October 6 2016

elb2 Events

In Malta ahead of discussing fintech et al a panel at the EY Annual Attractiveness Conference on FDI alongside amongst others Malta SE Chairman Joe Portelli. Elsewhere don’t forget about Burgenstock (see banner on left) and likewise the Stuttgart SE 10th Anniversary MIFID Conference…
In BigWorld
Meanwhile in Bigworld, Three British born professors have won the Nobel prize for physics.  That they could relate their fabulously complex experiments on the cusp of material knowledge in simple terms relating to doughnuts, is even better: a triumph for great scientific minds displaying a welcome reductionist ability for explanation. Their brilliance rather contrasts with a cabal of financial consultants (especially in Blockchain)  whose ‘oh it’s very complex’ mantra rather defies delivery of a distributed ledger of knowledge.



Public Markets

EU’s Clearinghouse Plan: The New Too-Big-to-Fail
EU Sets Out New Rules For Handling Clearing House Failures
Reuters UK

The excellent Huw Jones notes in the Reuters story: “Regulators should intervene before the point of failure is reached or when financial stability is threatened, the draft law says.”

PLY: Well that kills any cross border margining dreams off entirely then and indeed raises the other question (which I have long been pondering): With the EU now realising that the too big to fail challenge is in the CCP arena (not that anybody is taking their eye off Deutsche Bank admittedly), then why is the EU going to say “oh we just love the idea of a ‘too big to fail’ monopoly concentration of CCP activity, even if it is across multiple EU jurisdictions?

Remember as I will not tire of mentioning, ‘national’ EU champions are okay in widgets as their demise ‘only’ causes relatively localised economic despair. If a big CCP goes down, we’re all going to be in the Alps knitting out own sweaters and trading beans as currency.

QV Homer Simpson and the CCP Buffet – now a classic in the Exchange Invest Premium canon…and that was long before anybody was so foolish as to risk EU financial stability with a merger of equal desperation.

CBOE Acquisition Of Bats Should Be A Home Run

PLY: CBOE BATS remains a great deal. By the by, driven by the headline metaphor, there was a fun story by the by in the Wall Street Journal yesterday about the Swiss baseball league – which nearly garnered a “Bigworld” mention.

IPO Fest Puts Copenhagen In Big League As Offshore Cash Flows In

PLY: NASDAQ’s Noridc enclave has been remarkable in its IPO erformance.

ICAP’s Future Reflects Derivatives Market In Transition
Financial Times

PLY: Things can only get better – when that creature more elusive than Pikachu re-emerges from the swamps of QE: “YieldCurveChan” – then it’s a stellar outlook for ICAP and the horde of suitors who are doubtless already considering their bids and just when premature becomes inspiredly ahead of the pack when the ball comes loose and the ruck piles in on the NEx opportunity.

Brokers, Pro-Business Group Step Up Opposition To Proposed Listing Reform
South China Morning Post

Jointly launched by the Securities and Futures Commission and HKEX in mid-June, the consultation will end on November 18. 

PLY: I appreciate the challenge of headline writers and this is fine but it does raise the delicious irony that there are bankers and there are pro-business groups.

JSE CEO Newton-King: South Africa Investment Case Strong

Nicky Newton-King, Johannesburg Stock Exchange chief executive officer, discusses South Africa’s investment climate.

JSE Fails In Urgent Action To Stifle New Rival ZAR X

THE JSE has lost its urgent application to have rival ZAR X’s new stock exchange licence suspended.

JSE Says It’s Time To Talk

CAPE TOWN – The JSE has suggested that it may be time for it and other industry players to sit down and discuss the future structure of capital markets.

PLY: To be fair to JSE, they failed with their protectionist aproach so now they are embracing competition and that is the right way to come out – it would have been better to do so at first but to change direction and promote progress for South African markets in a pluralist fashion will be better for all parties and especially ZA as a whole.


Private Markets

Misys Plans $635 Million LSE IPO

Misys, is owned by Vista Equity Partners.

Selling Stake In Stock Exchange: Foreign, Local Investors Kick-Start Evaluation Process Of PSX
The Express Tribune

New KRX Chief Vows To Expedite Conversion Of KRX Into Holding Company

PLY: One emerging threat to KRS is in the likes of Eliott Capital’s thrust to break up Samsung and see a division listed on NASDAQ…

BSE To Use International Exchange For Equity Derivatives Push
Business Standard

PLY: Stamp and other tax arbitrage envisaged for new market to gain an advantage from the BIST…

BSEC To Showcase Stock Market Reforms At Digital World Fair
Financial Express Bangladesh

… through a joint effort with the Dhaka Stock Exchange (DSE), Chittagong StockExchange (CSE) and Central Depository Bangladesh Limited (CDBL).

DMCC Creates Industry Platform For Dispute Redress And Creating Funding Access

Street Forrest Thanks Support Base For National Award
Jamaica Gleaner

Interview Marlene Street Forrest, general manager of the Jamaica Stock Exchange

Special Section: FTI, NSEL, India at the Crossroads

NSEL Case: Motilal Oswal, Anand Rathi Among 5 Top Brokerages Under Sebi Lens
Economic Times

According to an earlier media report, the Sebi audit of the 2013 payments crisis at the NSEL revealed that several brokerages mis-sold NSEL products



Open Gamma raises $13.3 million
Business Insider UK

Bats Announces Successful Migration Of BZX Options Exchange To Next-Generation Matching Engine – Both Bats Options Markets – BZX Options And EDGX Options – Now Operating On Latest Proprietary Technology

ICE Data Services Launches Best Execution For Fixed Income In EMEA

Sydney Stock Exchange Completes Blockchain Prototype




NZX Spending $5.5m To Beef Up Electricity Trading Market
Radio New Zealand

PLY: And congratulatons on 20 years of Kiwi electricity trading too…

Eris And R.J. O’brien Institutional Brokerage Group Release Hedge Accounting Treatment Paper – Case Study Illustrates ERIS Swap Futures As An Effective Hedging Instrument


Career Paths

Managing Director Jobs: Eris Exchange
Other Stories
HKEx chief latest target of burglars
Hong Kong Standard (press release)

CFTC Commissioner J. Christopher Giancarlo Releases Latest Podcast: 21st Century Markets Need 21st Century Regulation, October 5, 2016

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