May 03 2016

elb2May kicks off in elegant style post Orthodox Easter and Pan European Day of Indolence with news of GMEX renewing their sponsorship for 2016. Many thanks to Hirander, James and the team, I look forward to hearing more exciting news on their various business fronts during the next 12 months!

As the UK headed off into its Bank Holiday weekend, Friday evening saw the latest retraction from the Merger of Equal Desperation. Curious timing to say the least. When the history is written of the history of the DB1-LSE affair, it already has huge power as a management school casebook: A hasty negotiation without apparent holistic consideration where the message was swiftly subsumed by a series of schoolboy errors which would be unacceptable of a penny stock.

Lots to get through after the long weekend, happy scrolling:

Public Markets

CBOE Q1 2016 Results  

CBOE

vs Q1 2015 (GAAP): total operating revenues $162.3m, up 14%, net income allocated to common stockholders $49.2m, up 17%.

PLY: We hear so little from CBOE, I am not sure I always know how they make money but clearly they do it rather well.

 

DFM Q1 2016 Results

MondoVisione

vs Q1 2015: net profit of AED 86m (USD 23.4m), up 27%.

PLY: Likewise.

 

Nasdaq Completes Acquisition of Boardvantage

Nasdaq

Nasdaq agreed to acquire board portal solution provider Boardvantage, on March 20, 2016.

QV Premium: Exchange Deals Brief.

PLY: It’s another good tool in the services suite which helps listed companies and indeed encourages them to list on NASDAQ.

 

Australian Entrepreneur Dr. Craig Wright Identifies Himself As Bitcoin Creator Satoshi Nakamoto

MondoVisione

Bitcoin’s Creator Is Human. Get Over It.

Leonid Bershidsky – Bloomberg

PLY: This may well be him, finally. We all took a few wrong avenues en route. That said the conspiracy theorists will never believe it until they see Satoshi’s birth certificate.

 

ICE May Have More Time To Consider Bid For LSE

Sophie Sassard & Huw Jones – Reuters

LSE & DB1 may have to delay a vote on their proposed merger until after Britain’s EU referendum, handing more time to ICE to decide whether to make a counter-bid for the British bourse.

ICE would have to file any counterbid seven days before that meeting.

PLY: Good article even without the quotation from myself:

“”ICE faces the same antitrust concerns as Deutsche Boerse, which I feel are insurmountable when it comes to clearing in European derivatives,” said Patrick Young, publisher of industry daily ExchangeInvest.”

Will ICE Gatecrash The LSE-DB1 Party?

Nick Cawley – News.Markets

ICE needs good results on May 4 to boost its flagging share price.

DB1 Retracts Merger Comment At UK Request

Jonathan Gould – Reuters

LSE Regulatory Announcement

PLY: Gosh, is anybody keeping score here? LSE has had a couple while DB1 have made messages, suggesting maybe God’s will might be present but he isn’t playing an executive role. Messaging, message timing and preparation are everything. Here we have supposedly august quasi-SRO entities entrusted with the sanctity of markets & all the confidence which goes with it, making schoolboy errors then apologising in a mealy mouthed fashion, or delivering their clarifications & retractions on a Friday evening before a UK bank holiday weekend.

I know from my inbox a lot of industry folks would not accept this behaviour from a penny stock – how can it possibly be acceptable from supposed maturely managed multi-billion dollar entities?

Duffy: CME in Position to Compete With Any Exchange (Video)

Bloomberg

Terry Duffy, Chairman, President At CME, discusses Q1 results and preparing for new competition from the LSE-DB1 merger.

QV Premium: DB1-LSE Merger Brief.

 

Sibex EGM (Romanian)

Sibex

Shareholders approved, among other points the Sibex board to establish a Merger Project, to complete it and file it to the Registry of Commerce during a term of 120 days.

BVB Launches A Process That May Ultimately Lead To The Enhancement Of The Capital Market Architecture

BVB

Invitations have been sent to several independent professional consultancy bodies, to perform due diligence on SIBEX.

QV Premium: BVB – SIBEX Merger Discussions.

PLY: Reducing competition, even from a mismanaged marketplace like SIBEX won’t improve Romania’s marketplace but it is in the mould of Ludwik’s pursuit of monopoly; something he did well at GPW in absorbing the Power exchange etc. This transaction is a waste of time – there is nothing additive to BvB in the deal but clearly some consultants will make a few dollars as BvB helps some shareholders out of a tricky situation the shareholders themselves engineered.

