June 21 2016

elb2A few days to go until the Brexit referendum where the remain lead has reverted but can it last (usually British referenda swing to the establishment at the last minute and this campaign has seen the blob united in their scaremongering to stay). There are now 5 Premium briefs to catch up with on the topic:


Part 1: Brexit – Introduction

Part 2: Brexit 2 EU Dysfunction

Part 3: Spousal Abuse

Part 4: The Vote

Part 5: Brexit 5: Too Close To Call

…All written with an entrepreneurial investors’ eye.

Today in the parish, the blob derides IEX, IEX judiciously drops gauntlets in front of the establishment which tried to prevent its regulation…

Public Markets

Euronext Chief Eyes Assets As Exchange Industry Consolidates (subscription)

Michael Stothard – Financial Times

Stéphane Boujnah, Euronext CEO, refuses to be left out of the consolidation that is shaking up his industry.

QV Premium: Euronext Agility for Growth &  DB1-LSE Merger Brief.

PLY: Boujnah gives the answers we would expect of him in his position given the circumstances. Meanwhile, the mantra of consolidation pushed by the media continues to be the only story in town – pity there is so much growth being missed…


George Osborne Refuses To Rule Out Suspending Trading On the LSE If Britons Vote For Brexit

Daily Telegraph

PLY: Regardless of the outcome of this referendum, George Osborne is a spent force whose third rate Machiavellianism has led to his being broadly derided – and rightly so.


U.K.’s EU Vote Forcing Europe’s Stock Exchanges Into Special Measures (subscription)

Anna Irrera & Tim Cave – Wall Street Journal

As prospect of ‘Brexit’ hangs in the balance, exchanges and traders are boosting their capacity to cope with expected trading surge.

PLY: Quite simply nobody knows how markets will react but yesterday’s manic bullishness suggests anything which is not a clear remain win may cause chaos… markets are bizarrely bullish at keeping the UK in a declining customs union with ambitions above its proven (in)-ability to deliver.


Maturity Of Aim Questioned As It Celebrates Its 21st Birthday

William Turvill – CITY A.M.

“While Aim has been home to many individual success stories, the market as a whole has been a graveyard of failed ambition,” Laith Khalaf, Hargreaves Lansdown.

PLY: Ouch!


IEX CEO to Nasdaq, NYSE: Thanks For The Help

Jeremy C. Owens – MarketWatch

Katsuyama: Rivals’ fight against exchange certification exposed need for change.

IEX Sees Winning Enough Volume to Muscle Into Top Exchange Ranks

Annie Massa – Bloomberg

Now that IEX Group has the same coveted regulatory status as NYSE, Nasdaq and Bats Global Markets, the company’s CEO plans to steal a significant chunk of business from them.

PLY: Is IEX a fascinating niche play or a mainstream member? 2% of volume for the MTF now with 20% mark for being in the top tier… This will be fascinating to watch…

IEX: US Equity Market Upstart Has To Prove Slow Is Best (subscription)

Financial Times

Private Markets

Shenzhen SE Strictly Regulates ChiNext “Framework Agreement” Disclosure



Canadian Securities Regulators Publish List Of Unprotected Marketplaces


Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX flat to small off, FTIL up 1%. The biggest worry in India overnight is that the Modi revolution (which some might say has never really started) has stalled and suffered a huge international credibility blow with the resignation of Central Bank ‘superstar’ Governor Raghuram Rajan. None of this is good for India Inc.


Network Service Interruption At SIX


Yesterday, SIX has identified an increasing level of occasional network service interruption (updates on the network service interruption here)


SR Labs Rebrands As Vela Trading Technologies


PLY: SR always reminds me of the Blackbird. Vela sounds like a mispronunciation of a French bicycle with a single cylinder putt putt motor attached.


CBOE Acts Like A Tech Original Equipment Manufacturer

Jonathan Salem Baskin – Forbes

PLY: Interesting views from a parish outsider.


Australian ‘Bitcoin Founder’ Quietly Bidding For Patent Empire

Byron Kaye & Jeremy Wagstaff – Reuters

Craig Wright, the Australian who claimed to be the inventor of bitcoin, is attempting to build a large patent portfolio around the digital currency and technology underpinning it.

Since February, Wright has filed more than 50 patent applications in Britain through Antigua-registered EITC Holdings, which a source close to the company confirmed was connected to Wright, government records show.


