Tuesday, February 9, 2010

News: WE100205: Dave, Chi-X, LSE, WFE, ECNs, neighbours.

'Dave the Banker' keeps his job


Rightly so too. “Accidents happen” and is opening an email a sin?

Chi-X: some amazing Jan market shares. Congratulations to Chi-X. Check out Equity Market Share Reporter. Couples nicely with Chi-X as largest dark pool.

LSE: Fast to…Millennium….and more EMCF rumours.

NYSE correctly point out the folly of a Tobin tax, yet the WFE doesn’t even include this on their short list. That looks like an omission to me.

Multiple platforms and market models continue to take hold in the US.

PIGS: Europe had its own bad day as renewed fears about the PIGS - Portugal, Ireland, Greece, Spain - sent the benchmark Dow Jones Stoxx 600 Index down 2.7 per cent. A case of swine flu perhaps?

Gotta dash.

Have a great week-end all.

(Rain forecast here…and 7 reasons below from Ocean Swims on why to have a w/end off.)


Well, the Big Swim. What a fantastic swim this was. Lovely day for it and enough surf so you could catch a wave in. One lady I spoke to after the race had spotted some turtles. Sometimes I think there is such a focus of competing on time during these swims that you “lose sight” of some of the beauty of the event. I’d almost like a half way stop so you can just bob up and down like a cork for a while and watch the life of the ocean pass by. The Whale Beach headland churns the water like a “washing machine”. Although it looks crafty to cut across the headland I stay wide and in the deep water – less currents and chop from the intersecting waves.

Some great snaps of the day here:


Results here:


(and at 50.05 mins I managed to shave a little bit off last years 54:23).

[This weeks image, from a b/berry overlooking the finish line]

What does this mean?

Hawks Nest swim: Organisers have cancelled this swim in the interests of swimmer safety, due to ""increased marine activity along Bennetts Beach". Entries received will be refunded.

…nice…”increased marine activity”….draw your own conclusions but ambiguity does make you think the worst.

…and great news on Buddy our Golden Retriever puppy. He’s excellent at obedience training.

Not even with us for 2 weeks and already he has the wife and kids schooled in how he likes to be treated. A simple nod of the head is all it takes to get people running around “fetching” like crazy. Ahhh, I have much to learn from Buddy.


A powerful tool to conceptualise the problems of tomorrow today.


The Financial Services Club is pleased to announce that we have recently agreed a partnership with Thomson Reuters Equity Market Share Reporter (EMSR) to provide a monthly MiFID MTF Monitor. Our aim is to show how the pan-European investment markets are changing as a result of the MiFID and the entry of the new MTFs


*** some pretty powerful graphics here.

LSE TO MIGRATE CASH MARKETS TO MILLENNIUM IN SEPTEMBER The London Stock Exchange is planning to migrate the UK cash market to its new Millennium IT trading platform in September 2010.

Full story: http://www.finextra.com/news/fullstory.aspx?newsitemid=21031

Dark pool duo enjoy strong trading volumes
Two fledgling dark pools have revealed strong trading volumes for January, as they seek to increase their transparency in the face of increased scrutiny by regulators.

** Chi-X Europe remains Europes largest dark equities venue

Duncan Niederauer: Beware of the Taxman
The proposals out of Washington to tax securities transactions will do much harm, warns Duncan Niederauer, CEO of NYSE Euronext. "The negative implications of a transaction tax would ripple throughout the economy, harming average investors and the very companies being counted on to create jobs."

World Federation of Exchanges (WFE)Announces Priorities for 2010

Madrid (February 1, 2010) – The officers and members of the Board of Directors of the World Federation of Exchanges (WFE) today announced priorities for the year in which WFE celebrates its 50th anniversary. The WFE brings the world’s regulated exchanges together in order to improve the quality of markets.


*** Basically, the 3 priorities as I read them: 1) regulate OTC markets (sensible vested interest, more exchange fees), 2) intermarket mechanisms (sensible vested interest, rhetoric where required, reduce frictional costs of trade should increase exchange fees), 3) fixed income (sensible vested interest, how can we capture more exchange fees from other asset classes? We have equities and derivs, what about FI?).

*** But what about the stupidity of a Tobin Tax? Working against that would not only be in the exchanges self interest, but the industry as a whole. A collective service to make markets better. Is market structure reform on the WFE agenda? Nah, not even a GFC and daily policy announcements can get it over the line. A sad omission.

