Monday, June 14, 2010

News 100604: ASX responds, the Dark Knight, default standards, LTIDs and snub the stub. Fortis roadmap and Football template.


Mr Obama defers Aussie visit...but Ronald McD sets up his stall at Circular Quay (in front of the prestigious Cafe Sydney)
http://www.news.com.au/national/us-president-barack-obama-postpones-australia-visit/story-e6frfkvr-1225875545019

The threat of competition delivers the first tangible results in Australia.
Evidence, as if it was ever required, that there is a real need for true and sustained competition.

Congratulations to Chi-X Europe: Equity Market Share Reporter (EMSR).
Knight moving in the dark…Knight Link and Citadel.
EACH publishes default standards.
Looking at sovereign risk issues this week took us to the IMF web site. Chapter 3 is an excellent update on CCPs.
As for the Euro, get over it, it’s here to stay.
Clever boffins at BoE walk away with 8byn.
Large Trading ID’s are supported in Aust although proposed by SEC.

Couple of questions on Fortis evolution hopefully answered in respective links.

For those following the world cup, this is one of the best templates I’ve seen.
RWC organisers….look and learn.
Soccer nuts (the round ball game), enjoy!
http://www.marca.com/deporte/futbol/mundial/sudafrica-2010/calendario-english.html
BTW, why does England have a cross against it? Have they already been eliminated?

My son has just discovered the wonder of Games Workshop and Warhammer battles and modelling. Given the inclement weather we’re having here, orienteering has been cancelled, so it looks like a day of action modelling for us tomorrow. We’ll have fun.

Whatever your leisure, do it with pleasure, and have a great w/end.

S
http://clearingandsettlement.blogspot.com/



Trading

ASX slashes fees to head off stockmarket entrant Chi-X
http://www.theaustralian.com.au/business/asx-slashes-fees-to-head-off-stockmarket-entrant-chi-x/story-e6frg8zx-1225875247594

04/06/2010 11:10:00
ASX CUTS FEES AND OVERHAULS TECH AHEAD OF CHI-X CHALLENGE
The Australian Securities Exchange (ASX) has outlined plans to slash its trading fees and introduce a system aimed at high frequency traders as it prepares to face up to new competitor Chi-X.
More on this story: http://www.finextra.com/news/fullstory.aspx?newsitemid=21464



Chi-X deal allows investors to trade Brazil stocks in own currency
The new service, Chi-FX Brazil, will use executable foreign exchange rates provided by liquidity providers to disseminate streaming quotations for Bovespa-listed equities to foreign investors.

Knight Dark Pool Slips Past Goldman in Market Share
Knight Capital Group's Knight Link now ranks as the second most active dark pool, moving past Goldman Sachs' Sigma X pool, according to the latest monthly rankings from Rosenblatt Securities.
Knight Capital Said to Consider Stake in Citadel’s Equiduct
http://www.bloomberg.com.au/apps/news?pid=20601084&sid=aDWKqIdFq45k

BATS Europe Introduces Low-Cost Routing Strategy
BATS Europe said it was introducing a low-cost routing strategy for access to primary markets in Europe.

ALGO Technologies targets stale executions with new data feed
ALGO Technologies, the trading technology company headed by ex-Chi-X Europe executive Hirander Misra, has released a low-latency data feed for European and US markets.

UBS MTF
As the Committee of European Securities Regulators starts to sift through responses to its MiFID consultation papers, Dr. Robert Barnes, head of market structure, UBS – and recently-appointed CEO of the investment bank’s multilateral trading facility – cautions against restrictions on innovation.
Read the interview
http://www.thetradenews.com/node/4635



TORA TO EXPAND CROSSPOINT DARK POOL ACROSS ASIA Tora is expanding its Crosspoint dark pool across Asia following its launch in Japan earlier this year.
Full story: http://www.finextra.com/news/fullstory.aspx?newsitemid=21448



3. Lime Brokerage CEO Defends High-Frequency Trading
http://wallstreetandtech.com/trading-technology/showArticle.jhtml?articleID=224900351&cid=nl_wallstreettech_daily

NASDAQ OMX RECEIVES REGULATORY GREEN LIGHT FOR NORD POOL ACQUISITION
http://www.finextra.com/news/announcement.aspx?pressreleaseid=34029

