NOVEMBER 21 2016

Back for a week where remarkably I think I begin it in one country and end it in the same country – almost unprecedented this quarter. Albeit I will segway pretty much the length of Poland before next Monday.

Apologies if you have a pending email or call request, I will revert ASAP (email again if urgent, please).

In Today’s Exchange Invest

General Atlantic does an interesting share swap with KCG and Germany makes a bid to ensure the DB1-LSE HQ moves to Germany. That, to my mind, skews the value proposition – an unreformed EU risks collapse or ongoing atrophy. An independent UK might collapse too but it might also just find a role for itself in the world by advocating free trade and not precautionary regress, protectionism and customs union. Either way Db1-LSE is in a “push me pull you” trans-continental binary which looks impossible to resolve through merger.

And there’s more, happy scrolling:


Most of my events before Christmas are private but as a reboot with Russia appears in the Trump governmental, The MOEX Annual Forum in London on Tuesday December 6th is surely a must attend event like its sellout US counterpart in New York last week. Join the event free via Exchange Invest here.

In BigWorld

So farewell then from the political main stage, Psycho Sarko, the deposed poison dwarf of the Elysee Palace who never quite made it back to being President of France having failed to live up to his electoral pledges when he first swept into offices. There’s a maxim in there somewhere.

The implausibly described “French Thatcherite” Francois Fillon (political base: around Le Mans – so he has much to recommend him imho) leads the centre right primary.

Meanwhile French President Hollande is, along with the (now under investigation) South Korean President pushing back the frontiers of opinion polling by threatening to drop off the popularity scale. Both are at or below 5% and now risk statistical obscurity while still in office – albeit not sure either has been in power for some time.

Public Markets

Germany Says EU Base May Be Required for DB1-LSE

PLY: Another nail in the coffin of the deal which could yet deliver a broadly unprecedented in scope breadth of blamestorming exercize when it finally falls apart. We now have a binary option: Germany could demand a German HQ without which it nixes the deal while the British government is surely unable to sanction giving the LSE HQ away, particularly in the Brexit political climate.

KCG Announces Share Exchange With General Atlantic

PLY: Interesting deal delivering liquidity to General Atlantic. The fund takes the 8.9 million shares KCG owns in Bats for all of General Atlantic`s 18.7million shares in KCG.

CBOE Holdings Announces Early Termination Of Hart-Scott-Rodino Waiting Period For Bats Takeover
PR Newswire (press release)

PLY: Another hurdle sorted…deal powers on.

Former LME Accountant Charged With One Million Pounds Fraud
Reuters UK

PLY: An embarrassing discovery for LME as it expands in China.

Why CME Group Hit The Wall
Seeking Alpha

PLY: Kurt Dew concerned about the development of CME.

Nasdaq’s New Chief Has Company Blood Running Through Her Veins
Financial Times

PLY: In case you were away last week, the FT Weekend edition caught up with the news.

Hong Kong’s SFC, Exchange To Assess Listing Reform Submissions, May Take Months
South China Morning Post

Chinese Firms A ‘Growing Force’ For LME
South China Morning Post

“The acquisition has allowed the LME to have a footprint in Asia while the HKEX now has a footprint in commodities trading.”

Merger Of Two Exchanges

There is light at the end of the tunnel for the aborted merger of the Philippine Stock Exchange (PSE) and Philippine Dealing and Exchange Corp.

PLY: Health & safety reminds me: No breath holding here, please.

Time For SGX To Relook Its Trading Structure?
The Straits Times

For almost a month now, daily stock turnover has climbed back to the $1 billion-plus level.

Private Markets

A Good, but Ill-Timed Move: Farmers Paying the Price for Note Ban
The Quint

Samir Shah, MD and CEO of NCDEX says traders are unwilling to let go of pricing power.

A Man With A Vision To Revolutionise Rwanda’s Stock Exchange

At 42, Pierre Celestin Rwabukumba is perhaps one of the youngest stock exchange heads on the continent.

Wool Exchange Portal Would Compete With Auction & Online Systems
Sheep Central

PLY: This Australian initiative appears to be separate from the pre-existing Australian Wool Exchange.

Special Section: FTI, NSEL, India at the Crossroads

Sebi Investigating 5 Commodity Brokers In NSEL Payment Case
The Indian Express


Bitsane, the Most Sophisticated Cryptocurrency Exchange Platform


Korea, Dubai Move to Regulate Bitcoin

As China Punishes Speculators, Billions Of Dollars Exit Commodities
Reuters UK

MCX To Impose Concentration Margin To Combat Price Rigging
Hindu Business Line


Thomson Reuters Named Benchmark Administrator & Calculation Agent for the Saudi Arabian Interbank Offer Rate
Zawya (press release)

Career Paths

Dave Nadig Returns To As CEO

GTX Hires Edward Brown to Run Swap Execution Facility – Company To Increase Focus On Solutions As Regulation Reshapes The FX Market

…As Exchange Invest raced to pixel, ICAP confirmed Stuart Connolly as Head of Client Product Development for its Post Trade Risk and Information (PTRI) division, effective today, Monday 21 November. In this newly created role, Stuart will report to Jenny Knott, Chief Executive Officer for PTRI, and will be based in London.


Crowdfunding: As Old As The Hills
Independent Online

The Development of Investment Crowdfunding in South Korea
Crowdfund Insider

Other Stories

FSB targets Mid-2017 For Clearing Resilience Rules

The Financial Stability Board (FSB) has said it will propose guidance on recovery and resolution plans for clearing houses by the middle of 2017

Hard Ball… The Transfer Of Government Power In Financial Markets
Seeking Alpha

PLY: Interesting article from Kurt Dew on US regulatory politics at SEC and Fed but appears to miss out one key issue which is the influence of Trump transition leader in the field, former SEC Commissioner Paul Atkins which I think has significant ramifications for how this plays out (before we get to potential cross-party bills targeting the fed for instance).
Have a great week, I have a busy day of meetings in Warsaw.


Patrick L Young – Executive Director DV Advisors

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