I’ve gotta fly tonight, quite literally, so have to be
brief.
TSE outage debate, rightly, continues.
PAVE on ice. This is a long running story from Equiduct onwards.
Ultimately, I think the crux of the business case depended on access to Spanish
clearing. Wallet size and trading alone would not have allowed them to
differentiate locally (at least in my view).
ASX results half year results are out.
Another Aussie exchange, not equities, http://mmadx.com , in the news.
LCH.Clearnet results also out.
I’m not quite convinced that a CCPs handling of MF Global is
a cause for self praise.
It’s a credit crunch stupid, I found enjoyable reading.
Likewise the description of Chartalism.
There are funny things going on in Aust.
The main commercial banks are decoupling their interest rate
cycle from the RBA (Central Bank).
So much of our borrowing originates ‘off shore’, our big
banks are more sensitive to overseas rates than RBA rates.
The undermines the levers the RBA has to pull on the
domestic economy.
At the start of the week ANZ announced 1,000 layoffs....by
the end of the week they announce $1.48bn in 3 mths.
And I laughed at the former All Black coaches comment on the
England Rugby Union role...”sounds like they need a public relations
manager”...too true. English Rugby, could be, and should be, so much better and
more dominant.
Gotta go.
Last week I mentioned the risk disclaimer on swims against
“Marine Attack”.
From Hugh “
Three or four years ago the
elite field (first out) swam into a mass of bluebottles that came in suddenly –
after the course had been checked.
I was on water safety – it was
utter carnage! Two people had to go to hospital and many, many, more were
really badly stung. The youth group had to be stopped at the first buoy and
turned back and others not started.
In all seriousness, I’m glad it
was the elite field that got hit – had it been older people could have been
more serious.
So I guess that’s what they mean
by marine creatures – occasionally a hammerhead appears from around Ben
Buckler, but its soon chased away.
For me, I must say, I do worry
about stingers.
The water safety provided is a prerequisite
for me to do these swims. I just wouldn’t contemplate half these journey swims
without the knowledge of the water safety being there...just in case.
I was a surf life saver in my
youth and I like supporting the clubs now.
As for the Bond-ee Classic, I
was late for the swim. I’d planned to use public transport but hadn’t allowed
for some poor soul falling on the tracks. In the end, I got to the beach just
as my wave was setting off under the starters gun. One guy tagged me, another
guy gave me a cap (each wave is colour coded with a swimming cap) and a third
guy just pointed at the waves and said, that’s your start. I literally dropped
my bag and ran down to the surf pulling my cap and goggles on. Some warm up! I
was just happy to have caught up with the back markers of my group by the first
buoy.
As for the swim. The conditions
were perfect. The water was warm, the sun beaming, the swell gentle, the break
forgiving, the currents kind and the visibility wonderful.
Snaps and write up of the day here:
I swam it in 34:39...the average was 34:45.
Someone has done some amazing statistical analysis of the
big swim.
I did 51:36 bang on median...(and bang on median for my
suburb too).
S
PLATFORMS
Alternate venues
demand action after TSE outage
“Members of SBI Japannext’s management team, along with PTS friend
Chi-X, visited the JSDA to discuss the issue and collaborate to come up with
new JSDA rules suitable for the marketplace,” Chuck Chon, CEO of SBI Japannext,
exclusively told theTRADEnews.com. “With alternative trading venues flourishing
in the Japanese market, the post-analysis of the JSDA’s decision – which let
OSE capitalise in this situation while PTSs were forced to halt 241 stocks –
calls for fairness in regulations.”
A merger between TSE and OSE was announced
22 November and is currently slated for January 2013.
Last month, SBI Japannext remained the
largest PTS in Japan, increasing equity market share to 3.24%, from 2.88% the
previous month, while Chi-X Japan increased market share from 2.22% to 2.65%.
DEUTSCHE BÖRSE POOLS DATA AND IT ACTIVITIES INTO NEW
BUSINESS UNIT
Deutsche
Börse has set out plans to create a new business unit that will be responsible
for all data and information technology activities. The division will be led by
a new person, with current IT chief Michael Kuhn leaving the company.
Spanish mtf pave's
launch put on ice
Spanish
MTF Plataforma Alternativa de Valores Españoles (Pave) has "temporarily
postponed" its launch, blaming the "harsh" financial
environment.
