September 22 2015

Burgenstock 2015 - 468x60

Burgenstock 2015 - 468x60

elb2GMEX announces data centre / POP arrangement to distribute their market platforms. London-Shanghai ‘through train’ feasibility study. ICE World Cotton preparing to launch while MOEX’s once stellar IT reputation looks a tad tarnished…and there’s more…

It’s already a busy day here in Geneva and SFOA Burgenstock doesn’t kick off until cocktails 1800 local time at the splendid President Wilson hotel. Majestic views of Lac Leman help inspire today’s pith… The SFOA renaissance continues and I look forward to Crossfire tomorrow morning leading a very strong programme of senior derivatives industry figures, led by Phupinder Gill of CME, Chitra Ramkrishna of NSE, David Peniket of ICE, Magnus Billing of NASDAQ and Christian Katz (formerly of SwX & FESE).

Public Markets

London & Shanghai Agree To Look Into Stock Market Link-Up But Time Difference May Pose Problem (subscription)
Enoch Yiu – SCMP

UK, China To Carry Out Study On London-Shanghai Stock Connection

PLY: UK Trade mission delivers plan for feasibility study for a transcontinental ‘through train’ between London and Shanghai.


China Committed To Market Liberalization, Says UK Finance Minister

UK Chancellor: ‘Let’s Create A Golden Decade For The UK-China Relationship’

Read in Premium China Capital Markets Transformation Brief – Main File.


TMX Launches New TSX Alpha Exchange

TMX successfully launched a new trading model on TSX Alpha Exchange, designed to improve execution quality for natural investors while reducing dealer costs. Alpha’s new features, which received Ontario Securities Commission approval in April, include a minimum size threshold for liquidity-providing orders, competitive pricing for active flow and a short order processing delay (speed bump).

PLY: The Alpha speed bump comes with some free passes to get ahead of the crowd, promoted as being in the best interest of market liquidity, sparking a dispute ‘up north’ between Aequitas and TMX Alpha (or I suppose one might argue Alpha and its de facto progeny). Is this the IEX speed bump (also effectively created in Canada) remodelled or pure chicanery? And will the porous Alpha speed bump make a better market? At least soon we will have some evidence to compare.


ESMA Updates List Of Authorised CCPs – CME Clearing Europe Extends Services

PLY: Can now clear STIRs and Deliverable Swaps Futures (DSFs).

CFTC Seeking Public Comment On A Petition By Japan Securities Clearing Corporation For Exemption From DCO Registration

Private Markets

NSE Will Soon Be Listed; Or Perhaps Not
Mobis Philipose – Livemint

One of the reasons finding buyers for National SE’s shares had proven difficult was the lack of visibility about the exchange’s listing.

PLY: Interesting analysis from the excellent Mobis Philipose. NSE has initiated the listing process, as reported yesterday, just ahead of Chitra Ramkrishna’s arrival in Geneva for my Crossfire panel tomorrow am. Interesting times for NSE and hopefully Indian markets can make the great leap forward of broadly welcoming free market ownership alongside free market practice – in the latter, NSE’s execution has been world class since its creation 20 years ago.


MMTC To Sell 10% Stake In ICEX

MMTC on Monday said it will sell 10% stake in the commodity bourse Indian Commodity Exchange (ICEX) equally among two bidders, who participated in the tender. MMTC has been looking for investors to sell its 26% stake in ICEX, which wound up its operations towards the end of 2013.

Yesterday we reported that Akhil Gupta, Vice Chairman at Bharti Enterprises, is in talks to buy 5% stake in ICEX from MMTC.

Bombay High Court Stays Order Imposing Rs 50 lakh Cost On NSE
The Economic Times

The Bombay High Court stayed for two weeks its single bench order imposing a cost of Rs 50 lakhs (USD 75k) on National SE (NSE) in a defamation case filed by the bourse against an online news portal.

FAO: Yesterday we reported that NSE filed an appeal in high court.


Bohai Commodity Exchange To Open Trade Platform For Silk Road Countries
Sputnik News

China’s Bohai Commodity Exchange (BOCE) is expected to launch a trade platform enabling streamlined commerce within the Silk Road Economic Belt (SREB) countries.

PLY: Meanwhile a “New Silk Road” is very much in existence, albeit with a diesel-electric horse and an iron road…one train per week at least goes from Lodz in Poland direct to China for instance with talk of a dedicated rail line upgrading.


Circle Gets First ‘BitLicense,’ Releases CirclePay, New Service
Paul Vigna – Wall Street Journal

New York Department of Financial Services issued first “BitLicense” to Circle Internet Financial Ltd., a firm founded two years ago by Jeremy Allaire and backed by Goldman Sachs.


