October 07 2014

elb2Interesting stories, happy scrolling as I zoom around London today…


Public Markets

Tradeweb Sees European Profits Surge (subscription)
Tim Cave – Financial News

London-based Tradeweb Europe posted a 24% increase in its pre-tax profits to £19 mln for 2013, revenues rose by 9.5% to £49 mln.

33% of those revenues were generated from North America, down from 37% in 2012, with the remainder coming principally from Europe. The European arm also operates branches in Hong Kong, Japan and Singapore, which generated revenues of around £5.9 million in 2013.

J.P. Morgan Completes Sales Of Physical Commodities Assets
Business Wire

JPMorgan has completed the previously announced sale of parts of its physical commodities business to Mercuria Energy Group.

Banks Unite To Set Up One-Stop Bond Shop (subscription)
Katy Burne – Wall Street Journal

A group of 12 banks, including BNP Paribas SA, Credit Suisse Group AG, Goldman Sachs Group Inc., HSBC, J.P. Morgan, and Société Générale are working on a new initiative called “Neptune,” said people familiar with the matter.

PLY: Brokertec reborn. How long before antitrust induces a sale to private interests?

UK Regulators Approve Bondcube Trading Platform

FCA confirmed Monday it has approved corporate bond trading platform Bondcube as a crossing network ahead of the service’s launch in Europe next month.

FAO Bigger Picture: Liquidnet bought Vega-Chi in March, DB1 backed Bondcube is poised for a November launch, while ITG are also planning to launch a fixed income platform.

Markit Steps Up Push Into Electronic Communications (subscription)
Philip Stafford – Financial Times

Markit is stepping up its push into electronic communications with a system that would give banks greater control over which employees can access their existing electronic chat rooms.

FAO Bigger Picture:

Last week a group formed of 14 firms led by Goldman Sachs launched a new chat platform – Symphony. The group bought start-up Perzo in order to create Symphony.

TR & Markit – announced here that the directory for the open messaging network powered by Markit’s Collaboration Services has been fully integrated with Eikon Messenger.

ICE agreed to to buy SuperDerivatives – reported here

Cyber security start-up Wickr, is in talks with banks and major financial services companies including Markit to create an alternative to Bloomberg instant messaging; it has raised $30 mln from investors including CME to help develop messaging technology – reported here and here.

`Connect’ Start Not Set Yet
Ling Wang – The Standard

HKEx CEO Charles Li Xiaojia said details of the capital gains tax to be charged on certain transactions under the Shanghai-Hong Kong Stock Connect scheme will be unveiled before its launch.

But the starting date has yet to be decided, he added.

On August 25th, HKEx completed connectivity test for Shanghai-Hong Kong stock connect. HKEx eyes October 27th for the launch of the trading link with SSE, as reported here.

NYSE To Take Back Policing Duties From Wall Street Watchdog
John McCrank – Reuters

NYSE said on Monday it would take back the majority of the policing duties for its two U.S. options exchanges and three stock markets, including NYSE, from Wall Street’s self-funded watchdog at the end of 2015.

Press release here.

Romania’s Govt Promises To Continue Listing State Companies
Romania Insider

Dear HKex: About Those Fees…(subscription)
Metal Bulletin

… But did the rise in fees – a whopping 34% all-in – have to be quite so huge?”

CFTC Close To Fixing Dodd-Frank Commodity Option Woes (subscription)
Alexander Osipovich – Risk

CFTC and its new chairman, Timothy Massad, are said to be moving closer to resolving an ambiguity in the agency’s Dodd-Frank Act regulations that is causing major headaches for energy companies.

MOEX: Euro To Be Accepted As Collateral On Derivatives Market

The EUR will become eligible as collateral on MOEX’s Derivatives market from 13 October. The list of assets eligible as collateral currently includes the RUB and USD, as well as stocks and bonds.

Minister Grants Australian CS Facility Licence To CME

On 30 September 2014, Senator the Honorable Mathias Cormann, Acting Assistant Treasurer, granted an Australian clearing and settlement (CS) facility licence to CME under section 824B(2) of the Corporations Act 2001.

Private Markets

CSE Pins Hopes Of Survival On Its Own Trading Platform

Calcutta SE (CSE) is hoping to resume trading on its own platform C-Star, which has remained closed since April 2013.

Central Banks Of Serbia And Portugal Warn Bitcoin Users
Coin Telegraph

Serbia’s Central Bank warns consumers against “virtual currency” such as Bitcoin, stating that digital currencies weren’t backed by any Central Bank and that users weren’t protected from trade-related risks.

Serbian Central Bank, the National Bank of Serbia (NBS), issued on October 2, a warning about the use of digital currencies such as Bitcoin.

On October 3, Banco de Portugal (BdP) issued a warning letter to consumers, highlighting the numerous risks related to “virtual coins”.

PLY: The delightful news is what the Portuguese central bank sees as a problem: thankfully Bitcoin is not integrated into the payment system…

Sweden: Bitcoin Is Wild West, But It Could Be A Central Bank’s Backup Plan
Liam Tung – ZD Net

According to an economist at the ‘stability department’ of Sweden’s central bank, the Riksbank, Bitcoin could be used to strengthen financial systems in the face of disruption to a main payment processing network.

PLY: Another Swede thinks ahead.

Blockchain Is Latest Bitcoin Start-Up To Lure Big Investment
Sydney Ember – New York Times

Blockchain, a Bitcoin wallet provider and software developer, is expected to announce on Tuesday that it has closed a roughly $30.5 million fund-raising round, led by Lightspeed Venture Partners and Wicklow Capital. The investment, raised from Blockchain’s first round of outside financing, is one of the biggest in the digital currency industry to date.

