Thursday, October 8, 2009

AMCF News: Up, MTF consolidation, RBA, JSCC open to PTS

School holidays here so last Tuesday I took the kids to see Up (the latest Disney Pixar offering)
I thought this was a harrowing story in parts, about how life’s dreams can pass us by as we become embroiled in the day to day demands of life.
The kids liked it, but most of all I liked my mum’s remark:
As to Pixar, experiences provide the filters we use to look at things and it seems to me that by and large it is right that the older we get older the more complexity we bring to bear. (Mum – but what Mum wouldn’t say something like that?).

So to T(urquoise). Personally, I didn’t have the LSE at the front of the bidding list but to me it does strike a tidy solution. I read the merit in this of connecting and engaging with your customers. What price can you put on that? I also think it a useful piece of consolidation that LSE can extract its own value from. It is the connectivity / network effect that brings value in my view. This also mitigates some of the “pump and then dump” speculation.
Regardless, whatever, good luck to them. Each of us needs to focus on our own business plans. It’s nice to be aware of what is around the corner, but no point in being a slave to it.

On the post trade side it certainly throws up some interest. The CC&G asset becomes interesting, more questions than answers for DTCC, and free and open access to the trade feed in terms of interoperability have yet to play out.

Who knows, what next. Maybe the Members of LIBA will sell out to FESE rather than merge with SIFMA. Lovely!

More on mixed messages: RBA following a course of Fiscal prudence by raising rates yet the politicians are still busy piling on the debt with fiscal stimulus packages.
It reminds me of the old parental weakest link. If I don’t get a bag of sweets from mum I’ll try dad (or visa versa).

Then a hop to Thains comments re leveraged product pricing. A shameful confession. But then, we have yet to develop a super computer than can tell me the weather on the way home. That said, I can look out the window and make a value judgement of whether I need an umbrella or not. (tis a question of granularity and certainty – context).

Anyway, as I mentioned, school holidays here so I’m off to teach the kids some more surf skills (I hope) and also do some ocean training. I’ll be just down from Forries.

…Oh, and my reading:$file/cp120.pdf
(CONSULTATION PAPER 120, Operators of clearing and settlement facilities)

Have a great w/end all,
….and if your Mums about, get her to make you a cuppa and a piece of toast, for some reason, it always tastes better when its handed to you.



BATS sets sights on new markets, asset classes
*** Mwwwwaaaahhhhaaaaa

BATS Europe ups price war with new taker fee


LSE outlines clearing switch to reduce trading costs

Burgundy announces CCP launch date

LCH, Euroclear bid to cut European post-trade costs


Europe's broker-owned dark pools or crossing engines will be more open to toxic flow and less able to provide price improvement if they are forced to register as multilateral trading facilities, brokers claim.
Read story

High-Frequency Trading On SEC's Agenda The SEC, which already has proposed banning flash orders, says it will look into the fairness of high-frequency ...

ASX's algo review may tighten trading rules

INSTINET TO LAUNCH PATENT-PENDING 'AGGREGATED' DARK POOL Instinet is set to launch a new US dark pool that combines multiple smaller buy and sell orders up to a specific volume threshold in an effort to attract more anonymous block trade order flow.
Full story:

JOHN THAIN: MERRILL'S STRUCTURED PRODUCTS WERE SO COMPLEX THAT NOBODY UNDERSTOOD THEM Former Merrill Lynch chief John Thain says that the structured products created by his firm were so complex that it could take up to three hours to model one traunch of a single CDO correctly when using "one of the fastest computers in the United States".
Full story:


FINANCIAL TIMES: TSE Faces Competition From Small PlatformsBy Lindsay Whipp10/5/09The Tokyo Stock Exchange will face greater competition as a marketplace for buying and selling Japanese shares from next year after the country’s main clearing house unveiled plans to support smaller alternative trading platforms.The Japan Securities Clearing Corporation said it would start providing clearing services for the country’s alternative share trading platforms from next July, a move that market participants said would help increase liquidity.

At its meeting today, the Board decided to raise the cash rate by 25 basis points to 3.25 per cent, effective 7 October 2009.

Nomura sees massive investor interest for share offering Nomura is poised to raise 433bn yen (€3.3bn) to finance its global expansion, after Japan's top brokerage on Monday priced a heavily oversubscribed offer of 800 million shares at 568 yen each, sources said. (The Wall Street Journal)

"Farewell America".
*** A remarkable commentary of unintended consequences

***surely a scam?

Scott Riley
Business Development

[Please note my new email address:]

Fortis Global Clearing
8th Floor 50 Bridge Street Sydney Australia 2000
((Off)+61 (0)2 8916 9634 È(Mob): +61 (0)418 117 627

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