MARCH 30 2017

Issue 965 coincides with the stillborn Porsche 965 which was an attempt to make a top of the range 911 close to the earlier 959 but somewhat more, er, “affordable.” One muletta remains in the Ali Baba’s cave of Porsche projects which is housed in a secret location within the Zuffenhausen compound (the sort of Indian Jones’ destination of choice for ‘porker-nerds’). The 965 project suffered cost issues and thus in later stages a water cooled Audi V8 was shoehorned into the rear. Eventually the project was scrapped and a new turbo 964 built instead.

In Today’s Exchange Invest

In the aftermath, the coverage on DB1-LSE is still arguably behind where I left it yesterday with the special edition. I read it to spare your valuable time having to do so!

“MOED” is over and a new world dawns – when that will dawn on certain hungover parties remains to be seen. Their reboot is awaited with interest but clearly it takes a while to get through the Kubler-Ross model and Denial with a growing hint of Anger is at best the order of play right now. We await Bargaining / Depression and Acceptance in due course. Meanwhile wags will doubtless consider renaming the German exchange “DABDA1” as it struggles to get over the, oh what was that English word again, ah yes, realpolitik, that will do nicely.

In today’s issue Exchange Invest covers everywhere from Astana to ZA, a fascinating cornucopia of intriguing stories…

In BigWorld

Naturally with all parish focus on DG Comp’s devastating critique of the methods of the former protagonists of the “Merger Of Equal Desperation” you may have missed events in Brussels. It was a lot of pomp and circumstance but at the same time, even as a total non-eco-hippy, I worry was that really the best use of earth’s resources to deliver a message? (by hand from Brussels overnight – #srsly?) Couldn’t they have scanned an email at the embassy and printed it out if they really needed the impact of delivery for the media?

That said, I actually warmed to Donald Tusk (despite the fact I have long deemed him a broadly inept, spineless kleptocrat.) The EU’s significant expense on his English lessons led to a genuinely warm (well as much as one can expect from the pollie-class) and concerned response. He got the tone right in a Brussels which is rightly criticised for all too often having a “cloth ear.”

Meanwhile the media is mostly struggling – the myopia of the Brussels Bugle is writ large in headlines like LSE-Deutsche Börse Collapse Comes At Dark Time For City And EU (the article is much less dismal).

Anyway, we are on the cusp of a renewed UK and the hope must be that we can also see a renewed EU. The world can benefit from both in many more ways than it was benefitting from a sadly festering status quo of 28. I hope the 27 can grasp this historic opportunity. For all our sakes.

Meanwhile the legacy media can be expected to tinge all good news with “Despite Brexit” for at least the next 2 years…well presuming the legacy media lasts that long in its current state.

Public Markets

Basel Committee Gives Banks 5 Years To Adjust To Loan Rules
Reuters

PLY: It’s a bit like that old torture tool the rack, banks have to feel the pain inch by inch as the cogs go around for a few years yet…

LSE Launches 200 million pound share buyback
Reuters

“London Stock Exchange (LSE.L) said it will buy back 200 million pounds($248.74 million) of its shares, as it tries to placate shareholders following the collapse of its merger with Deutsche Boerse (DB1Gn.DE).”

PLY: Fascinating…but hold on, as the story in the Telegraph said just the other day: I thought the shareholders loved LSE warts and all? Why would they need placating?

CBOE: CFE to Lead Exchange Migration to Bats Technology
CBOE

Warwick Business School Professor John Colley Comments On LSE/Deutsche Borse Merger: What Next For LSE After Deutsche Borse Merger Blocked?
MondoVisione

PLY: Post DB1 comment overnight seems to focus on either a remoaner mourning that yesterday was the darkest day in British history -again #srsly. The other strand of coverage uses quotations from the above template of whacky inaccuracy produced by Prof Colley who doesn’t even realise that Chicago is the one city where The ICE retains a minimal physical presence. Reproduced here only so we can have a good tasteless laugh at the inadequacy of parish coverage in the mainstream. Oh what’s the English phrase for my sentiment now? Ah yes, clearly a case of schadenfreude over statements from the kindergarten of analysis.

Statement By Commissioner Vestager On Decision To Block The Proposed Merger Between DABDA1 & LSE
EU News

PLY: The full press conference transcript which ends:

“Our merger reviews work to tight deadlines. Those deadlines serve the interests of the companies that are merging. In the absence of a negative decision adopted within the deadline, they will be able to go ahead and put the merger into effect. So, they of course also need to do their part, and meet the deadlines that apply to them. This includes the deadline for submitting remedies to solve our concerns. The later we get those proposals, the less time we have to review them – and the less time the parties have after the market test to improve them. In this case, the parties proposed the initial version of the remedies only minutes before the deadline.

That reduced the time they had after the market test to improve their proposals. Still, they had the chance to answer our concerns, by offering to sell MTS. But they were not prepared to do that.

The Commission cannot allow the creation of monopolies. That is what would have happened in this case. That is why we have prohibited this merger, for the benefit of competition in European financial markets.

Thank you for your attention.”

PLY: Amen.*

*With a footnote to point out that in English language terms, clearly nobody in the MOED accurately caught the “zeitgeist” of what DG Comp was aiming at in remedy terms.

