MARCH 3 217

Welcome to Exchange Invest issue 945 and in Porsche speak: whereas it is universally known as the 944, the 945 was strictly speaking the 944 in right hand drive format…

In Today’s Exchange Invest

LSE increases dividend and delivers good numbers, next step is Donald draining the swamp post Merger of Equal Desperation achieving the great null point from the regulators.

Euronext onto a winner methinks with a cracking investment in Algomi and expansion of their corporate bond trading exercize. LME potentially seen gaining traction with its precious metals platform as IEX criticizes NASDAQ proposal…

And there’s more, happy scrolling:

In BigWorld

While this is an apples with oranges comparison, Snapchat’s IPO valued it at around the GDP of Mauritius or Tajikistan even before trading started and the stock went up 44% on day one.

Then again, Tajikistan is of course often characterised as an increasingly authoritarian one party state but hey, unlike public shareholders of Snapchat, at least the average Tajik gets some sort of vote.

Public Markets

LSEG Plc Preliminary Results For The Year Ended 31 December 2016

PLY: Good numbers from LSEG. Now the hard work begins – it’s time for the new LCH IT system and much more besides with internal reforms needed to really squeeze the most out of the group holdings accumulated predominantly under Xavier’s watch.

London Stock Exchange Offers Up Sweetener To Investors As Deutsche Börse Deal Collapses
Evening Standard

PLY: 20% dividend hike.

Jim Armitage: Ten Questions To Determine How LSE Boss Xavier Rolet Is Remembered
Evening Standard

Why did neither you nor DB foresee the MTS issue given that it was so key to Italy when the LSE bought Borsa Italiana in 2007? Will you demand redress from the scores of advisers you hired on this deal for their lousy advice?

PLY: I love the idea of getting money back from bankers when we all know they were just another group of yes men flunkies, filler to a lavish entourage resembling a classical Middle Eastern despot’s travelling harem.*

*Yes, probably harsh on the honest ladies of the harem, I quite agree.

The London Evening Standard caps a cracking week where it has been brilliantly adroit in its commentary on the likely end of the DB1-LSE farago. Three commentators over three days, all right on the button.

PS: Oh and you could add to the questions: “Remind me, what happened to that fairy tale nonsense of netting CCPs across borders which was initially a primary “reason” for this deal?”

Euronext Invests In Algomi & Expands JV Globally

PLY: Having announced a corporate bond j.v. last November, Euronext are strengthening their liaison with Algomi, investing, adding Euronext’s Paul Humphrey to the board.

For a $10 million plus internal (not especially material methinks,) costs, Euronext are adding an expansion to their bond network globally while trying to cure a knotty problem of the bond business (with cracking software). Meanwhile this move likely further reassures potential Algomi customers that the much lauded fintech firm is not going to transform itself into another regulated platform.

With a landscape where a million bond platforms seek to bloom, nobody can be guaranteed success but Euronext again shows a measured risk approach to expansion with what could be outsize returns even if they garner a modest incremental improvement in this dysfunctional bond trading niche.

Great deal all round which can deliver a win win for all parties concerned, particularly those actually trying to trade illiquid corporate bonds in large scale.

CBOE Holdings Announces Election And Proration Results Relating To Its Acquisition Of Bats Global Markets
PR Newswire

LME To Launch Precious In June, Details Fee Discount
FOW magazine

Will FXCM Survive?
Forex News Now

PLY: Smart money has to say No. It is already a shadow of the business of a few years back and regulators the world over are slicing into the slime of the leveraged forex market. With a thumbs down from the CFTC, FXCM is just a large debt to Leucadia waiting to be euthanised by the world’s regulators given that they appeared to advertise ‘no trading against customers’ all over the place so far as I could see.

Four More Intend To Sign Up As Clearing Members Of LME’s Precious Contracts

PLY: We don’t per se do sign-ups or new members but a bulk of them arriving in LME’s precious product set is a huge encouragement as the shiny golden stuff takes on paper trading.

More Than Just A Voice Broker? TP ICAP Has Electronic Potential
Financial News (subscription)

PLY: Precisely. Nex is the clean shell tech company, TP ICAP is at an earlier stage of upgrade. The process is management of testosterone reduction to deliver a rise in profit and a digital finality; a sort of viagra in reverse process to put it in lag-speak.

Private Markets

‘Flash Boys’ Exchange IEX Criticizes Nasdaq Order-Type Proposal
Wall Street Journal (subscription)

IEX Group Inc. criticized a proposal for a new way to submit stock orders by Nasdaq Inc., saying it would enable “predatory trading strategies.”

Shareholders Of Companies Formerly Listed On Regional Stock Exchanges In A Tight Spot
Hindu Business Line

Special Section: FTI, NSEL, India at the Crossroads

Sebi Likely To Penalize NSEL Brokers By May


MSEI Completes Trading On Disaster Recovery Site


CBOE Holdings Plans Listing Of Snap Inc. (SNAP) Options

PLY: Expiries are expected to range longer than the 10 seconds maximum duration for a “snap” itself.

Clearstream And Chinese CSD Cooperate On Chinese Bond Market

Career Paths

NSE Board Not Happy With CEO Vikram Limaye’s BCCI Role: Sources

The National Stock Exchange board is wary of its new CEO Vikram Limaye’s Board of Control for Cricket in India’s (BCCI) commitments.

Can The Head Of China’S Stock Market Watchdog Hunt Down Crocodiles?
South China Morning Post.

Former Sebi Chairman UK Sinha On Challenges During His 6-Year Term
The Quint

The CBI is scrutinising SEBI orders in a few controversial cases involving grant of license to MCX Stock Exchange , Saradha chit fund scam, Bank of …

CBOE , Bats Finalise Merger, Management
FOW magazine

PLY: Plaudits to Andy Lowenthal on being appointed head of global derivatives..

Interview: Ayla Majid Fcca, Director Of Islamabad Stock Exchange

Ayla Majid FCCA was the first woman to be elected to the board of a stock exchange in Pakistan,

PLY: While the briliant Mrs Young is out today on a mentor team encouraging 1000 Maltese school girls towards a career in business and entrepreneurship, this is a most upbeat and interesting profile of a woman added to the parish ranks.

Last but not least, as mentioned above, Paul Humphrey, FICC head of Euronext has joined the board of Algomi as part of Euronext’s investment in the fintech vendor.


China Looks To Better Regulate Online P2P Lending Platforms
TechNode (blog)

Other Stories

FIA: Position Limits Rule Needs More Study And Hedging Exemptions

Canadian Securities Administrators Urge Canadians To Protect Themselves Against Binary Options Fraud – CSA forms Task Force To Address Leading Cause Of Fraudulent Activity In Canada

All the best for a great weekend, I’m looking forward to Marriage of Figaro Saturday and with a bit of luck some hillclimb action Sunday.

Have fun,


Patrick L Young
Executive Director DV Advisors

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