G'day All,
Busy days relocating to the UK and getting the feet back on the ground. I used to "push" the blog out to those on my MS Outlook distribution list, however I have now migrated over to Android (in an attempt to be more mobile). So if you are picking this up (via LinkedIn or a web site feed), please let me know if I need to update or amend my distribution list.
Am I missing the ocean swimming? Absolutely! In the meanwhile I've taken up running in London. First couple of attempts were alright...then the temperature started to drop and I'd get back from a run with my fingers curled into a claw...which would leave me stabbing the key at the door trying to get in. Since then I've invested in a pair of "running" gloves. (coincidentally I notice these gloves work just as well when I break into a walk!)
As for London, it’s amazing how much is going on. The big trends I notice are in the clearing infrastructure space and the collateral securitisation space. The transformation and mobilisation of collateral will be the next big industry challenge.
In the clearing space I think this will play out more about the liquidity of capital (e.g. CME / Euroclear story) rather than the eligible collateral criteria (e.g. Nasdaq story).
As expected, LCH looks to extend the swapclear franchise down under. I still don't anticipate this initiative will extend to Aussie equities (primarily due to wallet size of the Aussie market).
There has been some debate about the Royal hoax call from Aussie radio station 2dayFM. Obviously despicable. Personally I think the DJs should at least face some sort of serious charge…even manslaughter. Then they can hold out their defence that they couldn’t have reasonably expected a life to be lost. That fact that these DJs have now ‘disappeared’ to avoid any public backlash irks me. They were all too quick to gloat about their success.
Someone in the UK mentioned the Samaritans had said that suicide was a culmination of events, not usually with a single trigger. I haven’t seen the story and I don’t think it is any type of defence. I can just imagine the crescendo of events from tweets to broadsheets.
My brother mentioned that hoaxes and pranks have long been banned in the mining industry. Simple…there is always a fall guy (person).
The other view I resonate with is that these DJs don’t have the skills and abilities to entertain the audience with their own wit…so they resort to ridiculing others (and the tragedy being the best hoaxes are taken up by the most trusting…which is kinda what you want from a hospital).
I’m delighted to be boycotting anything to do with:
http://www.
(Channel 7, 2day FM, Triple M etc.)
Enough of a rant! Wishing one and all the festive cheer of the season (and right now, that means retail madness).
Enjoy the jingles and sing alone….just ignore Aussie DJs!
Scott.
s.riley.mail@gmail.com
clearingandsettlement.
Platforms
NASDAQ OMX SIGNS BURSA MALAYSIA TO TECH; AGREES TO BUY THOMSON REUTERS' PR AND IR UNITS
Bursa Malaysia has selected Nasdaq OMX's X-Stream Inet technology to power its securities market trading.
Full story: http://www.finextra.com/News/
NASDAQ OMX EXPANDS ITS EUROPEAN DERIVATIVES PUSH
Nasdaq OMX will buy a 25% stake in The Order Machine and acquire an option for an additional 25.1%.
Smart Execution has helped TOM secure a market share of approximately 15 percent for single stock options in the Netherlands. The Netherlands is one of the most developed options markets in Europe with a trading volume of 75 million contracts in 2011.
NASDAQ OMX will act as market operator for TOM, and will provide a Genium Inet based trading platform in London, according to an 8 year contract the two firms have signed. The partnership also builds on TOM's current usage of NASDAQ OMX-powered market technology, specifically, Marketplace for Hire (M4H), which is a multi-market, multi-asset marketplace solution for trading.
http://finance.yahoo.com/news/
ASIC CHOOSES FIRST DERIVATIVES MARKET SURVEILLANCE SYSTEM
The Australian Securities and Investment Commission (Asic) has selected First Derivatives to design, build and host a new market surveillance system.
http://www.finextra.com/News/
Clearing
CCPS DO NOT CONFORM
Stock, options and futures exchanges own 60 percent of recognised CCPs, said the report. “This ownership structure makes CCP activity part of the strategic direction of the exchange itself; decisions made at the exchange level trickle down as opposed to CCP decisionstrickling up.”
Boards of industry representatives or outside parties run the remaining 40 percent.
http://www.
RELIEF FOR DEALERS AS BASEL REINS IN CAPITAL FOR CLEARED TRADES.
Dealers were also pleased to see the paper clarify the treatment of bilateral exposures to a CCP. A member's own cleared exposures will attract a weight of 2%, but the bank will not have to apply the sameweight to trades it has cleared on behalf of clients unless it also guarantees clients against losses in the event of a CCP default. Most do not – meaning client clearing portfolios will not be bundled in with a member firm's own trades when calculating capital for trade exposure to a CCP.
