September 25 2014

elb2Perzo messaging app likely to be bought by Wall Street syndicate leads the day with a multitude of interesting little nuggets to be found below, happy scrolling:

Public Markets

Goldman Sachs-Led Group Near Deal To Buy Messaging Startup Perzo (subscription)
Justin Baer – Wall Street Journal

A buyout of messaging startup Perzo could be announced as soon as next week with 14 banks said to be working on a Wall Street alternative to Bloomberg messaging.

Previous discussion on the potential deal here while TMR are still trying to get large scale traction in the sector:

Thomson Reuters & Markit Expand Communications Connectivity In Financial Markets

Thomson Reuters and Markit announced that the directory for the open messaging network powered by Markit’s Collaboration Services has been fully integrated with Eikon Messenger, extending the reach of the industry’s first vetted, cross-network directory. Financial market professionals from across the industry can now securely find contacts from a growing address book of 250,000 individuals, work more efficiently and create new business opportunities through improved collaboration.

FAO: In the bigger picture of the messaging genre, don’t forget:

ICE agreed to to buy SuperDerivatives – reported here

Wickr, a cyber security start-up, is in talks with banks and major financial services companies including Markit to create an alternative to Bloomberg instant messaging; said it has raised $30 mln from investors including CME to help develop messaging technology – reported here and here.

EC Considers Six-Month Pause For CME’s ‘Doomsday Clock’ (subscription)
Tom Osborn & Lukas Becker – Risk

The European Commission is considering giving its markets watchdog a further six months to assess whether clearing house rules in foreign jurisdictions match up to those in the European Union, postponing a potential capital hit for banks that use non-approved CCPs.

LCH & CME Have Enough Capital, Says ISDA’s O’Connor (subscription)
Joe Rennison – Risk

LCH.Clearnet and CME have enough of their own capital to align their interests with those of their members, according to Stephen O’Connor, chairman of ISDA. Banks have been campaigning in recent months for CCPs to put more of their own money at risk.

PLY: Well that’s a good point to ponder at the water cooler today…

BVB Seeks Change To Lure Investors
Luiza Ilie – Reuters

Bucharest SE (BVB) has cut trading fees and started easing tight regulations that had stifled foreign investors’ access to the market, but more is needed for the country to gain emerging market status, its CEO said on Wednesday.

Ontario Securities Commission Designates Three Entities As Trade Repositories

The Ontario Securities Commission (OSC) published three orders pursuant to subsection 21.2.2(1) of the Securities Act (Ontario), designating CME, DTCC Data Repository and Ice Trade Vault as trade repositories in Ontario.

EI reported yesterday that CME, DTCC Data Repository and ICE Trade Vault were recognized as trade repositories in Quebec.

Clearstream Further Improves Collateral Management Efficiency In Line With Eurosystem Changes
Deutsche Borse

From 29 September onwards triparty collateral services can be used for cross-border pledges to national central banks in the Eurosystem.

HFT: Focus Moves From Speed To Safety (subscription)
Nicole Bullock & Philip Stafford – Financial Times

HKEx – Update On Legal Proceedings

Private Markets

SC Stays CCI Penalty On NSE; Issues Notice

In an interim relief for the National SE (NSE), the Supreme Court has stayed the levy of Rs 55 crore (USD 9 mln) penalty, which had been levied by the competition watchdog CCI, for alleged abuse of dominant position.

Bitcoin Exchange Mt. Gox Could Face Ontario Class Action Suit

The Ontario Superior Court has partially certified a class action lawsuit on behalf of everyone in Canada who lost Bitcoins and other currency in the collapse of the Mt. Gox Bitcoin exchange.

Special Section: FTI, NSEL, India at the Crossroads

PLY: FTIL down 8% as the exit from exchanges hits valuation while MCX is off 2%.

Commodities Crash After MCX Founder’s Downfall
Saritha Rai – Forbes

In 2007 Jignesh Shah, founder of MCX, India’s largest commodities market, realized his long-held dream of becoming a billionaire..


TOCOM Signed Agreement For Trading System Usage With OSE

PLY: Readers may recall the trenchant denial of TOCOM September 16th.