SGX INVEST $250M IN 'WORLD'S FASTEST' TRADING ENGINE The Singapore Exchange (SGX) has outlined plans to spend $250 million and tap technology from Nasdaq OMX to build what it claims will be the world's fastest trading engine.
Full story: http://www.finextra.com/news/fullstory.aspx?newsitemid=21459


LME TAPS CINNOBER FOR E-TRADING PLATFORM UPGRADE
http://www.finextra.com/news/announcement.aspx?pressreleaseid=34028

Cinnober Unveils SaaS Offering for Exchanges
Stockholm-based financial technology provider Cinnober has launched a Software as a Service system for exchanges and marketplaces, the company said today.


Clearing
European Trade Group Advocates Disclosure on Clearinghouse Defaults
The European Association of CCP Clearing Houses, the trade group for 19 European securities clearinghouses on Friday published guidelines on what they should disclose to participants about their procedures in the event of a bank or brokerage firm’s default.
http://www.securitiesindustry.com/news/-25575-1.html?ET=securitiesindustry:e1977:171544a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=SIN_DailyClose_052710
*** I’m all for this. These are now posted on the EACH web site.
http://www.eachorg.eu/each/index.htm

01/06/2010 10:55:00
BME DELAYS LAUNCH OF EU-WIDE OTC REPOSITORY; WELCOMES CLEARSTREAM AS PARTNER
Spain's Bolse Y Mercados Espa├▒oles (BME) has set back the launch of a planned OTC trade repository by six months until the end of the year. The project's cross-border aspirations have received a boost, however, with Clearstream banking announcing its support for the venture.
More on this story: http://www.finextra.com/news/fullstory.aspx?newsitemid=21443

ICE TRUSTS CROSSES NEW VOLUME THRESHOLD FOR CDS CLEARING; WELCOMES NOMURA ONBOARD
http://www.finextra.com/news/announcement.aspx?pressreleaseid=34105


A central clearing house doesn’t reduce credit-default swap risk
A plan by global financial regulators to fix the mess created by the misuse of credit default swaps is flawed, says Darrell Duffie, professor of finance at the Stanford Graduate School of Business.
Click here to read more on our site
http://storybank.stanford.edu/stories/a-central-clearing-house-doesn%E2%80%99t-reduce-credit-default-swap-risk

Global Financial Stability Report
Meeting New Challenges to Stability and Building a Safer System
April 2010
http://www.imf.org/external/pubs/ft/gfsr/2010/01/index.htm#c1figure

Chapter III. Making Over-the-Counter Derivatives Safer: The Role of Central Counterparties
* The Basics of Counterparty Risk and Central Counterparties
* The Case for Over-the Counter Derivative Central Clearing
* Incentivizing Central Counterparty Participation and the Role of End-Users
* Criteria for Structuring and Regulating a Sound Central Counterparty
* How Should Central Counterparties Be Regulated and Overseen?
* One versus Multiple Central Counterparties?
* Conclusions and Policy Recommendations
* References
http://www.imf.org/external/pubs/ft/gfsr/2010/01/pdf/chap3.pdf

Country by country look at Europe’s debt.
http://www.nytimes.com/interactive/2010/04/06/business/global/european-debt-map.html
This is a nice graphic compared to…
http://www.smh.com.au/business/world-business/countrybycountry-look-at-europes-debt-20100601-wrs4.html?rand=1275343477560
…some regurgitated numbers. (welcome to quality Aussie mee-ja)

Live online debate: The euro
Today, guest speaker Daniel Gros, director of the Centre for European Policy Studies, explains why the euro area will not fragment over the next ten years http://news.economist.com/cgi-bin1/DM/y/eCHQx0bscdF0Mo0GdEs0EG

DTCC TO POST CDS DATA
http://www.finextra.com/news/announcement.aspx?pressreleaseid=34059


On 12 February, the AFM, DNB, FINMA, FSA and SNB released a statement highlighting that in their view interoperability yields benefits but also gives rise to inter-CCP credit exposures and that CCPs need to measure, monitor and mitigate those exposures, notably by the holding of additional collateral.1 This statement was presented by representatives of the DNB and the FSA at the MOG. The ensuing discussion highlighted a general degree of support for the main findings of the statement.
http://ec.europa.eu/internal_market/financial-markets/docs/code/mog/20100315_report_en.pdf



Policy

OFT TO PROBE BARRIERS TO ENTRY IN UK RETAIL BANKING UK competition watchdog, the Office of Fair Trading is to probe barriers to entry in the retail banking market in an effort to identify the obstacles to expansion facing new entrants and smaller banks.
Full story: http://www.finextra.com/news/fullstory.aspx?newsitemid=21439

Bank of England made £8bn profit from quantitative easing fund - The Telegraph
*** Jolly good work chaps.