UBS Files Blockchain Patent To Power Anonymous Markets (subscription)

Anna Irrera – Financial News

UBS has applied for a US patent for an innovation that could help participants in a blockchain-powered market remain anonymous and could, in turn, help blockchain technology win acceptance in the capital markets, where investors often want to keep their strategies private.

PLY: Anybody been watching the Ethereum/DAO hack by the way? Much more exciting than Euro-moronball – unless you are Welsh, I believe – but it has been remarkable, the Journal makes some mention today:

Bitcoin Rival Ethereum Gains Traction (subscription)

Paul Vigna – Wall Street Journal

Ether’s value has rocketed this year, but a hack shows the digital currency faces familiar pitfalls.


CME To Kick Off Long-Awaited EU Wheat Futures In September


CME Announces the Launch of EU Wheat Futures & Options


CME announced the launch of physically delivered EU Wheat futures & options on futures contracts to begin trading on 12 September 2016, pending all relevant regulatory review periods.


CFTC Proposes Measure to Keep Futures & Swaps User Collateral Safer (subscription)

Andrew Ackerman – Wall Street Journal

Clearinghouses could park such funds at the Chicago Fed rather than commercial banks.


HKEX to Work to Revise its Stock Option Position Limit Model



Eurex Clearing Enhances The Marketplace For Securities Lending Central Clearing
The securities lending business turns gradually into a centrally cleared segment.


Toronto Stock Exchange Launches TSX NAVex



Sebi Plans Checklist To Approve Listing For Commodities Futures Trade

Ram Sahgal – The Economic Times

Sebi plans to have a 13-point checklist to approve the listing and delisting of commodities from futures trading.


NSE To Levy Fee On Multi-Leg Orders In Currency Derivatives

Business Standard

The exchange will start charging for multi-leg order entry facility from August 1.


Bats Global Markets Joins FTSE Mondo Visione Exchanges Index


PLY: Logical move. Have BATS now made a BUK to replicate the index?

Career Paths

Focus Taiwan reports that Taiwan Premier Lin Chuan has appointed Shih Jun-ji as the new Chairman of Taiwan SE (TWSE).

CalPERS Board of Administration appointed Douglas Hoffner as the Pension Fund’s Interim CEO as it completes its process for a new CEO.


FESE Announces The Winner Of The Josseph De La Vega Prize 2016


FESE is delighted to announce that this year’s winners of the De la Vega Prize 2016 are Marlene D. Haas and Marius A. Zoican for their paper “Discrete or continuous trading? HFT competition and liquidity on batch auction markets”.

PLY: Marius Zoican made a fascinating speech on the topic at the splendid FESE Convention dinner in Malta.


Children Can Be Taught To Write Code With New Programming Method


Elisabeth Muhrbeck, a student at Umeå Institute of Design has, as part of her thesis work, developed a new method to teach children to program computers. The idea behind the project, named Frodi, is to create a basic understanding for technology and to provide an introduction, presented in an educational way, to writing code. The thesis was supported by Cinnober, which is represented by approximately sixty colleagues in Umeå.

PLY: We’re all for kids coding and to that end note that CME have also supported Chicago initiatives from the Irish born Coder Dojo movement chaired by my old friend, Bill Liao. Full marks to Cinnober on supporting this initiative which emerges from the rich seam of creativity which is to be found in Umea, Sweden, home also to Cinnober’s own innovation hub alongside a pulsating university town.

Financial Calendar

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.


Billionaire Chen’s Shanda Group Raises Stake In Lending Club


Chinese billionaire Chen Tianqiao has raised his stake in online lending platform Lending Club following the recent ouster of founder & CEO Renaud Laplanche. Singapore-based private investment firm Shanda Group, which is led by Chen, reported a 15.13% in Lending Club as of June 16, up from 11.7% reported on May 11, two days after Laplanche was forced out.


European Investment Bank & Funding Circle Announce Groundbreaking £100m Investment Into UK Small Businesses


Other stories

WSE Open To Cooperation With Chinese Investors


Warsaw SE and Haitong Bank have signed a cooperation agreement.

PLY: Chinese government on visit to Poland so all arms of the Polish government industrial complex were signing agreements left, right and centre.


SGX Launches Sustainability Reporting Guide & Rule



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