Well, another fast week, (oops 2).
Usually I spend my days on email and invariably word documents.
Last week, I went back to my analyst past and spent a pretty intense couple of days on the old excel.
For those that are put off by the license fees of MS project but still want something accessible this is a great little applet:
http://www.vertex42.com/ExcelTemplates/excel-gantt-chart.html
MTFs: Some noice about Turquoise and the market maker agreements. Interestingly, the exchanges are still responding to price pressure so the MTFs continue to do their jobs. I still think we have a long way to go. Both in Europe and abroad.
Sibos: Oh woe is me.
ICAP: Pursuing post trade growth opportunities. And a link to Italy.
CDS: a nice link to IDCG and ICAP. Markit CDS data portal, Big Bang to try and start the process of commoditisation, though I don’t feel Geithner sees the full complexity of the markets…which brings me onto another government…
Short Selling: I think the Aussie government has read this all wrong…but it is what the electorate wants to hear. That attracted me to the comment: If nature abhors a vacuum, politics abhors complexity
AIG: I liked Dear AIG, I quit. I can empathise with much of this. I liked even better, the mindset of an AIG executive. For those of us that need a reminder about the insular nature of our industry and our views, this was great. (well, I enjoyed it).
These was a wide ranging interview on clearing in Financial news. I’m tempted to repeat it, but that would be out of copyright spirit.
Lastweek-end we had friends over and they slept over on Saturday, hence we christened the new barbie on Sunday. As I was sitting back, chomping on my bacon sarnie I was feeling a twinge of guilt for not being out on the water. In the end the race got some interesting coverage:
http://www.itv.com/News/Articles/Shark-encounter-in-Australia-589240355.html
Thanks Geoff, glad I missed it!
No local swims this week-end so next one is 5th April
http://www.northsteyneslsc.com.au/article.asp?nid=1250
Congratulations to Ireland on the 6 Nations. For those that remember, I picked Wales to win this year.
Fancy that. I was wrong!...again.
Have a great week-end all.
S
http://clearingandsettlement.blogspot.com
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MONDO VISIONE: BATS Europe Passes Turquoise In Market Share, Sets Numerous Volume RecordsBy Staff3/25/09It has been a milestone-filled week for the BATS Europe team, highlighted by overtaking Project Turquoise in market share for the first time today, less than five months since the launch of the BATS Europe trading platform. Wednesday’s session marks the second straight day where BATS Europe set records for European market share (2.15%), European notional value traded (€535.7 million) and CAC 40 market share (3.20%). In addition, BATS Europe hit new highs for FTSE 100 market share Wednesday (3.57%) and a new mark for the DAX 30 (3.75%) and AEX 25 (2.76%) Tuesday.
SWIFT BRINGS THE CURTAIN DOWN ON SIBOS PARTY Ending a long-standing tradition, financial messaging network Swift is pulling the plug on its iconic end-of-Sibos party as it looks to rein in costs ahead of this year's event in Hong Kong.
Full story: http://www.finextra.com/fullstory.asp?id=19793
ICAP ABANDONS EXCHANGE PROJECT AS LYALL EXITS Interdealer broker Icap is to abandon plans to launch its own derivatives exchange following a business review which has led to the departure of chief operating officer for exchange projects Cathryn Lyall.
Full story: http://www.finextra.com/fullstory.asp?id=19791
SUNGARD GMI SUPPORTS CENTRALISED CLEARING ON INTERNATIONAL DERIVATIVES CLEARINGHOUSE
http://www.finextra.com/fullpr.asp?id=26604
http://www.idcg.com/Christopher-Edmonds.htm
*** Prior to joining IDCG, Mr. Edmonds was the Chief Development Officer for ICAP Energy, LLC.
Status of fragmentation (using FTSE100 as an example) post expiry of Turquoise market making obligations.
http://fragmentation.fidessa.com/stats/index/UKX.html
Turquoise follows rivals with fresh fee cuts Turquoise, the alternative equity market backed by nine investment banks, has announced a third set of cuts to its trading fees in four months, mimicking similar moves by other European stock markets struggling to cope with lower trading volumes and increased competition.
