MARCH 24 2017

Exchange Invest started the week correlating with the magnificent Porsche 956, it ends the week after too many Cayenne variations for my liking, with design 960 correlating with this issue. At once an evolution of the Group B 959 and the 4 speed auto box for the 928S as well as the Porsche Experimental Study vehicle, a 928 based concept to show how to maintain safety precepts but reduce weight and fuel consumption.

In Today’s Exchange Invest

Rather than rattle through the headlines, just have a scroll please, there are fascinating nuggets aplenty in this bumper Friday issue of Exchange Invest!

In BigWorld

Time to Spring Forward on the clock changing front for much of the northern hemisphere, catching up with America’s move a few weeks back.

Meanwhile, Brexiteers are rejoicing at the news that Deutsche Bank has just signed a 25 year lease on new landmark headquarters in the City of London – another blow to the ‘remoanian’ defeatist concept that the next bull market would be international school building in Par-Fra-Dub etc. While this is clearly great news for London, my one concern is, will Deutsche Bank last 25 years given its ongoing funding issues?

Public Markets

China Should ‘Prompt’ HKEX To Buy The London Stock Exchange
South China Morning Post

HKEX management is too inward looking and timid. Instead of making bold moves, it insists on chasing yesterday’s business. Like desperately seeking big tech IPOs..

PLY: Gloves off about HKEX management with this article, which could have been ghosted by Xavier in parts (right down to the ongoing thought CME might bid – despite years of marked recalcitrance). Of course many long dreamed of a London dream exchange and here they could have LME and LSE under one roof – albeit owned by predominantly Chinese interests. Interesting times and all that…

French Financial Markets Watchdog Wants Special Access Rules For UK

PLY: Remarkably pragmatic remarks by AMF boss Gerard Rameix – not the standard frothing vindictive dross from the political Presidents such as President Juncker but reflecting the appreciation that London will remain a mega financial centre. Clearly the granularity of “special” is important – a one-off rules system makes pragmatic sense provided it is not overly layering controls. The clear bargaining chip the EU wants is control of the Euro currency clearing system but the British government would be wise to let the market decide that as if London caves then offshore Euro clearing will just go to a third party regime (and the EU might be wise to realise that, say, an Asian financial centre, may be less communicative than the Bank of England would be amidst central banking colleagues.

Update 1- BM&FBovespa -Cetip Deal Heads For Brazil Approval With Limits
Brazil’s BM&FBovespa To Release New Guidance After Cetip Takeover
BM&FBovespa , Cetip To Release Earnings Targets By May

PLY: Comment from ATS which appears to have lost its long-time CEO Alan Gandelman recently and is still in regulatory limbo. Note one of 4 CADE commissioners did not approve the deal it seems.

MCX To Reposition Itself In Agri Commodities Segment

PLY: CEO Mrugank Paranjape eager to launch new products in commodities not yet trading in the Indian derivatives market.

Brief- Nairobi Securities Exchange Reports Fy Pre-Tax Profit 233.2 Mln Shillings

PLY: Nairobi SE market cap remains circa $30 million.

Private Markets

“Tadawul” Announces The Approval Of Exchange Rules And Procedures Designated For The T+2 Settlement Cycle

PLY: Third country this week following announcements in the US and Thailand. Tadawul makes the switch on Sunday 23rd April 2017.

When Will Fastmatch Exercise Powers To Force Fxcm Out Of Shareholding?
FinanceFeeds (blog)

PLY: And / Or might an established exchange group try to swoop on FastMatch as it has a shareholder dislocation? Then again FXCM made it clear a year ago their stake was for sale but rumours of a full takeover for circa $200 million did not come to fruition then (with ICE rumoured to be the leading bidder). FXCM looks to have a weak hand here as a de facto pariah broker banished by the CFTC.

Cameroon Gives Mandate For Mobile Commodity Exchange

PLY: Fascinating new exchange planning futures trading via a mobile platform base.

