March 24 2015


An end to voice give up gaining ground? Niggles with the “through train” while NASDAQ licences X-Stream to Bitcoin market. Interesting product news and apparently Duncan Niederauer will advise Tera Exchange – good luck with that is all I will say for now…

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BGC / GFI: Post Merger Disposals
NSEL Scandal Brief – Part 11 NEW!
Rise of Africa – Part 1Part 2Part 3Part 4Part 5
The Bond Platforms Rush – Part 1Part 2
ICE – NYSE Euronext Deal – Part 1Part 2Part 3

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Public Markets

Shanghai Stock Link Change Draws Doubts (subscription)
Gregor Stuart Hunter – Wall Street Journal

As inflows into Shanghai’s stock market through its Hong Kong trading link continue to languish, some banks say a new effort by Hong Kong’s exchange to overcome one of the major obstacles to trading activity appears unlikely to entice more investors in.

PLY: Gripes raised over settlement issues and the pre shuffling of shares to HK in advance of sale, amongst other issues.

Read our Premium briefs: HKEx – SSE – Stock Connect Brief Part 1,Part 2, Part 3

ICE Benchmark Administration Launches LBMA Gold Price; Transitions Gold Price to Transparent, Electronic Auction Process

PLY: Previously discussed yesterday and last week, so far everything is running smoothly.

Central Banks Agree New Rules For FX Market Conduct
Patrick Graham – Reuters

Banks must prevent traders sharing order information under a new global code of conduct that bans traditional slang usages and gives dealers more guidelines for what they can and cannot say about the world’s biggest financial market.

PLY: If it makes for a better market, the only feasible response is a clear traditional forex idiom: “ship it in, shag.”

Debt Markets May Follow ASX To T+2 Settlements In 2016
Joyce Moullakis – AFR

Debt markets in Australia may shift to shorter settlement times next year, following a decision by an ASX working group for a tentative March 7 start date for a shorter two-day settlement cycle for cash equities trades.

PLY: No bad idea to follow said trend. Who knows if we keep using Swift, sometime before the 23rd century we may be able to move to T+1…real time? Probably not enough coal to power Swift’s settlement abacus.

India – Spread Trading To Gain Popularity As FMC Incentivises Trading
Business Standard

FMC last week issued circulars allowing exchanges to increase margin benefits from 50 to 75% in spread trading in two different contracts of the same commodity. It also gave omnibus permission to facilitate such trades.

Dealers Ease Stance On Naming Swap Counterparties
Mike Kentz – Reuters

Dealers could be starting to loosen their grip on the practice of revealing counterparty names on derivatives traded on swap execution platforms – an apparent reversal of sentiment that could ease the shift of OTC swaps onto anonymous central limit order books, as Dodd-Frank envisaged.

PLY: Given the many fires that Chairman Massad is trying to extinguish after the Gensler era, it is perhaps not overly surprising that he is moving cautiously here but the name give up issue strikes me as rather anachronistic…

CFTC Staff Issues Advisory Reminding Futures Commission Merchants, Clearing Members, Foreign Brokers, Swap Dealers, & Certain Reporting Markets Of Their Reporting Obligations Pursuant To The Ownership & Control Final Rule

Private Markets

Sri Lanka CSE To Set Up A Clearing House With UK’s BTA Consulting
Lanka Business Online

Colombo SE (CSE) signed an agreement with BTA Consulting (BTA) to provide Consultancy and Project Management services to set up a Clearing House which will act as a CCP for settlement of securities, including shares, corporate debt, Government Securities and any other financial market instruments transacted in Sri Lanka.

This is a joint initiative between the Central Bank of Sri Lanka (CBSL), the Securities and Exchange Commission of Sri Lanka (SEC) and CSE. The project was launched in January 2015. The Clearing House is expected to be set up within a two year period.

PLY: Good deal for Brian Taylor who looks very suave in the photograph.

NCDEX To Bid For Agri-Tech Infrastructure Fund
The Economic Times

NCDEX is planning to participate in the bidding process of Agri-Tech Infrastructure Fund (ATIF), which will be rolled out by the government to boost the agricultural marketing system.

SEBI Permits Jaipur SE To Exit Bourse Business
IBN Live

FAO: Recently SEBI allowed Cochin, Bangalore and Ludhiana bourses to exit the exchange business.

Dividend News

HKEx – Forfeiture Of Unclaimed Final Dividend For 2008

HKEx’s final dividend for 2008 of HK$1.80 per share, payable on 5 May 2009 and remaining unclaimed on 5 May 2015, will be forfeited and will revert to HKEx.

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX flat, FTIL off 1%, jailed brokers bailed:

3 Brokerage Officials Arrested In NSEL Fraud Case Get Bail
Ashish Rukhaiyar – Livemint

The Maharashtra protection of interest of depositors (MPID) court on Monday granted bail to three brokerage executives who were arrested in connection with the fraud at NSEL on 3 March. The executives were Amit Rathi, MD of Anand Rathi Financial Services; C.P. Krishnan, whole-time director of Geofin Comtrade; and Chintan Modi, VP of India Infoline Commodities.

