MAY 19 2017

It will disappoint many correspondents that there is (sort of) a Porsche 998. The number was first deployed for the design of what became the 911 series successor to type 997. However, given the weight of parish correspondence, predominantly from the UK, it would be remiss of me to omit from correlating this issue with a great British engine! 998 is indeed the cc of the engine used in all manner of wondrous machines from Mini Coopers (and indeed the stunning Downton Mini) not to mention that other Paddy Hopkirk competition weapon of choice, the Speedwell Austin A35…and so many many more wondrous British machines.

Congratulations to Ken Farrugia and all the Finance Malta team for a magnificent 10th anniversary conference yesterday, a packed audience, speeches from PM, Fin Min and a host of others. It was my, and I might add, Mrs Young’s, honour to be amongst the roster of speakers. Plaudits to Leonard Bonello of Ganado amongst many who intervened with excellent points on the distributed ledger discussions too.

Prosperity UK Video

Prosperity UK Panel – Brexit, Euro Clearing & Financial Market Structure: panel ably chaired by Barney Reynolds headlining parish luminaries Jeff Sprecher and Michael Spencer, with one Patrick L Young lurking in the background – perhaps the ‘hot button’ parish topic in derivatives of the moment…

In Today’s Exchange Invest

Good results from Euronext once again.

In Frankfurt, investors had quite the dust up with DB1 management after the Merger of Equal Desperation fiasco at the AGM it seems, while the FT sees Euro clearing as done and dusted in favour of their paymasters in Brussels.

And there’s more, happy scrolling:

In BigWorld

The Conservative Party manifesto may not be as entirely left wing as some feared. Sadly the Labour Party manifesto entirely is.

Incidentally, amongst other candidates, the Times reports Michael Spencer’s son is standing for Parliament in the West Ham constituency…probably an outside bet but a good starting constituency for his political aspirations methinks.

Public Markets

Euronext Publishes Q1 2017 Results

PLY: Investors may already have factored the good news in (hat tip: Peter Lenardos at RBC), particularly after last months gallop up in the Euronext share price but the parish business folks ought to note the strong groundswell of business across the Euronext franchise as the business continues to deliver strong returns.

Why Volcker Rule Review Is Music To Bankers’ Ears: Quicktake Q&A

Europe Nears Decision On Base For Euro Clearing
Financial Times

Next month the European Commission will recommend whether or not a prized business in the City, the €850bn-a-day clearing of euro-denominated derivatives, should be based in the eurozone.

PLY: Bugle rolls over on the rug and asks the EU to tickle its tummy while wagging its tail obediently to whatever Brussels asks.

In other news, Canute has said he will be retaking back tidal control after issuing a directive next month.

Brussels to back Euro Clearing Relocation After Brexit, Warns Euronext

PLY: Given the political undercurrent of Euronext’s pedigree (after all the day a non-Frenchman runs it look out for telltale signs of hell freezing over and a torrent of manure dropping from the pigs overhead), the Euronext remarks are remarkably mellow but they suit the FT’s quest to get another bar on the Legion D’Honneur of their disgracefully biased pro EU coverage of all issues.

Bourse Chairman Feels The Heat
Handelsblatt Global Edition (subscription)

PLY: Good thing too, none of the C-suite at DB1 have demonstrated any capacity to do more than feed their old friends at the investment banks with fees for nebulous deals which could not be consummated.

Deutsche Börse Boss Blasted By Investors For Not Factoring Brexit In Failed Lse Deal

“At Deutsche Börse’s annual meeting in Frankfurt yesterday, shareholders refused to give their seal of approval to Mr Kengeter’s performance over the previous 12 months, other management board members suffered a similar fate.”

PLY: Ultimately the circa 80 million Euros of direct cost washed down the toilet to the investment banks and sundry (useless) PRs et al is only a tiny element of the way in which DB1 made it transparently apparent that the very top tier of management has no vision to run an exchange other than doing deals. A mass cull is required, the C-suite is way beyond past its sell by date at DB1 and the unseemly hanging on of those parties, whether in danger of prosecution for insider dealing or not, is bringing a reputational risk to the parish as a whole.

EU To Announce Capital Markets Union 2.0 On June 7

PLY: How better to waste time in the bureaucratic muddle of Brussels than to say CMU2 is coming when CMU1 doesn’t exist yet. Sub-zero management focus a big worry now in the EU…the bloc is adrift of world finance just when the EU remains far far too low in growth. This looks like more navel gazing when we action is long overdue.

FIA Europe Warns Of Big Costs If Euro Clearing Leaves London

PLY: Good point on guarantee fund sizing AKA the banks being asked to effectively double their waterfall in order to salve a few political egos in Brussels. Would also really help the real economy just at the point where bank bad debts are still in danger of making big headlines amongst undercapitalised banks.

Brief- Japan Exchange Group Completes Share Repurchase

BM&F Bovespa : Notice To The Market – Clarifications On News Report

PLY: When will B3 be free of its legacy Bovespa deal tax investigation?

Opinion of the GPW Supervisory Board on the Exchange Management Board proposal of the Warsaw Stock Exchange 2016 profit distribution

PLY: Cynics will boil this down to ‘give the government as big a dividend as they want and then we might get to keep our jobs…Thus 70% of profits are heading into the dividend arena. Poland’s privatisation period has turned into a front for government funding behind a thin veil of private enterprise.

Private Markets

Lao Stock Exchange Gives Public An Insight Into Its Operations

Romanian Gas Hub Overhaul Misinterprets EFET Hub Model

National Settlement Depository of Russia Sums Up Q1 2017 Results – The Value Of Assets Under Custody Grew 11% And Reached Rub 35.2 Trillion – 635 Shareholder Meetings Were Initiated Via E-Proxy Voting Technology
National Settlement Depository Launches A Service For Prioritizing Instructions When Settling Securities Transactions

Special Section: FTI, NSEL, India at the Crossroads

NSEL Investors Get SFIO Mail
Financial Chronicle

The Serious Fraud Investigation Office (SFIO) has sent a detailed set of questionnaire to all the 1300 investors in the National Spot Exchange (NSEL).


Nothing came even close to tickling any digital spots today…


China Plans To Open Up Commodity Trading To Foreigners To Bring Down Prices

PLY: Fascinating news – India take note…

ICAP Relative Value Team Offers Eris Swap Futures – ICRV Adds Eris As Electronification Grows In Fixed Income

PLY: Another incremental boost for the independent SEF leader Eris Exchange.

Luxembourg Stock Exchange Extends Green Universe To SRI

No Aramco Listing Too Horrible For LSE To Contemplate
Financial Times

PLY Well the C-suite wasted a year in utter denial about the Merger of Equal Destruction, so “plus ca change” as they apparently say beside the tea trolley in Paternoster Square, another topic too horrible to contemplate right up there with that LCH systems upgrade and…

Career Paths

The former head Of NSSMC Regulator, Oleg Brain was re-elected Chairman Of The Supervisory Board Of The PFTS.

The Baltic Exchange has appointed Janet Sykes as Chief Commercial Officer.


Golden Opportunity? Precious Metal-Secured Peer-To-Peer Lender Gets Authorised

Other Stories

I think that’s just enough for today…
We’ll be practising drumrolls all weekend, look forward to Issue 1000 of Exchange Invest, due Tuesday…

In the meantime, have a great weekend.

All the best,


Patrick L Young
Executive Director DV Advisors

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