News: Chi-X, SIX, ASIC, FIX, Jan B, Nordic data...miners and an insolvency rant.

Impossible is a word only to be found in the dictionary of fools."

--Napoleon Bonaparte, French military and political leader

Chi-X Europe opens its kimono (to select parties).

Glad SIX has considered wider consultation.

Locally ASIC has said it wants to be uniform after the flash crash. One interesting analogy I heard this week: The flash crash took 3 minutes…and the SEC had to analyse over 54 million data events. In the 5 months since the flash crash there have been another 900 billion data events. If post trade investment lags trading investment….what does this say about regulatory lag?

Hats off to those Nordic boys, who I assume are now being demonised. Give ‘em a job at the regulator I say. They obviously know how to process data…and how to filter data.

I think regulators asking for more and more data is maybe not always the best way to go. They want meaningful data they can use and analyse. I am not a fan of data provision for the sake of it. Use it…or lose it.

It just feels like an endless push to get OTC ‘stuff’ onto some form of regulated market.

I’ve not seen the Jan Booij FT clip yet (inhouse firewall) but great to see Jan in the spotlight. EMCF, with Chi-X Europe (how else could you have an anonymous CLOB) was the first to market and lead the step change in European clearing fees.

Some interesting stuff on T2S.

I also dislike insolvency practitioners. Once they get a ‘case’ they like to charge endlessly for their services….before other creditors of course. I do like the idea of auctioning insolvencies. Ha, make the insolvency practitioners commercial…and force them to put a value on what they are robbing from creditors.

…ahhh, and Aussie. We’ve lost 3 test matches in a row hardly that bad I would have thought but apparently this is our worst performance in 22 years! Dreadful stuff. I guess it’s all over for the Ashes them….then again, maybe not.

http://www.theroar.com.au/2010/10/14/australias-worst-test-losing-streak-in-22-years/

…what else are we Aussies world leaders at? Digging holes in the ground (inevitably with some sort of pot of gold at the bottom). So who did they send to Chile? Yeah, of course it was Aussie drillers…

Have a great w/end all.

Pretty dreadful weather here.

S

http://clearingandsettlement.blogspot.com/

PLATFORMS

TOM MTF STARTS TRADING DUTCH EQUITIES

http://www.finextra.com/news/announcement.aspx?pressreleaseid=35999

REUTERS: Trading Platform Chi-X to Open Books to Suitors
By Luke Jeffs
10/12/10
Chi-X Europe plans to open its books to rivals wanting to bid for its business, a source close to the group said, as consolidation of alternative share trading platforms heats up.

http://www.reuters.com/article/idUSLDE6810HR20101012

REUTERS: Swiss Exchange Delays New Data Fee
By Luke Jeffs
10/13/10
Swiss Exchange has delayed a controversial plan to impose a fee on rival trading platforms for use of its data under pressure from its largest clients and the Financial Services Authority.
The Zurich-based exchange group planned to introduce a 100,000 swiss franc ($103,700) annual fee on Nov. 1, but it said this week it has "deferred" the new tariff pending "a wider consultation with market participants and regulators".

THE TRADE NEWS: Algo Technologies Goes Live with Low-Latency Swiss Trading Link
By Staff
10/13/10
Algo Technologies, the trading technology supplier set up by former Chi-X Europe COO Hirander Misra, has launched high-speed connectivity for trading on SIX Swiss Exchange.
http://www.thetradenews.com/trading-venues/exchanges/5209

ASIC has insisted that any trading curbs introduced will be uniformly implemented across all new stock exchanges in Australia.

http://www.theaustralian.com.au/business/asic-says-any-changes-wil-be-uniformly-implemented-across-all-new-exchanges/story-e6frg8zx-1225937850785

HUMAN ERROR BLAMED FOR EURONEXT OUTAGE

Nyse Euronext has blamed human error for a 40 minute outage in its European cash markets yesterday, which appears to be "unrelated to any system of software components".

Full story: http://www.finextra.com/news/fullstory.aspx?newsitemid=21901

MTS INTRODUCES SINGLE DEALER PAGES FUNCTIONALITY FOR BONDVISION MTS, the electronic fixed income trading market majority owned by the LSE, has signed up six major banks to support its new Single Dealer Pages functionality for the BondVision platform, designed to enhance liquidity and best execution.

