October 21 2014

elb2

First up thanks to everybody who wrote appreciative and supportive words about Gary Anderson who stood down as DGCX CEO Sunday. He deserves all these warm testimonials and more.

Today, lots of stories from London Metals Week – Autilla splitting from LME to bid for the London Gold Fix amongst them, while there are new products galore, various pieces of regulatory news, HKEx angling for a commodity through train while DB1 are looking for a new CEO…although I thought we knew that in June.

Happy scrolling:

Public Markets

Bursa Malaysia Q3 Financial Results
The Star

Bursa Malaysia Bhd’s earnings rose 14.8% to RM 53.09 mln (16.28 mln) in Q3 ended Sept 30, 2014 from RM 46.21 mln (USD 14.62 mln) a year ago, boosted by higher profit from its securities market operations. Revenue increased by 7.2% to RM 128.96 mln (USD 39.55 mln) from RM 120.28 mln (USD 38.06 mln). EPS were 10 sen compared with 8.7 sen.

Full results here.

PLY: Healthy growth in KL and environs.

HKEx Wants Trading Link With Shanghai For Commodities
Reuters

HKEx said it aimed to create a link to trade commodities with mainland China by adapting a share trading system with the Shanghai SE that is on the cusp of going live.

PLY: Logical, and clearly something which would be ideal for LME…

LME To Offer More Electronic Liquidity On Monthly Dates
Reuters

LME plans to offer more liquidity on on its electronic platform to attract more investment from speculators & funds, as Metals week continues in London.

Autilla Breaks Away From LME For Gold Fix Submission
Ian Walker – Bullion Desk

Autilla has decided to break from its partnership with LME in its bid for the administration of the gold fix, hoping to create a more transparent and reputable independent solution.

Although the two parties worked together on a proposition for the silver fix earlier this year, London base technology firm Autilla has decided to join forces with independent global consultancy Sapient for the race for the gold price benchmark.

In July this year, the silver benchmark system proposed by Autilla and the LME lost out to the joint bid by CME and Thomson Reuters.

Hong Kong Financial Secretary Says Protests Won’t Derail Shanghai Stock Trading Link
Reuters

Hong Kong’s financial secretary John Tsang has rebuffed rumours that the pro-democracy Occupy Central movement, which has brought the city’s financial district to a standstill in recent weeks, might derail a landmark trading link between Hong Kong and China expected to launch on October 27.

On August 25th, HKEx completed connectivity test for Shanghai-Hong Kong stock connect.

Turquoise Block Discovery Goes Live With Seven Major Brokers
LSE

Turquoise announces the launch of Turquoise Block Discovery, a new service enhancing its existing Midpoint Dark Book. Developed in close partnership with buy and sell-side market participants, it will be supported from launch by seven major brokers including: Barclays, Instinet, ITG, JP Morgan, Morgan Stanley, Neonet and Societe Generale. Bank of America Merrill Lynch, Citi, Deutsche Bank, UBS and others are expected to join shortly.

PLY: LSE’s Turquoise create an attempt to replicate a Liquidnet style service but with traditional sell-side intermediation.

Dark Pools Boost Trade Sizes To Rise Above EU Caps (subscription)
Tim Cave – Financial News

The operators of European dark pools are stepping up efforts to encourage larger institutional orders because forthcoming EU caps on dark pool volumes will not apply to large trades.

PLY: The dark pool cap being just one of many last minute botch-ups which make little sense but still became part of the dog’s dinner which is MIFID II.

Private Markets

DME & Shanghai International Energy Exchange Corporation To Collaborate On Energy Products
MondoVisione

The Shanghai International Energy Exchange Corporation (INE) and DME have signed an MoU to strengthen cooperation in promoting the development of crude oil futures.

Brokers Seek Reduction In Option Trading Charges At NSE
The Economic Times

Concerned over high costs of doing their business, brokers have requested top bourse NSE to consider lowering the transaction charges for options segment in derivatives and currency trading markets.

