October 17 2016


It’s a Monday but it’s not November yet, so no fireworks on the Hong Kong-Shenzhen through train but it’s coming soon….

In Today’s Exchange Invest

ICE gains CCP mandate from LBMA and launches a US future loco London. Hound of Hounslow to be extradited to US, Sensex celebrates 30th birthday (and it’s still not married yet – Indian mothers everywhere will be fretting). …And there’s more, a marathon helping of more today…

(In other news, Naspers sold Allegro, Poland’s answer to eBay for $3.25 billion to private equity Friday…).


Claim your discount code now via Exchange Invest: Burgenstock is coming soon (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.
In BigWorld
The USA has a welcome boon to its civilisation just when its reputation is flagging as the battle of blond blitherers remains broadly on a plateau of “please let it be over soon.” Anyway, the good news is that Cuban cigars are now permissible in the US once again (not that it ever stopped some from the parish enjoying them back in the day when you could still have a good smoke in a New York restaurant).

The worrying part for cigar lovers is we could soon have a first man in the White House whose previous, er, indiscretions, with product from the Dominican Republic could reasonably be deemed sacrilege with a top quality Cuban. (Oh if only that were the sole challenge facing the USA you may reasonably assert!).

Anyway, let us not dwell on the descent into one of Dante’s circles the US will soon bring upon itself, onward and upward to the parish news!



Public Markets


ICE Will Start Gold Futures, Clearing London’s Daily Auction

PLY: ICE leverages position as the administrator of the London gold auction by agreeing to CCP LBMA fixing and launching a US futures contract loco London… Good deal hot on the heels of Cinnober and Autilla winning the LBMA contract for trade reporting last week, as discussed here:

Tiny Startups Revamp Gold Market After Besting Big Exchanges

… a pair of little-known startups chosen over industry titans including CME, LME and ICE.

PLY: Clearly LME weren’t going to get anything after partnering with World Gold Council. ICE has the advantage of the benchmarking biz plus now futures and CCP – I can imagine they will live with ceding TR to the worthy winners of Autilla and Cinnober. The loser in all of this is clearly CME, albeit they have a franchise to fall back on…

Exchanges As National Treasures – Unresolved Questions from ‘Pre-History’
Tom Krantz, Tabb Forum

PLY: Tom Krantz maintains a resolve to think on behalf of the exchange parish which demonstrates the extent of insight derived from his time as General Secretary of WFE. Both his recent missives, (the other on DB1-LSE) deserve a read.

Flash Crash Trader Headed to U.S. After Losing Final Appeal

PLY: The dunderheaded amateurism of the Blair government in negotiating one-sided extradition treaties is writ large in the fate of the Hound of Hounslow, whose role as a master villain worthy of Marvel comics, has been hysterically overstressed by US prosecutors.

Review Of SGX’s Bond Framework Needed
The Straits Times

Interview: Nasdaq Eyes Asia For Expanding Freight, Energy Business
bunkerworld (subscription)

NASDAQ Private Market & Scenic Advisement in Partnership

Scenic Advisement is the first purpose-built investment bank dedicated to handling secondary stock transactions for employees, company founders and investors.

PLY: Interesting initiative. The private shares market was so exciting (at least for those writing press releases) once but seems to have gone cold for the likes of Liquidnet and others since, with really only NASDAQ still actively ploughing on, it seems.


Private Markets
BSE Sells 4.15% Stake In Central Depository Services
BloombergQuintPLY: Sebi diktat says an exchange can only own 24% of a CSD and thus BSE is trimming its share – here reaching 50.05%: apparently some way to go yet.

Borsa Istanbul Money Market Directive Published

PLY: Given that BIST is really a Repo & CCP haircut business with a high profile equity market attached, this is a directive worth paying attention to.

Global Iron Ore Brokers Form Ferrous Derivatives Association
Metalbulletin.com (subscription)

Namibia: Stock Exchange, Central Bank Partner To Create CSD

ADX Launches Blockchain For eVoting Service
Exchange News Direct

Bill Lays To Rest Controversy Of Junior Stock Market
Jamaica Observer

Minister of Finance and the Public Service Audley Shaw returned from his IMF engagements last week in time to safely guide the junior stock exchange bill through Parliament..

