November 10 2016

elb2  Overnight it appears suns have set all over there and they rose again this morning somewhere over here. It’s incredible! For those who thought they were live at Golgotha, armageddon, or perhaps worse, it’s actually shaping up to look like today is much like yesterday and indeed even days that took place last week and before…

There was a world before Brexit and a world before President (elect) Trump. There will be a world afterwards too. As to the bit in the middle. Now that looks very interesting…

In other words it’s a “YUGE!” day of opportunity in this wonderful world we parishioners inhabit.

Bob Greifeld dropped into Web Summit in Lisbon yesterday to talk to the startup kids. Alas at that time I was in the RTP studios doing some live TV (call me goldfish memory but some story that had the world really vexed yesterday). Bob made a few remarks, and then we had one of those drive by campanology events to open the NASDAQ market. Mrs Young reports it was pretty spectacular.

In Today’s Exchange Invest

Volumes pop, Euronext worryingly spouts remoaner voice of bankrupt France (that’s holistic btw: morally, economically, politically, they have even forgotten they invented that word “entrepreneur” – but then again just look at the neighbours, not doing much better). The message needs to be Euronext is focussing on the opportunity (of which there is clear evidence in places). MOEX numbers in line with parish but their opportunity is in a Trump rapprochement which wasn’t on the Hillarian agency – far from it. CME declares dividend ex-Blair/Brown ‘success for failure’ speaking fees while the Hound of Hounslow pleads guilty and awaits what may be the world’s longest kennel stay. There’s a fascinating story of how humankind are skewing options NBBO and a brilliant paper on CCPs at the end too…


And there’s more: scroll forth and wow the watercooler chat, parishioners:


The Trumpian reboot in the air for US-Russian relations is just one amongst may reasons you must book your place for the MOEX Annual Forum which 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.

Burgenstock is next week and it will be a cool, big data experience – be there or be less informed. 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.

Meanwhile, sorry I can’t make it to Herbiefest today but alas I was committed to Web Summit before the dates could be fixed by the MondoVisione team. I hope it goes well, the Chairman is Michael Mainelli who is always interesting despite not being a parishioner.


In BigWorld


In the end a few confused masses huddled onto an interstate out there in that faraway land called California which has been on a separate trajectory to reality pretty much ever since Governor Reagan stood down. Elsewhere we got the “Trump bump” which bolstered exchange volumes and in the EU all the leaders (sic) and nonentities (q.v. ‘leaders’) were quick to delve into that humongous volume, the “official Euro-Thesaurus of Sanctimonious Bunk Responses” and nitpick things they disliked about the man they now have to work with (I love long-term thinkers, maybe big Eurozone nations will have some some day)… while Britain’s PM, unique amongst large EU nations, notably said positive things – wonder who has the “Yuge” advantage there?). Some were amazed at the speed with which President Obama endorsed his replacement and invited him to meet. Strikes me as entirely logical, I mean having honed his handicap in office, the basketballer in chief is hardly going to want to limit his choice of courses for the remaining million or so rounds of his post Presidential twilight, is he?


Public Markets


Moscow Exchange Q3 2016 Results


PLY: Step past the quarterly numbers MOEX has a vision and after a difficult period, the chances are the Trump regime can find a better accommodation than psycho-Hils… that further enhances the fascinating macro story of the hyper-robust MOEX.


Parishioners: You must listen to more of that at the MOEX events in NY and London this month, click the banner to the left for more details…


CME Declares Dividend


$0.60 per share, payable December 28, 2016, to shareholders of record as of December 9, 2016.


Euronext Q3 Revenue Hurt By Brexit Uncertainty, Lower Volatility


PLY: I am Sorry I did not have more time for these (disappointing) results yesterday but the likely end of the Bush-Clinton dynasty rather occupied proceedings, precluding me from even hearing the call, alas. Probably better I didn’t, as, when faced with a first results challenge, “New” Euronext has sadly shown a pathetic lack of backbone which makes me wonder just how “new” the company really is. In a challenging quarter, the blamestorming has been redefined by the strictly parochial EU mantra of defeatist decline. So, Euronext does not see itself as a growth stock, contrary to how it had appeared – this is deeply, profoundly, disappointing.


Markets deserve better than this sort of bilge – even some legacy media organs are pulling back on blaming curdled milk in their Lattes on Brexit (not all mind…albeit Trumpist victory has only exorcized the BBC/CNN/FT and other lousy ‘oracles’ (sic).


Euronext needs to grow up, man up and do business – and stop this pathetic blamestorming. This has undone a considerable amount of their previous progress in showing that they had changed. When challenged, it looks just like the same old rudderless French pig with  a bit of lipstick on  – much more Pigalle than Rue Faubourg St Honore…


It’s time for a serious, urgent rethink if the Euronext story is to be renewed. You not only disappointed with results yesterday, you showed the parish that the revamp may only be paper thin. That’s a credibility downgrade of several notches from what was previously an upwards direction. We take for granted the abject ineptitude of some parishioners but those who take the road to risorigmento and then fall off, must be harshly criticised for their sins of omission.

Once on a road to progress, Euronext, clearly needs to find a way back on it. ASAP.


Crunch Time For Options Market Structure Reform
Traders Magazine


PLY: Fascinating. BOX want a floor and the problem now is a put/call variant on what is essentially the delta of Keynes’ “invisible hand”  – in this case, it’s market makers and their ability to ‘crisp up’ a price when faced with the flow right in front of them. Methods to resolve may or may not include AI modules where the electronic order books have a frisson of bonhomie when you enquiry about the server’s well being or whether they watched the match at the weekend, before asking for your price.


