Hello and welcome. I started this blog at the recommendation of others. Right now the journey is about DLT / Blockchain but it all started with Clearing and Settlement a subject always close to my heart.
Feedback, good or bad is always welcome.
Opinions here, of course, are my own. Note search facility below for ease of recall.
to keep my own mailbox tidy I try and get a blog out most weeks. Sometimes it’s
just not possible. For example in March / April this year I missed a few posts
due to travel and whilst I was collaborating on an internal piece for the ABN
AMRO client newsletter “What’s Next”.
April ’12 piece was on...
feeds and the origins of fragmentation in clearing:
Note to self. I’ll re-post this “What’s Next” item as a separate blog entry.
what else this week?
is Japan a hard nut to crack for fragmentation to take hold.
flurry of UK Clearing hires going on with Euronext forging ahead with their own
plans for a CCP. They’ve already given notice to LCH.
snippet where Rubinow, CTO of Archipelago, popped up at an NZ conference.
gives FXAll a liquidity event.
MTF stealthily moves up the dark market share ranks.
of risk in Aussie clearing.
status update, by region, on OTC clearing. Thx to the FSB.
good bloke (and he is, no puns intended on this one) gets to steer T2S.
doing some policy work, including relooking at some of the EMIR text.
Lords rushed? Good lord!...and they’re such spritely chaps.
piece by Lannoo of CEPS.
more Aussie action.
and Tibra keep the lawyers busy.
gets back into retail broking and Sony wants to give us mortgages (do we get a
free flat screen?...saves rioting like the Brits I guess).
favourite Rocky Road chocolate maker may die. Woe is me. It was the only decent
chocolate available in Aust.
moons ago I was a cocoa grader myself in the UK. Aussie chocolate is mixed with
a generous blend of sand and cement. This prevents the chocolate from melting
in the shop displays. The irony is it also prevents the chocolate from melting
in your mouth. Aussie dentists of course recommend you don’t eat too much
chocolate...although for subtly different reasons than European dentists.
is going on in sport?
want Cadel to win the tour.
as for the cricket? OMG. That simply must be cheating. A 4-nil white wash?....it’s
just not cricket.
open air pools have closed here for the winter so I’m back to pounding the
pavement preparing for the city to surf.
running 14KM’s makes you happy.
can be happy too, by supporting kids who suffer from cancer.
2012 Sun-Herald City2Surf, presented by Westpac for Cure Our Kids
mission is to improve the quality of life of children with cancer and their families
by providing a range of practical support services and education resources to
assist families presently confronting the challenge of children's cancer.
Japan electronic trade venues seek regulatory love
in Japan, where market reforms encouraging alternative venues were introduced
as way back as 1998, they have simply failed to gain traction. That is due
largely to certain restrictions that apply to the PTSs but not to stock
such restriction applicable only to PTSs is the 5% “takeover bid” rule, which
requires buyers on these venues to make a tender offer for a company, if their
stake in that company tops 5% as a result of that purchase. The rule tends to
make large institutional investors nervous about placing buy orders on PTSs,
particularly in stocks where they already have a stake.
also aren’t allowed to accept margin trades — leveraged transactions in which
an investor borrows cash or shares to trade. The PTSs say the rule affects
retail participation at their venues, given that more than 60% of individual
investors in Japan engage in margin trading.
year, Kabu.com Securities Co., Matsui Securities and Monex Inc. all ceased
their PTS operations, throwing in the towel to stop the bleeding.
said his firm currently executes about 15% of its trades at PTSs and was “very
likely” to double that if restrictions such as the 5% takeover bid rule were
removed. He said that while liquidity was thinner on PTSs than on the TSE, the
cost savings and improved portfolio performance made it worthwhile.
EURONEXT SECURES SEC APPROVAL FOR RETAIL LIQUIDITY PROGRAMME The Securities and
Exchange Commission (SEC) has given Nyse Euronext the green light to pilot a
programme designed to attract retail investors from dark pools.
centres have become the new trading floors for stock markets, according to
former New York Stock Exchange technology veteran Steve Rubinow.
came to the company in 2005 when NYSE acquired Archipelago, a fully electronic
stock exchange where he was the CTO. Archipelago had only started in 1999, but
quickly became the second largest exchange in the world after NYSE.
you are talking about microsecond trading, you are not going to do it over a
smartphone ... for security reasons,” Rubinow said.
