October 31 2016

elb2 In Today’s Exchange Invest

NZX more encouraging results than most, NASDAQ renews and expands technology cooperation with Swiss Exchange while Swiss Railways start selling Bitcoin.


A new event joins the roster looking ahead: the MOEX Annual Forum will visit New York Tuesday November 15th and London Tuesday December 6th. Join the event free via Exchange Invest here.

For those interested in MIFID, the biggest forum or the past decade in Germany is back November 17th when I look forward to chairing a session at the 10th Anniversary MIFID Conference. A sell-out audience of 300+ from around Germany and further afield is expected.

Anybody not booked for Burgenstock yet? You can still Claim your discount code via Exchange Invest: (see banner on left- and use this discount code “YOUNG15” to get 15% off the delegate fee). Crossfire kicks things into gear on the AM of 15th with cocktails the evening before. As always, “the right crowd and no crowding” is the mantra of the modern ICDA events borrowed from the heyday of Brooklands.

In BigWorld

Now at least it is clear – the next President of the United States will be noted for their past failures of judgement and moreover a great deal of questions remain about their qualities of character and just how trustworthy they are to lead the free world.

Now all we have to do is wait a week or so to discern just which of the rather sublimely flawed candidates gets to redecorate the White House in their image in the New Year.

Public Markets

CBOE Holdings Posts 16% Revenue Decline On Sliding Trade Volume

Wall Street Journal


PLY: Readers exercising intuition and analytical insight might notice the Journal headline differs slightly from the “CBOE Holdings Reports Solid Third-Quarter Results” headline from the company’s press release.


…Now the destiny of CBOE is clearly in its acquisition of BATS and the means to leverage cash versus options not to mention the European arm of BATS and ETF’s world-wide. It’s a fascinating deal.


Dubai Financial Market Q3 Net Profit Drops 22%


PLY: A rather disappointing quarter all round the parish really.


NZX Ltd Q3 Revenue Growth Of 3.9%
NZX Q3 2016 Revenues & Operating Metrics


PLY: At least NZX is amongst the few bucking the downward trend in revenue, as it looks for a new CEO.


U.S. Said To Probe Tullett, BGC, TFS-ICAP Over Currency Options


U.S. authorities are investigating whether middlemen in the $5 trillion-a-day foreign exchange market posted fake bids, rigged auctions and gave confidential information to others who then profited from it.


PLY: It’s another of those clash of culture things – ambitious political prosecutors finding practices which have been around for a long time but can be deemed unfair or unreasonable… (albeit it is tough to see who profits from a false options price insofar as if you think it’s misplaced, wouldn’t you take the price one way or another…) so really we are talking about a ‘framing’ of the bid offer around fair value which everybody has on their computers, AKA pricing ‘on the wide’ to entice ‘paper?’ Not outstanding behaviour but surely an indicative is not utterly unreasonable? That said giving away confidential information is tricky. However,  I am sure we’ll see a lot of hairsplitting here too…aka where perceived market colour becomes fact. Of course if the IDBs were dealing with, say, Mr A. Weiner of NYC, then there is a big problem with information leakage as his devices seem to know more than even the Secretary of State at the time.


Anyway, this investigation is not good for the IDBs who have failed to keep up with the digital times in many ways. Meanwhile the ICAP answer is fascinating to this CFTC investigation as a result of the NY AG’s initial subpoena where it concerns their forex j.v. with Tradition: “ICAP only has an economic interest in this venture of 23 percent and no management control.” That’s one buck passed.


EBRD: Armenian Parliament Passes Financial Market Laws


PLY: As noted last week. This opens the way to derivatives markets – good news presumably for incumbent exchange NASDAQ Armenia in particular.


WSE Financial Results For Q3 2016 – GPW Group’s Growing EBITDA In Q3 2016 – Driven By Strict Cost Regime


Corralling The Unicorns: Nasdaq & NYSE Work To Court The Next Blockbuster IPO


How did the Nasdaq become the defacto destination for tech companies and how is the NYSE competing with its uptown brethren?


LME Must Tackle Rivals, Scepticism In Race For London’s Gold Market
FastMarkets Metal News
Volumes Down, Discontent Up On LME


PLY: It has to be said that given there never appears to be anything but discontent amongst the members of LME over both time and multiple management teams, one does start to wonder where the issue might lie.


LMEshield To Launch In People’s Republic Of China


PLY: Good news for LME and the IT vendor Kynetix.


Jamaica SE Shareholders Approve Five-Way Stock Split
Jamaica Gleaner


PLY: Jamaica follows in the footsteps of ICE in splitting their stock.


Private Markets


Mainland Media Praise For ChiNext Startup Board May Be Misplaced
South China Morning Post


China’s state-owned media have begun to publish upbeat commentaries about the start-up board at the Shenzhen Stock Exchange ahead of its 7th anniversary.


Traders Give Chicago Stock Exchange Rough Ride Over ‘Speed Bump’
Financial Times


Jordan Looks to Reinvigorate Trading With A New Exchange
Venture Magazine


PLY: New OTC board for Amman. By coincidence, I am in Jordan  later this week to speak at the ICA conference.


