October 12 2016

elb2

Is the Turnbull government seriously going to rip up the silent pact of government always having the back of the ASX? Interesting clearing ructions…

As I raced to pixel, confirmation of rumours, Cinnober Boat / Autilla wins the LBMA contract, congratulations!

 

Events

In the public domain coming soon, there is Burgenstock (see banner on left- and use this discount code “YOUNG15” to get 15% off the delegate fee).

The Stuttgart SE 10th Anniversary MIFID Conference also advertised to your left looks most interesting and I am delighted to be chairing a session there November 17th. Today I am leaving Malta and off to Frankfurt, briefly.

In BigWorld

I am bemused to note that the potential future leader of the free world (perhaps not if she has anything to do with it) Hillary Clinton has repeated my longstanding line about “equal opportunity offender” when discussing her opponent’s ability to abuse many folk. I have deployed said line on many an after dinner speeches for a decade or more but just for the record, I have not contributed this to her or any other campaign. Anyway, it’s nice to see that her stump speech mimics the odd remark I have made. Maybe someday she’ll embrace free markets too.

Finally apologies I quite forgot to wish readers all the best for Yom Kippur yesterday. Curiously I missed the hordes streaming to the synagogue in 99% Roman Catholic Malta – entirely my omission, I hope it was a fine day for all.

(I only realised something must be amiss when we got through an entire day without any Tel Aviv Exchange management resigning…then I noticed the market was closed).

Public Markets
LBMA Announces Cinnober’s Boat As Chosen Provider For Trade Reporting & Transparency Project
Cinnober

Boat, together with the LBMA, are launching a design study to help develop and deliver these services. Any LBMA members who would be interested in contributing are invited to contact Sakhila Mirza, LBMA General Counsel at sakhila.mirza@lbma.org.uk

PLY: Huge plaudits to Cinnober Boat and Autilla who will launch a trade reporting service, which will also support the development of valuation curves thereafter, connecting the new services to a technology backbone called the LBMA-i.

Australia Revises Guidelines for Equities Clearing, Settlement
Bloomberg
Treasurer Morrison Looks At Exposing ASX To Fresh Competition
The Australian
ASX Responds To Regulatory Expectations And Updates Its Code Of Practice

PLY: Essentially the Commonwealth government has said ASX can pop on a but of ‘lippy’ and start pouting for more foreign investors (does this presage permission to be sold?) but the clearing and settlement monopoly needs a bit of work to be, well, less like a monopoly.

ASX response has so far been restrained and doesn’t hint at putting the Federal government on the Blockchain and distributing its ledger of responsibilities.

QV Tony Sacre, SSX Chief Executive, said “As a user of the ASX Settlement Facilitation Service, the commercial, transparent and non-discriminatory access to those services is essential to the operation of an efficient and cost effective market.  We support the obligation upon ASX to ensure that any investments it makes in clearing and settlement systems do not raise barriers to access or reduce competition between listing venues.”

Tradeweb & FTSE Russell Named As Providers Of Gilt & Treasury Bill End-of-day Reference Prices
Tradeweb

PLY: Good move for both parties.

Private Markets

How To Value The Bombay Stock Exchange?

BloombergQuint

PLY: Excellent analysis from the Bloomberg Quint team once again – and I say that even ignoring my own ‘pull quote’ in the middle of the page. Good crisp graphics and insightful text on the thorny issue of valuing BSE, which continues here:

I-Bankers, Brokers Divided Over BSE IPO Valuation
Business Standard

Elixium’s MTF For Collateral & Secured Deposits Goes Live
Finance Magnates

Elixium, a regulated Multilateral Trading Facility (MTF) for collateral and secured deposits, has announced the execution of its first collateral financing.

PLY: Very interesting venture which demonstrates how granular debt financing is all the rage, and, apart from some barrier to entry issues, will continue to grow exponentially.

Irish Stock Exchange Welcomes Announcement To Review Stamp Duty On Share Transactions
Irish Stock Exchange

The Irish Stock Exchange (ISE) welcomes the Government announcement to review the 1% stamp duty on investing in Irish shares

PLY: Daft transaction taxes are more exposed than ever in an era of cross border markets, stamp duty needs to be abolished in Ireland and the UK ASAP.

Dubai Financial Market Issues Draft Rules On Sharia-Compliant Hedging
Reuters

SynSwap Aims to Distribute the CCP?
The Trade

PLY: A fascinating possibility albeit one I will need more data on to opine…

Misys IPO: One To Dodge
TomWinnifrith.com

FundThrough Scores $24.6 Million In Financing To Improve Its Technology
Financial Post

TORONTO — Fintech startup FundThrough, an online invoice funding platform, has landed $24.6 million in its second financing round.

PLY: Well done.

 

Special Section: FTI, NSEL, India at the Crossroads

Shah’s 3rd Arrest: Vendetta or Persecution?
Millennium Post

PLY: Yes, definitely.

Technology

Equinix Completes Second Phase Expansion Of Tokyo Data Center
PR Newswire (press release)

TY5 is in close proximity to the Japan Exchange and Tokyo Commodity Exchange.

Products
Sebi To Come Down Hard On Illiquid Commodities
Business Standard

PLY: Simply suspending the illiquid does not improve matters but it ticks a few boxes – so Sebi can say job done while the Indian economy again receives no assistance from the blob.

Indexes

FTSE Mondo Visione Exchanges Index
Exchange News Direct

PLY: Lazy commentary hits the ‘blame Brexit and Trump” buttons as the index has an off month. Given Mexico was the worst performer… well the link to Trump is quasi-tenuous but exists…however how many folks woke up this morning in Tijuana thinking: “gosh I must rush off a quick letter to UK Brexit Secretary David Davis forthwith as it is such an impact on my business what with the drugs war, and…” you get my gist.

 

Career Paths

David Saltiel has been named to head the office of Analytics and Research in the SEC Trading & Markets Division.

 

Crowdfunding
We Need Tougher Regulation, Say P2P Lenders
Financial Times

Peer-to-peer lenders have said there is an “urgent” need for tougher regulation of their own sector to ensure that consumers understand the risks.

Understanding risks is surely all about educating your clients? Why push that all back to FCA?

Ex-Regulator Rows Back On Fintech Lending Attack, Saying p2p Could ‘Make Credit Crunches Less Likely’
Business Insider

PLY: Adair Turner caught out with what he presumably thought was locker room financial talk.
Other Stories

Statement Of Chairman Timothy Massad On Proposed Rule Regarding The Application Of Certain Swap Provisions In Cross-Border Transactions
Concurring Statement Of CFTC Commissioner Sharon Y. Bowen Regarding Same
Statement Of CFTC Commissioner J. Christopher Giancarlo On The Same

Kapos: $2.35M For Home With Political & Architectural Cache
Chicago Sun-Times

PLY: In the property pages, the elegant family home of CME Chairman Emeritus Leo Melamed.

Securities Commission Malaysia Invites Public Feedback On Regulatory Framework For Trustees And Custodians

…Another flight beckons, Malta is cute but alas the next stop is Frankfurt, perhaps the world’s most expensive white elephant in a crowded field of dysfunctional airports…have a great day.

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