June 17 2013

elb2 Everybody is entering the swap platform marketplace while elsewhere we manage a quick tour of the world with all manner of exciting new markets, read on!

Public Markets

London Stock Exchange Enters Interest Rate Swaps Market

Reuters

LSE will launch an interest rate swaps trading platform via MTS Europe backed by a group of banks to meet regulators’ demands from Q4 2013. BNP Paribas, Commerzbank, Credit Agricole, HSBC, Lloyds, Societe Generale and UBS have indicated they will support the platform from launch.

PLY: Clearly banks will be busy with all the platforms they are going to support in the brave new SEF-world. Meanwhile LSE/MTS, like Tradeweb are keen to compete against all-comers including the IDBs and exchanges amongst others…

JP Morgan Joins Forces With LSE For CSD Launch (subscription)

Financial News

JP Morgan is teaming up with the London Stock Exchange Group as part of its move to launch a central securities depository, according to three individuals familiar with the plans.

PLY: Xavier Rolet bids to become the LSE’s answer to Charlemagne uniting the empire under across asset classes and from front to back. The ghost of the Taurus fiasco may finally be slayed by the LSE…

Nasdaq OMX NLX Achieves Low Latency and Rising Trade Volumes in Start-up phase

Low-Latency.com (blog)

Nasdaq OMX NLX opened for business on the last day of May. Charlotte Crosswell, CEO of NLX, says trading volumes are building, trades are being filled in 100 to 200 microseconds, and NLX is considering new developments on top of futures trading in three-month Euribor, three-month Sterling, long gilt, two-year Schatz, five-year Bobl and 10-year Bund, with LCH.Clearnet clearing trades using a horizontal model that creates portfolio margining opportunities.

Japan Exchange Plans Infrastructure Bourse

MarketWatch

Japan Exchange Group, operator of the Tokyo Stock Exchange, will create a new market, possibly in fiscal 2015, to attract private capital to upgrade or replace infrastructure built during Japan’s postwar boom.

There are about 50 infrastructure investment funds listed world-wide, with a total market capitalization of 10.4 trillion yen ($110.24 billion) as of the end of January.

PLY: Japan has a lot of investable cash and a lot of companies who can build you anything from the digger to engineer it to a nuclear power plant. A good idea to rebuild domestic infrastructure along with creating a market which may fund Japanese export opportunities too.

Private Markets

IDX May Raise IPO Minima

Jakarta Globe

The Indonesian Stock Exchange is considering raising the minimum number of shares released during initial public offerings from 10 percent to 15-20 percent.

Technology

Thai Stock Exchange Deployed Data Management Software

FutureGov Magazine

The Stock Exchange of Thailand (SET) has deployed a new software to enhance its management of unprecedented data growth.

In partnership with CommVault Simpana, the software implementation is expected to manage back-up, recovery, searching and archiving of data, after the SET has experienced unprecedented data growth over the recent years.

Career paths

Dhaka Stock Exchange Elects President Amid Director’s Boycott

Daily Star Online

Ahasanul Islam Titu was elected the president of Dhaka Stock Exchange yesterday amid a boycott by a director of the premier bourse board.

Md Shahjahan and Md Mizanur Rahman were elected senior vice-president and vice-president of the premier bourse, after the annual general meeting of the DSE held at Ruposhi Bangla Hotel.

Titu, chairman of Mona Financial Consultancy and Securities, will replace the bourse’s outgoing president Rakibur Rahman.

Crowdfunding

Green Start-Ups Turn to Crowdfunding

CNBC.com

A casual search of the words “solar” and “green” on the large crowdfunding site Kickstarter yields a wide range of projects seeking funding (not loans) from friends, family and strangers. Projects include a self-watering planter for growing herbs and greens, and solar chargers for gadgets such as smartphones and tablets. Fundly, a website devoted to crowd funding for charities, also features some solar projects.

Is Equity Crowdfunding A Scandal Waiting To Happen?

This is Money

Fears are growing over the lack of regulation of equity-based crowdfunding, with some experts warning of a scandal waiting to happen.

In the past few years, crowdfunding websites – which allow investors collectively to fund small firms – have become an increasingly popular way for fledgling enterprises to raise money. The sector has already grown into a £500 million industry.

With equity crowdfunding, investors receive shares in the business they are backing. But experts fear inexperienced investors may not understand the risks. Others warn that the lack of regulation leaves the door open to rogue companies.

PLY: A marvellously majestic exercize in what I would call ‘kinetic risk’ married to the “there’s a dead cat on your doorstep” strategem of interview. AKA Various commentators give a measured response that, well, there is money changing hands and so there may be a problem as not all investments profit.” Otherwise they run the risk of being pilloried by self-same media if one little old lady loses a pfenning. By the time this has reached the headline writers, they are delighted to screech about “scandal” and so forth which may help declining newspapers staunch readership but actually does nothing to help the vast majority of people who are gaining work as a result of the efforts of crowdfunding to expand business where government, banks and all other intermediaries are unable to help…

There is clearly a risk to investment. There is always a risk to fraud. However, once we don’t trust anybody else then we have no commerce. Once we have no commerce well it’s like, well where Poland was by 1989.

Of course investors need to be educated and helped to understand risk but simply treating them like imbeciles as tragically prevails amongst too many regulators and entities, doesn’t help people gain alpha nor businesses to gain funding.

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