May 13 2016

elb2Euronext dominates the headlines this morning. Their first deal of the new era is accelerating to fruition and, reading the runes, the message is hyper-clear. If you don’t follow, it’s explained succinctly in Premium: New Euronext New Deal: EuroCCP. (Subs remain Individuals User: $300 PA, for groups or full enterprise users, very healthy discounts apply…oh and it has to be said it is obvious those who don’t subscribe to our Premium content…)

Moreover, this morning Euronext announced their strategic growth plan – my thoughts are also in Premium:  Agility for Growth.

Elsewhere, it’s the ICE AGM while apparently there is a pigheaded perseverance towards an ugly antitrust denouement on the part of DB1 and LSE who will lose more time to focus on their business thanks to waiting until after the British Brexit vote to go to their shareholders. The fascinating thing to consider is how, even those bourses divorced by the ICE end up more progressive than much larger incumbents with avaricious investment bankers placed as management.

Listening to the flexibility of Euronext thinking on a call this AM as they began their first investor day was as wondrous to behold as the current major merger protagonists are, frankly depressingly analogue. The latter strike a single self-interested note again and again clearly without any clear perception of the world beyond their C-suite bunkers and fawning acolytes.

Then again if Euronext can reform, there is yet hope that even those who have spent a fortune digging their holes in recent weeks can find a way to become progressive in the best interests of markets and shareholders. In Bigworld, incidentally, the EU Competition Chief just killed a major UK mobile merger – the centre left Mrs Vestager is surely unlikely to find “compelling” what looks all too clearly as a too big to fail merger fallacy.

Public Markets

BM&FBOVESPA Q1 2016 Results


vs Q1 2015: net revenues R$ 563.5m, up 8.3%, operating income R$ 361.5m, up 20.9%, net income R$ 339.3m, up 21.4%.


Euronext Releases Its New Strategic Plan: “Agility for Growth”


Euronext in Exclusive Talks to Acquire 20% of EuroCCP


FAO:…Following the agreement reached this week with the Dutch Ministry of Finance on capital requirements.

PLY: Good news on both fronts – Euronext management has a passion to execute, and outlined their approach elegantly in a call this morning. Their exceptionalism of today could become the new norm (discussed in Premium New Euronext New Deal: EuroCCP & Euronext Agility for Growth). The most important news is a coherent approach which does not borrow from the dated ‘bulk is best, love your blob’ strategy” where misplaced messianic delusions seek to directly challenge sensible antitrust precepts.


Exchange Merger Architect Under Fire (subscription)

Michael Bracher & Jakob Blume – Handelsblatt

Some of DB1’s long-standing German shareholders who gathered Wednesday at the Jahrhunderthalle convention center in Frankfurt were not too happy about the prospect of being left behind as Carsten Kengeter held his first shareholders’ meeting this week in Frankfurt as CEO of DB1. If all goes as planned, it will be his last.*

(*PLY: Hopefully from what we have seen so far, when it all falls apart it will be his last too. Anyway back to Handelsblurb:)

Shareholders demanded answers publicly to what some bankers are asking privately in the German financial capital: “Why is the larger and stronger partner (DB1) shifting the headquarters of the new company to London?”

While Kengeter took flak for more than an hour from Frankfurt-based shareholders, approval of the fusion to create the world’s second-largest stock exchange is likely. Most of DB1’s shareholders are institutional investors based in Britain or the United States, which support the economic logic of joining forces in an era of declining sales.

PLY: So shareholders will probably gutlessly vote through a deal which is not in their best interests…that is a depressing sign of how Germany today is held in thrall by hectoring but questionably competent  individuals such as Mrs Merkel and Mr CarCrash.

LSE & DB1 To Hold Merger Votes After UK’s EU Poll


LSEG & DB1 will let shareholders decide on their proposed $30 billion merger after Britain’s June referendum on EU membership…

PLY: Great news to all DB1 and LSE competitors! Add at least 351 days for antitrust to say no (NYSE DB1 precedent) and we have the entire management of both LSE and DB1 tied up on a futile path with outrageous expenditure and no focus on growing their business, let alone actually integrating previous acquisitions or attending to the vitally important restructuring of the business, respectively.

DB1 CEO: Dual HQs Are Important Part Of DB1-LSE Merger


CEO says:

  • proximity to Bundesbank and ECB is what London needs
  • with this merger construct, we are pulling liquidity from our partners into the euro zone
  • the dual headquarter structure of Frankfurt & London is an important element to the whole merger structure
  • the UK staying in the EU and taking an active role in the EU is the preferred case

PLY: I know I say lots of things criticising CarCrash but given how many folks whose opinions I rate led me to believe he was competent, I know lots of readers share my disappointment. At last I can say something favourable to this story. Given this level of fantasy, I can only suggest the bedtime stories CK1 makes up for his children must be marvellous to behold. It’s a potential future career for him when hopefully we see his type leave the parish. (There is always a chance CK1 can reform and get onto a coherent track but I am sceptical: DB1 had management issues before he arrived and under his highly centralised management structure, the entity appear to now be pruning the areas of competence and permitting the dysfunction to extend).

