June 15 2016

elb2SEC staff say “go!” for IEX…fingers crossed. Brexit may kill DB1-LSE says EIU, so the benefits are stacking up. More significantly, the CME finally gets European CCP recognition!

As requested by various readers, I am rolling out a series trying to help understanding of the Brexit dynamics in Exchange Invest Premium:  Part 1: Brexit – Introduction & Part 2: Brexit 2 EU Dysfunction. Part Three are joined today by: Spousal Abuse. 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…

See you tonight at the FESE Convention Gala Dinner, hosted by Joe Portelli and the Malta SE team…

Public Markets

LSE – DB1 Merger ‘Could Fail In Event Of Brexit’

Belfast Telegraph

The deal would be put in jeopardy post-Brexit by the erection of barriers to cross-border capital markets transactions and a lack of political support, according to the Economist Intelligence Unit.

QV Premium: DB1-LSE Merger Brief.

PLY: Essentially the Germans will lose their nerve faster than they have historically kept their SME exchange open…

 

SEC Staff Recommends Full Approval of IEX Exchange Application (subscription)

Dave Michaels – Wall Street Journal

SEC’s staff recommended that the agency approve IEX Group’s controversial bid to launch a new stock exchange, signaling likely approval when the agency’s commissioners vote on the order Friday.

PLY: Hooray!

TABB Group: All Speedbumps Are Not Created Fair Or Equal

MondoVisione

PLY: Some inside the box, some coiled outside the box – the debate on pure chicanery is multifaceted…

 

ESMA Updates List Of Recognised Third-Country CCPs

MondoVisione

Recognition of the US Chicago Mercantile Exchange Inc. (CME).

PLY: At long last, a farcical trans-Atlantic standoff is ending…

CME Statement on ESMA’s Recognition of CME Inc.

PRNewswire

PLY: Summary: Phew!

 

Charles Li: LME Not ‘Ripping Off’ Members Over Fees (subscription)

Jennifer Hughes – Financial Times

LME is not “ripping off” its members but is open to discussion on fees, according to Charles Li in his first comments since talk surfaced last week of a rival metals platform led by disgruntled traders.

HKEX Plans LME Platform in China (Video)

Bloomberg

China Won’t Come To The LME, So The LME Will Go To China

Clyde Russell – Reuters

Some four years after shelling out a top-of-the-market $2.2 billion for LME, it appears HKEX are still battling to make the venerable old Western institution work with China, the new and dominant centre for metal demand.

 

CFTC Requests Public Comment on a Rule Amendment Certification Filing by ICE Futures U.S.
CFTC

Private Markets

Vienna SE & CEESEG 2015 Results

MondoVisione

Vienna SE: operating result EUR 20.5m (USD 23m), up 12.9%.

CEESEG (holding company comprising Vienna SE & Prague SE): consolidated operating result EUR 30.4m (USD 34m), up 7.4%.

PLY: Good numbers from the Vienna Exchange which is revamping with a fascinating new Chairman and a terrific new CEO in Christoph Boschan, formerly of Stuttgart Exchange.

 

ChrysCapital, GIC May Buy SBI’s 5% Stake In NSE

Shrija Agrawal & Swaraj Singh Dhanjal – Livemint

ChrysCapital, GIC are seeking to buy the SBI stake at a price of around Rs4,000-4,050 per share, which puts the deal size at around Rs900 crore (USD 134m) (valuing the exchange at USD 2.68b).

QV Premium: India – NSE Sales Brief.

 

Baltic Beckons Back Break-Away Brokers

Holly Birkett – Splash 247

The Baltic Exchange says it will engage with the newly formed panellist group Competitive Ship Brokers Limited (CSBL), comprised of some panellists opposed to the Baltic’s proposed acquisition by SGX.

The current members of CSBL are Arrow, Banchero-Costa, BRS, Exeno Yamamizu, Fearnleys, Hartland, Ifchor, LSS, Rigel and Thurlestone, who intend to invite other broking shops to join too.

CSBL says it will continue to supply data to the Baltic but has complained that “many of the major international shipbroking firms feel a need to have a single voice in a challenging market environment which is undergoing significant change”.

PLY: An interesting position, will it be a case of terms or price ultimately?

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX up 1 while FTIL is up 2.5%

Reserve Bank Feels NSEL Case Heat

Business Standard

The Gujarat High Court on Tuesday issued notice to the Reserve Bank of India on a public interest litigation (PIL) seeking legal action against NSEL for operating a payment system without authorisation.

The NSEL Aggrieved and Recovery Association, a body of investors which has filed the petition, says lack of regulatory action led NSEL committing a fraud through its trading terminal, in which around 13,000 investors lost money.

The division Bench of Chief Justice R Subhash Reddy and Justice V M Pancholi on Tuesday issued notice to RBI, seeking a reply by July 5.

QV Premium: NSEL Scandal Brief – Part 16.

