Monday, March 15, 2010

News 100312: T dilution, SEC on equity markets

Movement in the MTF space: Turquoise dilution allows some gusesstimate valuations.
Nice paper from SEC on equity market structure. (Wow, there is no shortage of information for us to digest).
I agree with MS, US pendulum has swung too far on dark pools.
…followed by a nice article on the dark.

This week has been a busy one, simply unable to cover the material.

A lovely swim this week-end after a break last week:
Into the harbour:

6 Nations: Eire, Eng and France are this weeks winners.

Have a great w/end all.

It is our attitude at the beginning of a difficult task which, more than anything else, will affect its successful outcome."
--William James,
American philosopher


08/03/2010 10:23:00
The London Stock Exchange (LSE) has sold nine per cent of its 60% stake in the merged Turquoise and Baikal businesses to Barclays, JP Morgan Cazenove and Nomura, with each bank paying £1 million for a three per cent stake.
More on this story:
Interesting. Lets say Chi-X at 16% is 5 times, T at 2.8%
3% of T is 1 myn, 100% of T = 33.3myn, 100% of Chi-X = 150 myn.

10/03/2010 10:59:00
The new management team at Turquoise has been confirmed, with CEO David Lester joined by Baikal head of technology Mark Ryland.
More on this story:

Chi-X exec warns exchange operators about challenges in Asia
Tal Cohen, CEO at Chi-X Americas, said Asia does not have an overarching "regulatory catalyst", which presents challenges for exchange operators interested in setting up shop in the region. "The struggles we face in Asia ... is that most of these exchanges are vertically integrated. They own the client facility. They are very tied in to the regulator. In some cases, they are the regulator," Cohen said. "So it very much reminds some people across the room here, probably, of what the United States looked like 10 years ago, maybe even longer than that." Securities Industry News (05 Mar.)

17 CFR PART 242
[Release No. 34-61358; File No. S7-02-10]
RIN 3235-AK47
Concept Release on Equity Market Structure
AGENCY: Securities and Exchange Commission.
ACTION: Concept release; request for comments.
SUMMARY: The Securities and Exchange Commission (“Commission”) is conducting a broad review of the current equity market structure. The review includes an evaluation of equity market structure performance in recent years and an assessment of whether market structure rules have kept pace with, among other things, changes in trading technology and practices.
*** this is a nice paper.

Morgan Stanley Says SEC Dark Pool Proposal “Too Granular”
Morgan Stanley says in a comment letter to the Securities and Exchange Commission that its proposal to regulate dark pools is too “granular” and that instead a more fundamental approach is needed.

TSE's Arrowhead System Lowers Trading Costs
Tokyo's new Arrowhead trading platform has cut trading costs by more than a third, according to a report released this week by New York-based investment technology provider Investment Technology Group.

Newedge Joins International Derivaties Clearinghouse
Multi-asset brokerage services provider Newedge USA has finalized its membership with the International Derivatives Clearinghouse, a derivatives clearing organization regulated by the CFTC.

Commonwealth Bank 2013 Vision

ANZ close to clearing final hurdle for RBS buy

Chile Earthquake Moved Entire City 10 Feet to the West

Read More


By Richard Hemming and Ruth Hughes Liley
March 2010

It is an accepted truth that changes within the industry over the past decade have made trading venues such as dark pools inevitable. Clear directional trends were provided by the removal of the monopoly of stock exchanges for trading securities and the substantial increase in use of computer technology to trade smaller and smaller lines of stock in literally milliseconds (a.k.a. high frequency trading).

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