Ministry Of Industry And Trade To Launch B2B Commodity Exchange With Separate Section For The Arctic (press release)

Russia’s Ministry of Industry and Trade is planning to launch a B2B commodity exchange in 2017 with a separate section for the Arctic region.

Special Section: FTI, NSEL, India at the Crossroads

NSEL Scam: CBI Chargesheet Accuses Jignesh Shah Of Cheating, Criminal Conspiracy

Mumbai: The Central Bureau of Investigation (CBI) has charged 20 entities and some of their officials for cheating state-owned commodities trading companies PEC Ltd and MMTC Ltd in connection with the Rs5,600 crore payments fraud that surfaced in 2013 at the National Spot Exchange Ltd (NSEL).

PLY: I Haven’t deployed the Casablanca meme for a while but doubtless readers will be shocked to hear that Mr Shah’s reputation is being besmirched with these accusations.


Deutsche Börse: New Market Data Feed To Provide Insight Into Entire Xetra Order Book


Investors The Hot New Customer For Europe’s Trading Venues
Financial Times

PLY: On EU block trades, where BIDS powered BATS and Euronext’s Ax Trading powered platform which joins more recent upstart, the very successful BIDS clone from LSE Turquoise as well as the now old line (not even 20 year old) incumbents such as Liquidnet and ITG. Interesting times – despite the MIFID II waivers, blocks are where trading could be heating up.

TFX Adds Packs And Bundles Functions As Trading Strategies Of Three-Month Euroyen Futures

BATS Objects To Bitcoin ETF Ruling, Plans To Appeal Decision

NSE To Counter BSE In GIFT With Weekly Settled Nifty Options
Economic Times

Fund Mop Up Via Bombay Stock Exchange E-Book Debt Platform Hits Rs Two Lakh Crore
The New Indian Express

NCDEX Seeks Regulator Approval To Relaunch Futures In Pulses
New Indian Express

Gold Backed Assets Set To Make Debut On Nairobi SE
Business Daily (press release) (blog)

PLY: Debut of ETFs with gold the first product in Kenya.

Career Paths

PLY: Just when you thought it could not get more farcical, now Paweł Dziekoński has resigned as Vice President of the GPW Management Board. Not wishing to sound flippant but there have been licences removed before from entities which had so little clear capability to run regulated entities. Naturally that is probably not a problem in the new-Communist paranoia of contemporary Poland but certainly this market is now a parish farce, with barely a few market practitioners left in management.

Tabb veteran Andy Nybo has joined TP-ICAP via their recently acquired Burton Taylor consultancy to do data stuff concentrating on exchange verticals.


BISX Moving ‘Swiftly’ On Crowdfund Platform
Bahamas Tribune

#The Bahamas International Securities Exchange (BISX) yesterday said it planned to move “swiftly” on developing a market model to support crowdfunding.

10000 Games Have Been Funded On Kickstarter
The Verge

Kickstarter just revealed that 10,000 game projects have been funded on the site since 2009, when designer Eric Berlin raised $2,265 to create a new series of crossword puzzles.

PLY: Awesome statistic: “In total, Kickstarter games have received $613 million in crowdfunding from 2.46 million backers.” Remember that is rewards based crowdfunding, not equity based!

Other Stories

FESE: Response To The European Commission ‘Capital Markets Union Mid-Term Review’

PLY: Proportional logical and encouraging public markets – all sound stuff being proposed by FESE. For the sake of Europe’s economy, we must all hope the EU listens.

ESMA Publishes Two Sets Of Guidelines Under CSDR

New Special Study Of The Securities Markets: Keynote Address, SEC Acting Chairman Michael S. Piwowar, Washington D.C., March 23, 2017

Indonesian Bourse Launches Startup Incubator
Nikkei Asian Review

Thanks for reading Exchange Invest and have a great weekend.


Patrick L Young
Executive Director DV Advisors

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