June 27 2016

elb2Brexit is going to continue to fascinate the parish and I know there is demand for more cut through, particularly as the mainstream media (especially in the USA) is, not to put too fine a point on it, rubbish.

Thanks for so much positive feedback on my coverage, including those noting that my pithy insights were worth the cost of an Exchange Invest Premium Subscription alone. Certainly $300 to ward off looking as ignorant as, well, mainstream media, would strike me as invaluable. There has been a consistent message to my clients for years that this risk was enormous and I know it upset many parishioners but you cannot ignore the truth to suit your book.

If you have 10 minutes to spare, I discussed the economic opportunities of Brexit with RT noting The EU Risks Mutually Assured Destruction on Friday amongst various media outings.

To understand how we got to where we are today, these are the 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

Part 7: Outcomes

Part 8: An Historic Opportunity

I had hoped to kill the topic off by now but clearly it is going to run and run. I will continue to distill the many issues (and the vast establishment scaremongering – Project Fear lives even in defeat) as the world wakes up to a Monday replete with opportunity.

Public Markets

From Patrick Young – IPO: A World Of Opportunity Awaits Europe


This is a Great Day of Opportunity for all of Europe.

PLY: We were so busy Friday I even forgot to include this earlier missive of my early AM remarks Friday, made as the ridiculous scaremongering of shellshocked linear blobsters were clogging the airwaves. Make no mistake this is the brightest Monday morning for Britain and Europe in 40 years – I know it’s foggy out right now but once that clears…

Brexit Rattles Regulators Weighing LSE-DB1 Merger

Jonathan Gould & Andreas Kroner – Reuters

German regulators contested plans for a merged DB1-LSE to be based in London following Britain’s vote to leave the EU.

PLY: ‘This merger isn’t pining for approval. This merger is no more. It has ceased to be! It has expired and gone to meet its maker!’

QV Premium: DB1-LSE Merger Brief.


Disclosure Of Total LSE Shares In Issue Pursuant To Rule 2.10



Tullett Prebon: ICAP Deal Not Impacted By Leave Vote


IHS: UK Vote Does Not Change Merger Plans With Markit


QV Premium: Exchange Deals Brief – M&As.

PLY: Only DB1:LSE is impacted as a deal by the historic Brexit. As with all ill-considered, hurried engagements, there has been a paucity of thinking through the issues. Both companies look wretchedly wrong footed by the new world order.


UK’s FCA: Statement On EU Referendum Result


FCA: Brexit Will Have Major Implications For Finance


PLY: There is a lot to discuss here and I will continue to do so during the week in Premium.


‘Brexit’ Bedevils Plan to Unify EU Capital Markets (subscription)

Ryan Tracy & Viktoria Dendrinou – Wall Street Journal

PLY: I refer you to the answer I gave some moments ago.

QV Premium: EU CMU Brief.


London’s Clearing Hub Status Under Threat (subscription)

Tim Cave – Financial News

London’s status as the major centre for clearing euro-denominated transactions is likely to come under threat after the UK voted to leave the EU, according to practitioners and market experts.

PLY: Once again more to follow on this, albeit the notion of a cut and dried protectionist EU writ in an age of digital globalism makes me wonder what some parishioners think the 1960’s were all about…


JSE To Launch New Tools To Protect Anonymous Block X Traders From Abuse

Moyagabo Maake – BDLive

JSE plans to launch a new-order functionality in September to make its anonymous platform for large block trades safer.

Private Markets

NSE Board Finally Approves Listing Of Its Shares

Sugata Ghosh – The Economic Times

After a year of frenetic lobbying by a clutch of foreign and local investors, the board of National SE has finally approved the listing of its shares.


Thai Bourse Continues Exclusive Training Program For GMS Exchanges, Underlining Its Connector Role


QV Premium: Greater Mekong Subregion Exchanges Project.


The Latest Bitcoin Hurdle: How to Tax It (subscription)

Laura Saunders – Wall Street Journal

PLY: I think the issue is more how does the government pay for its spendthrift ways as there is no appetite to mend the overspend logically?

