Monday, July 9, 2012

Straight into the good news...Wanted...One C&S candidate! This is a UK role.
What they’re looking for: we’re after someone with clearing knowledge though experience as a desk assistant/knowledge of the full trading lifecycle would suffice.  Individuals will also be using SQL on a daily basis so the perfect candidate would have these skills.  However, if someone can demonstrate technical proficiency/the ability and will to learn then we can happily train.
Any interest? Send your CV / details through and I will pass on to the firm.

This weeks piccie: Bank profits head east....

Straight into the good news...Wanted...One C&S candidate! This is a UK role.
What they’re looking for: we’re after someone with clearing knowledge though experience as a desk assistant/knowledge of the full trading lifecycle would suffice.  Individuals will also be using SQL on a daily basis so the perfect candidate would have these skills.  However, if someone can demonstrate technical proficiency/the ability and will to learn then we can happily train.
Any interest? Send your CV / details through and I will pass on to the firm.

Lots of news about Barclays. Nothing much to add on Barclays itself. It does throw up the bigger moral questions about our financial system and even the fractional banking model.
(All of which, like the Euro, I believe will endure).
More locally, at the SAA (Stockbrokers Assoc.) conference this year the point was made that, we the public, don’t stand around on the sidelines at Saturday morning sport and say, Ahhh, I want a structured financial product...I must go and have a chat to my stockbroker.
It all stems from the issue of how do Stockbrokers monetise their flow; their customers.
Does more need to do be done to brand “Stockbrokers” so we see them as a store of value in their own right?
Maybe then we will see more attractive pricing multiples triggering further consolidation.
Anyway, all part of the Aussie review of the Future of Financial Advice. Feel free to comment (to Treasury with the links below).
So I think we’ll see more commoditisation and silos in the industry. Segregation of retail banking, financial advice, investment banking etc.

Lots of changes in the clearing space and lots of musical chairs.
Changes also at Swift, Getco and IMC.
ASIC review ASX and this gets a funny wrap in the local press...please hold the line. Now that’s got to be infuriating!

I read 110yrs for ex-SIB chief...and straight away thought of the old UK Securities and Investment Board....I guess Andrew Large is safe for a few more years.
China continues to 2015 it will install more solar than the world in 2011.

What hope is there for us in the land down under?
... a small church near Glenferrie Oval had on its board: ''What would you do if Jesus Christ came to Hawthorn today?''
Underneath it someone scrawled: ''Move Peter Hudson to centre-half forward.''

And so another Tour De France comes around.
Good luck Cadel!

Have a great week-end all,



Nyse Euronext completes $1bn refinancing
Joint lead arrangers and book runners for the financing are Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Bank of China, New York Branch.

Patrick Birley joins NYSE Euronext clearing team
NYSE Euronext (NYX) today announced the appointment of Patrick Birley as Chief Commercial Officer of its new full-service Clearing House in London, which is due to commence operations from June 2013. 

12-156MR ASIC releases ASX assessment report
ASIC today released its annual assessment report of the ASX Group (ASX) licensees (REP 289).
The assessment covers the period 1 July 2010 to 1 November 2011 and pays attention to how ASX dealt with a number of specific issues, including:
  • the sufficiency of ASX’s technological resources, in particular following the ASX market outage on 27 October 2011,
  • the operation of ASX’s conflict handling arrangements, in particular the arrangements it has in place to manage entities with which it has a real or perceived conflict of interest, and any considerations arising from ASX’s new managing director and CEO’s board membership of another ASX-listed company, and
  • ASX’s framework for admitting participants to its markets and clearing and settlement facilities.

Meltdown crisis? Hold the line for 45 minutes!

The ASX found itself waiting on the phone for 45 minutes last year when it sought advice from a help desk after it suffered the biggest system meltdown in its history.
The Australian Securities and Investments Commission's latest market assessment report of the ASX noted how the ASX had never experienced these software issues before, so it contacted its trading system provider, Nasdaq OMX through NOMX's overseas help desk for assistance.
''While contact with NOMX was initiated within 15 minutes of the incident occurring, it took over 45 minutes for a NOMX support person with a requisite understanding of the trading system's underlying code and ASX Group's configuration to be brought in to assist,'' the report noted.
The outage, last October, halted trading for about four hours.
The ASIC report also revealed Bondi as the location as one the ASX's top secret back-up centres. Maybe there was some good surf on October 27 last year.

ISE Files for Second Exchange License


Maple-TMX Group merger clear approval hurdles
Canada's competition watchdog and Ontario's securities regulator on Wednesday approved a CA$3.8 billion (US$3.75 billion) bid by a group of Canadian financial institutions to take over the operator of the Toronto Stock Exchange and merge it with two other exchanges.

Tokyo, Osaka bourses say their merger approved
AFP via Yahoo! News
Japan's two biggest bourses said Thursday they have won regulatory approval for a planned merger in January amid stiff competition from overseas rivals.

Weldon swaps shares for grapes

Mark Weldon nearly quit the job as the boss of New Zealand's stock exchange just two weeks into it but 10 years later he feels it is finally the right time to move on.
A former Olympic swimmer Weldon joined the NZX in June 2002 after 10 years as a corporate high flyer in New York.


The Council of the European Union has adopted a regulation requiring financial firms to clear over-the-counter derivatives contracts through a central clearing counterparty and report them to trade repositories.
...and 238 pages of text here...

MarkitServ and Swift combine forces for FX clearing
MarkitServ has teamed up with Swift to deliver trades from Swift to FX CCPs, via MarkitServ’s FX clearing gateway.