20/03/2009 12:33:00
CME DELAYS CDS CLEARING LAUNCH AS SEARCH CONTINUES FOR INVESTORS
The Chicago Mercantile Exchange has delayed the launch of its clearing counterparty for credit default swaps as it seeks to attract investment and liquidity promises from the dealer community.
More on this story: http://www.finextra.com/fullstory.asp?id=19800
Geithner Wants Mandated Clearing and Reporting of OTC Derivatives
By Shane Kite
The U.S. government will seek to require that all standardized over-the-counter derivatives are cleared through central counterparties, Treasury Secretary Timothy Geithner told Congress today. Treasury also wants all bespoke contracts reported to trade data repositories.
Geithner, who was unveiling the administration’s regulatory package before the House Financial Services Committee, said the reform would bring settlement systems into the regulatory fold to a greater degree. The proposal also requires hedge funds and private equity and venture capital firms to register with the Securities and Exchange Commission if their assets under management exceed a yet-to-be-determined amount.
In a separate hearing with the Senate Banking Committee, SEC commissioner Mary Schapiro asked for legislation that would enable her agency to oversee trading of credit default swaps (CDS). Shapiro also appealed to Congress to boost the commission’s powers in monitoring the municipal bond market.
MARKIT LAUNCHES CDS DATA PORTAL
http://www.finextra.com/fullpr.asp?id=26608
Credit Swaps Traders Start ‘Big Bang’ to Curb Risks (Update1 ...
The so-called Big Bang protocol will create a single standard for settling trades after defaults. It also creates a committee of dealers and asset managers ...www.bloomberg.com/apps/news?pid=20601009&refer=&sid=axH2PgY2llGk - Similar pages
European Council Conclusions 19-20 MarchCouncil agreed the de Larosière report as "the" basis for action and will adopt first decisions by June 2009. Council also agreed to give priority to restoring the functioning of credit markets.
AMF report on short-selling rulesThe report notes that it appears neither justified nor appropriate to propose prohibition of all forms of short-selling. However, short-selling requires a minimum of regulatory constraint to deter behaviours that hinder orderly functioning of the market.
IOSCO consults on regulatory approach to short-selling The report proposes common principles for a more consistent regulatory regime for short-selling, including a reporting regime to give markets timely information. Short-selling should operate in a well-structured regulatory framework, IOSCO states.
Media Release:
027: Australia Fully in Line with International Direction on Short Selling
23/03/2009
http://minscl.treasurer.gov.au/DisplayDocs.aspx?doc=pressreleases/2009/027.htm&pageID=003&min=njs&Year=&DocType=
Italian bond market draws fire as Icap launches clearer Italy is facing twin threats to its control of government bond trading amid charges of anti-competitiveness from an influential industry body and the launch of a rival clearing service by interdealer broker Icap.
BNP, SocGen Seek Protections to Keep Paris Clearing in LCH Bid
By Matthew Leising
March 26 (Bloomberg) -- BNP Paribas SA and Societe Generale SA are seeking guarantees that their Paris clearing businesses will be protected before they join a group of banks considering a bid for London-based LCH.Clearnet Group, according to people familiar with the discussions. BNP and Societe Generale act as middlemen for firms that need to process debt and stock trades through LCH.Clearnet SA, the Paris-based arm of LCH.Clearnet, Europe’s largest provider of trade settlement and delivery services. BNP was the biggest European clearing custodian in 2007, as the unit’s net income surged 25 percent from 2006, while Societe Generale’s profit from clearing rose 32 percent, according to the companies’ annual reports.
Börse makes strategic Clearstream switch Deutsche Börse this morning ratified a plan to spin off the majority of one of its most lucrative units, Clearstream, in a move that could pave the way for a sale of the stake and mark the start of new acquisitions by the German exchange group.
Dear A.I.G., I Quit!
The following is a letter sent on Tuesday by Jake DeSantis, an executive vice president of the American International Group’s financial products unit, to Edward M. Liddy, the chief executive of A.I.G.
http://www.nytimes.com/2009/03/25/opinion/25desantis.html?ref=opinion
The Mindset of an AIG Executive
It's nice to hear directly from an AIG financial executive, but the mindset of his resignation letter illustrates some of the public anger,
http://www.businessweek.com/careers/managementiq/archives/2009/03/the_mindset_of.html?chan=top+news_top+news+index+-+temp_news+%2B+analysis
Daddy, tell me, what exactly is a derivative?