Clearing members do still have to treat client trades as bilateral exposures, and calculate capital accordingly – including Basel III's credit value adjustment (CVA) charge for derivatives counterparty risk. Those exposures will be mitigated by the initial and variation margin clients post to their clearing firm, but dealers had worried the costs could still stack up. The new rules reduce that effect by allowing clearing members to assume a defaulting client's positions can be closed out in five days rather than 10, as is the case for uncleared trades.
http://www.risk.net/risk-
MARGIN REQUIREMENTS ON NON-CENTRALLY CLEARED SWAPS COULD INCREASE
RISK, ACCORDING TO ISDA ANALYSIS
NEW YORK, November 27, 2012 – The International Swaps and Derivatives Association, Inc. (ISDA), today published an analysis of initial margin (IM) requirements for non-centrally cleared OTC derivativesunder current regulatory proposals.
http://www2.isda.org/news/
Useful comments on this press release at:
http://www.secfinmonitor.com/
LCH.CLEARNET EXTENDS OTC CLEARING TO DOWN UNDER
Four of Australia's five domestic banks have submitted letters of intent to use LCH.Clearnet's SwapClear to clear interest rate swaps.
http://www.
NASDAQ SHAKES UP ELIGIBLE COLLATERAL
NASDAQ OMX Derivatives Markets is making a number of changes to its list of eligible collateral,
http://www.
CME CLEARING EUROPE GETS ON EUROCLEAR’S COLLATERAL HIGHWAY
Euroclear Bank and CME Clearing Europe have signed an agreement to help mutual clients fulfil their collateral obligations to meet initial margin requirements at CME Clearing Europe...
http://www.
Policy
NEW RULES FOR DARK POOLS AS REGULATORS CRACK DOWN ON HIGH-FREQUENCY TRADING
A new rule on extreme trading will take effect as part of a welter of regulatory changes through to June 2014, by which time all high-frequency trading offices in Australia must have "kill switches" installed to prevent rogue algorithmic trades disrupting the market.
The rules include a requirement, to come in force from June, that brokers must demonstrate a "meaningful price improvement" before they can conduct a trade away from the public or "lit" market.
http://www.theaustralian.com.
A BLUEPRINT FOR A DEEP AND GENUINE ECONOMIC AND MONETARY UNION: Launching a European Debate
The Communication, was presented by its President at a press conference on 28 November 2012 as "the Commission's contribution to the report of the 'four presidents' on the next steps for economic and monetary union." It provides the Commission's vision for a strong and stable architecture in the financial, fiscal, economic and political domains of the currency union.
Section 1 provides background information on the EMU,
Section 2 looks at the measures that have been taken so far to deal with the crisis in the eurozone,
Section 3 puts forward proposals the Commission thinks necessary for a deep and genuine EMU and
Section 4 considers questions of democratic legitimacy and accountability that arise in the context of a more integrated currency union.
http://ec.europa.eu/
UK OBSERVATIONS
ECONOMIC AND MONETARY UNION - EUROPEAN SCRUTINY COMMITTEE
Conclusion
1.27 However we are deeply concerned about the possible implications for the UK of what is proposed. In addition to the issue of a threat to the single market for financial services, already exemplified by the current Banking Union proposals….
http://www.publications.
REMARKS BY DAVID WRIGHT: SECRETARY GENERAL OF IOSCO
- “there will be many more big capital and securities markets in the world because they are needed for economic development which is powering ahead in Asia, parts of Latin America and beginning also in Africa…. Brazil, India, China, Indonesia, Singapore, Hong Kong, Russia, Turkey and Mexico to name a few will have much bigger markets than today.”
- “all the fast growing regions of the world fully realize that they cannot rely on the international banking system to support their economic development ambitions.”
- “banks will be permanently restrained in the future with much higher levels of capital and lower leverage.”
- “These trends taken together, mean a major global expansion of market based financing and securities markets is going to happen – replicating in many ways the U.S financial model.”
http://iosco.org/library/
CHALLENGES FOR CENTRAL BANKING - MONETARY POLICY AND FINANCIAL STABILITY
Glenn Stevens
Governor, RBA
http://www.rba.gov.au/
Participants
UBS 'rogue trader' Adoboli found guilty of one count of fraud
http://www.finextra.com/News/
https://maps.google.co.uk/
(I though the trial would be in the Square Mile...but it's just on the other side of the river Thames)
Stuff
We’re getting a new Euro!
http://www.ecb.int/euro/
(No images until 10th Jan)
The number of Euronotes in circulation has doubled in a decade...
http://www.ecb.int/stats/euro/
Busy days relocating to the UK and getting the feet back on the ground. I used to "push" the blog out to those on my MS Outlook distribution list, however I have now migrated over to Android (in an attempt to be more mobile). So if you are picking this up (via LinkedIn or a web site feed), please let me know if I need to update or amend my distribution list.
