MAY 2 2017

Back from the long weekend celebrated in many parts, we reach the wonderful month of May. Not only will Exchange Invest celebrate its 4th official birthday (preparing for kindergarten et al) mid month but issue number 1000 will be upon us very soon indeed…

There isn’t a 985 type Porsche to go alongside its number-sake Exchange Invest edition albeit the engine of the remarkable Type 64, (a racing car vastly ahead of its time when built in 1939) was precisely that of the original VW, at 985 cc.

In Today’s Exchange Invest

EU may be manipulating its way to Mutually Assured Destruction on CCP. Voting agencies split over DB1 AGM approach, ICE completes TMX Atrium acquisition as SGX is open to clearing APEX and there’s a lot more worth a scroll too…

In BigWorld

In the spirit of International Labour Day which was, naturally, marked yesterday by most of the nations with the largest labour problems:

Google CEO Sundar Pichai’s pay package was $200 million last year (oh alright, $199.7 million to be precise, according to Blomberg).

Or, to put that in comparison, Mr Pichai made more than the remuneration of all the world’s exchange CEOs public and private…*

*(Indeed there would probably still be change left over to cover the Goldman Sachs CEO $22 million package as well).

Public Markets

Shareholders Should Ratify Deutsche Boerse Board Actions At AGM – ISS

PLY: Glass Lewis says do not ratify ISS says to ratify but the caveat is panamax:

“In our view it would be premature for shareholders to consider what would be a hugely significant symbolic gesture by voting against discharge given the lack of clarity at this time, particularly in light of the fact that the discharge resolution is essentially a highly symbolic vote of confidence in Germany. Nevertheless, it should be acknowledged that the situation is evolving, and ISS may recommend against discharge in future if the German authorities bring charges against the CEO or in case of other significant concerns.”

One resoundingly lukewarm endorsement with posterior coverage warrant in place, one outright “no” vote alongside – these are troubling times for a DB1 which having been once desperate now looks becalmed.

Brussels Set For Power Grab On London Euro-Clearing
Financial Times
Exclusive-EU To Ease Burden Of Derivatives Rules, Holds Fire On Euro Clearing Changes

PLY: Contrasting articles book-ended the weekend! Like so much emanating from the scare factory of Brussels, this is long on worry factor and short on detail. Ultimately currency protection is hard work, not to mention highly counterproductive in a global economy. So much fo the 4 freedoms, in Euro clearing the EU shows itself to be precisely what Britain voted to leave, a blob at odds with freedom, free marketsand free trade.

Intercontinental Exchange Completes Acquisition of TMX Group’s Atrium

NZX Q1 Revenue Dips 1.7% As Agri Sales Slide
The National Business Review

Lord Copper: LME’s Chamberlain Can Steer Exchange On Middle Course (subscription)

Singapore Bourse Offers To Link Up With Chinese Futures Trading Venture
Financial Times

PLY: Pragmatic words from SGX CEO Loh Boon Chye as he offers to provide a CCP for the proposed Singapore based Apex derivatives exchange.

Japan Exchange Group Status Of Acquisition Of Own Shares

Leucadia Announces $130 Million Markdown On FXCM Equity Investment
FinanceFeeds (blog)

PLY: Elsewhere in the media rumours have suggested Drew Niv may still be more closely involved in the running of some elements of FXCM than, say, the CFTC might find comfortable.

Private Markets

Tradeweb Launches All-To-All Corporate Bond Trading
PR Newswire (press release)

NSE IPO To Take A Few Months: Sebi
Financial Express

Merger Of The Two Stock Exchanges – SIX Swiss Exchange Absorbs SIX Structured Products Exchange As Of 2 May 2017.

PLY: In-house absorption into one licence for SwX due to regulatory fiat.

Calcutta Stock Exchange’s Lone Battle For Survival
Business Standard

PLY: SEBI’s shortsighted strictures have forcibly closed all but Calcutta amongst regional Indian equity markets but Calcutta is fighting on, good luck to the exchange.

Zimbabwe Stock Exchange Moves to T+3 From T+5
Zimbabwe Consolidated News

‘Lagos Commodity Exchange ‘Ll Boost Agribusiness’
The Nation Newspaper

Special Section: FTI, NSEL, India at the Crossroads

Magistrate Court Accepts C-Summary Report That Rules Out Rs 900-Cr Mcx Fraud Alleged By PWC
Live Law

Sebi Issues Fresh Showcause Notice To Brokers In Rs 5600 Cr Nsel Case
Deccan Chronicle

NSEL Scam: Sebi Audit Finds Lapses At 5 Brokers
Business Standard
In the NSEL case, brokers are facing allegations of mis-selling NSEL contracts by promising too high returns without ensuring delivery. They are also …

SEBI To Decide On NSEL Case Soon
Economic Times


Shanghai Gold Exchange: May 2 Launch Of The Gems-2 Trading System

BSE Launches Disaster Recovery Centre In Hyderabad
Financial Express

TriOptima Launches triCalculate MVA Service As Part Of Its XVA Analytics Suite – Tricalculate Leads The Market In Offering A Margin Valuation Adjustment (MVA) Service That Facilitates Accurate Pricing Of Whole Portfolios And New OTC Derivative Trades


BOE’s LIBOR Alternative Sonia Backed As Benchmark By Dealers

Moscow Exchange Will Change The Tick Size On The Stock Market Since May 2, 2017

JSE Derivatives Rules

EGX Suspends Trading On Cairo Oils
Mubasher Info

The Egyptian Exchange ( EGX ) has suspended trade on the stock of Cairo Oils and Soap.

How ICOs Can Help Real Economy: The Case Of Funding Factory Construction

Career Paths

Mark Morrison, formerly with State Street Corporation and several government defense and security agencies, has joined OCC as Senior VP and Chief Security Officer – a new position – reporting to John Fennell, Executive Vice President and Chief Risk Officer.

Alliancebernstein Refuses To Give Specifics On CEO’s Ouster
New York Post

PLY: In the ‘practice what you preach department’ this is a fairly epic fail as France’s AXA (64% shareholder) terminated the employment of the CEO Peter Kraus and named JPMorgan Asset Management executive Seth Bernstein as his replacement (former World Bank President Robert Zoellick becomes chairman).

Given that Alliance Bernstein reported earnings last Thursday and that AXA also summarily removed the 9 non-executives from the board one is minded to note that neither AB nor AXA are commenting in any detail… That old buyside mantra about management transparency being good for investors springs to mind.


Horlick Pays Up To Keep Film Firm In The Picture
Evening Standard

Other Stories

The Volcker Rule, CCP Resolution And Systemic Risk Measures (subscription)

FIA And FIA PTG Oppose Overly Prescriptive Regulation Of Automated Trading
…So I made it back to Malta escaping the general election hype to discover that we’re going to the polls here too in a month…

Thank you for reading Exchange Invest.


Patrick L Young
Executive Director DV Advisors

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