More
on this story: http://www.finextra.com/news/fullstory.aspx?newsitemid=23425
Spanish MTF switches
tech partners, loses market makers
...and who was going to be PAVEs CCP?
Spanish MTF PAVE
selects EuroCCP
ASX HALF YEAR 2012 RESULTS
and
DIRECT
EDGE LAUNCHES HISTORICAL TRADE AND QUOTE DATA SERVICE
Australian
banks may take stake in new exchange
Money Market and Debt Exchange Ltd.,
Australia’s first electronic money market repurchase agreement and interest
rate derivative exchange, will invite the country’s biggest banks to take as
much as a 50 per cent stake in the company.
HKEx
Launches Founding Members Programme for Hosting Ecosystem at Next Generation
Data Centre http://www.hkex.com.hk/eng/newsconsul/hkexnews/2012/120213news.htm
NYSE
EURONEXT TO BUY FIXNETIX STAKE
Nyse
Euronext has agreed to acquire a 25% stake in UK trading technology outfit
Fixnetix. Financial terms of the deal were not disclosed.
MUSCAT
SECURITIES MARKET MIGRATES TO NYSE TECHNOLOGIES TRADING PLATFORM
CLEARING
LCH.Clearnet Group Limited Results 2011
> retained share of interest income 28% 9p130
> There can be no more eloquent demonstration of the
value of a well-resourced and well managed clearing house than the way our team
handled the MF Global situation, closing out market positions with a combined
nominal value of over €14.7 billion. This was achieved in turbulent market
conditions with minimal disruption to clients and no recourse to the Default
Fund.
> At year end, there were over a million trades in
SwapClear.
> Clearing fees (and volumes), p15.
> Extended NYSE contract in SA to 2013 (p7)
> NYSE Euronext intend to commence their own clearing
arrangements in 2013 for European cash equities and derivatives markets, and
NYSE Liffe and the London Metal Exchange have announced that they intend to
commence their own clearing arrangements at some point in the future, but the
Directors have a reasonable expectation that the Group has adequate resources
to continue in operational existence for the foreseeable future and continue to
adopt the going concern basis of accounting in preparing the annual financial
statements. NYSE Liffe and the London Metal Exchange have yet to serve formal
notice of termination on the Group for the current clearing agreements with
them.
> Last autumn, following a number of approaches from
interested parties, the Board appointed the investment bank JP Morgan to
advise on the options for the business. As a user and exchange owned
Group, LCH.Clearnet was clear that as well as providing a fair value for
the business and
an opportunity for those who wish to exit to do so, any transaction
we might contemplate would have to support the long-term objectives of our
business and be compatible with user and shareholder preferences for exchange
neutrality as a cardinal principle of the way LCH.Clearnet operates. The
London Stock Exchange confirmed in September that it was in exclusive
discussions with LCH.Clearnet regarding a possible transaction. As things stand
at the time of writing, these discussions are still ongoing and there can be no
certainty about their outcome.
Equities trading costs under pressure
14 February 2012 - Article reports
that EuroCCP has cleared an average of 3m sides per day in January, equal to
around 25 per cent of Europe’s daily average volume. Since the introduction of
interoperability on Chi-X Europe, EuroCCP has taken 40 per cent of the venue’s
trading volume. Together with a number of other European alternative trading
venues, Chi-X Europe is pushing for interoperability to reduce costs. The
article says that BofA Merrill Lynch, Credit Suisse, Morgan Stanley and Nomura
are banks that have switched trading flow to EuroCCP.
POLISH
CLEARING HOUSE KDPW_CCP SELECTS NASDAQ OMX FOR RISK MANAGEMENT
POLICY
Statement by
Commissioner Michel Barnier, following the agreement in trilogue of new
European rules to regulate financial derivatives
The regulation ensures that information on all European
derivative transactions will be reported to trade repositories and be
accessible to supervisory authorities, including the European Securities and
Markets Authority (ESMA), to give policy makers and supervisors a clear
overview of what is going on in the markets.
The regulation also requires standard derivative contracts
to be cleared through central counterparties (CCPs) and establishes stringent
organisational, business conduct and prudential requirements for these CCPs.
Breakthrough for EU OTC derivatives
regulation
The European market infrastructure
regulation (EMIR), a new regulatory framework for over-the-counter derivatives
based on criteria set by the G20, has been approved by the European Parliament
and the Council of the European Union.
