March 17 2016

elb2Well done GMEX on a great deal in Vietnam supplying the exchange and CCP… Good to see CCP equivalence on the roster at last and more…

Lots of coverage, not much of it very additive on what was an entirely as predicted DB1-LSE proposal of their Merger of Equal Desperation yesterday. I still don’t see the compelling value proposition but maybe if I had an LSE C-suite options package I might.

To help clarify the problem with this deal we have a special Free to All Video to celebrate both Ireland’s national holiday and indeed explain effortlessly the 101 of CCP AntiTrust. It’s coming online soon at: ExchangeInvest.com

Naturally, enjoy the video and on this day of Irish celebrations world-wide, I wish you all once again a Very Very Happy St. Zbigniew’s Day.

Public Markets

ICE Rule 2.10 Announcement

ICE

 

DB1 CEO: LSE Deal ‘Truly a Merger of Equals’ (Video)

Bloomberg

LSE CEO: 100% Behind DB1 Transaction (Video)

Bloomberg

DB1-LSE: True Merger of Equals? (Video)

John Detrixhe – Bloomberg

ICE’s Sprecher Contemplates Next Move As LSE Bidding War Looms

John Detrixhe, Will Hadfield & Matthew Leising – Bloomberg

LSE-DB1 Merger Is ICE’s To Disrupt (subscription)

Jonathan Guthrie & Kate Burgess – Financial Times

If US rival can generate cost savings in cash, many investors would prefer it.

Host of Advisers Jostle For $85m Fees From LSE-DB1 Deal

Anjuli Davies & Sophie Sassard – Reuters

A staggering 11 banks and 30 named bankers to seal the $30 billion (£21.2 billion) tie-up between DB1 & LSE. who will be fighting for an estimated fee pot of $85 million, according to Freeman Consulting/Thomson Reuters estimates. Acting for LSE, Barclays, Goldman Sachs, JPMorgan, RBC Capital Markets, Societe Generale, UBS and boutique Robey Warshaw could share up to $40 million in fees, according to the estimates. On the DB1 side, Perella Weinberg Partners, BofA Merrill Lynch, Deutsche Bank and HSBC will clamor over roughly $45 million.

PLY: The “street sweep” is not a sound approach to demonstrating a stewardship of markets but without any deal break fees, clearly LSE has its ideal position, Xavier is shopping for a better price and about to leave DB1 stranded…

LSE/DB1: Twenty Degrees Of Regulation (subscription)

Tim Cave – Financial News

Despite the two companies agreeing terms, the planned merger between LSE & DB1 is not scheduled for completion until late 2016 or early 2017 – hardly surprising, given that it needs the nod from no fewer than 20 regulators, including authorities as far afield as the US, Russia and Singapore.

PLY: And anyway at least a couple will say no…so #GameOver.

Exchange Merger Set To Raise Temperatures In Florida (subscription)

Philip Stafford – Financial Times

The redrawing of the global exchange landscape and its potential fallout is set to dominate the agenda as the global derivatives industry gathers in Florida this week.

The announcement of LSE’s merger with DB1 is likely to add further spice to its biggest annual gathering, the FIA conference.

PLY: No rest for the media poolside in Boca…

Profile: Xavier Rolet (subscription)

Philip Stafford – Financial Times

QV Premium: DB1-LSE Merger Brief.

 

China Merchants Group Joins Race To Buy Baltic Exchange

Jonathan Saul – Reuters

State-run conglomerate China Merchants Group has made an informal bid to buy London’s Baltic Exchange, becoming the latest contender (another one is SGX) for the business that has been the hub of the global shipping market for centuries.

 

FTIL Completes 13% Stake Sale In DGCX

NDTV

FTIL completely exited from Dubai Gold and Commodities Exchange (DGCX) by selling its remaining 13% stake in the bourse to Dubai Multi Commodities Centre (DMCC).

The deal concluded after it got an approval from the Reserve Bank of India (RBI) on March 4.

FTIL and its wholly-owned subsidiary FT Group Investments Pvt Ltd, Mauritius (FTGIPL) had announced in January sale of their 13% (for $5,225,000) and 14.3% (for $5,775,000) stake respectively for $11 million.

QV Premium: FTIL Stakes Sales Brief.

