Thursday, December 16, 2010

News 101126: LCH.CN bid (refuted), Calypso, CCP governance, Tim www, Ashes...and ho ho ho.



Sorry all, this is a belated posting of my email of 26th Nov.

Well, spoilt for choice this week-end.

The variety club 5 K fun run for children's charities…or the wedding cake island ocean swim.

Given I’ve managed to convince Daniel to join me in another fun run, we’ll join the other 5,000 runners dressed up as Santa.

http://varietythechildrenscharity.createsend4.com/T/ViewEmail/r/8388735D13B0DB1F/7CE4C503E6A0FB776A4D01E12DB8921D

Apologies to all the English. Somehow I had omitted to show any humility at all following the Wallabies defeat.

I simply don’t understand how I could have made such an oversight. Bewildering no?

So belatedly, bravo boys. (I’d make a jibe about kicking your way to glory…but we did that in Florence).

I would have loved to have been at the Munster game. Munster always favour themselves as world beaters, ever since they beat the AB’s back in ’78 (yeah last century).

And yes, I did notice there was some cricket going on. Out of blind faith, Aussie, Aussie, Aussie, Oye, Oye, Oye…but that is as far as it will extend. Aus will win 3 tests but not more. Our middle order is too frail (as evidenced yet again today).

Now, the important stuff I know you hang out for: C&S.

I still think the ASX / SGX deal still has some way to travel. Anyway, deal or no deal, Australia is crying out for fragmentation / competition. The point of no return is long gone.

As much as I cringe (don’t understand) at LSE and NYSE giving the market the addition 3 CCPs “that they want” it does put LCH.CN revenues under severe pressure.

I find it easy to believe that opportunistic investors are out there for LCH.CN. The valuation won’t be 1.2 byn euro.

LCH.CN being all things to all comers is hard. I can see an opportunist anxious to focus on growth areas (OTC clearing) but I don’t see OTC DerivNet as a ready seller.

http://www.lchclearnet.com/media_centre/press_releases/2009-02-03.asp

Calypso continues its steady march as the OTC risk engine for CCPs (SGX, TSE, Eurex etc.) I’m not sure if I should publish their customer list so these are taken from their web site.

http://www.calypso.com/news/

FIA is absolutely right, market infrastructure is a utility, commoditised activity and should be user owned and governed. Anything else will certainly give rise to “unintended consequences” (like high fees and shareholder interest over industry functionality).

Tim Berners-Lee feels the need to have a rant about the internet. Well, as I don’t know any better I’m taking sides with him.

Be a good net citizen, no corporate snooping and my god! Net neutrality…of course!

Commercial discrimination, be it of devises or sites is simply intolerable on our www…(or is it the internet?).

Anyway, make a hullaballoo about this at your next dinner party and I’m sure that will fix the problem.

(Note for Tim: what am I supposed to do to support this call to arms?)

Have a great w/end all.

I have a santa suit to get fitted.

Scott

http://clearingandsettlement.blogspot.com/

Platforms

GS Plans to launch MTF

Surely the news is that SIGMA X has an MTF MIC (Feb 2010), not that GS MTF have had one since March 2008? http://to.ly/8eyN

Goldman Sachs plans to launch MTF
US bank is working on its own exchange-like platform in a move that could help it hedge against regulatory pressure for greater trading transparency

Dangers lurking in the ASX-SGX deal

Stephen GrenvilleA big difference in capitalisations and Singapore's shady business behaviour are among the many ASX takeover issues that the target, and our government, must sharpen its focus on

http://www.businessspectator.com.au/bs.nsf/Article/ASX-SGX-merger-government-China-Singapore-pd20101122-BF3C5?OpenDocument&src=kgb

A very costly ASX trade

Robert GottliebsenIt's confirmed – the average cost per trade is far more expensive on the Singapore Exchange compared to the ASX. If the SGX-ASX merger proceeds and these charges migrate to Australia we will all lose out.

http://www.businessspectator.com.au/bs.nsf/Article/ASX-SGX-average-share-trade-bid-merger-pd20101125-BJ57B?OpenDocument&src=kgb

*** Same Johnson as in the “Johnson Report” on Australia as a Financial Centre

KGB: Mark Johnson

Kohler, Gottliebsen, BartholomeuszThe veteran director says stellar investment-banking profits are over, adding that the proposed ASX-Singapore stock exchange merger is consistent with a push for regional integration. 

http://www.businessspectator.com.au/bs.nsf/Article/KGB-Mark-Johnson-pd20101124-BH3K3?OpenDocument&src=kgb&WELCOME=AUTHENTICATED%20REMEMBER

RG: But their Singapore charges are much higher.

MJ: Yes. Well, you’ve got to make a judgement about whether they can maintain that premium for what is essentially a utility service.

RG: So therefore their share price might be a bit too high, mightn’t it, because their market probably has a much higher PE [price to earnings] ratio than the ASX and yet the charges are going to have to come down substantially?

MJ: Look, I genuinely haven’t looked at the economics or details of that, so … I regard most exchanges, though, these days as essentially utility businesses and so they’re going to be exposed to competition. Anybody whose margins are out of line is going to get competition.

QUOTE MTF IN TALKS WITH SEVEN FIRMS OVER EQUITY HANDOVER Quote MTF has confirmed that it is in discussion with a consortium of investment banks and trading firms over plans to give away a 40% stake in return for liquidity guarantees.

Full story: http://www.finextra.com/news/fullstory.aspx?newsitemid=22029

The company has also moved to cap commission fees for all investors who sign up for the service before 1 Jan 2011, at €14,000 for a year.

