November 06 2015

elb2Mexican BIVA to be powered by NASDAQ. TMX results are average, FXCM still slipping… I’m all for orderly markets but remind me, how many mortgage bankers & their fraudulent applicants have been prosecuted so far for powering the Lehman collapse?  As we rush to pixel, China has lifted its ban on IPOs…

Public Markets

TMX Q3 2015 Results


vs. Q3 2014: revenue C$ 175.9 mln (USD 133 mln), up 3%, net income C$ 36.5 mln (USD 27 mln), down 7%.

PLY: I am growing concerned, the relative stasis of the last few years was disappointing as Tom Kloet sought a successor but now it just strikes me TMX occupies The Exchange Tower with no real evidence of either purpose or understanding the challenges to the business.


ITG Q3 2015 Results


GAAP net income $2.7 mln, down 76%, includes legal and other fees related to the August 201 final SEC settlement of $2.6 mln pre-tax and $1.5 million after taxes. Adjusted net income $4.2 million, excluding the fees related to the SEC settlement, revenues $120.4 mln, down 10%.

ITG Selling Research Unit As Q3 Revenue Falls 11%

John Detrixhe & Annie Massa – Bloomberg

ITG Agrees To Sell Calgary-Based Research Unit


Sold to Warburg Pincus for $120.5 million in cash. ITG expects to book a gain of between $90 mln and $95 mln after taxes from this transaction. The transaction is expected to increase ITG’s tangible book value by between $2.85 and $3.00 per share. Deal expected to close by the end of 2015.

QV EI Premium: Exchange Deals Brief


FXCM Q3 2015 Results


vs. Q3 2014: net revenues USD 59.5 mln, down 35%, operating loss USD 9.8 mln, compared to operating income of USD 7.6 mln YoY.


FTIL Concludes Sale Of 1.58% Stake In IEX

The Economic Times

FTIL concluded sale of 1.58% equity stake in Indian Energy Exchange (IEX) to Madison India Opportunities III. Total divested: 20.64%.

QV EI Premium: FTIL Stakes Sales Brief.


SGX Looks Into Potential Derivatives Spoofing

Andrea Tan & Jonathan Burgos – Bloomberg

Regulators Step Up Efforts To Stop Spoofing (subscription)

Gregory Meyer, Lindsay Whipp & Philip Stafford – Financial Times

Michael Coscia, of Panther Energy Trading, on joined Tom Hayes, the former UBS trader, in being found guilty by jury of disrupting some of the world’s most important and closely scrutinised markets.

CME Seeks Legal Views On First U.S. Spoofing Conviction

Tom Polansek – Reuters


U.S. Wins First Libor-Rig Case As Ex-Rabobank Traders Convicted

Patricia Hurtado & Tom Schoenberg – Bloomberg

Two Former Rabobank Traders Convicted For Manipulating U.S. Dollar, Yen LIBOR Interest Rates



Algo Traders, Regulators & The Age Of The ‘Wall Street’ Second (subscription)

Robin Wigglesworth – Financial Times

Don Henley sang that “in a New York minute, everything can change”. On Wall Street, a second is all it takes these days.


Fake Muddy Waters Tweets Lead To Charges Of Gaming Stocks

Joel Rosenblatt – Bloomberg

SEC Charges: False Tweets Sent Two Stocks Reeling In Market Manipulation


SEC’s complaint filed in federal court in the Northern District of California alleges James Alan Craig of Dunragit, Scotland, tweeted multiple false statements on Twitter accounts that he deceptively created to look like the real Twitter accounts of well-known securities research firms.


HKEx Builds Bridge Between China, World


HKEx now plans to expand the program to cover commodities, bonds and other financial instruments.

PLY: This is precisely the backbone required to cover the valuation underpinning HKEx as the ‘gateway to China’ play. The long-term strategy is bearing fruit.

Charles Li Direct: Video Blog – Stock Connect: The Bigger Picture


London-HK Connect To Create More Intermediary Opportunities

EJ Insight

HKEx CEO Sees Bright Future Ahead


QV EI Premium: China Capital Markets Transformation Brief – Main File, HKEx – SSE – Stock Connect Brief Part 3.


Mifid II Phase-In On The Cards, Says MEP Swinburne (subscription)

Tim Cave – Financial News

PLY: Pity it has to happen at all. I have yet to receive even a single defence of what the point is with this copybook example of a dismal sequel to a sensible first release.


