March 06 2015

elb2

PLY: Today’s news is dominated by the whacky construct which is a fund aiming to build value in exchanges (oh that’s the logical bit I concur here!) but managed (here’s the ridiculous bit) by none other than “Duncan the Value Destroyer Niederauer.” Thank goodness it’s Friday, another week day and things would be just too absurd.

We’re having a frantic day today, sorry to be a bit later than usual but trust me, it’s worth the wait and if you are subscribed to our Premium service you will already have access anyway to the following posts which outline the detail nobody can afford to be without when it comes to Due Diligence on the New DvD Exchange Fund proposal:

Duncan Niederauer Fund Manager – An Essential Due Diligence Resource
Duncan Niederauer – A Brief Review

Put simply, that’s the second time this week when you’re definitively information poorer if you aren’t subscribed. Prepare to be ahead of the field at the Boca poolside next week: only $120 dollars deliver wisdom (discounts for bulk purchases).

Elsewhere, in our Premium service, recent posts include:

Freedom To Clear: Euros!
the (must read) post LCH.Clearnet: A Paradismal Shift?
The GIFT Horse? considering the Indian budget ramifications for market structure

New Premium Briefs will keep you abreast of various issues in the industry (updated daily) when news arises. All briefs can be found on our dedicated Briefs page via Exchange Invest Premium and the latest include:

Rise of Africa – Part 1Part 2Part 3, Part 4
The Bond Platforms Rush – Part 1Part 2
ICE – NYSE Euronext Deal – Part 1Part 2Part 3
MILA Exchanges
SEE Link Project
Greater Mekong Subregion Exchanges Project
ASEAN Exchanges Project

Our Premium service is on a roll – can you afford not to be a subscriber? $120 per user/year helps keep Exchange Invest daily Free. Subscribe here or email and I will invoice you forthwith.

Public Markets

Selling $1bn Exchange Fund Dream (subscription)
Richard Gluyas – The Australian

A global fund run by a former ASX director and an ex-boss of the NYSE is seeking to raise $US1 billion ($1.3bn) for investment in stock exchanges and associated technology opportunities around the world.

Duncan Niederauer, who piloted the NYSE through the turbulence of the financial crisis before its $US10bn merger with IntercontinentalExchange (ICE) in late 2013, has formed a joint venture with Manikay, a US hedge fund run by managing partner Shane Finemore, who served as an ASX director from 2007 to 2013.

The two men are in Australia to market the unique fund to local investors, including institutions, wealthy individuals and family offices.

PLY: Due Diligence Post you cannot afford to ignore if anybody comes near you touting the Duncan the Value Destroyer Fund as an investment…

LSE Boss Predicts Flurry Of Market Activity As European Economy Moves Into A ‘Sweet Spot’
Hugo Duncan – Daily Mail

The CEO of LSE is looking forward to a fresh wave of stock market listings as the market enjoyed its best year for flotations since 2007. Xavier Rolet, who has been CEO for six years, said he expects a flurry of activity in the UK after the general election in May. The 55-year-old Frenchman also said the European economy is moving into a ‘sweet spot’ which would encourage more businesses to launch IPOs on the Continent this year.

PLY: Sorry to say I see chaos after the UK elections, I hope Xavier Rolet is right.

LSE Chief: Let The People Share In The Floats Of Tomorrow’s Stars
Nick Goodway – The Independent

The next government should open flotations to private investors so that they can share in the wealth created by the British tech revolution, the head of LSE said Thursday. “If there is going to be a new Google or Facebook in this country, or something big based around graphene, private investors should be able to share in it,” said Xavier Rolet, CEO of LSE.

PLY Hear Hear.

HKEx Pins Growth Hopes On China Trading Link, To Add New Products
Lawrence White – Reuters

HKEx is betting that rising volumes from the trading link with China and the addition of new products such as equity derivatives and commodities to it will boost revenues despite the scheme’s subdued start.

Was Stock Connect A Boost For HKEx? (Video)
CNBC

Charles Li, CEO of HKEx, tells CNBC how the implementation of the Shanghai-Hong Kong stock connect contributed to the bourse operator’s annual profit.
PLY Pity the HK reaction is still to start with a negative question… qv also our Premium briefs: HKEx – SSE – Stock Connect Brief Part 1, Part 2, Part 3

LME Paid $2 Mln By Rusal After Court Case; Profit Up 1%
Eric Onstad & Melanie Burton – Reuters

LME was paid around $2 million by Russia’s Rusal after the aluminium producer lost a lawsuit over warehouse reform, HKEx said on Thursday. The hefty Rusal payment in February will provide a respite from heavy legal fees for HKEx, which has been tied up in multiple court actions for its LME unit.

Read our Premium brief: LME – Rusal Trial Brief

Premier Li Says HKEx & SZSE To Link At “Appropriate Time” (subscription)
Enoch Yiu – South China Morning Post

Beijing will link up the Hong Kong and Shenzhen bourses at an “appropriate time”, Premier Li Keqiang announced in his annual work report yesterday, just hours before the local bourse reported a 13 per cent profit growth due to its tie up with the Shanghai bourse in November.

H.K.-Shenzhen Market Link May Start in 3rd-Qtr, Sun Says (Video)
Bloomberg

Steven Sun, an analyst at HSBC Holdings Plc, talks about China’s National People’s Congress meeting that started this week, the government’s policies and their implications for the nation’s stocks.

