November 12 2013

elb2Everything today from the code free movement hitting fintech to the North American aluminium market encouraged by LME rules and a series of announcements in between. Chi-X Australia moving towards derivatives as it publicizes that amazing 25% day we reported last week. Intrade bounces back: repays all client debts while Aquis is ready for launch November 26th.

I look forward to seeing various clients and readers today at the RBC lunch where I am singing for my supper alongside the incomparable RBC analyst Peter Lenardos. Tomorrow’s EI may be a little later depending on news flow as I am chairing the Emerging Markets panel at the MondoVisione Exchange Forum but in the meantime, live in the present and here are today’s ‘scrollworthy’ headlines:

Public Markets

Exchanges Play Key Role In Promoting Corporate Governance: SGX Chief (subscription)

Exchanges have an increasingly important role as guardians of corporate governance, said SGX CEO Magnus Bocker at the first day of the Global Corporate Governance Conference at Resorts World Sentosa.

North American Aluminium Market Encouraged By LME Rules (subscription)

Aluminium consumers and some North American aluminium producers applauded sweeping changes announced on November 7 by LME.

Montreal-based Rio Tinto Alcan also welcomed the LME’s warehousing rule changes: “We view this as an important step to address the recent market and economic forces that have combined to create a set of challenges in the warehousing aspects of the LME’s activities.”

Private Markets

Chi-X Australia Plots Derivatives Expansion (subscription)
Financial News

Chi-X Australia, is exploring expanding into derivatives as it looks to step-up competition against incumbent rival ASX.

John Fildes, Chi-X Australia CEO: “People are asking us to move into derivatives and we are looking to launch a major new product set to keep the Australian market competitive.”

PLY: Chi-X have also been publicising their record day with 24.67% market share which was first noted in Exchange Invest last week Their moving into derivatives is exciting news for Australia and indeed the region.

Bats Sinks Markit Boat (subscription)
Financial News

The unglamorous world of trade reporting enjoyed a rare moment in the spotlight earlier this month. Just days after Bats Chi-X Europe secured the support of five major dealers for its new equities reporting service, incumbent provider Markit announced the closure of its offering from next September.

The news emerged over the course of a week, but the demise of Markit’s service, formerly known as Boat, was in the pipeline for much longer.

Intrade To Repay Funds

Intrade is delighted to announce that it will repay to members 100% of the funds that were provided to the Company by way of “forbearance” in April 2013. All forbearance amounts will be restored to individual member accounts and accessible no later than Monday, November 18th, 2013.

The management continues to resolve the remaining issues confronting the Company, including defending against the action taken by the CFTC in the US. Management is firmly resolved to provide the accountability and transparency required to regain the trust of our community, as we continue to innovate and progress Prediction Markets as a business model that Intrade essentially and originally commercialised.

Intrade is resourced now with sufficient funding and an enthused staff to progress plans for the launch of a new commercial product…one which draws on the primary foundation points of Intrade, which first began in 1999 as the “Global Sports Exchange”.

PLY: Great news. The funds retrieved from the Delaney family clearly reinvigorates the business and gives GSX/Intrade a new chance of survival. Congratulations and good luck to original CEO Ron Bernstein who has helped the exchange through this most difficult of phases.

Aquis Exchange Targeted Launch To Start Tuesday 26th November

Aquis Exchange will begin a targeted launch on Tuesday, 26th November with the first phase including UK, French and Dutch stocks. The constituent stocks of the FTSE 100, CAC 40 and AEX 25 will be included. Further stocks and markets will be added in mid-January.

itBit Debuts Bitcoin Currency Exchange

Digital currency exchange itBit today has unveiled its global platform for the trading of Bitcoin with US dollars, Singapore dollars and Euros.

itBit operates as a traditional currency exchange with a central limit order book and can be accessed directly at worldwide by institutional investors, commercial businesses and retail investors (retail investors must reside outside the US).

Special Section: FTI, NSEL, India at the Crossroads

MCX and FTIL have taken a tumble today, down 5% and 4% respectively as crisis fatigue and some arrests seem to be taken a toll on investors. Former MCX CEO Joseph Massey is being interrogated by the police while a creditor is cooling his heels in the clink.

EOW Arrests Chief Of Lotus Refineries
The Financial Express

The Economic Offences Wing (EOW) of the Mumbai Police arrested Arun Kumar Sharma, director of Lotus Refineries, in connection with the NSEL crisis.

Sharma is alleged to have defaulted on Rs 159 crore (USD 25.14 mln) that he borrowed from the NSEL and then splurged it on real estate and other purposes.

EOW Questions Former MCX CEO Massey

The EOW of the Mumbai police questioned former CEO of MCX Joseph Massey over discrepancies in the minutes of the board meeting.

NSEL Fiasco Takes A Toll On MCX, FT Operations
Business Standard

While Jignesh Shah-controlled FTIL has said the company has postponed the announcement of its results for the quarter ended September, FT group company MCX has recorded a sharp fall in profit for the quarter.

The ‘Fit And Proper’ Conundrum

Jignesh Shah and Joseph Massey may have resigned from the board of MCX; but it will be foolhardy to presume that they will give up without a fight when it comes to the show cause notice by FMC. The regulator has questioned their ‘fit and proper’ status to be a director on a national multi-commodity exchange.