*** NYSE has 5 memberships (A’dm, Bxls, Lbn, NY, Paris) of the WFE


ETF Exchange (ETFX) Announces The Addition Of Barclays Capital To Join The Worlds First Third Generation ETF Platform Today
ETF Securities Ltd (ETFS), the global pioneers in Exchange Traded Commodities (ETCs) and independent provider of Exchange Traded Funds (ETFs), is pleased to announce that Barclays Capital has joined ETF Exchange (Europe) (ETFX), the worlds first third generation ETF platform, as an authorised participant and swap provider. ETF Securities is initially working with BofA Merrill Lynch, Citi, Rabobank International, and Barclays Capital who are participants on the platform, with scope to add additional participants in the future.

BLOOMBERG: Nasdaq OMX to Start Inet in Europe, Says Trading Costs Fall
By Nandini Sukumar

Nasdaq OMX plans launch of third stock platform in May
Nasdaq OMX Group is targetting a May 2010 launch for a new stock exchange platform, which will be called Nasdaq OMX PSX.

BLOOMBERG: Bats Plans Second U.S. Stock Market by End of Second Quarter
By Nina Mehta

Bats Global Markets, owner of the fourth-largest U.S. stock venue, plans to open a second trading network in late May or June to offer brokerages and investors new incentives and pricing. The International Securities Exchange said it’s considering another options platform.

01/02/2010 15:59:00


Exchange operator CME Group is in talks to buy Dow Jones' index business for up to $700 million, according to the Wall Street Journal.

More on this story: http://www.finextra.com/news/fullstory.aspx?newsitemid=21021

01/02/2010 10:53:00


The London Stock Exchange's electronic retail bond trading service has gone live, opening up the market to private investors.

More on this story: http://www.finextra.com/news/fullstory.aspx?newsitemid=21018



*** Mr. Andre Went, the CEO, Mr. Saif Khalifa al-Mansoori as Deputy CEO, Mr. Olivier Gueris as Chief Operating Officer and Mr. Karim P. Hajali as Chief Commercial Officer.


LSE contemplates acquiring Dutch clearer

EMCF appoints Deutsche Bank as CEE Markets settlement agent
January 29th, 2010 - European Multilateral Clearing Facility appoints Deutsche Bank as settlement agent in Czech, Hungarian and Polish markets

*** EMCF was among industry participants in a recent hearing before the Public Finance Committee of the Polish Parliament that resulted in proposed changes to stamp duty that will, if passed, exclude international companies from duties on most equity trades.

Opposition Mounts To CME Group's Credit Derivatives Clearing
CHICAGO -(Dow Jones)- CME Group Inc. (CME) faces growing opposition from futures brokers and Wall Street banks uncomfortable with the structure of its new credit default swap clearing service. Brokers that post collateral for futures and options trades at CME said they remain wary of letting their customers' funds stand behind credit default swap transactions, a riskier and more opaque market.

REGULATORS FAST-TRACK GLOBAL REVIEW OF OTC DERIVATIVES CLEARING Global banking and securities regulators have fast-tracked a review of clearing arrangements for over-the-counter derivatives as part of a far-reaching re-appraisal of existing standards for payments, clearing and settlement systems.

Full story: http://www.finextra.com/news/fullstory.aspx?newsitemid=21029

CENTRALISED CLEARING FOR OTC DERIVATIVES RECEIVES INDUSTRY SUPPORT BUT CONCERNS REMAIN The majority of financial institutions and corporations around the world agree that moving OTC derivatives trading to a system of centralised clearing would help manage risk but many market participants still harbour serious concerns about the prospect, according to a survey from Greenwich Associates.

Full story: http://www.finextra.com/news/fullstory.aspx?newsitemid=21043

Europe’s clearing houses have stepped up the pressure on regulators, in a bid to boost competition and reduce the cost of clearing in the region.


The London Stock Exchange is keen to ensure that its post-trade division keeps pace with the evolution of trading both across Europe and within its own four walls, says Kevin Milne, the unit's new head.

Read the interview





The 2010 Intergenerational Report - 1/2/2010 http://www.treasury.gov.au/igr/igr2010/default.asp

*** a very specific report (well, as specific as 190 pages can be) on the issues around funding Australia’s aging population.

