October 4 2016

elb2In Today’s Exchange Invest

Michael Spencer discusses RMB (his ICAP was doing as I recall 500 yards a day what seems like eons ago…) while ICE may be selling the managed services end of IDC. Tullett revamps top tier ahead of what will be management by ‘night of the long knives’ for many months to come presumably.  Tick size debates in the USA, NZX CEO standing down and Chi-X launches Kai-X broker neutral platform in Japan. Plus there’s more…


I am headed to Malta to join a panel at the EY Annual Attractiveness Conference on FDI alongside amongst others Joe Portelli the Malta SE Chairman. Elsewhere don’t forget about Burgsenstock (see banner on left November 14-16) and likewise the Stuttgart SE 10th Anniversary MIFID Conference also November 16th…
In BigWorld
Meanwhile in Bigworld, I am feeling, well, a touch mature… I can recall when the focus of the movies was on the forces of law & order protecting Wells Fargo from the bandits. In the digital wild west of modern banking matters seem to have somewhat reversed.



Public Markets
Renminbi Internationalisation Attracts Foreign Service Providers
South China Morning Post

Speaking exclusively to the South China Morning Post last week, ICAP chief executive Michael Spencer, on his way to a further meeting with CFETS to which ICAP is providing technology and expertise.

Fifteen Years After Decimalization, ‘Tick Size’ Widening For Some Small-Company Stocks
Wall Street Journal

PLY: Easy ways to wind up American equity market makers: ask “a penny for your thoughts” and they usually launch into a passionate diatribe… not about the 1% but the one eighth of a dollar, you understand.

HKEx Needs To Look Again At Delisting Mechanism
South China Morning Post

PLY: There is a certain delicious irony in that classic bastion of capitalism Hong Kong being called out by the Shanghai Stock Exchange on a relatively unsophisticated approach to delisting proceedure…

MCX Applies For Clearing Corporation
Business Standard
MCX Unit Applies To SEBI Seeking Recognition As A Clearing Corporation

MCX Warehouse Provider On Sebi Radar For Market Manipulation

Xavier Rolet Has Changed His Tune On Brexit
This is Money

PLY: While it is good to see Xav on the side of progress (qv yesterday) after his embarrassingly clod-footed advocacy of the old world anti-enterprise culture prevailing in Brussels… some might like to see a spot of contrition as he executes a rather staggering U-turn, which is almost shameless even for an investment banker. I suppose his argument is that the road to Damascus is currently a touch clogged.

ICE Mulls Sale Of Interactive Data Managed Solutions Biz

ICE is planning to sell off the Managed Solutions division of Interactive Data, which the exchange acquired last year .

Opening Cross: Making A Clean Break

PLY: Another excellent, perceptive read from market data media maven Max Bowie.

Lessons From The ASX, Census & Other Aussie Tech Outages
The Australian Financial Review

But the recent ASX outage wasn’t a sign of confidence in Australia’s role as the “smart nation”…This latest tech failure shows the ASX did not have adequate testing measures in place.

Given this, questions remain over whether Australia’s financial regulator, ASIC, has the teeth it needs to regulate in the digital trading environment. Would it be appropriate if it was to regularly audit and review the ASX’s disaster recovery plan? Such an audit and review would, in my opinion, be appropriate.

PLY: Consultants seeking more audits can induce a certain cynicism on my part but it is clear the ASX is just part of a wider story of tech failure in Australia which is worrying. Is it nationally unique? Probably not but it is a dispiriting story as the analogue remain the people in political and often executive power while the world is digital. Oh and regulators may like the notion of auditing anything they can but is their expertise materially sufficient to allow them to really opine beyond the edges of the sandbox? I am not convinced. Neither is HFT:

HFTs Fear Regulator Spilling Their Biggest Secrets

PLY: Everybody understands why regulators would like to be able to peek at computer code & better understand algorithms but the idea of a single repository of all HFT is simply unworkable on every level, even if the SEC/CFTC/ESMA/whoever had the budget to afford such a luxury which they demonstrably have not.