LSE’s Rolet targets derivatives duopoly

Rolet highlighted a need for greater depth in Europe’s equity options market, which he noted as being highly illiquid at times because of the lack of competing offerings. “We think competition from venues like Turquoise can enhance the quality and liquidity in the derivatives market - just as it did for cash equities,” said Rolet

http://www.thetradenews.com/asset-classes/equities/5399

Clearing

LCH.Clearnet: No Deal in Works

LCH.Clearnet said Monday that it had not been approached by a potential buyer, after a United Kingdom newspaper reported a bid by InterContinental Exchange of Atlanta.

http://www.securitiestechnologymonitor.com/news/lch-clearnet-ice-deal-not-in-works-26450-1.html?ET=securitiesindustry:e2173:171544a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=SIN_DailyClose__112210

FIA CALLS ON LAWMAKERS TO RETHINK CLEARING HOUSE OWNERSHIP RULES The Futures Industry Association has urged the Commodity Futures Trading Commission and the Securities and Exchange Commission to withdraw or defer acting on rules to limit ownership of clearing houses and swap execution facilities.

Full story: http://www.finextra.com/news/fullstory.aspx?newsitemid=22032

SGX SWAPS CCP USES CALYPSO SOFTWARE

http://www.finextra.com/news/announcement.aspx?pressreleaseid=36870

Policy

EC dodges dark pool data row

Under MiFID, dark pools can only execute trades at the mid-point, bid or offer of a European best or bid offer (EBBO) source that includes or is solely based on pricing data from the primary market. Specifically, pre-trade transparency waivers require dark pools to cross at a price determined “in accordance with a reference price generated by another system, where that reference price is widely published and is regarded generally by market participants as a reliable reference price”.

http://www.thetradenews.com/operations-technology/market-data/5419

NYSE Euronext to Launch Consolidated Tape in Europe

By Chris Kentouris

The technology arm of NYSE Euronext has become the latest market player to stake a claim to creating a consolidated tape of market data in Europe.

On Monday, NYSE Technologies said that beginning in the third quarter of 2011 it will partner with market data vendor Markit Boat in London to launch a consolidated tape that will provide data on all executed trades from all European regulated exchanges, multilateral trading facilities and over-the-counter markets.

RealTick already operates what it calls a Virtual Aggregated Book. The EuroVAB combines quotes across market centers for a particular stock, providing a consolidated book with best bid and offer and market depth displayed. Investment Technology Group has been producing its version of a consolidated tape since at least June 2009.

http://www.securitiestechnologymonitor.com/news/nyse-euronext-consolidated-tape-europe-26449-1.html?ET=securitiesindustry:e2172:171544a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=STM_BNA_08302010_112210

Consolidated Tape in a Millisecond Coming to U.S. Next Year

By Tom Steinert-Threlkeld

Market data from United States stock exchanges will be delivered in a consolidated stream of quote and trade information in less than a thousandths of a second by the middle of 2011, NYSE Euronext said Tuesday.

In a posting on the NYSE Euronext site, Colin Clark, its senior vice president of Strategic Analysis and Market Data, said the consolidated feed will be a thousand times faster than three years ago,thanks to “significant investment by the exchanges.

Three years ago, he said, it took a full second to deliver a combined feed of quotes and trade information.

http://www.securitiestechnologymonitor.com/news/consolidated-tape-u-s-millisecond-26457-1.html?ET=securitiesindustry:e2174:171544a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=STM_BNA_08302010_112310

Repaying Australia’s national debt

"Some market participants argue for maintaining the Commonwealth Government Securities (CGS) market. Given the fiscal strategy, this would require the Government to accumulate a substantial portfolio of financial assets. The Government therefore must assess whether it is necessary to maintain the CGS market and whether doing so will give benefits that are likely to outweigh the risks associated with accumulating substantial assets.
This discussion paper first outlines the arguments that are advanced to support maintaining the CGS market and attempts to specify the key assumptions underlying the arguments to allow them to be tested. Second, the paper considers the options available to the Government."

http://debtreview.treasury.gov.au/content/discussion.asp

UK GOVERNMENT TO STUDY ECONOMIC IMPACT OF HIGH FREQUENCY TRADING The UK government is supporting a new study into the impact of high frequency trading on market stability and the UK economy.

Full story: http://www.finextra.com/news/fullstory.aspx?newsitemid=22036

MEP SAYS ALL TRADES WILL BE ENCOURAGED INTO LIT MARKETS In what she describes as a "shot across the bow of the dark markets", Kay Swinburne, Conservative MEP for Wales says that the European Parliament is working on regulation that will actively encourage all trades to be executed in the lit markets.

Full story: http://www.finextra.com/news/fullstory.aspx?newsitemid=22042

Stuff

Fixnetix Files for Patent on 'Single-Digit Microsecond' Chip

Fixnetix said Thursday said it filed for a patent in the United States on a microchip called iX-ecute that it developed to support "single-digit microsecond" trading.

http://www.securitiestechnologymonitor.com/news/single-digit-microsecond-trading-chip-fixnetix-26435-1.html?ET=securitiesindustry:e2173:171544a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=SIN_DailyClose__112210

Aussie plastic bank note manufacturer privatised.

http://www.rba.gov.au/media-releases/2010/mr-10-27.html

Long Live the Web: A Call for Continued Open Standards and Neutrality
The Web is critical not merely to the digital revolution but to our continued prosperity—and even our liberty. Like democracy itself, it needs defending

http://www.scientificamerican.com/article.cfm?id=long-live-the-web

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

* scott.riley@au.abnamroclearing.com

No comments: