June 29 2015

elb2Today in Exchange Invest:

Just in case your weekend involving being an analogue hermit, Greece has called a referendum they probably cannot afford to administer to discuss the ultimate binary option: debt servitude and economic destruction or merely the vast panic of dislocation followed by…uh oh, maybe a void, as investors will be wary of Syriza? Interesting times, the EU may never be the same again.

Elsewhere, DB1 going acquisitive? Hong Kong regulator seeking to take over SRO power from HKEx? ESMA Standing Committees, Prague Telco bust-up and more, happy scrolling:

Public Markets

Greek Banks & Stock Exchange In Shutdown

Athens SE announcement here.

Hellenic Capital Market Commission announcement here.

PLY: Hopefully, the only way is up for Greece, albeit after a likely dizzying downward spiral as the New Drachma is introduced. Expect, a week of hyperactive EU Agitprop and pressure as Brussels grasps for influence. I vented my spleen on the sheer waste of time and money here.

NB In our parish, any major restructuring of debt ought to be good news for the exchange as they stand to get a million dollar fee for their efforts…

Oh and for those who might like to add to the volume trickle at SIBEX in Romania, they are open with ATHEXClear still functioning as this is outside Greece.

DB1 In Talks To Take Control Of STOXX

DB1 is in talks to acquire the shares it doesn’t already own in two JV securities-indexing companies, STOXX AG and Indexium AG where DB1 owns DB1 owns 50.1% & 49.9% respectively, having offered  CHF650 million ($611 million) for the stakes.

PLY: Will SiX play harder ball this time? After all they let DB1 take the EUREX cash cow without inserting a reversion clause when the NYSE merger collapsed after Duncan Niederauer meeting Socialist EU Competition Commissioner Almunia allegedly made Greece – Troika negotiations look like a kindergarten dispute.

Meanwhile, on 360T, CME, DB1 & NASDAQ reported bidders. Price still being touted at “more than 600 million euros ($672 million).”

Press release here.

In Premium Index Companies Deals Brief, Exchange Deals Brief, 360T Deal Brief.

FTIL Floats EoI To Sell 23% Stake In MCX-SX CCL
The Economic Times

Bids along with a minimum price per share of not less than Rs 10 apiece by September 22 this year.

CERC To FTIL: Put IEX Shares In Trust
Times Of India

The Central Electricity Regulatory Commission (CERC) has ordered FTIL to transfer by July 2 its entire 26.6% shareholding in the Indian Energy Exchange (IEX) to a separate trust demat account created by the electricity bourse.

Recently FTIL signed a new agreement to sell 16.6% of IEX.

Read our Premium FTIL Stakes Sales Brief.

Kotak Mahindra Bank Likely On MCX Search Panel
The Economic Times

Kotak Mahindra Bank, which owns 15% in MCX, might have representation on the MD/CEO selection committee (although the Kotak group was restrained by regulator FMC from having a nominee on the MCX board as Kotak Commodities trades on MCX).

NY Bank Watchdog Sinks Teeth Into Isdafix Rigging (subscription)
Gina Chon – Financial Times

New York’s banking regulator, the Department of Financial Services investigation into the so-called Isdafix benchmark is in its early stages and has not yet honed in on particular banks.

Hong Kong SFC Should Do Appraisals For Stock Exchange Listing Staff (subscription)
Enoch Yiu – SCMP

PLY: After coming out against “one shareholder, one vote” three days ahead of last week’s board meeting(!), HK SFC is now pondering whether to take on some of the HKEx’s SRO responsibility…

Shenzhen-HK Equities Connection Awaits Chinese Cabinet Nod

Read our Premium HKEx – SZSE Stock Connect Brief.

Euronext To Seize “Indispensable” Opportunities Of China
Global Post

Euronext will seize the “indispensable ” and “incredible” opportunities of China, the head of Markets and Global Sales of Euronext Lee Hodgkinson said in a recent interview with Xinhua.

PLY: The indispensable Lee Hodgkinson is right to seek opportunity in China for the rejuvenated Euronext.

MILA Bourses Plan To Allow IPOs In Member’s Stock Markets

MILA = Chile, Colombia, Peru and Mexico, qv our Premium MILA Exchanges Brief.

Handing Over A More Diversified SGX
Goh Eng Yeow – AsiaOne

Interview with outgoing CEO Magnus Bocker, QV our earlier Premium Magnus Bocker – SGX Reflections.

Private Markets

BSE Starts Work On Setting Up Global Stock Exchange
The Hindu Business Line

BSE in GIFT with DB1 support…albeit my concern would remain the way the

Read our Premium India – GIFT Exchanges Brief.

Data Deals Signal Way Ahead For Vienna SE (subscription)
Henry Foy – Financial Times

PLY: I do like Michael Buhl, a charming raconteur but it is increasingly challenging to believe his public utterances. This article elucidates an approach Vienna have been playing with for years. Now it is their latest spin tool to breathe a notion of value into an exchange group which needs radical surgery while Austrian bank shareholders also need a radical capital infusion.

Read in Premium: CEESEG Stakes Sales Brief, WSE – Wiener Borse Failed Merger Brief – Part 1, Part 2, Part 3

O2 Czech Republic Seeks Probe Into Prague SE CEO’s Comments

O2 Czech Republic has expressed concern about what it calls unfounded and misleading statements by Prague SE boss, Petr Koblic. O2 has submitted a filing to the Czech National Bank, requesting an investigation into whether Koblic’s statement had any effect on O2’s share price on the stock market and whether the statements were in line with his position.

