Happy Koninginnedag!
http://en.wikipedia.org/wiki/Koninginnedag
(If anyone has a notable pic please send it through).
*** Note, this picture, though notable, is not really what I was expecting. I was looking for more "Orange".
Down here I’m afraid it is the end of the ocean swimming season and my outdoor pool, the ABC (Andrew Boy Charlton), is now closed until 1st September. So out come the running shoes and training for the City to Surf etc. now begins.
NEURO surgery grabbed my attention this week – what a headline.
Chi-X in the news down under and a different perspective from some locals (I wonder if they balance their opinion with the overall cost of trading on their entire portfolio?)
I really liked the piece by the Street wise professor. He’s spot on that clearing is a bundled service. As post trade costs increasingly come under the spot light, so too will unbundling rise to the fore. One of the issues competition has already illuminated is the cross subsidy between liquid and ‘less liquid’ names.
The hacking story is incredible.
The governance story of Virtu as an NYSE SLP and a DTCC Board position is interesting in so far as the HFT community continues to become part of the ‘mainstream’.
Mrs R is on a GWA (Girls Weekend Away) so I’d better get on and dial-in the pizza’s.
Have a great week-end all.
Scott.
http://clearingandsettlement.blogspot.com/
Friendship improves happiness, and abates misery, by doubling our joy, and dividing our grief."
--Joseph Addison,
British writer and politician
Trading
See also piccie above: Chi-X does not need favours.
Chi-X Says Aiming to Start Australian Operations in October
By Shani Raja
April 28 (Bloomberg) -- Chi-X Global Inc., an electronic- trading-platform provider, is aiming to start operating in Australia by October.
http://jlne.ws/a5K1aG
The launch of three new equity trading platforms will ensure the Australian Securities Exchange (ASX) stays relevant to all constituents of the trading community, says Richard Murphy, general manager, equity markets at the exchange.
http://www.thetradenews.com/node/4449
NEURO Surgery: Nasdaq Closing European Trading Venue
NASDAQ OMX WAVES WHITE FLAG ON PAN-EUROPEAN AMBITIONS Nasdaq OMX is to shutter its pan-European Multilateral Trading Facility Neuro, marking the first signs of a forecast contraction in the crowded MTF market.
Full story: http://www.finextra.com/news/fullstory.aspx?newsitemid=21335
*** The NEURO Surgery message header grabbed my attention.
New Trading System at Derivatives Market of Wiener Boerse
Wiener Boerse announced today that it converted its trading system for the derivatives market from the USbased NASDAQ-OMX's OM-Click to the Eurex system.
http://jlne.ws/ccDwMI
TOCOM AND SINGAPORE MERCANTILE EXCHANGE INK MOU
http://www.finextra.com/news/announcement.aspx?pressreleaseid=33455
Furious exchange on futures trading
Backers say B.O. exchange will help showbiz
By PAUL HARRIS
WASHINGTON -- Proponents of two proposed film futures exchanges defended their proposals on Capitol Hill Thursday amid an increasingly onerous political environment and skepticism among lawmakers about the viability of trading in weekend box office receipts.
http://bit.ly/9cP4em
*** let ‘em trade I say. Free market forces will prevail. If it’s an irrelevant product it will die a natural death.
Move towards single Asean exchange
By Kevin Brown in Kuala Lumpur
Cross-border trading between stock exchanges in south-east Asia is on course to start next year, initiating a common trading space covering stocks with a market capitalisation of more than $1,000bn, according to the head of Bursa Malaysia.
http://jlne.ws/9r7mt7
SGX CEO to boost trading
By Jonathan Kwok
THE new chief executive of the Singapore Exchange (SGX) is determined to get securities and derivatives trading here closer to the levels seen in Europe and the United States.
Mr Magnus Bocker, who joined the SGX on Dec 1, said on Friday: 'Most European exchanges are trading at between 130 and 160 per cent velocity. For the US exchanges, Nasdaq is over 200 per cent. But we are at 58 per cent.'
http://jlne.ws/bsH2ZS
ALGO Technologies offers two-digit microsecond matching
http://www.thetradenews.com/trading-venues/4485
Clearing
The Clearing Bundle
In some respects, the debate over clearing has been at cross purposes. Those who advocate clearing, including many in the banking community, often focus on the chaotic events that accompany the default of a large OTC counterparty, such as Lehman or LTCM; advocates of clearing argue that a central counterparty can mitigate the disruptions associated with a large failure. Those, like me, who are sceptical of mandates (but who are not averse to clearing if freely chosen by market participants, as has occurred in energy, freight forwards, and many interest rate swaps) focus on the incentive and information effects that affect behaviour prior to a default.
http://streetwiseprofessor.com/?p=3695
*** I really liked this piece. I totally agree that Financial Services have evolved over time through bundling, commoditising, unbundling…then moving those bundled services further up the transaction value / complexity chain. CCPs today, are bundled service providers. Today we talk about 3 steps in the transaction value chain: Trading, Clearing and Settlement. Once a CCP hits true economy of scale proportions…there is scope for unbundling. Economy of scale could be zero clearing fees…or it could take another form, such as unbundling of trade registration for example. This in turn could open more netting opportunities. (assuming more on and off exchange trade registrations given the new simplicity and focus of a commoditised service provider).
