It’s time for another round of bank recapitalising as Credit Suisse seeks a cool 6 billion or so…and that seems to be at the low end of estimates. In our parish that means the for sale signs will soon be hanging over anything the banks can continue accessing without a shareholder right…
Great IBKR numbers kick off today’s Exchange Invest Daily:
vs. Q3 2014: Net revenues $359 million, up 110%, income before income taxes $202 mln, up 405%.
PLY: Just when so many are writing off IBKR’s market making division, this relatively ‘digital traditional’ (for want of a better term!) – or so it is broadly perceived – side of the business had a great quarter as icing on the cake of a very strong brokerage quarter too. Great to see.
The Economic Times
QV EI Premium: FTIL Stakes Sales Brief.
FAO: After the recent 2.6% stake sale to Aditya Birla Capital Advisors, and last week’s sale of 11% stake to DCB Power Ventures and Kiran Vyapar, this is presumably another tranche of the share purchase agreement with multiple buyers to sell a total of 5.78 mln shares, or 19.06% (409.95 crore rupees (USD 62 mln)). After this deal completes, FTIL will retain 6.94% of IEX.
President Thomas Farley of NYSE, Nasdaq EVP Tom Wittman & Schwab SVP Jeffrey Brown, who signed the letter, asked the commission to rethink the makeup of the committee.
PLY: A bit of a stinging response seeing the two arch rivals unified and Schwab.
Reported yesterday – fee changes do not require CFTC approval, except for changes to certain incentive programs; fee changes apply to CME livestock options, not grains.
PLY: What I wonder is not so much at the clearing end but how soon we will truly see genuine anonymity and a lack of names being exchanged parallel to the SEF process? Of course the problem is overstretched regulators are already cocooned in a degree of chaos driven by political regulation which has not been properly considered in the post Lehman haste.
Huw Jones – Reuters
PLY: Tricky when we need more asset financing and thus more securitisation levers.
Michael Mackenzie & Philip Stafford – Financial Times
Dubious trading practices are once more back in the spotlight after CFTC this week accused 3Red Trading and its co-founder Igor Oystacher of “spoofing” markets from commodities to stock index futures.
James Rundle – Financial News
The European Council has said that information-sharing between regulatory bodies and lawmakers should be improved, following a summer row that raised concerns about the level of Parliamentary scrutiny being given to key pieces of financial regulation.
PLY: Good core ethos. However with regulators maxxed out and, frankly, vast numbers of politicians not understanding the rules they are studying…
The Economic Times
UK-based private equity (PE) fund Actis has agreed to sell its 1% seven-year-old investment in NSE to Hong Kong-based secondary portfolio buyer New Quest Capital Partners for Rs 178 crore (USD 27.3 mln), at almost the same valuation at which it acquired the stake (aprox. USD 2.73 bln). Actis, along with other marquee investors including Citigroup and Goldman Sachs, has been pushing the NSE management for an IPO for a while. However, the exchange blamed regulatory and other issues for delaying its listing plans.
FAO: Last month IFCI sold 1.5% in National SE (NSE). Sold 675,000 shares at Rs 3900, bargain Rs 263.25 crore (USD 39.7 mln). Valuation of the exchange under this price was around USD 2.63 bln.
PLY: Shareholders are restive as India’s dialogue about IPO’s and exchanges is back on, albeit the process may take a considerable period of time and that is likely longer than the patience threshold of some BSE and NSE investors – watch for some impatient outbursts on the horizon as frustration with the speed of progress, or lack thereof. The dialogue remains at a very embryonic stage.
Ukraine’s Agricultural Policy & Food Minister, Oleksiy Pavlenko, said that the top managers of CME recently visited Ukraine and analyzed the creation of a commodity exchange in Ukraine and the guarantees for its efficient functioning.
FAO: Meanwhile, Ukraine’s Securities Commission recently annulled the license of PFTS and the decision will take effect next month. In September MOEX Supervisory Board approved management’s proposal to exit the Group’s subsidiaries in Ukraine (MOEX holds 50% plus 1 share in PFTS and 43.08% in Ukrainian Exchange).
