MARCH 31 2017

Exchange Invest issue 966 coincides with the Porsche type number given to the initial development project of the Porsche Speedster… apt as today’s bumper issue of interesting news means you need a touch and speed and the wind in your hair as you scroll…

Welcome Kynetix

Best news of the day bar none is welcoming the fabulous folks of Kynetix to the sponsorship of Exchange Invest. Theirs is a fascinating niche providing vital trust in the commodity space where it has often been left wanting, watch this Video to get a taste. Their key clients include LME and I am sure many in the parish’s 500 odd marketplaces which read Exchange Invest will be fascinated to learn more of their products.

In Today’s Exchange Invest

Mega day all round, DB1 is a prisoner of Hesse. SGX might have had a drink with some other markets. Pay in the spotlight as are advisors’ fees (wonder why). The most horrible exchange name in the parish may soon be the most elegantly simple brand of all. Stake sales in energy markets, Nigeria to go public, first Chinese commodity options and lots lots more, you need to scroll all the way today…

Meanwhile, thanks to all the readers who have written in noting the richness of this week’s vocabulary. The reader who noted there was no ersatz newsletter which could replace Exchange Invest was particularly welcome.

In BigWorld

And the winner for best recovery from a global mega blunder witnessed by TV viewers worldwide is PwC who retain the contract to hand out envelopes at the Oscars.

Public Markets

Brazil’s BM&FBovespa Proposes Name Change To ‘B3’ After Cetip Takeover
Reuters

PLY: Great name after such an ugly mouthful of retained compromise. New CEO en route too which is fascinating as Edemir Pinto will soon step down after a remarkable run.

NB B3 is also a vitamin complex sometimes called Niacin an essential vitamin required for processing fat in the body, lowering cholesterol levels, and regulating blood sugar levels.

…The sugar link seems somewhat appropriate to Brazil’s new world class market infrastructure company. I suggest the parish raise a Caipirinha to B3 in a not ironic twist of sugary cultural appropriation. Good luck to new CEO (outgoing Cetip CEO) Gilson Finkelsztain who will be briefly Chief Integration Officer before steppping up.

SGX Weighing Options In Pursuing Overseas Tie-Ups
The Straits Times

PLY: While SGX has bought the Baltic it does look a tad becalmed. At the same time, the CEO has to justify his Boca expenses and there could merely be a whiff of the media misunderstanding the usual executive locker room talk post such events.

German Lawmaker Warns Us Exchanges Against Deutsche Boerse Bids
Reuters

U.S. stock exchanges should not attempt to buy Deutsche Boerse (DB1Gn.DE), a senior German politician said on Thursday.

“Deutsche Boerse is not only a private company but it also has state responsibilities,” Thomas Schaefer, finance minister for the German state of Hesse, told reporters.

PLY: A bad week for DB1’s C-suite gets worse with this tart statement that it cannot be acquired by any third party bidder. Interesting emphasis on “state responsibilities,” will there now also be government pressure on management?

Advisers Bungle Merger Of Equal Desperation
The Australian

PLY: Article focuses on purely the issues surrounding the rather amateurish approach to mitigating competition concerns and then throws away the money shot with the media’s instinctive belief only big mergers are the future. Also questionable on the truth of how selling MTS ‘’is easy.” (once again most don’t understand market DNA needs blood and whence that blood is created in modern banking, selling MTS would put LSE at a critical disadvantage going forward). However is rightly annoyed at the management of the exchanges and the actions of advisors albeit might it be better to ask just how a handful of exchange experts could clearly see a year out what the hundred million advisor pack could not?

Where Next After The LSE-DB1 Collapse?
FOW magazine

The merger is dead, but the idea of pooling the LSE’s over-the-counter market positions with Eurex’s strength in exchange traded derivatives does not…

PLY: FOW trying to think beyond the limitations of the agitprop infused legacy media. Having enjoyed the richness of the English language yesterday let’s make a new German word to summarise the problem here: “HessenAngst.”

BGC Partners Updates Its Outlook For The First Quarter Of 2017
MondoVisione

BrokerTec Europe Completes e-MID SIM SpA Acquisition
MondoVisione

Japan Exchange Group: Update Of 2nd Midium-Term Management Plan
MondoVisione

London Stock Exchange Group Plc – Transaction In Own Shares
Exchange News Direct

Private Markets

Nigeria’s Stock Exchange Gets Green Light For Public Listing
Reuters
Members Approve Nigerian Stock Exchange Demutualisation Process
MondoVisione

PLY: Marvellous news which coincides with another report pointing out Nigeria will be Africa’s biggest market by 2022, surpassing South Africa.

PFS Sells Its Stake In Indian Energy Exchange Limited
Indiainfoline

PLY: Interesting timing just as electricity markets in India are hitting volume peaks.

Why Is NSE Bogged In Negatives? Maybe It Needs To Put Protocol First
Economic Times
NSE IPO: Algo Issue Resolution And Defreezing Of Funds Needed, Say Experts
Business Standard
Ahead Of IPO, NSE Would Do Well To Resolve Algo Trading Controversy
Moneycontrol.com

PLY: It’s a worry that in recent times the NSE has begun to look suddenly leaden footed.

