28 years ago on this very Monday, it was Black Monday – a remarkably turbulent period at the start of my career in the City of London. Meanwhile, the ASX had chosen this seemingly innocuous date in the spring to be the first to close a floor and move electronic. Today’s a good day to raise a glass to then CTO Rory Collins and his team who made the first legacy transition to electronic. I expect to do so from the Royal Exchange, London, later today.
Meanwhile some folks from this parish are in Qatar for the WFE. I do hope the meeting goes well and that we can see the World Federation discern its purpose and indeed become a world body for exchanges, after several rather, erratic, years, when it has appeared increasingly irrelevant (as well as costly to members). It’s CEO Nandini Sukumar’s first year organising outright and she has assembled many interesting speakers from her A list contact book.
As for today’s EI…actually just have a scroll there is some very groovy crunchy stuff.
Nate Raymond – Reuters
JPMorgan will pay $595 million, while Morgan Stanley and Barclays will pay $230 million and $178 million, respectively. Goldman Sachs, BoA and Credit Suisse are set to pay about $164 million, $90 million and $159 million, while Deutsche, Citi and BNP Paribas will pay $120 million, $60 million and $89 million. HSBC and RBS will pay $25 million and $33 million. ISDA will pay $750,000, while Markit will pay $45 million.
PLY: The success in suing Markit and ISDA for essentially not being open to deals to provide IP to exchanges strikes me as an interesting precedent for the world of infrastructure which may yet have further ramifications in the ongoing OTC-CCP-platform/exchange shuffle.
Tim Cave – Financial News
It is often said that starting a new futures market is like opening a nightclub. Lots of people will come, but only if other people are there.
PLY: The biggest problem for some upstarts in recent years was a splodge of market makers dancing around their handbags without any proper paying punters turning up to buy a drink…
QV EI Premium: A Wobbly Curve.
Eddie Van Der Walt – Bloomberg
A group of five banks, (Goldman Sachs, Morgan Stanley, Societe Generale, ICBC Standard Bank, Citigroup), and the London-based World Gold Council have asked exchanges for proposals on how to start standardized central clearing and listed derivatives for the London gold market. The request was sent to LME, LSE, ICE and CME.
PLY: An interesting posse assembled by the World Gold Council who are looking at derivatives products while separately and simultaneously the LBMA have been seeking arrangements in their name too for gold derivatives.
FAO: Previous rumours regarding WGC considering a new London exchange emerged in April. Last week LBMA also formally asked exchanges and tech firms to bid for services as a gold exchange or a clearing platform.
Liz Mak – SCMP
Discussions for a China-Hong Kong Bond Connect scheme have resurfaced, even taking priority over the Shenzhen-Hong Kong Stock Scheme.
PLY: Interesting, growth slips below 7%, China selling US T Bonds and now they are eager to trade a Bond connect…there is a fundamental financial interconnectedness to this process from the central seat of political power, which only a month or so ago seemed to have lost all control of market events.
Kenneth Lim – Business Times
PLY: An interesting announcement and good news for CME Europe.
Namrata Acharya – Business Standard
QV EI Premium: Indian Exchanges Shutdown – Brief.
Vincencia NLS – Deal Street Asia
Special Section: FTI, NSEL, India at the Crossroads
PLY: No news and both MCX and FTIL broadly flat.
MOEX halted derivatives trading at 18:10 MSK on 15 October 2015 (reported here) because of a problem with market data transmission.
Business World Online
Banks would like to unplug some terminals and Google wants to lend a hand.
PLY: I have been enjoying using Symphony of late, a useful tool.
Chris Pash – Business Insider
PLY: Further to my opening remarks on the 28th anniversary of ASX’s move to electronic trading, things now are both remarkably similar but at the same time, fascinatingly different to how the systems were conceived to be used in the 1980’s… As, as an aside, I recall (perhaps inaccurately!) the best way to discern the safest point for a back up facility in those days was to talk to a specific priest with remarkable geographical expertise in the diverse geology of the Sydney bays.
PLY: Academic paper from Sydney.
PLY: Interesting construct, presumably driven by CTD/supply factors.
Liz McCormick & Alexandra Scaggs – Bloomberg
High-frequency traders and U.S. regulators may make strange bedfellows, yet both are calling for more light to shine on trading in the $12.9 trillion Treasuries market.
PLY: Quite logical – without a centralised orderly market, HFT has difficulty coping. Some transparency helps everybody in a market which has been dealer driven for too long.
Alice Attwood – FOW
Nodal’s clearing house launches today.
Sarah Krouse & Leslie Josephs – Wall Street Journal
Liz Mak – SCMP
The jury is still out over whether the Hong Kong Monetary Authority and SFC’s recommended reforms on how OTC derivatives should be traded will do more harm than good.
Tim Worstall – Forbes
PLY: Perhaps the worst moment in post war US capitalism viewed through the prism of India – both nations suffer from extreme onion volatility as it is the one staple which has fallen foul of the regulators… Tim Worstall as pithy, punchy and enlightening as always.
PLY: An epic milestone, I can still recall copying the JGB price from Telerate to my analyst reports at Tulletts all those years ago…
Sarah Krouse – Wall Street Journal
ITG is expected to name J.P. Morgan Chase MD Frank Troise as its next CEO. The appointment follows the August ouster of ITG’s previous CEO, Robert Gasser, and a $20.3 million settlement with SEC relating to the firm’s “dark pool” pilot program. Mr. Gasser had led the firm since 2006.
QV EI Premium: “ITG, Dark Fines & A Coalition for Change.”
dna reports that National SE (NSE) appointed Mukesh Agarwal from Crisil as the new CEO for India Index Services & Products (IISL), replacing R Sundararaman. The exchange has also appointed new heads for its technology (Sankarson Banerjee), corporate finance, secretarial as well as clearing and settlement (Natrajan Ramaswamy) departments over the past six months.
19-21.10 – Qatar SE host of WFE General Assembly & Annual Meeting
20.10 – Interactive Brokers Q3 2015 Results
21.10 – SGX Q1 Results FY2016
21.10 – MarketAxess Q3 2015 Results
23.10 – Thomson Reuters Q3 2015 Results
JPX Earnings FY2015 (April 1, 2015 – March 31, 2016) – October 30, 2015
CFTC’s Market Risk Advisory Committee – November 2, 2015
All forthcoming exchange / investment related events are now listed in our Events page.
CBOE COO Edward L. Provost sold 5,000 shares Thursday, October 15th at $66.10 (bargain $330,500.00). He now owns 70,669 shares.
LSE “Overweight” Rating Reaffirmed By Barclays – GBX 2,840 Price Target
ICAP Downgraded By Barclays To “Equal Weight” – GBX 500 Price Objective, Down From GBX 600.
A full table of current analysis can be found on our Analyst Ratings page which is updated daily.
Second major fund to close amid volatility.
Karin Strohecker – Reuters