March 31 2016

elb2The cloud gets a big boost – previously minnows and sports/prediction markets like Intrade/Tradesports used AWS but now it’s backing up the ISE – which has been traditionally a benchmark in IT management both independently and as part of DB1… Good move and unsurprising that the pioneer big regulated US market will be ISE once again.

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!

Australia is in the eye of a storm as the incumbent monopolist seems to have lost its government crutch which may spell an end to an unfortunate period of socialist markets radiating from Sydney all the way across the Nullarbor plain. Meanwhile South Africa licences its first competitor to test the previous incumbent monopoly of JSE. Exciting times, happy scrolling:

Public Markets

Morrison Declares Open Season On ASX

Patrick Durkin – AFR

PLY: The problem with big blobby monopolies is they always resembles James Bond opponents’ lairs until the very latter part of the third reel, at which point they implode/explode/flood dramatically (usually a conglomeration of all three). Has ASX finally reached the tipping point?

Bereft of a CEO who has left under a newly emerged cloud, the lack of a bouncer/bruiser in chief has been exacerbated by the news that the new Prime Minister Malcolm Turnbull, is one of those former Goldman Sachs people who believes in free markets. The ASX has just had a huge hole blown in its strategy which was to mosey along far away from the madding crowd hoping nobody noticed. Of course, the problem was everybody could see in plain sight the success of Chi-X and behind the scenes CCP competition has been agreeable for Australian bankers who like maintaining links with LCH…

Chi-X Australia Set To Beat ASX In Trading Of Big American Stocks

Shaun Drummond – SMH

Australian traders will be able to invest in big United States stocks such as Apple or The Coca-Cola Company from September on Chi-X Australia, which looks set to beat larger rival ASX to offer those trades.

The exchange said it was working on using what it called “transferable custody receipts” (TRaCRs) to represent stocks from NYSE and NASDAQ on Chi-X, subject to ASIC approval.

QV Premium: ASX Monopoly – Brief – Part 3.

PLY: Good to see this concept. The notion of domestic currency priced equities has been something I was championing around the time “Capital Market Revolution!” came out but apart from a few HNW products in private bank investment managers, the product has never coherently emerged. Good move by Chi-X as it makes an ongoing land grab to demonstrate that innovation can happen in Australian markets without being wrapped in the clunking fist of regressive monopoly.

 

First New Exchange Licence In A Century Ushers In Competition For JSE

Moyagabo Maake – BD Live

ZAR X has been granted the first stock exchange licence in SA in 100 years.

On launch in September, the new exchange will allow investors to settle their trades on the same day, ZAR X CEO Ettiene Nel says.

PLY: Interesting: JSE is going from T+5 to T+3 and the upstart competitor (first of at least 2 by the looks of it) is likely. Is the incumbent monopoly created by Russell Loubser now a sitting duck? (Albeit the markets may not be head on competitors at first, but JSE has made plain its old fashioned colonial desire for status quo and exchange, well, apartheid, is perhaps the appropriate word.)

Oh, and the headline is a tad breathlessly inaccurate: it’s the first cash equity market exchange in a century – who can forget the contribution to the South African market structure made by SAFEX & BESA before they were consumed by JSE?

 

Nasdaq Rebrands Canadian ATS

GLOBE NEWSWIRE

Chi-X Canada become Nasdaq CX and Nasdaq CX2, effective immediately with a transition to Nasdaq’s world-class INET exchange technology in 2016.

PLY: Understandable rebranding but the “world-class” moniker in front of INET makes some aspect of NASDAQ’s technology arm sound insecure. Spoils the message somewhat.

As Nasdaq Entry Looms, TMX Says Canada Market Rules Must Adapt

Channel NewsAsia

Lou Eccleston, TMX CEO, said that Canada’s capital market rules must swiftly adapt to technological changes and rising competition.

PLY: It will be interesting to hear quite what Eccleston means by this…albeit in a 2016 which is already marked by a bonfire of the vanities of exchange CEOs, TMX need to actually have a plan as opposed to just raging against capitalism and competition – that’s what we expect from Hillary and Bernie down south, or indeed Mr Trudeau in Ottawa.

 

Euronext Completes Interbolsa Migration To TARGET2-Securities

Euronext

 

Eurex Clearing To Launch New Access Model

DB1

Eurex Clearing announced its plan to launch a new membership type that allows buy-side participants to have a direct contractual relationship with the clearinghouse facilitated by a clearing agent. ISA Direct service to be offered from summer onwards.

PLY: Interesting, albeit not the wide notion of access which clearly the analogue catch-ups of NASDAQ and LSE have in mind with their dogged pursuit of re-regulation to help them catch up.