Luxembourg SE Tightens Cooperation With China
Luxembourg Stock Exchange


Commodity Exchange FEX Global To Debut Next Year
FEX Global confirms CME Clearing Europe as clearing service provider
Automated Trader


FEX Global, an Asian commodity exchange that plans to launch next year, has signed an agreement with CME Group’s European clearinghouse. “We’re planning to launch in [the second quarter of] 2017, subject to regulatory approval, and we will be focused on energy, commodity and environmental products,” said FEX Group CEO Brian Price.


PLY: FEX going international boosts CME Europe clearinghouse. I wish the venture every success.


Flexihedge Launches World’s First ‘P2P’ Financial Betting Exchange


PLY: Not the first (both Betfair and Tradesports/Intrade – of which I was a cofounder – offered financial contracts), unless you start microhairsplitting which  is tedious as there is a good story here all the same. There is more demand for risk transfer broken down to such a micro level. I wish this new venture every success especially as it builds on work from the likes of my own “Capital Market Revolution!” and indeed various online sites under my suzerainty dating back 20 years and more.


Sebi Allows Bombay Commodity Exchange To Exit Bourse Biz
Business Standard
Sebi Directs Bombay Commodity Exchange To Make An Exit
Business Standard


Bitcoin ETD Exchange ‘Deribit’ Announces Zero-fee Trading


PLY: Interesting news, I am not aware that the exchange is regulated, incidentally.


MSE Eyes New Classes Of Funds
Times of Malta


“Ireland’s and Luxembourg’s stock exchanges have 80,000 listings between them. We have 260,” Chairman Joe Portelli told the audience of Malta’s top stockbrokers,


PLY: Further to my coverage Friday of this interesting new masterplan produced by the Malta Stock Exchange.


New Regulations Passed For Securities Exchanges


PLY: While the incumbents have been broadly merged into one, Pakistan prepares rules for new entrants to the local exchange market.

Special Section: FTI, NSEL, India at the Crossroads

How The Government Fixed A Mess In India Inc: The Case Of Satyam
The Indian Express

PLY: An encouraging tale albeit it took years…



SIX Swiss Exchange Extends Technology Contract With Nasdaq


PLY: Put it this way, I am hard pushed to discern what technology won’t come from NASDAQ after this comprehensive renewal and extension!


Brave New Bitcoin for Tullett Prebon
Banking Technology


PLY: Tulletts to provide Brave New Coin Bitcoin data stream. Article also mentions recent Tullett moves in technology such as partnering with GMEx and the opening of a Belfast tech centre.


Securities Commission Malaysia Releases Guidelines To Enhance Cyber Resilience Of The Capital Market



Saudi Arabia Suspending Local Bond Issues After Overseas Success
Zawya (press release)

PLY: Dramatic headline, actually looks like a month long hiatus for local issue after their $17.5 billion megabond issue earlier this month.


Pakistan Mercantile Exchange Launches Copper Futures Trading
DunyaNews Pakistan


Swiss Rail Operator to Sell Bitcoins at Ticket Machines


PLY: Great innovation by SBB, albeit I doubt they’ll allow you to garner the advantages of the 50% discount rail card for Bitcoin acquisition…



Shanghai Signs DGCX As 1st Foreign Exchange To Use Its Gold Fix For Futures


PLY: Confirms story first mentioned October 18th. Interesting move by DGCX in the midst of unprecedented gold marketplace competition and given DGCX’s historically strong Indian links. Will next year Diwali’s gold be hedged against the Shanghai fix? Or might DGCX look to expand its range of gold fixes yet further?


Career Paths

BATS head of forex Bill Goodbody jr is leaving the group after 18 months, according to FX Week to move to Australia in what they describe as an ‘amicable parting.’


EU Watchdogs Want Bank Management Screened Before Being Hired


PLY: In seeking to have applicants vetted 3-4 months in advance of appointment, that could almost but not entirely freeze hiring bankers from competitors… Vetting is not a bad idea (but by suitably qualified folks) but the nature of the vetting is tricky because of confidentiality issues which the regulators do not seem to have considered coherently.


SEBI Nod For Appointment Of Shareholder Director On MCX Board



P2P Lender Bondora To Split Platform Into Separate Sections For Borrowers & Investors
SMN Weekly (blog)


PLY: Interesting proposed sub division of the platform into separate borrower and lender entities…


Crowdcube Reports Increasing Deal Sizes As Average Amount Raised Jumps 40%
Crowdfund Insider


The UK’s largest equity crowdfunding platform, Crowdcube, is getting bigger.


Other Stories


Does Governing Law Affect Bond Spreads?
World Bank Blogs


Conventionally the governing law should not affect the cost of borrowing in international markets. If it did, borrowers would use the cheaper jurisdiction…


PLY: Fascinating, as, this isn’t the difference between, say Venezuela and, say, civilisation, we’re taling UK
versus US post 2008…


IOSCO Reports On Implementation Of G20/FSB Recommendations To Strengthen Securities Markets


Book Excerpt: History of BSE & How Share Trading Began In India

Onwards and through a busy week, I’m looking forward to my days in Jordan as a hyper busy month kicks off.
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