November 10 2015

elb2In London where they are digesting the IDB deal potential and how that interacts with the pure exchange plays while Reuters makes FXAll truly, well, FXAll! DB1 has an interesting small CSD centric tech deal. Pressure growing as the next raft of EU rules are not exactly the most coherent one could hope for just when market participants are already suffering regulatory implementation fatigue…

And there’s more, all in today’s Exchange Invest, happy scrolling:

Public Markets

BVB Q3 2015 Results


vs. Q3 2014: operating revenues Lei 4 mln (USD 0.96 mln), down 35%, net result Lei 0.86 mln (USD 0.2 mln), down 77%.

PLY: The Sobolewski growth machine stalls as Romania Inc has shown its worst facets of corruption in recent events, albeit with a change of government but will it just prove one rotten regime for another? No news yet of Ludwik heading for a government position in Poland although it remains hotly speculated upon in Warsaw circles…


FTIL To Sell 4.63% More Stake In IEX For Nearly Rs 100 Crore (USD 15 Mln)

The Economic Times

FTIL said it has entered into an agreement with SG BRIC III Trading for sale 1.61% stake sale for Rs 34.64 crore (USD 5.22 mln) and with Singuler Guff NJDM Investment Holdings for sale of 3.02% stake for Rs 64.99 crore (USD 9.8 mln).

With conclusion of the above transactions, the company will have only 0.37% stake in IEX.

QV EI Premium: FTIL Stakes Sales Brief.


Citadel Blasts IEX’s ‘Flash Boys’ Exchange Plans


Virtu Financial on Friday expressed its support to regulators for IEX (reported yesterday).

FAO: Last week there was also an SEC comment letter concerning the IEX exchange application from Patrick L Young.

PLY: In the haste to pixel, my low latency reaction is that I am not quite sure this assertion is entirely correct…


Rivals Tullett Prebon & ICAP Join Forces In New Landscape (subscription)

Philip Stafford – Financial Times

Tullett Prebon’s planned purchase (reported yesterday) of ICAP’s global broking business shows how even long-running rivalries are thawing in the face of a new post-crisis trading landscape.

Tullett Prebon, Icap & Understanding When To Cut Ties (subscription)

Dan DeFrancesco – Waters Technology

PLY: See my comments yesterday.


Competition Watchdog Invites Comments On Betfair-Paddy Power Merger

Maria Nikolova – Leap Rate

The UK Competition and Markets Authority (CMA) published an invitation for comments on the proposed merger of Paddy Power and Betfair, initially unveiled in August this year. QV EI Premium: Exchange Deals Brief.


LSE – Operating Margin To Rise At Information Services Arm


…driven by revenue growth and cost savings from the integration of its FTSE & Russell benchmark businesses.


A Scammer’s Charter For European Capital Markets (subscription)

Daniel Davies – Financial Times

Barriers that hold back small companies block unscrupulous stock promoters.

PLY: Sad to see the pinko encapsulating the arguments for socialism, protectionism and extensive regulation, as opposed to making a point for the growth Europe desperately needs, even to manage its decline, let alone have any chance of meaningful growth, currently strangled by the overly prescriptive regulation as espoused by Mr Davies here.


CFTC Seeks To Bar Oystacher In Spoofing Case (subscription)

Bradley Hope – Wall Street Journal

CFTC last month accused Igor Oystacher, CEO of 3Red Trading, of using spoofing to illegally manipulate the price of futures contracts for crude oil, natural gas and a popular stock-market index and other derivatives contracts.


Research: Blockchain Systems Won’t Replace DTCC, LCH

Leon Pick – Finance Magnates

A recent research report by Tabb Group says that blockchain-powered systems are only a matter of time. But contrary to some bullish commentaries, they won’t replace conventional clearing houses, and may in fact enhance them.


CFTC Time-Limited Extension of Swap Data Reporting Relief for Certain Swap Dealers & Major Swap Participants Established under the Laws of Australia, Canada, EU, Japan or Switzerland



Cross-Border RMB Flows & Capital Market Connectivity Between China & Singapore To Strengthen


QV EI Premium: China Capital Markets Transformation Brief – Main File.

