NOVEMBER 14 2016

As early as November 2013 in Exchange Invest, (here for example) I made a coherent argument that the next wave of deregulation was likely to be soon upon an increasingly throttled market structure. Well, it looks as if that time has come. Moreover, the news that President Trump has the pragmatic former SEC Commissioner Paul Atkins on his team is great news for markets.

In Today’s Exchange Invest

As early as November 2013 in Exchange Invest, (here for example) I made a coherent argument that the next wave of deregulation was likely to be soon upon an increasingly throttled market structure. Well, it looks as if that time has come. Moreover, the news that President Trump has the pragmatic former SEC Commissioner Paul Atkins on his team is great news for markets.


It’s another crazy week for me – I just arrived in Geneva and look forward to seeing many parishioners at the ICDA Conference which opens this evening. Crossfire is tomorrow AM.

Then I am off to Stuttgart Wednesday for a session at the 10th Anniversary MIFID Conference where I will be chairing a discussion with ESMA supremo Stephen Maijoor on MIFID et al. A sell-out audience of 300+ from around Germany and further afield is expected.

Straight from there it will be Brussels for the European Issuers / FESE SME Awards, their 3rd event and now increasingly a fixture in the EU calendar.

Now, if you don’t understand Trumpian foreign policy (like the wilfully ignorant mainstream media), a good primer on Jacksonian politics is here. That Trumpian reboot likely means much better US-Russian relations which is just one amongst many reasons you must book your place for the MOEX Annual Forum. New York is already full but the event in London on Tuesday December 6th still has space. Join the event free via Exchange Invest here.

In BigWorld

I made the mistake of reading various weekend ‘news’ papers (sic) at the weekend, admittedly I was caught in situ on aircraft at the time… There is a now a worrying disconnect between much, if not all of the legacy media, which appears to have opted out of joining this decade of the 21st century preferring to remain in a rose tinted view of the past. #Worrying.

There’s a big difference between being in disagreement with the political reality of the times, and simply not accepting the reality of the world. It’s approaching 500 years since Martin Luther launched the Reformation. Generalist legacy media look to be in more denial than the Roman Catholic church was in the aftermath of a spot of conditional nailing to church doors by the German cleric.

On a much more interesting note, the the battle between polyglot Nico Rosberg and playboy Lewis Hamilton for the F1 title goes down to the wire in Abu Dhabi after a remarkable rain soaked Brazilian GP. An elegant lesson in brilliance, while many were spinning off all over the place while Lewis Hamilton’s only complaint was when they stopped the race as the conditions were quite manageable to his genius ability. Reminded me of my trip to Donington Park in 1993 when Ayrton Senna was in a league of his own against similarly torrid rainy conditions.

Public Markets

BM&F Bovespa Q3 Net Profit Drops 85%

PLY: Ouch! Results come in at 293.5 million Reals ($86.6 mln) whereas consensus estimate was 468.3 million reals. No currency conversion needed to spot a yawning chasm between hope and reality.

CME Said to Consider Dublin Clearing Options Amid Brexit Fallout

Bucharest SE Q3 Revenue up 23%m, Profits Jump

PLY: Good results from BvB which is enjoying something of an upswing as QE dollars desperately seek yield and hence are watering down their standards with a jump into Romania which I think wll end badly all round.

Why LSE Can Serve Tech Startups Better Than Nasdaq Or NYSE
The Guardian (blog)

What do we get out of being a FTSE250 company when we could trade on Nasdaq…

PLY: Interesting article, worth a perusal.

NZX Advises All Markets Have Opened Today Per Normal

PLY: Good to see NZX market structure still functioning after the earthquake at the weekend.

‘We Need More International Listed Companies’, HKEX’s Li Tells Stock Connect Forum
South China Morning Post

Quick View: EU’s Extra Time Raises LSE-DB Deal Temperature
Financial Times

The London Stock Exchange Group and Deutsche Börse are entitled to feel that the extra time Brussels will have to assess their deal is a positive sign.

PLY: Not sure I agree. Brussels’ antitrust facing what they know will be an outbreak of vitriol and denial akin to America’s cosseted student classes last week, could just be placing all their ducks in a row given that they are dealing with a dreadful deal which has no underlying sense other than monopoly with systemic risk being concentrated in a ‘too big to fail” CCP.

US Banks Lobby For German Takeover of LSE As It Could Save Them Millions
This is Money

Lord Myners: ‘The bankers really want this deal to go through because they will be the prime beneficiaries. It’s not an agenda which is in the best interests of the UK – it’s … in the best interests of the banks.’