QV Premium: DB1-LSE Merger Brief.


Flash Boys’ Lewis Takes On Citadel Over High-Speed Traders

Ronald Orol – The Street

Best-selling author Michael Lewis on Thursday disputed comments made by Citadel founder Ken Griffin about upstart trading venue IEX, arguing that in reality the billionaire was just “talking his book.”

Dividend News

BM&FBOVESPA – approved the distribution of R$169.7m in interest on capital, payment date June 6, record date May 23.

Oslo Bors – dividend of NOK 4.15 will be distributed on 12 May 2016, payment date  26 May.

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX and FTIL both slip 1% or so.


R3 Eyes $200m For Next Step In Blockchain Journey (subscription)

Anna Irrera – Financial News

Blockchain company R3 is looking to raise up to $200 million from its big-bank backers as it prepares to spin out part of its business, according to people familiar with the plans.

PLY: Big numbers for something antitrust will quite likely sooner or later view as an impediment to market competition?


CME Plans To List Copper Warehouses In Asia (subscription)

Metal Bulletin

CME has one fifth of global exchange traded copper.


Dalian Commodity Exchange To Halt Fee Discounts On Some Intraday Trades


China’s Dalian Commodity Exchange will restore full transaction fees on intraday soybean meal, corn starch, palm oil, and soybean oil futures positions.


ENSO Expands Product Offering With New Emerging Manager Platform


ICAP Group company ENSO Financial Analytics (ENSO), launched ENSO Edge, an emerging manager offering built from the award winning ENSO Core platform.


Interactive Brokers To Offer NextShares Exchange-Traded Managed Funds

Interactive Brokers


Launch Date For NZ Milk Price F&O – 27 May



Thailand Futures Exchange Launches Physical Delivered Rubber Futures Product “RSS3D Futures”



Autorité Des Marchés Financiers (AMF): Greater Efficiency & Transparency Of OTC Derivatives Market


Ontario Securities Commission Publishes Final Amendments To OTC Derivatives Trade Reporting



FTSE Mondo Visione Exchanges Index Up 0.4% In April – Four Exchanges Achieve Double-Digit Growth In Month


Career Paths

Cinnober 2016 AGM results – six board members re-elected: Nils-Robert Persson, Patrik Enblad, Cecilia Lager, Peter Lenti, Staffan Persson and Helena Westin. Nils-Robert Persson was elected as Chairman and Cecilia Lager was elected as Deputy Chairman.

Oslo Bors 2016 AGM results – all shareholder-elected members of the BoD were re-elected as members for a one-year period. In addition, Catharina Hellerud (CFO of Gjensidige ASA) was elected as new board member.

The shareholder-elected members of the BoD of Oslo Børs VPS Holding ASA are as follows: Benedicte Schilbred Fasmer (Chairman), Harald Espedal (Deputy Chairman), Ottar Ertzeid, Widar Salbuvik and Catharina Hellerud.

Russell Investments announced the formation of a new team within its investment division. The Global Client Strategy & Research (GCS&R) team. Kevin Turner, a 21-year veteran of Russell Investments, has been appointed to lead the new GCS&R team, reporting to Brian Meath, global chief investment officer, multi-asset solutions. Turner, who now holds the title of managing director, global head of Client Strategy & Research, most recently served as the head of consulting for the firm’s institutional business in North America.

LendingTree appointed Paul Tyma as new CTO.

The Australian reports that ASX appointed Korn Ferry to conduct its search to find a replacement for former CEO Elmer Funke Kupper, who quit in March in relation to bribery claims made in his previous job running Tabcorp.

Ashley Alder, CEO of SFC HK, was appointed as Chairman of the new IOSCO Board. Full composition of the IOSCO Board 2016-2018 – here.

The Board appointed Mr. Jean-Paul Servais, Chairman of the Financial Services and Markets Authority of Belgium, to replace Mr. Alder as Vice Chairman. Mr. Ranjit Ajit Singh, Chairman of the IOSCO Growth & Emerging Markets Committee, continues ex officio as the other IOSCO Board Vice Chairman. Mr. Singh  is the Chairman of the Securities Commission Malaysia.

Financial Calendar

13.05 – ICE AGM 

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

Other stories

CFTC’s Division of Market Oversight Extends Conditional Time-Limited No-Action Relief to Australian-Based Trading Platform Yieldbroker



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