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX up 1.5%, FTIL up nearly 3%. Clearly, as the mainstream media is keen to note, Brexit is paralysing global financial markets. Oh hold on a second…


Millennium Exchange Release 9.1 Oslo Børs



BIST & TMX Atrium Sign Network Provider Agreement


TMX’s network has been added to Borsa İstanbul Data Distribution Network.


Icap PTRI CEO: Standards Must Be Made to Usher In Smart Contracts (subscription)

Emilia David – Waters Technology

Jenny Knott says being agnostic is necessary to adapt to emerging technologies.


World Economic Forum: Blockchain A Game Changer For The Future Of Financial Transactions


PLY: Uh oh that is a really worrying sign. Once the WEF blob has got on the bandwagon, it’s a bit like any time you see 300 economists write a letter to a newspaper.


CME Expands Suite of Palm Risk Management Products


4 new contracts broaden CME’s palm offerings: USD Malaysian Crude Palm Oil Calendar futures (CPO), the USD Malaysian Palm Olein Calendar futures (OPF), the USD Malaysian Crude Palm Oil Average Price option (POO), and the Bursa Malaysia Crude Palm Oil-Gasoil Spread futures (POG).  Will be available for trading on CME Globex, for submission for clearing through CME ClearPort.


Shanghai Futures Exchange Studying Stainless Steel, Scrap Contracts


It was also consulting the industry on adjusting the specifications of its existing carbon steel contracts. Research into a stainless steel contract follows the exchange’s launch of a nickel contract in March last year.

QV Premium: China Capital Markets Transformation Brief – Main File.


TFEX Ready To Launch e-Gold In August

Nuntawun Polkuamdee – Bangkok Post

Thailand Futures Exchange (TFEX) is set to roll out e-Gold, the main feature of which is physical settlement, in August, after being pushed back from this month. The product is a substitute for the planned spot gold exchange and to draw local gold dealers to trade the metal at home after several of them traded physical gold on Singapore’s exchange.

Career Paths

Commissioner Lord Hill, responsible for Financial Stability, Financial Services and the CMU, has informed European Commission President Juncker of his decision to resign from his post as European Commissioner.

EC: Statement On The Decision Of Commissioner Lord Hill To Resign From The EC & On The Transfer Of The Financial Services Portfolio To VP Valdis Dombrovskis


PLY: Dombrovskis is a canny political operator from Latvia who can hold his own with the political classes machinating about the future/survival (delete as you deem appropriate) of Europe but he never struck me as being market literate per se. Presumably that leaves the EU to consider CMU amongst the many talented Commission staff but at the same time the worry is clearly that French led protectionist anti-finance will come through to eat alive the financial markets given the FTT already in place there and in Italy. That said, the more the EU goes in this direction the more it hastens its own decline.


Haaretz reports that Tel Aviv SE CEO Yossi Beinart has been on sick leave and is expected to step down shortly. In the meantime, Deputy CEO Gal Landau-Yaari will take his place. Beinart took over as CEO more than two and a half years ago.

PLY: I wish Yossi Beinart a full recovery and indeed hope that TASE can end its current period of decline and instability soon too.


How One Man Took On Wall Street & Won

Zoe Thomas – BBC

As David and Goliath stories go, Brad Katsuyama’s is a pretty good one.

PLY: Worrying if the BBC are championing Brad. Their recent track record of support is not exactly paved with gold, although at least they got a lot of EU geld for praising that so much the British people voted to leave…

Financial Calendar

27.06 – CFTC’s Market Risk Advisory Committee

27.06 – CME $0.60 Q2 2016 dividend payment

30.06 – ICE Q2 $0.85 dividend payment  

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

Share Notes

Mandatory Notification Of Trades – Oslo Børs VPS Holding ASA


In connection with a monthly share savings plan for employees of subsidiaries, Oslo Børs VPS Holding has sold a total of 2052 shares. New holding is 13289 shares. Employees paid a share price of NOK 84,96 per share, but were allowed a discount of 20% on purchases up to NOK 625.

Other stories

Statement Of CFTC Chairman Timothy Massad On The UK Referendum



Statement From SEC Chair Mary Jo White On U.S. Equity Markets



ESMA: Steven Maijoor Gives Speech On CCP Recovery & Resolution



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