June 23 2016

elb2The UK votes today on Brexit, a chance to lead the EU to reform, or its own dismantling. Whatever the actual vote outcome, the biggest loser is clearly the EU itself, and the current (probably short lived) British government. I have made my views clearly felt as I believe is important in a democratic debate. The tricky bit is the Brussels blob is, at best, hazy about democracy. However, having searched long and hard for a last word which is less divisive as we look to move forward after the vote is announced, the words of Alison Pearson made me laugh out loud the other day:

“Project Fear was like an extended episode of Scooby-Doo in which mild-mannered economists donned ghoulish masks and jumped out of cupboards with a maniacal laugh. It started to backfire when the daily warnings of apocalypse became a national joke.”

Will David Cameron and Jean-Claude Juncker be unmasked sometime tomorrow while trussed together with the Scooby-traditional broad gauge rope and complain that “everything would have been fine if it hadn’t been for you kids?”

I have added an “Outcomes” section to the now rather comprehensive Premium Brexit brief. Sometime, perhaps even as soon as tomorrow, we can get back to parish business.

Brexit Premium briefs:

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

Part 6: A Vote For Europe’s Future

Added Today: Part 7: Outcomes

All are written with an entrepreneurial investors’ eye.

For those who believe in lucky 7’s today is the day for Exchange Invest: it’s Issue 777…

Public Markets

DB1-LSE Merger Backed by Influential Advisers to Shareholders (subscription)

Eyk Henning – Wall Street Journal

The proposed $30 billion merger has won backing from two influential shareholder-advisory services, Institutional Shareholder Services Inc. and Glass Lewis, even if Britain votes to exit the EU.

PLY: ISS and Glass Lewis recommended the ill-fated NYSE-DB1 deal too, so draw your own conclusions…

LSE-DB1 Hangs Over Brexit Precipice

George Hay – Reuters

Activist Investor Artisan Takes Stake In DB1


Artisan Partners has taken a 3.03% stake in DB1. Another activist hedge fund, TCI, is backing plans for a merger of DB1 & LSE.

QV Premium: DB1-LSE Merger Brief & Exchange Deals Brief – Stake Changes.


Amendment Of The Agenda Of The Ordinary General Meeting of WSE


On 22 June 2016 the WSE Ordinary General Meeting (OGM), after consideration of point 15 of the agenda (Election of the President & VP of the Exchange Court), adopted a resolution on the adjournment of proceedings of the OGM. The adjourned OGM will resume its proceedings on 21 July 2016.

PLY: GPW could do with better communicating what is going on. Nowadays anything which happens is viewed, sadly (tragically) with suspicion from Poland and its state controlled economic vehicles.


Nasdaq ‘Assessing Options’ Following IEX Decision

Hayley McDowell – The Trade

PLY: Clearly there is an option of legal action against SEC although that might be a bit like prodding a hornet’s nest with a stick.


HKEX To Begin Shenzhen Connect Broker Tests On June 27


PLY: Testing ongoing while regulatory approval awaited from both ends of the latest through train.

QV Premium: HKEx – SZSE Stock Connect.


Chinese Depositary Receipts Could Be Tool To Accelerate Shanghai-London Trading Link (subscription)

Xie Yu – SCMP

As time difference, capital flow and settlement issues prove stumbling blocks to the planned scheme, experts say CDRs might help manage volumes.

FAO: Shanghai & London started discussions on a link-up last year. GDRs to be launched (discussed in April) initially in order to test market reaction.


IEX May Not Alter Landscape Much, Securities Attorney Says

John D’Antona – Markets Media

Chris Greeley, partner at Herrick, Feinstein, said that the addition of IEX to the exchange roster won’t change the trading landscape definitively as the firm’s proponents say it will.


Data Helps Salvage Value From ‘Bad’ Dark Pools

Rob Daly – Markets Media

Despite some perception to the contrary, there is no such thing as a ‘bad’ dark pool.

