CXA starts Fragulating ASX, NYSE DB, HK on and off CPs, Golden age of inflation....Dawny & it's just not cricket.

Well, it’s not often I get a reminder to push the blog out from anxious readers....but it looks like I totally overlooked the cricket.

Bloke goes to a lady of the night and says 'I’d like to be dominated, what can you do for me?'
She says, ‘Mate, for AU$100, I can do utter domination and total humiliation.’
'Great' says he, 'so what do I get for my AU$100?'
She replies 'a baggy green cap and a white shirt'

For those non cricket followers you can see plenty of baggy greens at....

http://cricket.com.au/

At least this is lighter reading that the first test result.

Thank you so much to those generous South Africans that volunteered to arrange some extra tests...given that the Aussies can’t manage to play for 5 days...

Meanwhile, I’ll be turning my attention to the Dawny swim this Sundee.

http://www.oceanswims.com/Events.asp?EventID=275

Saturday I need to get back on the bike. We’ve booked a little father and son adventure in NZ:

4^th – 11^th Jan 2012.

http://www.otagorailtrail.co.nz/index.php?option=com_content&task=view&id=33&Itemid=48

First week of full trading for CXA. Depending on what and where you measure anything from 0.5% to 1.5% market share.

NYSE / DB remedies? I hope it’s just this press release that is scant on details. Who cares about 3^rd party access to a CCP? The point is 3rd party access to the trade feed. I hope that is what they mean.

LSE taking MF Global’s stake is a nice exit for the administrators. Book that deal at 21 euros!

Couple of CPs (Consultation Papers) I missed in HK on exchange and OTC clearing.

I like SwapBox. Euroclear should be doing more of these industry / utility services. I hope their pricing is utility sized too!

Now the central banks are piling into gold? That’s it, inflation is coming. Austerity is too hard and debt too big so a nice period of inflation should help to remove some of the debt mountain. Now, I’m betting the house on inflation booming. Any other good investment strategies for me?

ASIC consults on research separation (the old softing issue). Gotta be done in my view. Commoditised and transparent.

Virgin gets Northern rock for a 747. Funny.

For those that want a break from C&S, I recommend whats wrong with agriculture.

And as for the Euro? She’ll be right mate, it’s just a bit of a squeeze right now.

Piccie from:

http://www.macrobusiness.com.au/2011/11/chart-of-the-day-euro-probability/?utm_source=Media+List&utm_campaign=ae3fab70c7-RSS_DAILY_MAILCHIMP_CAMPAIGN&utm_medium=email

Another week flies by.

Have a great w/end all.

S

s.riley.mail@googlemail.com
http://clearingandsettlement.blogspot.com/

Platforms

Australian Exchange: Component Failed on Primary, Backup Systems

The Australian Securities Exchange said an electronic component involved in broadcasting market messages failed on its primary and backup trading systems, leading to its four-hour outage on October 27.

http://www.securitiestechnologymonitor.com/news/asx-component-failed-october-27-outage-29548-1.html?ET=securitiesindustry:e3029:171544a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=SIN_DailyClose__111411

Initial ASX Circular on outage:

https://www.asxonline.com/intradoc-cgi/groups/trading_and_market_information/documents/communications/asx_031961.pdf

ASX Ltd. says it will begin offering transactions in the $1 trillion Australian managed funds market on April 15 next year.

http://www.iandtnews.com.au/homepage-featured-posts/asx-to-offer-managed-funds

Aussie Fragmentation.

http://fragmentation.fidessa.com/australia/

DEUTSCHE BÖRSE AND NYSE EURONEXT TO SHED BUSINESSES TO WIN EU APPROVAL FOR MERGER

Deutsche Börse and Nyse Euronext are proposing to divest their overlapping equity options business across Europe and open up third party access to Eurex Clearing in an effort to win EU approval for their $9 billion merger deal.

They have also agreed to grant unprecedented third-party access to Eurex Clearing for interest rate and equity index derivatives on a "fair, reasonable and non-discriminatory basis" and include cross margining.

