MAY 3 2017

Issue 986 of Exchange Invest coincides with the type number of that elegant Porsche roadster the Boxster…

It’s a big month for Exchange Invest incidentally – 4th birthday will be officially celebrated May 15th while the 1000th Issue is scheduled for May 23rd…unless any unexpected events prompt an additional bulletin between now and then!

In Today’s Exchange Invest

Euro Clearing palaver scoops the headlines, albeit facts seem to be absent in a war of words which is only marginally more considered than, say, average football terrace banter. At least LSE/LCH is trying to cut through with some logical comment.

New SEC Chairman confirmed alongside a new board slate at Borsa Italiana and much more.

…Oh and don’t forget to keep an eye out for the ICE results today.

In BigWorld

RIP Harry Huskey, a computer pioneer who once had two (American sized) fridge cabinets at home in what was deemed the world’s first personal computer (largely because just one person could operate it all on their own!).

Hats off to a remarkable centenarian who played a remarkable role in shaping the IT we today so take for granted.

Public Markets

ASX Q3 Update

PLY: Arrived just as EI was racing to pixel, the update from ASX which will be presented at a Macquarie conference in Sydney tomorrow morning local time.

London Stock Exchange Attacks EU Grab For Clearing Post-Brexit

PLY: Article also quotes Michael Spencer’s excellent remarks during the Prosperity UK conference panel last week. LCH focus on liquidity splitting is a sensible approach amidst the hysteria in many parts.

EU Will Suffer: London Stock Exchange Hits Back At European Commission’s Clearing Proposals

PLY: Houston U. Professor Craig Pirrong, hits the spot: such proposals “make the EU look like dirigiste opportunists, cloaking a grab for business and power in high-minded rhetoric about financial stability”.

Key Questions For City Over Post-Brexit Euro Clearing
Financial Times

PLY: Even as the media Euro CCP debate remains a shark jumping spectacular, the FT reaches a new paradigm, actually not understanding the basics of free markets. Consider this gem of a sentence: “Ever since the EU allowed London to clear euro-denominated swaps…” – thus we now know that the FT is in fact a newspaper of the command economy and the Brussels Bugle having failed to follow the simple math of markets… Needless to say the questions which need to be asked are absent in this article.

Eurex Geared For Euro Swaps Clearing Ruling
The Trade

PLY: Many remain unconvinced by the German bankruptcy law system – and the last few times anybody seems to have asked DB1, they just got annoyed about being asked…

New York Could Win From London-Brussels Dispute On Euro Clearing

PLY: Could? Make no mistake the vast bulk of Euro swaps are now going to assiduously avoid clearing within a protectionist environment. Thus the EU is in danger of slitting its own throat through economic naivety.

A Pool Table In Philadelphia Shows NASDAQ’s Thirst For Talent

PLY: A slight ramble around the future direction of NASDAQ, its orientation towards Philadelphia, that there may be financial life beyond Wall Street and so forth…

London Stock Exchange Group Plc: Transaction In Own Shares
London Stock Exchange Group Plc – Total Voting Rights

Private Markets

TISE Launches Channel Islands And Isle Of Man Segments

PLY: The Isle of Man gets its own stock market segment via the Channel Islands.

Special Section: FTI, NSEL, India at the Crossroads

No news today.


LME Locates Trading Platform At Interxion Data Centre


Nasdaq OMX Armenia Conducts First Auctions Of Government Bonds

PLY: This evening I intend to open a delightful Armenian premium brandy to toast the exchange on this milestone.

DTCC Repo Clearing Services Gain Regulatory Approval

Career Paths

Former TSX President “A True Visionary”
Investment Executive

PLY: Condolences on the passing of a remarkable TSX CEO, the longest serving in its history, John Pearce Bunting, “During his tenure, Pearce was a true visionary and marketplace innovator, leading Toronto Stock Exchange to defining, historic achievements,” the TMX Group Ltd. said in a statement. Bunting led TSX from 1977 to 1994 and oversaw the introduction of the CATS computer assisted trading system in 1977 as well as the world’s first ETF, the Toronto 35 Index Participation Fund, in 1990. It’s a sad month for TMX as former Chairman Duff Scott passed away a few weeks back.

In Washington, Walter J “Jay” Clayton III has been confirmed as Chairman of the SEC, it will be interesting to watch how he moves to render the US equity market mess a tad more sane.

In Milan: Borsa Italiana has elected its new board for a 3 year term, composed of Barbara Alemanni, Nicolas Bertrand, Chris Corrado, Mark Hoban, Raffaele Jerusalmi, Marina Forquet Famiglietti, Alessandro Foti, Andrea Maldi, Paolo Marchesini, Massimo Mocio, Claudia Parzani, Francesco Perilli and Andrea Sironi. Andrea Sironi has been confirmed as Chairman and Raffaele Jerusalmi as CEO with Claudia Parzani being appointed Vice-Chairman.

Over in Frankfurt, readers will recall that DB1 has a hiring freeze (indeed it was given as perhaps the weakest reason yet why CK1 ought to be retained as group CEO). Imagine the surprise therefore when we find another investment banker joining the company (presumably they hired him before the big freeze)… On May 1, Romanos Daniel took on the role as Chief Innovation Officer at EUREX, taking on the position first created for DB1 veteran Brendan Bradley.

In Sydney: Yieldbroker has appointed Anthony Robson with effect from today as CEO filling the space left vacant by the retirement of founder CEO Richard Swift. In a long career on the sell side, Anthony represented UBS as a shareholder nominee director on the Yieldbroker board as far back as 2002.

In New York: Former BATS Bats’ EVP, General Counsel and Corporate Secretary Eric Swanson has joined market maker XTX as CEO-Americas according to Finance Magnates.


Finmomenta Launches P2P Lending Platform ‘Tachyloans’
Deccan Chronicle

PLY: It must be added that to an Anglophone ear, I am not immediately convinced “Tachyloans” is a brand with global potential…

Other Stories

NZX: Initial Disclosure Of Senior Managers’ Relevant Interests
Happy Constitution Day to all our Polish readers!

Thank you for reading Exchange Invest.


Patrick L Young
Executive Director DV Advisors

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