May 24 2016

elb2Great news from Austria and Chicago. In Vienna, Christoph Boschan will head the exchange while Eris must have been popping champagne corks last night with an investment from CBOE delivering some welcome additional resources and optionality, not to mention further brand validation for the most successful of the pure startup SEFs…

Meanwhile I have just arrived in Malta where I have some meetings and private briefings before I speak the Finance Malta May 25/26 conference on a FinTech theme. Meanwhile the FESE Convention, is upcoming at the same venue, Malta, 15/16th June while ICDA have already delivered a discount code for their upcoming CyberRisk conference in London, July 20th: Secure a place at GBP 295 with the code YOUNG295.

Public Markets

CBOE Takes Equity Stake in Eris Exchange & Companies Announce Strategic Product Partnership

CBOE

CBOE has made a minority equity investment in Eris Exchange. Eris is a U.S.-based futures exchange group offering swap futures as a capital-efficient alternative to OTC swaps. Concurrent with this investment, CBOE will join Eris’ board of directors.   

QV Premium: Exchange Deals Brief 2.

PLY: Amidst the myriad of new age swapsters, Eris has something. It’s not je ne sais quoi, it’s not exotic, it’s the simple DNA of markets: regular volume and a coherent daily liquidity pool. That marks it out as something special amidst currently varied results in SEF-world. Plaudits to Neal Eris and his team, not just on this welcome cash investment by CBOE but also the success of Eris to date.

For CBOE, an interesting journey and not clear it is holistically linked to their Curve investment earlier this year but it shows that the exchange Bill Brodsky will leave next year is a much broader enterprise than the one he first joined as CEO. The Brodsky doctrine has built a basis for Ed Tilly to further enhance the scope of CBOE. Interesting.

 

Hellenic Exchanges Q1 2016 Results

MondoVisione

vs Q1 2015: consolidated net after tax profits EUR 1.9m (USD 2.1m), down 54%.

PLY: Hellenic Exchanges continue to struggle against a horrific domestic economic backdrop. The exchange itself remains a coherent business, the difficulty is the Hellenic Republic.

Private Markets

Pakistan To Sell 40% Of Stock Exchange End-2016/Early-2017

Reuters

Pakistan plans to sell a 40% stake in its stock exchange in coming months, and Turkey’s Borsa Istanbul has expressed some initial intent. The sale will happen at the end of this year or in early-2017…

 

NCDEX Hires MM Chitale For Forensic Audit To Look Into Castor Seed Trading

Jayshree P. Upadhyay – Livemint

The forensic audit had followed a directive from the capital markets regulator Sebi.

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX slightly down, FTIL off 2%.

Company Law Board Hears FTIL Plea On Modifying Interim Order

Sayan Ghosal – Business Standard

The principle bench of the Company Law Board (CLB) on Monday heard FTIL plea for modification of its interim order on managerial mismanagement of NSEL scam.

NSEL Brokers In Probe Net

BW

An investigation into the role of brokers in the NSEL case was warranted as it was not the only entity responsible for the payment crisis; brokers too were part of this narrative.

PLY: Enough surely of investigations, isn’t it a tad past the time to push for restitution?

Technology

CME Upgrade Soothes Critics Who Viewed Prior System as Unfair

Brian Louis – Bloomberg

Under the old system, data connections that linked customers to CME had noticeably different speeds, opening up the potential for gaming, according to traders and other experts. Those who knew how to gain faster access could increase their odds of being first in line to trade.

The new design appears to stamp that out.

Products

LCH Spider Goes Live

LCH

LCH launched LCH Spider, its portfolio margining tool for interest rate derivatives. The go-live follows receipt of all necessary regulatory approvals. Eligible members and clients using LCH’s SwapClear and Listed Rates services can now offset margin between OTC and listed interest rate derivatives.

PLY: Another lovely theory. In practice can it deliver?

 

CME Bids To Boost Its Metal Storage Network, Challenge LME

Pratima Desai & Eric Onstad – Reuters

CME is talking to several warehouse companies to expand its metal storage network globally, a move that could further challenge LME’s dominance.

 

HKEX To Work Quickly To Build A China Bond Connect Scheme

Reuters

HKEx CEO Charles Li said on Tuesday he will “work very quickly” to build a bond trading scheme with China similar to Shanghai-Hong Kong Stock Connect, launched in 2014.

QV Premium: HKEx – SSE – Stock Connect Brief Part 4.

PLY: Exciting stuff.

