Tuesday, June 22, 2010

News 100611: Co-lo ho ho ho, did you know?, circuit breakers, CCP ownership, Englands rugby woe, offside.


Sorry, this posting a bit delayed. For those with good eyes, following the state of origin series win by Queeensland, there should be a Queensland flag flying over NSW's Sydney harbour bridge.


Co-location rule. Why not have a rant on something I know nothing about? Excellent I say. Yes, because it will level the playing field but even more so, because in my view it will curtail another avenue of predatory pricing by incumbents. As identified by the streetwise professor, the transaction value chain is constantly been commoditised with volume and scale as the triggers. Einstein also put it quite nicely (in his own way): The whole of science is nothing more than a refinement of everyday thinking.

Why should data centres be different? To me a data centre should be managed as such by dedicated providers. What makes an exchange any good at running a data centre…other than trying to sell proximity to its own commercial advantage? And I perceive a conflict of interest in maintenance versus return.

The SEC policy and ASX initiative make for a funny coupling.

Commoditise data centre access and transparency I say.

At the recent FIX conference in HK they did a great introduction with the following presentation.

I found it engaging and thought provoking. I recommend it.

You can find the Did you know video at:

http://www.youtube.com/watch?v=cL9Wu2kWwSY

I’m still not convinced on the Economic and Monetary Affairs statement “Neither should market players have a controlling influence on CCP governance and risk management.” This really needs to be taken in context. User owned and user governed is not bad. In all my experience I have never seen banks put their capital at risk ‘for the fun of it’ in central market infrastructure. Maybe someone can enlighten me? I don’t buy into shifting the utility structure to a third party who has a profit motive and not an integrity one.

I was also delighted to learn: The term Blue Chip comes from the poker chip with the highest value.

A delightful fact found on the underside of the lid to my Orange Juice. (A Liddle fact)

More startling facts are available at: http://en.wikipedia.org/wiki/Spring_Valley_Juice

Some more bits on the pending ABN Amro changes.

…and so to the important stuff…On the Rugby, looks like a pack of nancies have hit our shores…I hope they find a side to select from this lot.

The touring England party doesn't just include two teams, but also 21 officials. With the players is a team manager, attack coach, forwards coach, defence coach, scrum coach, kicking coach, team operations manager, kit technician, operations support, two analysts, a team doctor, three physiotherapists, a masseuse, a senior national fitness coach, two national fitness coaches, a sports science officer and a team media director.

…but this is just a cheap shot.

When it comes to insults, the English just do it with style…(see below).

…somewhere else in the world I understand the round ball game gets underway. If the Socceroos find fame, I’ll be their number one fair weather friend. In my heart I know all you European types are consummate professionals at cheating at this game. Challenged by a team with heart and spirit you all fold into this weird sort of negative game and play some professional ‘offside’ rule. Now, that ought to inspire a bit of hate mail!

I’ll be doing warhammer painting and watching the most inexperienced Rugby front row ever roll over this touring entourage.

Whatever your leisure, make it your pleasure,

Have a wonderful week-end all.

S

http://clearingandsettlement.blogspot.com/

Trading

11/06/2010 11:02:00

CFTC PROPOSES CO-LOCATION RULE

The US Commodity Futures Trading Commission (CFTC) is calling for a new rule governing co-location in a bid to level the playing field for traders.

More on this story: http://www.finextra.com/news/fullstory.aspx?newsitemid=21486

ASX TO BUILD DATA CENTRE

http://www.finextra.com/news/announcement.aspx?pressreleaseid=34227

Nod for ASX rival Chi-X may come in 2011

http://www.smh.com.au/business/nod-for-asx-rival-chix-may-come-in-2011-20100608-xsj1.html

ASX Group Monthly Activity Report – May 2010

http://www.asx.com.au/about/pdf/20100603_asx_group_monthly_activity_report_may_2010.pdf

The value of daily cash market trading rose sharply in May, with the average traded value rising to $7.0 billion a day, well above the levels experienced a year ago and only marginally below the record ($7.2 billion) experienced in June 2007.

