March 24 2016

elb2Liquidnet’s market structure guru in London, Per Loven has left the building – a significant loss. Sarao the Hound of Hounslow can be extradited to US (pending multiple appeals) while LIBOR’s sole UK conspiracist suffers confiscation order. Tom Hayes loses his house, probably shirt and even wife’s engagement ring. Meanwhile, Tadawul seeks IPO bankers.

Product & Technology is fascinating today – Euro wheat to CME on the analogue looks great while Magnus Bocker returns adjacent to the exchange parish, looking at FinTech…a warm welcome back to him. Interesting video on Chi-X Oz & Tripwire too…

Great to see sign-ups & we have a discount code for the ICDA Blockchain extravaganza. To qualify for a GBP 320 discount ticket (normal price GBP 695) use the code “YOUNG320” to claim your discount. Here is a link to More Info & I look forward to seeing you there!

Today in Bigworld, time to mourn the passing of Andy Grove without whose brilliance, life in markets might just be all too pre-  4-bit 4004. A man whose life was a great reaction of achievement against the the evils of both National and International Socialism which marked his early life. RIP Andy Grove: thank you for making our awesome digital world.

If you’re not celebrating Easter this weekend…well we are. I’m in the office tomorrow but around for weekend calls if anybody has any urgent need for clarification on IHS/Markit, DB1-LSE and all other permutations thereof. If bored, don’t forget to watch the video on how to understand Antitrust & the merger mania.

Exchange Invest will pause Friday and Monday, unless somebody disturbs our time indulging Easter bunnies / beagles / egg propulsion and launches a bid for something… (If you’re in the Orthodox world, I’ll try not to smugly Snapchat rampant chocaholism as we exit Lent and you still have a month to go…).

Public Markets

BVB Shareholders Asked To Vote On Starting Merger Negotiations With SIBEX (Romanian version)

A.A. – Bursa

PLY: The ongoing lost opportunity of SIBEX continues with the latest BvB attempt to extinguish the experiment – a bit like retarded municipalities closing trams in the 1970’s. That said the current SIBEX remains bereft of management inspiration. A sad tale of a market lost to greed, hubris and crass stupidity allied to sheer management incapacity. Doubt anybody fancies a bid even if it is barely worth $5 million all in.

See Premium: BVB – SIBEX Merger Discussions

At the same AGM, BvB looks to approve a move to invest in the mooted EBRD CCP for the region. BVB EGM to take place on April 26 – no news yet on who has been chosen to run it.

QV Full list of BVB EGM topics – here.


Why Hedge Funds Are Avoiding LSE/DB1 Deal (subscription)

Stefanie Eschenbacher – Financial News

For merger arbitrage hedge funds, the proposed merger between DB1 & LSE has everything they want. Unfortunately, it has also something they don’t want.

QV Premium: DB1-LSE Merger Brief.


‘Flash Crash’ Trader Sarao Loses Extradition Ruling in U.K. Court

Suzi Ring – Bloomberg

Navinder Singh Sarao came a step closer to being sent to the U.S. to face fraud charges after a London court ruled in favor of his extradition.

QV Premium: The Kennel – Premium discussion of the “Hound of Hounslow” and Flash Crash & Hound of Hounslow – Brief.


Manipulation Of LIBOR: Tom Hayes Ordered To Pay £878, 806 Confiscation Order


Three more years could be added to his 11-year jail term if he fails to pay.


JPMorgan Ups Stake In Plus500 To 9% As Shares Continue To Rise


PLY: Is Plus500 heading up to become the next big short?


Progress Report: Revitalizing TSX Venture Exchange


TSX Venture Exchange (TSXV) provided a progress report on the Exchange’s detailed plans to enhance Canada’s public venture market, which were published in a white paper in December 2015.

PLY: Interesting paper – to be consumed properly this weekend alongside one published earlier in the week by WFE.




HKEX & Shanghai Gold Exchange (SGE) have signed a non-binding MOU to consider various potential areas of mutual interest…

PLY: “A non-binding MOU” generally makes that other hollow phrase, “merger of equals” appear substantive.


EEX Exchange Council Welcomes Plans For Additional Trading Platforms & Creates Legal Certainty For Market Makers


PLY: Cool, more markets, the pyramid grows and will continue to do so…


Manual Trade Reporting On MOEX


MOEX has clarified how manual trade reports (MTRs) are processed and counted so that it is in-line with Exchanges in other jurisdictions.  

Private Markets

Tadawul Asks Banks To Pitch For IPO Advisory Roles

David French & Hadeel Al Sayegh – Reuters

Pitches for IPO advisor role due end-March. Likely 1-2 banks to be chosen. Tadawul to list in 2018.

PLY: Interesting.


KRX To Establish Private Market To Support Startups’ Stock Trading Before IPO

Jung Min-hee – Business Korea

Korea Exchange (KRX) is taking the initiative in supporting startups. Through the change on articles of incorporation, it will set up the private market to help crowdfunding firms trade their stocks before the IPO and establish the M&A intermediation network to promote fund collection before the IPO.

