MAY 31 2017

Welcome to Issue 1005, which corresponds with the chassis number of a Ford GT40 raced through the 1960’s, then used as a road car until the mid 1970’s before reaching George Walther (father of Salt famed for his fiery Indycar crash). Anyway the GT40 itself was burnt in a fire and somehow rebuilt despite being buried in the rubble for some years…

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

Has Christmas come early? ESMA sends off its wishlist for imperial expansion. Meanwhile Canada partially bans Binary options the OECD notes that the hysteria in financial markets about Britain being closed out of the EU is, well, hysteria (or perhaps the start of a whole new era of mud hut innovation spreading from an epicentre of Brussels).

And there’s more, happy scrolling:

In BigWorld

In perhaps the scariest news story of the year, some MSNBC correspondent (ah that’s why I haven’t heard of her) has suggested: Angela Merkel Is Leader of the Free World – Trump ‘Has Abdicated.’ In other news, sadly flights to Mars are still only vaguely possible by the 2030’s, so emigration is not an option, yet. At least the good news is that a world with Angela Merkel’s dithering hand at the till of diplomacy is assured of European stasis – the tricky bit is the other 180+ countries beyond EU 27 might take advantage of her pure-play indecisiveness. Given such profound punditry on US cable news, it’s always a relief to have South Park to fall back on for quality analysis of politics.

Elsewhere in scary Bigworld, there could yet be a coalition of chaos in the UK. Britain’s transparently incapable but stubborn leader, Theresa Merkel, er, May, is hopefully learning on the job as her gamble to gain a larger majority appears to have left her perilously close to losing power (latest poll infers a hung Parliament). Then again, when you see the opposition lead by an odious terrorist supporter; a spendthrift Scotswoman; and the party which is part of the “Project Fear 2.0” agenda…you have to say: could this really be “the Alamo” moment as opinion polling makes a last stand for credibility?

Public Markets

OECD: Ample Room For Financial Free Trade Post Brexit
Daily Telegraph

PLY: A first glimpse of realism as the OECD breaks with the otherwise blindly pro status quo / pro disaster multinational blob. (Plus that welcome reality check that if the EU wants to turn off its major source of market funding things won’t be pretty for EU27).

Modi’s Tax To Spur 1000 New Listings: Bombay Bourse Head
Bloomberg

EU Securities Watchdog Wants New Powers Post Brexit
Reuters

PLY: ESMA submits a “Dear Santa” letter in response to an EC consultation on whether changes are required in EU supervisory structure. Worrying insofar as the EU only understands “more” when it comes to any of bureaucracy, regulation and the EU itself, despite scant evidence proving it is any use.

CMU: EU Reaches Agreement On Reviving Securitisation Market
EC

PLY: No detail and the legacy media don’t add anything here so difficult to say just how good it will be as we race for pixel but another done deal by the highly effective Maltese Presidency – can Estonia keep up the momentum?

London Stock Exchange Group Plc Transaction In Own Shares
MondoVisione

PLY: Have the LSE yet qualified for a rebate on their own volume of purchases?

Private Markets

NSE ‘Unfair Access’ Probe Reaches Critical Stage
Business Standard

El Salvador Expects To Take “Next Step” To The Stock Market
Dinero.com.sv

Firms Recognise Disruption Issues But Do Nothing
The Australian

PLY: Interesting survey with response from the National Stock Exchange of Australia CEO Ann Bowering: “Despite the early digitisation of share trading, there has been almost no innovation around the process of capital raising and IPO during that time. This process takes place today almost unchanged in over 40 years,

In competing with ASX for Australian IPOs, we know that we have to redefine the float process in a way that meets the modern-day requirements of our customers. The demand for proximity, real-time engagement, tailorable, cost-efficient and transparent products are drivers of our market, much like many others.’’

Special Section: FTI, NSEL, India at the Crossroads

No news today.

Technology

Liquid Voice Launches Next Generation Automated Speech Transcription Solution
MondoVisione

Products

ACER And CEER Publish White Paper On Efficient Wholesale Price Formation
MondoVisione

BATS Shifts To Flat Fee Model For Edga Market
Markets Insider

PLY: Interesting.

SIX Swiss Exchange Survey: Block Trading Remains A Growth Area Despite Trader Uncertainty Around Forthcoming Regulations
MondoVisione

PLY: The MIFID II monster, simply the worst piece of EU legislation in the parish yet.