More on this story: http://www.finextra.com/news/fullstory.aspx?newsitemid=23176

Shanghai exchange is ready to let foreign issuers sell shares
The Shanghai Stock Exchange is prepared to allow foreign companies to list on the second-largest equity market in the world. Trading in foreign companies' shares should start "as soon as possible when the time is ripe", said Xu Ming, an executive at the exchange. "The internationalisation of the securities market will benefit the whole nation and overseas companies are highly motivated." Bloomberg (14 Nov.)

EGYPTIAN EXCHANGE LAUNCHES NEW TRADING PLATFORM

http://www.finextra.com/news/announcement.aspx?pressreleaseid=42042

Clearing

LSE makes approach for MF's LCH stake

MF Global owns just under 2% of LCH, and administrators at KPMG are looking for a quick sale of the stake as they look to recoup significant proceeds from the broking firm.

The LSE's offer, possibly available at the same price as its EUR21-a-share bid for 51% of LCH, may be designed to prevent the stake falling into the hands of a counterbidder for the clearing house.

http://www.marketwatch.com/story/lse-makes-approach-for-mfs-lch-stake-report-2011-11-14

BM&FBOVESPA SELECTS CALYPSO TO REGISTER AND CLEAR OTC DERIVATIVESS

http://www.finextra.com/news/announcement.aspx?pressreleaseid=42046

LCH.CLEARNET BEGINS CLEARING FOR TURQUOISE

http://www.finextra.com/news/announcement.aspx?pressreleaseid=42045

Consultation Paper on HKEx Clearing House Risk Management Reform Measures

http://www.hkex.com.hk/eng/newsconsul/mktconsul/marketconsultation.htm

73 page paper here:

http://www.hkex.com.hk/eng/newsconsul/mktconsul/Documents/cp201107.pdf

Consultation paper on the proposed regulatory regime for the over-the-counter derivatives market in Hong Kong

The Hong Kong Monetary Authority (the "HKMA") and Securities and Futures Commission (the "SFC") invite market participants and interested parties to submit written comments on the Consultation paper on the proposed regulatory regime for the over-the-counter derivatives market in Hong Kong (available as Acrobat PDF file) on or before 30 November 2011.

https://www.sfc.hk/sfcConsultation/EN/sfcConsultMainServlet?name=OTCReg

55 page paper at:

https://www.sfc.hk/sfcConsultation/EN/sfcConsultFileServlet?name=otcreg&type=1&docno=1

'Swapbox' Clears Short Positions in Greek Bonds

Euroclear Bank has created a “swapbox” based on algorithms which pair off short positions in Greek government bonds with long positions of the same value.

http://www.securitiestechnologymonitor.com/news/euroclear-debt-crisis-swapbox-greek-bonds-29551-1.html?ET=securitiesindustry:e3029:171544a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=SIN_DailyClose__111411

Policy

Central banks accelerate gold purchases
Central banks more than doubled their purchases of gold in the third quarter compared with the previous quarter, when gold buying was already inflated, according to the World Gold Council. "Central-bank buying was a highlight of the quarter. Statistics this year have been remarkable," said Marcus Grubb, the council's managing director of investment. The Wall Street Journal (tiered subscription model) (18 Nov.), Financial Times (tiered subscription model) (17 Nov.)

11–255MR ASIC proposals for research houses

ASIC today released a consultation paper proposing research report providers, including research houses, separate their business units as a strategy to manage conflicts of interest as part of moves to improve confidence in the independence and quality of research reports.
This proposed segregation would involve strict and formal physical and electronic separation between ancillary business units such as consulting and funds management services and the research business.

http://www.asic.gov.au/asic/asic.nsf/byHeadline/11%E2%80%93255MR%20ASIC%20proposals%20for%20research%20houses?opendocument

Stuff

Whats wrong with Agriculture?

As it now stands, we have holdings in the low thousands of acres, with average revenue of less than $400,000 per annum on assets over $2.5 million – barely one-third of the revenue of a modern convenience store that has a few hundred thousand dollars invested, and where

the franchisee takes home more income each year than the average farmer.

