Friday, March 5, 2010

News 100305: Chi-X HM, TM, EMSR Monitor Feb, NYSE, CCP ownership, Buddy wins!

Source: Thomson Reuters Equity Market Share Reporter

Mifid monitor gets pride of place. Congratulations to Chi-X.
Sincere best wishes to Hirander as he leaves Chi-X for ventures new. H’s focus on execution ensured Chi-X always had first mover advantage…by 6months I’d say.
NYSE stripping out business units just reinforces in my view equities trading is commodities and they are trying to capture CME style ratings for the derivatives business.

To be honest, I haven’t read all the articles this last week. My position on CCP governance remains unchanged. Users, either direct or indirect should own them. User ownership of a piece of infrastructure that you use everyday is not a conflict.

Some momentous news: Buddy WON at puppy training!
My 11yr old lead him with the sensational line up of tricks: Sit, Shake, Drop, Crawl.
Each command marked with a treat.
The competition was fierce. 3 little black dogs, so small and excitable it was hard to tell the difference if they were sitting or jumping. The other contender Odie, well, let’s just say Odie dances to his own tune…puppy training wasn’t really his thing (although he did like treats).
So, Buddy is a winner! No ribbons I’m afraid, just a munchable soft toy.

John Eales, a modern day rugby legend, surprised and enlightened me with his understanding of fashion (I fully agree):
“The fashion I hate the most is seeing boys wear their pants halfway down their butts; it never worked for the plumber and it doesn't work for the kids either. The fashion started modestly and used to expose only the brand of their undies and I sort of get that. If you pay more for your undies than you did for your shirt, you want people to know what you are wearing. Now, they are about one inch and a thin layer of cotton from exposing everything.
I never understood how this fashion began until recently. The theory purports it as a legacy of either the prison system, where no belts were allowed, or as a result of hand-me-downs from your big brother in the poorer neighbourhoods in the US. So if you wore pants that sat low on your glutteals it reinforced that you had either done porridge or that your big brother was real big and the lower the pants the greater the street cred. In either instance potential rivals left you alone as your reputation, real or imagined, preceded itself.”

A week-end off swimming.
More important things to do, like Happy Birthday…Mr Mackay!

Hope to get to see some rugby.
Ireland to win at home against Wales, Scotland fall to the travelling English marauders, Italy to lose at home or away against anyone apart from Scotland.

Have a great w/end all, I better get on with mine!



Chi-X Europe COO Misra Resigns to 'Pursue Other Interests'
By Nandini Sukumar
Feb. 23 (Bloomberg) -- Hirander Misra, chief operating officer of Chi-X Europe Ltd., the region's biggest alternative stock-trading system, has quit the firm to "pursue other interests."

Chi-X Europe maintains #1 spot in February
In our second month of monitoring the MTF performances in European Equities trading in partnership with Thomson Reuters Equity Market Share Reporter (EMSR) - for last month's figures and charts, click here - we find that Chi-X continues its success, whilst LSE win this month's battle with Xetra for second place.

UBS analysts offer bearish estimate of LSE's market share
The London Stock Exchange, which has seen its market share deteriorate as multilateral trading facilities emerge, could see its share of trading in FTSE stocks drop to 40%, although management eventually "should be able to offset this", UBS analysts said. "Short term, competitive pressure from the MTFs is likely to continue exerting downward pressure on LSE's trading revenues, which represent 22% of total revenues [in the full year 2010]," said UBS analysts Arnaud Giblat, Carolyn Dorrett and Ignacio Sanz. Financial Times (tiered subscription model) (02 Mar.)

NYSE Euronext will unveil revamped financial disclosures
NYSE Euronext, owner of the New York Stock Exchange, plans to provide information on three business segments -- technology, derivatives, and stock trading and listings -- in its revenue reports. The change could encourage investors to give its derivatives-trading division a higher value, which might boost the company's shares. "The new segments will make it abundantly clear that we are a diversified exchange," CEO Duncan Niederauer said. "We hope the added transparency will give investors the tools they need to properly assess our performance and the value of each of these businesses." Bloomberg (3/2)
*** As stated before. This is just a sign the equities business is now commoditised and a hope to replicate / capture some of the CME multiples out of derivatives. ELX still has work to do.


**** Hmmmm.
why would LSE (Turquoise) be upgrading TradExpress if they were so confident that Millennium could do the job.

Average trading order size falls by half
By Jeremy Grant
FT Trading Room
The average size of share orders on the world's exchanges has halved in the past five years, highlighting the inroads that automated and "highfrequency" trading have made on global markets.