MIAX PEARL – June 1, 2017 Fee Changes
MondoVisione

Irish Government Launches AIB Floatation
Irish Gov

PLY: Including this as reading a lot of legacy media coverage this morning it mentions London without noting the IPO of 25% of the (once bust) AIB shares by the government is a dual listing to Dublin and London reinstating the former position of AIB shares.

Quebec And Alberta To Impose A Ban On Binary Options
Chronicle Day

Montréal Exchange (MX) and Canadian Derivatives Clearing Corporation (CDCC) have already reacted to the news by asking for a reduced ban …

PLY: A sad day, whenever products are banned it hurts the parish and here the egregious activities of a few dissolute brokers have destroyed what is a super product set in principle but alas have been adopted by too many who were allowed to shirk their principles…

Career Paths

PLY: Having been as high as acting CEO, Jos Dijsselhof, Euronext COO is off to pastures new from June 30th. Meanwhile Soc Gen veteran Alain Courbebaisse will join Euronext on 7 June as Chief Information and Technology Officer reporting to CEO Stéphane Boujnah. Maurice van Tilburg, member of the Managing Board and CEO of Euronext Amsterdam, will become Head of Market Operations in charge of Euronext Market Services.

Parisian Kremlinologists will doubtless be intrigued by this move but it looks like a classic missing out on the top job issue where a new broom has a different way of doing things. Good luck to all parties involved.

Over at NEX Group Group CFO Stuart Bridges is stepping down from the board immediately and will leave the company later this year. “Samantha Wren, currently Chief Commercial Officer for NEX Markets, has been appointed to the role and will join the Board effective immediately.” Having only been around since September 1st 2015 as CFO, some eyebrows may be raised but then again as the CFO overseeing one side of the TP ICAP deal which left the assets within NEX, it is perhaps not unsurprising that he is seeking to move on. Interestingly, Bridges bought nearly $200K of NEX stock as recently as May 16th (there has been a lot of bullish acquisition of both TP ICAP and NEX stock by insiders of late).

Congratulations too to Global COO Ken Pigaga who is joining the board of NEX with immediate effect.

Finally, Ulrich Karl is joining ISDA from HSBC to the new role of Head of Clearing Services…

Crowdfunding

Crowdjustice, A Kickstarter For Court Cases, Expands From The UK To The US
The Verge

PLY: The crowdfunding platform which guarantees the lawyers win.

Could Crowdfunding Solve The Uk’S Housing Problem?
AltFi

PLY: It’s certainly a much less controversial approach than, say, shooting NIMBYs.

Other Stories

PLY: ESMA says “Look we’re back after the pont-expanded long weekend!”

ESMA Updates List Of Recognised Third-Country CCPs
ESMA Publishes Response To Consultation On The Operation Of The ESAs
ESMA Updates Its MAR Q&As
ESMA Announces Launch Of Reference Data Submission Under MAR
ESMA Issues Principles On Supervisory Approach To Relocations From The UK

PLY: Interesting approach:

The opinion sets out nine principles:

No automatic recognition of existing authorisations;
Authorisations granted by EU27 NCAs should be rigorous and efficient;
NCAs should be able to verify the objective reasons for relocation;
Special attention should be granted to avoid letter-box entities in the EU27;
Outsourcing and delegation to third countries is only possible under strict conditions;
NCAs should ensure that substance requirements are met;
NCAs should ensure sound governance of EU entities;
NCAs must be in a position to effectively supervise and enforce Union law; and
Coordination to ensure effective monitoring by ESMA.

…Clearly the devil is in the detail but while “no automatic recognition” is to some degree understandable it raises a raft of questions and issues.. A brief review is logical, a start from scratch box ticking exercize strikes me as dumb, just when the European economy needs all the help it can get to rescue itself from the debt and unemployment malaise which aren’t being cured by the current ‘high growth’ (sic) recovery being trumpeted by the political classes.

European Council – Council Of The European Union – Capital Markets Union: Agreement On Venture Capital Rules
Mondovisione

Autorité Des Marchés Financiers Unveils 2017-2020 Strategic Plan
Mondovisione

PLY: AKA AMF of Quebec…

Hope your week is proving exciting…

Patrick

Patrick L Young
Executive Director DV Advisors

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