Am I missing the ocean swimming? Absolutely! In the meanwhile I've taken up running in London. First couple of attempts were alright...then the temperature started to drop and I'd get back from a run with my fingers curled into a claw...which would leave me stabbing the key at the door trying to get in. Since then I've invested in a pair of "running" gloves. (coincidentally I notice these gloves work just as well when I break into a walk!)
As for London, it’s amazing how much is going on. The big trends I notice are in the clearing infrastructure space and the collateral securitisation space. The transformation and mobilisation of collateral will be the next big industry challenge.
In the clearing space I think this will play out more about the liquidity of capital (e.g. CME / Euroclear story) rather than the eligible collateral criteria (e.g. Nasdaq story).
As expected, LCH looks to extend the swapclear franchise down under. I still don't anticipate this initiative will extend to Aussie equities (primarily due to wallet size of the Aussie market).
There has been some debate about the Royal hoax call from Aussie radio station 2dayFM. Obviously despicable. Personally I think the DJs should at least face some sort of serious charge…even manslaughter. Then they can hold out their defence that they couldn’t have reasonably expected a life to be lost. That fact that these DJs have now ‘disappeared’ to avoid any public backlash irks me. They were all too quick to gloat about their success.
Someone in the UK mentioned the Samaritans had said that suicide was a culmination of events, not usually with a single trigger. I haven’t seen the story and I don’t think it is any type of defence. I can just imagine the crescendo of events from tweets to broadsheets.
My brother mentioned that hoaxes and pranks have long been banned in the mining industry. Simple…there is always a fall guy (person).
The other view I resonate with is that these DJs don’t have the skills and abilities to entertain the audience with their own wit…so they resort to ridiculing others (and the tragedy being the best hoaxes are taken up by the most trusting…which is kinda what you want from a hospital).
I’m delighted to be boycotting anything to do with:
http://www.
(Channel 7, 2day FM, Triple M etc.)
Enough of a rant! Wishing one and all the festive cheer of the season (and right now, that means retail madness).
Enjoy the jingles and sing alone….just ignore Aussie DJs!
Scott.
s.riley.mail@gmail.com
clearingandsettlement.
Platforms
NASDAQ OMX SIGNS BURSA MALAYSIA TO TECH; AGREES TO BUY THOMSON REUTERS' PR AND IR UNITS
Bursa Malaysia has selected Nasdaq OMX's X-Stream Inet technology to power its securities market trading.
Full story: http://www.finextra.com/News/
NASDAQ OMX EXPANDS ITS EUROPEAN DERIVATIVES PUSH
Nasdaq OMX will buy a 25% stake in The Order Machine and acquire an option for an additional 25.1%.
Smart Execution has helped TOM secure a market share of approximately 15 percent for single stock options in the Netherlands. The Netherlands is one of the most developed options markets in Europe with a trading volume of 75 million contracts in 2011.
NASDAQ OMX will act as market operator for TOM, and will provide a Genium Inet based trading platform in London, according to an 8 year contract the two firms have signed. The partnership also builds on TOM's current usage of NASDAQ OMX-powered market technology, specifically, Marketplace for Hire (M4H), which is a multi-market, multi-asset marketplace solution for trading.
http://finance.yahoo.com/news/
ASIC CHOOSES FIRST DERIVATIVES MARKET SURVEILLANCE SYSTEM
The Australian Securities and Investment Commission (Asic) has selected First Derivatives to design, build and host a new market surveillance system.
http://www.finextra.com/News/
Clearing
CCPS DO NOT CONFORM
Stock, options and futures exchanges own 60 percent of recognised CCPs, said the report. “This ownership structure makes CCP activity part of the strategic direction of the exchange itself; decisions made at the exchange level trickle down as opposed to CCP decisionstrickling up.”
Boards of industry representatives or outside parties run the remaining 40 percent.
http://www.
RELIEF FOR DEALERS AS BASEL REINS IN CAPITAL FOR CLEARED TRADES.
Dealers were also pleased to see the paper clarify the treatment of bilateral exposures to a CCP. A member's own cleared exposures will attract a weight of 2%, but the bank will not have to apply the sameweight to trades it has cleared on behalf of clients unless it also guarantees clients against losses in the event of a CCP default. Most do not – meaning client clearing portfolios will not be bundled in with a member firm's own trades when calculating capital for trade exposure to a CCP.