PLY: However one could note that there is very clearly such a thing as a universal “bad dark pool perception” and in many ways that is enough to make me wonder why block venues don’t want to differentiate their position as “Institutional Liquidity Pools.”

Private Markets

BSE Warns Against Unauthorised Offers For Its Unlisted Shares

The Economic Times

Ahead of its proposed IPO, BSE warned investors against unauthorised offers to purchase or deal in the shares of the exchange that are unlisted currently.

BSE is expected to file IPO papers with market regulator Sebi next month to mop-up Rs 800 crore (USD 118m).


Plans Floated For New Stock Exchange

Richard Frost – Insider Media

A Liverpool and Wirral Stock Exchange could soon be established to connect investors with socially responsible local firms that are looking to grow and expand. The project will initially run as a 12-month pilot as a regional offshoot of the national Social Stock Exchange with a view to creating a permanent presence in the area.

PLY: Interesting stuff as Tomas Carruthers’ platform expands, good to see him at the FESE Convention last week.


New Exchange: A Paradigm Change on the Wall Street?

Sucheta Dalal – Moneylife

In the past 25 years, capital markets around the world have been fully institutionalised…In the US, Wall Street’s dominance has gone beyond ‘regulatory capture’. It is accused of controlling the government itself.


Indonesia SE (IDX) Wants to Be ASEAN’s Biggest by 2020

Indonesia Investments

QV Premium: ASEAN Exchanges Project Brief.


Japan Electric Power Exchange & EPEX SPOT To Cooperate On Multi-Market Product Design


Dividend News

WSE: 2015 dividend of PLN 2.36 – record 20 July 2016,  payment date 4 August 2016.

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX flat, FTIL of 1.5%.


Osaka Exchange: Go-Live Date of Next Generation Derivatives Trading System (Next J-GATE)


Next J-GATE Go-Live Date – July 19, 2016.


MOEX Completes First Stage Of Migration To New Data Centre


DataSpace1 will be used as a disaster recovery (DR) site for the Exchange’s trading and clearing platforms from 23 July 2016 through the end of November 2016, at which time it will become the primary data centre for MOEX.


NICE & Speakerbus Announce Strategic Technology Partnership



SEBI Eases Currency Derivatives Rules


SEBI relaxed currency derivatives rules on Wednesday, allowing participants to continue to hold on to their open position limits even if total open interest in a currency pair falls at a stock exchange.


IPC Systems Launches Connexus Cloud


Career Paths

The Warsaw SE Ordinary General Meeting (OGM) on 22 June 2016 recalled Mr. Wojciech Nagel from the Supervisory Board of the WSE. Simultaneously the OGM appointed Mr. Jarosław Dominiak and Dr. Marek Dietl to the Exchange Supervisory Board.

PLY: Clearly government loyalty is a key with the Balkanised Polish political system regardless of the party in power but Jaroslaw Dominiak demonstrates a coherent longstanding interest in retail stock issues which is important in a market where retail has played an active role traditionally (and, whisper it softly: where foreign buy side investors nowadays tread cautiously after the previous government essentially confiscated half the private pension fund assets).


New York’s Top Finance Regulator Is No ‘Clint Eastwood’ (subscription)

Financial Times

Department of Financial Services superintendent softens plans to criminalise executives.


A Rogue Trader’s View: Nick Leeson On Tackling Misconduct (subscription)

Lucy McNulty – Financial News

Nick Leeson is the self-proclaimed “original rogue trader” whose fraudulent activities as a derivatives trader in the mid-1990s caused the collapse of his employer Barings Bank.

Financial Calendar

24.06 – Nasdaq $0.32 quarterly dividend payment

New! 28.07 – Thomson Reuters Q2 2016 Results – press release

New! 29.07 – CBOE Q2 2016 Results – press release

All forthcoming exchange / investment related events are now listed in our Events page.

Other stories

TABB Group: MiFID II Compliance Relies On Ability To Source & Utilize Accurate Data



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