 

EU Watchdog Says Clearing Houses Resilient, Tougher Daily Checks Needed

Huw Jones – Reuters

ESMA published the results of its first annual region-wide “stress test” that covered 17 clearing houses in the EU.

 

Clearing: Post-Trade Firms Give the Buyside a Second Look

Rob Daly – Traders Magazine

Putting clearinghouses together with buyside firms may not strike many as a “you got your chocolate in my peanut butter” moment, but the relationship between the two is certainly changing.

PLY: The more non-bank alt-dealers get inside the CCPs etc the more compelling the opening of the swap-igooly becomes but the banks are still fighting the gravity of transparency…

 

AIM Chief: We’re No Dodgy Casino (subscription)

Alex Ralph – The Times

Marcus Stuttard, CEO of AIM, has rejected stinging criticism that the market is a casino playing host to dubious companies.

 

Thomson Reuters Announces Pricing of US$500M Note Offering

PRNewswire

Thomson Reuters announced the pricing of US$500 million of 3.35% notes due 2026. The offering is expected to close on May 9, 2016, subject to customary closing conditions. TR plans to use the net proceeds to repay its US$500 million principal amount of 0.875% notes upon their maturity later this month.

Private Markets

BSE, NSE Fail To Get Nod For Commodity Trading Platforms

Jayshree P. Upadhyay & Ankit Doshi – Livemint

Sebi has decided against allowing the two national stock exchanges to launch commodity trading platforms in the near term.

PLY: I am unconvinced the process of manipulating the market through regulatory fiat ever helps. Presumably those who recently backed the ICEX startup at a  $37.5 million valuation are happy.

 

BSE Asks Brokers To Submit Client Funding Details

TOI

Bombay SE on Friday asked stock brokers operating in the cash segment to submit total amount funded to clients during April on the exchange’s electronic filing system by May 8.

 

IDX Changes Tick Size to Boost Market Capitalization

Jakarta Globe

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX and FTIL flat.

NSEL Scam: SEBI Asked To Examine Defaulting Brokers

KR Srivats – The Hindu Business Line

PLY: Latest update on the stasis surrounding a possible resolution and repayment.

Restrain FTIL From Funding Startups

Ashish Rukhaiyar – The Hindu

A petition has been filed in the Bombay High Court to restrain the listed entity from using its funds for venture funding or angel investment in startups. The company is already barred by way of a court order from using its funds for any purposes other than managing its day-to-day operations.

NSEL-FTIL Merger: Next Hearing On June 15

KR Srivats – The Hindu Business Line

QV Premium: NSEL Scandal Brief – Part 16 and NSEL-FTIL Merger Brief.

Technology

Thomson Reuters Begins Final Thomson One Phase-Out (subscription)

Joanne Faulkner – Waters Technology

The vendor recently sent end-of-life notices to customers of its legacy Thomson One desktops, announcing that it will retire the platform next year.

 

A Tale of Two AIs

Rob Daly – Markets Media

The trouble with developing ‘artificially intelligent’ trading systems is that a mass market for the technology has yet to develop.

Products

CME & Crypto Facilities Announce Launch of Bitcoin Reference Rate & Real-Time Index

PRNewswire

CME, ICE Prepare Pricing Data That Could Boost Bitcoin

Tom Polansek – Reuters

CME and rival ICE plan to publish new pricing data on bitcoin that they say will increase credibility and transparency for the controversial digital currency.

Starting in Q4, CME aims to begin publishing bitcoin prices about once a second during trading days and a daily settlement price based on transactions from several bitcoin spot exchanges.

 

Mifid II’s Bond Rules Set For Yearly Review (subscription)

Tim Cave – Financial News

 

UnaVista Partners With Kaizen Reporting To Offer Industry Quality Assurance Solution

LSE

 

London Overtakes Singapore As Second-Largest Renminbi Clearing Location

Victor Golovtchenko – Finance Magnates

 

MCX: We Plan To Launch Options & Trading In Indices

Dna

Parveen Kumar Singhal talks about the journey of MCX.

