Wednesday, January 25, 2012

News 120120: NYSE DB sunk, Japan PTS 5%, Purematch, RBS, Penson Aust....Costa Concordia, Otago Rail Trail trail!





This week-end it’s back into the lovely, lovely ocean.
WooHoo...

36th Warriewood to Mona Vale Ocean Swim


Mind you, those sharkies appear to be getting a bit nippy...
...But fatal attacks are rare in Australia, with just 27 people killed in the past 22 years.

I spent most of last week doing a father and son bike ride which had kindly been organised by my son’s school.
Son number 1 was one of only 3 boys in his year to undertake and complete the challenge.
We did some extra rides off the trail too, that were also quite challenging.
It was great to see the overall improvement in riding skills, amongst so many other things, during the shared ride.
I can only recommend NZ. Great countryside, great people and for a small country, some of their infrastructure has been planned and executed on a heroic scale. Respect.

The Otago Rail Trail...
Canal Ride:
River Ride:
Rail Trail, Clyde to Alexandra:
Rail Trail, Alexandra to Lauder:
Rail Trail, Lauder to Ranfurly:
Rail Trail, Ranfurly to Middlemarch:
Coast Road:

The other thing I’ve done this week is some blog house keeping.
That said, if I don’t have an up to date email address for you please let me know.
I do (eventually!) post all emails at http://clearingandsettlement.blogspot.com  ... the whole point is having somewhere to search these stories!

...I feel a one sided ocean cruise ship theme coming on....

NYSE Euronext / Deutsche Bourse deal to get scuppered in EU.
Canada’s Alpha lists a bit.
Japan could open the flood gates for PTSs
The CXA story interested me...as much for the comment that ASX Purematch has yet to take on any water (liquidity).
SIX Swiss exchange have problems on the bridge.
Pipeline...sunk in favour of Aritas

Rant 1: I think it’s pretty irresponsible (or ignorant) of the financial media to report on middle eastern web site attacks. Who cares? Surely this just throws fuel onto an irrelevant fire? Trading platform outages, yes, that’s got the potential to be material...a web site down for a bit? Please. This is useless reporting. Grrr

Rant 2: On clearing I should be ranting about the new interoperability regime.
I did start reading some of the trade comments but yet again there is a failure of complete disclosure.
For example, Andrew Bowley fails to disclose he is a NED at EuroCCP....so it would be hard for him to advocate clearing anywhere else. I still feel competitive clearing in Europe is still vested interests and not about competition.

The good news is, the World Bank appears to have picked the bottom of the market (a la Costa Concordia!)
RBS scuttles equity business line.
BNY re-floats Penson

In Manchester, it looks like crime does pay, but they need to do more cost benefit analysis.
I like the Plastic Jungle exchange concept.

Well, enough from me.

As a modeller in my boyhood this one appealed to me:
A boy goes into his local toy shop and asks if they stock any Italian Cruise Liner models.
“Yes” says the shop keeper.
“Would you like me to put it on one side?”

Have a great week-end all.

S



Platforms

EU ANTI-CHIEFS PREPARE TO TORPEDO DEUTSCHE BÖRSE/NYSE MERGER
Anti-trust officials in the EU are prepared to block the proposed mega-merger between Deutsche Börse and the New York Stock Exchange over fears that the deal would stifle competition in the derivatives markets.

BLOOMBERG: TMX Group Gains Share of Canada Trading as Alpha Declines
TMX Group Inc. (X) extended its control of the Canadian market for equities trading in December after taking market share from bank-owned Alpha Group and other alternative trading platforms.
TMX, the Toronto Stock Exchange owner that’s facing a C$3.73 billion ($3.66 billion) takeover bid from a group of Canadian banks and pension funds, had 71 percent of the market across its three venues last month, up from 65 percent in November, according to monthly statistics from the Investment Industry Regulatory Organization of Canada.

BLOOMBERG: Japanese Regulator May Lower Barriers to Alternative Trading
“The FSA are rightly thinking about liquidity from the perspective of the end-investor,” said Jessica Morrison, head of Asia Pacific market structure for Deutsche Bank in Hong Kong. “Making liquidity on alternate venues sufficiently accessible to all market participants, in order to provide best execution, is an important and worthwhile priority to pursue.”
Regulatory impediments are hampering growth on Japan’s newer venues, Morrison said. For example, investors are required to make a takeover bid if they acquire more than 5 percent of a company through off-exchange transactions with more than 10 shareholders, she said. No such rule exists for shares bought on the main bourses.
“If you wanted to put PTS on equal footing with the exchanges, you’d have to get rid of the 5 percent rule,” Sadakazu Osaki, head of research at Nomura Research Institute Ltd

Chi-X determined to make inroads
Attempting to head off the new competition, the ASX in November unveiled a similar low-cost trading platform, PureMatch. It has had little success so far, attracting no volume since it launched. An ASX spokeswoman said volume was not expected until later in the year, after its new data centre was operating and it had more time to better target brokers.

