The short sellers’ summer favourite is back with a vengeance – Playtech terminates the Plus500 deal. Whither now for Plus500? Well, I suspect a touch of volatility is in the winter air… Meanwhile it may be the last look for last look (here’s hoping).
Elsewhere hype, bravado & a court system which probably won’t appreciate the reality of IDB life as Indian investors grow restive at the lack of IPO process for exchanges to embrace capitalism at all levels in India.
Interesting snippets all round, I particularly like using Traiana to streamline emerging markets forex trades. Happy scrolling:
Jessica Morris – CITY A.M.
Playtech on Monday said it has terminated its agreement to acquire Plus500 over concerns it will not be able to secure UK FCA approval before the end of 2015, and warned that the collapse of the Plus500 deal increases the risk that its purchase of AvaTrade also may get cancelled. In response, Plus500 outlined its plans for an independent future, proposing an interim dividend of USD0.2121 per share, and a share buyback programme.
Plus500 press release here.
Lynne Marek – Crain’s Chicago Business
CME revenue on its electronic platform from clients outside the U.S. hit a record 32% during Q3—up from 30% at the end of last year—as volatility and volume spiked. CME’s offshore headcount also has reached a high of 440 employees this year. At the same time, CME has pared its Chicago workforce to 1,800 this year from 2,100 in 2012. Staff outside the U.S. has grown to 17% of employees, up from 7% five years ago.
PLY: Payrolls / consultants – I know analysts obsess about the former but how many can really granularise the latter (at any exchange)?
Liam Vaughan – Bloomberg
Brokers at ICAP ran an elaborate, four-year con on Tom Hayes, tricking the former UBS trader into believing they were helping him rig Libor.
PLY: Again, as per at least one of the Barclays settlements this year, the whole edifice of male hubris which pervaded the banter-centric world of the IDBs has been portrayed as a world where SPECTRE style mastercriminal conspiracies were taking place. The truth is as cloudy as the beer they all drank.
Jean Eaglesham – Wall Street Journal
Comments from judges raise worries of defendants that they won’t be able to get a fair hearing.
PLY: Reminds me a bit of those glory days for the early Irish Supreme Court when 3 generals decided the cases and not a single defendant ever won.
Farah Khalique – Euromoney
The $150 million fine imposed on Barclays last week for abusing its last-look policy on clients’ currency orders until as recently as three months ago signals another nail in the coffin for the controversial practice, say analysts.
PLY: Last look has no place in a modern market structure.
Oommen A. Ninan – The Hindu
The inordinate delay in listing of stock exchanges is worrying investors who say SEBI should not delay the process any further as it is creating uncertainty and excuses for some exchanges not to list.
BSE has already applied and is waiting for the regulator to approve its application. But the National SE’s management is yet to decide on it. MCX, a commodity exchange, is the only listed exchange in the country.
PLY: India could do with progressing towards capitalism and having helped some investors with due diligence years ago, I share their frustration that the market is not better developed and while I am deeply impressed by Chitra Ramkrishna as the latest brilliant mind to run the NSE, I would love to see the process move faster towards open transparent capitalist markets.
Jennifer Thompson – Financial Times
Hong Kong listed shares in Guotai Junan International shares plunged 15% in the first 10 minutes of trading after the mainland brokerage said it could not contact its chief executive. Uncertainty over the whereabouts of Yim Fung, who is also the company’s chairman, comes as Beijing is intensifying scrutiny over stock market irregularities following the summer meltdown of equities in Shanghai and Shenzhen.
PLY: Some say he went out to lunch and was never seen again, only to be reported “missing, presumed fed” – as Douglas Adams so memorably described the disappearance of a Hitchhikers’ Guide to the Galaxy Editor.
Tim Cave – Financial News
Financial firms across Europe breathed a sigh of relief when regulators said that Mifid II – which will rewrite the EU’s rules on trading from top to bottom – may be delayed by a year to 2018. One exception, however, was KCG.
PLY: KCG are be applauded for their preparation.
Pete Rizzo – CoinDesk
Taofik Salako – The Nation
Secondary disposal of shares in the planned demutualisation of the Nigerian SE (NSE) might be undertaken through a combination of share offering methods. NSE in October announced the appointment of a consortium of Rand Merchant Bank (RMB) and Chapel Hill Denham (CHD) as financial advisers on the proposed demutualisation of the exchange.
Special Section: FTI, NSEL, India at the Crossroads
PLY: MCX and FTIL flat to small off.
N Sundaresha Subramanian – Business Standard
Says complaint proceeding against NSEL auditor not completed.
The floor opened at 12:00pm instead of the regular 10am on Sunday.*
*Yip, that feels more like 120 minutes to us too…
Leon Pick – Finance Magnates
SGX will launch SGX Platts Dated Brent Swap and SGX Platts Dated Brent Index Futures contracts on Monday, 7 December 2015. The first contract month to be listed at launch is the December 2015 contract.
Robert Mackenzie Smith – Risk
A group of large banks has tapped Icap-owned Traiana to help streamline the settlement process for spot and derivatives trades in emerging market currencies. The plan is to use Traiana’s NetLink service for portfolio reconciliation across counterparties so banks can make a single net payment to each other.
PLY: Good idea. Very good idea. Also reminds us of the core strength of the ‘New” ICAP – lots of digital heft in tricky to emulate processes.
Maytaal Angel & Eric Onstad – Reuters
New steel and aluminium contracts to be launched Monday by LME are expected to attract initial interest from customers, but building up strong liquidity in the current bear market may be challenging.
Anna Irrera – Financial News
LSE has formally launched its LinkedIn-style platform that will help listed companies and institutional investors connect online ahead of the looming shake-up of rules on corporate access.
Charlie Gasparino – FOX
Nasdaq CEO Bob Greifeld has told Wall Street executives he is likely to announce that Nasdaq’s President Adena Friedman, who holds the same title as Hans-Ole Jochumsen, will take on the newly created role of COO–a move market insiders say Greifeld is making to clear Friedman’s path to run the Nasdaq when he retires. Under the plan, which has not been finalized, Friedman will maintain her current role as president. If all goes according to plan, an announcement of the management shakeup is likely in the coming weeks.
PLY: Is that a show of power or a show of trying to hang on? I always reckoned Bob had his board pretty much sewn up in a manner of labradorian supplicancy. However, it is interesting insofar as it ought to be no surprise but then formalising something might cause some to wonder. Hmmm, is that to Machiavellian for a Monday morning?
Ken Langone – Wall Street Journal
24.11 – CFTC Open Commission Meeting (more here)
All forthcoming exchange / investment related events are now listed in our Events page.
Hugo Greenhalgh – Financial Times
Investors in the UK can currently choose from 189 platforms, including sites offering equity and lending as well as other finance-raising models. There are more than 200 new launches globally each year, according to Crowdsurfer. Industry experts believe such numbers are unsustainable in the long term…
PLY: Yes and no, depends how deep the revolution goes. Ultimately there will be an ample sufficiency but the need for finance and the transparent failure of the status quo at the micro level means this trend can continue for some time yet (unless the blob kills it of course).
Investment Industry Regulatory Organization Of Canada (IIROC) & The Chambre De La Sécurité Financière (CSF) Sign Disciplinary Information-Sharing Agreement In Quebec – Financial Services Regulators Collaborate To Strengthen Investor Protection