Full story: http://www.finextra.com/news/fullstory.aspx?newsitemid=21885

13/10/2010 14:27:00

LSE EXTENDS UNAVISTA TO SWAPS MARKET

The London Stock Exchange has extended its UnaVista service to the swaps market, automating the trading of CFDs and other equity derivatives and enabling users to communicate and match data through the platform.

More on this story: http://www.finextra.com/news/fullstory.aspx?newsitemid=21895

HKEx releases detail on new trading platform

The upgrades to AMS/3.8, the exchange’s matching engine, and MDS/3.8, its market data platform, are scheduled for completion by the end of 2011

http://www.thetradenews.com/trading-venues/exchanges/5196

The Calling: International Securities Exchange CIO Danny Friel

The ISE declines to release specifics, but expects to see a latency reduction of more than 75 percent with additional plans for latency improvements in mid-2011 of perhaps another 50 percent. “I’m happy to say the system is meeting and exceeding the original performance goals,” Friel says.

The platform is a joint development project with Deutsche Börse Systems (DBS), the technology subdivision of parent exchange Deutsche Börse AG. DBS will deliver the base architecture but the ISE’s technology team will be responsible for US-specific components such as the matching engine and the interfaces. While the platform will eventually be rolled out in Europe, Deutsche Börse is not yet talking about its target date for launch.

The platform being replaced was developed specifically for the ISE by Nordic exchange operator OMX—now part of Nasdaq OMX. Plans to build a new platform changed when the ISE was acquired in December 2007 by Eurex, which is co-owned by Deutsche Börse and SIX Swiss Exchange. Eventually, the ISE teamed with DBS to create the new platform about to go live.

http://www.waterstechnology.com/waters/feature/1741742/calling-international-securities-exchange-cio-danny-friel

WARSAW STOCK EXCHANGE PUBLISHES PROSPECTUS

http://www.finextra.com/news/announcement.aspx?pressreleaseid=36108

Electronic Trading Industry in Asia Q3 Highlights

http://www.asiaetrading.com/electronic-trading-industry-in-asia-q3-highlights/

QUOTE MTF TRUMPETS MATCHING ENGINE LATENCY TEST RESULTS

http://www.finextra.com/news/announcement.aspx?pressreleaseid=36034

STOCK EXCHANGE OF THAILAND EXTENDS NASDAQ OMX AGREEMENT

http://www.finextra.com/news/announcement.aspx?pressreleaseid=36031

Nasdaq OMX's Third Exchange: Are There Too Many?
Nasdaq OMX's EVP Transaction Services Eric Noll told CNBC that the innovation it brings is worth the ...

http://wallstreetandtech.com/articles/227701163?cid=nl_wallstreettech_daily

CLEARING

Price war in clearing cash equities

Oct 11 2010 A price war is raging between the incumbents in the clearing of cash equities. Jan Booij, chief executive of EMCF, one of the clearers involved, explains why fees are coming down. He also predicts interoperability, a process which allows traders a choice over where their trades are cleared, will begin in the first quarter of 2011, despite a seeming lack of progress. (3m 54sec)

http://video.ft.com/v/627322219001/Price-war-in-clearing-cash-equities

CESR SAYS MIFID REVIEW SHOULD MOVE MORE OTC TRADING TO REGULATED EXCHANGES

http://www.finextra.com/news/announcement.aspx?pressreleaseid=36098

DTCC NAMES BODSON CHIEF OPERATING OFFICER

http://www.finextra.com/news/announcement.aspx?pressreleaseid=35998

T2S pricing taking shape

http://www.ecb.europa.eu/paym/t2s/html/pricing.en.html

The most recent issue of T2S OnLine:

http://www.ecb.europa.eu/paym/t2s/html/pricing.en.html

POLICY

Exchange execs advocate price limits to avoid a crash repeat
A panel of exchange-operator executives agreed that limiting moves of individual stocks within a given time frame could be a better way to avoid a repeat of the May 6 "flash crash" than circuit breakers implemented after the market plunge. "While I think the circuit breakers are doing a good job, they were implemented pretty quickly and they are working as intended, I think limit-up limit-down would work more effectively," said Brian Hyndman, senior vice president of transaction services for Nasdaq OMX Group. Eric Noll, executive vice president of transaction services at Nasdaq, will be a featured speaker at the SIFMA 2010 Annual Meeting. Securities Technology Monitor (10/12)

