So DB1 have already been moved to desperation… An increased bid is being hyped: might the gradual clarity of the anschluss that Germany will now demand prove a price too high for Londoners not within that inner core of highly incentivised LSE management? DB1 haven’t so much as blinked as demonstrated a high level of cabin fever panic by the sound of it. You have to hand it to XavRol, nobody quite knows how to sell a used stock exchange like him! Meanwhile the media have got around to airing those “CarKen” rumours that he was rather close for comfort to the LIBOR endeavours.
BSE has permission to list from SEBI is the seismic Indian news while in India Jignesh Shah is moving closer to startups. Away from the fever pitch of merger mania, TriOptima calmly compresses everything, even Polish Zloty swaps.
…which reminds me, before we all get carried away with the silly singularity of German pathology for annexing London, the deal LSE ought to do is in Premium today, entiteld, coincidentally: The Deal The LSE Ought to Do. Make the leap to get the value added insights ahead of the curve – and vastly ahead of the compression process, only $300 per user/year. Hit the reply button & ask for an invoice…
Meanwhile in Bigworld, my latest OpEdge column discusses the ECB’s failings and its waning bazooka fixation.
Tim Wallace – Daily Telegraph
DB1 could increase its offer to buy LSE this week, potentially hiking its bid for the British institution as soon as today.
David Enrich & Shayndi Raice – Wall Street Journal
Carsten Kengeter is on track to run Europe’s largest stock exchange. Three years ago, British prosecutors viewed him as a possible co-conspirator in the global interest-rate-rigging scandal.
PLY: Well ‘CarKen’ is keen to show himself as a committed City of London anglophile living in Wimbledon etc, perhaps he just got the assimilation manual a bit wrong when still banking?
Now, picture the scene. In 9 months or so we may have an ex-Lehman banker & sometime LIBOR suspect endeavouring to convince the EU’s antitrust dudes of the merits of this deal as being in the best interests of a safe, secure, trusted market infrastructure.
In other news, the need to pay more – and clearly stump up some cash – means DB1 anticipate a Chairman/CEO clean sweep within 3 years apparently. Given the void which is DB1’s concept of strategic management, this strikes me as a move of kamikaze proportions for investors.
John Detrixhe & Aaron Kirchfeld – Bloomberg
PLY: Given that the failing in the micromanagement of XavRol has been to actually tear the process heart of the LSE to bits and rebuild, there is clearly some of that ICE management to be enjoyed in reorganising and customer focussing various arms of LSE. Still not sure they can pass antitrust with LCH.Clearnet either but they would make LSE/FTSE-Russell et al genuinely efficient in the mould of LSE’s better organisational structures, like Turquoise.
QV Premium: DB1-LSE Merger Brief.
Silla Brush & John Detrixhe – Bloomberg
PLY: The lure of growth as against a promise of decay, that’s the binary which leaves the blob desperate to maintain their ineffective gravy train status quo and beggars the continent. QV my OpEdge column today. For the City of London, what not to like? Being able to trade freely with the world’s future or being joined along the national debt line with a dysfunctional delusional empire. QV: SInce 2008, Chinese economy has more than doubled, Eurozone is still below its pre-Lehman collapse peaks. It’s not a question of whether the UK leaves or not, the EU is headed inexorably towards the big “Game Over” sign without wholesale reform.
Shanghai SE (SSE) said on Friday it has reached a preliminary agreement with LSE on a co-operation framework for a planned stock trading link.
Rob Daly – Markets Media
PLY: Useful review of the NASDAQ options purchases.
Nicole Bullock – Financial Times
The California State Teachers’ Retirement System (Calstrs), with a portfolio valued at $180bn, joined the ranks of other large institutional investors, academics, and retail investors who have voiced support for IEX.
PLY: Good. There is no coherent reason to refuse IEX a licence – let the market decide who wishes to use the product as opposed to the hectoring of the vexatiously self-interested.
Ashish Kumar Chauhan, MD & CEO, BSE said it will take around six to nine months for the exchange to file its offer document with Sebi.
The Economic Times
PLY: The lack of trust in Indian commerce remains a crucial sticking point moving forward which is not helped by the attitude at the top of the regulatory tree.
Dhaka SE & Chittagong SE will be exempted from tax on their income for the current fiscal year so the bourses can go ahead smoothly during the post-demutualisation time.
May Oo – Xinhua
Myanmar’s Yangon SE (YSX) will begin trading on March 25.
Special Section: FTI, NSEL, India at the Crossroads
PLY: MCX up 2%, FTIL flat.