Central counterparty (CCP) interoperability in Europe is back on track, but genuine post-trade choice also depends on persuading execution venues to grant access to their trades, says Diana Chan, CEO of pan-European clearer EuroCCP.
http://www.thetradenews.com/node/4429
CFTC, SEC frown on bigger safety net for clearers
WASHINGTON, April 28 (Reuters) - The top U.S. futures and securities regulators said on Wednesday they opposed allowing clearinghouses to access the U.S. Federal Reserve's emergency liquidity.
http://jlne.ws/cbTpzz
HKEx To Expand Its Custody And Nominee Services To OTC Structured Products
Hong Kong Exchanges and Clearing Limited (HKEx) announced today that effective 26 April 2010, Hong Kong Securities Clearing Company Limited (HKSCC), a wholly-owned subsidiary of HKEx, will broaden the asset classes in its eligible securities by admitting over-the-counter (OTC) structured products (including but not limited to equity linked investments (ELIs) and equity linked notes (ELNs)) that have been authorised by the Securities and Futures Commission (SFC) into CCASS, the Central Clearing and Settlement System, for HKEx's securities market
http://jlne.ws/d7AGdC
Quick View: LCH.Clearnet versus IDCG
By Jeremy Grant
It is the oldest trick in the book: accuse your competitors of price dumping. That was what LCH.Clearnet seemed to be doing this week when Roger Liddell, chief executive of Europe's largest independent clearing house, criticised the risk management policies of his US rival, International Derivatives Clearing Group (IDCG), for being "much more lenient" with its margin policy than the London-based clearer.
http://jlne.ws/baZ6Xv
Policy
Michel Barnier Member Of The European Commission Responsible For The Internal Market And Services - Forging A New Deal Between Finance And Society: Restoring Trust In The Financial Sector - European Financial Services Conference, Brussels, 26 April 2010
http://jlne.ws/9P3ADX
EU lawmakers eyes tougher rules for dark pools
BRUSSELS, April 26 (Reuters) - Dark pool trading venues may need more regulation to avoid harming public share prices for investors, European Union lawmakers said on Monday.
Dark pools are trading venues that allow buyers and sellers of large stock orders to avoid revealing pre-trade information and signalling their intentions to the rest of the market.
http://jlne.ws/auFNtl
*** They are also gaining ground in Europe where Getco, a leading high-frequency market-maker, said it aims to launch a dark pool trading venue.
Bits & Pieces
'HACKERS' TAKE OVER BANK'S IT NETWORK WITH INFO FOUND ONLINE Tapping information found online at sites such as Facebook and LinkedIn, an anti-hacking specialist has successfully taken over the entire IT infrastructure of a client bank.
Full story: http://www.finextra.com/news/fullstory.aspx?newsitemid=21342
GETCO plans European crossing network
http://www.thetradenews.com/trading-venues/crossing-networks/4509
CITADEL TO CUT E*TRADE STAKE
http://www.finextra.com/news/announcement.aspx?pressreleaseid=33572
NYSE's Makeover Attracted GETCO to Designated Market Maker Role
Changes to the NYSE's rule set and faster technology helped lure GETCO to the exchange's designated market ...
http://advancedtrading.com/exchanges/showArticle.jhtml;jsessionid=5RF4VHT1QRXFTQE1GHPSKHWATMY32JVN?articleID=224600570&_requestid=9818
*** Interesting: Virtu Financial, SLP (Supplementary Liquidity Provider) on NYSE also now on Board of DTCC.
Penson Australia Announces Signing of 5th Correspondent - D.J. Carmichael
SYDNEY--(BUSINESS WIRE)--Penson Worldwide, Inc. (NASDAQ: PNSN) announced today that its Australian subsidiary, Penson Financial Services Australia Pty Ltd (PFSA), which commenced clearing operations just five months ago, has signed its fifth correspondent broker-dealer. Penson said it signed a three-year agreement to provide clearing services for equities and exchange traded options with D.J. Carmichael PTY Ltd., one of Australia's oldest and largest independently owned stock brokerage firms.
http://jlne.ws/8ZoT0y
FINANCIAL TIMES: Quick View -- The SEC’s Dark Pool Dilemma
By Jeremy Grant…Sifting though the dozens of letters to the Securities and Exchange Commission..
4/26/10
…Or to quote from another letter to the SEC, signed simply “R.T. Leuchtwanger”: “Technology [has] changed markets the way gunpowder changed the velocity of lead.”
E-mails show high ratings were issued often on subprime mortgages
E-mails from credit rating agencies that were released to the government show analysts gave favorable ratings to subprime mortgages even though they were aware of the risks. "Let's hope we are all wealthy and retired by the time this house of cards falters," a Standard & Poor's analyst wrote in a December 2006 e-mail. CNNMoney.com (4/24)
Downgrading ratings agencies
Stephen BartholomeuszThe grilling of Moody's and S&P by US investigators reveals two firms fixated with market share and profit and the volume of ratings rather than the performance of the securities rated. 29 Apr 2010 10:00 AM read more
http://www.businessspectator.com.au/bs.nsf/Article/Its-not-about-you-pd20100428-4X5UV?OpenDocument&src=kgb
55,000 sign up for Boobquake
11:41am | Breasts were big on Facebook on Monday as a female blogger called on women to prove wrong an Iranian cleric who preached that cleavage causes earthquakes.
http://www.blaghag.com/2010/04/boobquake-t-shirts-to-benefit-charities.html
*** Mohammad joins the fray with some excellent rebuttal by Chris & Matthew.
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