May 23 2013

elb2 A veritable butcher’s picnic miscellany of stories today, all rather important in their own way. The battle for IPOs is fascinating as it appears to skew NYSE’s way while once again Russia is in the headlines, gradually opening its markets to the world…

Comments by yours truly (PLY) have been added beside several stories…

Public Markets

CME Preliminary Annual Meeting Results

Daily Markets

CME Group Inc. (NASDAQ:CME) today announced the preliminary shareholder voting results from its 2013 annual meeting.
At the meeting, shareholders:
elected Terrence A. Duffy (first elected: 1995), Charles P. Carey (2007…CBOT 1993…), Mark E. Cermak (2007, CBOT 2000…), Martin J. Gepsman (1994), Leo Melamed (2001 in current guise but goes back to 1960’s), Joseph Niciforo (2007), C.C. Odom II (2007, CBOT 2000..& CME 1979-1982), John F. Sandner (1978) and Dennis A. Suskind (2008) each for a one-year term expiring in 2014;
ratified the appointment of Ernst & Young LLP as our independent registered public accounting firm for 2013; and
approved, by advisory vote, the compensation of our named executive officers.

PLY: Congratulations to those elected. Above I added the year since members have been elected and continuously serve. The size of the board was discussed yesterday. Does it really promote good corporate governance to have directors with such lengthy experience on board? This legacy of club status surely needs to addressed. I’m not against experienced directors but surely a sound mix would include some newer blood?

On a conservative basis (i.e. not looking at previous terms which were non-continuous), the directors re-elected have been on the CBOT/CME board since mid 1997 back when barely a few hundred traders were online…

US: Investors Sue Exchanges

Businessweek

Citadel Securities LLC, along with three other investment firms, sued CBOE, ISE, NYSE Arca, NYSE Amex and NASDAQ’s Philadelphia SE over claims the exchanges systematically overcharged or wrongly assessed fees on trades.

REGIS-TR And National Settlement Depository(NSD) Sign MOU

REGIS-TR, the European Trade Repository owned by Clearstream (Deutsche Börse Group) and Iberclear (BME), and National Settlement Depository (NSD), the Russian Central Securities Depository, have signed a Memorandum of Understanding (MOU) to intensify their cooperation on the mutual exchange of information.

PLY: More progress as Russia’s NSD continues working hard to make their markets as accessible as possible to foreign investors.

CME chairman takes credit for MF Global response

Crain’s Chicago Business

The chairman of CME Group Inc. said the futures exchange made the right decision when it declined to reimburse customers of the failed MF Global Inc. because those customers have recouped close to 99 percent of their $1.6 billion in lost funds through the bankruptcy process.

PLY: Not a big story but Terry Duffy & CME Management deserve credit for holding firm here when a lot of people thought they ought to have bailed in MF account holders. Long-term the policy helps reduce extraneous investor risks in exchanges although naturally short-term it may have harmed CME volumes.

CME vows not to sway membership prices after MF Global sales

Reuters

CME Group Inc will never influence the price of its memberships, Executive Chairman Terry Duffy said on Wednesday after seats formerly owned by bankrupt broker MF Global Holdings Ltd were sold cheaply.
Membership prices “go up and they go down and that’s the way they’ve done it for a lot of years,” Duffy said at an annual shareholders’ meeting in Chicago.

NYSE Clubbing Nasdaq in the IPO Fight

Investorplace.com

May has been a monster month for IPOs, with 22 deals hitting the market averaging a return of 13%. NASDAQ have 8 while New York Stock Exchange has hosted 14, not including four more that are slated to go live this week. Year-to-date, the NYSE has snagged 37 IPOs to the Nasdaq’s 26.

PLY: Of course IPO size may vary wildly but the raw number of IPOs must be very encouraging for NYX.

BM&FBOVESPA’s Socio-Environmental Investment Exchange
Lists Five New Projects Today

BM&FBOVESPA’s Socio-Environmental Investment Exchange (BVSA) presents on its www.bvsa.com.br portal today five new projects from Brazilian organizations ranging from BRL 30,000 to BRL 100,000. BVSA is a virtual donations platform for individuals and companies to contribute to social and environmental causes.

PLY: Somewhere between crowdfunding and Social Impact Bonds, an interesting development…

Private Markets

Meet HKMEx’s Chairman Barry Cheung (subscription)

Wall Street Journal (blog)

Mr. Cheung is a close ally of Hong Kong’s leader Leung Chun-ying and the chairman of the Urban Renewal Authority,

In addition to the Hong Kong government, Mr. Cheung also has close ties to Russian billionaire Oleg Deripaska whose En+ Group bought a 10% stake in the exchange in 2010.

PLY: I feel rather sorry for Cheung and HKMex. Brave innovators in the exchange space, nobody paid them much attention until they had a brush with the regulators…

FINRA to oversee Direct Edge’s surveillance

Thomson Reuters News & Insight

U.S. exchange operator Direct Edge will allow FINRA to oversee surveillance of its two stock exchanges, expanding the watchdog regulator’s oversight to over 90 percent of U.S. equity markets.

Technology

RTS Realtime Systems to Establish Data Center in Dubai with DGCX

Forex Magnates

RTS Realtime Systems has enhanced its network coverage by setting up its first Middle Eastern data center, co-located with UAE’s largest commodity exchange, the Dubai Gold & Commodities Exchange (DGCX).

GFI Group Builds Next Generation Trading

MarketWire

GFI Group Inc. (NYSE: GFIG), announced it will deploy Flash Memory Arrays from Violin Memory to increase the speed and capacity of its trading platforms across all assets classes.

PLY: A pertinent issue here is not just the latency factor but actually pure processing productivity. To tune up systems, there are some fascinating approaches out there for incresing raw processing power – one of them is presenting at our conference @YMarkets in June.

Redline Trading Extends Ultra-Low Latency Futures Trading Solution with Support for the ICE

WatchList News

Ultra-low latency InRush 3 Accelerated Ticker Plant and Execution Gateway now support market data and order execution capabilities on eight futures trading venues in the United States, Canada, and Mexico

Appointments

Millennium IT appoints new CEO

Automated Trader

Millennium Information Technologies, part of London Stock Exchange Group, has announced the appointment of former SunGard VP John Mackay ‘Mack’ Gill, as its new CEO.

PLY: Interesting hire for a business which has been travelling well of late. Elsewhere, I see that Stanley Young, formerly CEO of NYSE’s tech arm has left Bloomberg after less than a year.

Crowdfunding

Crowd funding and Banking

Finextra

PLY: An article, rightly pondering why banks are not on the crowdfunding bandwagon…then again why aren’t exchanges either?

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