October 15 2014

elb2

A frantic day at the Moscow Open Innovation Forum and an interesting one for the exchange world too…

Big news is the CME, pleading poverty for some time now, has finally taken an axe to costs. Not before time and the 5% headcount reduction ought to be only a start to a much flatter and more responsive structure. Well done CEO Gill for bringing change to what was looking ominously like a blob.

Elsewhere…just what is Barclays Index group selling?

All this and more…and now back to a fascinating meeting about nanotechnology in Moscow. ..Happy scrolling today’s EI

Public Markets

Mercuria Closes Acquisition Of J.P. Morgan Chase Physical Commodities Business
MondoVisione

Mercuria Energy Group has successfully completed the acquisition of J.P. Morgan Chase & Co Physical Commodities Business, following the Sale Agreement March 2014.

Barclays Index Business Auction Hits Snag
Jessica Toonkel & Mike Stone – Reuters

Barclays’ auction of its index business, which includes the widely used Barclays U.S. Aggregate Bond Index, has hit a snag: some crucial bond pricing data belongs to Bloomberg and IDC amongst others.

Bidders include McGraw Hill Financial Inc’s S&P Dow Jones Indices and Markit.

EI reported on August 28th that Barclays’ Index Unit may sell for much more than the original $400 mln. EI also reported on August 14th that Barclays Index Unit drew offers from Nasdaq, CME, Bloomberg and Markit.

PLY: This oversight elegantly surmises my customer experience with Barclays.

Trading Places: Huw Jones, LSE To Make Its Mark With Russell Deal?
Huw Jones – MondoVisione

Brokers Group Sees Conflict In Vote For Nasdaq System
Nick Baker – Bloomberg

Nasdaq and Tradeworx’s Thesys Technologies are the finalists (previous reported here) to run the SIP.

PLY: As we all know brokers would never vote for themselves in any processs so they are criticising NASDAQ for voting for itself to run its SIP.

Previous discussions here.

WSE Targeting Prop Traders In Growth Push (subscription)
FOW

WSE is targeting proprietary trading firms as it seeks to grow its international profile.

PLY: Simple incremental common sense, sound move.

‘Dual-Class Shares’ May Not Be Apt For S’pore Investors
Goh Eng Yeow – The Straits Times

The debate about allowing “dual-class” shares in Singapore is cropping up again in the light of the Government’s revamp of the Companies Act to remove the one-share-one-vote restriction.

Previous discussions here.

EuroCCP Expands Its OTC Trade Services By Adding Traiana’s Harmony Platform
MondoVisione

EuroCCP announced its clearing services for clients’ matching OTC transactions with Traiana.

Private Markets

DBS Bank Partners INE To Develop Energy Futures Market In China
Channel NewsAsia

Ben Lawsky: We Can Police The Dark Web/Bitcoin
ValueWalk

PLY: Ben Lawsky, Superintendent of the NY State Department of Financial Services, sounds dangerously like a Gotham city regulator in synopsis at least…

Special Section: FTI, NSEL, India at the Crossroads

PLY: FTIL down 5% as reality bites. MCX decoupled and flat.

Distressed Investors Want NSEL To Invoke Settlement Guarantee Fund
Purba Das – Business Insider

NSEL scam hit investors have demanded the management to invoke Settlement Guarantee Fund (SGF) to partly pay off the investors.

In a strongly- worded letter to Saji Cherian, the current managing director and CEO of NSEL, Ketan Shah, a distressed investor has questioned the delay in the initiation of the process.

Technology

MOEX Temporarily Suspends Trading On Futures Market
Reuters

Trading on MOEX’s Derivatives Market was resumed at 3:30pm MSK after it was suspended from 2:14 pm MSK. Order cancellation became available at 3:15 MSK.

MOEX press release here.

A High-Speed Trader Looks To Slow Down Critics (subscription)
Bradley Hope – Wall Street Journal

Jason Carroll helps run one of the most active trading firms in the world, accounting for more than 5% of U.S. stock transactions on most days.

Products

Innovative New Corporate Bond Trading Through API On MTS BONDS.COM Platform
LSEG

Malaysia Bourse To Broaden Offerings (subscription)
Jeremy Grant – Financial Times

Bursa Malaysia is moving to revive its almost defunct financial futures products by relaunching government bond and interest rate contracts by the end of the year.

BM&FBOVESPA Will Have New Trading Hours For Contracts That Reference Commodities, As Of October 20, 2014
MondoVisione

Taiwan To Relax Derivatives Trading Rules For Life Insurers (subscription)
Xiao Wang – Risk

Taiwanese authorities are set to relax financial derivatives trading rules for life insurers as early as the year-end, as part of efforts to further develop the island’s financial market.

Buyside Trades FX With Buyside In Bank-To-Bank Venues
FTSE Global Markets

A new report from GreySpark Partners, a London-based capital markets consultancy, has found that buyside firms are increasingly accessing spot FX liquidity by trading with other buyside firms within trading venues that were previously considered bank-only platforms.

ICMA’s European Repo Council Reports Successful Migration Of The European Bond Markets To T+2
MondoVisione

Indexes

NYSE Announces Enhanced Methodology For The NYSE Arca Biotechnology Index
ICE

Now includes 30 companies representing a cross-section of the biotechnology industry.

Career Paths

CME To Cut 5% Of Workforce (subscription)
Michael Calia – Wall Street Journal

CME said it plans to cut 5% of its workforce, or about 150 positions, this week, as the exchange operator presses forward with previously announced structural changes.

Most of the job cuts will come from CME’s technology operations. CME added that it expects the decision to result in lower costs and fewer layers of management.

CME press release here.

No More Mr. ICE Guy, Indeed: Marcial Steps Down At ICE
Anthony Malakian – Waters Technology

According to his LinkedIn profile, Edwin Marcial, CTO at ICE, is stepping down after 18 years with the company.

The Economic Times reported that India’s government has given another three-month extension to commodity markets regulator FMC chairman Ramesh Abhishek.

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.

Other stories

CFTC’s Giancarlo Set To Revive Energy Advisory Committee (subscription)
Alexander Osipovich – Risk

CFTC is poised to resuscitate a long-dormant advisory committee designed to provide the agency with input from the energy industry.

The Energy and Environmental Markets Advisory Committee (Eemac) was placed under new management on September 10, when CFTC chairman Timothy Massad appointed commissioner Chris Giancarlo as its new sponsor. Both Giancarlo and Massad are new members of the CFTC and joined the commission in June.

Remarks To The Securities Enforcement Forum 2014, SEC Commissioner Michael S. Piwowar, Washington, D.C., Oct. 14, 2014
MondoVisione

BMV Group Continues Working To Strengthen Its Sustainability Strategy
MondoVisione

The implementation of actions and programs such as: Sustainable Stock Exchanges, Adhesion to the United Nations’ Global Compact and the “Neutral Carbon” stamp strengthened BMV Group’s institutional strategy in the sphere of sustainability.

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