November 4 2016

elb2 Chicago readers: you have that hangover for a reason, it really did happen.

I am delighted to say that the London Derivatives Exchange is continuing its sponsorship of Exchange Invest now that it is a separate entity from the GMEX technology vendor (moreover I hope we can welcome Hirander and GMEX back amongst our sponsors in its own right soon, too).
James Davies and VJ Angelo have retained their excellent board lead by Sandy Broderick for what remains a very intelligent approach to managing the tricky process of not so much alchemy, more nuclear fusion: creating futures that replicate swaps. It’s a fascinating business and when you have a moment, drop by the London Derivatives Exchange web site for a perusal of their fascinating products.
Today I am in Jordan for the ICA (regional ACI) conference with some 500 forex dealers from across the Middle East for lively discourse today and tomorrow (when I am participating on future trends in finance, tech, fintech et al). Lord Lamont and Rachel Lomax have just finished while in a rave from the grave (and if the Hound of Hounslow only lives to be 400 or so years old he may have this to look forward to:) one Nick Leeson.In Today’s Exchange Invest

BATS & TMX results, data wars, Hound of Hounslow facing 380 years in jail as Blair and Brown head off to enjoy lavish  remuneration at CME Conference (how ironic today’s one percenters are yesterday’s spendthrift socialists). As long expected, Chitra Ramkrishna the new Chairman of WFE.

And there’s more, happy scrolling:


As I said above, I will be speaking Saturday at the ICA Conference in Ishtar, Jordan by the Dead Sea.

The MOEX Annual Forum will visit New York Tuesday November 15th and London Tuesday December 6th. Join the event free via Exchange Invest here.

For those interested in MIFID, the biggest forum of the past decade in Germany is back November 17th when I look forward to chairing a session at the 10th Anniversary MIFID Conference. A sell-out audience of 300+ from around Germany and further afield is expected.

Anybody not booked for Burgenstock yet? You can still Claim your discount code via Exchange Invest: (see banner on left- and use this discount code “YOUNG15” to get 15% off the delegate fee). Crossfire kicks things into gear on the AM of 15th with cocktails the evening before. As always, “the right crowd and no crowding” is the mantra of the modern ICDA events borrowed from the heyday of Brooklands.

In BigWorld


The UK High Court may have just edged closer to a hot date with some pitchforks judging from the reaction of some as they seek to meddle with the British democratic will. That doesn’t make Brexit any more likely, just messier. Then again the British Parliament could do with a cleanse of the aloof and unproductive, not to say downright dodgy current membership, anyway. Or, various MPs will just show their survival instincts and realise voting to delay Brexit will only end their political careers.

Public Markets


Bats Reports Q3 Net Income Growth of 13%


PLY: BATS had a good quarter overall.


TMX Q3 Earnings


Revenue up 3%, encouraging numbers from TMX particularly compared to some lacklustre reports in the parish.


There’s A New ‘Hot-Button’ Issue On Wall Street & Battle Lines Are Being Drawn
Yahoo News


PLY: One thing I got wrong in “Capital Market Revolution!” was a belief that by now basic market data would be free or at least incrementally delivery cost plus. In other words, the line being pushed now by IEX who see data as a free tool (and, it’s also a marketing resource). The battle here is interesting insofar as much market data could be cheaper – and the right of those to give away data must be defended – while at the same time the future revenue, justifiably lies in value added data – especially with quantum computing on the horizon. (Oh and of course fragmented markets delivering a unified tape costs money…that is a justifiable charge…creating an element of swings and roundabouts in market competitive landscapes, as Jeff Sprecher noted in his quarterly call/masterclass the other day). Then again those pushing the “data is too expensive” line from the user side are all too often the highly culpable masters of disingenuity given that they arrogantly expect free (or micro-fees) while lathering on layers upon layers of basis (if not percentage!) points for their own, often rather nebulous ‘services’ which are all too often really only glorified regulatory monopolies.


‘Hound Of Hounslow’ Doomed To Extradition
Daily Mail


PLY: ‘The integrity of the CME is a matter of importance,” wrote judges in their ruling, clearly not realising (or choosing to ignore) the CME paying a six figure sum to have Britain’s worst ever economic managers former PM Tony Blair and his Finance Minister Gordon Brown at their annual client conference later this month. I don’t condone ‘the hound’s’ actions but this is another travesty of justice created through a daft one sided extradition law manifested by that master of disingenuity and abject incompetence, Tony Blair.


Private Markets

IDBI Bank Puts NSE Stake Sale On The Backburner



IDBI Bank Ltd has put off a plan to immediately sell its stake in National Stock Exchange of India Ltd as the lender expects to get a higher price at or after the IPO.


NCDEX Strengthens Rules For Warehouse Service Providers

Business Standard


Saudi To Restrict SME Market To Professional Investors, As Per Draft Rules



PLY: A text book definition of “going against the crowd?”

Special Section: FTI, NSEL, India at the Crossroads

No news overnight…

TechnologyHigh-Speed Traders Woo More Asia Recruits Than ‘Gloomy’ Banks

Nothing wildly exciting on the product front so far today…


GPW Takes Over As WIBID & WIBOR Reference Rates Organiser

Career Paths

Tel Aviv Stock Exchange Appoints New CEO To Smooth Relations


PLY: Surprisingly rapid move, appointing a banker Itai Ben-Zeev as CEO starting in 2017 while Chairman Amnon Neubach said, according to Reuters there will be “”clear lines” of power between him and the incoming CEO.”


…Some may reckon Neubach hopes the “clear lines” are puppet strings. Good luck to the new TASE CEO digging the business out of the hole and finding its correct place within the ‘startup nation.’


WFE Names Officers – Chitra Ramkrishna New Chairman
Exchange News Direct


PLY: Entirely as expected (and to be applauded) Chitra Ramkrishna becomes Chairman of WFE. Swiss Exchange boss Urs Rüegsegger becomes Vice Chairman and, curiously, Bill Brodsky becomes working group chairman. It’s not that Bill doesn’t have the skills just that I think the parish understood from past missives that  the former WFE Chairman is on his swansong from CBOE?


The problem remains that the WFE is a bit like a bidet in a 1960’s bathroom. It adds a sense of gravitas but nobody is quite clear what purpose it fulfills.


This is the challenge the excellent and capable new Chairman must undertake. WFE is currently, at best, a remote clique representing a minority of markets and jurisdictions which inspires broad swathes of apathy and disinterest across the industry. The organisation need a rethink, particularly after the instability of recent years which drained the organisation of both credibility and, indeed, its member funds. I sincerely hope the highly capable Chitra Ramkrishna can be the Chairman who starts turning the WFE around…or has the good sense to close it down if the quest for relevancy continues to elude it.



90% Of Lenders Are Earning A Gross Return Of 18-26% PA: Faircent


PLY: Read, ponder, weep, if you are a QE laden western bondholder and not an Indian P2P lender methinks.


Other Stories

IPOs Raise More Capital In Mid-Sized Markets Than The USA


PLY: Story mentioned in passing yesterday, fascinating topic, especially given the way, for instance, the ASX this week alone seems to have turned its back on being a dynamic capital raising platform.

Not quite managed the Dead Sea floating part yet but I will work on it later once a gargantuan pile of work has been dealt with! However, editing your daily parish missive from the lowest point on earth overlooking the amazing Dead Sea has been fun.

Have a great weekend.

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