JUNE 19 2017

Good Morning and welcome to Issue 1018 or Exchange Invest Daily which corresponds with iron with a carbon content of 0.18%…alloy 1018 being the most commonly available of the cold-rolled steels.

Parish plaudits to Rhodri Preece-Jones of NASDAQ, Nicholas Vandrey of Funderbeam and Malta SE NED Abdalla Kablan who added significant value to the EU Digital Assembly’s discussion on FinTech last Friday.

Prosperity UK Video

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

In Today’s Exchange Invest

Brexit negotiations get under way, with IEX (no the Indian Energy Exchange) heading for an IPO. Meanwhile CSDL IPO is open with cornerstone agreement in place. HK second board a beard for dual share structure secondary listings? Shock as FT endorses free markets AND criticises the EU in one article!

And there’s more, happy scrolling:

In BigWorld

A simply crazy Le Mans looked a nailed on Porsche win early Sunday morning. At 16 hours reports were being written: the top Porsche was cruising to victory with a 13 lap cushion over the 2nd placed (lower class) car. However despite a meltdown early in the race, it was the second Porsche which won, overcoming what was at one stage a 19 lap gap to the leaders! Every top category LMP1 car had problems. Toyota had a mechanical failure on one with the other car brutally shunted off course during the night – no fewer than 3 leaders retired from P1… The race had elements of the 1965 classic where Ford’s millions proved futile as Ferrari won again after the early delayed private NART 250LM scooped the top spot when Jochen Rindt and Masten Gregory agreed to go flat out to the finish after earlier mechanical problems…

Public Markets

Europe’s Smart Compromise On London Clearing
Countdown To Brexit: ‘London Must Lose Euro Trading’. On Eve Of Crucial Brexit Talks, Continental …
This is Money

PLY: Brexit talks begin today. French former central bank boss Christian Noyer is demanding forced repatriation of Euro clearing in that tone deaf anti-capitalist style French blobsters have made their hallmark.

The City Should Not Overpay For A Euro-Clearing Deal
Financial Times

PLY: Jonathan Ford embraces both free market competitive capitalism and criticism of the EU, in what I suppose may be his last article for the Brussels Bugle AKA ‘el Pinko.’ Great stuff, naked emperors hung out to dry and more:

“There is also a political desire to shield the euro and EU sovereigns from the unfavourable judgment of the markets — to prevent those verdicts from pushing up borrowing costs, for instance, or from putting troubled banks to the inconvenience of raising additional capital they may struggle to find.

It is the same impulse that led European politicians and regulators to impose short-selling bans or seek to constrain the activities of credit rating agencies…

Letting the EU superimpose such considerations on UK supervision might buy a quick deal with Brussels. But it would be a Pyrrhic victory. There is nothing to be gained by letting politics or innate conservatism check the freedom of clearing houses to innovate or require customers to back trades with such margin and collateral as they deem necessary for their safe operation. Indeed that would be the quickest way to import eurozone risk into the UK’s financial markets.

A deal on joint oversight ought to be possible, and remains in the interests of both sides. But it cannot be built on boxed-in markets that are deterred from reaching inconvenient conclusions. That would simply prompt an exodus of activity to somewhere more open. And, whatever its location policy, that would not be the EU.”

Note to FT: Please make Mr Ford the editor in place of those ghastly dripping Euro bigots who have sullied the name of a journal we hope can be rejuvenated to endorse free markets under enlightened Japanese ownership.

Germany & France Eye-Up Euro Clearing Market After Brussels Proposals: Frankfurt Lobby Group
City A.M.

PLY: Pity that the only major Frankfurt GCM has a balance sheet which is, well let’s face it, better than Britain’s Coop bank…but at least the bankrupt Coop is not trying to clear derivatives.

Hong Kong Makes Play For US Secondary Listings With New Board Proposal
Reuters UK
Dual Share Class Is A Sore Thumb In Hong Kong’s New Tech Board
South China Morning Post
Hong Kong’s Bourse Not Only Lacks New Economy Stocks, It Lags In Number Of International Firms Too
South China Morning Post

Hong Kong Exchanges and Clearing has launched the much awaited consultation paper on the proposal to establish a third board.

Private Markets

Indian Energy Exchange Files For IPO

NSE Knew Technology Flaws Can Allow Preferential Access, But Didn’t Act: Audit

PLY: This could be perceived as ultra-damning.

Sebi’s Forensic Audit On NSE Brokers To Establish Gains
Business Standard

PLY: This isn’t a George Best joke, this really is a case of “where did it all go wrong?”

CDSL IPO Opens Today. Here’s All That You Need To Know
CDSL Raises Rs 154 Crore Via Anchor Investors Ahead Of Its IPO
CDSL IPO: Clients Must Be Fit To Trade In Depository, NSE Tells Brokers

PLY: The macro worry is that nowadays is NSE ‘fit and proper?’

Chinext To Deepen Reform To Boost Mass Entrepreneurship, Innovation

Bursa’s New Platform For Small Firms To Seek Listing
The Star Online

Nigerian Bourse Remains Hub For Innovation, Creative Ideas – NSE Boss

Special Section: FTI, NSEL, India at the Crossroads

Centre Clears Prosecution Of Ex-CMD Of PEC In NSEL Case


Looking For Questions Where The Answer Is Blockchain

It’s possible that, in 10 years, every trade will be recorded and managed on a distributed ledger. But it’s not probable.

PLY: Brilliant line, as Blockchain gets POC-sy one might say.


From Dates To Power, China’s Exchanges Rush For Futures Sweet Spot

Epex Spot Electricity Exchange Eyeing Baltic Markets
ERR News

Career Paths

Cinnober has appointed Ninni Pramdell as Group CFO. Good luck to her while all the best on retirement to John Griffith-Jones who has confirmed plans to leave the UK FCA in March 2018.


European Crowdfunding Network Launches Survey On Cross-Border Crowdfunding
Crowdfund Insider

Other Stories

Playing Tricks With Dodd-Frank
New York Times
Frankly it struck me that while they were the leaders, the Toyota team really didn’t have the killer pace to pull away comprehensively this year. The early evening had shades of 1987 about it where the Porsche team realised their (by then) venerable 962 was still close enough to the Jaguars. Of course Jaguar returned in 1988 and, well, blitzed the opposition…

All the best,


Patrick L Young
Executive Director DV Advisors

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