Thomson Reuters Closes Sale Of IP & Science Business For $3.55 bln


Private Markets

NMCE Looks At M&A Option To Comply With SEBI Norms
Hindu Business Line

Junior Minister Endorses Stock Market Game
Jamaica Observer

STATE minister for Education, Youth & Information Floyd Green has hailed the efforts of the Jamaica Stock Exchange (JSE) to promote financial education.

Why Shanghai Stock Market Reportedly Bid for Pakistan Exchange

PLY: Interesting geopolitical perspective amongst other angles.

Chi-X Japan Launches New Venue – Kai-X To Deliver Japan’s First Broker-Neutral Reference Price Trading Venue

PLY: An excellent move, marking the first major launch since JC Flowers bought Chi-X Asia in January and Tony MacKay took over the running of the business.

Special Section: FTI, NSEL, India at the Crossroads

PLY: No news, no resolution.

Moscow Exchange: Migration To New Data Center Near Completion

The DataSpace1 data centre will become the focal point of data processing for the MOEX trading and clearing platforms on 7 November 2016.




LCH Spider Plans To Cross-Margin Bond Futures
FOW magazine

…to include German bond futures later this year or early in 2017.





Oslo Børs: Now You Can Trade The Shipping Index


Career Paths


The Disruptor: Alasdair Haynes, Aquis Exchange

PLY: In a parish dominated by the linear, it is always interesting to hear what Alasdair has to say.

NZX CEO To Step Down At The End Of The Year

PLY: Quite the upheaval it seems of late at NZX, recently COO Mandy Simpson also announced her departure.

SGX has hired former Credit Suisse European derivatives head Alex Lenhartaccording to FOW.

Tullett Prebon Names James Potter Europe CEO, Replaces Retiring Angus Wink

German P2P Lender Smava Raises $34 mln In Runa Capital-Led Funding Round

SMN Weekly (blog)

PLY: Total raised now just over $63 million, no valuation given.

P2P Lender Apologises Over Debt Error
The Times (subscription)

P2P lender Saving Stream has apologised after it failed to inform investors that the beneficiary of a loan on its site was in receivership.



Other Stories
ESMA Proposes Threshold For Non-Equity Consolidated Tape Rules
The Trade

Threshold for trading venues will determine which are subject to consolidated tape rules.

ESMA Consults On Consolidated Tape For Non-Equity Products
ESMA Issues Q&As On The Implementation Of The Double Volume Cap Under MiFID II


UK ‘Bitcoin Isle’ Amends Law for Digital Currency Exchanges

PLY: As you grow so you shall be regulated says Jersey. As an aside, I thought the UK “Bitcoin Isle” was the Isle of Man…

Colombia’s Referendum On FARC Deal: A Perversion Of Democracy
PanAm Post

PLY: As the author Louis Kleyn is a parishioner: a member of the Colombian Derivatives Market, and supervisor of the Guarantee Fund of Colombia’s Stock Exchange, I thought this was an interesting aside, if only the upcoming Colombian hosted WFE conference had anything like this much spark to the debate, I am sure folks would be flocking to the event.

Billionaire For Trump: ‘I wouldn’t Give 2 Cents’ For NYT’s Election Views

Interactive Brokers founder Thomas Peterffy, a Donald Trump supporter, on Monday blasted The New York Times…

PLY: And a second political story from the mouth of parishioner Thomas Peterffy. Regardless of what you think of Trump that when it comes to the New York Time, that moniker “all the news that’s fit to print” has biodegraded to sadly become little more than  “all the news that’s printed to fit…” it’s part of the mass media malaise which is blamed on digital incursion but is more a crisis of content and context (or lack of either). More politics anybody, here’s a parish-related hat trick to end the day:

EU Parliament Paper Explores Bitcoin-Powered Elections

A think tank run by the European Parliament recently released a discussion paper on the use of bitcoin and blockchain technology in elections…

PLY: The problem is that still involves democracy which goes against the very core of the project.

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