Read our Premium brief: HKEx – SZSE Stock Connect Brief

JSE Set To Almost Double Spending To Speed Up Settlement System
Neo Khanyile – Bloomberg

JSE plans to increase capital spending by more than 80% as it speeds up systems to deliver and pay for securities transactions moving to T+3 from T+5.

The bourse will allocate 211 million rand ($18 million) for capital expenditure to third parties this year, compared with 116 million rand in 2014. JSE will fund spending from its 1.6 billion rand of cash, while paying a special dividend of 80 cents a share on top of an ordinary payout of 4 rand per security.

MOEX Supervisory Board Resolutions
MondoVisione

ESMA & RBA Conclude MoU On Access To Data Held In Trade Repositories
MondoVisione

ESMA and the Reserve Bank of Australia (RBA) have concluded a MoU that will allow RBA to have access to data held in European Trade repositories according to its mandate.

Private Markets

Virtu Hopes Time Can Heal HFT Furore (subscription)
Philip Stafford, Arash Massoudi & Anna Nicolaou – Financial Times

For a proprietary trading firm that deals in microseconds, Virtu Financial is hoping the passage of time can work in its favour. The New York trading powerhouse, one of the largest if not most successful high-speed traders of the past five years, is rebooting efforts for a stock market flotation this year — a closely watched move across an industry where private information is carefully guarded.

Read our Premium brief: Virtu Financial IPO Brief.

Integrated West African Capital Market By 2016 Is Feasible – Ndanusa
Channels TV

The Chairman of Nigeria’s SEC, Dr Suleiman Ndanusa, has said that the realisation of an integrated capital market within the West African region by 2016 is feasible.

Read our Premium briefs: Rise of Africa – Part 1Part 2Part 3Part 4

Amman SE Becomes Anonymous Market As Of March 15th, 2015
MondoVisione

Dividend News

MOEX Board recommended that shareholders approve a 2014 dividend of RUB 3.87 per ordinary share. The total dividend recommended to be paid out is RUB 8 818 323 227.91. The proposed dividend record date is 12 May 2015. The dividend is expected to be paid no later than 16 June 2015. The Group”s consolidated financial statements will be released on 12 March 2015.

Special Section: FTI, NSEL, India at the Crossroads

Markets closed for “Holi”.

Technology

MOEX: Temporary Halt Of Trading On The FX Market
MondoVisione

A March 5th outage on MOEX’s FX market was caused by a malfunction in the operation of gateways used to access the market’s trading system. Specifically, a transaction that balanced risk between the Exchange’s Derivatives and FX markets was executed with an error.

MOEX: New SPECTRA Trading Platform Release Postponed
MondoVisione

MOEX has rescheduled the planned release of a new version of the SPECTRA trading platform due to additional checks required to implement the functionality. The new release date will be announced in due course.

Products

Isda Calls For Changes To Derivatives Transparency Rules (subscription)
James Rundle – Financial News

Derivative markets run the risk of a liquidity shortage if impending European regulations are not refined, a leading trade body has warned.

MOEX: Service For Risk Balancing Between Derivatives And FX Markets To Be Available From 10 March
MondoVisione

The service for risk balancing between the derivatives and FX markets will be available from 10 March due to the FX market trading & clearing system adjustment.

PEGAS To Offer Straight-Through Processing Registration Service For All Its Gas Derivatives Contracts
MondoVisione

As of 19 March 2015, Powernext members will have the opportunity, through all major gas brokers, to directly register their OTC transactions as exchange transactions for subsequent clearing with European Commodity Clearing (ECC).

Career Paths

MOEX Board Resolutions – the AGM will vote on the new composition of MOEX’s 15-member Supervisory Board and the Revision Commission. The AGM will also elect the Chairman of the MOEX Executive Board. The Supervisory Board proposed Alexander Afanasiev as the only candidate for the post.

MOEX Board re-elected Dmitry Shcheglov to be a member of the Executive Board from 2 April 2015 through 3 April 2017, and approved his employment contract as a related-party transaction.

BAML Departure Fuels Talk Of SGX Switch (subscription)
Jeremy Grant – Financial Times

PLY: FT’s man on the spot in Singapore catches up with the story we ran on the back of a Reuters mention March 4th concerning the ex-BAML boss perhaps replacing Magnus Bocker as SGX CEO.

Last month month EI reported that Magnus Bocker is stepping down from his role, not seeking an extension of the contract which ends in June this year.

Read our Premium post: Magnus Bocker – SGX Reflections

Financial Calendar

Today

TMX $0.40 dividend payment

Next week

Record date CME $0.50 Q1 2015 dividend
Record date Nasdaq $0.15 quarterly dividend
Record date NZX 6 cents fy 2014 dividend
Interactive Brokers $0.10 quarterly dividend payment

New announcement

ICE Q1 2015 Financial Results – Tuesday, May 5, 2015 – Press release here
MOEX AGM on 28 April 2015

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

Share Notes

ICE insider Thomas W. Farley sold 5,909 shares Tuesday, March 3rd at an average price of $237.19 (bargain $1,401,555.71). He now owns 11,073 shares. ICE insider stock transactions are chronicled on this specific page.

Analyst Notes

LSE “Outperform” Rating Restated By Credit Suisse – GBX 2,350 Price Target

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

CFTC Staff Postpones Scheduled Public Roundtable
CFTC

Due to Federal Government closure, staff at the CFTC has postponed the public roundtable originally scheduled for Thursday, March 5, 2015.

CFTC staff will advise when the Public Roundtable on Recovery and Orderly Wind-Down of Derivatives Clearing Organizations will be rescheduled.

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