There has to be a new approach: the old one isn’t working anymore.

http://www.ibisworld.com.au/images/marketing/WhatFutureforAgriculture-Nov2011.pdf

The British Treasury sold Northern Rock, the "good" part of a failed British bank that was taken into public ownership, to Virgin Money for £747m ($1.2 billion).

The auction to find a buyer for EMI concluded with the music label being split in two. Universal Music is to pay $1.9 billion for EMI's recorded-music division, and a consortium which includes Sony Music and the estate of Michael Jackson will buy EMI's music-publishing unit for $2.2 billion.

Imagination is more important than knowledge."

--Albert Einstein,
German-born physicist

News: ASX ooops, CXA Ahhh, TMX, DTCC data x2, farewell MFG.....Heron Sharks, Easter Eggs

Well, Heron Island was a great swim. Inaugural is the word. Swimming around an Island, you’re always going to be against the current one way or another, but to do it with king tides...there was some hard graft to be done along the front of the Island. Still, high tide means more water over the reef and more space for sharks to disperse. The snap (on the blog) is me with the sharks (thought you might prefer that to the image of an old tyre being washed up onto the shore after an hour at sea). I’ve come to the conclusion that sharks are 10% bigger under the water and 10% bigger again when you’re the only one in the water with them.

A great swim and apart from being whipped by those pesky Olympians, not a bad result.

http://www.oceanswims.com/images/downloads/heronres113.html

My kinda Easter egg:

Search Google for “recursion” and click the “Did you mean?” suggestion. Or call up the Sydney Opera House in Google Earth and then spin around to the waterfront side; a late, great TV celebrity waits for you there. Or ask Google Maps to give you the directions from Japan to China and marvel at Google’s suggestion for getting across the Pacific (step number 42).

http://www.scientificamerican.com/article.cfm?id=the-jokes-on-your-computer&WT.mc_id=SA_CAT_TECH_20111101

See Step 42 at:

http://maps.google.com.au/maps?q=Japan+to+China&saddr=Japan&daddr=China&hl=en&sll=-25.335448,135.745076&sspn=53.947846,60.292969&geocode=FRhxKAIdfJI9CCkvGX_XD05nNDFEUmZ81HVC9Q%3BFZw0IwIdReU1BinBQsblZI5QMTFvNp80fKodlQ&vpsrc=0&safe=high&t=m&z=4

Maple gets it’s TMX.

But I’ve dropped the ball on watching what’s happening with LME. Any insights appreciated.

BATS / CXE moves forward.

ASX oops....and CXA Ahhh.

DTCC having two data warehouses is just nuts. And saying just knowing US exposures is OK is also nuts in a world where we’re looking for consolidated views on exposures.

EMCF published interoperability service description...and welcomes Hugh.

MF Global is sad on so many levels. A firm going down because it didn’t stick with it’s knitting (commodities to sovereign debt is a bit of a jump), for the clients....but also for sooo many suppliers (be it PATS or any other). Then there is a displacement of all those people. The ED&F Man shop has had some good people through its doors. No-one likes to see exits in the style of Lehman, Madoff or MFG. Thoughts to staff, customers and suppliers.

Last week end of road training before the JPM corporate cup next week.

Good week end all,

Scott.

s.riley.mail@googlemail.com

http://clearingandsettlement.blogspot.com/

Platforms

TMX GROUP BOARD BACKS MAPLE TAKEOVER BID The board of TMX Group has finally recommended that shareholders accept a C$3.8 billion takeover offer from a consortium of Canadian banks and pension funds.

Full story: http://www.finextra.com/news/fullstory.aspx?newsitemid=23108

BATS EUROPE MIGRATES TO EQUINIX DATA CENTRE

Binary Order Entry offers a new optional order entry method for participants to interact with the BATS Europe platform that further reduces latency. The full suite of BATS Europe order types will be available using Binary Order Entry, as well as the standard FIX protocol format.

http://www.finextra.com/news/announcement.aspx?pressreleaseid=41702

An Interview with Jeff Olsson, Group Executive, Technology, ASX

18/Oct/11

We have reduced latency from around 30 milliseconds five years ago to around 300 microseconds in ASX Trade at present (a hundredfold reduction). When the high speed matching facility (Purematch) goes live in Q4 this will be further reduced to around 100 microseconds.

