Lots happening, with London Metals Week and SIBOS driving the press release agenda and some news too, let’s get to it:
…to pay the cash portion of the consideration for the acquisition of SunGard and its subsidiaries pursuant to the merger agreement dated August 12, 2015…
QV EI Premium: SunGard IPO Brief.
Nathan Brooks – Seeking Alpha
Plus500 Q3 Revenues nearly doubled those of Q2. Plus500 shares then trade up just 2%. What gives?
QV EI Premium: Plus500 Turmoil & Deal – Brief – Part 2.
The risks in metals trading are different from those in the financial markets, and if EU regulation is not tailored accordingly, we could see irreparable damage to the wider industry, said LME in a white paper released at the LME Regulation Seminar on 12 October 2015.
PLY: Understandable angst from the LME.
Sarah N. Lynch – Reuters
UBS will pay $19.5 million to settle civil charges alleging the bank made false statements to U.S. retail investors.
Jennifer Hughes – Financial Times
PLY: With a market pullback, HKEx has lost its position as the largest market cap public traded exchange….
Dan DeFrancesco – Waters Technology
Dan DeFrancesco compares Nasdaq Nordic to Mila and wonders why one has succeeded while the other has failed.
QV EI Premium: MILA Exchanges Brief.
David Connett – The Independent
The convicted Libor trader Tom Hayes went from being a shy newcomer to a “psychotic”, a former broker told Serious Fraud Office (SFO) investigators.
Liam Vaughan – Bloomberg
Six brokers accused of helping former UBS trader Tom Hayes rig benchmark rates used a range of excuses during questioning by prosecutors, including blaming colleagues and not knowing what Libor meant.
Francesco Guarascio & Huw Jones – Reuters
EU proposals aimed at relaunching the market for asset-backed securities are actually likely to shrink it in the short term, French Banking Federation chief Frederic Oudea said on Tuesday.
Nicole Bullock – Financial Times
Joe Rennison – Financial Times
Bruno Iksil, the JPMorgan trader known as the London Whale, is an unlikely symbol of post-crisis regulatory disharmony. He briefly rose to attention as he built up a huge position trading credit default swaps in 2012, leading to a $6.2bn loss, embarrassing for the bank but perhaps more so for its regulators as it underscored the shortfalls in creating a method intended to spot risks to the financial system.
PLY: One could argue this is the same story pertaining to Turkey we have heard for years…
Nigerian SE has appointed South African bank FirstRand and local investment firm Chapel Hill Denham to advise it on a possible share flotation.
The bourse, which has the second biggest weighting on the MSCI frontier market index after Kuwait, is a major entry point to invest in Africa.
The Hindu Business Line
The Bombay High Court on Tuesday directed Metropolitan SE (MSEI) to deposit an additional ₹21 crore (USD 3.22 mln) in eight weeks. The court was hearing the case filed by MCX against MSEI for extinguishing its warrants worth ₹41 crore (USD 6.3 mln) as it was not converted into equity within the three-year validity period for warrants fixed by the regulator. The stock exchange cancelled the warrants in June and transferred the amount to its net worth. Earlier, the stock exchange deposited ₹20 crore as ordered by the court. Market experts feel that the court ruling is an indication that the final ruling may go against the stock exchange which is already facing a cash crunch and struggling to keep its net worth intact.
Carolyn Cui – Wall Street Journal
The government will announce a list of around 10 companies to go public when the exchange is launched.
QV EI Premium: ASEAN Exchanges Project Brief.
Jakarta Futures Exchange (JFX) is planning to open a market for tea futures contracts in mid November this year. “JFX will be the world’s first futures exchange that trade futures contracts for tea,” President Director Paulus Lumintang said on Tuesday, October 13.
Special Section: FTI, NSEL, India at the Crossroads
PLY: MCX and FTIL flat.
KR Srivats – The Hindu Business Line
Firmly opposing any ‘forced’ merger of crisis-hit NSEL with FTIL, the top brass of the latter on Tuesday presented before a Corporate Affairs Ministry panel its objections to the draft merger order issued in October last year. At the oral hearing FTIL said that the proposed ‘forced’ merger should not be pursued, as it would destroy the concept of limited liability, thereby affecting investor sentiment. It also could turn out to be a bad precedent and open doors for similar action against holding companies whose subsidiary is facing an unproven liability.
PLY: An accurate and apposite defence.
Dipu Rai – dna
The Union finance ministry had nudged FMC, merged with Sebi in September, for taking against brokers of NSEL.
According to internal documents of FMC accessed by dna, the then finance secretary Rajiv Mehrishi in August had said that FMC should have taken action against NSEL brokers.
Gregory Meyer – Financial Times
…Regulators — and criminal prosecutors — are beginning to catch up.
Canada NewsWire via COMTEX
James Bradshaw – The Globe and Mail
Pete Rizzo – CoinDesk
ICE introduced CDS clearing for the following sovereign single names: France, Germany and the UK.
PLY: Interesting move as the CCP-cleared repo market in Istanbul is a huge profit centre for the exchange.
Shanghai Futures Exchange, China’s largest commodities exchange, will build an international platform to allow foreign investors direct access, EVP Teng Jiawei said during LME Week in London.
PLY: Fascinating competition dynamics are emerging in China.
Rajesh Bhayani – Business Standard
A fresh round of competition is set to begin in commodity derivatives, following the segment coming under the regulations of Sebi. BSE has already applied with Sebi to launch commodity derivatives as a separate segment, while NSE is waiting in the wings. Also, promoters of the currently defunct Indian Commodity Exchange (ICEX) are planning to re-launch the exchange by December.
Currently, only three commodity exchanges are operational — MCX, NCDEX and the National Multi Commodity Exchange (NMCE).
PLY: Note NSE has plans for its own commodity platform while also owning a stake in NCDEX.
Times of India
The four benchmarks are Nifty 15 year and above G-Sec Index, Nifty Composite G-sec Index, Nifty 4-8 year G-Sec Index and Nifty 11-15 year G-Sec Index.
Renaissance Capital hired Mohamed Zeinelabedin as VP, MENA research analyst, covering consumer and retail sectors. Based in Dubai, he reports to Ahmed Badr, CEO of Renaissance Capital MENA and David Ferguson, Deputy Head of Research.
Reuters reports that Shanghai Gold Exchange (SGE) is likely to name Jiao Jinpu, an official from China’s central bank, as its new Chairman.
ECB appointed Michael Diemer as first Chief Services Officer.
FN reports Saxo Capital Markets, the UK arm of Saxo Bank, has recruited two veterans of the trading and broking sector, Richard Balarkas (formerly Instinet CEO 2008-2012) and David Gelber (formerly Icap operating chief), as NEDs.
Charles Schwab Q3 Results – Thursday, October 15, 2015
Interactive Brokers Q3 Results – Tuesday, October 20, 2015
MarketAxess Q3 2015 Results – Wednesday, October 21, 2015
All forthcoming exchange / investment related events are now listed in our Events page.
Interactive Brokers Vice Chairman Earl H. Nemser sold 2,594 shares Friday, October 9th at $39.37 (bargain $102,125.78).
Check our Share Notes section in Premium.
Huw Jones – Reuters
Asset managers from two of the world’s top hedge fund centres, the US and Cayman Islands, must wait another five months to find out if they can continue marketing themselves to EU investors, prolonging uncertainty in the sector.
PLY: Frankly absurd protectionism.
Lindsay Whipp – Financial Times
PLY: Dough, interesting.