Cuomo sues Lewis and BofA over ill-fated Merrill deal
New York Attorney General Andrew Cuomo is suing Bank of America, its former chairman and chief executive Ken Lewis, and Joe Price, the present BofA chief financial officer, for "intentionally” misleading investors about Merrill Lynch's "massive" $16bn (€11.7bn)-plus losses. (The Daily Telegraph)

*** What a piece of stupidity initiated by Cuomo. I wonder what his motivation is.

DAILY MAIL: Nomura Sets its Sights on Winterflood
By Mark Foxwell
Nomura, the Japanese investment bank, is weighing up a £500 million takeover bid for Winterflood Securities, one of the City's biggest market-makers.

Miranda Kerr and the market

Given Wall Street and European market's performance overnight, you too would rather be ogling at Miranda's or Hugh Jackman's pics today. Perhaps the RBA knew what happened overnight would happen.



A new council tax-evaluation policy wants to charge us more if we live in a nice area.

That ought to mean discounts for those of us who live in rough areas.

There is a huge council house in our street. The extended family is run by a grumpy old woman with a pack of fierce dogs. Her car isn't taxed or insured and doesn't even have a number plate, but the police still do nothing.

Her bad-tempered old man is notorious for racist comments. A shopkeeper blames him for ordering the murder of his son and his son's girl-friend, but nothing has been proved. All their kids have broken marriages except the youngest, who everyone thinks is gay.

Two grandsons are meant to be in the Army but are always out partying in nightclubs. They are out of control.

I just hate living near Windsor Castle….

7 reasons why I won’t be swimming the Cole Classic this week-end:

1. Most swims -- no other swim -- will attempt to force you to enter seven weeks ahead to q ualify for lower, earlybird rates.

2. Most swims -- no other swim -- will charge you $57 to start with a copy of The Sun-Herald as the only added inducement. Most swims charge in the vicinity of $25-$35 dollars.

3. Most swims -- no other swim -- will require you to turn up either in the city on Fridee or at Brookvale on Sat'dee to collect your timing chip and swim cap. All other swims are able to organise themselves to distribute these at registration on swim day. Even the Pier to Pub at Lorne in Victoria, with 4,000 swimmers, feels secure enough to hand out chips and caps on swim day. Goodness knows how swimmers from interstate or outside Sydney, or even from the far corners of Sydney, cope with these unreasonable requirements.

4. Most swims are happy to take however many swimmers they can in order to raise the maximum funds for their causes, usually the surf club that organises the swim. We're unaware of any other swim in NSW -- only the Pier to Pub again, in Victoria -- which closes off entries beforehand (although it is true that some swims, such as The Big Swim, advertise a cap which would trigger an early closure if reached).

5. No other swim requires swimmers dressed in cossies and dripping wet straight out of the water to produce photo id to collect their prizes.

6. All other swims -- save for one or two privately organised events -- donate part of their proceeds, if not all their proceeds, to charity of one kind or another. Fairfax Meeja makes a donation to Manly LSC under an arrangement that it inherited from the Cole family, and it encourages individual swimmers to raise funds through its heroes program, but otherwise it donates nothing to charity and walks away with what we assess to be c. $100,000 or more as pure profit from this event. This is not par for the course in ocean swimming, and that's where you exorbitant entry fees are going: into Fairfax's consolidated revenue. If Fairfax Meeja wishes to challenge this, then they should publish their accounts from the Cole.

7. Most swims -- all other swims in our experience -- are happy to allow their events to be used to publicise and promote other ocean swim events. Fairfax Meeja promotes no other swim apart from Bondi-Bronte, indeed the wording of its website would have you believe that Bondi-Bronte and the Cole are the only two swims on in Sydney worth doing. Indeed, the Bondi-Bronte organiser, who works for Fairfax Meeja in running the Cole -- or did last time we heard -- himself told swimmers in a circular after his own event back in early December that the next swim in Sydney is the Cole Classic. Tell that to the organisers at Bilgola, Newport, North Bondi, Avalon, Mona Vale, and Whale Beach, plus all the other swim organisers around NSW who have run swims between Bondi-Bronte and the Cole.

Scott Riley

Business Development

[Please note my new email address: scott.riley@au.fortisclearing.com]

Fortis Global Clearing

8th Floor | 50 Bridge Street | Sydney | Australia | 2000

((Off)+61 (0)2 8916 9634 È(Mob): +61 (0)418 117 627

* scott.riley@au.fortisclearing.com

No comments: