June 16 2016

elb2Frantic day in Malta. Terrific FESE opening dinner last night watching the crisp blue night sky of Malta dining under the stars with a splendid roster of speakers including the Maltese Finance Minister, Chairman of the Shanghai SE and the boss of ESMA…and that was just the opening soiree!

My panel “Teaming Up Savers With Companies – How to Finance Europe?” is coming up at 1030 CET.

On the EU theme, as requested by readers, the Premium series understanding the dynamics of the Brexit debate in the UK continues:

Part 1: Brexit – Introduction

Part 2: Brexit 2 EU Dysfunction

Part 3: Spousal Abuse

Part 4: The Vote

I am writing 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…

Public Markets

Five Hurdles That Can Still Scupper The LSE Merger (& Stop Rolet Pocketing A £14m Payday)

James Burton – Daily Mail

There have been months of clandestine meetings, multi-million-pound fees for advisors and a public relations blitz. Now the bosses behind a German takeover of the LSE are increasingly confident their £21billion deal will go ahead. And the tie-up is triggering a £235 million fee bonanza for the lawyers, bankers and spin doctors.

PLY: Am I alone in pondering how day to day DB1 and LSE project abject parsimony then when a deal (no matter how ill-considered) is on the table, they behave like footballers wives on a shopping spree?

QV Premium: DB1-LSE Merger Brief.

 

Disclosure Of Total LSE Shares In Issue Pursuant To Rule 2.10

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Europe’s Clearers Could Hike Margins Further Amid Brexit Fears (subscription)

Tim Cave – Financial News

Investors in Europe’s equity and derivatives markets are facing the prospect of higher margin calls from the region’s clearing houses, which are readying themselves for shocks if the UK votes to leave the EU on June 23.

PLY: Volatility increases, margins go up. So presumably do volumes. European focussed derivatives exchanges must be enjoying the ride, a particularly handy boon for ICE’s Sterling contracts for instance.

 

Sebi Asks Exchanges To Change Norms On Investor Claims

Ashley Coutinho – Business Standard

Wants exchanges to compensate investors from investor protection fund even if trading members are expelled.

Private Markets

Aquis Exchange Examines Potential Stock Market Listing (subscription)

Financial Times

UK trading venue in discussions with shareholders as it puts final touches to fundraising.

PLY: Very interesting, I do hope Aquis has secured its future. The other day the Warsaw Exchange floated a possible option to sell out…

 

The Namibian Stock Exchange (NSX) Plans To Demutualise & Intends To Self-List

Chamwe Kaira – Namibian

In the 2015 annual report, the NSX funded the project to launch a CSD in the Namibian market, in partnership with the Bank of Namibia.

 

The FESE General Assembly Approves Budapest SE As Full Member

MondoVisione

PLY: Welcome back to Budapest, liberated from the failed Hapsbourse project. Good to see Vienna’s new management team in Malta at FESE too. In Christoph Boschan (CEO) and Petr Koblic (CFO) I am more optimistic than I have been for years that Vienna has a future as a plausible exchange.

 

CERC Observes Market Violations By Power Exchanges

Shreya Jai – Business Standard

In order to review the performance of the two power exchanges, the Commission engaged Deloitte Touche Tohmatsu India and KPMG Advisory Services for IEX and PXIL respectively.

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX and FTIL down 1%.

NSEL-FTIL Hearing Adjourned

The Hindu Business Line

The Bombay High Court on Wednesday adjourned hearing in the NSEL-FTIL merger case to June 23 even as it is yet to take a view on government’s recent plea seeking six weeks time to respond to FTIL’s challenge of final merger order.

QV Premium: NSEL Scandal Brief – Part 16 and NSEL-FTIL Merger Brief.

Products

MarketAxess Brings Dark-Pool Features to Corporate Bond Trading

John Detrixhe – Bloomberg

MarketAxess is bringing some of the attributes of equity dark pools to the world of corporate bond trading as more technology firms vie for a piece of company debt market.

PLY: For bond blocks it is a good idea if we end up just with systematic internalisation then little progress will have been made…

 

MarketAxess: Investors Pass Dealers in Europe Bond Trading

Katie Linsell – Bloomberg

About 55% of transactions on the firm’s Open Trading bond platform are now between investors, Gareth Coltman, head of European product management at MarketAxess, said at a briefing in London on Tuesday. That’s up from 50% in Q1.

PLY: Might cause some exchanges to pause for thought as they continue to blithely believe in the sell side’s pre-eminence…

 

NCDEX Makes Assaying Of Commodity Mandatory At The Time Of Delivery

Business Standard

NCDEX has introduced compulsory sampling and testing for outbound deliveries, starting with rapeseed and mustard. NCDEX has decided compulsory sampling and testing in respect of all contracts in rapeseed and mustard seed on a pilot basis, until further orders.

 

Horizon Software & Thomson Reuters Announce Collaboration In China

MondoVisione

Career Paths

HKEX announced that Mr Lee Kwok Keung, Roger, HKEX’s Head of Markets, is appointed to replace Mr Romnesh Lamba as the CEO of The Stock Exchange of Hong Kong (SEHK) and Hong Kong Futures Exchange (HKFE). Mr Lamba, HKEX’s Co-head of Market Development, remains as a director of both SEHK and HKFE.

Bloomberg reports that ITG’s head of U.S. electronic sales, Timothy Reilly, has left the firm.

The FESE General Assembly unanimously agreed the appointment of Mr Lauri Rosendahl and Mr Petr Koblic to the FESE Board for a term of 3 years (until June 2019).

PLY: Particularly good to see Petr Koblic on the FESE board as he is now the leader of the CEE markets’ today, as the Warsaw exchange has gone into reverse closely correlated with government machinations in Poland.

OpenDoor Trading appointed electronic trading pioneer Michael Sanderson, and fixed income veteran, Chris Ferreri, to its Advisory Board. They join a Board that already boasts bond market experts John Brynjolfsson and Kenneth deRegt, formerly of PIMCO and Morgan Stanley respectively.

The New York State Senate confirmed Governor Andrew M. Cuomo’s nomination of Maria T. Vullo as Superintendent of the New York State Department of Financial Services (DFS). Ms. Vullo has served as Acting Superintendent since February when she was nominated by Governor Cuomo to lead DFS.

Financial Calendar

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

CME insider Kevin Kometer sold 3,825 shares on Monday, June 13th at $95.50 (bargain $365,287.50). He now owns 46,351 shares.

Other stories

ESMA Publishes Annual Report 2015

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