Pratt family's Thorney Investment Group abandons large stake in NSX

…As a result, NSX announced recently the partial sale of the Bendigo Stock Exchange to its joint-venture partner Financial & Energy Exchange, enabling it to concentrate on the National Stock Exchange, which it hopes can benefit from looming regulatory and competition changes in the industry

http://www.theaustralian.com.au/business/news/pratt-familys-thorney-investment-group-abandons-large-stake-in-nsx/story-e6frg906-1225876667733

*** this is only relevant for those of us closely watching Aussie infrastructure.

LSE MAKES BOARD CHANGES

http://www.finextra.com/news/announcement.aspx?pressreleaseid=34109

Asian markets embrace competitiveness created by MiFID
Tora, an Asian dark-pool vendor partially owned by Goldman Sachs, plans to bolster its offerings in Japan, allowing clients to execute bigger orders in more stocks. The move is an example of how Asian markets are embracing competitiveness made possible by the Markets in Financial Instruments Directive. Financial News Online (U.K.) (subscription required) (07 Jun.)

Clearing

Daylight and rules for the derivatives market

Proposed EU rules on derivatives trading must be made clearer and tougher, so as to reduce speculative trading and ensure that as many derivatives as possible are traded through open channels that are subject to standards, said the Economic and Monetary Affairs Committee in a resolution approved on Wednesday.

The resolution stresses that CCPs must not be organised wholly by users and that their risk management systems must not be in competition with each other. Neither should market players have a controlling influence on CCP governance and risk management. It nevertheless accepts that market players should be included on the risk board and that mechanisms should be proposed to allow them to contribute to the risk management process.

http://www.europarl.europa.eu/news/expert/infopress_page/042-75317-151-05-23-907-20100531IPR75291-31-05-2010-2010-false/default_en.htm

EMCF Notice pursuant to Art. 9.1 (i) of the Clearing Participant Agreement

Fortis Bank (Nederland) N.V. (formerly Fortis Bank Nederland (Holding) N.V.) has informed us that the 403-declaration issued in favour of EMCF will be withdrawn with effect of 1 July 2010 in accordance with article 2:404(1) of the Dutch Civil Code. This withdrawal takes place in the framework of the intended merger of Fortis Bank (Nederland) N.V. and ABN AMRO Bank N.V.

The withdrawal is conditional upon the issuance of a new 403-declaration in favour of EMCF as per 1 July 2010. This new 403-declaration will be issued by ABN AMRO Group N.V. and will cover all obligations arising from legal acts of EMCF outstanding at any time. We will send you a copy of the new 403-declaration once it has been issued and filed.

EC Info Letter.

The purpose of the Info letter is to provide updates on the work of the Commission on issues related to post trading and financial market infrastructure. In particular, it focuses on the work done by Unit G2 of the Internal Market and Services DG.

The newsletter is available in electronic form. It is distributed between 2 and 4 times a year. You can subscribe/unsubscribe to the mailing list by sending an email to MARKT-G2-NEWSLETTER@ec.europa.eu.

http://ec.europa.eu/internal_market/financial-markets/news/infoletter_en.htm

EU regulators will clarify rules on derivatives, clearing
EU regulators are expected soon to issue the European Market Infrastructure Regulation, which will detail information about licensing central clearing parties and what types of derivatives will be required to be routed through CCPs, an industry insider said. Officials decided to forgo issuing a directive, which can be politically sensitive and take considerable time, in favour of a regulation. Risk.net/Energy Risk (04 Jun.)

Policy

Gorge Soros speech in full

'We have just entered Act II of the drama'

…and… What are the implications of my (Soros) theory for the regulation of the financial system?

http://www.smh.com.au/business/we-have-just-entered-act-ii-of-the-drama-20100611-y1rs.html

SEC approves new circuit breakers

(FINANCIAL MARKETS) Exchanges could implement new curbs as early as Friday. 11 Jun 2010 3:58 AM read more

http://www.businessspectator.com.au/bs.nsf/Article/UPDATE-1-SEC-approves-new-trading-curbs-for-large--6ANFN?OpenDocument&src=eiw&ir=3

SEC Approves Trading Curbs for S&P 500 Stocks That Move 10%
By Nina Mehta
June 10 (Bloomberg) -- The U.S. Securities and Exchange Commission approved rules that will halt trading in Standard & Poor's 500 Index stocks during periods of volatility, a response to the May 6 plunge that wiped out $862 billion in 20 minutes.