Clearing members do still have to treat client trades as bilateral exposures, and calculate capital accordingly – including Basel III's credit value adjustment (CVA) charge for derivatives counterparty risk. Those exposures will be mitigated by the initial and variation margin clients post to their clearing firm, but dealers had worried the costs could still stack up. The new rules reduce that effect by allowing clearing members to assume a defaulting client's positions can be closed out in five days rather than 10, as is the case for uncleared trades.
http://www.risk.net/risk-
MARGIN REQUIREMENTS ON NON-CENTRALLY CLEARED SWAPS COULD INCREASE
RISK, ACCORDING TO ISDA ANALYSIS
NEW YORK, November 27, 2012 – The International Swaps and Derivatives Association, Inc. (ISDA), today published an analysis of initial margin (IM) requirements for non-centrally cleared OTC derivativesunder current regulatory proposals.
http://www2.isda.org/news/
Useful comments on this press release at:
http://www.secfinmonitor.com/
LCH.CLEARNET EXTENDS OTC CLEARING TO DOWN UNDER
Four of Australia's five domestic banks have submitted letters of intent to use LCH.Clearnet's SwapClear to clear interest rate swaps.
http://www.
NASDAQ SHAKES UP ELIGIBLE COLLATERAL
NASDAQ OMX Derivatives Markets is making a number of changes to its list of eligible collateral,
http://www.
CME CLEARING EUROPE GETS ON EUROCLEAR’S COLLATERAL HIGHWAY
Euroclear Bank and CME Clearing Europe have signed an agreement to help mutual clients fulfil their collateral obligations to meet initial margin requirements at CME Clearing Europe...
http://www.
Policy
NEW RULES FOR DARK POOLS AS REGULATORS CRACK DOWN ON HIGH-FREQUENCY TRADING
A new rule on extreme trading will take effect as part of a welter of regulatory changes through to June 2014, by which time all high-frequency trading offices in Australia must have "kill switches" installed to prevent rogue algorithmic trades disrupting the market.
The rules include a requirement, to come in force from June, that brokers must demonstrate a "meaningful price improvement" before they can conduct a trade away from the public or "lit" market.
http://www.theaustralian.com.
A BLUEPRINT FOR A DEEP AND GENUINE ECONOMIC AND MONETARY UNION: Launching a European Debate
The Communication, was presented by its President at a press conference on 28 November 2012 as "the Commission's contribution to the report of the 'four presidents' on the next steps for economic and monetary union." It provides the Commission's vision for a strong and stable architecture in the financial, fiscal, economic and political domains of the currency union.
Section 1 provides background information on the EMU,
Section 2 looks at the measures that have been taken so far to deal with the crisis in the eurozone,
Section 3 puts forward proposals the Commission thinks necessary for a deep and genuine EMU and
Section 4 considers questions of democratic legitimacy and accountability that arise in the context of a more integrated currency union.
http://ec.europa.eu/
UK OBSERVATIONS
ECONOMIC AND MONETARY UNION - EUROPEAN SCRUTINY COMMITTEE
Conclusion
1.27 However we are deeply concerned about the possible implications for the UK of what is proposed. In addition to the issue of a threat to the single market for financial services, already exemplified by the current Banking Union proposals….
http://www.publications.
REMARKS BY DAVID WRIGHT: SECRETARY GENERAL OF IOSCO
- “there will be many more big capital and securities markets in the world because they are needed for economic development which is powering ahead in Asia, parts of Latin America and beginning also in Africa…. Brazil, India, China, Indonesia, Singapore, Hong Kong, Russia, Turkey and Mexico to name a few will have much bigger markets than today.”
- “all the fast growing regions of the world fully realize that they cannot rely on the international banking system to support their economic development ambitions.”
- “banks will be permanently restrained in the future with much higher levels of capital and lower leverage.”
- “These trends taken together, mean a major global expansion of market based financing and securities markets is going to happen – replicating in many ways the U.S financial model.”
http://iosco.org/library/
CHALLENGES FOR CENTRAL BANKING - MONETARY POLICY AND FINANCIAL STABILITY
Glenn Stevens
Governor, RBA
http://www.rba.gov.au/
Participants
UBS 'rogue trader' Adoboli found guilty of one count of fraud
http://www.finextra.com/News/
https://maps.google.co.uk/
(I though the trial would be in the Square Mile...but it's just on the other side of the river Thames)
Stuff
We’re getting a new Euro!
http://www.ecb.int/euro/
(No images until 10th Jan)
The number of Euronotes in circulation has doubled in a decade...
http://www.ecb.int/stats/euro/
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