New Upgrade To Halt System Hitches At Nairobi Securities Exchange

Plans are underway to upgrade the ATS at the Nairobi Securities Exchange (NSE) and the Central Depository and Settlement Corporation (CDSC).

This comes amid frequent failures of the ATS that have grounded operations at the 59-year-old exchange.

The Capital Markets Authority (CMA) said the process to revamp both the Central Depository System (CDS) and ATS is on track.

Late last month, trading failed to kick off for a day due to a technical hitch in the ATS.

Nairobi SE uses Millennium IT systems.

NASDAQ OMX To Disseminate Structured Products Data
Nasdaq OMX

NASDAQ OMX’s Mutual Fund Quotation Service (MFQS) is now pricing structured notes and market-linked certificates of deposits (CD’s) in a groundbreaking initiative to provide enhanced price transparency for issuers and investors.

Kindling To Leverage NASDAQ OMX FinQloud For Enhanced Features And Data Storage
Nasdaq OMX

Kindling, a cloud-based platform that powers innovation programs by utilizing social and collaboration technology, will use NASDAQ OMX FinQloud, a cloud computing platform designed exclusively for the financial services sector and powered by Amazon Web Services (AWS).

AlgoSpan Lands In Lunda Datacenter (subscription)

Ultra-low-latency trading infrastructure and market data connectivity provider AlgoSpan has set up a point of presence in Nasdaq OMX’s datacenter in Lunda, just outside Stockholm.

DFM Renews Hosting Services Contract With eHosting DataFort

Dubai Financial Market (DFM) has renewed its IT hosting services contract with eHosting DataFort (eHDF), the region’s leading managed IT services provider and a member of TECOM Investments.

Traiana CCP Connect Supports First FX Derivative Client Cleared Trades At LCH.Clearnet

Traiana’s Harmony CCP Connect is the first middleware solution to match and affirm FX derivative client trades with LCH.Clearnet ForexClear service, following the establishment of direct connectivity with the clearing house in July this year.

Tradentrix And IPC Systems Bring First Hosted Trading Turret Platform To The Market

Tradentrix, LLC announced an agreement executed with IPC Systems Inc. for hosting IPC’s Unified Trading solution, Unigy®, and IQ/MAX® trading turrets in the Tradentrix cloud infrastructure.


iShares ETFs Set For BATS Chi-X Europe Debut

BATS Chi-X Europe the largest pan-European equities exchange by market share and notional value traded has announced that the iShares MSCI Emerging Markets UCITS ETF (IEEM) and iShares MSCI World Minimum Volatility UCITS ETF (MVOL) will begin trading as secondary listings on the exchange’s Regulated Market on Monday 18th November 2013.


FTSE Plots China Fixed-Income Push (subscription)
Financial News

The FTSE brand may be synonymous with the UK stock market, but the index provider is steadily diversifying into the international fixed-income market.

TOM MTF Introduces XNL Index Futures
Automated Trader

TOM, The Order Machine, has expanded its index product scope by offering trading in index futures to its members.

Career Paths

Industry veteran Neil Gray has joined IPC Systems as the VP of Product Marketing in its Trading Communications Solutions division.

BlackRock has appointed Rachel Lord as head of its ETF business, iShares, in EMEA.

She replaces Joe Linhares, who will return to the US to assume a new role as global head of BlackRock’s Platinum Client programme.

Financial Calendar


ICAP Half Year Results
LSEG Interim Half Year results
ICE Takeover of NYSE scheduled to close.

This week

Moscow Exchange EGM
Sibex Sibiu SE Q3 Results
Record date GFI $0.05 Q3 dividend

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

Analyst Notes

Credit Suisse Reiterated Their “Outperform” Rating on LSE – GBX 1,700 Price Objective
UBS AG Decreased Their Price Objective On Tullett Prebon From GBX 315 To GBX 290 – “Sell” Rating
Betfair “Hold” Rating Reiterated At Deutsche Bank – GBX 945 Price Objective

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

All Analysts, Banks and Brokers are welcome to contribute to this section.


New Crowdfunding Platform Loveanimals.Org Connects Animal Charities With National Network Of Micro-Donors

Initially, is focusing on small, regional, and rural nonprofit organizations that often lack visibility beyond the communities they serve, and operate with lean budgets.

Many groups like these struggle to raise enough to cover the basics, leaving few resources for projects that can alleviate long-term problems, such as capital improvements and habitat protection.

Other stories

The ASX Has Revived Its Twitter Account After Three Years Of Silence
Business Insider

ASX has revived its Twitter account, @ASX, after the account was left dormant for three years.

ASX general manager of marketing Natalie Lockwood said that the bourse had decided to revive the account to provide customers, followers and other interested parties with “another, more immediate channel” for news and information on the ASX.

The @ASX account was created in 2009 but has not been used since 2010. All tweets made earlier than today were deleted because they were deemed “obsolete”.

PLY: @FrontierFinance and @Exchange_Invest are pleased to see @ASX return to the Twitter fold…

The Code-Free Movement Reaches Capital Markets
Institutional Investor

Graphical user interfaces can help financial professionals master their data and make better decisions.

PLY: A fascinating story, discussing how we could be on the verge of a revolution in actually making big data user friendly for financial markets which will have enormous ramifications for trading and risk management as well as other processes…

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