ICMA Regulatory Policy Newsletter Fourth Quarter 2010

http://www.icmagroup.org/Emails/icma-regulatory/ICMA-Policy-Newsletter-101013.html

Expert Group on Market Infrastructures (EGMI)

http://ec.europa.eu/internal_market/financial-markets/clearing/egmi_en.htm

UBS expects a wave of hedge fund startups
Stuart Hendel, global head of prime brokerage at UBS, said the Swiss bank has been speaking with proprietary traders worldwide who are considering hedge fund startups, as banks make changes to comply with the US Dodd-Frank Act. "A lot of it is just talk and chatter, but there are very advanced discussions as well," Hendel said. "In the next 12 months, there is going to be much more of a startup phase than there has been in the last couple of years." Bloomberg (14 Oct.)

FIA TO PRESENT ALTERNATIVE TRADE REPORTING SYSTEM TO CFTC The Futures Industry Association has fired the latest salvo in its campaign to head off onerous new record-keeping rules by pressing ahead with plans for an alternative ownership and control reporting system that it claims will form a 'practical and cost-effective' alternative to that proposed by industry watchdogs.

Full story: http://www.finextra.com/news/fullstory.aspx?newsitemid=21887

NORWEGIAN DAY TRADERS CONVICTED OF BREAKING ALGO AND MANIPULATING PRICES A pair of Norwegian day traders have been convicted of cracking the algorithms of US broker Timber Hill and manipulating share prices, according to the Financial Times.

Full story: http://www.finextra.com/news/fullstory.aspx?newsitemid=21898

Rethinking Our Markets

By Larry Tabb

Sen. Ted Kaufman (D.-Del.) has come out with a very thoughtful response to the May 6 crash, proposing a nine-point plan that includes

1. accelerating the SEC's market structure analysis and rule making,

2. strengthening regulation of high-frequency firms,

3. re-allocating market infrastructure cost based on message traffic,

4. streamlining market data,

5. centralizing and harmonizing market center rules,

6. incentivizing deep markets over speed and tight spreads,

7. eliminating payment for order flow and market center rebates,

8. draining dark pools, and

9. eliminating the ban on locked markets.

http://advancedtrading.com/articles/227500287?cid=nl_at_daily

ABN AMRO EXTENDS IBM SERVICES CONTRACT

ABN Amro has extended its infrastructure services agreement with IBM, tapping Big Blue's technology to integrate recently merged Fortis Bank.

Full story: http://www.finextra.com/news/fullstory.aspx?newsitemid=21886

'One-man show' insolvency will not do, says judge

Justice Finkelstein has proposed ''auctioning'' the administrators' role.

http://www.smh.com.au/business/oneman-show-insolvency-will-not-do-says-judge-20101013-16k4p.html

''The miners were found 17 days after the disaster in Chile and the drill that found them was led by an Australian,'' he said. ''Since then we have been hand-in-hand with Australia and other countries and mining communities.''

Scott Riley

Business Development

8th Floor | 50 Bridge Street | Sydney | Australia | 2000

((Off)+61 (0)2 8916 9634 È(Mob): +61 (0)418 117 627

* scott.riley@au.abnamroclearing.com

News 101008: SEC Flash TOM, LSE MIT ASX, NASDAQ v Swiss, FN Ads, Getco hires.....hop to it!

One of my favourite quotes to come across this week:

Folks today have ... got this idea that self-respect means 'I am a terrific person. I am wonderful. Me, me, me.' That's not self-respect; that's vanity."

--Bessie Delany,
American dentist and civil rights pioneer

With that in mind, I received this email:

Good morning Scott

I am currently marketing the upcoming Capital Markets Technology event you will be speaking at in November.

I noticed that you have a blog and was hoping I might be able to have details of the event, including your session posted on your blog?