The two bodies had been in disagreement
over the role of the European Securities and Markets Authority (ESMA) in
resolving disputes between national securities regulators on the authorisation
of central counterparties used to clear standardised OTC derivatives.
The European
Commission has presented its first annual Alert Mechanism Report (AMR).
It is the starting point of the Macroeconomic Imbalance
Procedure (MIP), a new surveillance tool that helps to detect and correct risky
macroeconomic developments in the EU and the euro area and thus strengthens the
economic pillar of the Economic and Monetary Union. The MIP forms part of the
so-called "six-pack" that entered into force on 13 December 2011.
21
page report here:
http://ec.europa.eu/economy_finance/economic_governance/documents/alert_mechanism_report_2012_en.pdf
***
Greece, Ireland and Portugal are too dire to report on....I guess we’ve been
alerted!
This
paper has been produced by the
International Swaps and Derivatives Association
to describe the nature of trading structure and liquidity formation in OTC
derivatives markets and the implications for framing pre-trade
transparency obligations under MIFID2/MIFIR. The
paper
makes the following points:
·
Different
trading models exist for different instruments.
·
Pre-trade
transparency differs according to the nature of a given trading model.
·
Pre-trade
transparency should be calibrated by
trading model and should adequately
accommodate
Request for Quote trading systems.
February 15, 2012
CFTC
CREATES HFT SUBCOMMITTEE
The
Commodity Futures Trading Commission (CFTC) has voted to set up a subcommittee
on high frequency trading in a bid to better understand its effects on the
market.
Swan song for the RBA: Gottliebsen
With the benefit of hindsight we should
have realised that the ability of the Reserve Bank to be the main determiner of
interest rates was weakened when Australian banks in the last two decades – but
particularly in the last 10 years – turned their back on using local Australian
savers but rather funded their growth by massive overseas borrowing on the
wholesale banking market.
At the time, they could obtain funds
overseas much more cheaply than local savings and this was a contributor to the
large growth in bank profits and the Australian economy. But if we had thought
about it, we would have realised that we had greatly lessened our power over
Australia’s interest rate destiny
Wayne Swan knows that if the banks allowed their profits to
fall at this time, the cost of this overseas money would skyrocket further,
forcing even higher interest rates.
Overseas investors are scrambling to buy Australian
government paper and the government can borrow at much lower rates than the
banks. Swan should be ready to tap that market and fund maturing overseas bank
borrowing at much lower rates. This would enable banks to lower interest rates.
Europe's Effects on
Australian Financial Markets
It’s a credit crunch,
stupid
PARTICIPANTS
ANZ to cut 1000 jobs
ANZ today said it would cut 1000 permanent jobs in Australia
during the 2012 financial year. Most of the cuts would be among middle
management, back office and support staff, it said.
ANZ reaches $1.48bn in three months
ANZ has recorded an unaudited underlying profit of $1.48
billion for the three months to December 31 2011, calling it a solid result
during a difficult global period with volatility also impacting wealth
management.
NAB struggles with tech glitch
“We can confirm that NAB experienced system problems last
night which meant some customers were unable to successfully transact using NAB
banking channels including ATMs, Eftpos, Internet Banking and Telephone
Banking,” a NAB spokeswoman said Saturday morning. “The issue was identified at
8:20pm and the issue was resolved, with customers able to transact as per
normal from 2.00am.
STUFF
The king and his coins
Chartalism is a descriptive economic theory that
details the procedures and consequences of using government-issued tokens as
the unit of money, i.e. fiat money. The name derives from the Latin charta, in the sense of
a token or ticket. The modern theoretical body of work on chartalism is
known as Modern Monetary Theory (MMT).
Parents with good intent, don’t
always implement the ideal solution....
Father shoots daughter's laptop after Facebook 'chores'
complaint
*** (I don’t own a gun.)
*** My daughter provides this insight “In my opinion its just a waste of
money, good luck to her completing any form of digital homework now…”
Kodak to stop making cameras, digital frames
Savvy Smith knocks back role for England
Former All Blacks assistant
coach Wayne Smith has ruled himself out of the running as England manager,
saying the job sounded more suited to a public relations manager than a rugby
mentor.
If you apply an inquisitive mind
to any task, it will always become interesting.
And rewarding if you add
responsibility.
(Me)