SIX: FINMA Awards New “Multilateral Trading Facility” Status To The CO:RE Trading Platform
MondoVisione

ASIC Reports On Sydney Stock Exchange’s Listing Standards
MondoVisione

PLY: ASIC issues a task list of some concerns.

The Amman Stock Exchange Started Publishing It’s Circulars And Resolutions In English Version
MondoVisione

PLY: Good to hear as their arabic PDFs are tricky for Exchange Invest staff to understand.

OIC Launches New Digital Education Advertising Campaign
MondoVisione

Special Section: FTI, NSEL, India at the Crossroads

Under New Chief Ajay Tyagi, Sebi Is Working Overtime To Resolve Legacy Issues
Moneycontrol.com

PLY: NSEL only one component here but a vital one for India to restore credibility. Pragmatic but speedier responses resolving legacy issues will be a good sign Chairman Tyagi is delivering a new purpose to Sebi.

NSEL Case: SFIO Seeks Details From Trading Clients
Daily News & Analysis

Technology

Race For Speed Among Algo Traders Hits Peak
Financial Times

PLY: To read alongside:

Avelacom Launches New Low Latency Route Options From Interxion London To Emerging Markets
MondoVisione

Investors Annoyed As Nepse Website Crashes During Trading Hours
ShareSansar

Products

ESMA Publishes Final Rules To Ensure Integrity Of EU Financial Benchmarks
ESMA

China’s Market News: Dalian Exchange Launches The First Commodity Option
DailyFX

PLY: Not so much fanfare but a major event in China’s market development.

No Big Bang: MSCI’s Toned Down Proposal For China A Shares
Frontera News

PLY: Interesting analysis.

Bike Firm, Bourses Eye E-Coal Auctions
Daily News & Analysis

PLY: Fascinating potential.

FXCM: The Damage Has Only Just Begun
FinanceFeeds (blog)

PLY: Ultimately FXCM may be the watershed moment which prompts reform of forex, not just at the retail level but even at the wholesale as I have yet to meet anybody who is a non-fx person who sees “last look” for instance as anything other than an egregious privilege and impediment to free markets.

FX Last Look, Transparency And More: LMAX Exchange CEO David Mercer Speaks
LeapRate

Career Paths

PLY: Interesting insights in the world of compensation, first up is XavRol: Stock Exchange Chief To Make £5M From Failed Deutsche Börse Deal, proving that failure can be lucrative in these markets (interesting in my inbox this week, the pantomime villain – apart from 2 CEOs…go figure who… is my old friend Andreas Preuss who has been named as a serial deal failure profiteer by various readers – I could not possibly comment). Elsewhere Charles Schwab Ceo Walter Bettinger’s FY Total Compensation Was $19.55 Mln…

Which all goes to suggest to me that the man delivering genuine value to the parish is to be found here: Intercontinental Exchange CEO Jeffrey Sprecher’s 2016 Compensation Was $10.7 Mln. Frankly I think the remuneration committee are getting an amazingly good deal at that price both as an outright proposition and indeed as a benchmark to the peer group.

Incidentally, I see a fascinating lineup of Remainians and Brexiteers, pessimists and optimists at an event called Prosperity UK which lists Jeff Sprecher amongst the speakers alongside the likes of Michael Spencer and Xavier Rolet at the event late April in London. Looks interesting as Britain gets to grips with the post-EU opportunity.

Over in Washington, Acting Chairman Giancarlo has appointed James McDonald as CFTC Enforcement Director while the SEC has named Sagar S Teotia as Deputy Chief Accountant.

Finally, the HKEX Listing Nominating Committee has Extended the Application Period For Listing Committee Candidates

Crowdfunding

Marketplace And P2P Lending : Viable Or Not?
AltFi

Crowdcube Announces Partnership With Amazon Web Services
Crowdfund Insider

PLY: Interesting move, particularly as AWS appears to blow hot and cold on business in the parish.

Other Stories

Remarks of Acting Chairman J. Christopher Giancarlo before the 11th Annual Capital Market Summit: Financing American Business, US Chamber of Commerce
CFTC

ESMA Updates List Of Recognised Third-Country CCPs
Japan Commodity Clearing House Receives ESMA Recognition As Third-Country CCP

SEC Announces Agenda For April 5 Meeting Of The Equity Market Structure Advisory Committee

ESMA Publishes Updated Q&A On CFDs And Other Speculative Products
After that amazing day for the parish, I am off to enjoy Malta’s Freedom Day, with a trip to watch the latest round of the hillclimb championship.

Enjoy your weekend, whether it is in peaceful or strategic contemplation of the future of the parish, mine is clearly in the latter camp after such a seismic week.

Thanks for reading Exchange Invest and thanks to Kinetix for joining our roster of sponsors!

Patrick

Patrick L Young
Executive Director DV Advisors

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