March 01 2016

elb2That coyote ugly deal just got uglier. This time it’s bear pit ugly where the investment banker C-suite are poised to learn a few management lessons.

Yip, ICE are pondering a bid which rates a Be Careful What You Wish For in EI Premium. To be read alongside the existing coverage such as: A Simple Numerical Progression & Xavier: Where Did It All Go Wrong? More will follow… Only $300 separates you from turning ignorance into insight for an individual annual licence. Email for payment options.

Public Markets

Tullett Prebon 2015 Results

Tullett Prebon

vs 2014: revenue £796.0m ($1.1 bln), up 13%, profit before tax £93.7m ($130m), up 8%. ICAP’s global hybrid voice broking and information business (IGBB) deal expected to be completed in 2016.

PLY: Very encouraging results ahead of the arrival of the ICAP hordes which will make or break the management reputation of CEO John Phizackerley.

 

ICE Said to Explore Bid for LSE to Thwart DB1

Matthew Monks, Aaron Kirchfeld & Manuel Baigorri – Bloomberg

ICE is exploring a counter bid for LSE, attempting to scuttle a planned merger with DB1.

ICE is working with advisers including Morgan Stanley.

PLY: “Be Careful What You Wish For is my only statement for free. If you aren’t in the Premium elite, I am sure you already appreciate how much you get for free daily herein. If you want to upgrade, hit the reply button & we’ll invoice you individually or across your company forthwith.

UK’s CMA Considering Whether ICE’s Acquisition Of Trayport Hurt Competition

Reuters

ICE completed its acquisition of Trayport from BGC Partners & GFI for approx $650 million, approx 2.5 million ICE common shares in December last year.

PLY: Interesting insofar as this may have ramifications for ICE (I doubt it will end up thus given the strong position of EEX for instance) but it is a harbinger of the great waste of time which will be trying to acquire LCH.Clearnet by one of the monopolists.

 

BM&FBovespa Steps Up Cetip Deal Pressure With Shareholder Letter

Reuters

BM&FBovespa stepped up its campaign to win over rival clearinghouse Cetip, saying a deal would improve services and create savings of tens of billions of reais. Latest bid is 41 reais per share, valuing Cetip at about 10.86 billion reais ($2.7 billion).

PLY: Heated debate and I suspect a deal may be close but probably a closing sweetener is required.

 

IEX Amends Exchange Plans In Bid To Win U.S. Regulatory Approval

John McCrank – Reuters

IEX amended its exchange application to address a practice that critics have said would give it an unfair speed advantage.

PLY: All outgoing orders from IEX to traverse the speed bump – which kills objections stone dead – not sure it was required given a holistic reading of US regs but clearly better to get the application through than bicker endlessly with the reactionary tyrants seeking to stop IEX. To which end, reluctance & petulance from Citadel who are as graceless as they appear to be profitable: “”However, their application should still be denied,” Jamil Nazarali, head of execution services at Citadel Securities, said in a statement.”

 

Kazakhstan Invites HKEx To Become ‘Stakeholder’ In New Stock Exchange (subscription)

Eric Ng – SCMP

Kazakhstan is seeking to cooperate with HKEx, including a possible tie up that would involve an ownership stake in a new stock exchange planned for the nation’s capital.

PLY: Very interesting development for Kazakhstan & HKEx.

 

India – Foreign Companies Can Hike Stake In Local Exchanges

Moneycontrol

MCX rose 8% intraday Monday. Finance Minister Arun Jaitley announced that the foreign companies can increase stake in local stock exchanges to 15% from 5%.

PLY: I realise this is all overshadowed by a rumoured ICE bid at the head of the parish but the Indian government came out with a very interesting budget. Not perfect but broadly pro market, pro investor (also pro GIFT) albeit with some wrinkles:

India – Brokers Disappointed Over Hike In STT

Business Standard

Finance Minister Arun Jaitley has increased STT on sale of stock options from 0.017% to 0.05%. He also proposed a 10% additional dividend distribution tax on individuals, Hindu Undivided Families (HUFs) and firms receiving dividend in excess of Rs 10 lakh ($15k) per annum.

 

LME To Explore Capping Warehouse Charges

Pratima Desai – Reuters

LME confirmed its intention to explore the idea of capping warehouse rent because the proposed rises from April are much higher than in previous years.

Private Markets

KRX Seeks Share Trading Through Blockchain

Nam Hyun-woo – Korea Times

Korea Exchange (KRX) has begun “preliminary steps” to introduce the new platform linking sellers and buyers to trade securities directly.

