November 1 2016

elb2 It’s All Saints Day, an opportunity to consider those in the afterlife or if you are in the US encourage those no longer with us to “vote early and often,” as is apparently quite the fashion in some states.

In Today’s Exchange Invest

Cayman Islands the latest to attack the MAD/MAR mayhem with aggressive pricing policy to move listings out of the EU entirely. Goldman may be outsourcing Sigma-X to NASDAQ while there’s more on another IDB probe in the US. HK LME week continues to be broadly reported as a traditional grumbling of end users.

And there’s more, happy scrolling…


A new event joins the roster looking ahead: the MOEX Annual Forum will visit New York Tuesday November 15th and London Tuesday December 6th. Join the event free via Exchange Invest here.

For those interested in MIFID, the biggest forum of the past decade in Germany is back November 17th when I look forward to chairing a session at the 10th Anniversary MIFID Conference. A sell-out audience of 300+ from around Germany and further afield is expected.

Anybody not booked for Burgenstock yet? You can still Claim your discount code via Exchange Invest: (see banner on left- and use this discount code “YOUNG15” to get 15% off the delegate fee). Crossfire kicks things into gear on the AM of 15th with cocktails the evening before. As always, “the right crowd and no crowding” is the mantra of the modern ICDA events borrowed from the heyday of Brooklands.

In BigWorld

I have created a new product just in time for a spot of post Presidential Election rsk transfer. The “EI Presidential Impeachment Index” has a maximum value of  2922 (distance between inauguration on January 20th 2017 and maximum term to January 19th 2025). It has potential to be hugely volatile and indeed with the way Hillary Clinton is going, if she gets elected, the index may trade negative ahead of some FBI clarity over what her latest batch of not very secret emails may have said. Thus a Clinton presidency risks impeachment even before she is inaugurated during the lame duck sessions pre next January (a sort or pre-emptive strike I suppose) while it will probably take at least a few months for a President Trump to witness an impeachment movement against him. Who knows, it might even take longer to see the new President impeached depending on who controls Congress… However, the potential is clearly there.


All exchanges interested in licensing are welcome to email me.

Public Markets


LME WEEK-HKEX To Copy LME “Ring” At New Chinese Commodity Exchange


PLY: Looks like Shenzhen will get a new ring to focus minds on the daily fix.


LME Aims For Chinese Warehouse Breakthrough With Electronic Receipt System

PLY: LME Shield moving east powered by Kynetix. More on an interesting story which broke yesterday.


LME WEEK: INTERVIEW: Incentive Schemes Adding Volumes But Physical Market Key – LME CEO (subscription)
PLY: Garry Jones speaks.


Japan Exchange Group: Status Of Acquisition Of Own Shares


Citigroup Says CFTC Is Probing Banks’ Rate-Swap Businesses


PLY:  It is probes left right and centre in the former IDB heartlands currently.


CME Group to Host Ninth Annual Global Financial Leadership Conference
PR Newswire (press release)

PLY: Ahem. A “Global Financial Leadership” event including keynote speakers Tony Blair and Gordon Brown.

Excuse me? The duo who sold off Britain’s gold reserves and nearly bankrupted the nation with their spendthrift idiocy and delusional belief they had Canute-like powers to smooth out the economic cycle? What can we expect for the 10th anniversary? North Korean leader Kim Jong-Un on corporate governance or Robert Mugabe on the secrets to maintaining hyperinflation?

There are many worthwhile events which deliver continuous professional development credits for their attendees. If you sit through the unctuous anti-democrat Blair or his pathetic side kick Brown, can you perhaps get credit for, say, minor felonies?

I worry about CME when I see things like this. Too much of its approach to branding and marketing is, at best locked in the era of mad men without even the panache of the “Mad Men.” This event looks increasingly like lipstick on a pork belly. Yet CME should be so much more than this but it has mixed up pomp with business focus, I fear.


FXCM Closes Sale of DailyFX to IG Group, Close to 50% Repayment to Leucadia
Finance Magnates

Private Markets

Goldman Sachs Said To Outsource Dark Pool Operations to Nasdaq


Nasdaq will provide the underlying technology and surveillance for Sigma X, the 11th-largest dark pool in the U.S. stock market, according to insiders.


PLY: A great deal for NASDAQ whose efforts to manage dark pools for third parties is bearing fruit.