Manhattan Attorney Preet Bharara is investigating whether the business model behind daily fantasy sports companies such as DraftKings and FanDuel violates federal law, WSJ reported.
Previous discussion here.
PLY: The inevitable… Newspaper headlines tied in with companies which were at first reluctant to pay attention to sufficient regulatory oversight now have the dudes wielding options on civil suits & orange jumpsuit wearing paying eager attention. Not good, especially not given the hyperfrothy valuations of some in the sector. Remember the salutary story of Intrade which was eventually crushed to within an inch of its life by the CFTC alone, not even the pure play prosecutorial folks involved here.
PLY: Interested to see what this may mean in practice.
Roger Aitken – Forbes
A fund to invest in the world’s first ever Bitcoin mining company through an Australian IPO, which recently went live on the online investment platform BnkToTheFuture, has secured pledges amounting to almost US$3m – representing 82% of its target – to invest in Bitcoin mining company Bitcoin Group Limited.
Stan Higgins – CoinDesk
Interactive Brokers quarterly cash dividend of $0.10, payable on December 14, 2015, record date December 1, 2015.
Special Section: FTI, NSEL, India at the Crossroads
PLY: FTIL up 1%, MCX flat.
Mobis Philipose – Livemint
PLY: Lovers of latency tales and marketing hype stories must read this typically insightful and pithy missive from the excellent offices of Mobis Philipose.
PLY: “There’s a man out there called Justin Trudeau and if fully implemented, his manifesto could prove seriously detrimental to your wealth…” Oh no, hold on a second, that wasn’t it, this is something to do with a WhatsApp scam.
Richard Leong & Jonathan Spicer – Reuters
US regulators and policymakers want to improve transparency and tighten rules governing the $13tn Treasury bond market, particularly ramping up supervision of HFT firms.
Anchalee Worrachate – Bloomberg
HSBC, Deutsche Bank and Credit Suisse are among 14 banks that agreed to use the system developed by Algomi, according to co-founder Stu Taylor. It lets banks give access to their pre-trade data to fund managers who want to discreetly identify who owns corporate or government bonds that are not widely traded.
Ivy Schmerken – Markets Media
Part 1 here.
CBOE launched new cash-settled options on three indexes – Russell 1000 Index (RUI), Russell 1000 Growth Index (RLG), and Russell 1000 Value Index (RLV).
FOW reports that Adam Husted has left his role as executive director, head of clearing and business development at CME Clearing Europe.
LCH.Clearnet appointed Christine Cumming to the BoD of LCH.Clearnet LLC, the Group’s US-based entity. Christine serves as an independent NED and also as a member of the Risk Committee. Prior to her appointment, Christine held a number of leadership positions over her 35-year tenure at Federal Reserve Bank of New York.
INTL FCStone appointed Arlan Suderman as Chief Commodities Economist.
SEC named Wenchi Hu and Christian Sabella as Associate Directors in the Division of Trading and Markets’ Office of Clearance and Settlement.
FN reports that David Wright, the departing secretary general of IOSCO, is to join the European think-tank Eurofi when his term ends next year.
PLY: A very welcome addition of mental heft to Eurofi.
19-21.10 – Qatar SE host of WFE General Assembly & Annual Meeting
21.10 – SGX Q1 Results FY2016
21.10 – MarketAxess Q3 2015 Results
22.10 – NASDAQ OMX 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
FXCM Q3 2015 Results – November 5, 2015
Markit Q3 2015 Results – November 10, 2015
All forthcoming exchange / investment related events are now listed in our Events page.
LSE “Hold” Rating Reaffirmed By Numis Securities – GBX 2,450 Price Target
LSE “Hold” Rating Reaffirmed By HSBC – GBX 2,500 Price Target
CBOE Price Target Upped By Jefferies To $62.00 – “Hold” Rating
Thomson Reuters Price Target Raised By Scotiabank From C$55.00 To C$56.00 – “Sector Perform” Rating.
A full table of current analysis can be found on our Analyst Ratings page which is updated daily.
Jamie Nimmo – EveningStandard
Funding Circle bought the 18-month-old company from Rocket Internet and will rebrand it. Terms were not disclosed.