Thursday, October 21, 2010

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.

…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.




REUTERS: Trading Platform Chi-X to Open Books to Suitors
By Luke Jeffs
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.

REUTERS: Swiss Exchange Delays New Data Fee
By Luke Jeffs
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
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.

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


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:

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:

13/10/2010 14:27:00


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:

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

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.


Electronic Trading Industry in Asia Q3 Highlights



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 ...


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)



T2S pricing taking shape

The most recent issue of T2S OnLine:


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

Expert Group on Market Infrastructures (EGMI)

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:

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:

Rethinking Our Markets

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.


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

Full story:

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

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

''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

ABN AMRO Clearing

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

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


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