IOSCO Publishes a Report for the G20 on the Credit Default Swap Market
This  report  discusses  those  recent  changes  and  current  trends  in  the  CDS  markets,  and provides  information  from  recent  literature  about  the  trading,  pricing  and  clearing  of  CDS. The report is meant to inform the ongoing regulatory debate and highlight some key policy issues. However, policy recommendations are left for other reports. 
In summary, the amount of CDS trading has continued to increase even after the onset of the financial  crisis  while  standardization  and  risk  management  practices  have  significantly expanded. Trade compression has reduced CDS contracts by tens of trillions dollars. A non-negligible amount of CDS trades are currently being cleared by several central counterparties (CCP) around the world and the number of cleared CDS contracts is expanding.
*** 47 pages here.

12-155MR ASIC releases custodial and depository services report
At the end of 2011, approximately $1.8 trillion of assets of Australian investors was held in custody. This is expected to more than triple over the next 15 years to $6.4 trillion.
Given the role of custodians as key service providers within the financial services industry, areas that a custodian may need to consider include:
  • unauthorised debiting of omnibus accounts
  • stability and safety of IT systems
  • operational risks created by manual and disparate systems
  • whistleblowing culture and framework
  • reporting in relation to suspicious third party valuations
  • breach reporting relating to custodial and investment administration services, and
  • the risks inherent in corporate actions such as share buy-backs and rights issues
For each aforementioned issue, ASIC has highlighted key aspects of ‘good practice’ - in line with its current regulatory guidance.
Report 291 Custodial and Depository services in Australia (REP 291) also foreshadows ASIC’s intention to consult with industry about updating its regulatory guidance for the holding of scheme property. In addition, we are proposing:
  • changes to the financial resource requirements of custodians, and
  • to require responsible entities and other financial product issuers to provide clearer disclosure about the role of custodians in retail marketing material, including product disclosure statements (PDS).

The third package of amendments is the Corporations Amendment Regulation 2012 (No. ) which relates to the best interests obligation and the ban on conflicted remuneration as proposed by the Bills. Specifically, the amendments to the Principal Regulations:
·         allow an agent or employee of an Authorised Deposit-taking Institution to take advantage of a reduced best interests obligation when a client has sought advice on a combination of certain products;
·         prescribe the circumstances when a benefit that relates to more than one already exempt product is not conflicted remuneration;
·         exempt ‘stamping fees’ from the ban on conflicted remuneration; and
·         exempt employee remuneration based on brokerage fees from the ban on conflicted remuneration for market participants. 


While most of us are frequent users of EFT and EFTPOS, there has been no standard payment system for getting data and money to super funds other than cheques.
In 2007 the Reserve Bank of Australia found that the average cost of processing a cheque was more than $7, compared to about $1.20 for a credit card and 67 cents for electronic funds transfer at point of sale (EFTPOS).


Seven new members join SWIFT Board

The seven new Board members are:
·         Yves Baguet, CIO of Clearstream Services, in charge of the IT Development departments, IT operations and IT infrastructure departments. 
·         Mark Buitenhek, Global Head of Payments and Cash Management for ING, also a member of the European Payments Councils’ Plenary.
·         David Cyr ,Senior Vice-President, Payments & Trade Technology & Operations at Royal Bank of Canada.
·         Marcel Jongmans, both CEO of ABN AMRO Global Clearing and Statutory Director and Managing Director of ABN AMRO Clearing Bank NV. 
·         Ulrich Stritzke, Managing Director of Credit Suisse and Head Global Cross Product Processing.
·         Yongli Wang, Executive Director of the Bank of China
·         Bhavesh Zaveri, Country Head Operations and Head Cash Management Products at HDFC Bank, as well as Director at both the National Payment Corporation of India and Director of The Clearing Corporation of India.

GETCO Announces International Appointments
Robert Smith Named Head of Europe.
Farid Moslehi to Lead Asia Effort.
GETCO Announces the Appointment of Jon Ross as Chief Technology Officer

While UBS analysts only see a 20% chance of a "Grexit", they say investors should nevertheless be prepared. In our second article, we look at what the ECB can do, if anything, to stabilize markets in the event of a eurozone breakup. We also report on the annual UBS Financial Institutions Conference, which recently took place in New York.

BNP custody and settlement service goes live
BNP Paribas' new domestic custody and settlement service for Australian and international clients has gone live following its launch in May.

Goldman Sachs prime broker heads to Dutch firm
Amsterdam-based IMC, a prop trading firm, has hired Wim Den Hartog as co-head of its Chicago office, a position which will be made effective on 1 September.


Census 2011: Australia is changing, and fast
The Australian Bureau of Statistics has just released the results of the 2011 Census and they paint a picture of a nation changing positively and very rapidly
The census was conducted in August last year with 9 million dwellings and their 22.8 million inhabitants
Chinese and Indian Australians are now our largest non-anglo heritage groupings and the West Asian language of Punjabi is the fastest growing second language.
Mandarin now the second most popular language, surpassing Italian.

110 years prison for ex-SIB chief
In one of the most extreme prison sentences of its type, the former Chairman of Stanford International bank has been sentenced to 110 years imprisonment in the US for orchestrating a 20-year fraud scheme in which he misappropriated $7 billion

China's massive solar PV target to reinvigorate industry

China has just announced it will quadruple its 2015 target for solar PV. This means it will install more solar in 2015 than the entire world did in 2011. This will revive an industry currently suffering a depressed glut of supply and plant closures.

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