 

CFTC Approves Substituted Compliance Framework in Follow-up to the Recent Equivalence Agreement between US & EU

CFTC

CFTC approved a substituted compliance framework for dually-registered CCPs located in the EU, together with a comparability determination with respect to certain EU rules. Today’s action follows the historic agreement between CFTC & EC regarding dually-registered DCOs/CCPs and represents a major step in paving the way for the EU’s recognition of U.S. CCPs. [See CFTC-EU Common Approach]

Statement Of CFTC Chairman Timothy Massad Regarding Substituted Compliance Determination For The European Union

MondoVisione

Statement Of CFTC Commissioner J. Christopher Giancarlo Comparability Determination For The EU: Dually-Registered DCOs & CCPs

MondoVisione

 

FIA Comments On CFTC’s Proposed Rule On Automated Trading

MondoVisione

PLY: Praise the lord, they saw sense in the end…

Private Markets

Barbados SE (BSE) Launched The International Securities Market (ISM)

Marlon Madden – Barbados Today

It will allow international business and financial services companies to offer equities, bonds, other fixed income securities and mutual fund products.

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX flat, FTIL up 3%.

Technology

GMEX Partners With FPT To Launch Vietnam’s First Derivatives Market & Clearing House

GMEX

GMEX Group has entered into a jv agreement with FPT Information System (FPT) based in Hanoi to provide technology, global business and local operational expertise to launch the first Derivatives market and fully integrated clearing house in Vietnam. The Ministry of Finance (MOF) has entrusted Hanoi SE (HNX) and Vietnam Securities Depository (VSD) to operate the derivative market’s transaction activities.

PLY: Brilliant news for GMEX as they achieve another breakthrough sale with a full solution for the first Vietnamese derivatives exchange.

 

Colombo SE Trading Stops After Back-Up Power Fails

EconomyNext

Trading halted at 9.56 am, after backup power at the World Trade Centre also failed. Resumed at 10.15 am. Backup power generators in the building failed as the island was hit by power cuts.

Products

Montréal Exchange To Launch Eris-based Canadian Dollar IRS Futures

TMX

 

FIA Europe Updates Its Set Of Standard Recommendations For ETD eTrading Under MiFID II

MondoVisione

 

China Aims for Green Bond Expansion With Shanghai Bourse Trial

Lianting Tu – Bloomberg

 

truePTS Advances Regulatory Reporting For Derivatives – Agreement With CME To Harmonize And Lower Cost Of Derivatives Reporting

MondoVisione

Indexes

CBOE To List Options On FTSE 100, FTSE China 50 Indexes

MondoVisione

New Index Options Available Beginning March 29.

 

MOEX Benchmarks Recognised As IOSCO Compliant

MondoVisione

Career Paths

BME Board will propose for approval at next General Shareholders´ Meeting the appointment of the Brazilian citizen, María Helena Dos Santos Fernandes Santana, as new independent Member of the Board.

Karol Półtorak resigned as VP of the Management Board of the Warsaw SE (WSE) on 16 March 2016. Karol Półtorak was VP of the Management Board of GPW from 9 September 2014.

WSE Supervisory Board at its meeting on 16 March 2016 appointed Mr. Paweł Dziekoński to the position of VP of the Exchange Management Board.

PLY: More upheaval at GPW…I hope we can see a tangible improvement as the shuffling of endless political machinations has gone on for a long time.

 

ESMA Vacancies For Seconded National Experts

MondoVisione

Vacancies for cost-free SNEs in the Markets, Investors & Issuers, and Legal, Cooperation and Convergence Departments.

Financial Calendar

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.

Analyst Notes

Macquarie Reaffirmed “Neutral” Rating On LSE – GBX 2,460 Price Objective

A full table of current analysis can be found on our Analyst Ratings page which is updated daily.

Crowdfunding

SeedInvest Expects to Launch First Title III Equity Crowdfunding Offers

JD Alois – Crowdfund Insider

SeedInvest, a leading equity crowdfunding platform in the US, is poised to enter into the Title III, retail crowdfunding space and expects to “launch the first live Title III offerings” on May 16th. Small companies may raise up to $1 million using either a broker-dealer or approved equity crowdfunding portal.

Other stories

CFTC Approves Final Rule to Amend the Trade Option Exemption by Eliminating Certain Reporting and Recordkeeping Requirements for End-Users

CFTC

Concurring Statement Of CFTC Commissioner Bowen On The Trade Options Final Rule

MondoVisione

Statement Of CFTC Chairman Timothy Massad On The Trade Options Final Rule

MondoVisione

 

Remarks Of CFTC Chairman Timothy Massad Before The 41st Annual FIA International Futures Industry Conference, Boca Raton, Florida

MondoVisione

 

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