Special Section: FTI, NSEL, India at the Crossroads

Markets closed – “Holi”


ASX Chairman: Blockchain Remains Focus at ASX After CEO Departs

Matthew Leising – Bloomberg

ASX Chairman Rick Holliday-Smith, said his company is committed to exploring blockchain technology after CEO, Elmer Funke Kupper, resigned suddenly this week amidst a tale of Combidian backhanders at TabCorp which EFK used to run.

Under EFK, ASX forged a deal in January with Digital Asset Holdings to explore moving ASX’s post-trade processes to a version of the software that fuels the bitcoin digital currency.

PLY: Deputy CEO Peter Hiom suggested Blockchain investment might not survive the demise of EFK just as DAH’s Blythe Masters touched down in Sydney to speak at the ASIC conference (where an empty chair was left in EFK’s memory) – presumably she and RHS managed to clarify the situation during this visit…


Tryb Wants To Be The Thread That Ties The Southeast Asian Fintech Ecosystem Together


PLY: Very interesting new launch with Magnus Bocker making a welcome reappearance along with Markus Gnirck with whom I enjoyed interacting when he was at Startupbootcamp FinTech in London.


Chi-X: Building Trust On Tripwire


PLY: Very interesting video interview from the recent RSA conference in San Francisco where Chi-X Australia’s CTO Mike Aikins was discussing how he deployed Tripwire’s technology as Chi-X scaled up to become a worthy competitor to ASX’s monopoly.


CME Closer To EU Wheat Contract After Silo Breakthrough

Valerie Parent – Reuters

CME could announce its EU wheat market within weeks.

PLY: Hooray.


LSE Launches FPGA-Powered Market Data Dissemination Platform



India – CCIL To Be Trade Repository For OTC Interest, FX Contracts


The Reserve Bank said Clearing Corporation Of India (CCIL) will be the designated trade repository for OTC interest rate and fx contracts.


Borsa İstanbul VIOP Removes Order Cancellation Fees In FX & Gold Contracts


Borsa İstanbul: Derivatives Market (VIOP) Operation Principles Amendments



Commodity Dealers: EU Council Agrees To Extend Exemption


On 23 March 2016, the Permanent Representatives Committee agreed, on behalf of the Council, to extend an exemption for commodity dealers under an EU regulation on bank capital requirements.

Career Paths

City A.M. reports that the COO of Paddy Power Betfair, Andy McCue, will step down from his position on 30 April.

HK Securities and Futures Commission (SFC) welcomes the appointment by the Financial Secretary of Mr Thomas Atkinson as Executive Director of Enforcement for a three-year term effective from 3 May 2016. Mr Atkinson is currently the Director of the Enforcement Branch of Ontario Securities Commission, Canada. (OSC Announces Departure Of Tom Atkinson here).

Financial News reports that Per Lovén, Liquidnet’s London-based head of international corporate strategy, left this week.

PLY: This is genuinely a huge blow to the Liquidnet Europe team. Wherever he lands Per is a 5 star employee and I wish him every success in the future. Before, during and after his term, it has always been a pleasure to work with and enjoy Per’s insights.

Bloomberg reports that Goldman Sachs placed its head of U.S. inflation trading, Josh Schiffrin, on leave while reviewing whether transactions he oversaw were booked incorrectly. Schiffrin went on leave in January and is likely to return once the firm finishes examining the positions.

Tryb established in Singapore (see above) as a deal boutique with a fascinating mix of founders:

Partner & Co-founder Markus Gnirck is the former COO of fintech accelerator Startupbootcamp Fintech Singapore. Partner & Co-founder Veiverne Yuen comes from the private equity sector, having worked for investment firm GIC and the Monetary Authority of Singapore, among others.

Most notable to the pure exchange parish, Tryb’s Chairman & Co-founder Magnus Böcker is the former CEO of SGX and was previously President of NASDAQ & CEO of OMX.

Vice-chairman & Co-founder Nels Friets is an investor, consultant, and a veteran of the finance industry, having gone through, among others, investment banking company CLSA and sitting on several advisory boards in Singapore.

PLY: Very interesting setup, and great to see Magnus back in situ.

Financial Calendar

24.03 – ICAP – TNT – vote on transaction

New! – 26.04 – BVB AGM

New! – 28.04 – CME Q1 2016 Resultspress release

Nigerian SE (NSE), in conjunction with the African Securities Exchanges Association (ASEA), is set to host the 5th Building African Financial Markets (BAFM) seminar from Thursday 28th to Friday 29th of April, 2016 and ASEA Exco (Board) meeting on April 30th.

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

Other stories

U.S. Investor Group Urges Halt To Dual-Class Structures In IPOs

Ross Kerber – Reuters

Members of the Council of Institutional Investors voted to adopt a new policy that all investors in initial public offerings have equal voting rights among their shares. They are concerned that dual-class share structures with unequal rights make management less accountable.

PLY: Good! Dual class structures have no part to play in modern capitalism and ought to be abandoned.


HK’s SFC Extends Waiver Of Annual Licensing Fees




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