VEGA-CHI SETS 7 FEBRUARY LAUNCH DATE FOR BOND TRADING MTF

NZX COMPLETES SALE OF CARBON REGISTRY TO MARKIT

 

ASX technology chief steps down

The ASX said today group executive for technology Jeff Olsson “has decided to leave” the company, with his departure date set for July.
"Unfortunately, you don't always make the right decisions over the course of time, so you can get burdened with some bad decisions or technology that was good at the time but has now aged," Mr Fowler said.
"That's not a reflection upon the current CTO -- it's just a question of scale and age. I have some sympathy for them."

SIX SWISS EXCHANGE GLITCH DELAYS TRADING SIX Swiss Exchange has been forced to delay the start of trading by three hours because of a "technical problem".

HKEx and CFFEX (China Financial Futures Exchange) sign MOU

Market Statistics 2011

ISRAELI HACKERS TARGET ARAB STOCK EXCHANGE SITES AS CYBERWAR ESCALATES
Israeli hackers have targeted the Web sites of stock exchanges in Saudi Arabia and Abu Dhabi in retaliation for an attack earlier this week on the Tel Aviv bourse.

CABLE&WIRELESS AND EQUINIX TEAM ON CLOUD-BASED SERVICES

ERIS EXCHANGE TO DISTRIBUTE MARKET DATA THROUGH CME

FOLLOWING SCANDAL, PIPELINE TRADING SYSTEMS CHANGES NAME TO ARITAS SECURITIES http://www.finextra.com/news/announcement.aspx?pressreleaseid=42720


CLEARING

ISDA SETS OUT GOALS FOR INDUSTRY CLEARING COMMITTEE

FSB ESTABLISHES LEI AND CCP WORKING GROUPS The BIS-backed Financial Stability Board has set up a working group to deliver concrete recommendations on governance issues relating to the management of new Legal Entity Identifiers (LEI) in the global securities markets.

Interoperable MTFs primed for market share growth

OTC clearing - margin methodologies

two articles that may be useful in understanding the technical aspects of clearing CDS and IRS. One-time registration required for access.
CDS clearing at ICE
http://www.futuresindustry-digital.com/futuresindustry/201111#pg33
IRS clearing at LCH.Clearnet
http://www.futuresindustry-digital.com/futuresindustry/201111#pg36
*** Thanks to Will Acworth on LinkedIn

CLS APPOINTS FOUR NEW BOARD MEMBERS



POLICY

NYSE EURONEXT LAUNCHES EU REGULATORY POLICY WEB SITE

I think this is the web site...that’s not mentioned in the press release???


REGULATORS DEMAND ACTION ON LEGAL ENTITY IDENTIFIERS
International regulatory authorities have called for the urgent creation of a universal Legal Entity Identifier (LEI) in their final report on the OTC derivatives data that should be collected, stored and disseminated by trade repositories (TRs).

World Bank Global Economic Prospects
Developing countries should prepare for further downside risks, as Euro Area debt problems and weakening growth in several big emerging economies are dimming global growth prospects, says the World Bank in the newly-released Global Economic Prospects (GEP)


PARTICIPANTS

Royal Bank Of Scotland Reorganisation - Full Statement

We are considering sale or closure options for our cash equities, corporate broking, equity capital markets, and mergers and acquisitions businesses which had income of c£220 million in the nine months to September 2011 and are currently unprofitable. We are in discussions with a number of potential buyers though there is no assurance of a sale concluding. We took this decision because we want to prioritise our resources on those businesses where we are best with customers and can operate most profitably for shareholders.


J.P. Morgan WSS posts $971 million revenue in Q4 2011
J.P. Morgan Worldwide Securities Services (WSS) net revenue was $971 million, an increase of 1 per cent compared with the year previous

BNY Mellon to snap up Penson's Australian ops
Penson Worldwide has announced the sale of its Australian subsidiary to BNY Mellon for some $32 million

LIME BROKERAGE BOASTS NANOSECOND LATENCY FOR PRE-TRADE RISK MANAGEMENT


Stuff

THIEVES DIG 100FT TUNNEL TO STEAL ATM CASH Thieves in Manchester spent six months digging a 100-foot tunnel to reach a cash machine but made off with a paltry £6000 for their troubles.

CITI INVESTS IN GIFT CARD EXCHANGE PLASTIC JUNGLE Banking giant Citi has used its investment arm to take a strategic stake in Plastic Jungle, an online exchange for gift cards. Terms of the deal were not disclosed.


We are always complaining that our days are few, and acting as though there would be no end of them."
--Seneca, Roman philosopher, statesman and playwright
Even the most tedious chore will become endurable as you parade through each day convinced that every task, no matter how menial or boring, brings you closer to fulfilling your dreams."
--Og Mandino, American author

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