FRANKFURT STOCK EXCHANGE TO ELIMINATE THE FLOOR AND GO ALL ELECTRONIC The Frankfurt Stock Exchange is set to end floor trading by 2012 and go exclusively electronic with the Deutsche Börse Xetra platform.
Full story:
*** electronic trading…sensational idea set to take the world by storm!

DEUTSCHE BÖRSE SYSTEMS TAPS OPEN SOURCE FOR REAL-TIME RISK Deutsche Börse's IT unit is working with open source vendor Red Hat as it bids to enable real-time transaction risk management for financial services clients.
Full story:

Hollywood Stock Exchange set to launch
Targets April 20 to begin listing b.o. projections for live trading
Hollywood Stock Exchange is tentatively set to launch as a real-money commodity exchange April 20. A spokesman said the exchange is "on track" to begin listing films' boxoffice projections for live trading from that date. HSX filed with the U.S. Commodity Futures Trading Commission for approval as an active trading site in November 2008 and recently entered the final phase of regulatory review.

Direct Edge Plans to Turn Stock Markets Into Exchanges in May
By Nina Mehta
Feb. 23 (Bloomberg) -- Direct Edge Holdings LLC expects to receive approval "imminently" from the Securities and Exchange Commission to convert its two U.S. stock markets into exchanges, according to Chief Executive Officer William O'Brien.

Deutsche Boerse XIM exchange seen facing hard road
* Aims for 20-30 members by end-March
* Starting with 96 stocks, plans to add UK, Swiss names
* Offers variable-only trading, clearing costs
By Jane Baird
LONDON, Feb 26 (Reuters) - Deutsche Boerse (DB1Gn.DE) faces a tough battle in its attempt to win back market share from upstart rivals with its new low-cost, pan-European exchange, bankers and industry experts say.



Greek bourse starts trade despite protest
ATHENS (Reuters) - Greek shares began trading on time on Tuesday, unaffected by a leftist trade union protest that sought to disrupt the session by blocking the entrance to the Hellenic Exchanges (EXCr.AT) building.

Alternative trading venues start to make inroads in Asia
Alternative trading venues, such as dark pools, are allowed in a few countries in the Asian-Pacific region, including Hong Kong, Singapore and Japan. Some countries, such as Australia, are considering opening up to such venues. Sang Lee of Aite Group said the venues have captured roughly 1% to 2% of equity markets in Asia, and he predicted a sharp increase. "I would say that we are in a waiting period," Lee said. "Some of these markets are going to push forward, and built into our assumptions is that there will be new regulations over the next couple of years that will make it possible for [alternative trading systems] to grow in Asia." Financial Times (tiered subscription model) (03 Mar.)

Nomura Sees Power Shift from West to East
Asia is witnessing a resurgence in its financial and political fortunes and will be at the forefront of an accelerated shift of global influence from west to east. This is the central finding in a major study 'The Ascent of..... Read More Here

HKEx Seeks Ties With Exchanges; Net Falls 8.3%
By Kate O'Keeffe
The Wall Street Journal (Online and Print) The Wall Street Journal - Print and Online CTGWSJ Asia Business English Copyright 2010 Dow Jones & Company, Inc. All Rights Reserved.
HONG KONG-Hong Kong Exchanges & Clearing Ltd., which runs the city's stock exchange, reported an 8.3% fall in net profit last year and said it is looking for ways to build ties with exchanges abroad even as it continues to focus on mainland China.

CFTC's Dunn: Agency Staff Still Examining CME/ELX Spat
CHICAGO -(Dow Jones)- A senior U.S. regulator said Tuesday an effort to force CME Group Inc. (CME) to open one of its key futures trading markets to a new competitor remains under review, though antitrust officials have not been involved.

NZX Net Profit Rises 280 Pct, Boosted By Asset Sales
Wellington, March 1 NZPA - Stock exchange operator NZX nearly quadrupled net profit in 2009, and this year will launch its derivative market, representing "a fundamental turning point in the profile and prospects for the NZX Group". The company today said its net profit for the 2009 full year was $38.7 million, up from $10.2m the year before, with the result in the latest year boosted by sales of its carbon registry business and its shares in the Bond Exchange of South Africa.


CFTC, SEC eye clearinghouses governance - Gensler
By Christopher Doering
WASHINGTON (Reuters) ' Congress should give U.S. securities and futures regulators the authority to ensure clearinghouses are protected against conflicts of interest, the chairman of the Commodity Futures Trading Commission said on Monday.

