A diverse day. Vienna sells Hungarian exchange stake. NSE India inching towards self-listing. Otto Naegeli proposed for BvB board as cyber defence folk fret about the back office…and lots more worthy of a little pith, happy scrolling:
Cable Car Capital
Playtech and Plus500 terminated their agreement after FCA scrutiny but Cable Car’s questions remain unanswered.
PLY: Thanksgiving comes early for Jacob Ma-Weaver who has long asked (unanswered) questions of Plus500 management and is short the stock… I fear Plus 500 does not remotely end well and will leave considerable egg on the faces of regulators in Cyprus and the FCA. (or, perhaps they are doing something I just cannot comprehend). QV Premium: Plus500 Turmoil & Deal – Brief – Part 2.
David Ingram – Reuters
Keri Geiger – Bloomberg
New York AG, Eric Schneiderman, is investigating possible manipulation in fx trading. The investigation centers on brokers who may be placing fake orders (spoofing). NY AG has sent subpoenas for records to IDBs including TFS-ICAP, Tullett Prebon, BGC Partners & GFI Group.
PLY: A tangible investigation or a fishing expedition? Alas the office of the NY AG doesn’t always inspire confidence that they are more than playing politics in ‘the city which never sleeps without the blob lobbing a few grenades in the direction of the financiers who pay their bills.’
Alice Attwood – FOW
Last week ICE closed a deal to acquire Trayport from BGC Partners & GFI for $650 mln in stock.
PLY: An article concocted methinks at the frontier where the misinformed meets those insiders desperate to avoid being held accountable within the execution focussed ICE machine (which may, for instance, have little interest in selling Trayport systems to third party users). PE had a long, long, hard look (in two discrete processes). CME was indeed out a long time ago (not that the media noticed). Howard Lutnick ‘twisted melons’ akin to the old Steve McQueen tactic, to a leveraged extreme. ICE is a ruthless closing machine – it would be surprising if they didn’t have a significant break clause in there. “Meum dictum meum pactum est” – Howard Lutnick is unlikely to be able to change his & the day there is a peep of coherent concern from an ICE shareholder about a Jeff Sprecher deal will probably involve hell freezing over.
Gina Chon – Financial Times
US-based stock exchanges and clearing houses should play a greater role in detecting and responding to systemic cyber attacks, seen as one of the biggest threats facing global markets.
PLY: Fair comment. Some say LCH.Clearnet’s first line of cyber defence is that their systems are so old the younger hacker generation can’t work out the ancient code…but I am not sure that is a coherent defence.
As expected and previously discussed here and here, the National Bank of Hungary (NBH) has signed an agreement to buy a majority stake in the Budapest SE (BSE) including a 50.46% stake from the CEE Stock Exchange Group (CEESEG) plus an 18.34% stake from Austrian Österreichische Kontrollbank AG, giving NBH a total stake of 75.74%. The price was 3,550 forints per share.
FAO: …thus valuing the deal at $49.6 mln, inferring a total value of USD 65.5 mln for the exchange.
QV Premium: CEESEG Stakes Sales Brief.
PLY: Hooray for Hungary as it starts a new journey towards capital market growth. I am very excited for Zsolt Katona and his team in Budapest. Good luck one and all!
Mark Paul – Irish Times
Cantor Fitzgerald Ireland, (previously Dolmen stockbrokers), has valued its 8.4% stake in the Irish SE at more than €9.5 mln ($10 mln), putting a putative total valuation on the exchange of close to €115 mln ($122 mln).
PLY: However if you ring Howard Lutnick, he won’t be able to part with it for a cent under 37.4 million, at least.
Sajeet Manghat – Moneycontrol
National SE (NSE) senior management clarified that the exchange is inclined towards self-listing adding that it would have to undertake a corporate restructuring before any listing can take place.
PLY: Hooray hooray! The sooner the better, a listed NSE is good for India and good for international markets.
Shanghai Equity Exchange (SEE), operator of the city’s OTC equity market, has received regulatory approval to launch a hi-tech board for innovative start-ups, and plans to list the first firms by the end of this year on the “technology innovation” board.
Avi Mizrahi – Finance Magnates
The North American Derivatives Exchange (Nadex) has introduced a new order type “Market Order with Protection (MOP).” The offering is described as being just like a traditional order, allowing entrance to the market quickly at the current price, however with MOP the trader is protected from fills at prices too far from his target as it guarantees that the fill price will be within a defined range.
Special Section: FTI, NSEL, India at the Crossroads
PLY: MCX and FTIL flat to small up.
N Sundaresha Subramanian – Business Standard
The Director (Discipline) of the Institute of Chartered Accountants of India (ICAI), has formed a prima facie opinion finding the auditor of NSEL guilty of professional misconduct. The matter has now been taken up by the institute’s disciplinary committee and an inquiry is scheduled next month.
PLY: If professional staff were lacking then punishments must be imposed to safeguard the reputation of the Indian audit / accounting community.
Waheed Abbas – emirates 24/7
Joe Rennison – Financial Times
Trading in the world’s biggest government bond market has become increasingly challenging as the large banks that support transactions focus on slimming down their balance sheets.
PLY: Very thoughtful essential reading for anybody in commodities, especially in Indian ags.
Yaacov Benmeleh – Bloomberg
Tel Aviv SE (TASE) will cap the maximum weight of companies joining the TA-25, TA-75 and TA-100 indexes at 4 %.
Otto E. Naegeli is running for a position in the BVB BoD. He is proposed by EBRD (owns 5% of BVB).
PLY: I wish Otto every success although I imagine the package is incentivised with EBRD work in addition to the pure unalloyed glamour of being on the Bucharest board? Given his strong derivatives & clearing background, is this a prelude to BvB doing derivatives again (perhaps through a cheap deal for the profoundly mismanaged SIBEX?)… Interesting move and certainly having an adult of Otto’s experience on the Bucharest board can only be good for Romania, a nation which is often touted as the future of Europe and could indeed remain so for a long time to come…
FAO: Total market volume at SIBEX by 17:45 yesterday was apparently 4 contracts.
FN reports that Serge Marston, a former global head of e-commerce sales at Deutsche Bank, will join Icap on November 24 as the head of BrokerTec Direct.
Automated Trader reports that BCS Global Markets, the international arm of BCS Financial Group, has appointed Bradley Duke and Alex Romer-Lee as NEDs.
24.11 – CFTC Open Commission Meeting (more here)
All forthcoming exchange / investment related events are now listed in our Events page.
ICE Price Target Upped By Deutsche Bank From $293.00 To $295.00 – “Buy” Rating
Nate Raymond – Reuters