Playing Field Must Be Level, Says JSE

Business Day (registration)

PLY: I have in the past criticised the JSE for adopting a rather blunt approach to competition but here they hit the right note AND act in their own (and the markets) best interests. Level playing fields are fair – allowing hard pressed shop owners to see their business taken by peddlers rolling out their mats on the pavement in front of the permanent shop is not. There needs to be a balance and a fair exchange to enable fair exchange competition.

BM&FBOVESPA To Join The Board Of Directors Of The Colombia Stock Exchange
MondoVisione

PLY: As part of the BM&F Bovespa’s acquisition of a 9.9% stake, their Latin America Market Development Managing Director Roberto Belchior has been appointed to the Board of Directors.

Proposed Sale Of LCH SA To Euronext N.V
MondoVisione

PLY: Best read to an accompanying sound of footstomping. LSE issues a press release from the Horrible Henry school of agitprop.

Readers with perspective will recall how DB1 has in the past bought Swiss Exchange holdings without such a ‘get out’ clause before not completing their major merger plans.

Private Markets

NSE Faces A Seocnd Forensic Audit Of Trading Systems, This Time By EY
Economic Times

PLY: NSE still sdogged by allegations it offered priority access…

Why Sebi’s Silence In The NSE Case Is Dangerous
Livemint

PLY: Highly pertinent remarks from the cognisant Mobis Philipose. Sebi has a history of nitpicking involvement in all manner of issues and yet is remarkably mute in the case of an NSE where there is clearly a case to answer and a discussion to be had – if only to clear the air. Yet despite all their backroom intervention in countless issues which need not bother them, here Sebi is mute in a case which could damage confidence in market structure and indeed will do so if the remarkable rumour train of markets is allowed to reach anything like a full head of conspiracy theory steam.

Qatar Stock Exchange eyeing African expansion, says CEO
Qatar Tribune

EAEU Works On Common Exchange Space For Oil Products
Astana Times

PLY: Interesting times in Astana. Here the EurAsian Union is talking about a core oil trading platform.

Special Section: FTI, NSEL, India at the Crossroads

Gujarat HC Dismisses NK Proteins’ Plea Against Maharashtra Govt Order
Daily News & Analysis

PLY: Biggest NSEL creditor is still subject to various orders.

Technology

Tradexpress Trading System Live In Australia
Cinnober

PLY: Delighted to hear that Cinnober has completed their installation in ASX for derivatives.

Natixis, IBM And Trafigura Introduce First Blockchain Solution For U.S. Crude Oil Market
MondoVisione

A Plan To Save Blockchain Democracy From Bitcoin’s Civil War
WIRED
On the surface, bitcoin is having a very good year.

New Functionality In The Trading System For Greater Liquidity
Oslo Børs

IPC Launches Global Exchange Reach Solution
MarketWatch

Products

Singapore Exchange To Launch Leveraged, Inverse ETFs Q2
Nikkei Asian Review

Career Paths

PLY: As mentioned above, the AGM of the BVC (Colombia) elected BM&FBOVESPA’s Latin America Market Development Managing Director Roberto Belchior to its Board of Directors.

The ESMA Board of Supervisors has appointed João Sousa Gião, Member of the Board of Directors of the Comissão do mercado de valores mobiliários (CMVM) of Portugal to serve as the chair of the Supervisory Convergence Standing Committee.

FlexTrade Systems announced the appointment of Vishal Pandya as Chief Operating Officer (COO).

OCC, added Andrej Bolkovic, CEO of ABN AMRO Clearing Chicago LLC, and Jamil Nazarali, Head of Execution Services at Citadel Securities, to the board. Bolkovic was appointed to fill a vacancy for a term ending in 2017 created by the departure of John Ruth, and also was nominated for election this year. Nazarali was appointed to fill a vacancy created by the departure of George S. Fischer with a term ending in 2018. (Bolkovic is currently a non-executive Director at ICE Clear Netherlands.).

Crowdfunding

The State Of Security In The UK P2P Lending Landscape – Platform Responses
InfoSec Guy – WordPress.com

PLY: Two weeks ago this blogger published an in-depth article into the current state of IT security in the UK P2P Lending Industry. P2P platforms are often keen to disassociate themselves with what they see as the fusty old world of legacy exchanges – how ironic then that a vast number of platforms are sticking their heads in the sand and trying to ignore this interesting intervention…just like so many legacy exchanges would do in the same circumstances one might add!

Orca Launches First Standardised Peer To Peer Investment Data & Research Service – Innovative Platform Provides A New Way For Investors To Benchmark P2P Investment Opportunities
MondoVisione

Other Stories

UK Financial Sector Proposes Untested System To Keep EU Access
Reuters

PLY: The ins and outs of mutual recognition – always tricky where national / supranational bodies have a high regard for their own innate brilliance. Tricky part in this article is finding unbiased commentators but clearly a fascinating topic.

CFTC Swaps Report Update
CFTC

FINRA & Exchanges Charge Lek Securities & CEO With Aiding And Abetting Securities Fraud
LeapRate

Anthony Hilton: Why Any Boom In Skyscrapers Tends To Leave Their Builders Bust
Evening Standard

PLY: Anthony Hilton remains at least as far ahead of the curve as the political classes are behind it.
Phew, that was quite a world tour…time for coffee and a check of my email.

Have a great day or depending on where you work in the parish, enjoy those therapy sessions.

Patrick

Patrick L Young
Executive Director DV Advisors

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