October 14 2015

elb2Lots happening, with London Metals Week and SIBOS driving the press release agenda and some news too, let’s get to it:

Public Markets

FIS Proposes Offering Of Senior Notes

BUSINESS WIRE

…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.

 

Plus500 Shares Barely React To Blowout Q3 Revenue Numbers – But Why?

LeapRate

Plus500: A Trade That Is Becoming An Investment? (subscription)

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.

 

LME Says ‘One-Size-Fits-All’ Regulation Won’t Fit Metals Market

LME

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.

 

UBS Settles U.S. SEC Case Over Structured Notes For $19.5m

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.

 

Excitement Over HKEx Tempered By Weaker Outlook (subscription)

Jennifer Hughes – Financial Times

PLY: With a market pullback, HKEx has lost its position as the largest market cap public traded exchange….

 

Mila Should Take A Page Out Of Nasdaq Nordic’s Book (subscription)

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.

 

Trader Tom Hayes Developed A ‘God Syndrome’

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.

Broker Told Prosecutors He Couldn’t Ignore ‘Psychotic’ Hayes

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.

 

French Bank Chief Sceptical Of EU Plan To Revamp Securitisation

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.

 

The Long And Winding Road Towards An Audit Trail (subscription)

Nicole Bullock – Financial Times

 

Policymakers Left With Problem In The Wake Of London Whale (subscription)

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.

Private Markets

BIST Has Ambitious Expansion Plan (subscription)

Financial Times

PLY: One could argue this is the same story pertaining to Turkey we have heard for years…

 

Nigerian SE Announces Financial Advisers For Demutualisation

MondoVisione

Nigerian SE Appoints Advisors To Prepare Possible IPO

Reuters

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.

 

Deposit ₹21 cr (USD 3.22 mln) More, MSEI Told

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.

QV EI Premium: Exchange Deals Brief Part 1, Part 2.

 

Myanmar To Open Yangon SE In Early December (subscription)

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.

 

JFX To Open World`s First Market For Tea Futures Contracts

Tempo

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.

FTIL Makes Last-Ditch Effort To Avoid NSEL Merger

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.

 

Fin Min Was Keen On Action Against Brokers In NSEL Scam

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.

QV EI Premium: NSEL-FTIL Merger Brief and NSEL Scandal Brief – Part 16.

Technology

Orc Group & CameronTec Group Join Forces

MondoVisione

 

New York State Department of Financial Services Reaches Agreement With Société Générale On New Symphony Chat Platform And Issues Guidance To All Regulated Institutions On Use Of Symphony

MondoVisione

 

HFT Makes Up 50% Of Tokyo SE Transactions

Nikkei

 

Technology Changes The Nature Of Violations (subscription)

Gregory Meyer – Financial Times

…Regulators — and criminal prosecutors — are beginning to catch up.

 

FastMatch Executes First Disclosed Trade On Its Global FX Platform

GLOBE NEWSWIRE

 

MaRS & TMX Announce FinTech Collaboration

Canada NewsWire via COMTEX

 

Thomson Reuters Launches Waterloo Innovation Lab

James Bradshaw – The Globe and Mail

 

Blockstream To Launch First Sidechain For Bitcoin Exchanges

Pete Rizzo – CoinDesk

 

Blockchain Promises A Ledger Revolution (subscription)

Financial Times

Products

ICE Clear Credit Launches Clearing For Western European Sovereign CDS

ICE

ICE introduced CDS clearing for the following sovereign single names: France, Germany and the UK.

 

New Era In Interest Rate Risk Management In The Turkish Capital Markets – Borsa İstanbul Derivatives Market (VIOP) Launches First Interest Rate Product: Overnight Repo Rate Futures

MondoVisione

PLY: Interesting move as the CCP-cleared repo market in Istanbul is a huge profit centre for the exchange.

 

BM&FBOVESPA Expands Market Maker Program

MondoVisione

 

DB1 Supports Traders With Real-Time Risk Alerts For Most Liquid Eurex Futures

DB1

 

MTS BondVision Fully Integrates & Enhances MTS B2SCAN Price Discovery Tool

LSE

 

China Said To Loosen Rules On Issuance Of Corporate Bonds

Bloomberg

 

China’s Largest Commodities Exchange To Build Intl Platform (subscription)

Financial Times

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.

 

India – Competition Hotting Up In Commodity Exchange Space

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.

Indexes

Nasdaq Presents First North 25 Index Constituents

Nasdaq

 

NSE’s IISL Launches Four Bond Indices

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.

Career Paths

BoE has not yet approved any individual as the new CEO of Barclays bank, a spokeswoman for the BoE said on Tuesday. Jes Staley is rumored to become the new Barclays CEO.

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.

Financial Calendar

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.

Share Notes

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.

Other stories

Singapore & China Agree On New Initiatives To Boost RMB Business

MondoVisione

 

U.S., Cayman Islands Face Wait For EU Green Light On Hedge Funds

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.

 

The Affluent Millennials Put Their Faith In More Nimble Platforms (subscription)

Lindsay Whipp – Financial Times

PLY: Dough, interesting.

 

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