 

CFTC Approves Final Rule on Amendments to the Swap Portfolio Reconciliation Requirement

CFTC

Statement Of CFTC Commissioner J. Christopher Giancarlo Regarding The Final Rule On Amendments To The Definitions Of “Portfolio Reconciliation” And “Material Terms” For Purposes Of Swap Portfolio Reconciliation

MondoVisione

 

HKEX Invites Views On Proposed Revision To Stock Option Position Limit Model

MondoVisione

 

BM&FBOVESPA Announces Market Makers For The DI x IPCA Spread Futures Contract

MondoVisione

 

triResolve’s Repository Reconciliation Service & DTCC Collaborate To Reconcile Data Reported To Asian Regulators

MondoVisione

Indexes

MCX Explores Legal Options Against Asia Index

Rajesh Bhayani – Business Standard

MCX is exploring legal options against the S&P & BSE indices company for proposing to use futures prices of gold traded on the MCX in their two new indices announced last week.

Asia Index, a jv between S&P Dow Jones Indices & BSE, announced the launch of the S&P BSE Sensex Gold Hedged Index and S&P BSE Sensex Dynamic Gold Hedged Index.

Career Paths

Bloomberg reports that Donald Bollerman, IEX Group’s head of markets & sales, resigned from the company.

Reuters reports that India’s National SE (NSE) has nominated Ashok Chawla, the former head of the Competition Commission of India, to become its new Chairman. On April 6 NSE noted that S.B. Mathur had stepped down as Chairman after completion of his term of office.

Following the Government’s re-appointment of Chow Chung Kong and Timothy George Freshwater, and shareholders’ election of Apurv Bagri as Directors of HKEX, HKEX’s Board Friday appointed new members to certain committees and the Clearing Consultative Panel with immediate effect.  Other committees and consultative panels remain unchanged while a Project Oversight Committee to oversee the development and delivery of a strategic project will be created.  

HKEX Board resolved to re-appoint Mr Chow Chung Kong as the Chairman of the Board coterminous with his directorship. Mr Chow’s term of office as a director of HKEX & Chairman expired at the conclusion of HKEX’s AGM held on 28 April 2016. On 21 March 2016, the Government of the HKSAR announced the re-appointment of Mr Chow to the Board for a term of approximately 2 years until the conclusion of the AGM to be held in 2018.

HKEX appointed Kenneth Kok as MD, Head of Cash Trading.  Mr Kok reports to Roger Lee, HKEX’s Head of Markets.

Mr Kok has succeeded David Lo, who retired in February of this year. Before his appointment by HKEX, he was a HK-based Executive Director in Goldman Sachs Asia’s Securities Division.

Former deputy minister of finance U Maung Maung Thein has resigned from his position as Chairman of the SEC of Myanmar and the Insurance Business Regulatory Board.

Financial Calendar

03.05 – ESMA Open Hearing On MAR Guidelines

04.05 – ICE Q1 2016 Results

05.05 – Bats Q1 2016 Results

05.05 – ITG Q1 2016 Results  

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

Share Notes

NZX Employee Share Plan – Team & Results – Transfer

NZX Employee Share Plan – Team And Results – Allotment

NZX Employee Share Plan – Team And Results – Redemption

Crowdfunding

Clarity Please, P2P Lending Startups Tell RBI

Shashwati Shankar – The Economic Times

P2P lending startups reacted positively to the first draft of the Central bank’s guidelines for the sector, but will seek clarifications on requirements such as a direct lending process and leverage ratio. They have until May 31 to file feedback.

Other stories

ESMA Amends MiFID II Standards On Non-Equity Transparency & Position Limits

MondoVisione

 

Governor Markell Launches Delaware Blockchain Initiative – Reflects State’s Commitment To Innovation And Embracing The New Economy

MondoVisione

 

Unmasking The Men Behind Zero Hedge, Wall Street’s Renegade Blog

Tracy Alloway & Luke Kawa – Bloomberg

Colin Lokey, also known as “Tyler Durden,” is breaking the first rule of Fight Club: You do not talk about Fight Club. He’s also breaking the second rule of Fight Club. (See the first rule.)

After more than a year writing for the financial website Zero Hedge under the nom de doom of the cult classic’s anarchic hero, Lokey’s going public. In doing so, he’s answering a question that has bedeviled Wall Street since the site sprang up seven years ago: Just who is Tyler Durden, anyway?

PLY: Having inconclusively abandoned the uphill trudge through the DVD of “Fight Club” years ago, let me end today’s bulletin by noting: There is only one PLY & those initials only ever presage my individual comment. Accept no imitations.

 

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