REPUTEDLY IN TALKS WITH DIRECT EDGE AS MAPLE DEAL CLEARS REGULATORY HURDLES
national regulators giving the final nod of approval to the $3.8 billion
acquisition of Canada's TMX by the Maple consortium, the soon-to-be-merged
group is already looking further afield, with a mooted take-over of US
electronic exchange Direct Edge under review.
The Stock Exchange of Thailand
(SET) and Cinnober have been involved in a major project for the Thai exchange
trading infrastructure. The agreement, which was signed in June 2011, means
that Cinnober will deliver several core systems to the exchange. The first
phase of the project has been formally accepted by SET, and will lead to the
replacement of their current trading, market data and surveillance systems
within equities markets during Q3 2012. In following stages the project will
also include the derivatives markets.
Uptime Institute conducted its second
annual data center industry survey in March and April 2012, collecting data on
Digital Infrastructure deployment trends, procurement plans, measurement and
standards practices, and other topics that impact the mission-critical data
Please follow this
link to view the survey results in The Monthly 451:
Malta Stock Exchange to use Deutsche Börse
The Malta Stock Exchange (MSE) migrated its
electronic securities trading to Deutsche Börse’s Xetra trading system on Monday.
Xetra trading participants can now use Deutsche Börse’s infrastructure...
"...largest in Europe last month,
grabbing almost a quarter of the region’s dark trading, according to data from
UBS MTF accounted for 24.5% of European
dark MTF trading, overtaking the CXE dark book – the new name for Chi-X
Europe’s former dark pool Chi-Delta following its takeover by BATS Global
Markets – which had held the top position for the first five months of the
Concentration risk should be ringing warning bells
is called concentration risk and it goes a long way to explaining why the ASX
decided to push out the deadline to 2014 before retail stockbrokers have to
stump up $10 million in core liquidity. At present it is $5 million, but before
the GFC it was $100,000.
Asian Markets Close In on
Standards for OTC Derivatives Reporting
Asian financial centers of Japan, Hong Kong and Singapore remain at the
forefront of financial reform in Asia and are moving quickly to develop and
implement regulatory standards for trade repositories and the reporting of
over-the-counter (OTC) derivatives transactions.
UK's House of Lords has urged the European Commission to call a halt to
proposed changes to the Market in Financial Instruments Directive (MiFID II),
labelling the reforms as "ill-thought out" and potentially damaging
to the City of London.
MOVES ON WITH THE POST-TRADE INFRASTRUCTURE
Lannoo, Chief Executive of the Centre for European Policy Studies
more than a decade of hesitation, the EU is now finally moving on to put in place
a proper regulatory architecture for clearing and settlement. Following the
agreement on EMIR, the EU Commission has proposed harmonized rules for CSD’s,
while the European Central Bank (ECB) is moving on with its plans for a central
euro-zone settlement entity. After the unfortunate bypass of the 2006 Code of
Conduct, the EU will now have rules to ensure cross border provision of
services, (interoperability) and competition between clearing and settlement
entities in the EU. This will bring sea change in the sector, and could lead to
further concentration in the sector to respond to tighter margins, as we have
seen in the area of trading platforms
terms of operational set-up, ESMA began life with about 35 staff from its
predecessor body, the Committee of European Securities Regulators, at the
beginning of 2011 but by year’s end had nearly doubled to about 70. This
included the reorganisation to align the structure and the subsequent
recruitment of the management tier to ensure that we had the required basis in
place to support delivery of our responsibilities. We have succeeded in
recruiting highly qualified candidates from varied backgrounds including
government, regulatory bodies and the private sector. And we are not finished
yet. By the end of this year we intend to have 100 staff on board and I would
like to take this opportunity to say that we are still keen on attracting
experienced candidates from as broad a range of backgrounds as possible.
COMMISSION EXTENDS PROBE INTO THOMSON REUTERS RIC LICENSING The European
Commission is consulting on fresh attempts from Thomson Reuters to shrug off a
three-year antitrust probe into the licensing of Reuters Instrument Codes
But there is a worrying degree of ignorance
or regressive thinking when it comes to the role of high-speed broadband in
Australia’s future economy and society as we progress through the rest of this
new Infotronics Age.
The NBN is intended to make available fast
broadband (up to 100 megabits per second) to nearly 10 million households and
1.8 million businesses by the end of this decade. Yet South Korea already has
broadband available at 10 times that speed (1 gigabit per second) to households
and businesses; Singapore will too, next year, and some European economies are
close behind that achievement.