Special Section: FTI, NSEL, India at the Crossroads

PLY: FTIL and MCX are flat…Needless to say the crisis drags.

NSEL Investors Ask Police To Attach FTIL Assets
Khushboo Narayan – Livemint

NSEL investors have called for stronger action by EOW of the Mumbai police against FTIL.


Cinnober Chosen By NYSE Regulation As Technology Provider

NYSE Group has announced NYSE Regulation will directly perform the market surveillance, investigation and enforcement functions for NYSE Group’s three equities exchanges and two options exchanges upon the expiration of the contract with FINRA on December 31, 2015. FINRA will retain the cross-market surveillance and investigation functions and will continue to conduct the registration, testing, and examinations of broker-dealer members of NYSE Group’s exchanges.

As an important step in expanding the market surveillance and enforcement program for NYSE Group’s exchanges, NYSE Regulation has selected Cinnober as technology provider for the development and implementation of the enhanced surveillance system.

PLY: Sensible choice of an excellent as NYSE moves various functions back into its SRO .

S&P Capital IQ, Kuberre Systems Launch Event Driven Alert Tool To Prioritize And Speed Critical News Flow To Investment Professionals


Financial Crisis Overhaul For Credit Swaps (subscription)
Philip Stafford – Financial Times

The credit derivatives market was adjusting on Monday to its biggest overhaul in more than a decade following the introduction of new definitions to incorporate events from the financial crisis.


KRX To Launch Volatility, Index Futures In Nov (subscription)
Kim Eun-jung – Yonhap

KRX will launch two index futures on a market estimate of future volatility and four sector indexes next month to offer a wider range of hedging and investment options. Trading begins November 17th.

TASE Launches New Index: Tel Bond-Floating
PR Newswire

Tel Aviv SE (TASE) BoD has approved the launch of a new index – Tel Bond-Floating, the tenth Tel Bond Index calculated by TASE. The index will be launched on November 2nd, 2014 and is expected to initially include 16 non-linked corporate bonds bearing floating rates with a total capitalization of approximately $3.6 billion. The bonds are drawn from the Tel-Bond universe, which currently incorporates 246 bonds with a total capitalization of approximately $64 billion.

WSE Maintains Wig20 Futures Contracts With A Multiplier Of Pln 20

Career Paths

Former NYSE Chief Joining Firm Advising Private Companies (subscription)
Telis Demos – Wall Street Journal

After spending seven years persuading companies to go public, Duncan Niederauer is switching sides. The former CEO of NYSE is taking a part-time role at Battery East Group LLC, a small firm that helps private companies raise money from big investors.

PLY: The discredited former CEO is turning his track record of value destruction to the realm of private companies it seems.

TWST reports that Monte Titoli, part of LSEG, announced that it has appointed Mauro Dognini as GM. Mauro joins Monte Titoli from RBC Investors Services where he was Italian GM from 2011 to 2014. Previously, he was Vice GM of Italy & Global Head of Asset Managers and Asset Owners Solutions for BNP Paribas Securities Services.

LSEG press release here.

BGC Partners announced that Yevette Tierney, Chief Information Officer, has left the company to pursue other interests. Eric T. Hirschhorn was appointed Chief Information Officer, reporting to Shaun D. Lynn, President of BGC, effective immediately.

Standard Media reports that the Board of the Nairobi Securities Exchange (NSE) has hired consultancy firm KPMG to aid in the competitive recruitment of a new CEO. The position fell vacant following the exit of Peter Mwangi after six years at the helm of East Africa’s largest exchange.

EI reported on August 22nd that Peter Mwangi stepped down from his position effective November 23, 2014. Mr. Mwangi was appointed Group CEO of Old Mutual Kenya in August.

CFTC Commissioner Sharon Bowen announced her legal and policy staff. The following were appointed: Eric Juzenas Principal Adviser; Petal Walker Chief Counsel and Justin Slaughter Chief Policy Advisor and Special Counsel.

Financial Calendar

New announcements

SGX Q1 FY2015 Financial Results – 21 October 2014
NASDAQ OMX Q3 2014 Financial Results – Friday, October 24, 2014
BGC Partners Q3 2014 Financial Results – Thursday, October 30, 2014
CME Q3 2014 Financial Results – Thursday, October 30, 2014
Thomson Reuters Q3 2014 Financial Results – Thursday, October 30, 2014
CBOE Q3 2014 Financial Results – Friday, October 31, 2014

All forthcoming exchange / investment related events are now listed in our Events page.

Share Notes

NASDAQ OMX EVP Lee Shavel sold 10,231 shares Wednesday, October 1st at an average price of $42.01 (bargain $429,804.31). He now owns 123,729 shares.

Analyst Notes

ICAP “Underperform” Rating Reissued By Credit Suisse – GBX 370 Target Price

A full table of current analysis can be found on our Analyst Ratings page which is updated daily.

All Analysts, Banks and Brokers are welcome to contribute to this section.


P2P Lender SoFi To File For IPO (subscription)
Annamaria Andriotis – Wall Street Journal

P2P lender Social Finance Inc., which specializes in student loans, is expected early next year to file to raise $200 million to $250 million in an IPO, according to CEO Mike Cagney.

US P2P platforms, Lending Club and OnDeck Capital, are also planning IPOs on the stock market.

Every Hour, $87,000 Is Raised Through Crowdfunding
Catherine Clifford – Entrepreneur

Across the world, crowdfunding raises $2 million per day. That’s the equivalent of $87,000 per hour, or $1,400 every minute.

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