At the same time, O2 is seeking an investigation into potential manipulation of the share prices, with regard to an inappropriately low price of the shares in O2 before the division of the company.

Treatment Of O2 Minority Shareholders Sparks Criticism
Chris Johnstone – Radio Praha

Petr Koblic protested on June 12 in Hospodářské Noviny (see article here) that PPF’s buyout bid to remaining O2 shareholders last year was so administratively complicated that many could not take it up. Since then, under PPF management and ongoing complaints about the company’s disclosure of information about future dividends and the division of past debt burdens, the shares have dropped sharply. Suspicion has soared that PPF has been fostering the conditions for smaller shareholders to cut their losses and ship out or for it to launch a cut price buyout.

PLY: Given the recent shenanigans on the Slovakian Exchange where Deutsche Telekom made the government pull a de facto completed IPO, this issue raises considerable questions about the activities of telcos on emerging markets and whether or not government needs to clamp down on their methods…

Read in Premium: Slovak Telecom – A Market Failure.

Jamaica SE To Facilitate Foreign Share Trading With Depository Receipt Market
Avia Collinder – Jamaica Gleaner

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX off 3%, FTIL -2.5%.


Nasdaq Launches Index Calculation System For Marketplaces

PLY: A specialist SaaS rendering from NASDAQ – very interesting!

US Markets Will Be Affected By ‘Leap Second’
Ed Zwirn – NY Post

PLY: Stand by to miss the event beneath the human radar tomorrow. Previous discussions re. ‘leap second” here.

HFT Firm Tibra Settles With KCG Over Alleged Code Theft (subscription)
Financial News


Shanghai-Hong Kong Gold Market Connect Set For July 10 Launch
Want China Times

China To Launch First Crude Futures Contract No Sooner Than Sep

Read our Premium China Capital Markets Transformation Brief – Main File.

Euronext Launches Wood Pellet Contract

Autumn 2015, physically-settled contract targeting the residential heating sector.

LBMA Grants TOCOM Licence To Use Good Delivery List

The Good Delivery List is a register of approved refiners whose assaying and refining capabilities meet the required standard for acceptability on the London bullion market.

TOCOM press release here.

PLY: No word from LBMA about making that EY paper public incidentally after the curious remarks that their users deem CCP clearing expensive.

NCDEX To Add Three More Delivery Centres For ‘Gold Now’
Business Standard

Ahmedabad, Chennai, Delhi.


MSCI Says China Faces Complex Process To Join Index (subscription)
Mia Lamar – Wall Street Journal

Career Paths

HKEx welcomes the Government’s appointments of Lawrence Lam Yuk Kun and Barbara Shiu as members of HKEx’s Risk Management Committee (statutory) (RMC) for 2 year  term with effect from 1 July 2015 with the RMC comprising:

CHOW Chung Kong (Chairman)
CHAN Tze Ching, Ignatius
LAM Yuk Kun, Lawrence
LEE Tat Chi, Howard
LEUNG KO May Yee, Margaret
LUI Kei Kwong, Keith
SHIU Barbara
TAN Siew Boi, May

The Board of Supervisors of ESMA appointed standing committee Chairmen:

Review Panel: Lourdes Centeno, Vice Chairman (CNMV), Spain;
Corporate Reporting: Hannelore Lausch, Executive Director, (BaFin);
Market Data: David Lawton, Director Markets Policy & International Division FCA;
Secondary Markets: Elizabeth Roegele, Chief Executive Director, Securities Supervision (BaFin), Germany;
Financial Innovation: Jean-Paul Servais, Chairman FSMA, Belgium;
Investor Protection and Intermediaries: Martin Wheatley, CEO FCA, UK,

PLY: The position of Martin Wheatley may well explain his recent lurches to endorse investor protection…

The following chairs have had their tenures renewed:

Market Integrity: Konstantinos Botopoulos, Chairman HCMC, Greece;
Investment Management: Gareth Murphy, Director of Markets, Central Bank of Ireland;

Corporate Finance: Gerard Rameix, Chairman AMF, France;
Post-Trading: Giuseppe Vegas, Chairman CONSOB, Italy.

Financial Calendar

This week

ICE $0.75 Q2 2015 dividend payment – June 30

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

Analyst Notes

Zacks Upgraded ICE From “Sell” To “Hold”

NASDAQ OMX “Buy” Rating Reissued By Deutsche Bank – $56.00 Price Objective, Down From $57.00

A full table of current analysis can be found on our Analyst Ratings page which is updated daily.

All Analysts, Banks and Brokers are welcome to contribute to this section.

Other stories

Pick-&-Mix Rules Divide Exchanges (subscription)
Financial News

PLY: Those without CCP hail it a great move for investor choice, those with, regard it as a dangerous step. I’m all in favour of CCP being about mitigating danger and until I see any practical plan, these are dubiously dangerous times for European exceptionalism, particularly given the economic chaos already wrought by an ineffectual Brussels political hierarchy.

Latest HKEx CEO Charles Li Direct: The Paths To China’s Full Liberalisation

Read our Premium China Liberalises.

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