 

EBS BrokerTec Completes Rebrand Of EBS Treasury; A Multi-Product Platform For Corporates

ICAP

 

HKEX to Introduce Additional RMB Currency Futures on 30 May

HKEX

HKEX has received regulatory approval to introduce its planned cash-settled Euro-Renminbi (RMB), Japanese yen-RMB, Australian dollar-RMB and RMB-US dollar futures on Monday, 30 May 2016.

 

Spanish Exchange Latest To Launch Weekly Options (subscription)

FOW

Spanish derivatives market MEFF will start trading weekly options on June 29..

Indexes

HKEx Plans Indexes Tracking Yuan Against Currency Baskets

Eduard Gismatullin & Kyoungwha Kim – Bloomberg

HKEX & Thomson Reuters Sign Agreement for New Index Series

HKEX

HKEX and Thomson Reuters signed an agreement for the creation of a new series of Renminbi (RMB) indices.

 

Taiwan To Launch Futures Contracts For U.S., India Benchmark Indexes

Roger Tung – Reuters

Taiwan Futures Exchange is planning a futures contract for India’s Nifty 50 by the end of this year at the earliest or H1 2017, Tsai Shih-chuan, VP of Taiwan Futures Exchange, told Reuters.

Tsai said the plans are to launch futures on the DJIA and S&P 500 at the end of 2017 at the earliest.

Career Paths

The Supervisory Board reached a decision on the management boards for Wiener Börse & CEESEG. Christoph Boschan, currently joint-CEO at Börse Stuttgart and board member at EUWAX, was presented as designated CEO. Petr Koblic, CEO of the Prague SE, was named CFO. In his joint role as COO/CTO Ludwig Nießen will be responsible for operations and IT. The new team succeeds the current Management Board members of the Vienna Stock Exchange, Birgit Kuras and Michael Buhl.

PLY: A swift demise for Birgit Kuras and Michael Buhl but hardly unexpected, even for a Germanic supervisory board. The Vienna SE desperately needs a change of direction and it was clear with both the deeply flawed Vienna-Warsaw merger proposal and the recent sell-off of Slovenia & Hungary from the failed ‘Hapsbourse’ empire strategy that CEESEG was adrift. Christoph Boschan is an excellent choice for the position and my heartiest congratulations to him – this is great news for both parties! Petr Koblic may be disappointed but he has at least been made CFO which would infer a sale of Prague is not on the cards – yet – but clearly Christoph must be given free rein to radically rethink the moribund bourse which lost its options market to DB1 amongst other tactical failings in recent years.

 

National Futures Association (NFA) announced that President & CEO Daniel Roth has announced his plan to retire in the coming year. NFA’s Board of Directors has authorized the formation of a committee to conduct a search for his successor which will consider both internal and external candidates.

Statement Of CFTC Chairman Timothy Massad On The Announcement That Dan Roth Will Step Down As President & CEO Of The NFA

MondoVisione

Statement Of CFTC Commissioner Bowen On Dan Roth’s Departure From The NFA

MondoVisione

 

Cecilia Harvey joins OpenFin as Director of Account Management. Leigha Ruiz assumes the role of COO Europe.

 

OpenDoor Trading has appointed Robert Grillo as its President.

 

LeapRate reports that Gain Capital institutional fx trading arm GTX has hired David “Doc” O’Connor and Jean Darsses as senior sales executives to support its registered swap dealer.

 

CPC Central Committee, State Council Makes Appointment, Dismissal For Shanghai SE Officials

MondoVisione

“On May 20, the Shanghai SE (SSE) held a cadres’ conference to declare the decisions of the CPC Central Committee and the State Council: Comrade Wu Qing holds the position of Party Chief of the SSE, and is nominated for Chairman of Board of Governors of the SSE (at the level of Deputy Minister); Comrade Gui Minjie, due to his age, no long holds the positions of Party Chief & Chairman of Board of Governors of the SSE. According to the legal procedures, Wu Qing is elected Chairman of Board of Governors of the SSE at the 65th meeting of the 3rd Board of Governors.”

Financial Calendar

25-26.05 – Finance Malta Annual Conference

26.05 – Oslo Bors NOK 4.15 dividend payment

27.05 – Record date TMX $0.40 dividend

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

Crowdfunding

Shanda Group Buys 11.7% Stake In Lending Club

Ciara Linnane – MarketWatch

PLY: Not all gloom and doom in the P2P world then…

Other stories

HKEX CEO Charles Li: Latest Charles Li Direct: Three Steps To Developing Our Fixed Income & Currency Business

MondoVisione

 

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