ISDA & Markit Offer Counterparty Classification Tool To Assist Compliance With Canadian Derivatives Trade Reporting Rules

ISDA and Markit announced the launch of the ISDA Canadian Representation Letter on ISDA Amend, a joint electronic solution that streamlines aspects of compliance with Dodd-Frank, Emir and other OTC derivatives regulatory requirements.


CME Targeting Higher Brent Crude Market Share
Florence Tan & Jessica Jaganathan – Reuters

CME is targeting raising its market share in Brent by at least a third from a current 12-15% on the back of an aggressive pricing strategy.

CME Says No Current Plans To Introduce VSR In Corn Futures
Christine Stebbins – Reuters

CME said on Wednesday it had no immediate plans to introduce its controversial variable storage rate (VSR) scheme in its CBOT corn futures.

CFTC Swaps Report Update

CFTC’s Weekly Swaps Report has been updated, and is now available.

Osaka Exchange: Revisions To Selection Criteria, Etc. For Security Options Contracts In Connection With Simplification Of ETF Consolidation Procedures

Dalian Commodity Exchange Project Of Corn Starch Futures Approved – DCE Will Further Improve The Delivery System And Refine The Corn Futures

KCG Hotspot Introduces Hotspot QT, A Non-Displayed Crossing Venue For Spot FX – FX Liquidity Pool Allows Counterparties To Trade Larger Orders With Minimal Market Impact

KCG announced HotSpot QT, a pure non-displayed crossing venue created by KCG HotSpot to help banks and institutions trade larger spot FX orders with minimal information leakage and market impact.

Career Paths

MCX Appoints Parveen Kumar Singhal As Joint MD
Ashish Rukhaiyar – Livemint

Shareholders of MCX have approved the appointment of Parveen Kumar Singhal as its joint MD for a period of three years.

As anticipated, Otto Naegeli, has retired as Chairman of SFOA after rescuing the organisation from the doldrums. His replacement is Dan Day-Robinson who joined the board in July. Longstanding SFOA CEO Paul-Andre Jacot is understood to have also retired.

PLY: Good luck to new Chairman Day-Robinson and plaudits to Otto Naegeli who rescued SFOA from the abyss and has also made the wise decision to stand down as Chairman after a single term.

Financial Calendar

This week

CME $0.47 quarterly dividend payment
LSE rights issue – Final day for acceptances and the rump placing
NASDAQ OMX $0.15 quarterly dividend payment

New announcement

SGX Q1 FY2015 results – 21 October 2014

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

Share Notes

CBOE CEO Edward T. Tilly sold 6,250 shares Monday, September 22nd at an average price of $54.85 (bargain $342,812.50). He now owns 123,078 shares.

Analyst Notes

BMO Capital Markets Assumed Coverage On TMX – “Market Perform” Rating

CME Faces Stiff Competition, Growth Likely To Suffer
Zacks Equity Research

CME’s modest capital position and diverse derivative-product line are being adversely affected by intense competition…

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

All Analysts, Banks and Brokers are welcome to contribute to this section.

Other stories

Keynote Address Of CFTC Commissioner J. Christopher Giancarlo At Burgenstock Conference – The Looming Cross-Atlantic Derivatives Trade War: “A Return To Smoot-Hawley”

ESMA Publishes Responses Received To Second Consultation Paper On Clearing Obligation

The public responses to the Consultation Paper on Clearing Obligation No2 on CDS have been published.

FIA Global CCP Rulebook Review Will Provide Comprehensive Guide To Clearinghouse Rules

FIA Global, in cooperation with the law firms Linklaters and Milbank, Tweed, Hadley & McCloy, announced a new guide to the rules of CCPs. The FIA Global CCP Rulebook Review is a subscription service that will provide a standardized, comprehensive overview and analysis of the rules and procedures governing certain CCPs, as well as timely updates on changes to the rules and regulatory framework. It will highlight the issues most relevant to clearing members and end-users as they evaluate evolving regulatory obligations relating to CCPs on a real-time basis.

PLY: An interesting and worthwhile addition to the CCP world methinks.

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