Sunday, December 18, 2011

CXA mkt share, CXA TAS Oops, CXG, UBS, X-Clear yodels, EMCF OTC, Turquoise read all about it....and a southerly blows over Bondi to Bronti.

Bondi – Bronte was an excellent swim.
Toughest conditions (so they say) in the running of the event.
Although the day started sunny, an unfavourable southerly wind soon changed the face of the race.
More than 10% of the field either did not show or did not start.
Of those that started, about 1% got fished back out again.
Water was supposed to be 18C. As for me, my toes were numb by about the first turning buoy (can).
(Numbness is always an interesting sensation early in the race. Does get one wondering. )
One good thing I notice about swimming in bitterly cold water is clear water and great visibility.

In previous years, I’ve done this swim in about 35mins.
This year I did 52:18 (average for age was 57:22). Same course, same distance, just 17mins slower, gives you an idea of the conditions.
I knew at the end of the race I’d been for a swim....(not least because of the people with hypothermia and the space blankets all around).
Gotta respect that ocean.
In 2011, posn 519/1360, 53/127, 52:18 (avg 57.22)
In 2009, posn 839/1988, 120/215, 35:52 (Average time 37.13)
In 2008, posn 595/1702, 50/153, 35.21 (Average time 38:09)

Results here:
One report here:
Event report and pictures here:
Print your own certificate here: congratulations to you!

CXA / ASX market share:
A couple of people picked up on this.
There is a useful page / source on the ASX web site:

Turquoise on the book shelves!
ASX hiccup with CXA TAS (Trade Acceptance Service)
UBS invests in CXG.
HK upgrades.
LME upgrades and Cinnober in the news.

EMCF starts OTC clearing. I really like this. The scope of product that is eligible for clearing has only just started to be explored.
SIX yodels on interoperability...yet remains silent on their vested interest with UBS (17.3% ownership).
France calls on HFT regulation demoralizing.
List of GSIFI’s

Aussie real estate often gets cited as being expensive and hosting its own bubble.
Certainly Aussie real estate is relatively expensive...but that is because it is underpinned by a unique set of local tax arrangements.
...In fact, we even get our own negative gearing Wiki page.

This weekend...I was off to Billie....but now going off to Brissy to see mum!

Have a good weekend all,


Why the euro will be OK.
Merkozy's eurobond in disguise
It may seem absurd, but the pact between Germany and France has suddenly made Italian bonds attractive. And while everything hinges on the crisis summit, eurobonds may no longer be necessary.

And a nice...little round up of events in Asia in 2012 –
"Facing Forward & Focusing on the Future - Top 10 Newsworthy Market Events of 2011 in Asia" 
Exchange Technology Up-grades
Chi-X Australia
Hong Kong Mercantile Exchange
TSE/OSE Merger Announcement
China now has FIX Routes
Corporate Governance
HKEx and China JV
BRICS – A Move Towards Global Cooperation


Ex Turquoise CEO, Eli Lederman, self publishes his first novel!
Lederman denounces what he sees as a culture of greed in which shareholder interests rank far below individual ambition.
Lederman took the LSE to an employment tribunal last year.
“Ever smaller order sizes transacting at ever higher frequencies – that’s just an illusory boon to banks and does nothing for the end-investors for whom markets really should be designed.”

Bats Europe has suffered a trading breakdown just days after finalising a deal to acquire rival platform Chi-X Europe.

ASX glitch hits Chi-X settlement
The ASX's trade acceptance service stopped clearing and settling trades by rival exchange Chi-X from about 10am to 12pm yesterday, preventing orders from being completed.


EU regulators seek more concessions from Deutsche Boerse and NYSE
EU regulators told NYSE Euronext and Deutsche Boerse that they need to offer more concessions to overcome antitrust concerns about their proposed merger. Authorities said the exchanges' offer last month didn't sway rivals and customers. Bloomberg (06 Dec.),

AMS/3.8 Will be Implemented for Start of Trading Tomorrow
Hong Kong Exchanges and Clearing Limited (HKEx) is pleased to announce that the Post Release Test for AMS/3.8, an update to the securities market trading system, has been completed successfully, paving the way for the system to be rolled out in advance of the start of trading tomorrow (Monday) morning.
The upgrade will increase the securities market’s efficiency and transparency and pave the way for future growth.  It will increase the trading system’s processing capacity over the current capacity by about 10-fold to 30,000 orders per second, scalable to 150,000 orders per second, and reduce latency to 2 milliseconds on an average trading day, about 70 times faster than present and better than the project target of 9 milliseconds at 30,000 orders per second.

Chi-X Japan November 2011 Trading Statistics

Broadridge Connects to Chi-X in Australia
Broadridge Financial Solutions, Inc. announced November 29 that, beginning October 31, 2011, users of its SUMMIT stockbroking and accounting solution for the Australian equities market are able to take full advantage of Broadridge’s new broker trading connectivity tool to process trades executed on the recently launched Chi-X alternative exchange in Australia.

The partnership between Cinnober and the LME began back in 2003, when the Swedish supplier delivered its first version of the LMESelect platform, based on its proprietary TRADExpress technology. During this long partnership, electronic trading has grown from 2% to over 70% of the LME's market volume.