HKEX: Deferral Of VCM Rollout For The Derivatives Market

Hong Kong Exchanges and Clearing Limited (HKEX) has decided to defer the rollout of the Volatility Control Mechanism (VCM) for the derivatives market

MOEX Temporarily Suspends FX Trading
MOEX Has Resumed FX Trading

TMX Group Is the Biggest Enabler of Predatory HFT Behaviour in Canada, Study Says
Traders Magazine
Is TMX’s Speed-Bump Facilitating HFT?
Wealth Professional (blog)

A study from Australia titled The Value of a Millisecond is questioning whether the TMX-run exchange is actually doing that…

An Early Winner From Trump Victory: Futures Exchanges
Wall Street Journal

PLY: Volume driven by a brave new world…

Private Markets

CHX Moots LTAD Pilot To Allay Market Maker Concerns Over ‘Speed Bump’

The Chicago Stock Exchange (CHX) has said it would consider running a lengthy pilot test of its proposed 350-microsecond Liquidity Taking Access Delay.

Chinese Regulator Bans Futures Brokers From Providing Margin Financing
South China Morning Post

Namibia: Over-the-Counter Market Possible

Back home, the Namibia Stock Exchange is looking to create a similar platform as law makers struggle to piece together an empowerment framework,

Amman Bourse signs MoU with Luxembourg Bourse
Petra News Agency

Special Section: FTI, NSEL, India at the Crossroads

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


Traders Said To Plan Supercharged Chicago-to-Tokyo Data Network
Chicago Tribune

Chicago Developers In ‘An Arms Race’ To Build Giant Data Centers
Crain’s Chicago Business

Even though CME Group moved some of its computers to Aurora in 2012, 350 E. Cermak never saw the drop-off in demand many feared.


BIS: Global OTC Derivatives Markets Soar By Double-Digit Growth In H1 2016
SMN Weekly (blog)

Global over-the-counter (OTC) derivatives markets amounted to a gross combined $20.7 trillion in the first half of 2016, according to statistical data

PLY: “How’s that Dodd Frank thing workin’ out for ya?” to paraphrase Sarah Palin.

Commodity Transaction Tax Cloud Over Gold Monetisation
Financial Express

PLY: India has also been in quite a flap as the largest bank notes have been abruptly withdrawn from circulation.

Midwest US Shredded Scrap Futures On NFX
SteelOrbis (subscription)

The Nasdaq Futures Exchange (NFX) expects to start trading in the Midwest US shredded scrap index futures in the first half of 2017.

ICE Considers Limits On Positions In Dubai Oil-Futures Contract
Wall Street Journal

China’s Dalian Urges Regulator To Approve Soybean Meal Options


…Nothing much to report. If you need some index stimulus:

EI: Impeachment Index,

Career Paths

Possible Trump Picks For SEC, CFTC Seen As Favoring Deregulation
The Hill
Paul Atkins on Trump’s Transition Team for Financial Appointments is a Very Good Sign for Fintech
Crowdfund Insider

PLY: Yip, yip and thrice yip – having Paul Atkins as the lynchpin is great news for markets.

Elsewhere, Financial News reports that Tony Mackay, the architect of the deal for JC Flowers to buy various Chi-X Asian assets including Chi-X Australia, has parted ways with the company after less than a year.

Tom Caldwell’s parish investment vehicle Urbana Corporation has appointed Sylvia Stinson as its new CFO effective immediately to succeed Jean Ponter, who is retiring at end of year. Misys also has a new CFO, hiring Himanshu Raja from Logica according to FTF News

CME has appointed Sung Hee Hong from the Korean Exchange (KRX) as executive director, head of Korea to lead expansion in the country, according to FTF News while the Bullion Desk reports CME head of precious metals Miguel Vias has left after four months.


Crowdcube Calls For Unified Approach To Reporting On Performance Of Crowdfunded Businesses
Tech City News

PLY: And indeed a unified approach to actually delivering the shares to those who may not realise they only have vague participation certificates would be a good idea too in the UK in particular.

Central Bank of Russia Developing Crowdfunding Regulation
Crowdfund Insider

Sun, Sand & Leveraged P2P Lending
FT Alphaville (registration)

Here’s a simple rule: whatever you think the phrase “peer-to-peer lending” means, a peer-to-peer lender somewhere has done the exact opposite.

PLY: Deals with the business of one Graham Wellesley who some may know from his dealings in the parish in the past in retail forex brokers et al, dating back if memory serves me correctly to LHW or one of those other early UK retail futures brokers.

Singapore P2P Lending Platform MoolahSense Gets Full CMS Licence From MAS

Other Stories

Researchers Suggest New Method to Scale Bitcoin To Paypal Levels Of Transactions

A Major Korean Bank Will Soon Launch a Bitcoin Remittance Service

Shinhan Bank, one of the largest financial institutions in South Korea will begin a remittance service – backed by bitcoin – between Korea and China,

EIDPMO Organises Seminar On Exploring Islamic Fintech
Borneo Bulletin Online

BSE Building To Open Doors For Tourists
Hindustan Times

PLY: I presume the building has modernised a bit as when I last visited it was more like a scene from the Charlie Chaplin film “Modern Times.”

Onwards to Burgenstock with “the right crowd and no crowding” to kick off another frantic week, catch you over the cocktails this evening I hope.


Patrick L Young – Executive Director DV Advisors

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