June 28 2016

elb2In BigWorld, the Euro rioting championships have broadly subsided with a football tournament replacing it in France. England’s kickball team have been defeated by the mighty minnows of Iceland who memorably said no to EU subjugation and have rebuilt their economy themselves. Quite how a solvent non-EU member defeating one on the exit ramp can be spun as a victory by EU President Tusk exemplifies just why I will never follow football.

On Brexit, I discussed the issues for North American viewers through a Canadian lens Saturday CBC Canada. Meanwhile, you can now access my Brexit files in Premium through this contents directory: Brexit – Main File

In the parish, the ICDA CyberRisk conference in London, July 20th looks interesting on the calendar…

Public Markets

German Shareholder Group Warns on LSE, DB1 Merger After “Brexit” (subscription)

Eyk Henning – Wall Street Journal

In a fresh sign of “Brexit” fallout, Germany’s largest association of small investors has called on DB1 to cancel its planned $30 billion merger with LSE, or rework plans so the merged companies’ new headquarters wouldn’t be in London.

“DB1’s top personnel should critically re-evaluate their merger plans and massively amend or bury them,” said  Klaus Nieding, a representative of German shareholder association DSW, on Monday. Germany’s market supervisor “cannot agree to London as the location” for the new company, he said.

PLY: What is the German for “DOA?”

Some DB1 Investors Seek Better LSE Merger Terms Post Brexit

Andreas Kroner & Jonathan Gold – Reuters

Some DB1 shareholders are urging the exchanges group to seek more favorable terms in its planned merger with LSE after Britain’s vote last week to leave the EU.

PLY: “Bankhaus Lampe analyst Neil Smith said he put the chances of the merger succeeding at just 20 percent.” I think even that may be optimistic. However DB1 and LSE show their inherent management inflexibility by ploughing on.

What Next For LSE & DB1 If The Deal Fails (subscription)

Tim Cave – Financial News

After speaking to executives across the industry, here’s an FN guide to what might transpire if the deal does hit the rocks…

PLY: Wholesale change will be required from both entities.

QV Premium: DB1-LSE Merger Brief.


IHS & Markit Announce Exchange Offer & Consent Solicitation for IHS Notes


…The purpose of the Exchange Offer is to promote a more efficient capital structure following the Merger.

QV Premium: Exchange Deals Brief – M&As.


London & Shanghai Stock Link Faces Delays As CSRC Assess Changing Framework (subscription)

Daniel Ren – SCMP

CSRC will evaluate the cross-trading system in light of legal and other changes related to Brexit.

Private Markets

NSE Plans India, Overseas Listing Next Year

Santanu Chakraborty – Bloomberg

NSE will file the draft offer document with the market regulator for domestic listing by January, and by April for listing abroad.

As many as 10 investors in the exchange, including Tiger Global Five Holding, Norwest Venture Partners X FII – Mauritius and State Bank of India, have urged the bourse to speed up plans to go public. NSE had sought the regulator’s approval to list on itself. Rules issued in November by SEBI for exchange IPOs do not permit self-listing.

NSE Likely To Command A Valuation Of Rs 18,000 – Rs 19,000 crore (USD 2.65 – 2.8B)

The Economic Times

To ascribe this valuation, ETIG compiled a list of prominent exchanges that were listed in the past two decades. The compilation reveals that although listed exchanges from emerging markets like Russia, Brazil and South Africa trade at lower earnings multiples, NSE (given its profitability track record) could get valued at earnings multiple varying between 18 and 20 times.


CFTC Grants Registration to Clear Markets North America

Approved Clear Markets North America as a SEF, it previously obtained temporary registration status on May 13, 2014.


NCDEX Is No NSEL; But Its Castor Seed Episode Is A Wake-Up Call

Mobis Philipose – Livemint

When the Forward Markets Commission (FMC) regulated commodity derivatives markets, they were always perceived to be weaker in terms of regulation vis-a-vis their equity counterparts.

QV Premium: NSEL Scandal Brief – Part 16.


Fanya Metal Exchange Assets Seized, CEO In Custody

Go Kunming

A Yunnan-based Ponzi scheme that swept up tens of thousands of investors across China has finally been shut down. More than a year after shareholders first alleged criminal malfeasance by the brokerage, authorities have seized all assets belonging to the besieged Kunming Fanya Non-ferrous Metal Exchange. Over the past few weeks, investigators from the Yunnan Public Security Bureau arrested Fanya’s CEO, Shan Jiuliang, along with at least 18 other suspects. The various holdings confiscated by police included stockpiles of non-ferrous metals totaling a reported 70,000 metric tons.

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX up +5%, FTIL up 3%


ICE Launches Expanded ICE Data Services


…bringing together proprietary exchange data, valuations, analytics, desktop tools and connectivity solutions from across ICE and NYSE, Interactive Data and SuperDerivatives as part of the ongoing integration of Interactive Data, which ICE acquired in December 2015.


HKEX To Revise Criteria For Its Designated Securities Eligible For Short Selling



DGCX To Treble Single Stock Futures This Year (subscription)

Alice Attwood – FOW


Vietnam To Unveil New Stock Index VNX Allshare

Thanhnien News

The VNX Allshare is composed of 388 stocks, or half of all the stocks currently listed on Hanoi SE and Ho Chi Minh City SE. The benchmarks of the two bourses are the HNX and the Vn-Index.

Career Paths

TMX announced that John McKenzie has been named CFO, effective July 11, 2016. Mr. McKenzie has been with the company for 16 years, most recently serving as President of the Canadian Depository for Securities Limited (CDS), Canada’s equity and fixed income clearing house and a wholly-owned subsidiary of TMX Group. After joining TMX in 2000 as Director of Finance and Administration, Mr. McKenzie held increasingly senior executive positions in Corporate Strategy and Development and Finance.

BGC Partners announced that Ann Kristina Olsson will be appointed to lead BGC Partners’ Scandinavian swaps and bonds broking team.

She will be based in Nyon, Switzerland and will report to Jean-Pierre Aubin, Executive MD, Global Head of Listed Products & GM of Continental Europe.

Markets Media reports that Citadel Securities has hired Kraig Knas for its Chicago office. Knas has joined as SVP, Sales & Relationship Management in the firm’s FICC market making business. Previously, he was on the macro sales desk at Barclays, which he left in May. He will report to Angie DiCarlo, FICC Sales & Relationship Management.

Daily News Egypt reports that Assistant Sub-Governor of the Markets Sector at the Central Bank of Egypt Rami Aboul Naga was appointed as a member of the Board of Directors of the Egyptian Exchange to represent the Central Bank of Egypt. Aboul Naga will succeed Rania Al-Mashat, who will move to the IMF.

Financial Calendar

30.06 – ICE Q2 $0.85 dividend payment  

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

Other stories

Statement Of CFTC Chairman Timothy Massad Before The Market Risk Advisory Committee

CFTC: Opening Statement Of Commissioner Sharon Bowen Before The Market Risk Advisory Committee



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