END
OF US HOUSING BUST
Just
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”.
The
April ’12 piece was on...
Trade
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.
So
what else this week?
Why
is Japan a hard nut to crack for fragmentation to take hold.
A
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.
Little
snippet where Rubinow, CTO of Archipelago, popped up at an NZ conference.
Reuters
gives FXAll a liquidity event.
UBS
MTF stealthily moves up the dark market share ranks.
Concentration
of risk in Aussie clearing.
Nice
status update, by region, on OTC clearing. Thx to the FSB.
Jesus,
good bloke (and he is, no puns intended on this one) gets to steer T2S.
Been
doing some policy work, including relooking at some of the EMIR text.
UK
Lords rushed? Good lord!...and they’re such spritely chaps.
Nice
piece by Lannoo of CEPS.
ESMA
grows.
Some
more Aussie action.
Optiver
and Tibra keep the lawyers busy.
HSBC
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).
My
favourite Rocky Road chocolate maker may die. Woe is me. It was the only decent
chocolate available in Aust.
Many
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.
What
is going on in sport?
I
want Cadel to win the tour.
...and
as for the cricket? OMG. That simply must be cheating. A 4-nil white wash?....it’s
just not cricket.
The
open air pools have closed here for the winter so I’m back to pounding the
pavement preparing for the city to surf.
Apparently
running 14KM’s makes you happy.
You
can be happy too, by supporting kids who suffer from cancer.
UK’s
Wiggins gets Cadel.
UK
whitewash? Of Aust in ODIs
The
2012 Sun-Herald City2Surf, presented by Westpac for Cure Our Kids
Our
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.
What
makes us happy?
...Get
involved in local activities!
And
the only App you need for the Olympic Games:
On the eve of the Games we are also very excited to reveal more
about the official App which will be available FREE for iPhone and Android
shortly.
Have
a great week-end all.
S
TRADING
Japan electronic trade venues seek regulatory love
But
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
exchanges.
One
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.
PTSs
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.
Last
year, Kabu.com Securities Co., Matsui Securities and Monex Inc. all ceased
their PTS operations, throwing in the towel to stop the bleeding.
Sakai
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.
NYSE
EURONEXT RESTRUCTURES LONDON MANAGEMENT TEAM
NYSE
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.
Building technology for high
frequency trading
Data
centres have become the new trading floors for stock markets, according to
former New York Stock Exchange technology veteran Steve Rubinow.
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.
“If
you are talking about microsecond trading, you are not going to do it over a
smartphone ... for security reasons,” Rubinow said.
TMX
REPUTEDLY IN TALKS WITH DIRECT EDGE AS MAPLE DEAL CLEARS REGULATORY HURDLES
With
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.
SET ready to launch Cinnober technology
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.
Thomson
Reuters has agreed to acquire multi-bank electronic foreign exchange platform
FX Alliance (FXall) for around $625 million in cash.
UPTIME
SURVEY
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
center industry.
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...
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...
UBS MTF tops dark
MTF trading
"...largest in Europe last month,
grabbing almost a quarter of the region’s dark trading, according to data from
Thomson Reuters.
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
year."
CLEARING
Concentration risk should be ringing warning bells
It
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.
Third
progress report by the
FSB on OTC derivatives
markets reform implementation.
***
92 page report with good regional summaries.
EUROCLEAR
PLANS 'COLLATERAL HIGHWAY'
IBERCLEAR
TO STEER CSDs STEERING GROUP FOR T2S
Asian Markets Close In on
Standards for OTC Derivatives Reporting
The
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.
http://www.dtcc.com/news/newsletters/dtcc/2012/jul/asian_markets_close_standards_otc_derivatives.php
DTCC CALLS ON INDUSTRY TO "FULLY DEMATERIALIZE" U.S.
FINANCIAL SERVICES MARKET
White paper outlines multi-year plan
to eliminate physical certificates
Paper
available from via this page:
or
directly here:
POLICY
EMIR
FINAL TEXT
LORDS
CALL FOR HALT TO "RUSHED" MIFID II REFORMS
The
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.
EUROPE
MOVES ON WITH THE POST-TRADE INFRASTRUCTURE
Karel
Lannoo, Chief Executive of the Centre for European Policy Studies
After
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
SHAPING
THE FUTURE OF EUROPE'S FINANCIAL MARKETS
VERENA
ROSS, Executive Director of ESMA
In
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.
Basel Committee on Banking Supervision
Consultative
document
A
framework for dealing with domestic systemically important banks
...and
what this means in an Australian context:
SEC
VOTES FOR CONSOLIDATED AUDIT TRAIL SYSTEM
The
Securities and Exchange Committee (SEC) has voted to force US exchanges and
Finra to build a consolidated audit trail system to monitor and analyse trading
activity.
More
on this story: http://www.finextra.com/News/Fullstory.aspx?newsitemid=23887
EUROPEAN
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
(RICs).
PARTICIPANTS
Optiver / Tibra
HFT strategy profiling lab launched
Australian
firm First Derivatives has launched a testing lab for HFT strategies and
algorithms
Test drive: HSBC online share trading
HSBC Bank Australia has made a return to the online
share-trading market after an absence of about six years
Coombe in line for top slot if
Sony Bank enters
Westpac
banking veteran Rob Coombe has emerged as a leading contender to head the local
operations of Japanese-owned Sony Bank as it considers a tilt at Australia’s $1
trillion-plus mortgage market.
DEUTSCHE
BANK MAKES GTB APPOINTMENTS
STUFF
A
RED HEAD RANTING.
***
I like her style.
AUSTRALIAS NATIONAL BROADBAND NETWORK (NBN)
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.
The full IBM report is available at ibm.com/ibm/au/digitalfuture.
Barangaroo South construction set
to begin as Lend Lease raises $2 billion
Construction of two commercial towers at
Barangaroo will now commence after Lend Lease received commitments totalling $2
billion from cornerstone investors on the Sydney Harbour project.
Calculate an IBAN
Darrell Lea goes bust after 85
years, 700 jobs under threat
The
family-owned company, which manufactures chocolate , which include rocky road.
Cocoa Grader: Hard Job, Sweet
Perks
http://online.wsj.com/article/SB10001424052702303292204577516833843957916.html#articleTabs%3Darticle
***
Ahh, takes me back. I was a cocoa grader in the UK.
Are you ready for your close-up?
Any
potential employee should know the tricks of the TV trade, particularly
lighting and how to sit and what to wear on camera.
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