June 30 2015

elb2

Today in Exchange Invest:

 

It’s leap second day watch time lurch forward at 2000 EST (I expect to sleep through it – yip, story of my life). NASDAQ energy market a go for July 24, CFTC goes extraterritorial on swaps trades, BlackRock to use ‘through train.’ South China Morning Post warns on dual share listing and sell side worries about CMU eating their lunch, oh sorry, being too much regulation, as tempers rise about the lack of IPO route for India’s exchanges as the blob smothers growth. And there’s more, happy scrolling…

 

Public Markets

CFTC Proposes Narrowing Wall Street’s Foreign Swaps Loophole

Silla Brush – Bloomberg

CFTC Issues Proposed Rule On Cross-Border Margin

CFTC

CFTC Commissioners voted unanimously Monday took a step toward preventing Wall Street banks from evading the Dodd-Frank Act and shifting some of their trading overseas.

PLY: The supranational imperative – having broadly failed elsewhere geopolitically, is clearly aforethought in the minds of overambitious regulators.

Nasdaq’s Battle With Energy Market Giants Begins On July 24

Brian Louis – Bloomberg

Nasdaq’s market (announced here) for futures and options on oil, natural gas and U.S. power contracts will open on July 24. The exchange wants to win business away from CME and ICE by undercutting them on price.

ICE, CME & Where Exchanges Are Headed Next

John Lippert – Bloomberg

PLY: A cartoon which adds nothing to the knowledge base of exchanges and in many cases is so erratically edited (and so US centric) as to be embarrassing. Nice idea, but incoherently executed.

BlackRock To Start Using Shanghai-Hong Kong Exchange Link

Eduard Gismatullin – Bloomberg

PLY: A big buyside fillip for ‘through train:’ “BlackRock’s Hong Kong-domiciled China A-Shares Fund plans to invest part of an initial $60 million via the connect after a round of successful tests.”

Read our Premium HKEx – SSE – Stock Connect Brief Part 4.

Hong Kong Regulators Must Maintain High Standards For IPOs (subscription)

SCMP

PLY: The Editorial Page of the illustrious SCMP comes out against dual share classes with sound reasoning. See previous discussions here and here.

Listing Of Stock Exchanges: India’s Policy Stance Gets Rightly Slammed

Mobis Philipose – Livemint

It’s over three years since Sebi notified new rules permitting listing of stock exchanges. BSE has tried its utmost to list since then, but to no avail. It’s natural that its investors are getting impatient.

PLY: Tempers are understandably flaring as SEBI makes itself look laughably inept with a kitchen sink approach to stopping exchange IPOs which only demonstrates its inherent anti-market position – surely a conflict of interest position for a regulator of financial markets?

Mobis Philipose rightly aims a broadside at a rather empty goal left by the political-regulatory nexus being absent from the pitch. Is India in the global market for capital? Currently I am unconvinced.

Sellside Wants Regulatory Pause Button Amid CMU Push (subscription)

Financial News

PLY: This would be the sell-side viewing CMU and seeing a lot of moves to enable greater use of practices such as crowdfunding which disintermediate their divine right stance on adding 2 basis points or more, to everything exchanges do for pennies…

Read our Premium EU CMU Brief.

China Construction Bank & Euroclear Sign MoU To Foster Offshore RMB Growth

MondoVisione

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

Private Markets

Baltic Exchange Ship Futures Platform Examines Move Into Commodities

Jonathan Saul – Reuters

Baltic Exchange is also open to proposals on tie-ups as other exchanges attempt to boost volumes. Baltex was launched in 2011 as the first central electronic marketplace for FFAs.

PLY: So the Baltic is inching closer to commodity exchanges as CLTX, for one, inches closer to their core market. Interesting – the Baltic has considerable optionality methinks but it needs to be nimble…

Privatisation Is Key To Revival Of TASE

Reuters

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX and FTIL flat.

Technology

MOEX Experienced Problems With Derivatives Market Data

Maria Nikolova – LeapRate

Monday, from 12:28 to 12:32 (Moscow time), transmission of market data on derivatives was interrupted.

DB1 & Irish SE Expand IT CoOperation

MondoVisione

Deutsche Börse Market Data + Services is taking over the hosting of the Irish SE’s new trading surveillance system. DB1 will host the hardware on its premises in Frankfurt and provide support services. The surveillance system further enhances the electronic market surveillance capabilities of the Dublin-based exchange.

PLY: A handy fillip for DB1, a useful incremental move for Dublin’s surveillance.

Object Trading To Provide Global Trading Infrastructure For TradingScreen Clients

bobsguide

Wall Street Is Watching For The Imminent Leap Second

Stephanie Yang – Wall Street Journal

Previous discussions here and here.

Products

Credit Swaps Reform Focuses On Roll Dates (subscription)

Joe Rennison – Financial Times

A tentative agreement on overhauling the workings of credit derivatives on specific companies beckons…

Career Paths

NASDAQ OMX Nordic appointed Anne Broeng and Glenn Söderholm as non-executive members of the Board. Anne Broeng has close to 30 years of experience in the financial service industry as Executive Director, and CIO. In addition to this she has served as CFO of the largest life insurance company in Denmark. Glenn Söderholm is a member of the Executive Board and head of Corporates & Institutions at Danske Bank. He has more than 25 years of experience from the financial sector.

Virtu Financial named Stephen Cavoli, former MD in Morgan Stanley’s electronic trading group, as SVP.

FMC Approves Panel Members For Selection Of MCX MD & CEO

Rajesh Bhayani  – Business Standard

The panel includes Arun Nanda and S K Mitra, both high profile new entrants on the board and two other shareholder directors. Chairman of the board Satyanand Mishra has also been asked by the regulator to be on the selection panel.

The post of MD & CEO of MCX has been vacant for 14 months.

Financial Calendar

Today

ICE $0.75 Q2 2015 dividend payment

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

Other stories

‘Brexit’ Would Be Disaster For UK Financial Sector

Huw Jones – Reuters

TheCityUK’s EU Reform Agenda: Detailed Proposals For A Competitive Europe

MondoVisione

A British exit from the EU would be disastrous for the UK financial industry and could prompt companies to leave the country, TheCityUK said on Tuesday.

PLY: That would be a UK government backed shilling organisation for the EU worried about their jobs then, would it? The sheer incapacity of anybody to analyse the EU in a nonlinear fashion brings shame on the entire EU debate currently. This daft analysis doesn’t improve matters. At least the guy doing the cartoon on exchanges isn’t claiming to be an expert.

Statement Of CFTC Chairman Timothy G. Massad On Cross Border Margin

MondoVisione

Statement Of CFTC Commissioner J. Christopher Giancarlo On The Proposed Rule On The Cross-Border Application Of The Margin Requirements

MondoVisione

Concurring Statement Of CFTC Commissioner Sharon Y. Bowen On Cross Border Margin

MondoVisione

Statement Of CFTC Commissioner Mark P. Wetjen On The Proposed On Cross Border Margin

MondoVisione

Statement Regarding Proposals To Shorten The Trade Settlement Cycle – SEC Commissioner Michael S. Piwowar & SEC Commissioner Kara M. Stein, June 29, 2015

MondoVisione

PLY: Remember this is only about getting to T+2…

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