MAY 26 2017

Welcome to Issue 1003 of Exchange Invest which is sandwiched between Ascension Day and Memorial Day (with the French clearly not troubled by turning up on a ‘pont’ day). Actually Monday is a UK Bank Holiday too so I’m going to have a day off your daily benchmark resource for exchanges too, back Tuesday…

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

XavRol back to complaining about clearing now he has (re?)-joined the Eurosceptic side post referendum. GMEX does a deal with MSE which includes warrants on 5%, while a ‘last look’ as the FX code of conduct reveals it was alas all a bit of a sham. LBMA launches code of conduct for London gold trading. CSRC appears to equivocate on Bond futures trading by banks.

And there’s more, happy scrolling:

In BigWorld

In Bigworld, President Trump went to Brussels and addressed the collective underpayers of NATO – it made for entertaining viewing as they all squirmed at the national stinginess from the lowlands across Germany et al. Quite right too, many European nations expect a free ride from the USA – Germany perhaps the most egregious in absolute terms. Perhaps the UK can have a rebate in Brexit for supporting the EU’s defence where much of the EU has shirked the spend?

(Curiously the home page of the Brussels Bugle leads with Angela Merkel meeting the man enjoying the most lavish retirement trip in history, Barrack Obama (rumours he has been so busy holidaying he has played less golf than when he was in the White House are unconfirmed). It’s almost as if the last year or so just didn’t happen in the legacy media as they yearn for a golden era that wasn’t).

Public Markets

Vanguard Says Currency Markets Fall Short In Curbing ‘Last Look’

PLY: A #Disappointing last look. After all the hype with the release just as Exchange Invest rushed to pixel, it transpires the forex working group couldn’t spot transparency and sound practice amidst a swathe of bon mots. Last look isn’t dead and the forex industry is going to suffer heavier regulation methinks. In true ‘last look’ fashion, I withdraw all words of praise yesterday. That IOSCO are praising the code today is embarrassing.

HkEX’s Li Says Bourse To Launch Consultation On ‘New Board’ Next Month
Speaking at a private equity event in Hong Kong…

Polish Stock Exchange Marks 200Th Anniversary

The Warsaw Mercantile Exchange (Giełda Kupiecka) was established in 1817. It was one of the first modern stock exchanges in Europe.

LSE CEO Sees Systemic Risk If London Loses Clearing
London Stock Exchange Boss Fires Eu Politicians Euro Clearing Warning: “You Protect, You …
City A.M.
Rolet: Europe Must Fix Euro Before It Can Move Clearing
The Times (subscription)

PLY: Europe “has not been competitive for decades” notes Rolet…which leaves us all wondering why such an advocate for free markets was so eager for Britain to remain in the EU in the first place, let alone his desperate merger plan which involved being a rampant monopolist in an uncompetitive protectionist trade bloc – in retrospect, the latter all sounds horribly 1970’s African or South American as a master plan…

I wholeheartedly agree with the concept of fixing the Euro but that is regardless of what happens to clearing! Having a broken political dream as a core currency for hundreds of millions of the world’s wealthiest is bad for the world and the EU is willfully incapable of solving any of its own problems, leaving a generation of potential workers on the scrapheap of Euro hubris.

NEX Group Senior Executives Receive $15 Million In Shares As Bonus Compensation

FXCM Reports Mixed Results For Q1 2017 And Full Year 2016
Finance Magnates
FXCM Due To Answer To Complaints In Murrah Case By June 9, 2017
FinanceFeeds (blog)
FXCM Group Provides Financial Information For Full Year 2016 And Q1 2017
GlobeNewswire (press release)

Private Markets

London’s GMEX to Pick-Up 5% Stake In Metropolitan Stock Exchange
Economic Times
MSEI & GMEX Agree To Collaborate In Exchange Space In India – To Deliver Innovative Products For Existing And New Trading Segments In Indian Capital Market – This Partnership With MSE Is GMEX’s First Strategic Partnership In Indian Market

PLY: A potential upheaval in India – it will be interesting to see if Hirander Misra and his team can help the MSEI propel itself forward from its quasi perma-torpor.

Special Section: FTI, NSEL, India at the Crossroads

No news today.


Wolverine Execution Services Bridges The Gap Between Voice And Electronic Trading


CSRC Likely To Allow Banks To Trade Bond Futures
South China Morning Post

PLY: Interesting phrasing to put it mildly.

London Bullion Market Association Launches Code Of Conduct For Precious Metals Markets

PLY: An interesting paper issue in various dimensions. At least it doesn’t appear to have any last look provision…

Tel Aviv SE Launches Harel, Partner And Cellcom Stock Options

Cleartrade Exchange Bets On Global Freight Growth
TradeWinds (subscription)

NCDEX Takes Measures On Coriander Futures
Financial Express

Career Paths

The SEC has named Peter Uhlmann, Managing Executive In the Chairman’s Office

The Alberta Securities Commission has announced Of Three New Commission Members, Trudy Curran, Karen Kim and James Oosterbaan.

DB1 Index provider STOXX has opened an office in Hong Kong and appointed Jay Lin as Sales Director for Greater China.


Zopa To Revamp Peer-To-Peer Lending Model
Financial Times

PLY: Dropping of the backstop provision fund after remarks by FCA’s Andre Bailey…

Other Stories

China’s Securities Regulator Fines Top Brokerages For Breach Of Margin Financing Rules
South China Morning Post

ASIC Proposes Next Steps On Regtech

ASIC Reports On Promoting Better Conduct In The Wholesale Spot Foreign Exchange Market
Enjoy your long weekend if you reside in a qualifying jurisdiction (not that I do but whether Malta is open or not doesn’t overly influence the parish), Happy Memorial Day and most of all here’s to a cracking Indy 500 Sunday, I doubt Fernando Alonso will come close in the final reckoning but he adds more spice to what looks like a cracking race…

Have fun.


Patrick L Young
Executive Director DV Advisors

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