The project is progressing according to the project schedule and still on track for the first system to go live at the end of the year (ASX Trade)

http://www.fst.net.au/Whoswho.aspx?id=471&op=au

ASX sheds light on recent outage, delays move to new data centre

03/Nov/11

ASX Limited has revealed the extent of the problems that shut down its ASX Trade platform last week for four hours and reportedly delayed its move to a new $32 million data centre in Gore Hill by three months.

http://technologyspectator.com.au/industry/financial-services/asx-sheds-light-recent-outage-delays-move-new-data-centre

Traders furious as glitch halts bourse

28/Oct/11

THE Australian Securities Exchange was working last night to repair the damage to its reputation after its recently installed trading system, run by the US exchange operator Nasdaq OMX, suffered its second setback in less than a year, causing a four-hour shutdown yesterday.

The outage also coincided with the final settlement day for October series exchange-traded options, leaving options traders furious.

http://www.smh.com.au/business/traders-furious-as-glitch-halts-bourse-20111027-1mm5o.html

Chi-X Australia reports successful debut

Chi-X Australia, the alternative trading platform owned by exchange operator and technology provider Chi-X Global, traded a total of A$3.84 million across the six stocks available on the first day of its soft launch, with no reported technical hitches.

http://www.thetradenews.com/trading-venues/exchanges/6979

TERAEXCHANGE PLANS CENTRAL LIMIT ORDER BOOK FOR SWAPS AND OTC CLEARED DERIVATIVES

http://www.finextra.com/news/announcement.aspx?pressreleaseid=41715

http://www.teraexchange.com/

ERIS EXCHANGE RECEIVES CFTC APPROVAL TO BECOME A DESIGNATED CONTRACT MARKET AND ANNOUNCES THE LAUNCH OF BENCHMARK FORWARD STARTING INTEREST RATE SWAP FUTURES

http://www.erisfutures.com/sites/default/files/Eris_Exchange_Press_Release_10_31_11_0.pdf

MALTA STOCK EXCHANGE SIGNS FOR XETRA E-TRADING PLATFORM The Malta Stock Exchange is set to roll out Deutsche Börse's electronic trading system, Xetra.

Full story: http://www.finextra.com/news/fullstory.aspx?newsitemid=23119

Dark Pools Don't See Bright Future in Canada

Despite several dark pool launches north of the border this year, growth of the sector in Canada could be impeded by stiff regulation and a well-entrenched 'upstairs market.'

http://www.advancedtrading.com/crossingnetworks/231600189?cid=nl_wallstreettech_daily

Clearing

DTCC to Create A Second Data Warehouse for Swaps

The Depository Trust & Clearing Corp. has asked the Commodity Futures Trading Commission to register a new storehouse called the DTCC Data Repository that will keep track of details on transactions occurring only in the United States in different classes of derivative swaps.
DTCC does have a global swaps repository called Trade Information Warehouse. But a provision of the Dodd-Frank Wall Street Reform Act is leading to the creation of a separate warehouse of data on U.S.-only swaps.

http://www.securitiestechnologymonitor.com/news/swaps-dtcc-registration-cftc-29475-1.html?ET=securitiesindustry:e2982:171544a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=STM_BNA_08302010_110111

HUGH BROWN JOINS EMCF AS DIRECTOR OF UK MARKETS

http://www.finextra.com/news/announcement.aspx?pressreleaseid=41811

EMCF INTEROPERABILITY SERVICE DESCRIPTION

In anticipation of the introduction of interoperability for Chi-X and BATS in January of next year we have produced a service description for your convenience.

The guideline contains practical and operational information about the set-up and processes around interoperability. The guideline can be found on our website under ‘projects’ and ‘interoperability’.

http://www.emcf.com/upload/uploads/111025%20Service%20description%20interoperability%20v1%20final.pdf

Participants

11-237AD MF Global
Tuesday 1 November 2011
ASIC is aware that companies in the MF Global group have been placed into administration. This impacts a number of companies in Australia.

http://www.asic.gov.au/asic/asic.nsf/byHeadline/11-237AD%20MF%20Global?opendocument

MF GLOBAL COLLAPSE HITS PATSYTEMS

Shares in UK screen-dealing software house Patsystems fell over 10% yesterday on news of the collapse of MF Global, a major customer accounting for recurring revenue of around £3 million.