Read our Premium briefs: NSEL Scandal Brief – Part 11


Speed Gives Way To Safety As SGX Upgrades Derivatives Market
Eduard Gismatullin – Bloomberg

SGX is shifting its focus from speed to safety as Southeast Asia’s biggest bourse embarks on the latest upgrade to its derivatives-trading technology.

SGX’s matching engine already meets customers’ demands for speed, so the exchange has put better execution and risk management at the center of a new project, according to Michael Syn, the bourse’s head of derivatives.

SGX awarded Nasdaq the S$100 million ($73 million) contract to upgrade its derivatives trading engine in December. The project, which includes support and maintenance for about six years, will be completed by the end of 2016.

Nasdaq To Provide Trading Technology For Bitcoin Marketplace (subscription)
Michael J. Casey – Wall Street Journal

Nasdaq has agreed to provide New York-based startup Noble Markets with core technology to power a new marketplace aimed at allowing companies and institutional investors such as hedge funds to trade bitcoin and related digital-currency assets.

PLY: This deployment of X-stream comes after a wave of rumours that NASDAQ were involved in all forms of attempts to enter the cryptocurrency space.


CME & ICE To Go Head To Head With New Cocoa Contracts (subscription)
Emiko Terazono – Financial Times

On March 30, rival exchanges — the CME and ICE — will go head to head in the cocoa futures market as they both launch their new euro denominated contracts.

Previous comment on the topic here.

Eurex Expands Interest Rate Derivatives Offering
Deutsche Borse

Eurex Exchange is launching new options contracts on the Euro Bund futures with weekly expiration dates (weekly options) on 20 April 2015. Contracts with expiration dates on the five following Fridays will be offered in addition to the existing options on the Euro Bund Futures.

SGX To Begin Market-Making Operations On Electricity Futures In April
Rachael Boon – The Straits Times

SGX announced that it will start market making in electricity futures next month. The move will start from April 1, and comes after the listing of Asia’s first electricity futures contract last October.

SGX on Oct 1st (reported here) acquired the remaining 51% stake in the operator of the island’s national electricity market, having bought 49% of Energy Market Co (EMC), the operator of the National Electricity Market of Singapore (NEMS) in August 2012.

SGX press release here.

TOCOM To Launch Gold Daily Futures Contract On May 7

TOCOM confirmed the Gold Daily Futures contract launch slated for May 7, 2015. This follows regulatory approval from the Minister of Agriculture, Forestry and Fisheries and the Minister of Economy, Trade and Industry on March 23.


MSCI & Nigerian Stock Exchange Sign Strategic Agreement To Develop & Commercialize Co-Branded Indexes

MSCI and The Nigerian SE (NSE) announced a strategic co-operation agreement to develop and market a co- branded family of indexes for the Nigerian equity markets.

STOXX Opens Office In Australia – New Office Covering Australia & New Zealand Expands STOXX’s Global Presence

STOXX announced the expansion of its presence in Asia/Pacific with the opening of a new office in Sydney.

Career Paths

Finextra reports that Tera Group, the parent company of the TeraExchange derivatives trading platform, appointed Duncan Niederauer as an Advisory Director.

Read our Premium posts: Did Duncan Do Due Diligence?, Duncan Niederauer Fund Manager – An Essential Due Diligence Resource and Duncan Niederauer – A Brief Review

ESMA: Call For Interest IPISC-CWG Renewal

ESMA is launching the process to renew the composition of the IPISC CWG. Interested parties should submit their application using the appropriate form by 23 April 2015.

Financial Calendar

This week

CME $0.50 Q1 2015 dividend payment
Amman SE (ASE) will hold its Sixteenth General Assembly Meeting
Nasdaq $0.15 quarterly dividend payment
NZX 6 cents fy 2014 dividend payment
Aequitas Innovations Inc. is opening the Neo Exchange

New announcement

SGX Q3 Results for Financial Year 2015 (FY2015) – 22 April 2015

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

Share Notes

CME CEO Phupinder Gill sold 30,000 shares Friday, March 20th at an average price of $99.76 (bargain $2,992,800.00). He now owns 123,044 shares.


Crowdcube Launches Seed Funding Service For Early Stage Businesses
Henry Williams – Startups

Crowdfunding platform Crowdcube has launched a new service to help UK-based start-ups raise equity finance as quickly as possible.

The Sprint Programme aims to provide seed stage start-ups looking to raise between £20,000 and £150,000, with a quicker and more cost-effective method of finding finance from Crowdcube’s investor community.

Crowdcube is marketing the addition to its platform as faster and leaner, with no legal or admin fees and a pitch going live in just 14 days. There are a number of qualifying criteria to ensure the process is as efficient as possible.

Other stories

FIA Issues Guide On The Development & Operation Of Automated Trading Systems

FIA released a comprehensive guide to the development and operation of ATS.

UK FCA Publishes Its Business Plan For 2015/16 & Announces Details Of New Supervision & Authorisation Divisions

FCA has set out the key areas of work it will undertake in the forthcoming financial year with the publication of its Business Plan for 2015/16. It also confirmed the creation of two new Divisions that would be responsible for the FCA’s supervisory and authorisations work.

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