September 16 2015


Frantic day – machine learning workshop at the Warsaw SE this afternoon in association with the Polish Academy of Science as we lead into tomorrow’s big data future of finance symposium: Young Markets!

Interesting day, happy scrolling:

Public Markets

NZX H1 2015 Results

vs H1 2014: revenues $34.4 mln (USD 21.9 mln), up 10.4%, EBITDAF $11.7 mln (USD 7.4 mln), down 3.6%, net profit after tax $18 mln (USD 11.46 mln), up 157.9%

LME Plans To Introduce Position Limits

…initially on its new aluminium premium contract.

Euronext EGM

PLY: To officially appoint new CEO Stéphane Boujnah.

SGX Sets Up Independent Groups To Tackle Listings Woes

The committees, comprising senior bankers, lawyers & corporate CEOs, is the most significant strategic announcement made by SGX since Loh Boon Chye became CEO in July.

Insiders Beat Market Before Event Disclosure: Study (subscription)
Liz Hoffman – Wall Street Journal

Corporate executives and board members regularly make market-beating returns from buying and selling their companies’ stock in the days before disclosing a significant event, according to a study that says it has found a link between insider knowledge and investment profits.

Buyside Body Wants Year’s Delay For Mifid II (subscription)
Tim Cave – Financial News

UK asset manager body has called for changes to the EU’s trading rulebook to be pushed back by a year – one of the strongest indications yet that the industry thinks Mifid II will not be fit for purpose at its January 2017 start date.

PLY: Correct analysis, unsurprising too.

EquiLend & Eurex Clearing To Cooperate In Securities Lending
Deutsche Borse

EEX Opens New Office In Oslo

The Unraveling of Tom Hayes – Part Three – THE U-TURN (subscription)
David Enrich – Wall Street Journal

See also: Part One and Two.

Rules For ‘Dark Pool’ Trading Need Strengthening
Sarah N. Lynch – Reuters

Asset Managers Team Up to Develop Standards for Dark Pools
Yuka Hayashi – Wall Street Journal

FAO: Yesterday Credit Suisse said it will pay more than $80 million to settle allegations that it didn’t fully disclose to its clients how it operated its dark pool, while last month ITG paid $20 mln to settle “secret trading desk” claims with SEC.

Private Markets

Central Asian Stock Exchange To Launch In Partnership With GMEX – First Securities & Derivatives Exchange In Tajikistan

PLY: Well done GMEX and a warm welcome to the Tajik bourse!

At NSE, It’s All About Speed & Tech Now
Anto T Joseph – dna India

National SE, which ushered in an equity revolution in the country, is at a crossroads as it faces renewed competition from BSE and challenge to channelise savings into equity markets.

BSE To Use PAN Details Of Investors For Self-Trade Prevention Checks
Business Today

Bombay SE (BSE) will now conduct self-trade prevention checks based on permanent account numbers (PANs) of investors trading on its equity derivative platform.

Arab IPO Summit: QSE Boss Voices Kuwait Delisting Concerns
Rahul Odedra – Businessweek

Qatar SE (QSE) CEO Rashed Al Mansouri said delistings from Kuwait SE could put other companies off going public.

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX and 63 Moons (FTIL) flat – no news.


Symphony Launches Wall Street Network (subscription)
Ben McLannahan – Financial Times

Symphony’s Disruptive Message For Traders (subscription)
Matthew Garrahan, Ben McLannahan & Philip Stafford – Financial Times

Symphony announced tie-ups with McGraw Hill Financial & Dow Jones, and Selerity, which focuses on mining market-moving information from social media. Yesterday the group reached a data deal with NY State Dep. of Financial Services.

Banks Back Blockchain Project To Test Overhauling Finance
Matthew Leising – Bloomberg

Some of the world’s biggest banks, including JPMorgan and Barclays, are exploring the use of bitcoin’s underlying technology to overhaul financial markets, joining forces with R3, a startup run by Dave Rutter, former CEO of ICAP’s electronic-broking unit, to develop standards and protocols for deploying blockchain to speed up the execution and settlement of trades in markets such as syndicated loans and repurchase agreements. (statement here).

Gov’t Funded Blockchain Lab To Open In The UK
Erin Lace – Cointelegraph

A Blockchain lab is scheduled to launch in the UK next month as a result of Innovate Finance teaming up with Hartree Centre to explore the opportunities offered by blockchain technology.