G-20 finance ministers decide against global bank tax
Finance ministers and central bankers from the Group of 20 decided to not pursue plans for a universal bank tax during their meeting in Busan, South Korea. Instead, the officials said in a statement that individual governments should consider their "circumstances and options". "If we're living in an ideal world, a global financial tax would be a good idea, but in reality, it is almost impossible to implement," said Tomo Kinoshita, an economist at Nomura Holdings. "There are too many obstacles. Reuters (05 Jun.) , Bloomberg Businessweek (05 Jun.)

*** common sense prevails.

Brokers & Vendors

Information on ABN AMRO Group N.V.

ABN AMRO Group N.V. is the holding company, wholly owned by the Dutch State, which holds the shares in ABN AMRO Bank N.V. and Fortis Bank (Nederland) N.V.

ABN AMRO Bank N.V. and Fortis Bank (Nederland) N.V. intend to merge. The legal merger is intended to become effective on 1 July 2010, subject to the fulfilment of the applicable conditions precedent, including but not limited to the timely receipt of relevant legal and regulatory approvals. After the legal merger the two banks will combine their activities and operate as a single bank under the name of ABN AMRO Bank N.V., held by ABN AMRO Group N.V.

More information on the merger can be found on www.abnamro.com.

Patrick Thornton-Smith leaves FFastFill
Automated Trader
FFastFill announces departure of Managing Director Patrick Thornton-Smith
http://jlne.ws/9RdiwR

*** If anyone has PTS’s new email address pls let me know. Thx, S

ASIAN INVESTOR: Instinet's John Fildes Joins High-Frequency Market-Maker Getco
Instinet, meanwhile, hires two salespeople for its electronic-trading and agency-broker offering.
By Jame DiBiasio
6/10/10

AlgoSpan and ALGO Technologies announced the selection of Interxion as their London Hub.

http://www.automatedtrader.net/headlines/42981/algospan-and-algo-technologies-select-interxion-as-london-hub

SunGard expanded its Valdi Market Access offering to the Johannesburg Stock Exchange and connected with Dutch KAS BANK for clearing and settlement.

http://www.automatedtrader.net/headlines/42981/algospan-and-algo-technologies-select-interxion-as-london-hub

Important Stuff.

O'Connor recaptures the Barbarian spirit

TIM CLARKE

Australia Barbarians 28 England 28

http://www.smh.com.au/rugby-union/union-news/oconnor-recaptures-the-barbarian-spirit-20100608-xttt.html

*** A nice story. Well done Rabbit. We’re all delighted for you. Yes?

Meet the Wallabies' new front row: 5 players, 2 caps

THE WALLABIES have taken the radical step of selecting a pimply faced yet brash front-row - with a combined 97 minutes of Test match experience - to take on the scrummaging might of England in the first Test at Subiaco Oval tomorrow night.

http://www.smh.com.au/rugby-union/union-news/meet-the-wallabies-new-front-row-5-players-2-caps-20100610-y0l3.html

*** he, he…and we’ll still win. Noice.

The whole of science is nothing more than a refinement of everyday thinking.

- Albert Einstein

When things are steep, remember to remain level headed

- Horace

There is more to life than increasing its speed.

- Gandhi

Nature does not proceed by leaps and bounds

- Linnaeus

Luck is what happens when preparation meets opportunity."

--Seneca,
Roman philosopher

Don't bother just to be better than your contemporaries or predecessors. Try to be better than yourself."

--William Faulkner,
American author

Quarrels would not last long if the fault were only on one side."

--François de La Rochefoucauld,
French author

When Insults Had Class

1.The exchange between Churchill & Lady Astor:

She said, "If you were my husband I'd give you poison." He said, "If you were my wife, I'd drink it."

2. A member of Parliament to Disraeli:"Sir, you will either die on the gallows or of some unspeakable disease."

"That depends, Sir," said Disraeli, "whether I embrace your policies or your mistress."

3. "He has all the virtues I dislike and none of the vices I admire." - Winston Churchill

4. "I have never killed a man, but I have read many obituaries with great pleasure." Clarence Darrow

5. "He has no enemies, but is intensely disliked by his friends.." - Oscar Wilde

6. "I am enclosing two tickets to the first night of my new play; bring a friend.... if you have one." -George Bernard Shaw to Winston Churchill. "Cannot possibly attend first night, will attend second.... if there is one." - Winston Churchill, in response.

7. "His mother should have thrown him away and kept the stork." - Mae West

8. "Some cause happiness wherever they go; others, whenever they go..."
- Oscar Wilde

Scott Riley

Business Development

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

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