October 14 2014


Greetings from Moscow where the Open Innovation Forum is in full swing…The event is in an area larger than a small city in its own right with thousands of delegates from throughout the world. I just had the pleasure of chairing a riveting panel at the opening of the event.

Meanwhile today Jignesh sees his assets in a bit of a freeze while the through train is delayed and ICE approaches more OTC clearing competition… Happy scrolling:

Public Markets

Court Restricts Jignesh Shah’s La-Fin Financial From Selling Assets
Khushboo Narayan – Livemint

The Bombay high court on Monday barred Jignesh Shah’s investment company La-Fin Financial Services from selling its assets till the final outcome of a case filed by Infrastructure Leasing and Financial Services Ltd (IL&FS) against the firm over acquisition of shares of MCX-SX (now mSXI).

Stock Connect Unlikely To See October Debut
Jennifer Li – The Standard

Shanghai-Hong Kong Stock Connect is likely to be delayed as no announcement was forthcoming from the local bourse yesterday.

HKEx CEO Charles Li Xiaojia earlier said the scheme was likely to start on a Monday in October, with an announcement to be made two weeks before its launch.

Thus an announcement was expected yesterday, which did not materialize.

Yesterday EI reported that no capital gains was likely to be charged on any transaction under the scheme.

ICE Clear Europe Eyes OTC Rates Push (subscription)
Tim Cave – Financial News

ICE is planning to introduce an OTC IRS clearing service to coincide with the introduction of European reforms next year, in a bid take on incumbent provider LCH.Clearnet.

PLY: As we saw yesterday it looks as if VaR will be a differentiating factor in the vastly unsurprising news that ICE intends to offset Euribor with OTC…which of course governance precludes LCH from delivering from the swap curve down…

Onshore Presence Drives LCH.Clearnet’s Asia Business (subscription)
Aaron Woolner – Risk

LCH.Clearnet has a long history in Asia – it started clearing for the Sydney Futures Exchange, now part of ASX, in 1969… at the end of July, it appointed Marcus Robinson as head of SwapClear Australia.

LCH currently clears 99% of all cleared Australian dollar interest rate derivatives, accounting for 41% of the entire market.

PLY: A simple history lesson ASX seems to have forgotten before failing to make any appreciable impact on the post OTC AUD market.

Bank of China Takes New Leaps To Enhance China-Russia Co-operation
Adil Siddiqui – Forex Magnates

MOEX and Bank of China have signed a cooperation agreement.

Hong Kong Protests Could Benefit Singapore’s SGX
Max Mason – Sydney Morning Herald

Singapore’s financial markets could stand to benefit from Hong Kong protests.

Sebi Allows One-Time Registration System For Stock Brokers
Anirudh Laskar – Livemint

SEBI says brokers & clearing corporation members registered on one stock exchange or clearing corporation can use the same registration while applying to operate on any other institution.

Private Markets

Gibraltar To Launch Stock Exchange Next Month

The Gibraltar Stock Exchange, to be known as GSX, will launch on Nov. 1, when it will begin inviting firms to apply to become listing members for open ended fund products.

PLY: Doubtless we all look forward to more details on this fascinating venture and wish it well.

Bitcoin Hopeful Eyes ASX Listing
Jessica Sier & Ruth Liew – Sydney Morning Herald

Melbourne-based Bitcoin Group which manages an arbitrage fund is hoping to list on ASX in November

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX flat as FTIL drops 3% and the knives are out for Jignesh Shah.

NSEL Investors Move SC Against Jignesh Shah Bail Order
Sundaresha Subramanian – Business Standard

The investors of NSEL have moved a special leave petition (SLP) in the Supreme Court, challenging a Bombay High Court order granting bail to promoter Jignesh Shah.


Opening Cross: Will Cost Concerns Neuter Future Litters Of CATs? (subscription)
Max Bowie – Waters Technology

PLY: It appears the new fees proposed by US consolidated tape operators the Consolidated Tape Association and the UTP Plan (reported yesterday) warm over an existing dog’s dinner.

Interactive Brokers On The Go: Test Of Mobile API Begins
Andrew Saks-McLeod – LeapRate

Interactive Brokers has started beta testing a mobile API, which will allow third-party developers to program mobile apps that can be used on IBKR accounts.


BSE In Talks For Climate Change ETF
Himank Sharma & Sumeet Chatterjee – Reuters

BSE is in talks for an ETF tracking the bourse operator’s climate change index to be launched within the next couple of years…

PLY: In other words this index could be trading just in time to mark 20 years of primary data showing no global warming.

FSB Publishes Regulatory Framework For Haircuts On Non-centrally Cleared Securities Financing Transactions

The Financial Stability Board (FSB) published a Regulatory Framework for Haircuts on Non-centrally Cleared Securities Financing Transactions a key part of the FSB’s policy recommendations to address shadow banking risks in relation to securities financing transactions, taking into account public responses received on the consultative proposals issued on 29 August 2013 as well as the results of a two-stage quantitative impact study (QIS).

Career Paths

Nasdaq OMX announced a series of leadership appointments across the company’s Listing Services and Market Technology businesses.

Lars Ottersgård and Nelson Griggs will be promoted to EVP of the firm’s Market Technology and Listing Services businesses, respectively. Other leadership moves include Bruce Aust, who has been elevated to Vice Chairman, Listing Services and Bob McCooey, who has taken on the development of a new global key account management program. These leadership changes are effective immediately.

Metal Bulletin reported that LME hired Chris Ivan Tjahjadi in Singapore, as it seeks to develop new business opportunities in Southeast Asia.

Bloomberg reported that Euronext named a former Societe Generale MD Benjamin Fussien, as head of ETFs and investment funds, will be responsible for growing that segment.

Euronext press release here.

Bloomberg reported that Fidelity Investments named Abigail P. Johnson as CEO, succeeding her father Edward C. “Ned” Johnson III and becoming the industry’s most powerful woman.

OCC announced that Laurie Flom has joined the company as First Vice President and Head of Enterprise Risk Management.

Australian-based Metamako, supplier of ultra low-latency devices to exchanges and the trading community, has retained the services of Kevin Covington to mastermind its European expansion strategy – press release here.

Financial Calendar

New announcements

TMX Q3 Financial Results – Thursday, November 6, 2014
ITG Q3 2014 Financial Results – Monday, November 3, 2014
Interactive Brokers Q3 2014 Financial Results – Tuesday, October 21, 2014

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

Analyst Notes

ICE Upgraded By Zacks From “Underperform” To “Neutral” – $213.00 Target Price
CME Downgraded By Wells Fargo From “Outperform” To “Market Perform” – $75.00 Price Objective, Down From $85.00.

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.


Crowdcube Opens In Scotland
Ryan Platt – startups

Other stories

FESE Publishes A Blueprint For European Capital Markets

Europe needs to finance investment, create jobs and wealth, and boost economic growth. As the operators of Europe’s Regulated Markets, FESE members have been working together to create a common vision on how European capital markets can finance Europe’s future growth and development: A Blueprint for European Capital Markets.

PLY: More to follow on this. A sound blueprint to shape a debate which often appears biased against exchanges nowadays.

FESE European Equity Market Report – September 2014 Figures

Foreign Bourses Try To Attract Indian Firms To List Overseas
Ashish Rukhaiyar – Livemint

Overseas bourses like LSE, Tokyo SE and the SIX Swiss Exchange have been meeting Indian firms, trying to convince them of the benefits of listing abroad.

PLY: Apologies to Ashish for not reverting on this…

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