JUNE 27 2017

Welcome to Exchange Invest Issue 1024 which coincides with the year where Pope John XIX succeeded Pope Benedict VIII (his brother), as the 144th pope and the world’s first paper-printed money, originated in the Sichuan province of China…a mere few thousand years after the first exchanges were created, I hasten to add.

Euro Clearing Essentials

1) Prosperity UK Panel – Brexit, Euro Clearing & Financial Market Structure: panel with Barney Reynolds, Jeff Sprecher, Michael Spencer and one Patrick L Young lurking in the background.

2) My CapX article explaining The EU’s Euro Clearing Plan Is An Act Of Protectionist Self-Harm.

In Today’s Exchange Invest

New Chairman for Warsaw Exchange, SPIMEX Chairman resigns perhaps helping a foreign GCM sign up, as Shanghai Gold Exchange looks to partner with Budapest for futures.

And there’s more, happy scrolling:

In BigWorld

Takata hits the bankruptcy wall. No news yet on whether its airbags inflated to reduce the impact.

Public Markets

CBOE Holdings Announces Pricing Of Senior Notes Offering

PLY: $300 million 1.950% Senior Notes due 2019; to repay long term debt. Frankly at that interest rate and QE perhaps ending at last, a boot filling of debt would make sense for all corporates able to borrow at this rate.

CME Group Inc. Announces Second-Quarter 2017 Earnings Release, Conference Call

PLY: August 1st, coincides neatly with half of western Europe being on holiday.

Hong Kong Market Is Caught Between Two Worlds

London Stock Exchange Group Plc Transaction In Own Shares

B3: Companies Approve Novo Mercado Regulation

Doors Open For HK Stock Brokers To Enter The Fund Management Fray
South China Morning Post

PLY: Sensible move, albeit I cannot fathom why they didn’t permit this years earlier as a quid pro quo to wean the HK brokers of their outmoded reliance on fixed commissions?

Around 100 Boutique Investment Brokers May Shut Down If Market Conditions Persist: Association
Financial Post

PLY: Worrying news of a malaise in Canada, presumably stymied by poor commodity prices.

NZX Signals Days Are Numbered For Nxt Small Cap Experiment
The National Business Review

NZX is likely to consolidate its three equity markets onto a single board after its smaller cap markets failed to find support.

Virtu Prepares For Mifid Shake-Up With Instinet Equities Deal

Banks’ Blockchain Consortium Picks IBM For Trade Finance Platform

PLY: Under the banner “Digital Trade Chain Consortium” – at least that won’t fuel any confusion with incumbent acronyms.

Private Markets

Probe Into Allegations Against NSE For ‘Favouring Clients’ Turning Out To Be A Farcical Drama
Economic Times
The initial public offer of the National Stock Exchange ( NSE ) has gone into an indefinite limbo…

Goldman Sachs Writes Down Stake In CMC Markets
SMN Weekly (blog)

Trading 212 Hits The Headlines With No-Commission Physical Equities – But…
FinanceFeeds (blog)

“There is chatter here in the City that they’re padding the spreads. Their homepage shows Amazon trading at a $2.80 spread whereas other UK brokers have it as $1 for the physical” said one trader in the City.

PLY: Concerns about the Bulgarian broker whose commission free equities trading got the general media all breathless last week – which gives a good perspective on legacy media consideration of issues…

Special Section: FTI, NSEL, India at the Crossroads

No news today.


TP ICAP Invests In New Fintech Start-Up Liquiditychain


Shanghai Gold Exchange To Offer Yuan-Back Futures Contract In Budapest

PLY: Exciting news for Budapest SE if this works…

Barclays And Time Inc. Announce Exclusive Agreement To Launch New Family Of Barclays Indices Based On The FORTUNE 500 – The Index Family Taps Into FORTUNE’s Annual List Of The Largest U.S. Corporations Ranked By Revenue

PLY: Strikes me as legacy media desperation if they are expecting the Barclays brand to add lustre?

Career Paths

Rosneft’s Sechin Quits Board Of Russian Commodity Exchange Spimex

SPIMEX Chairman Igor Sechin, the head of Russia’s largest oil producer Rosneft, quit the board of the St Petersburg International Mercantile…. International banks might now be more willing to handle clearing for SPIMEX after the departure of Sechin, the most influential executive in Russia’s energy industry that is under Western sanctions over Moscow’s role in the Ukraine crisis.

PLY: Over in Warsaw, the new GPW board has elected Wojciech Nagel Elected Chairman of the Exchange Supervisory Board. Good luck to him both helping move GPW ahead and indeed, given the volatility of Poland’s state controlled stock exchange, maintaining his position for a meaningful period of time.

Jakub Modrzejewski has been elected Deputy Chairman while Krzysztof Kaczmarczyk has been appointed Secretary and the committees are as follows:

1. Audit: Krzysztof Kaczmarczyk – Chairman, Bogusław Bartczak, Filip Paszke, Piotr Prażmo.

2. Remuneration & Nominations: Wojciech Nagel – Chairman, Jakub Modrzejewski, Piotr Prażmo.

3. Strategy: Bogusław Bartczak – Chairman, Wojciech Nagel, Filip Paszke.

4. Regulation & Corporate Governance: Krzysztof Kaczmarczyk – Chairman, Jakub Modrzejewski, Filip Paszke.

Again good luck to all parties, it would be great to see GPW back on a path to coherent growth.


Charleston-Based Blackbaud Moves Into Crowdfunding With Its Biggest Acquisition In Years
Charleston Post Courier

Blackbaud is moving into the crowdfunding market with the acquisition of UK platform “JustGiving” worth 95 million pounds, or nearly $121 million.

Is There Liquidity For Crowdfunding Investments?
What Investment

Other Stories

State Aid: European Commission Approves Aid For Market Exit Of Banca Popolare Di Vicenza And Veneto Banca Under Italian Insolvency Law, Involving Sale Of Some Parts To Intesa Sanpaolo

PLY: Just think soon your funds could be co-mingled in mainland Europe with the fine institutions of Italian banking if Euro clearing protectionism goes as some politicians desire…

Ex-Barclays Chief Says Banking Could Face Its Own ‘Kodak Moment’; Urges Banks To Embrace Fintech …

PLY: To be clear, Antony Jenkins is a former CEO of Barclays who has not (yet?) been accused of any major crime. Here he tries to catch up with the zeitgeist. To be fair, he is only 20 years late but by Barclays standards some might argue a material improvement in management thinking latency.

Former Paris Stock Exchange To Be Reborn As Major New Art Museum
The Guardian

PLY: Pinault Foundation to repurpose the former grain silo of the Bourse de Commerce (a fabulous round tower not to be confused with the Palais Brongniart which is one arrondissement to the right…
Back to hand to hand combat with the Maltese heat wave for me…already over 30 degrees and it’s not even July yet.

Tomorrow you can catch me at the Microsoft Innovation Centre discussing many elements of innovation – all welcome at the PKF Malta event, Exchange Invest may appear at a slightly odd hour depending on how the schedule works out!


Patrick L Young
Executive Director DV Advisors

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