Technology

uTrade Introduces India’s First Blockchain Technology Solution ‘uClear’ For Real Time Clearing & Settlement For Financial Markets – GMEX First To integrate uClear

MondoVisione

PLY: Great move for GMEX, a useful integration to add to the GMEX suite. More practical application of the Blockchain.

 

Broadridge Buys 4sight Financial Software

MondoVisione

PLY: Interesting acquisition of a collateral management software entity. Terms not disclosed.

 

LME Reviewing Possible Use Of Blockchain Technology

Reuters

PLY: Obvious answer, just like “Of course we have an extensive Brexit strategy”.

Products

Bats Hotspot to Launch Outright Forwards for FX Market

Bats

Bats Hotspot announced plans to offer global trading of outright deliverable forwards contracts, with a launch planned for fall 2016.

PLY: On the back of the BUKs, another cool move as Bats makes more competitive progress from its strong base developing the Hotspot market.

 

CFTC Approves Final Rule to Amend Swap Data Recordkeeping & Reporting Requirements for Cleared Swaps

CFTC

Statement Of CFTC Chairman Timothy Massad

MondoVisione

 

Thomson Reuters & OTC Markets Group Agree To Add End-Of-Day Pricing Data Distribution For OTCQX, OTCQB & Pink Securities Via The DataScope Platform & Product Suite

MondoVisione

PLY: Good.

 

TMX Equity Transfer Services Changes Name to TSX Trust

TMX

PLY: Unclear why TSX and not TMX Trust…an anti-Quebec swipe?

Indexes

CBOE to Develop Series of Social Media-Based Strategy Benchmark Indexes

CBOE

CBOE entered into an exclusive licensing agreement with Social Market Analytics (SMA) to develop a series of sentiment-based strategy benchmark indexes based on SMA’s social media metrics.

PLY: #IndexSWAG

Career Paths

At the AGM of Wiener Börse AG & CEESEG AG, Dieter Hengl, member of the Management Board of UniCredit Bank Austria AG, responsible for Corporate & Investment Banking, was elected to succeed Willibald Cernko on the supervisory body. At the Supervisory Board meeting held immediately afterwards, effective immediately, Heimo Scheuch, CEO of Wienerberger AG, will serve as Executive Chairman of the Supervisory Board of Wiener Börse AG & CEESEG AG. Angelika Sommer-Hemetsberger, member of the Management Board of Oesterreichische Kontrollbank AG, was elected Vice-Chairman of the Supervisory Board.

PLY: Fascinating move: Certainly the Austrian exchange needs surgery and a major reorientation after the failed Hapsbourse strategy has unravelled and the last C-suite team looked as if they had lost their mojo some time ago. Interesting to see how the new Executive Chairman impacts the enterprise which has potential but needs a pivot… At least the management team now looks a lot firmer than before.

The BoD of SIX have elevated Deputy Head Corinne Riguzzi to Head of SIX Exchange Regulation with effect from 1 January 2017, succeeding the retiring Rodolfo Straub.

Ontario Securities Commission (OSC) Chairman & CEO Maureen Jensen announced the appointment of Leslie Byberg as Executive Director & Chief Administrative Officer, effective immediately.

The WFE have filled their vacancy for a Comms head: welcome to Anna Watson.

Financial Calendar

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.

Share Notes

ICE Director Jean Marc Forneri sold 5,800 shares on June 9th at $262.95 (bargain $1,525,110.00). He now owns 11,070 shares.

NASDAQ OMX CEO Robert Greifeld sold 147,952 shares,on June 10th at $65.54 (bargain $9,696,774.08). He now owns 1,090,093 shares.

Crowdfunding

Crowdfunding Sites Do Battle With VC Firms (subscription)

Hugo Greenhalgh – Financial Times

Crowdfunding platforms and venture capital firms are going head to head to capture the growing interest in investing in early-stage companies in a move that could spark a round of consolidation between the two.

Other stories

U.S. Appeals Court Endorses SEC Rules For Small Offerings

Reuters

A U.S. appellate court on Tuesday upheld a SEC plan that allows small companies to sell stock to big investors without satisfying tough disclosure rules.

Qualified investors may buy up to $50 million in securities from certain companies without first seeing detailed financial data that everyday investors would expect in a public offering.

 

Testimony On “Oversight Of The U.S. SEC”, SEC Chairman Mary Jo White Before The Committee On Banking, Housing, & Urban Affairs, US Senate, June 14, 2016

MondoVisione

 

Abu Dhabi Global Market & Cayman Islands Monetary Authority Sign MoU On Bilateral Cooperation

MondoVisione

 

WFE Releases Second Annual Sustainability Survey – More Than 90% Of Responding Exchanges Are Demonstrating Commitment To Sustainability

MondoVisione

PLY: …we’ll be demonstrating the Exchange Invest commitment to sustainability by publishing tomorrow morning.

 

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