September 22 2016

elb2In Today’s Exchange Invest


Confirming previous stories, Yossi Beinart steps down as TASE CEO citing ill health while the Tel Aviv market which looks to many sickly tool. The controlling spectre of “Enquire” mode haunts the ASX post tech meltdown while Euronext repays debt and blasts the DB1 acquisition of LSE. Jignesh in jail until at least 26th September while MCX goes MOU with Mozambique, and there’s more…

Public Markets

Trading Shutdown Highlights ASX ‘Control’
The Australian


PLY: There is one key competitive problem where the prevailing monopolist goes down and thus data and other issues can arise for reference pricing but here the worry is that ASX could be perceived to have used levers at its control to shut out trading on alternative venues. This appears to leave an ugly binary, either deliberate shenanigans from the monopolist or mere incompetence, as the ASX appeared unable to grasp what was happening to its systems for hours on end last Monday.

It would seem a lack of hardware redundancy will be leading to a fair whack of, well, redundancy in the IT ranks of ASX soon. That is very unfortunate for all concerned.

NB Article above quotes Exchange Invest.


Euronext Warns About Monopoly DB1 Takeover of LSE
City A.M.


Euronext Announces Debt Repayment


Hong Kong Regulator Proposes To Ease Trade In Listed Derivatives
No Midstream Change In Market Reform
Hong Kong Standard (press release)


PLY: Position limit easing on the cards in ETD while listing rules look to maintain status quo.


MCX Inks MOU With Mozambique Commodities Exchange
Business Standard


BSE Plans To Float Two Entities For Insurance Distribution
Business Standard


PLY: A fascinating broadening of the BSE department store…


How Kandivli Boy Jignesh Shah Made It Big In Business & Fell Off: A Timeline


The long arm of law is catching up with Jignesh Shah, founder promoter of Financial Technologies India or FTIL (at present 63 Moons)…


SGX ‘Needs Option Of Dual-Class Share Listing’
The Straits Times


PLY: Altogether now… “oh no it doesn’t!”



Private Markets

Sandy Frucher: Tel Aviv Bourse Needs Quick Reform Or Will Disappear


The Tel Aviv Stock Exchange (TASE) must make significant changes to its structure, regulations and image or it will run itself out of business, Sandy Frucher noted.

PLY: Is Israel a prototype for what may happen elsewhere, e.g. in Europe where organised capital markets are being regulated out of business? QV On the day the TASE CEO resigned (see below) and NASDAQ’s Sandy Frucher made his brutal but valid assessment, there is also this headline from Bloomberg: “Israel’s OurCrowd Raises $72 Million to Boost CrowdfundingDeals.”
We need a sensible balanced stairway for capital and currently Israel has become incentivised to the private end of the market while IPOs often head straight to NASDAQ in the USA without touching the sides of what is perceived as a backwards capital market structure…


Regulator Asks NSE To Take Stock Of Possible Wrongdoing
Economic Times


PLY: SEBI concerned about preferential access in a worrying development for the NSE IPO which yesterday was touted at circa $6.7 billion.


Budget 2017: Noonan Urged To Keep Promise On Shares
Irish Times

PLY: Irish Stock Exchange maintains pressure on Minister for Finance Michael Noonan to fulfil his two-year-old pledge to eliminate stamp duty on share trading – hear! Hear!


CREST Alumni Outline The Future Of Post-Trade (subscription)


PLY: I highlighted the Crest event keynote speech by the BofE’s Hauser yesterday.


Bank Derivatives Dealing: The Big Banks Cry Wolf
Seeking Alpha


PLY: Thought provoking blog post from Kurt Dew.


Channel Islands SE Looks To Take Advantage Of Brexit
Financial News (subscription)


PLY: CISE has emerged rejuvenated after its problems in 2014.


Bitcoin to Get First-Ever Daily Auctions on Winklevoss’s Gemini


PLY: Not to be confused with ISE Gemini…



Special Section: FTI, NSEL, India at the Crossroads


FTIL up 4%, MCX up 2%, Jignesh in detention (again).


63 Moons Technologies Appeals To Shareholders Ahead Of Merger Hearing
Business Standard


PLY: It so happens that for all the flaws of NSEL and indeed bearing in mind my belief that FTIL ought to do as it once appeared to promise… and pay recompense, I still cannot support the defenestration of corporate governance through the forced merger route.


Jignesh Shah In CBI Custody Till 26 September


PLY: Technically not on NSEL charges this time but…






SIX & Digital To Develop Distributed Ledger Technology For Swiss Financial Market – Agreement To Build Prototype For Securities Lifecycle Processing Using Digital Asset Platform


PLY: Et tu brute? (in 4 blocks time, presumably…).


