May 31 2013

elb2 The big story overnight is about FTT. Trading desks everywhere began rejoicing yesterday at the likely watering down of a simply dismal law. However, now we are approaching an acute danger zone. The threat is still active and the alert level must remain Red!.

Governments and unaccountable supranationals such as the EU, will not hesitate to expand whatever they can get passed. The industry must gird its loins and keep fighting to the death. Any FTT is a festering mess which will deter investment and set 27 or more nations back to a pre-Dickensian market. The FTT must die: everybody in the industry needs to keep up the attack to ensure this rancid anti-capitalist pincer movement is killed off, not merely revised down so it can be ratcheted up again in the future…

Meanwhile, lots of intriguing snippets below from round the world, oh and as an aside, one stock on the move: Dubai Financial Market jumped 8.7% to to 1.63 dirhams (USD 0,44) yesterday for a one month gain of 30 percent…

Public Markets

Europe Rows Back on FTT Plans (tiered subscription)

The Telegraph

PLY: European countries pressing for an unworkable FTT which would never collect the £30bn (GBP) they boasted of, are revising it – presumably having read the damning economic opinion of the EU Commission itself.

Slower roll-out still means a toxic tax while the ultimate effect on markets will be much greater than any amount raised which is probably below the 3 billion Pounds now being suggested by Brussels’s officials. In case you slept through the first paragraph, we need to kill this thing stone dead…

Nasdaq Plans Revamp of US Futures Market in Bond Push

NASDAQ

PLY: Nasdaq OMX Group Inc. ( NDAQ ) is planning a revamp of its tiny U.S. futures platform to expand a global push into fixed-income trading…

The eSpeed purchase was a fundamentally sound, if slightly pricey, purchase and there is now NLX which is a courageous attempt to copycat existing European markets… It makes sense to have holistic global ambitions!

Moscow Exchange Q1 Results

MOEX continues to provide for strong year-on-year growth and margin expansion:
Total trading volume across all markets was up 16% YoY and totaled RUB 83.8 (USD 2.63) trn.
Assets in custody increased to RUB 14.2 (USD 0.44) trn as of March 31, 2013 from RUB 11.9 (USD 0.37) trn as of December 31, 2012.
Total operating income was up 8.6% YoY to RUB 5.52 (USD 0.17) bln.
EBITDA was up 12.3% YoY to RUB 3.86 (USD 0.12) bln; EBITDA margin increased to 70.0% from 67.7% in Q1 2012.
Net profit increased by 21.1% YoY to RUB 2.56 bln (USD 80 mln).

Japan Exchange to Top Profit Forecast

Businessweek

Japan Exchange Group Inc. (8697), is on track to beat a profit forecast released last month as trading surges to a record.

PLY: The bull surge has been encountering some turbulence in recent weeks but these results are evidence of an upturn in Japan which we hope is filtering into the real economy…

ASX Acquires d-cypha Trade

ASX has agreed to acquire 100% of d-cyphaTrade Ltd from Transpower New Zealand Ltd. for A$55 million (USD 55m).

Since 2002, d-cypha and ASX have jointly developed the electricity derivatives market in Australia. The d-cypha ASX electricity derivatives market now trades an average of 1.651 million MwH per day representing 232% of daily average system demand.

PLY: Australia was a pioneer in power markets and has done well given the geographical challenges of the vast but relatively sparsely populated nation. Meanwhile, ASX extends its monopoly.

Clearstream Nudges DVP Settlement in Russia

www.waterstechnology.com

Clearstream will deliver its new Russian delivery-versus-payment (DVP) settlement solution later this week, to help accelerate an effective post-trade framework in Russia.

PLY: A move from batches to real-time is in store as MOEX and the Russian Financial Centre remain the biggest most exciting story not many investors are paying attention to!

Brics exchanges launches Web site

Finextra

Brics Exchanges Alliance launched its own website at BRICSMART.org as a single data portal for global investors.

CME Adds Historical Execution Stats to DataMine (subscription)

www.waterstechnology.com

PLY: Automated traders will love this: “CME has begun making historical execution-related statistics available for equity index futures via its DataMine historical data product, to provide traders and those running automated trading strategies with the ability to optimize execution.”

Investors ought to like it too as CME is intelligently trying to add value to its vast data sets and that will bolster not just trading volume but data revenue in the meantime as no automated trader (algorithmic or not, I might add!) can afford to be without this ‘real’ data.

