MAY 4 2017

Good morning and welcome to Exchange Invest Issue 987 which corresponds to the Porsche type number for the delightful Cayman mid-engined sports car.

In Today’s Exchange Invest

“I tend to think markets are rational and so the UK and the EU will end up someplace that works for both parties.”
Jeff Sprecher

Post call discussion of ICE’s results – parishioners are advised to note the long term trend transition of whence profits emerge from the data powerhouse exchange operator group. EU clearing ‘debate’ (‘phoney war’) continues with rumours EU will become a multinational version of Venezuela while there’s talk about talks that happened a year ago when CME got close to ICE.

In BigWorld

Puerto Rico requests bankruptcy protection – could this be the start of a whole new leg of debt crisis?

Public Markets

Intercontinental Exchange Reports First Quarter 2017 GAAP Diluted EPS of $0.84 on Revenues of $1.2 billion; Adjusted Diluted EPS of $0.74
Intercontinental Exchange Approves Second Quarter Dividend of $0.20 Per Share
The ICE

PLY: It’s the long-term distribution of where profits come from that looks fascinating here – ICE is exploiting the Interactive Data business in a way nobody else readily conceived while retailing its data to customers more than relying on the legacy vendors such as Bloomberg and Reuters – the latter ought to be very very worried.

EU To Give Itself Tougher Powers Over Euro Clearing After Brexit – Source
Reuters

PLY: Leaving to one side the point that merely unilaterally appointing more powers doesn’t make you actually more powerful, parishioners are advised to recall that “oversight” and “control” are not synonyms. The ECB ought to have a surveillance capacity but extraterritorial rights to meddle in the affairs of the 85% of the world economy which is not the EU, is unreasonable.

JP Morgan Calls For Tougher Clearing House Rules
Financial Times

PLY: Without seeing the privately circulated document, it’s difficult to see where this paper falls on the scale of banks evincing reasonable angst as opposed to banks talking their own book to reduce their risks and saddle clearing houses with the problem while GCMs avoid being reasonably responsible. Another waterfall debate to cascade along in other words.

Exchanges Still Dreaming Of Deals After LSE-DB1 Dies
Bloomberg

PLY: Jeff Sprecher’s response during the results call included this ICE 101 primer on crowds and contrarianism:

“We look at deals that people don’t think about. And we’re always amused when the market thinks we’re going one direction and internally we know that the market is wrong and we’re going another direction.”

In the end one might perceive CME decided milking a regulatory monopoly was an ideal sinecure while ICE went back to growing the pie.

Stock Exchange And Regulator Must Find Common Ground
South China Morning Post

PLY: HKEX compromise on listing suggested.

EBS Brokertec Renamed To NEX Markets, Trading Platforms Names Retained
Finance Magnates

JSE To Create Township Exchange For Very Small Entrepreneurs
Business Day (registration)

PLY: Competition spurs innovation in South Africa as incumbent JSE looks to a microexchange for smaller SMEs.

Private Markets

OTC Markets Group Announces First Quarter 2017 Financial Results
MondoVisione

Special Section: FTI, NSEL, India at the Crossroads

No news today.

Technology

IPC To Collaborate With Chartwell Telecom To Accelerate Expansion In Central And Eastern Europe – Further Cements IPC’s Global Position As One Of The Largest Financial Ecosystems
MondoVisione

Products

Oslo Børs: Nordnet Launches New Exchange Traded Products Initiative
MondoVisione

Here Come Quadruple-Leveraged Etfs
Seeking Alpha

Career Paths

London Real Estate Exchange Limited (“IPSX Group”): Appointment Of Directors To IPSX UK Limited And Appointment Of Group CFO
MondoVisione

DTCC Appoints Val Wotton As Managing Director, DTCC DERIV/SERV – Wotton To Be Responsible For Product Development And Strategy
MondoVisione

JSE Regulator Sues His Bosses
Jamaica Gleaner

Chief Regulatory Officer Wentworth Graham has filed a claim against the Jamaica Stock Exchange (JSE) and its managing director, Marlene Street Forrest.

Crowdfunding

Lendy: 2017 Is The Year That P2P Lending Finally Matures
Crowdfund Insider

Other Stories

ESMA Statement To ECON Hearing On CRA Regulation
ESMA

CFTC Swaps Report Update
CFTC

CFTC Requests Public Input on Simplifying Rules
CFTC
Thank you for reading Exchange Invest.

Patrick

Patrick L Young
Executive Director DV Advisors

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