MARCH 10 2017

And as we reach the pinnacle of Issue 950 of Exchange Invest, its equivalent in Porsche design terms was the 1986098 Porsche 911 transaxle modifications. Thrilling stuff – well once you have a transaxle break trust me it’s a broadly unforgettable experience, particularly at speed.

In Today’s Exchange Invest

Today in Exchange Invest I am still pondering the seismic change in IBKR with the announced reduction in Timber Hill while the EU is on manoeuvres to scaremonger Brexit Britain over clearing. Nigerian SE on the move towards an IPO. Lots of Blockchain reporting today of actual tangibles as opposed to pure vapourware too.

And there’s more, happy scrolling:

In BigWorld

The British had a budget the other day, confirming my fears that the government might claim to be Conservative but, like the Cameron regime, it profoundly lacks an understanding of free enterprise.

In the US it appears Obamacare has been offered redemption through cosmetic surgery as opposed to the radical restructuring promised.

Oh, and don’t forget North America plunges forth into summer time at the weekend while Europe has another couple of lackadaisical weeks holding fast to the Greenwich Meridian.

Public Markets

Interactive Brokers To Stop Options Market-Making Activities

PLY: Perhaps the most astounding thing about this seismic move is that I am running it for a second day and yet, still, few legacy media outlets seem to be appreciating the remarkable gravity of this move both for IBKR but more significantly for the parish and particularly US market structure. If exchange operators were not awake this week

Alone so far as I can see in terms of measured comment is the excellent Matt Levine who after a comment on indexing (also worth reading) gets into the Timber Hill market making closure with some pertinent thoughts, as did the composite columnist Tyler Durden of Zero Hedge.

Anyway, packaging retail flow may be as good as market making for the punters in the short term but when the market makers leave the building I fear the structure needs a long hard think on sustainability – the sort of lateral thinking stuff which notoriously exchanges do just as badly as investment banks, brokers, vendors, regulators and most every other market intermediary.

EU Lawmakers Want Guarantees Over Euro Clearing After Brexit

PLY: EU ramps up blatant attempts at protectionism when it ought to focus on growth and other crises. The notion that, say, the Bank of England, would permit a huge dislocation of logic in the clearing of any currency is broadly speaking, moronic.

What is the next step, “equivalence” quotas for clearing?

LSE To Open A New Securities Market

PLY: International Securities Market expands the LSE’s debt issuing platforms.

On The Money: Best Part Of Bats ‘ KC Tale? Its Next Chapters
Kansas City Business Journal

PLY: Subscriber only content but the story is that Lenexa still has a role to play in the new mega-CBOE.

Sebi Speeds Ups Investigation In MCX Insider Trading Case

Glass-Steagall Talk Persists As Trump Meets With Community Banks
Compliance Week (subscription) (blog)

Private Markets

Nigeria’s Stock Exchange To Seek Approval For Public Listing

PLY: A very very interesting play indeed.

Was Kenneth Griffin Right? Was IEX A Mistake?
Seeking Alpha

PLY: Latest from Kurt Dew, this time applauding Citadel and seemingly reversing his previous support for IEX.

With Adequate Net Worth, ICEX Ready To Start Trading
Business Standard

Meezan Bank To Conduct Commodity Murabaha At Pmex
Pakistan Observer

The SSB has approved guidelines for developing a local Commodity Murabaha platform at Pakistan Mercantile Exchange adhering to Shariah compliance.

Nasdaq Dubai And Bourse De Tunis Sign Mou For Collaboration On Listings And Islamic Finance

Special Section: FTI, NSEL, India at the Crossroads

PLY: Nothing specific but note the MCX insider dealing story above which also involves FTIL the original backer of NSEL.


Consolidated Audit Trail (“CAT”) Clock Synchronization Requirements

MTS Equips Customers For MiFID II Compliance Across European Trading Venues

Thomson Reuters Teams Up With Tradeweb To Create Suite Of Solutions For MiFID II Compliance


The Global Stock Exchange Battle For Saudi Aramco’s IPO
Financial Times

The pageantry of ringing the opening bell at the New York Stock Exchange is also a lure, alongside commercial arguments.

FG Savings Will Boost Financial Inclusion – Nigeria Stock Exchange
Exchange News Direct

The Federal Government of Nigeria (FGN) Savings Bond which will open for subscription exclusively on the Nigeria Stock Exchange (NSE) will boost financial inclusion…

Career Paths

PLY: Hilton Sheng has been appointed to head FCM Rosenthal Collins Group’s new Structured Products Division while former G30 CEO Jacob Frenkel has been appointed to the CME Group’s Competitive Markets Advisory Council. Congratulations to both gentlemen.

Ex-DBS Trader Convicted For Spoofing Singapore Market

Singapore Exchange Ltd., which runs the city’s securities and derivatives venue, last month said it would focus on cases that threaten market integrity.

Crowdfunding…actually Blockchain Special

PLY: More fintech than crowdfunding but in BTC world it’s close to the time when the Winkelvoss twins may receive their ETF decision leading to both wonderment and excitement and also fear:

Bitcoin May Go Boom: A Guide To This Week’s Big SEC Decision

What Happens If Bitcoin Unlimited Splits After Bitcoin ETF Approval?

…while in China the central bank seems to be helping promote BTC within regulated norms, Japan and Singapore publish some research findings:

PBOC: Regulators Should Help Bitcoin Exchanges, Not Prohibit Them

Japan’s Financial Services Agency: Multilateral Joint Research On Financial Trading On Blockchains

Singapore’s Central Bank Completes Digital Currency Trial

Other Stories

Making The Girl on Wall Street

PLY: I loved the sassy statue of a little girl facing down the rampaging bull (itself 8 years old this week in its latest cyclical incarnation of market action, if not statuary btw), here’s the story of the one lasting image to International Woman’s Day this year.

Malta Stock Exchange Newsletter Q4 2016
Malta SE

PLY: Great introductory article by the now departed CEO Eileen Muscat who is actively ensuring the success of the Malta EU Presidency currently.

Office Of Financial Research Update: Benefits And Risks Of Central Clearing In The Repo Market

A Modern Example Of Gresham’s Law
The Zimbabwe Daily

Zimbabwe’s stock market has blown away all other stock markets by rising 30% in the last month-and-a-half.

PLY: Bad money driving out good is the question ahead of the latest currency shenanigans in Zimbabwe which draws compare with the Copernican posited Gresham popularised theory of money. Interesting read.

Robot Pepper Gets To Work At Taiwan Stock Museum
Taiwan News

PLY: Judging from the video, this robot addition to renovated Taiwan Stock Museum appears to just prance around and entertain while not adding value to the parish per se…and no, I’ll avoid making any further comment.

Have a sunny weekend and don’t forget to change the clocks where it’s time to spring forward…

Many thanks for reading Exchange Invest.


Patrick L Young
Executive Director DV Advisors

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