Private Markets

South Korea to open 3rd market in July

Economic Times

South Korea will open a third stock market July 1st focused on small business ventures looking to raise capital: The Korea New Exchange (KONEX), as part of President Park Geun-Hye’s plan to foster a “creative economy” that encourages innovation and entrepreneurship.

PLY: Good move by the fascinating Korea Exchange who sit at the epicentre of one of the world’s most pulsating digital economies. KONEX represents a fascinating opportunity for the future development of the nation.

Probe of HKMEx Brings Furor in Hong Kong (subscription)

Wall Street Journal

PLY: Hmmm, just as Ludwik Sobolewski managed to fill the gossip rags during the Festive Season in Poland last year, the WSJ notes: “The political scandal and criminal investigation that has accompanied the shutdown of the Hong Kong Mercantile Exchange has created more drama, including a sixth arrest on Thursday, than the small, struggling exchange ever did trading gold and silver futures.”

Romania Power-Exchange Operator Gets EU Antitrust Complaint

Bloomberg

Romania’s power-exchange operator OPCOM SA and owner Transelectrica SA were sent an antitrust complaint by the EU over restrictions on foreign entrants to the country’s electricity wholesale market.
The complaint states that OPCOM’s practice “discriminates against foreign traders and inhibits competition on the Romanian electricity market.”

PLY: The “Anna Karenina Principle” applies splendidly to Romania’s exchanges: “Happy families are all alike; every unhappy family is unhappy in its own way.” Great potential is being squandered in the Carpathians.

China – New OTC exchange for SME

Shanghai Daily (subscription)

The Qianhai Equity Exchange, a regional OTC market, began operations in Shenzhen yesterday, offering firms not listed on the major bourses a new source of financing.

With a registered capital of 555 million yuan (US$91 million), the new equity exchange provides financial services, such as shares custody, capital raising, clearance, trading and settlement, for small and medium-sized enterprises not listed on the Shenzhen and Shanghai stock exchanges.

PLY: Sitting somewhere between the KRX KONEX concept and crowdfunding, we wish Qianhai SE every success.

Appointments

Chirume is new Zimbabwe SE boss

The Zimbabwe Mail

THE Zimbabwe Stock Exchange has appointed Mr Alban Chirume, former CEO of the Securities Exchange Commission of Zimbabwe with effect from July 1st.

TMX Chooses Deana Djurdjevic to Oversee Equities Trading

Bloomberg

TMX Group Ltd. (X), operator of the Toronto Stock Exchange, has named former Alpha Chief Trading & Data Office Deana Djurdjevic SVP of equities trading.

Crowdfunding

Benefits of crowdfunding go beyond raising cash

Crain’s Cleveland Business (blog)

Discusses Mycestro and how the Crowdfunding process can give you a good marketing and PR fillip.

UK’s first VC-backed crowdfunding platform to launch

Real Business

InvestingZone enables early stage UK companies to raise investment through crowdfunding, and enables (professional) private investors to invest confidently in unlisted equities.

Crowdfunding for space telescope

Fox News

A commercial asteroid-mining company aiming to launch a crowdfunded space telescope raised more than $200,000 on the first day of its campaign.

Planetary Resources, a private venture aiming to mine near-Earth space rocks for water, minerals and other resources, announced Wednesday that it would build and launch a space telescope for public use if it could raise at least $1 million in 33 days.

PLY: Sid Meier’s Alpha Centauri is gradually becoming real life – what a fascinating idea which only goes to show if government stops borrowing, there is a wondrous world of opportunity out there for private enterprise to develop society…

Other stories

India’s clearing and settlement model hinders competition: Hirander Misra

Economic Times

India should follow the European model of trade clearing & settlement, says former Chi-X boss Hirander Misra.

PLY: Hirander was speaking to the KV Kamath committee set up by Sebi to suggest a suitable framework for interoperability of clearing corporations or CCPs. We can only hope it produces a more forward-looking framework than the rather odd report from the Jalan committee which threatened to set stock exchange operators and owners back a century or so…

The East African Commodities Exchange takes hold in Rwanda

http://www.minagri.gov.rw

PLY: Moves to expand the commodity exchange revolution to Rwanda using EACE and its NASDAQ technology…

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