May 09 2016

elb2PLY: Big day for IPOs with Tadawul, BSE and Dar Es-Salaam all on the launchpad in different places. UK Parliament not interested in the parish it seems, as FOW ponder Jeff’s next move.

Meanwhile, another event to add to the calendar, I am joining a panel on FinTech at the Finance Malta conference May 25/26 a few weeks before the FESE Convention goes to the same venue: Malta, 15/16th June. FESE: Book Here.

In BigWorld, the story the media missed: GOP establishment types partying at the Kentucky Derby which reminds us why President Tump could be so bad for their interests. After all, if he builds a wall where will the next generation of American jockeys come from? (BTW Brilliant win by Nyquist, pure class).

Public Markets

FXCM Q1 2016 Results


vs Q1 2015: total net revenues $71.5m, down 66%, operating income $737k, compared to a loss of $126m, net income attributable to FXCM 49.7m, compared to a loss of $426m.

PLY: Some say the problem is FXCM just feels like a corporation servicing debt to Jefferies, as opposed to clients. Then again without Jefferies FXCM would have disappeared in the Swiss Franc broker crumble of last year.


Jeff Sprecher’s Next Move? (subscription)


ICE CEO Jeff Sprecher said on Wednesday he would not bid for the LSEG but the race for SwapClear is not run yet.

PLY: Returns to a theme of “could a deal be done with OTC Derivnet” which of course would leave LCH an essentially empty shell. Interesting thesis. The only thing we can know clearly is that our analysis is going to be light years behind where the ICE deal machine is looking. The worrying bit is I’m not sure we’re so far behind some of the ICE’s ‘competition’…

Shame Of The MPs Keeping Silent On LSE takeover: Parliament Won’t Quiz Germans Over £21bn Deal

James Burton – Daily Mail

A German takeover of LSEG looks set to go unchallenged in Parliament. The Mail understands the Treasury Select Committee has dropped plans to call in bosses from either company.

QV Premium: DB1-LSE Merger Brief.

PLY: Indeed pathetic but not merely on the basis the Mail perceives. It ought to be discussed if only to show the importance of market structure. Here MPs show contempt for the parish and clearly don’t want to discuss the problems of a merger based on what some call “compelling” and other call “fallacious,” reasoning.


XTB Debuts On WSE, IPO Price Lower Than Expected

Henry Hughes – SMN Weekly

On May 6 XTB released a total of 117 383 635 shares selling 16 433 709 shares (a 14% stake), priced at PLN 11.5 ($2.98). Total IPO receipts PLN 190m (nearly $49.2m). Thus XTB’s market capitalization reached PLN 1.5b ($349m).


Uncertainty Is The Only Guarantee After Icap Offloads Its Broking Arm
Marion Dakers – Daily Telegraph

ICAP, the trading business set up by the former Tory party treasurer Michael Spencer in 1986, is undergoing massive change.
Once its deal to sell off its voice broking operations to Tullett Prebon goes through, the firm will be left looking very different.

PLY: I could not disagree more with this “avoid” rating. ICAP is by far the prettiest girl at the merger prom and thus can go to a significant premium – provided the deal is right for Michael Spencer. At the same time, ICAP’s challenge is now how it can delicately pivot from bank-centricity with electronic platforms to open markets. A complicated and hardly effortless ellison but ICAP has huge steam to power ahead now and a spot of deft nimble manoeuvring from the Spencer playbook can deliver vast upside – even without a deal.

Private Markets

Saudi Arabia’s CMA: Public Consultation: Instructions Of Book Building Process & Allocation Method In IPOs


DSE IPO Starts In Next Ten Days

As discussed Friday, Dar es Salaam SE’s (DSE) self-listing starts in the next ten days, with the IPO that envisages raising 7.5bn (USD 3.4m).


BSE Plans To File IPO Papers With Sebi In July
The Economic Times

BSE plans to file IPO papers with Sebi in July to mop-up around Rs 800 crore (USD 120m).


Metropolitan SE To Raise Funds, Target New Businesses
Jayshree P. Upadhyay – Livemint

Metropolitan Stock Exchange Of India (MSEI) needs funds to meet the Rs.100 crore (USD 15m) capital requirement set for its clearing corporation by Sebi in September 2014.


NCDEX Gets All Its Warehouse Service Providers Accredited By Regulator
The Hindu Business Line

NCDEX has completed the Warehousing Development and Regulatory Authority (WDRA) accreditation of all the 381 warehouses providing services to it.


Bitcoin Has A Governance Problem, No Matter Who Created It
Jemma Kelly – Reuters

As one would-be father of bitcoin falls by the wayside, squabbling among the web-based currency’s lead developers is exposing a fundamental flaw: it must evolve to meet growing demand, but may lack a governance structure to achieve this.

PLY: I am now so confused, I feel obliged to ask: “Bitcoin! Who’s Your Daddy?”

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX and FTIL flat as we get a possible hint of progress with NSEL:

NSEL Scam: MPID Court Orders Fund Transfer From Lotus Refineries’ Account
Dilip Kumar Jha – Business Standard

The Maharashtra Protection of Interest of Depositors (MPID) court has ordered transfer of Rs 12.74 crore (USD 1.9m)  from 27 bank accounts of Lotus Refineries to the account of the competent authority in the NSEL scam case.

FTIL Board Removal: CLB Fixes Next Hearing For May 23
KR Srivats – The Hindu Business Line

The Company Law Board (CLB) has set May 23 as the next hearing date in the FTIL board removal case. This emerged at the CLB hearing on Friday in the Capital.

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


Markit Acquires Interest In Commodities Price Reporting Agency PRIMA

PRIMA’s price assessment service provides impartial benchmarks for global niche markets in renewable commodities.

PLY: Interesting.


Sebi Asks NCDEX To Compensate All Castor Seed Traders

Sebi has forced NCDEX, which suddenly suspended castor seed contracts in January, to compensate all traders who hedged their positions in castor seed on the exchange platform. NCDEX is ready to pay Rs 120 per quintal as compensation to them.


Ireland Could Create EU Model For Dairy Risk Management
Joe Dermody – Irish Examiner

Ireland is ideally placed to develop Europe’s first dairy sector futures and options index, creating a model for EU-wide adoption.

PLY: Very interesting.

Career Paths

Daily Telegraph reports that Oliver Hemsley, founder & CEO of stockbroker & adviser Numis is stepping down this autumn after a quarter of a century at the helm of the firm. He will stay on as an executive director.

AI-CIO reports that Christophe Caspar, current Russell Investments’ global CIO of multi-asset solutions & CIO of EMEA, will be leaving in the next few weeks. He will be pursuing a leadership opportunity elsewhere, ending a 17-year tenure with the company. Brian Meath, MD & portfolio manager of multi-asset strategies, has assumed Caspar’s responsibilities effective immediately.

Financial Calendar

09.05 – TMX Q1 2016 Results

09.05 – Lending Club Q1 2016 Results

11.05 – DB1 AGM 2016

12.05 – Euronext AGM 2016 & Q1 2016 Results

12.05 – Oslo Børs VPS Holding ASA AGM

13.05 – ICE AGM 

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

Analyst Notes

ICE Stock Could Rise 15%
Andrew Bary – Barron’s

Sprecher has built ICE into a formidable financial-exchange conglomerate. The shares look cheap.

A full table of current analysis can be found on our Analyst Ratings page which is updated daily.

Other stories

Bloomberg Seeks Accreditation As A Local Operating Unit Of The Global LEI System



Disclosure In The Digital Age: Time For A New Revolution, SEC Commissioner Kara M Stein, Denver, Colorado, May 6, 2016



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