Clearinghouse Oversight Must Be Free Of Conflicts
WASHINGTON (Dow Jones)--Derivatives clearinghouses shouldn't be overseen by entities that have a conflict of interest, and governance should be open to both dealer and non-dealer firms, the head of the U.S. Commodity Futures Trading Commission said Monday. CFTC Chairman Gary Gensler, in remarks to the Institute of International Bankers, spoke mainly about his push for legislation that would route all routine over-the-counter derivatives through clearinghouses, which guarantee trades, and how the clearing structure should work.

*** total charges to large volume trading firms will drop to 0.9 pence per transaction compared with 2.2 pence per transaction



EMCF are pleased to inform you that as of Friday 19 March 2010, will be offering CCP services for two new markets. Both Czech Republic and Hungarian securities will become available for CCP clearing.

Turquoise and EuroCCP Extend Clearing Service to Hungarian and Czech Securities


Former Swiss Re chief named LCH.Clearnet chairman
LCH.Clearnet on Monday appointed Jacques Aigrain, a former chief executive of Swiss Re, as its next chairman, replacing Chris Tupker.

MAJOR DEALERS OUTLINE NEXT STEPS IN OTC CLEAN-UP The Federal Reserve Bank of New York has welcomed commitments by 14 major dealers to ramp up efforts to cut risks and improve post-trade automation and transparency in the over-the-counter derivatives markets.
Full story:


New Volcker text exempts market making, facilitation
The Obama administration has finalised the proposed legislative language for its controversial Volcker rule, which aims to prevent deposit-taking institutions from engaging in proprietary trading and owning or investing in private equity and hedge funds.

AFME welcomes FSA report saying hedge funds are not systemic threat
The UK Financial Services Authority released a report saying that hedge funds do not pose a significant threat to the financial system because they account for a low proportion of the equity market. Hedge funds do not "pose a potentially destabilising credit counterparty risk across the surveyed banks", the FSA said. The financial industry welcomed the findings. The FSA report "should help silence the unjustified criticism that they are a destabilising factor in the markets", AFME said. Read the FSA's report, "Assessing Possible Sources of Systemic Risk From Hedge Funds". The Guardian (London) (23 Feb.) , Bloomberg (23 Feb.) , The Wall Street Journal (23 Feb.)

CUSIP and Avox Create New Counterparty IDs
CUSIP Global Services, the numbering agency for North America, and Avox have teamed up to create a new identification code for business entities called Cabre.
Silverman: “Wall Street Does Not Know What an Order is Any More”
With the Securities and Exchange Commission beginning to look closely at practices in trading venues whose participants are kept anonymous, Andrew Silverman said Wednesday that dark pool practices such as “actionable indications of interest” are likely to wind up being treated as quotes.
New Dark Pool Rules: “The Big Issue is Attribution"
The flashpoint for dark pools in potential new rules from the Securities and Exchange Commission boils down to identifying the venue on which a transaction between an anonymous buyer and seller takes place.

NAB pays $99m for 80% of Goldman Sachs JBWere's wealth management unit

Investment analysis and index firm MSCI has agreed a deal to acquire the rival RiskMetrics Group in a cash and stock deal worth $1.55 billion.
Full story:

Deutsche Bank's Marques Is Focused on Developing Smarter Algos to Access Dark Liquidity
Jose Marques is heading up algo development and DMA trading at Deutsche Bank.;jsessionid=1EPNN0DIH3MZZQE1GHOSKHWATMY32JVN?articleID=223100578

Tora Receives Investment From Goldman Sachs
Tora Holdings, Asia's leading provider of advanced trading technology and financial services, announced february 24 that The Goldman Sachs Group, Inc. (NYSE: GS), has made a minority investment in the company.... Read More Here

Equinix Reported to Seek $170 Million For Asian Expansion
Equinix Inc., the data-center operator which hosts the electronic operations of Direct Edge and other trading venue developers, is looking to borrow $170 million to expand in Asia, according to a report published late Wednesday.

Fortis Clearing announces high speed network
Automated Trader

Tis easy enough to be pleasant, When life flows along like a song; But the man worth while is the one who will smile when everything goes dead wrong."
--Ella Wheeler Wilcox,
American writer

Be who you are and say what you feel, because those who matter don't mind, and those that mind, don't matter."
--Theodor Seuss Geisel, aka Dr. Seuss,
American author

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 (Mob): +61 (0)418 117 627

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