The great news Friday night was that the SEC has been convinced and the Flash Boys have their exchange licence. Plaudits, to Brad, Ronan and all the IEX team. Now, let’s see how this plays out.. Exciting times and opportunities abound.
Meanwhile in BigWorld, Toyota’s last minute loss in the 24 hours of Le Mans to Porsche was heartrending. This wasn’t an 11th hour defeat, it was a loss at the 50-somethingth minute of the 24 hour… Makes you wonder how folks will feel after the referendum. Lots of Sterling being talked lower media reporting: which is remarkable as UK exports might yet have a boom on Brexit such is the competitiveness of the Pound…
A big week lies ahead. The only thing I can be sure of it that I doubt it will turn out quite as we expect.
Chuck Mikolajczak – Reuters
Annie Massa & Nick Baker – Bloomberg
Nicole Bullock – Financial Times
IEX has won its battle to become an exchange, ending a controversial fight that divided the US equities industry and marking a sea change in the way stocks will be traded.
Dave Michaels – Wall Street Journal
PLY: A delightful piece of news which rounded out Friday. Congratulations once again to Brad and the entire IEX team, a great result all round and now we have a fascinating opportunity to watch this experiment in market structure develop.
ICE will acquire a majority equity position in MERSCORP Holdings, owner of Mortgage Electronic Registrations Systems. In addition, ICE and MERS have entered into a software development agreement to modernize and enhance the MERS System. MERSCORP Holdings owns and operates the MERS System, a national electronic registry that tracks the changes in servicing rights and beneficial ownership interests in U.S.-based mortgage loans.
The transaction is expected to close at the end of June. Under the agreements, ICE will rebuild the MERS System infrastructure and is expected to shift its operation to an ICE data center in H1 2018. Price and terms of the transaction are immaterial to ICE, and were not disclosed.
PLY: Another fascinating big data play by ICE while at least 2 other possible competitors are not paying attention.
QV Premium: Exchange Deals Brief – M&As.
Eyk Henning – Wall Street Journal
PLY: #Obvious rejoinder as I have noted in the past, including as recently as last week.
QV Premium: DB1-LSE Merger Brief.
Josh Kosman – NY Post
BC Partners and Bain Capital, have submitted separate bids and Carlyle Group and Onex Partners are partnering on a third bid for Thomson Reuters’ intellectual property and science business.
The intense auction process could produce a price near $3 billion, and that would be nearly 10 times Ebitda.
Large lenders are offering suitors more than the six times debt-to-Ebitda ratio outlined in federal guidelines for leveraged buyouts in order to get the deal done.
The lenders are willing to go above the guideline limit because there is a growing demand for scientific material, and Thomson division, which validates papers and studies, is not an actual editor.
Annie Massa – Bloomberg
New changes revealed to get more stocks trading at 9:30 a.m.
Wilson Lau – SCMP
Operator looks at closer cooperation with exchanges in mainland China and around the world and signs MoU with the Shanghai Gold Exchange to explore areas of mutual interest.
The Shanghai Gold Exchange is continuing talks with HKEX, parent company of LME to give greater access to its contracts, but isn’t looking at direct partnerships with the LME according to SGE exeutive director, Lila Lu.
Chris Davis – SCMP
Its 2016/18 strategic plan wants a third board for companies, unable to meet the profit requirements of the main board or the trading criteria of the Growth Enterprise Market (GEM).
Special Section: FTI, NSEL, India at the Crossroads
PLY: MCX flat to small off, FTIL up nearly 2%.
To quickly auction Rs 6,116 crore (USD 900m) of assets and refund investors at the earliest.
PLY: More meetings, more talk, no resolution #Disappointing.
The Economic Times
The exchange launched its new e-IPO bidding system in January.
John Detrixhe – Bloomberg
Anna Irrera – Financial News
The Bank of England has tested how blockchain technology can be used for payments settlement, as financial regulators around the world intensify their fintech efforts.
PLY: Interesting, see also BoE statement below…
Neil Collins – Financial Times
LSE faces competition in its indices business.
PLY: Not before time and indeed another reason why DB1-LSE is ill-conceived with a bankers’ haste and lack of attention to detail.
MarketWatch reports that Reserve Bank of India Gov. Raghuram Rajan said Saturday he would leave his job as head of India’s central bank when his mandate expires in September.
20.06 – MOEX RUB 7.11 2015 dividend payment
21.06 – JPX AGM
22.06 – BGC Partners AGM 2016
22.06 – WSE AGM
24.06 – Nasdaq $0.32 quarterly dividend payment
All forthcoming exchange / investment related events are now listed in our Events page.
PLY: Very interesting.