New Bitcoin Exchange Launches In Sydney
David Swan – Business Spectator

Independent Reserve CEO Adam Tepper said his company would provide security and financial services expertise to the growing world of Bitcoin.

Special Section: FTI, NSEL, India at the Crossroads

PLY: Both MCX and FTIL are up just over 1%, no other news.

Technology

BTC China Adds Mining Pool & Merchant Payment Services
Jon Southurst – CoinDesk

BTC China is expanding its services with the addition of a new mining pool and merchant payments processing, further diversifying from the original core exchange.

Products

LME Musters Limited Support Ahead Of Steel Contract Launch
Reuters

LME has attracted little support so far for its planned steel derivatives, struggling to overcome limited appetite for steel contracts outside China, including for its own troubled billet future.

LME said in June it would launch new steel rebar and scrap contracts next year, adding that it was committed to its existing billet future, even as it admitted the contract was not functioning properly.

CME Launches Illinois Basin Coal Futures Contract
Platts

The physically-settled contract trades under the product symbol ILB with a contract size of 1,750 st. Delivery is FOB barge on the lower Ohio River.

SGX Debuts Renminbi Futures
People Daily

SGX launched Renminbi futures on Monday to add to its suite of Asian foreign exchange futures.

Indexes

Hang Seng & Markit Launch iBoxx Offshore RMB Bond Index Family
HedgeWeek

Hang Seng Indexes Company and Markit have launched the Hang Seng Markit iBoxx Offshore RMB Bond Index family (HSM iBoxx).

Career Paths

DB1 Begins Search For New CEO
Will Hadfield – Bloomberg

DB1 has begun a search for a replacement for CEO Reto Francioni (59) who has served as CEO since 2005, overseeing an exchange operator that’s now the fourth-biggest in the world based on the value of its own shares. Under German corporate law, CEOs can only seek one-year contract extensions after turning 60.

“I have a contract until October 2016, and any change to that is a matter for the chairman and the supervisory board,” Francioni said.

PLY: We discussed some succession talk in June which suggested that heir apparent Andreas Preuss may not have the momentum to gain the top job. Meanwhile congratulations to him on his stint as World Federation of Exchanges Chairman which concludes next week in Seoul.

FN reports that Robert Pickel, the former CEO of ISDA has joined the board of a US-based fintech start-up Droit Financial Technology in his first move since leaving the industry body in April. Financial technology investor Mark Beeston, and former UBS Group Managing Board member Seth Cohen, also joined the Droit Advisory Board.

Droit Financial Technology press release here.

Options Group announced the hire of Richard Stein as Partner.

SEC announced that Marc Wyatt has been named Deputy Director of the agency’s Office of Compliance Inspections and Examinations (OCIE).

Financial Calendar

Today

SGX Q1 FY2015 Results
Interactive Brokers Q3 2014 Financial Results

Friday

NASDAQ OMX Q3 2014 Financial Results
Record date Tullett Prebon 5.6p interim dividend

All forthcoming exchange / investment related events are now listed in our Events page.

Crowdfunding

Maryland Securities Commissioner Finalizes Rules For Intrastate Crowdfunding
Masai McDougall – Crowdfund Insider

In March of 2014, the Maryland General Assembly passed legislation enabling small businesses to participate in intrastate crowdfunding. The Maryland Securities Commissioner released its final rules for compliance with the exemption on October 1, 2014, making intrastate crowdfunding in Maryland fully legal.

Other stories

No Adverse Effects For Canada From Launch Of Chi-X 2–CMCRC
MondoVisione

New research released by the Capital Markets Cooperative Research Centre (CMCRC) examines Canadian market quality in the wake of the introduction of Chi-X 2. The research concludes that the new market has added diversity without detracting from the key markers of market quality.

KRX To Host “2014 WFE General Assembly And Annual Meeting”
MondoVisione

KRX will host the 2014 WFE General Assembly and Annual Meeting at Grand Hyatt Seoul from October 27th to October 29th.

PLY: Much as I adore Seoul, alas this year I won’t be attending the WFE event.

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