In essence, humanity remains somewhat under-rated by much of, er, humanity but it has its moments, albeit moments that may skew NBBO concepts on modern networks.


ITG Sets Aside Almost $24m To Deal With US Regulatory Probe
Financial News (subscription)


Mr. Flash Crash Pleads Guilty To Causing Turmoil In Stock Market
Chicago Sun-Times


PLY: With the US government somewhere around 380 years bid on anything emanating from a trial, the hapless hound finds himself looking at a long long period in American kennels.


CME have stayed silent ever since I pointed out how they are funding the duo who combined bankrupt thinking with bankrupt practice and almost bankupted Britain, fiscally. The nightmare triple crown in other words  Meanwhile, Blair and Brown profit handsomely from their incompetence, in the pay for failure ritual which is at the epicentre of the CME’s festival of has beens.


The worse news is that after that epic “I’m backing Hillary” event of somebody or other on the CME board in 2008 (name withheld), the CME again demonstrates a lead foot and a cloth ear towards politics (that they were against Brexit is only a minor aside, you cannot expect more of broadly defenestrated colonial presences thus London’s vision is merely a low delta of Chicago’s myopia).


Arguably even worse than the Obama Presidency, CME finds itself simply spectacularly ill-positioned. A Trump White House represents essentially none of the folks on the roster of speakers and pretty much none of their sponsors and supporters either. I’ll beat Burgenstock but for those lucky enough to enjoy the fine surroundings of the excellent Ritza Carlton in Naples, Florida, it comes counterbalanced with an almost unprecedented line up of pale, male, stale ancien regime figures from the analogue era. Maybe that suits CME but I think foresight could come in useful, even for a $30 billion plus business, especially one which claims it is in the technology business.


Meanwhile, poor hound, a useful idiot with idiotic antisocial tendencies has been hung out to dry by a gerentocracy which itself is delightfully rooted in a gilded age that ended 30 years back, if, indeed, it was ever truly gilded beyond a privileged few.


Private Markets


Breaking the OTC Cabal with Eris Exchange
Podcast Down


PLY: The indefatigable Mark Longo is joined by Geoff Sharp, MD & Head of Sales for the Eris Exchange.


Dabba Trading In Stocks & Commodities Seizes Up
Business Standard


Special Section: FTI, NSEL, India at the Crossroads

No news, no resolution, Jignesh Shah out of jail too…



Citi And Deutsche Bank Join Neptune


PLY: Open standard bond network Neptune has added Citi & Deutsche (for as long as one of them remains solvent…oh I didn’t type that out loud did I?) joining 17 bond dealers providing information in real-time on over 11,500 different bond securities.



Hmm, with the Impeachment Index now seriously in furlough (who wants to trade anything where the earliest possible expiration date is from the mid terms on? – and the risk transfer requirement is the better part of zip before then…), I am, well actually somewhat pleased, to be back to the product development drawing board.



See above, while the usual juvenile denialists may be standing in the middle of the road (philosophical thought: will driverless cars under a Trump administration be allowed a “kill mode” – if you answered “of course!” you may be closer to denial than acceptance of this election result), it also has to be said Hillary’s generous “please don’t investigate me” concession speech yesterday suggests the Crowdfunding spin-off of the impeachment index is also broadly in abeyance for now.


NB When Donald picks his token Democract for his cabinet, could he offer something to Bernie Sanders and hence promulgate amazing interaction?*


*PS Not an office which raises any funding I hasten to add.


EI: Impeachment Index,


Career Paths
Martin Clements who recently retired as DG for Technology and Transformation at the UK Foreign and Commonwealth Office, has joined the SETL board. 

PLY: Interesting hire, I would imagine the UK FCO IT security is pretty much as impressive as the rather inept UK FCO is currently not, having been defenestrated by multiple governments more myopically focussed on the EU and not the world.


FXCM Ties 50% Of Senior Management Bonuses To Repaying Leucadia Loan In 2017


PLY: This is clearly the senior management who didn’t get flayed alive for not appreciating the risk of CHF risk….


ESMA Seeks Innovative People (sic)


The biannual call for the ludicrously titled “Financial Innovation Standing Committee” of ESMA is open. If you view yourself as innovative and ahead of the curve…then give this application form to somebody who thinks, electric car windows and ETFs are fabulously bleeding edge innovations. As per the EU itself, forward thinking is not to be prized but a consensus leaving Europe a decade of more behind the future will be welcome…


PLY: The crowd must have had a day off, certainly at Web Summit a lot of it seemed to be in plain shock that they didn’t get the election result their echo chamber had priced in. 
Other Stories

The CCP Article You Must Read Today – Trust Me…
Economic Perspectives / Chicago Fed


PLY: I have taken some liberty amending the headline but the sentiment is entirely valid – and I am talking about 50x leveraged on a high level of initial margin…


Business Outlook: Will “Share Economy” be Disrupted by Blockchain Technology?


PLY: I was delighted to speak after Amro Zakaria Abdu at the ACI Conference in Ishtar, Jordan last week. He introduced me to much more than merely “peak horse” a deliciously crisp statistic I will be deploying in future presentations, but much more beside. His thoughts are always worthy of a read, enjoy!



Web Summit manic and fascinating once again. My wife is currently amidst the Gary Vee fan army, sorry I missed him but your parish daily was required, even fighting against a slight bandwidth hiccough where the butterfly effect of social media overload is reverberating around Portugal!. Opportunity abounds, have a great day.
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