US buy-side confidence in market structure low
46% of those questioned by TABB were in favour of eliminating stub quotes, which are orders entered in at remote price levels by market makers when they do not want to fulfill their obligations to supply liquidity. The SEC was reported to be mulling a ban on stub quotes earlier this week.
The large-trader reporting system proposed by the SEC in April, which would assign a unique identification number to firms executing high volumes in US equities to help monitor their trading activity, was supported by 45% of those questioned.

SEC's Large Trader Reporting System Raises Leakage Fears
Sell-Side Technology – Compliance
The planned threshold for large traders will be 2 million shares or $20 million during any calendar day, or 20 million shares or $200 million during any calendar month.
"The SEC estimates there will only be about 400 large trades [per month]," says Schwartz. "My sense is that it will be 4,000, not 400."
The new identifiers will build on the SEC's previous electronic Blue Sheets system, which is used to request information from markets, and upgrade the data to real-time. The LTIDs will include data such as customer type, the date an account opened, information for a customer's sub-accounts, the registered broker who took the order, and clearing brokers' and prime brokers' identification numbers, explains Robert Colby, counsel at Davis Polk & Wardwell.
Large traders also face a challenge of tracking subsidiaries' investments and moves in the market, according to Schwartz. "At a sovereign wealth fund that has 5,000 investments in 500 countries and doesn't actually have good data on any of those investments, many of those investments in turn make other investments, which make other investments," he says. "It's hard to imagine this scenario resulting in satisfactory reporting."
http://www.waterstechnology.com/sell-side-technology/news-analysis/1652304/sec-large-trader-reporting-system-raises-leakage-fears

TRADINGSCREEN INTEGRATES SHORT POSITION REPORTING FOR AUSTRALIAN SECURITIES
http://www.finextra.com/news/announcement.aspx?pressreleaseid=34060




Firms

What’s happening to Fortis?

Fortis Bank Netherland and ABN AMRO will merge into a single bank.
All you need to know at the merger web site:
http://www.merchant-banking.nl/About-Merchant-Banking/Merger-information/page.aspx/15691

…and the Insurance business is now…Ageas
All you need to know at their new web site:
http://www.ageas.com/en/Pages/pressrelease.aspx
with the press release here:
http://www.ageas.com/Documents/EN_ageas_29042010_015.pdf

…which just leaves the Belgian and Luxembourg activities of Fortis that went to BNP.
http://www.bnpparibas.com/en/news/finance.asp?Code=NMES-7PXPTA&Key=New%20agreement%20on%20the%20terms%20of%20the%20acquisition%20of%20Fortis%27%20activities%20in%20Belgium%20and%20Luxembourg

… and it Australia that means…
BNP Paribas Investment Partners merges with Fortis Investments in Australia
Source: Banking Business Review
http://assetmanagement.banking-business-review.com/news/bnp_paribas_investment_partners_merges_with_fortis_investments_in_australia_100601/


Now, I hope that helps those that are asking!






Misc

One who asks a question is a fool for 5 minutes;
One who does not ask a question remains a fool forever.
- Chinese Proverb.

What is a weed?
A plant whose virtues have not been discovered.
- Ralph Waldo Emerson

A hungry stomach has no ears.
- Jean De La Fontaine

The way to get things done is not to mind who gets the credit for doing them.
- Benjamin Jowett

Hate is like acid. It can damage the vessel in which it is stored as well as destroy the object on which it is poured."
--Ann Landers,
American advice columnist




Scott Riley
Business Development

Fortis Global Clearing
8th Floor | 50 Bridge Street | Sydney | Australia | 2000
(Off)+61 (0)2 8916 9634 (Mob): +61 (0)418 117 627
 scott.riley@au.fortisclearing.com

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