 

PSE Weighs Options After SEC Setback

Business World

Philippine SE (PSE) is evaluating all options after SEC thumbed down its proposed takeover of PDEx, President & Ceo Hans B. Sicat told reporters, while expressing his dismay on the manner by which the regulator explained how it came up with the resolution.

The stock market is not rushing its next step, which could involve asking the SEC to reconsider its ruling and maintaining the current dual structure of the capital market.

QV Premium: PSE – PDEx Merger Brief.

PLY: I have to say I fully share Hans Sicat’s frustration, the regulators have been indecisive and incoherent in their messaging.

 

ESMA Fines DTCC Derivatives Repository Limited €64,000 For Data Access Failures

MondoVisione

Private Markets

PE Arm Of MotilalOswal Acquires 4.1% Stake In Indian Energy Exchange

Ranjani Ayyar – TOI

The private equity arm of MotilalOswal, MOPE Investment Advisors, announced acquisition of 4.1% stake in Indian Energy Exchange (IEX) from Jindal Power Ltd for a total consideration of Rs 98 crore (USD 14.8m).

 

Tadawul Announces The Commencement Of Its Equities & ETF Markets New Trading Hours Next Sunday

MondoVisione

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX slightly up, FTIL up 1.5%.

Technology

ISE Announces First Implementation Of A Securities Exchange On Amazon Web Services Cloud Computing Environment

MondoVisione

PLY: Brilliant stuff all round. I know Intrade / Tradesports used AWS and more visionary CTOs have looked at it. Good move by ISE which remains a pioneer of the industry in so many ways.

Products

CME – First Trades of New Aluminium European Premium Duty-Paid (Metal Bulletin) Futures

CME

CME announced that the first Aluminium European Premium Duty-Paid (Metal Bulletin) futures contracts were traded on Thursday, March 24, 2016.  A total of 96 futures contracts were traded, equalling 2,400 metric tons.

 

NCDEX Tries To Strengthen Process Of Fixing Final Settlement Price Of Futures Contracts

Ram Sahgal – The Economic Times

The country’s largest farm futures exchange NCDEX is working to strengthen the process of arriving at the final settlement price (FSP) of futures contracts — much to the comfort of traders bullish or bearish on a particular contract complaining to the exchange that the FSP declared was off their anticipation.

 

EBS BrokerTec & ICAP Information Services launch Sterling Repo Index Rate

ICAP

PLY: Good.

Indexes

FTSE Russell Creates Dual China Index

Shanghai Daily

TSE Russell announced the creation of a new index that combines the FTSE China A and H 50 Index.

The index is the first from FTSE Russell to represent the largest firms listed on both the Chinese mainland (A shares) and/or Hong Kong (H shares). It has been licensed by Deutsche Bank for ETFs listed on LSE & DB1.

 

MSCI Says China’s Trading Halts May Keep It Out of Stock Indexes

Sangwon Yoon & Adam Haigh – Bloomberg

Index compiler will decide on A-share inclusion in June.

Career Paths

Euronext announces that the Supervisory Board has approved unanimously the appointment of Maria João Borges Carioca Rodrigues as CEO of Euronext Lisbon, CEO of Interbolsa & member of the Managing Board of Euronext N.V., pending all relevant shareholder and regulatory approvals.

The Economic Times reports that SEBI has approved the appointment of Mrugank Paranjape as the MD & CEO of MCX.

ITG announced that Andrew J. Larkin will be rejoining the firm on April 11, 2016, as MD in charge of POSIT Alert client coverage. He will report to ITG MD & Head of Electronic Brokerage Jamie Selway.

Bloomberg reports that Nicola White, global head of electronic fixed-income trading at Morgan Stanley, is leaving the firm to join Citadel Securities.

Charles Schwab Says CEO’s 2015 Total Compensation $12.3m vs $11.8m in 2014

Reuters

CEO Walter Bettinger‘s FY 2015 total compensation $12.3m vs $11.8m in FY 2014

Chairman Charles Schwab FY 2015 total compensation $4.8m vs $5m FY 2014

CFO Joseph R. Martinetto FY 2015 total compensation $4.1m vs $3.2m FY 2014

Further Information in respect of Election of Director at 2016 AGM

HKEx

Financial Calendar

31.03 – ICE $0.85 Q1 dividend payment

New! – 20.05 – NZX AGM

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

Other stories

OCC 2015 Annual Report

MondoVisione

PLY: Lots to read this weekend, the ICE, NZX and now OCC too…

 

Deutsche Bank Agrees To Pay $4 Million For Trading Violations

Reuters

Settles allegations that it failed to properly report data on millions of options trades, according to a FINRA document.

 

ESMA Consults On Future MAR List Of Information Regarding Commodity & Spot Markets

MondoVisione

 

IIROC & FSCO Sign Disciplinary Information-Sharing Agreement – Financial Services Regulators Work Together To Strengthen Consumer Protection In Ontario

MondoVisione

 

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