Full story: http://www.finextra.com/news/fullstory.aspx?newsitemid=23110

MF Global Workers Face Tough Job Market
Recruiters are flooded with resumes as workers at MF Global Holdings race to get hired before peers.

http://www.wallstreetandtech.com/career-management/231902206?cid=nl_wallstreettech_daily

Stuff

MUMBAI GETS DIAMOND-DISPENSING ATM

Indian jewellery firm Gitanjali has unveiled an 'ATM' that dispenses not cash but gold, silver and diamonds.

Full story: http://www.finextra.com/news/fullstory.aspx?newsitemid=23102

DOUBLE DUTCH?

The Anglo-Dutch wars of the 17th and 18th centuries were acrimonious even by the usual standards of war . The wars were a very long time ago and we are all friends now

The common strand in all of these disparaging 'Dutch' expressions is that anything Dutch is the opposite of what it ought to be. Examples of these expressions are:

Dutch bargain - a bargain made when one is debilitated by drink - first recorded in 1654.
Dutch defence - a legal defence in which the defendant seeks clemency by deceitfully betraying others - 1749.
Dutch comfort - cold comfort; only good because things could have been worse - 1796.
Dutch metal/Dutch gold - a cheap alloy resembling gold - 1825.
Dutch courage - brash bravery induced by drink - 1826.
Dutch treat - no treat as such; each person pays for their own expenses - 1887.

http://www.phrases.org.uk/meanings/double-dutch.html

We Aussies are financially joined at the hip with the US.

http://www.macrobusiness.com.au/2011/11/chart-of-the-day-sp-versus-asx/?utm_source=Media+List&utm_campaign=39a7602832-RSS_DAILY_MAILCHIMP_CAMPAIGN&utm_medium=email

111007 News: CXA, CXE Cheri, RBA, FSA, CCP, ECB, FOA EMIR....RWC IRE FRA AUS NZzz & GBS!

I can’t believe how quickly the RWC is flying by now. I guess I better get some predictions out for this weekends games.

I must say, if the wobbly wallabies had to lose to anyone, I’m glad it was Ireland.

For me, Ireland and Wales have been the ‘in form’ teams. I was deeply impressed by the clinical nature of Wales over Fiji and their valiant efforts against the Boks....but something has me falling for the Irish.

France of course could go either way.

Ire 19 Wales 17

Eng 12 France 21

SA 21 Aust 26

NZ 44 Arg 6

I did ask about the Greeks and the Euro ‘crisis’ (which I think will pass) and got this wonderful reply...

The Greeks have scratched their beards and wore s(c)andals since Socrates and Sophocles.

CXA is gearing up for an end of month launch.

CXE goes CHERI whilst Turquoise stays in house with the FTSE stable.

Couple of good clearing papers this week.

RBA Assessment and FSA CP11/19

I don’t see the LSE.LCH.CN deal closing.

Bravo Britain V the ECB. A nice back door angle.

Excellent comment by Belchambers on EMIR.

I just don’t understand the UBS loss. I’m still waiting for the final analysis.

Some nice quotes from Steve Jobs.

Have a great week-end all. Create the circumstances you need to make it happen. Wise man old GBS.

And go those wobblies!

Scott.

s.riley.mail@googlemail.com

http://clearingandsettlement.blogspot.com/

Platforms Asia

CHI-X AUSTRALIA ADDS DAVID TRUDE AS INDEPENDENT DIRECTOR

http://www.finextra.com/news/announcement.aspx?pressreleaseid=41249

Chi-East matched volumes up 203% in Q3

Chi-East, the pan-Asian joint venture dark pool between Singapore Exchange and exchange operator Chi-X Global, announced a 203% increase to US$71.06 million in Q3 2011 from US$23.45 million in Q2 in the value of trades matched.

http://www.thetradenews.com/regions/asia/6840

EXCHANGE SPENDING CUTBACKS HIT PATSYSTEMS

UK screen-dealing software house Patsystems has issued a profits warning as sales to emerging exchanges are hit by economic and financial turmoil.