CSX Slashes Listing Transfer Fees To Win European Business
CNS Business


PLY: The perils of the overly prescriptive MAD and MAR (particularly the criminal sanctions) writ large – Cayman Exchange is aggressively on the offensive to take listings from an EU which only appears to want to vilify finance as opposed to embracing the DNA of investment.


Special Section: FTI, NSEL, India at the Crossroads


PLY: Much of India in holiday mood around Diwali, hence no news while Jignesh Shah is still out on bail from his various pending charges…


FIA Tech And JDX Partner On Global Product Reference Database
PLY: Good idea – a single reference data point for all ETD world wide.


Opening Cross: All Good Things Must Come to An End



PLY: Opening Cross is at once closing cross in some respects and Max Bowie writes with panache on various topics as always, noting the end of BM&F / CME’s mutual access period and more…


China’s Huawei Joins Hyperledger Blockchain Project


PLY: Other new members include National Stock Exchange of India.



Bursa Malaysia Derivatives Launched US Dollar Tin Futures



Only parish news my proposal for an impeachment index, see above…

Career Paths


HSBC Lures Furse To Chair UK Ring-Fenced Bank
Sky News


PLY: Interesting Sky scoop which mentions many of Clara’s achievements but seems to omit her term as a board member of Fortis, amongst her direct banking experience.




France’s 2nd Regulatory Reform Enlarges the Scope of Crowdinvesting & Crowdlending
Crowdfund Insider


The second reform of France’s crowdfunding regulation has officially come into force.


New York’s Bitcoin Hub Dreams Fade With Licensing Backlog


New York’s financial regulator had sights set on becoming a global hub for innovations like bitcoin when it adopted trailblazing [PLY: but deeply flawed and interventionist] virtual currency rules


PLY: The “Don’t Say I Didn’t Tell You (Ages Ago!)” department of Exchange Invest insists I note a few links:


August 2014: “It is increasingly clear the NY Bitlicense proposal is simply too restrictive. A total rewrite is required and a lot less regulation needs to be incorporated. This will prove challenging for the inherently meddlesome gene pool of the New York Democratic AG’s office.”


May 2015: “Ultimately some regulation would come to pass. The problem as I have always noted was that Mr Lawsky, now departing the government parish for private practice, was simply incapable of understanding the dynamics of markets and innovation. Thus it is not just the philosophy of regulation which is at issue but also the fact that the NY Bitlicense remains, even after its gentle revisions, simply another example of grim left wing drivel to kill innovation and risk our future prosperity, at the same time handing corporate power to Bitcoin in New York but endangering that city’s claims to being a progressive international financial centre.”


…This was all free analysis that had you literally years ahead of the curve here in Exchange Invest Daily. By all means do consider a subscription to Premium or some sponsorship in your budget for 2017, please – there’s a lot of free value in Exchange Invest (even if some bridle at the right of free speech in the parish…but surely that is all the more reason to defend Exchange Invest’s unique voice?).

Other Stories

Peter Bennett – Memories Pre & Post Big Bang.


I have been asked to provide a few words on my experience at the London Stock Exchange as a technologist in the years preceding Big Bang…


PLY: Best enjoyed with a fine glass of vintage port as the ace raconteur Peter Bennett tells tales of weapons grade IT being deployed in the financial domain and much else besides…


CFTC Issues Orders Of Registration To Five Foreign Boards Of Trade To Permit Trading By Direct Access From The U.S. 



  • Eurex Deutschland (Eurex)
  • CME Europe Limited (CMEEL)
  • ICE Futures Europe (IFE)
  • The London Metal Exchange (LME)
  • London Stock Exchange plc. (LSE)


A Vision For Data At The SEC – Commissioner Kara M. Stein – Keynote Address To Big Data In Finance Conference, Oct. 28, 2016


China’s Loosely Regulated Online Lending Has Inspired an Army of Freelance Debt Collectors


“Users in these groups would share “best practices” from bombarding borrowers with frequent phone calls to posting public notices around their homes or even swarming them with “beggars,” practices that a Chinese lawyer told The Paper could veer into illegal territory.”


PLY: This startling definition of “best practice” somewhat reminds me of experience with Romanian notions of corporate governance.


ESMA Publishes MAR Guidelines for EU-Listed Issuers on Delaying Disclosure of Inside Information
The National Law Review


Onwards and through a busy week, albeit with a graveside pause as the Poles celebrate the “Day of the Dead.”
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