Why Accenture’s Plan to ‘Edit’ The Blockchain Is A Big Deal


Almax Analytics Emerges From Stealth With An Advanced Artificial Intelligence Engine – Big Data Gets Organized With A Real-Time News Analytics System For Capital Markets


PLY: Clearly they subscribe to big data headlines for their media releases too…


Tokyo Commodity Exchange (TOCOM) Goes Live On Nasdaq Trading Technology – The New System Is Now Integrated With Japan Exchange Group’s Derivative Trading (J-GATE)


NSE To Move To Web-Based System For Mutual Funds Trade From Jan 2017
Business Standard


MillenniumIT Showcases Real-Time Post Trade Technology Capability


PLY: Given how far behind Millennium was in post trade technology, this is certainly a  quantum leap. As to LCH, well… given how far behind it was in post trade technology…



Derivative Trading Rules For Commodity Bourses Tightened


PLY: Yesterday  other media seemed to suggest SEBi was loosening its hold…or at least that was how I interpreted the headline: Sebi Allows Comexes To Modify Futures Contract Specifications



BrokerTec And MTS Add Spain Index To RepoFunds Rate – New Addition Expands Successful Hedging And Price Discovery Indices


Career Paths


CEO of Tel Aviv Stock Exchange Resigning Due to Illness
Wanted: CEO For Tel Aviv Stock Exchange Fighting For Survival


PLY: It was Haaretz which broke news of the sick leave and likely resignation in June. I am sure I join with all the parish in wishing Yossi Beinart all the best. His was a difficult spell in office (there was even industrial action from exchange workers) as the TASE appears to only now be getting to grips with the idea that it must profoundly reform – a process begun by Yossi but with apparent reluctance on the part of at least some board members.

TASE needs a radical new incumbent – there are many possible candidates whether of the faith or not but government and stakeholders need to prepare for what will be a time of change, if the TASE is to avoid a further year of losses as now appears likely for the first time in 30 years.

Former Optiver exec Hans Pieterse has been proposed by the TOM board to replace founder CEO Willem Meijer  who resigned September 1st.

The state owned Mongolian SE has replaced M. Bolor, as CEO with Kh. Altaiaccording to local reports.

The ICE has expanded its board to 9 and added VC GP Thomas E. Noonan of TechOperators (an early-stage venture fund). Mr. Noonan was also appointed as a member of ICE’s Risk committee. ICE also announced that Ann Cairns is expected to join the Board of Directors of ICE Clear Europe as Chairman in January 2017 as well as joining the Board of Directors of Intercontinental Exchange soon after, replacing the retiring IPE/ICE veteran non-executive Sir Bob Reid.


Exotix Said to Lose Equity Team Following Ownership Dispute


Former CME Europe Clearer Husted Joins Lombard
FOW magazine

Tech vendor Lombard Risk Management has hired former head of clearing at CME Europe Adam Husted as its European head of new business.

Alibaba Founder Jack Ma Named UNCTAD Special Adviser On Trade
Financial Express Bangladesh



Anthony Hilton: It’s Still Early Days But Crowdfunding Is Looking Like A Real Success Story
Evening Standard


PLY: Good comment from Anthony Hilton, hopefully the regulators won’t strangle this and they will free up capital markets as opposed to regulating them to death with things like Capital Markets Union.


Crowdfunding Firms Jittery After Sebi Notice, Seek Clarity
Economic Times


Online equity crowdfunding platforms, several going through an identity crisis, are seeking clarity from SEBI following recent pronouncements.


Xiaomi To Bring Crowdfunding Platform To India
The Indian Express


Israel’s OurCrowd Raises $72 Million to Boost CrowdfundingDeals


The Jerusalem-based equity crowdfunding platform has a global network of 15,000 investors and has helped facilitate $300 million in investment…

PLY: And shows how Israel’s ‘startup nation’ badge needs to have a second level achievement of being a capital markets nation too…


Europe’s First ABS of Peer-to-Peer Consumer Loans Nears Sale

The loans in the new transaction were made by P2P Global via Zopa, the U.K.’s largest peer-to-peer lending platform.


Other Stories

UK’s Financial Conduct Authority Publishes Feedback Statement On Big Data Call For Input

OCC Comments On S&P Reaffirmation Of AA+/Stable Rating

Address Of CFTC Commissioner J. Christopher Giancarlo To The American Enterprise Institute, “21st Century Markets Need 21st Century Regulation”, September 21, 2016

Our Approach To Cyber Security In Financial Services Firms – Speech By Nausicaa Delfas, Director Of Specialist Supervision At The FCA, Delivered At The FT Cyber Security Summit

Securities Regulation In The Interconnected, Global Marketplace, SEC Chair Mary Jo White, Sept. 21, 2016, Keynote Remarks, Legal Practice Division Luncheon, International Bar Association Annual Conference

A More Effective Approach To Combatting Financial Crime – Speech By Megan Butler, Executive Director Of Supervision – Investment, Wholesale And Specialists At The FCA, Delivered At The BBA Financial Crime And Sanctions Conference

CFTC Swaps Report Update

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