Texas Man Admits To Bitcoin Ponzi Scheme (subscription)
Maria Armental – Wall Street Journal

A Texas man admitted Monday to running a bitcoin Ponzi scheme, which at one time controlled about 7% of digital currency in circulation, in what authorities described as the first such federal criminal securities fraud case. Trendon T. Shavers, (online pseudonym “pirateat40”) pleaded guilty Monday in Manhattan federal court to a charge of securities fraud. Under the plea agreement, a second charge of wire fraud would be dropped.

Special Section: FTI, NSEL, India at the Crossroads

PLY: MCX flat, 63 Moons (FTIL) down 2%


Digital Realty To Enable Emerging Markets Trading Hubs Across Europe, US, & Asia With GMEX Technologies

PLY: Interesting move from the good folks of GMEX, delivering IT infrastructure across multiple regions / POPs & data centres.

MOEX – Timeline & Causes Of Monday Outage On The Derivatives Market

On 21 September, during the routine morning loading a software error occurred when the Derivatives Market trading system core read the system configuration. By 10:25 a.m. Moscow times, the Exchange had determined that the system core must be reloaded to correct the problem, and the decision was taken to halt trading….All market participants’ systems were ready to operate by 12:40 p.m., and trading resumed at that time.

FAO: Another in a series of recent glitches – see here,  here & here.


BATS Targets November To Move Hotspot’s US Matching Engine To NY5
Victor Golovtchenko – Finance Magnates

After announcing a successful launch of its London matching engine, the company is focusing on improving its U.S. infrastructure.


ICE Futures U.S. To Introduce World Cotton Contract On November 2

The World Cotton contract will price delivery of multiple origins and allow delivery in multiple locations around the world. The new contract will trade alongside ICE’s benchmark Cotton No. 2 contract.

PLY: Hooray! ICE have passed most every regulatory issue and now the launch can begin for global cotton. ICEO Europe supremo David Peniket is on my Burgenstock Crossfire panel tomorrow.


The Spanish Stock Market Admits First Multi Products On Currencies

Dubai Mercantile Exchange To Enhance Spot Commodities Trading

DME launches “DME Auctions” – a new platform to provide a transparent spot commodity auction system for the first time in the Middle East.


CME & China Securities Index Sign Agreement To Develop Commodity Indexes

FAO: Earlier this month CME teamed up with RIM Intelligence to develop and clear a Japanese LNG contract later this year.

PLY: And I am delighted that CME CEO Phupinder Gill will join my Crossfire panel in Burgenstock tomorrow too.

KRX Launches Chinese Yuan Futures & Dividend Index Futures On October 5, 2015

Career Paths

FCA and Payment Systems Regulator (PSR) Boards have appointed new members to four decision-making committees: FCA’s Regulatory Decisions Committee (RDC) & Competition Decisions Committee and the PSR’s Enforcement Decisions Committee (EDC) & Competition Decisions Committee.

In future changes, Andrew Long and David Ashton, two of the longest serving members of the RDC will leave the committee when they have completed their respective terms of office.  Andrew Long was Chairman (formerly Acting Chairman) of the RDC between 2012-2014. David Ashton has been an Acting Deputy Chairman since January 2015.

The new appointments:

Tim Parkes will become Chairman of RDC & EDC in January 2016.

Elizabeth France has been appointed as a Deputy Chairman of RDC & EDC.

John Hull will become a Deputy Chairman of RDC in January 2016.

Committee Members

Kevin Brown – member of RDC & EDC.

Chris Cummings – member of RDC & EDC.

Jonathan Haskel – member of EDC and FCA and PSR CDCs.

Stuart McIntosh – member of EDC and FCA and PSR CDCs.

Professor Robin Mason – member of EDC and FCA and PSR CDCs.

Malcolm Nicholson – member of EDC and FCA and PSR CDCs.

Caroline Ramsay – member of the RDC & EDC.

Christian Kronseder was appointed CEO of Indexium, the index calculation entity owned by DB1.


Saxo Bank Founder & Co-CEO Steps Down After Two Decades (subscription)
James Rundle – Financial News

Lars Seier Christensen is to step down as Co-CEO of Saxo Bank at the end of 2015, after two decades in the role at the Danish bank he co-founded in 1992.


ESMA Launches Open Call For Candidates For Its Corporate Finance Consultative Working Group

Financial Calendar

This week

22.09 – LSEG 10.8 pence interim dividend payment

22.09 – CFTC Agricultural Advisory Committee

23.09 – SEC Advisory Committee on Small and Emerging Companies – agenda here.

25.09 – Nasdaq $0.25 quarterly dividend payment

New announcement

SGX Q1 Results FY2016 – 21 October 2015

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

Other stories

SIFMA Statement On SEC Chair Mary Jo White’s Support For A T+2 Settlement Cycle

PLY: Time for a great leap forward – go T+0 and let’s junk all that ghastly legacy stuff designed for the punch card era…


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