 

Cambodian Bourse Signs Deals With HNX & LSX

Xinhua

Cambodia Securities Exchange (CSX) has reached MoUs with Hanoi SE (HNX) and Lao Securities Exchange (LSX). QV Premium: Greater Mekong Subregion Exchanges Project.

Dividend News

Tullett Prebon recommended an unchanged final dividend of 11.25p, making the total dividend for the year 16.85p, unchanged from that paid for 2014. Final dividend payment date 19 May 2016, record date 29 April 2016.

Special Section: FTI, NSEL, India at the Crossroads

PLY: Flat to small up at MCX and FTIL.

Technology

Nasdaq Selected to Support ASX in Post-Trade Technology Overhaul

Nasdaq

Nasdaq will replace ASX’s existing equities & equity options clearing technology platforms with Nasdaq’s Genium INET Clearing platform, which is already in use at ASX for futures clearing. The first component of Sentinel Risk Manager, in post-trade risk management is now in operation.

PLY: Of course Elmer says it will all be Blockchain soon enough… At the same time, NASDAQ it will be recalled lost out on the front end trading to Cinnober a year ago. Hence this decision is interesting insofar as the NASDAQ tech solution has an advantage of being a legacy element in ASX & NASDAQ was clearly rattled by losing the front end to Cinnober last year. Was there a kitchen sink of discounts to stay in the game? Or do ASX not care because their Blockchain initiative will anyway render old fashioned settlement obsolete? Lots of questions on such a busy day.

 

EBS Market Moves Towards Real-Time FX Market Data

ICAP

ICAP’s EBS BrokerTec, is redesigning its premium FX market data service, EBS Live, and will move to streaming real-time market data.

 

Russia’s Central Bank To Study Blockchain Tech

Daniel Palmer – CoinDesk

 

SR Labs Ensures Clients’ Readiness For OPRA Increased Data Volume Challenge – Removes Need For Unnecessary Infrastructure And Bandwidth

MondoVisione

Products

India – Budget Signals Introduction Of New Commodity Derivatives Products

Jayshree P. Upadhyay & Ankit Doshi – Livemint

While the FM did not specify products likely to be introduced, market participants expect the introduction of option contracts in commodity derivatives, similar to those available in equities.

 

Draft New Instructions Allow Trading Unlisted Securities On Amman Bourse

Jordan Times

Jordan Securities Commission (JSC) has prepared draft new instructions that allow trading unlisted securities on Amman SE (ASE).

 

Convergex’s Options Division Launches Multi-Leg Capital Commitment Crossing Algos

PRNewswire

Indexes

CME – Launch of CME Bloomberg Dollar Spot Index Futures

CME

 

HKEx Expands Offering with Seven New Stock Sector Futures

Jeff Patterson – Finance Magnates

The launch of the new stock exchange futures will take place on May 9, 2016, and will fortify an already robust offering of equity derivatives on HKEx’s platform. As a result, seven new sector index futures will be launched – press release.

China Exchanges Services Company Limited (CESC) Announces A Gaming Index & Licenses HKEX To Offer Futures On The Index

MondoVisione

PLY: Now you can gamble on the index as well as red, black, MahJong et al…

Career Paths

Business Standard reports that MCX appointed Mrugank Paranjape as MD & CEO. The appointment will be for a period of three years. Since May 2014, the exchange has functioned without a permanent MD, P K Singhal handling the affairs of the exchange as joint MD.

NZX advises that the opening date for nominations for directors is 1 March 2016. The closing date for nominations for directors will be 21 March 2016. Nominations may only be made by a shareholder entitled to attend and vote at the AGM.

BNP Paribas Investment Partners appointed L. Bryan Carter as Head of Emerging Market Fixed Income.  He will be based in London and report to Dominick DeAlto, Chief Investment Officer of Institutional Fixed Income.

ESMA Announces Two New Vacancies

MondoVisione

ESMA is recruiting a Data Manager in the Risk Analysis & Economics Department, and an SNE for IT delegated projects.

Financial Calendar

01.03 – Record date Interactive Brokers $0.10 quarterly dividend

02.03 – Record date BGC Partners $0.14 dividend

04.03 – LSEG prelim results for the period ending 31 December 2015

04.03 – Record date CBOE $0.23 dividend

04.03 – Record date ITG $0.07 quarterly dividend

New! 13.05 – ICE 2016 AGM – press release

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

Crowdfunding

A Third Of China’s P2P Lending Platforms Flawed

Raymond Tsoi – EJ Insight

PLY: A sorry tale. Any idea what the percentage is for banks and other financial institutions? No, I don’t think it’s just a P2P thing either.

Other stories

Advisory Committee On Small & Emerging Companies Opening Remarks, SEC Commissioner Kara M. Stein, Feb. 25, 2016

MondoVisione

 

 

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