I’d love to have the event endorsed by you and viewed by your followers. It is at all possible to have an endorsement from you on your blog or perhaps list the details of the event?

So, keeping in context:

Please hit this web site: http://www.capitalmarketstechnology.com.au/Event.aspx?id=350478

And if you plan to be in Sydney, badger me to try and claim some kind of ‘mates rate’ discount for you.

I whole heartedly endorse my fellow speakers and panellists….as for me, me, me…I know, I know, you’ve heard enough.

BTW, followers is Courtneys choice of word, bewildered and bemused readers more like.

Enough of that,

I’ve just had a look at this site (Thursday am)…OMG Aust already has 21 Golds. I don’t know how many events there are but I assume from this tally we’ve won.

http://www.abc.net.au/commonwealthgames/2010/results/medal_tally.htm?gamesId=31&secondaryChannel=MedalTally

In the world of C&S blogs…feedback runs far higher on sporting commentary than on the intricacies of post trade infrastructure.

On the balance of sport and the new parliament we have in Australia this made me laugh out loud.

(The big eared chap is the leader of the opposition, a ‘wrecker’ of our minority government, the red head one is Welsh (touch of Kinnock I wonder?) and the speaker of the house…well he’s reading about the sporting facilities in Dehli.)

http://www.theaustralian.com.au/news/opinion/gallery-e6frg6zx-1111119669474?page=4

Which reminds me, the kiwis beat us in the obesity stakes….Australia didn’t even make it into the medals on that one.

The important news of the week:

FINDINGS REGARDING THE MARKET EVENTS OF MAY 6, 2010

REPORT OF THE STAFFS OF THE CFTC AND SEC TO THE JOINT ADVISORY COMMITTEE ON EMERGING REGULATORY ISSUES

http://www.sec.gov/news/studies/2010/marketevents-report.pdf

What a busy week on the Platforms.

Welcome to TOM and every success on your launch day.

LSE makes the jump to MIT.

Canadian competition keep up.

ASX had their AGM…usual propaganda. I do believe national exchanges also have a duty to investor education. I don’t expect them to confess that they are ripping off every retail investor through poor spreads and high commission rates (as evidenced by relatively low velocity) but I do expect them to correct, rather than promote, the false assertion that some shareholders have that HFTs are to the detriment of retail investors. When did a retail investor ever invest on the grounds of being the fastest gun in the west? To my view, they’re entirely different strategies.

Congratulations to Chi-East.

Swiss moves on predatory pricing are less inspiring than NASDAQ initiative of new market innovation.

On Clearing.

I must confess, I do like the MarkitSERV concept. Initially we had ISV’s for multimarket access. Now we have fragmented OTC clearing the same business need / commoditisation of access has arrived.

I’m more perplexed on the Financial News awards (or are they the Financial News Advertising Spend awards?)…as Tim Cave reported for FN…EMCF is the largest clearer of equities in Europe. (and lets not forget the first competing CCP that lead the charge on price competition…but hey facts should not stand in the way of a good story).

On Policy.

As stated above, the 140 page report is out.

Forget the transaction tax. It’ll never be uniform.

Congratulations to some new Getco hires: Jennifer B (FSA) and Virginie S. (many moons ago at Euronext).

Kerviel. Yessss.

And given all the Nobel awards being made, lets spare a moment for the amazing frog:

How a frog can escape capture from a field of diamagnetic levitation:

By changing shape (e.g. from a sphere to an ellipsoid) the induced moment will change (Landau et al 1984), and the force will no longer be zero, so the frog will start to oscillate about a slightly different

point. By repeating this manoeuvre at the frequency of oscillations in the minimum, the oscillations will be amplified by parametric resonance until the frog leaves the stable zone. This is a tiny effect, because the shape dependence of m is of the order j_j _ 10−5, so escape would require 105 such ‘swimming strokes’; therefore the frog would have to be persistent as well as highly coordinated.

http://iopscience.iop.org/0143-0807/18/4/012/pdf/0143-0807_18_4_012.pdf

(In practice, the frog does try to swim—but in the ordinary way, by paddling the air in the solenoid—but nevertheless remains held in the energy minimum, for the entire observation—up to 30 minutes.)