By James Carville
If nature abhors a vacuum, politics abhors complexity. There has been much discussion and some angst in the press lately about President Barack Obama’s supposed communication breakdown during the financial crisis. The breathless reports convey the impression that he has lost his communication skills altogether. One headline admonished: “Obama struggles as communicator.”
http://www.ft.com/cms/s/0/7f21ae14-198a-11de-9d34-0000779fd2ac.html
BATS EXCHANGE CUTS FEES
http://www.finextra.com/fullpr.asp?id=26722
Tax hypocrisyBest places for dodging tax
FOCUS GROUP: CLEARING TAKES CENTRE STAGE IN EUROPE With the onset of the credit crunch, clearing and settlement have moved from relative obscurity to take centre stage in the European financial services industry.
http://mail.efnmail.co.uk/r/53854051/MjU3MzA2OjIwNjU2/
FRAGMENTATION OR CONSOLIDATION? Natasha de Terán (Financial News) With conflicting messages from central clearing houses, clearing members and trading clients on the question of consolidation versus fragmentation, what does the market want?
http://mail.efnmail.co.uk/r/53854052/MjU3MzA2OjIwNjU2/
CENTRAL CLEARING FOR CREDIT DERIVATIVES Natasha de Terán (Financial News) A recent survey in the US found participants in the credit default swaps market wanted to shift their transactions from the bilateral, over-the-counter markets to cleared OTC markets.
http://mail.efnmail.co.uk/r/53854053/MjU3MzA2OjIwNjU2/
THE IMPACT OF LEHMAN BROTHERS’ DEFAULT ON CLEARERS Natasha de Terán (Financial News) Clearing houses have experienced some extraordinary conditions over the past year, not least of which arose after the default of Lehman Brothers, a significant counterparty in the cash equity, listed derivatives and both cleared and uncleared OTC markets. What were the most striking features of the default and how did the CCPs and wider markets deal with it?
http://mail.efnmail.co.uk/r/53854055/MjU3MzA2OjIwNjU2/
HOW VIABLE IS A CCP IN SECURITIES LENDING? Natasha de Terán (Financial News) How interesting will the creation of a central counterparty be for stock lending and would you support it? http://mail.efnmail.co.uk/r/53854056/MjU3MzA2OjIwNjU2/
THE CASE FOR OTC CLEARING Natasha de Terán (Financial News) While market users and regulators in Europe are moving towards a central clearing function for over-the-counter derivatives, some have warned against a rush to channel OTC business through central counterparties. Is over-the-counter clearing desirable, a bad idea or an absolute imperative?
http://mail.efnmail.co.uk/r/53854058/MjU3MzA2OjIwNjU2/
HAS THE CODE OF CONDUCT WORKED? Natasha de Terán (Financial News) Is the European Union’s code of conduct for clearing and settlement alive and well, or is it dead in the water? http://mail.efnmail.co.uk/r/53854059/MjU3MzA2OjIwNjU2/
IS THE BUYSIDE INTERESTED IN SELF-CLEARING? Natasha de Terán (Financial News) Could the current market volatility and risk parameters drive the buyside to do its own clearing? http://mail.efnmail.co.uk/r/53854060/MjU3MzA2OjIwNjU2/
RISK MANAGEMENT IN RISKY TIMES Natasha de Terán (Financial News) As we move into a climate where the focus is heavily on risks in financial services, will general clearing members, custodians, clearing houses and exchanges be able to keep up with the investments that they need to make in risk management?
http://mail.efnmail.co.uk/r/53854061/MjU3MzA2OjIwNjU2/
FSA at bay As the City crumbles, can Britain's financial watchdog fix the system?Full article
*** I like the conservatives idea: replace (the FSA) with one conduct-of-business and one prudential supervisor.
Derivatives position leads to Weavering Capital collapse Weavering Capital, a $639m (€467m) London hedge fund, on Thursday collapsed after the discovery that the main asset of its flagship vehicle was a $637m derivatives trade with an offshore company owned by the fund’s founder and chief executive Magnus Peterson. (Financial Times)
*** I hate it when derivatives get a bad wrap. This is just good old simple fraud.
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