Sunday, November 20, 2011

CXA starts Fragulating ASX, NYSE DB, HK on and off CPs, Golden age of inflation....Dawny & it's just not cricket.

Well, it’s not often I get a reminder to push the blog out from anxious readers....but it looks like I totally overlooked the cricket.

Bloke goes to a lady of the night and says 'I’d like to be dominated, what can you do for me?'
She says, ‘Mate, for AU$100, I can do utter domination and total humiliation.’
'Great' says he, 'so what do I get for my AU$100?'
She replies 'a baggy green cap and a white shirt'

For those non cricket followers you can see plenty of baggy greens at....

At least this is lighter reading that the first test result.

Thank you so much to those generous South Africans that volunteered to arrange some extra tests...given that the Aussies can’t manage to play for 5 days...

Meanwhile, I’ll be turning my attention to the Dawny swim this Sundee.

Saturday I need to get back on the bike. We’ve booked a little father and son adventure in NZ:

4th – 11th Jan 2012.

First week of full trading for CXA. Depending on what and where you measure anything from 0.5% to 1.5% market share.

NYSE / DB remedies? I hope it’s just this press release that is scant on details. Who cares about 3rd party access to a CCP? The point is 3rd party access to the trade feed. I hope that is what they mean.

LSE taking MF Global’s stake is a nice exit for the administrators. Book that deal at 21 euros!

Couple of CPs (Consultation Papers) I missed in HK on exchange and OTC clearing.

I like SwapBox. Euroclear should be doing more of these industry / utility services. I hope their pricing is utility sized too!

Now the central banks are piling into gold? That’s it, inflation is coming. Austerity is too hard and debt too big so a nice period of inflation should help to remove some of the debt mountain. Now, I’m betting the house on inflation booming. Any other good investment strategies for me?

ASIC consults on research separation (the old softing issue). Gotta be done in my view. Commoditised and transparent.

Virgin gets Northern rock for a 747. Funny.

For those that want a break from C&S, I recommend whats wrong with agriculture.

And as for the Euro? She’ll be right mate, it’s just a bit of a squeeze right now.

Piccie from:

Another week flies by.

Have a great w/end all.



Australian Exchange: Component Failed on Primary, Backup Systems

The Australian Securities Exchange said an electronic component involved in broadcasting market messages failed on its primary and backup trading systems, leading to its four-hour outage on October 27.

Initial ASX Circular on outage:

ASX Ltd. says it will begin offering transactions in the $1 trillion Australian managed funds market on April 15 next year.

Aussie Fragmentation.


Deutsche Börse and Nyse Euronext are proposing to divest their overlapping equity options business across Europe and open up third party access to Eurex Clearing in an effort to win EU approval for their $9 billion merger deal.

They have also agreed to grant unprecedented third-party access to Eurex Clearing for interest rate and equity index derivatives on a "fair, reasonable and non-discriminatory basis" and include cross margining.

More on this story:

Shanghai exchange is ready to let foreign issuers sell shares
The Shanghai Stock Exchange is prepared to allow foreign companies to list on the second-largest equity market in the world. Trading in foreign companies' shares should start "as soon as possible when the time is ripe", said Xu Ming, an executive at the exchange. "The internationalisation of the securities market will benefit the whole nation and overseas companies are highly motivated." Bloomberg (14 Nov.)



LSE makes approach for MF's LCH stake

MF Global owns just under 2% of LCH, and administrators at KPMG are looking for a quick sale of the stake as they look to recoup significant proceeds from the broking firm.

The LSE's offer, possibly available at the same price as its EUR21-a-share bid for 51% of LCH, may be designed to prevent the stake falling into the hands of a counterbidder for the clearing house.



Consultation Paper on HKEx Clearing House Risk Management Reform Measures

73 page paper here:

Consultation paper on the proposed regulatory regime for the over-the-counter derivatives market in Hong Kong

The Hong Kong Monetary Authority (the "HKMA") and Securities and Futures Commission (the "SFC") invite market participants and interested parties to submit written comments on the Consultation paper on the proposed regulatory regime for the over-the-counter derivatives market in Hong Kong (available as Acrobat PDF file) on or before 30 November 2011.

55 page paper at:

'Swapbox' Clears Short Positions in Greek Bonds

Euroclear Bank has created a “swapbox” based on algorithms which pair off short positions in Greek government bonds with long positions of the same value.


Central banks accelerate gold purchases
Central banks more than doubled their purchases of gold in the third quarter compared with the previous quarter, when gold buying was already inflated, according to the World Gold Council. "Central-bank buying was a highlight of the quarter. Statistics this year have been remarkable," said Marcus Grubb, the council's managing director of investment. The Wall Street Journal (tiered subscription model) (18 Nov.), Financial Times (tiered subscription model) (17 Nov.)

11–255MR ASIC proposals for research houses

ASIC today released a consultation paper proposing research report providers, including research houses, separate their business units as a strategy to manage conflicts of interest as part of moves to improve confidence in the independence and quality of research reports.
This proposed segregation would involve strict and formal physical and electronic separation between ancillary business units such as consulting and funds management services and the research business.


Whats wrong with Agriculture?

As it now stands, we have holdings in the low thousands of acres, with average revenue of less than $400,000 per annum on assets over $2.5 million – barely one-third of the revenue of a modern convenience store that has a few hundred thousand dollars invested, and where

the franchisee takes home more income each year than the average farmer.

There has to be a new approach: the old one isn’t working anymore.

The British Treasury sold Northern Rock, the "good" part of a failed British bank that was taken into public ownership, to Virgin Money for £747m ($1.2 billion).

The auction to find a buyer for EMI concluded with the music label being split in two. Universal Music is to pay $1.9 billion for EMI's recorded-music division, and a consortium which includes Sony Music and the estate of Michael Jackson will buy EMI's music-publishing unit for $2.2 billion.

Imagination is more important than knowledge."

--Albert Einstein,
German-born physicist

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