The global debt clock: $39 trillion and counting Our interactive overview of government debt across the planet

http://news.economist.com/cgi-bin1/DM/t/eCPvJ0dHglU0Mo0Klz0EB

Have a great week end all.

Hope you do your bit for the global debt clock.

S

http://clearingandsettlement.blogspot.com/

PLATFORMS

TURQUOISE TRADING DELAYED BY MILLENNIUMIT MIGRATION Trading on Turquoise was delayed by around an hour this morning by technical problems, the day after the LSE-owned platform was migrated to a new technology system.

Full story: http://www.finextra.com/news/fullstory.aspx?newsitemid=21866

Toronto aims to regain market share with new ATS

http://www.thetradenews.com/trading-venues/exchanges/5170

As from Friday 8 October 2010, The Order Machine (TOM) will start its operations. TOM will offer trading in both Belgian and Dutch equities.

http://www.tomtrading.eu/

http://www.tomtrading.eu/Press.aspx?id=25

ASX questions benefits of exchange competition

Fri, 2010-10-01 16:40

David Gonski, chairman of the Australian Securities Exchange (ASX), has warned that the introduction of competition between trading venues would bring instability to Australia’s equity markets.

http://www.thetradenews.com/trading-venues/exchanges/5154

Chi-East gets regulatory go-ahead

Chi-East, the pan-Asian dark pool joint venture between Chi-X Global and the Singapore Exchange (SGX) has received approval by local regulator the Monetary Authority of Singapore to become a recognised market operator.

According to the platform’s CEO Ned Phillips, Chi-East will launch trading in Australia, Hong Kong, Japan and Singapore by mid-November and already has backing from large sell-side firms.

Chi-East will use European clearing house LCH.Clearnet to provide central counterparty services for Japanese and Australian stocks. Singaporean stocks will be cleared through SGX’s central depository, while Hong Kong-listed stocks will also be cleared through its own local infrastructure.

http://www.thetradenews.com/trading-venues/mtfs-ecns/5161

REUTERS: Chi-X Europe Contacts FSA over Swiss Exchange Fee
By Luke Jeffs
10/06/10
Chi-X and its peers, known as multilateral trading facilities (MTF), take data from Europe's largest exchanges, including the Swiss group, so clients can compare the prices in these trading systems' private, dark pool systems with those publicly available on the main exchanges.

The exchange's share of Swiss business was 91.4 percent in January 2008, but has fallen to 66.5 percent this month, according to data from Thomson Reuters.

http://www.reuters.com/article/idUSLDE6950HM20101006

BLOOMBERG: Chi-Tech CEO Greg Smith Leaves Firm in Management Reshuffle
By Nandini Sukumar
10/05/10
Greg Smith, chief executive officer of Chi-X Global Technology, left the firm. Chi-X Global Technology, known as Chi-Tech, was formed in November 2008 following Chi-X Global's acquisition of Cicada Corp., which Smith founded.

http://www.bloomberg.com/news/2010-10-05/chi-tech-ceo-greg-smith-leaves-firm-in-third-management-change-in-a-month.html

Nasdaq to Land First Punch in Next Round of Exchanges

By Tom Steinert-Threlkeld

The Nasdaq OMX Group Friday morning launches its second U.S. equities exchange – one week before BATS Global Markets matches suit, with its second U.S. equities exchange.

The Nasdaq exchange, to be called PSX, will differentiate itself by giving priority to the size of an order, at a given price. This will make it the first U.S. equity trading platform with a price-size priority model.

For shares that execute above $1.00, transaction pricing will be:

$0.0013 fee to remove liquidity

$0.0020 rebate for adding liquidity

http://www.securitiestechnologymonitor.com/news/nasdaq-omx-launches-psx-26212-1.html?ET=securitiesindustry:e2126:171544a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=STM_BNA_08302010_100710

Volume Drops More Than 20% Second Month in Row

Equity markets in the United States suffered their second consecutive month of volume dropping more than 20 percent compared to a year ago. Daily volume is off 40 percent from May, the month of the market's Flash Crash.

September sees European trading volumes recover

Fri, 2010-10-01 13:49

European trading volumes for September 2010 have recovered to their highest level since June 2010, surpassing the turnovers recorded at the start of the year.

http://www.thetradenews.com/asset-classes/equities/5153

We are pleased to provide our eighth month of monitoring the MTF performances in European Equities trading, in partnership with Thomson Reuters

Equity Market Share Reporter (EMSR).

06/10/2010 11:48:00

BOND TRADING TO START ON XETRA AFTER INJUNCTION LIFTED

Deutsche Börse will restart trading in around 700 corporate bonds over its electronic trading system Xetra on Monday after an interim court injunction was lifted.

More on this story: http://www.finextra.com/news/fullstory.aspx?newsitemid=21867

Trading Pennies Into $7 Billion Drives High-Frequency's Cowboys

http://www.bloomberg.com/news/2010-10-06/trading-pennies-into-7-billion-profit-drives-high-frequency-s-new-cowboys.html

CLEARING

LCH.CLEARNET ENHANCES CDS CLEARING SERVICE

http://www.finextra.com/news/announcement.aspx?pressreleaseid=35946

OCC Moves into OTC Derivatives Clearing Space
OCC will take on OTC equity derivatives in the new cleared market, but also confront exclusive index ...

http://www.advancedtrading.com/articles/227700294?cid=nl_wallstreettech_daily

MarkitSERV To Become Primary Gateway for Central Clearing

http://www.advancedtrading.com/articles/227700291?cid=nl_at_daily

http://www.markitserv.com/ms-en/about/history.page?

FINANCIAL NEWS: NYSE Euronext Takes Top Gong at Financial News Awards
By Tim Cave
10/07/10
Best Clearing House
Winner: DTCC’s EuroCCP

EuroCCP reduces loss in 2009

By Tim Cave

EuroCCP, the clearing house owned by the US-based Depository Trust & Clearing Corporation, posted a €10m loss last year, although it said it remains on track to reach profitability in 2015.

The accounts also include four separate capital injections totalling €30m from its US parent the DTCC, to ensure it complied with the requirements of UK regulator the Financial Services Authority, the accounts said.

EMCF is 22% owned by Nasdaq OMX, with the remaining shares held by ABN Amro, and is the largest clearer of equities in Europe.
--write to timothy.cave@dowjones.com

http://www.efinancialnews.com/story/2010-10-08/euroccp-posts-10m-loss-2009

CFTC CALLS FOR CAP ON STAKES IN CLEARING HOUSES AND EXCHANGES The US Commodity Futures Trading Commission (CFTC) is calling for caps on the ownership stakes members can hold in clearing houses, exchanges and trading systems.

Full story: http://www.finextra.com/news/fullstory.aspx?newsitemid=21853

*** same as last week. Still a stupid and ill conceived idea.

POLICY

What caused Flash Crash.

http://www.economist.com/blogs/newsbook/2010/10/what_caused_flash_crash

FINANCIAL TIMES: Trading Firms Sign up for Cash Equities Protocol
By Philip Stafford
10/5/10

The Association for Financial Markets in Europe, a trade lobby group, on Monday said it had agreed a legal framework that allows a signatory to strike a cash balance for open trades with a signatory that defaults.

Bank of America Merrill Lynch, Barclays, Deutsche Bank, Goldman Sachs, JPMorgan Securities, Morgan Stanley, Nomura and UBS have all signed up to the protocol.

Trichet says a transaction tax must be global or forgotten
Jean-Claude Trichet, president of the European Central Bank, said a tax on financial transactions must be imposed worldwide or not at all. Trichet said introducing such a tax in Europe only would force banks to flee to areas without a levy. "The financial-transaction taxation presents a number of disadvantages economically, financially, in terms of technical implementation, and ... it has to be implemented, if decided, absolutely everywhere in the world," Trichet said. "Otherwise it only translates in displacing transactions out of those who introduce this, so I insist on that." Google/The Associated Press (02 Oct.)

*** You’re right. So, forget it.

PARTICIPANTS

FINANCIAL TIMES: Getco Hires FSA’s Jennifer Boneham
By Jeremy Grant
10/5/10
Getco has hired Jennifer Boneham, a senior staffer at the UK’s Financial Services Authority, in the latest sign that the US proprietary trading and market-making firm is tapping talent at regulators to help deal with anticipated changes to market structure regulation.

As first reported by FT Trading Room, it has also hired Virginie Saade, former head of SmartPool, a dark pool run by NYSE Euronext, to head a new European dark pool set up by Getco.

GETCO hires ex-UBS equities head

Wed, 2010-09-29 15:37

Global market making firm GETCO has appointed Daniel Coleman to its business development team as managing director

http://www.thetradenews.com/trading-execution/brokerage/5141

Swiss panel proposes a capital surcharge for UBS and Credit Suisse
A Swiss panel has proposed that UBS and Credit Suisse, the country's two largest banks, hold nearly twice as much capital as required by Basel III regulations. "It's indispensable that Switzerland imposes tighter rules than other countries," said Peter V Kunz, head of the University of Bern's business-law department. "Because of their size, the two big banks pose a bigger threat to Switzerland than the systemically relevant banks in other countries do to their economies." Bloomberg Businessweek (04 Oct.)

IMF Publishes Global Financial Stability Report
The International Monetary Fund published chapters two and three of its Global Financial Stability Report focusing on systemic liquidity risk and sovereign credit ratings. On systemic liquidity risk, the report calls for higher liquidity charges for all financial institutions that are reliant on short term wholesale markets for funding and engage in maturity transformation as well as the consideration of a fee or surcharge on the externality produced by institutions when they do not take into account the effect of their behavior on the funding market. The report also offers new guidelines on how much maturity transformation by financial institutions is appropriate when they have access to the financial safety net.

IMF report

STUFF

AUSSIE BANKNOTE MAKER HIT BY POLICE RAIDS OVER BRIBERY CLAIMS Securency, a banknote maker half owned by the Reserve Bank of Australia, has been hit by raids in Melbourne, the UK and Spain by police looking for evidence of corruption and bribery, according to The Age newspaper.

Full story: http://www.finextra.com/news/fullstory.aspx?newsitemid=21871

KERVIEL JAILED FOR FORGERY, UNAUTHORISED COMPUTER USE Jerome Kerviel has been found guilty of forgery, breach of trust and unauthorised computer use by a Paris court in relation to 2008's EUR4.9 billion rogue trading loss at Société Général.

Full story: http://www.finextra.com/news/fullstory.aspx?newsitemid=21860

The former trader has been sentenced to five years in jail, two of them suspended, and ordered to repay the bank the entire EUR4.9 billion.

*** How does one repay 4.9 billion?

Kerviel Joins Rogue Traders' Gallery
The ex-Soc Gen trader who was just sentenced to 3 years in jail, joins the ranks of some other ...

http://wallstreetandtech.com/regulatory-compliance/227700126?cid=nl_wallstreettech_daily

The Aussie banks continue to report growth in net profit through-out the GFC.

Government guarantees and a nice oligopoly….provide stability of dividends for shareholders.

http://www.rba.gov.au/chart-pack/bank-income-profitability.pdf

Hedge maze is no match for Google Earth
Staff at the Longleat Safari Park in England say visitors are increasingly using smartphones to find their way out of the park's 2-mile hedge maze. Some have navigated through the labyrinthine garden in just minutes with the help of GPS and digital maps. The Daily Mail (London) (10/6)

*** What’s the point? Next you’ll be numbering pieces on a puzzle.

The shortest way to do many things is to do only one thing at once.

Samuel Smiles

Science may never come up with a better office communication system than the tea break.

Earl Wilson

All the strength you need to achieve anything is within you.

Sara Henderson

Children think not of what is past, nor what is to come, but enjoy the present time, which few of us do.

Jean de la Bruyere

It's better to regret the things you did than regret the things you didn't do.

Randall Lane

Waste no more time arguing what a good man should be, be one."

--Marcus Aurelius,
Roman emperor

A true teacher defends his students against his own personal influences."

--Amos Bronson Alcott,
American teacher, writer and philosopher

*** This is almost right, it lacks something about learning from your students

Scott Riley

Business Development

8th Floor | 50 Bridge Street | Sydney | Australia | 2000

((Off)+61 (0)2 8916 9634 È(Mob): +61 (0)418 117 627

* scott.riley@au.abnamroclearing.com