Friday, January 29, 2010

News WE100129: EMCF, BATS, Spain, ELX, Eire, Mona Vale

The photo was taken just using the b/berry as an experiment more than anything. It’s from the headland overlooking the Mona Vale course. Warriewood (out of view) is around to the right (south) and the beach in shot, with the breakers which rolled us in, is Mona Vale.

Happy Aussie Day.

Lots of BATS announcements. Options approval of interest.

No surprise that DB looks at its cost base. All the RIEs will have to do this for the foreseeable future.

Great news on ELX, the CME position looks like their interest, not the customers. Couching it in risk terms is regrettable.

ASX quantifies its project risk appetite at 450K + 10% GST pa. for the pleasure of taking a trade feed and then getting to charge you a clearing fee.

So, BATS has a record day, and now Chi-X is circa 6 byn a day, the logical implication of course is new records for EMCF.

The lesser known fact is that this now puts EMCF as the number one equity CCP in Europe.

Heartfelt congratulations to all the EMCF team.

The MTFs entering Ireland does raise the issue of domestic bias. But it also highlights what we have know from 2007. The index calculators are nowhere near as proactive as they should be in looking at alternate execution destinations and including this data in index calculations. Just like the ratings agencies. It feels to me they think they can get away with it, so they do.

A couple of points on Spain. A mental reminder for me to be more transparent on dates (CNMV approval etc.).

Well, no city induced morphine highs or hangovers for me this week, just a debt headache - a drop in the ocean you say….

…and last week was the Warriewood to Mona Vala swim.

This was just a glorious swim and atmosphere. It was raining and overcast on the morning, but the water was warm and wow, the visibility was sensational. Crystal clear water and depths. Glorious.

This swim also had a bit of dimension to it. Often the break / swell is very light. This swim had surf. Not a lot of fish, but still plenty to look at and no stingy thingys. The swell was certainly active, often tossing us about, but nothing sinister. Great Swim.

Nice photos of the day here:

But this week-end is what the season is all about…The Big Swim. Palm Beach to Whale Beach.

..and as for the puppy…we had an excellent Russian name suggestion, Farkov, but it failed to pass muster.

What breed is Buddy? He’s a Goldie, a Golden Retriever.

He doesn’t retrieve anything but he has demonstrated an early ability to dig….flowerbeds (existing).

He appears to have no conscience….but this does not worry him, he’s getting on and having a very nice life…indeed.

Why can a puppy poo on the laundry floor and I can’t put my shoes up on the sofa?

So, have a dogs life of a week end (get fed and pampered, do what you want, when you want…not a worry in the world).



BATS Europe Surpasses E2 Bn Notional Traded For 1st Time - Surpasses Record Set Previous Day
BATS Europe, an innovative and technology-leading European Multilateral Trading Facility (MTF), continued its record-setting month, trading E2 billion notional value for the first time on Thursday 21st January.

BATS Receives SEC Approval For US Options Exchange

BATS Exchange received approval from the U.S. Securities and Exchange Commission to operate a US equity options platform and expects to go live on Friday, February 26th, pending industry-wide options symbology consolidation and testing.

BATS Europe takes on Nasdaq MTF with SOR

DEUTSCHE BÖRSE MULLING STAFF CUTS, OUTSOURCING - HANDELSBLATT Deutsche Börse is to cut up to 10% of its 3,300-strong workforce as it bids to lower costs in the face of strong competition, according to a report in German business daily Handelsblatt.

Full story:

CME insists it doesn't have to accept rival's trades; its stock falls
Shares of CME Group fell 6.8% after a US regulator issued a statement that could weaken the basis for the futures exchange operator's dominant market position.


BIDS Trading Breaks Volume Record in Q4 2009

NEW YORK--(BUSINESS WIRE)--BIDS Trading, the alternative trading system (ATS) designed to increase competition and liquidity in the U.S. equity block trading market, achieved an average daily volume of over 25 million shares* in Q4 2009, breaking its previous quarterly volume record of 23 million shares* per day. Since its launch in the spring of 2007, BIDS Trading has traded over 13.8 billion shares*.


BM&FBOVESPA HIRES CATHRYN LYALL TO LEAD NEW LONDON OFFICE Brazil's BM&FBovespa has hired former Icap executive Cathryn Lyall to head up its new London office, from where the exchange plans to build up a presence in Europe, the Middle East and Africa.

Full story:

GENERAL ATLANTIC MAKES $250 MILLION INVESTMENT IN MARKIT General Atlantic has taken a $250 million stake in financial data and post-trade services group Markit.

Full story:

London Stock Exchange CEO Xavier Rolet Fights Back
Rolet is fighting to retain the exchange's market share in equity trading.

**** Good background on Rolet.


Trade Acceptance Service (TAS): 10K Application, 450K + GST (10%) pa, min terms 3yrs.


EMCF volumes reach 4m trade sides Amsterdam, 22 January 2010 – European Multilateral Clearing Facility (EMCF) reached a new milestone as the number of trades cleared surpassed 4 million in a single day for the first time on Friday, 22 January 2010.



The Luck of the Irish – 27 January 2010'

bilateral settlement procedures and excluded from the application of mechanisms to guarantee the delivery. IBERCLEAR will assign the

Register Reference (RR) to the trades processed by this service.

Proposal to Modify IBERCLEAR's Regulations

On 28th September 2009, we distributed the Informative Note No. 38 to the participating entities. The Note explains the modifications that have been proposed for IBERCLEAR's Regulations, which allow settlement and registration of sales transactions of securities admitted for trading on Stock Exchanges and carried out in OTC ( Over The Counter) markets. They also allow the signing of agreements with entities which perform similar functions, CCPs, governing bodies of regulated markets,

multilateral trading systems and others. This proposal to modify the Regulations has been sent to the National Securities Market Commission (CNMV) for approval

Oxford Finance Group: The Governance Of Financial Market Infrastructure - Major New Report By Ruben Lee


Also includes a short tempt you into 596 pages of explanation.


Icap launches post-trade FX joint venture
UK-based Icap has revealed the launch of a foreign exchange post-trade service, backed by several of its largest customers, in what is the interdealer broker's latest move to diversify its product offering and capitalise on the rise in FX trading.


IOSCO Completes Global Framework To Fight Against Cross-Border Market Abuse
The International Organization of Securities Commissions (IOSCO) has announced that it has achieved its goal, set in 2005, of having its eligible membership sign onto or committed to sign the Multilateral Memorandum of Understanding concerning Consultation, Cooperation and the Exchange of Information (MMoU).

The Regulatory And Supervisory Reform In Europe: Speech By Jos Manuel Gonzlez-Pramo, Member Of The Executive Board Of The European Central Bank, Presentation Of The Report Observatorio Sobre La Reforma De Los Mercados Financieros 2009, Realizado Por La Fundacin De Estudios Financieros, Madrid, 22 January 2010

Financial chiefs warn of economy's 'morphine high'
The majority of chief executives at global financial institutions do not believe there will be a wider economic recovery for at least another two years, according to a new report published a day after the UK became the latest country to edge out of recession.


Andrew G Haldane*

Executive Director, Financial Stability, Bank of England

If UK banks had reduced dividend payouts ratios by a third between 2000 to 2007, £20 billion of extra capital would have been generated.13 Had payouts to staff been trimmed by 10%, a further £50 billion in capital would have been saved. And if banks had been restricted from paying dividends in the event of an annual loss, £15 billion would have been added to the pot. In other words, three modest changes in payout behaviour would have generated more capital than was supplied by the UK government during the crisis.

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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