CFTC Sounds Warning On Swaps Reporting (subscription)

Tim Cave – Financial News


ESMA Consults On Indirect Clearing Arrangements



Ontario Securities Commission Seeks Comment On Proposed Amendments To TR Rule



FIA Merges Into Single Organization



FIA F&O Expo – Tom Groenfeldt: FIA Pursues Innovation With Some Doubters


FIA Expo – Tom Groenfeldt: Market Executives On Washington, Politics & Regulation


FIA F&O Expo – Tom Groenfeldt: Exchanges Are Interested In Blockchain, Wary Of Bitcoin


PLY: Andreas Preuss pragmatic about where the ETD industry really sits on innovation while simultaneously rightly indignant at those legacy vendors who are a disservice to the industry with their rentier approach to software. Meanwhile, Jeff Sprecher notes how a little pragmatic management of risk and enablement of calculated failure has made his business the world leader against the legacy industry whose management never found a parapet they didn’t prefer crouching behind when they could profitably raise their heads…

Elsewhere, I see Jamie Dimon dismissed Bitcoin overnight – I take that as a long-term bullish sign for the cryptocurrency separate of the Blockchain opportunity. The latter incidentally I am discussing at Herbiefest, the MV Exchange Forum next Thursday in the City of London as well as chairing the event.

Private Markets

SunGard Q3 2015 Results


vs. Q3 2014: revenue $702 million, up 2%, operating income $120 million, up 26%, adjusted EBITDA $199 million, up 6%.


New Start Near For 130-Year-Old National Stock Exchange (subscription)

Bradley Hope – Wall Street Journal

The National Stock Exchange (NSX), originally founded as the Cincinnati SE in 1885, has submitted a final rule filing with SEC and could restart trading as early as December.


Hungary – Orban Pledging To Revive Stocks Asks Traders To Forget The Past

Marton Eder & Gabriella Lovas – Bloomberg

PLY: Story focuses on politics and avoids the broad failure of the Viennese to actually add anything to its CEE acquisitions – indeed in many ways the whole process has proved counterproductive for the Hungarian and other bourses under the Viennese umbrella.

Dividend News

TMX declared a dividend of $0.40, payable on December 4, 2015, record date November 20, 2015.

ITG declared a dividend of $0.07, payable on December 11, 2015, record date November 20, 2015.

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX off 1$, FTIL off 3%, another adjournment in the blob’s desire to defenestrate FTIL and Indian company law simultaneously:

FTIL Case: CLB Adjourns Hearing To Dec 7

The Hindu Business Line

The Company Law Board has adjourned to December 7 hearing on the MCA’s petition to supersede the board of FTIL.QV EI Premium: NSEL-FTIL Merger Brief, NSEL Scandal Brief – Part 16.


Cinnober Q3 2015 Results


Jan-Sept net sales 209.8 mln SEK ($24.31 million), up 2.8%, Q3 net sales 74.0 mln SEK ($8.56 mln), up 15%, Q3 EBITDA 8.6 mln SEK ($ 1 mln) versus 0.5 million crowns year ago.

PLY: Cinnober is implementing a remarkable deal flow while interest in their groundbreaking real-time clearing and risk management solution is at the forefront of their broad marketing efforts alongside the world’s leading independent exchange trading software platform.


Nasdaq To Power New Mexican SE BIVA


Bolsa Institucional de Valores (BIVA) will implement Nasdaq’s X-stream Trading technology to run Latin America’s newest exchange. BIVA will also deploy NASDAQ SMARTS for surveillance.

PLY: As mentioned Monday, I thought NASDAQ would be an eager competitor for this business. Clearly the work of Steve Phillips in LatAm for so many years helped bring in the deal for the bourse backed by Mexican brokerage house Cencor. Good deal for NASDAQ and the Mexican BIVA.


FTSE Russell Introduces Low Beta Equal Weight Index Series


Career Paths

SEC named Bryan Bennett to lead the examination program in its Los Angeles Regional Office.

Financial Calendar


The Russian Capital Markets Forum in Shanghai

Next week

10.11 – Markit Q3 2015 Results

12.11 – MondoVisione Exchange Forum – chaired by EI Founder Patrick L Young.

All forthcoming exchange / investment related events are now listed in our Events page.


Canadian Regulators Publish Crowdfunding Exemption & Registration Framework For Funding Portals


Canada – Regulators OK New Crowdfunding Rules For Firms In Five Provinces

Janet McFarland – The Globe and Mail

Securities regulators completed the final version of crowdfunding rules that will allow companies to raise up to $1.5-million in a 12-month period from people willing to invest through Internet sites. The legislation is expected to come into force Jan. 25, which means crowdfunding could begin early next year. The new rules are being adopted by Manitoba, Ontario, Quebec, New Brunswick and Nova Scotia, while Saskatchewan is publishing the same rules for public comment.

PLY: Great news.

Other stories

CFTC Staff Publishes Responses To FAQs Regarding Commission Forms CPO-PQR & CTA-PR



Ex-JPMorgan Broker Admits Stealing $22 Million For Gambling

Erik Larson – Bloomberg

Michael Oppenheim, a former JPMorgan Chase broker admitted he stole more than $22 million from customer accounts and used the money to gamble on sporting events, pay his bills, and trade stocks online.

PLY: …Clearly not very successfully in any instance…


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