and products beyond the LME after fee hikes led its customers to look for cheaper avenues for trading.

 

Banks Open A New Front In Trading Floor Surveillance (subscription)

Lucy McNulty – Financial News

Traders across the City are coming under surveillance like never before.

Private Markets

New York State Department of Financial Services Grants Virtual Currency License To XRP II, LLC, An Affiliate Of Ripple

MondoVisione

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX up 2%, FTIL up 3.5%.

Technology

Technological Innovation In The Financial Sector – Autorité Des Marchés Financiers Creates Fintech Working Group

MondoVisione

PLY: This is AMF Quebec, not AMF France btw. Good initiative.

Products

HKEX Aims To Launch Gold Contract In Sept

Melanie Burton – Reuters

HKEX is aiming to launch its planned physically-delivered gold futures contract in September. It will be simultaneously denominated and settled in USD and Chinese yuan.

 

OTC Derivatives Market Rethinks Its Resistance To The Future (subscription)

Philip Stafford – Financial Times

Battered by falling trading revenues, big global banks are taking a harder look at reforming their once booming backyard of privately negotiated deals with clients.

PLY: I see the OTC market currently in a sort of manic depressive state. Hence they clutch at the straws of the nebulous agitprop produced by some who ought to know better predicting vast cost savings from proven impossible nirvana offsets et al. Make no mistake, the OTC market is DOA. Even a US Republican clean Sweep in the next elections would not change that as the rest of the world has moved on…

 

International Securities Exchange Surpasses 50 Million Contracts Traded Through Implied Order Functionality

MondoVisione

PLY: Another day, another benchmark surpassed from the benchmark in operational management of markets.

 

NZX: Smartshares Celebrates 20 Years Of ETFs In New Zealand

MondoVisione

Career Paths

FINRA announced that its Board of Governors has concluded the CEO search, and appointed Robert W. Cook as President & CEO, effective H2 of 2016. Mr. Cook will succeed Richard G. Ketchum, who has served as Chairman & CEO since 2009. The Board intends to name a new Chairman in the coming months.

SEC Chairman Mary Jo White Statement On FINRA’s Appointment Of Robert Cook As CEO

MondoVisione

Financial Calendar

14.06 – Interactive Brokers $0.10 quarterly dividend payment

14.06 – ITG $0.07 quarterly dividend payment

15.06 – Thomson Reuters $0.34 quarterly dividend payment

15-16.06 – FESE Convention 2016 – Malta

16.06 – Record date ICE Q2 $0.85 dividend

17.06 – CBOE $0.23 quarterly cash dividend payment

New! 28.07 – CME Q2 2016 Results

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

Other stories

Verena Ross, ESMA Executive Director, Speaks At European Parliament’s Public Hearing On Securitisation

MondoVisione

PLY: Securitisation – bring on more, Europe needs it desperately to ungum the many dysfunctional economies of the bloc.

 

HK’s SFC: Keynote Speech At ASIFMA-GFMA Market Liquidity Conference 2016

MondoVisione

 

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