Private Markets

Shenzhen Link Will Include Small-Caps As Exchange Conducts Tests


Shenzhen exchange will include small-cap ChiNext shares in its planned link with Hong Kong. The exchange is conducting internal tests on link infrastructure, though the program’s start date is still “uncertain,” Liu said. QV EI Premium: HKEx – SZSE Stock Connect.


SECP Asks LSE & ISE To Protect Rights Of Employees Amidst Integration

Pakistan Today

QV EI Premium: Pakistan Exchanges Merger Brief.

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX off 1%, FTIL leaps 5%, presumably on more than just selling the IEX stock to a relative ‘odd lot.”


EU Financial Market Reform Faces IT Bugs (subscription)

Jim Brunsden & Philip Stafford – Financial Times

The EU’s plans for reforming financial markets face delays amid warnings that regulators and the financial services industry will struggle to develop key information technology systems on time.

PLY: Too many regulations with too little thought applied in too short a time and overseen by a political blob incapable of understanding the minutiae, was always likely to lead to a troubled gestation of practical regulation.


Markit Delivers More Than Data (subscription)

Steven Russolillo – Wall Street Journal

Launched in a barn more than a decade ago by former TD Securities credit-trading executive Lance Uggla, Markit aggregates data from major bond dealers that are used for research, valuation, trading, and reporting about derivatives, bonds, loans and currencies. Over its short life, the London-based company has become an important provider of data to Wall Street.


Percival & DB1 To Cooperate In Post-Trade Capital Market IT Solutions For Developed & Emerging Economies


PLY: Interesting.


Thomson Reuters Creates Access To Largest Collective Independent Pool Of FX Liquidity Via A Single Desktop


PLY: FXAll gains a new whole new meaning in terms of comprehensivity. Good move by Reuters.


China Securities Watchdog Turns Eye To Commodities (subscription)

Daisuke Harashima – Nikkei

Chinese financial regulators are extending their reach in the markets from stocks to commodities exchanges, which have seen rapid growth in recent years as long-term demand for natural resources grows.


Credit Suisse, Goldman Said Mulling Plan To Promote CDS Clearing

Sridhar Natarajan – Bloomberg


Brazil Power Clearing House Suspends Energy Contract Settlement


Brazil’s CCEE electrical power market clearing house on Monday said it suspended the payment of credits for short-term power deals for September scheduled for liquidation on Tuesday.

The suspension was made in response to court injunctions. A statement from the CCEE did not say when or why the injunctions were put in place.

Career Paths

Former CEO Of ITG Seeking $13 Million From Firm (subscription)

Bradley Hope & Sarah Krouse – Wall Street Journal

Robert Gasser, the ex-CEO of ITG is seeking $13 million from his former firm three months after being forced out (reported here). Gasser left after an outside law firm found he hadn’t disclosed to ITG’s board of directors some details of alleged improprieties related to the brokerage firm’s “dark pool”. ITG paid a $20.3 mln fine to settle the claims. QV EI Premium: “ITG, Dark Fines & A Coalition for Change.


I (Shall Happily) Accept The 2016 Nobel Prize In Economics On Behalf Of Satoshi Nakamoto

Bhagwan Chowdhry (Professor of Finance at UCLA Anderson School & co-founder – Huffington Post

Financial Calendar

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.

Analyst Notes

TMX Price Target Dropped By TD Securities From C$58.00 To C$56.00 – “Buy” Rating

Buy The Exchange, Not What Is Traded There (subscription)

Dana Blankenhorn – Seeking Alpha

…why my pick of this litter is ICE.

A full table of current analysis can be found on our Analyst Ratings page which is updated daily.


Blockchain Company Coinsilium Joins With Seedrs For IPO Equity Crowdfunding

Ian Allison – IBT

Coinsilium, the early stage blockchain investment company with offices at Canary Wharf’s Level 39, is launching an equity crowdfunding campaign with Seedrs which will be part of the Coinsilium IPO, listing on the ICAP Securities and Derivatives Exchange (ISDX) Growth Market in London.

PLY: Another startup listing goes to ISDX, which is quietly reshaping the London SME stock marketplace…

Other stories

ESMA Publishes MAD/MAR Q&A



Better Finance: A CMU Without A Single Market For EU-Wide Shareholder Engagement



Shanghai SE, MOEX Ink MOU




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