ICE, non binding...and a very merry festive season.

G'day and the very best of the festive season to one and all.

The ICE / NYSE story takes the cake this week. I've only had a look at the headlines but I can't see much on the clearing impact of the deal. Given how well established ICE Clear is I would expect this to put plans for NYSE Euronext derivatives clearing on hold.

Again, deals are structured around the growth sectors. LSE looking at Swapclear and ICE at derivatives. Poor old equities, must be feeling unloved (or at the very least commoditised). Funny thing is, I'm bullish on equities as an oversold asset class.

The essential part of the ASX announcement for OTC plans is...Non-binding.

I’ve also had calls from a couple of agents and one firm that are looking for a mid level clearing “experts”. If you know anyone that is looking to continue in the Clearing field just drop me a line (and or CV) and I’ll simply forward your details to the interested parties. No promises or rewards, just happy to act as a mailbox router.

Anyway, enough from me.

Have a very merry festive season….and amongst all the cheer…have a glass of water too!

Scott. s.riley.mail@gmail.com

www.clearingandsettlement.blogspot.com

Platforms
ICE agrees NYSE Euronext takeover IntercontinentalExchange has agreed to buy NYSE Euronext, its 208-year-old rival, in an $8.2bn deal that will make the energy and commodities bourse one of the world’s largest derivatives markets operators. http://www.ft.com/cms/s/0/41f4d2ec-4a9f-11e2-9650-00144feab49a.html#ixzz2Fj8i0A9p
London Stock Exchange Group 2012 Yearbook The Yearbook explores the breadth of ourdiversified business, from raising capital through to trading, technology and market data. It also includes insightful, opinion-led articles on subjects such as regulation, financial education and the wider role of capital markets. http://www.londonstockexchange.com/about-the-exchange/year-book/year-book-2012.htm

Clearing
LSE may cut offer for LCH.Clearnet by £180m The London Stock Exchange is haggling to change the terms of its agreed €463m (£376m) acquisition of a majority stake in the clearing house LCH.Clearnet, reportedly seeking to reduce the buy-out price by as much €200m. http://www.telegraph.co.uk/finance/markets/9746396/LSE-may-cut-offer-for-LCH.Clearnet-by-180m.html
ASX recruits seven domestic and international banks for OTC clearing initiative ASX announces that seven domestic and international banks in Australia have signed non-binding commitments to help develop ASX's new OTC Interest Rate Derivatives Clearing Service. http://www.finextra.com/News/Announcement.aspx?pressreleaseid=47878&goback=%2Egde_2026241_member_198154416
CCP interoperability consultation paper in the pipeline ESMA (European Securities Markets Authority) has confirmed that the consultation paper is expected to be released on December 20. The December 20 date is dependent on approval being sealed at an internal ESMA board meeting on December 18. ESMA could not release any further details on the consultation paper other than to confirm it will cover interoperability. http://myinvestorcircle.com/news/ccp-interoperability-consultation-paper-pipeline?goback=%2Egde_2026241_member_196871630
Oslo Børs VPS Holding: Agreement to sell Oslo Clearing to SIX group Oslo Børs VPS Holding has agreed to sell 100% of Oslo Clearing to Swiss SIX group at a price of approximately NOK 180 million, assuming freely available cash or book equity to amount to about NOK 120 millions. http://www.oslobors.no/ob_eng/Oslo-Boers/About-us/Press-room/Press-releases

CME Clearing Europe expands its metals offering CME Clearing Europe, has added two new over-the-counter (OTC) iron ore contracts for clearing. This expansion of products is in line with CME Clearing Europe's commitment to helping customers manage their risk associated with China's construction industry. These new products build on CME Group's virtual steel mill suite of products. http://www.ftseglobalmarkets.com/news/cme-clearing-europe-expands-its-metals-offering.html?goback=%2Egde_2026241_member_196934720
ICSD row threatens European collateral GC Pooling baskets are currently traded and cleared through Eurex but only the assets held by Clearstream, the international central securities depository (ICSD) owned by Eurex’s parent firm Deutsche Börse Group, can be used for these transactions. http://www.thetradenews.com/news/Asset_Classes/Derivatives/ICSD_row_threatens_European_collateral.aspx
Wall Street finds a foreign detour around U.S. derivatives rules

"What banks are looking at is: can they put their business with non-U.S. counterparties through a London entity, and will the regulators in the UK accept all the business coming through those entities?" said Mark Austen, chief executive of the Asia Securities Industry & Financial Markets Association. Lawyers say the answer may be yes, for now - at least until foreign regulators, also mindful of avoiding another financial crisis, catch up with Washington and impose similar rules. Gareth Old, a lawyer at Clifford Chance in New York, said the CFTC had made it clear that any swaps traded with the foreign affiliate of a U.S. bank would not count toward the $8 billion "de minimis" threshold for identifying a swap dealer. "This is a very, very important exclusion. It means that non-U.S. financial institutions can continue to trade with at least a unit of a U.S. bank ... without running the risk of being a U.S. person," Old said http://uk.news.yahoo.com/wall-street-finds-foreign-detour-around-u-derivatives-211144120--sector.html?.tsrc=yahoo
Policy
DTCCMEDIA STATEMENT ON CME REQUESTED DCO RULE CHANGE AND AMENDMENTS TO CFTC REPORTING FAQ
New York, NY, November 29, 2012 -- The U.S. Commodity Futures Trading Commission’s (“CFTC”) rules and interpretations of the Dodd Frank Act have made it clear for nearly a year that clearinghouses must provide open access and that data repositories cannot bundle other services as the CME Group Inc. (“CME”) proposes. In fact, the CME is proposing that as a condition for using their clearing services, market participants must agree to report their trade data to the clearinghouse's own captive swap data repository (SDR). http://www.dtcc.com/news/press/releases/2012/cme_statement.php

Participants

Macquarie gains in broker battle The survey highlighted yet another fall in the average size of commissions paid per institution, with the figure declining for a sixth year in a row to just $4.8 million. The average commission has now fallen 66 per cent since 2008, when average commissions topped $10.9m. http://www.theaustralian.com.au/business/financial-services/macquarie-gains-in-broker-battle/story-fn91wd6x-1226539976523

Broker Newedge says may split execution, clearing (Reuters) - French broker Newedge, owned by Credit Agricole (CAGR.PA) and Societe Generale (SOGN.PA), said it was considering a split of its asset execution and clearing businesses as part of a wider restructuring aimed at making it more competitive. The derivatives specialist, which has been up for sale for the past year, also plans to "simplify" its activities and geographical reach to focus on core strengths. http://www.reuters.com/article/2012/12/13/us-newedge-restructuring-idUSBRE8BC15W20121213
Stuff
RWC 2015 Draw http://www.rugbyworldcup.com/

6 Simple Rituals To Reach Your Potential Every Day1.
Drink a glass of water when you wake up. Your body loses water while you sleep, so you’re naturally dehydrated in the morning.
2. Define your top 3.. What’s your "Top 3" today?
3. The 50/10 Rule. Solo-task and do more faster by working in 50/10 increments. Use a timer to work for 50 minutes on only one important task with 10 minute breaks in between.
4. Move and sweat daily. Regular movement keeps us healthy and alert.
5. Express gratitude. Gratitude fosters happiness.
6. Reflect daily. Bring closure to your day through 10 minutes of reflection.
http://www.fastcompany.com/3003586/6-simple-rituals-reach-your-potential-every-day
An asset heavy life consumes - space, time and money. http://www.businessinsider.com/mary-meeker-2012-internet-trends-year-end-update-2012-12