Jayshree P. Upadhyay – Livemint
Jignesh Shah, the founder of FTIL and main accused in the NSEL fraud, is attempting to build two new technology platforms to offer incubation and other facilities to start-ups, after being released on bail in August 2014.
PLY: Some who are closely involved in the startup community (I claim some form here too….even including my university course on the topic…) would recognise the startup world as exciting, dynamic and often populated with some charlatans, many of whom appear downright dodgy. Now in India Jignesh Shah is pivoting away from the exchange world which has spurned him towards startups. It could prove lucrative. Note Tom McMahon, former NYMEX exec who ran SMX for FTIL is Chairman of an entity involved in Shah’s startup initiatives.
QV Premium: NSEL Scandal Brief – Part 16.
PLY: Good call by the WFE. DDoS alone has been in the exchange arena for years (e.g. on Intrade a decade or more ago). There needs to be a lot more stringency with a broad church approach surely the best way forward, particularly as, while WFE has heft, it is more a one-third World Federation of Exchanges and not a truly global entity (akin to the UN for instance). WFE are right to oppose overly prescriptive IOSCO remits but I think the exchanges could benefit from outside expert input to give the initiative more heft. A good start all the same.
Tim Cave & Mark Cobley – Financial News
Turquoise is to launch a specialist market for ETFs in a bid to boost liquidity in the products.
Maria Nikolova – LeapRate
New Daily EUR/GBP and AUD/JPY ‘Wide’ & ‘Narrow’ Spread contracts.
Sebi will introduce new products and allow more participants in the commodity derivatives market, a move which could pave the way for entry of banks and FPIs into the segment.
The Economic Times
Asking Sebi to be alert on market supervision, Finance Minister Arun Jaitley asked the regulator to take steps to expand investor base and deepen the commodity derivatives segment.
PLY: Another great week for reductionism and I do feel Michael Spencer’s knighthood could easily be devolved on the basis of services to the swap industry through backing TriOptima alone.
Richard Baker, MondoVisione
ESMA has issued a Discussion Paper (DP) on rules under the Securities Financing Transaction Regulation (SFTR).
From 15 April 2016, MOEX will provide real-time market data and end-of-day files for download to proprietary databases and user applications only to subscribers of its information products.
Europex Calls For Reintroducing The Alternative Instrument Identifier (AII) As An Alternative To ISIN And Recommends Aligning The Timing Of The Financial Instruments Reference Data Obligation Under MiFIR & MAR
Bosnia’s Sarajevo SE (SASE) & Bosna Bank International (BBI) signed a deal on Friday to launch an index of listed firms compliant with Islamic investment principles.
Treasury Committee published its report on the re-appointments of Dame Clara Furse DBE and Richard Sharp to the BoE’s Financial Policy Committee.
CalPERS selected Marlene Timberlake D’Adamo as CCO. She assumes her new role on April 11.
David Thomas, erstwhile Head of Communications at the World Federation of Exchanges is heading back to DB1, perhaps just in time given DB1’s ‘merger of equal desperation’ manoeuvres, to work in London & Brussels.
PLY: I wish David every success and sorry to hear he has left the WFE which is making great strides to push forward again under CEO Nandini Sukumar after some upheaval in recent years.
14.03 – Record date Nasdaq $0.25 quarterly dividend
14.03 – Interactive Brokers $0.10 quarterly dividend payment
16.03 – Record date ICE $0.85 Q1 dividend
16.03 – Record date NZX 3.0 cents 2015 final dividend
16.03 – BGC Partners $0.14 quarterly dividend payment
18.03 – CBOE $0.23 quarterly cash dividend payment
18.03 – ITG $0.07 quarterly dividend payment
15-18.03 – FIA Boca 2016
All forthcoming exchange / investment related events are now listed in our Events page.
Deutsche Bank Maintained “Buy” Rating On Nasdaq – $70 Price Target
A full table of current analysis can be found on our Analyst Ratings page which is updated daily.
Liu Shiyu, Chairman of CSRC – China will not reintroduce the circuit breaker mechanism to its stock markets in the next few years.
Kirstin Ridley – Reuters
Tom Hayes will next week return to a London court in a multi-million pound battle against prosecutors over assets that include a seven-bedroom country house.
PLY: Hayes remains the unique LIBOR conspiracist, a fascinating footnote in legal history but perhaps not a good position for what prosecutors (under duress for recent embarrassing failures) view as his ill-gotten gains. (If only we had a similar programme for, say politicians who waste money, or even exchange executives who make critical merger errors).