Swedish technology supplier Cinnober has released a subscription-based hosted service for banks and brokerages looking to create an Organised Trading Facility in line with new European marketplace regulations.


EMCF will offer clearing and settlement services in Over The Counter Transactions (OTC) in ING issued Sprinters and Citi's issued Speeders (both structured products) traded on cats (Citi's Automated Trading Services)

SWISS CLEARER TARGETS ASIA AS EUROPEAN INTEROPERABILITY DEALS BOOST VOLUMES SIX Securities Services is to push for clearing interoperability in Asia after doubling its market share of clearing London Stock Exchange trades following the introduction of similar measures in Europe.

Table 10, page 31 of SIX annual report.
UBS own 17.3% of SIX. (CS own 12.8%).

Market participants unconvinced by OTC reform
OTC clearing reform will not reduce systemic risk, according to 50% of market participants surveyed at a recent industry debate. Nevertheless, 79% have identified the need for collateral optimisation within their organisations, driven by regulatory changes on the horizon.


Statement by Glenn Stevens, Governor: Monetary Policy Decision
At its meeting today, the Board decided to lower the cash rate to 4.25 per cent, effective 7 December 2011.
The reduction in the cash rate as a result of the Board's previous decision flowed through to lending rates, which are now around their average level of the past 15 years.

France calls for tougher rules on high-frequency trading
Jean-Pierre Jouyet, chairman of France's market regulator, said regulatory proposals covering high-speed trading need to be stronger. "The mechanism envisaged by the [European] Commission must be expanded by giving the European Securities and Markets Authority broader powers to regulate high-frequency trading more effectively; for example, as regards platforms' pricing or tick sizes," Jouyet said. Reuters (05 Dec.)

U.S. working with other countries on swaps rules
They have complained that under the proposal, foreign subsidiaries of U.S. companies that do business with foreign institutions would be forced to back derivative trades with collateral while non-U.S. banks would not.

Mr Glenn Stevens’ speech, to the Inaugural Warren Hogan Memorial Lecture at the University of Sydney in Sydney,
The Incredible Eurodollar.
Large centres of high saving with portfolios that are overweight in foreign assets whose return is low and whose value is highly likely to go down, measured in the currencies of the holders, amounts to something of a problem. Attempts by those holders to exit this position quickly would be, to say the least, highly disruptive. They know that and that is why they do not attempt it, though there is a degree of diversification under way. To paraphrase the old line, if I owe you a few billion, I may have a problem. If I owe you a trillion or two, you may have a problem every bit as big as mine.
So there is a very long-term issue of portfolio re-balancing to be addressed here as well as one of structural realignment of national price levels (i.e. real exchange rates). At the same time though, there are increasing calls for the emerging economies with large surpluses and high reserve holdings to play a part in assisting Western economies facing budgetary and banking sector problems. With the balance sheets of many Western sovereigns already under pressure, there is hope for contributions from large reserve holders – they, after all, are the ones with the cash.

Policy Measures to Address Systemically Important Financial Institutions

Globally Systemically Important Financial Institutions:
(There will, in due course, be a framework for globally systemic insurance companies with parallel criteria.)
Bank of America
Bank of China
Bank of New York Mellon
Banque Populaire CdE
BNP Paribas
Credit Suisse
Deutsche Bank
Goldman Sachs
Group Crédit Agricole
ING Bank 
JP Morgan Chase
Lloyds Banking Group
Mitsubishi UFJ FG
Mizuho FG
Morgan Stanley
Royal Bank of Scotland
Société Générale
State Street
Sumitomo Mitsui FG
Unicredit Group
Wells Fargo



Mitsubishi UFJ takes 15% stake in AMP Capital

Mitsubishi UFJ Financial Group, Japan’s biggest publicly traded bank, has paid $425 million for a 15 percent stake in AMP Capital as part of an agreement whereby the two companies will distribute each other’s products in their respective countries.


Brazil’s huge hopes sinking?
The world’s largest iron ore carrier is disabled and could sink at a key Brazilian port from where Vale, the world’s No.2 mining company, loads about 10 per cent of the global iron-ore trade, shipping agents and media said on Monday.

Negative gearing price models
There is widespread acknowledgement that Australian tax rules, particularly negative gearing and capital gains tax (CGT) discounts for assets owned for more than a year, lead to higher home prices (and reduced tax revenue for government – in the order of $2.5billion pa).

Negative Gearing Exposed
it is clearly the case that Australia’s taxation system has artificially increased the demand for housing, thereby putting upward pressure on house prices

Negative gearing (Australia)

India’s Rupee is Now Asia’s Worst Performing Currency
India’s rupee has dropped nearly 13 percent against the dollar since the beginning of the year, thanks to a combination of domestic and international factors. Right now, it’s Asia’s worst-performing currency.

"There is nothing so useless as doing efficiently that which should not be done at all."
- Peter Drucker 

Fortunately for serious minds, a bias recognised is a bias sterilised."
--Benjamin Haydon, British painter and writer

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