Why Companies Don’t Want To Be Listed On Nigerian Stock Exchange

PLY: Overly zealous regulation gets the blame…

Nairobi Coffee Auction Cuts Sittings As Supply Drops
Business Daily (press release)

Low supply from millers has hit the weekly coffee auction, causing problems at the  Nairobi Coffee Exchange (NCE).

PLY: At this stage I ought to offer a plug for Mrs Young’s fabulous roasts but that could be perceived as a bit gauche. Then again if you want to know how you get your pith of a morning, well it’s usually fuelled by Manufaktura Hanza coffee.

Misys Cuts Proposed Float By £1bn
Financial Times

PLY: Now seeking to float just 20% instead of the usual 25% at 3.25-3.75 billion Pounds (USD 4- nearly 5 billion), roughly a billion less than last week. FT does an admirable, by its standards, job of blaming “volatile markets” and not Brexit for once. The dullards at the Times cannot help themselves by comparison.

Special Section: FTI, NSEL, India at the Crossroads
Jignesh Shah’s Judicial Custody Extended For 3 Days
Business Standard


Sebi Appoints 3-Member Bench To Adjudicate NSEL Broker Issue

Always Attack The Safest Spot – Lessons From Bitcoin Number Umpteen
IB TimesPLY: Why attack the ledger when the DNS is exposed? You have to have a sneaking regard for the thought which went into this approach. 
Freight Futures Market Avoids Tougher EU Information Disclosures
ReutersPLY: A logical consequence of freight data disclosure leads to some common sense application from EU.Is There An App For That? Maybe.
Today’s Trucking News

TransVix, is giving companies a way to offset the risk of a volatile marketplace by introducing a derivatives exchange based on spot rates.

PLY: The one clear disclosure ought to be that freight trading remains in its infancy.

PEGAS CEGH Natural Gas Exchange Cooperation To Start December 1

Sebi Allows Bullion As Collateral For Clearing Members
Business Standard

Sebi’s move will benefit MCX more than any other exchange.

LME Initial Margin Cut Could Save Members ‘Billions Of Dollars’ But CME Still Cheaper
Metalbulletin.com (subscription)

The LME has not disclosed the size of its proposed cut to margins calls…

PLY: Naturally this may cue up some “open clearing race to the bottom” remarks in due course.

BSE Celebrates 30 Years Of Sensex
Daily News & AnalysisPLY: Congratulations.
Career Paths
Melissa Hodgman has been promoted to Associate Director in the SEC’s Enforcement Division succeeding Stephen L. Cohen, who left the SEC in June.Anil Singhvi has resigned as an FTIL NED with the aim of working towards empowering minority shareholders. He has been replaced by Suresh Salvi (Retd. IAS).The former business development director of vendor ACTForex, Anna Chaldysheva, has joined CME Ventures.

New KRX Chief Faces Bumpy Road Ahead
Korea Times

Jeong Chan-woo, who took over as CEO of the Korea Exchange (KRX), October 5 (replacing Choi Kyung-soo) faces a bumpy road ahead as the country’s bourse operator takes on daunting tasks and thorny issues.

PLY: The KRX union appears upset at Mr Jeong’s appointment as he has considerable political connections and was formerly FSC Vice Chairman. Then again I am not sure what the trades union movement has ever done for the exchange industry collectively…


Other Stories
‘A Miracle in Our Hand’
The Rafu ShimpoPLY: A touching profile of the simply incredible but true early years of CME Chairman Emeritus Leo Melamed, one of many who managed to escape the Nazis and the subsequent horrors of Communism, as he fled with his family through Asia to eventually reach the USA, thanks to one remarkably brave Japanese civil servant.David Goldberg, CBOT Trader, Dies Aged 85
Chicago Tribune

PLY: There is a generation now passing who helped shape the risk management revolution in pits across the world. RIP David Goldberg, one of many who helped create the derivatives world, in his case through CBOT and CBOE.

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