PLY: Quite why free enterprise needs a government lab escapes me…


CFTC Announces Proposal To Amend Definition Of “Material Terms” For Purposes Of Swap Portfolio Reconciliation

Statement Of CFTC Chairman Timothy Massad On Said Proposal

Statement Of CFTC Commissioner J. Christopher Giancarlo On Said Proposal

Finishing The Work Of Regulating Security-Based Derivatives, SEC Commissioner Luis A. Aguilar, Sept. 15, 2015

China Takes Aim At Automated Trading In Commodities Futures
Ruby Lian & Polly Yam – Reuters

China’s top commodities exchanges – Dalian Commodity Exchange (DCE), Shanghai Futures Exchange (SHFE) and Zhengzhou Commodity Exchange (ZCE) – were asked recently by China’s exchange regulator to draft rules designed to “regulate the behaviour of program trading” in futures markets, according to people familiar with the matter.

DGCX In Talks With Producers To Launch Tea Futures
The Economic Times

DGCX is in talks with Indian tea producers as well as those in countries like Kenya and Sri Lanka to work out the modalities of tea futures.

SIX Swiss Exchange ETFs: 15 Years Of Growth


Frankfurt Launch Of CSI 300 Index Futures Suspended (subscription)
Xiao Wang – Risk

The introduction of CNH-denominated equity derivatives on the co-established platform by Shanghai SE (SSE), China Financial Futures Exchange (CFFEX) and DB1 will be suspended due to the recent Chinese stock market volatility.

PLY: Also unsurprising given China’s recent control issues.

Islamic Index Launches On BHB

Career Paths

SGX has set up 3independent Listings Committees to strengthen the listing policy-making and review process.

Gautam Banerjee will chair the Listings Advisory Committee (LAC) (15 members) while Eric Ang and Francis Xavier, Senior Counsel (SC) will chair the Listings Disciplinary Committee (LDC) and the Listings Appeals Committee (LApC) respectively. Their appointments were made in consultation with the Monetary Authority of Singapore (MAS).

Full list of members of the LAC, SGX Disciplinary Committee & Appeals Committee – HERE.

Nairobi Securities Exchange appointed six new members to its senior management team in line with its 2014 – 2019 strategic plan and new organization structure.

The newly appointed team includes:

Mr. Andrew Wachira; Business Development & Commercial Director

Mr. Caleb Musau; Operations & Technology Director

Mr. Tom Kimaru; Regulatory Affairs Director

Ms. Jane Kiarie; Finance and Administration Director

Mr. Terrence Adembesa; Derivatives Market Director

Mrs. Lucy Kamar; Head of Human Capital.

Financial Calendar

16.09 – Record date ICE $0.75 Q3 2015 dividend

16.09 – NZX 3.0 cents interim dividend payment

18.09 – CBOE $0.23 quarterly cash dividend payment

New announcements

CFTC Agricultural Advisory Committee to Meet on September 22, 2015 – press release here.

BVB EGM – 28/29.10.2015

Euronext EGM – Tuesday 27 October 2015 – announcement here.

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

Share Notes

Interactive Brokers President Milan Galik sold 12,808 shares Friday, September 11th at $38.12 (bargain $488,240.96).

Analyst Notes

RBC Capital Markets Reiterates “Outperform” Rating on LSE – GBX 2900 Target Price

A full table of current analysis can be found on our Analyst Ratings page which is updated daily.


Crosslend Launches New P2P Lending Marketplace
P2P Banking

Unsecured loans to consumers for borrowers and investors in Germany and Spain as well as investors in the UK, Crosslend aims for further European expansion and creating a unified European marketplace.

Zopa’s New CEO On Expansion Of P2P & A Possible IPO

Other stories

China Faces Parlous Path Toward Yuan & Capital Liberalization
Eduard Gismatullin – Bloomberg

China’s Problem Isn’t Its Markets (subscription)
Andrew Browne – Wall Street Journal

Chief Of Biggest Chinese Broker Swept Up In Stock-Rout Probe
Kyoungwha Kim & Alfred Liu – Bloomberg

Read our Premium China Liberalises and China Capital Markets Transformation Brief – Main File.

Russian National Admits Role In Largest Known Data Breach Conspiracy Ever Prosecuted – Hackers Targeted Major Payment Processors, Retailers & Financial Institutions Around The World

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