Full story: http://www.finextra.com/news/fullstory.aspx?newsitemid=23023

TSE sets date for new futures and options platform

The Tokyo Stock Exchange (TSE) is to launch its ‘Next Tdex+ System’ for futures and options trading, together with a third-generation system for the trading of stock and corporate bonds, on 21 November 2011.

http://www.thetradenews.com/trading-venues/6816

Platforms

NYSE, DB Receive Statement of Objections from EU Commission

The two exchange operators, who hope to complete their $10.4 billion merger by year’s end, did not disclose what the objections are. The commission has not yet posted a statement about its objections, for public viewing.

The EU Competition Commission has indicated it plans to make its ruling on whether the merger will clear its antitrust concerns, by December 13.

The merger also must get approval from the United Kingdom’s competition commission.

Shareholders of the two companies approved the merger in July.

http://www.securitiestechnologymonitor.com/news/nyse-db-antitrust-europe-statement-of-objections-received-from-eu-29180-1.html?ET=securitiesindustry:e2892:171544a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=SIN_DailyClose__100511

Chi-X Europe Founder, Tony Mackay, cuts ties with Nomura & Instinet.

(see attached)

Chi-X picks CHERIs for first taste of derivatives competition

A partnership between pan-European equities trading platform Chi-X Europe and indices provider Russell Indexes has borne fruit with the launch of the Chi-X Europe Russell Index (CHERI) series.

http://www.thetradenews.com/trading-venues/exchanges/6830

CBOE STOCK EXCHANGE TO BUY NSX

http://www.finextra.com/news/announcement.aspx?pressreleaseid=41268

LSE hires Chi-X Europe’s Jenkins as head of compliance and regulation

http://www.atmonitor.co.uk/news/newsview.aspx?title=lse-hires-chi-x-europe-s-jenkins-as-head-of-compliance-and-regulation

Turquoise launches FTSE Index Options on derivatives platform

Turquoise announced that from today it has introduced FTSE Index Options on to its Turquoise Derivatives platform.

Three market makers have committed to provide liquidity from today, including Citigroup and securities trading firm, Tibra Trading Europe Limited.
A three month fee holiday has been introduced for market-makers at launch. Thereafter market-makers will be charged 5p per contract. All other customers will be charged 15p per contract.
The clearing fee for options will also be 2p per contract (same as for the Turquoise FTSE Futures)

http://www.atmonitor.co.uk/news/newsview.aspx?title=turquoise-launches-ftse-index-options-on-derivatives-platform

Order Machine to Take QuantHouse Data Feeds

A new Netherlands-based supplier of smart order routers for European banks and brokers will be using QuantHouse feeds of market data

http://www.securitiestechnologymonitor.com/news/order-machine-quanthouse-data-feeds-29158-1.html?ET=securitiesindustry:e2892:171544a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=SIN_DailyClose__100511

Clearing

The Reserve Bank of Australia has released its 2010/11 Assessment of Clearing and Settlement Facilities in Australia against the Financial Stability Standards. The Assessment can be viewed at:

http://www.rba.gov.au/payments-system/clearing-settlement/pdf/report-2010-2011.pdf

LCH.Clearnet confirms exclusive LSE talks

LCH.Clearnet Group Limited confirms that it has entered into exclusive discussions with London Stock Exchange Group plc regarding a possible transaction.
There can be no certainty that the discussions will result in any transaction.

http://www.atmonitor.co.uk/news/newsview.aspx?title=lch-clearnet-confirms-exclusive-lse-talks

MarkitServ Promotes Same-Day Clearing of Swaps

MarkitServ on Thursday said it has launched a same-day clearing service for credit default swaps executed between brokers with Deutsche Bank, JP Morgan and Morgan Stanley as its first users.

http://www.securitiestechnologymonitor.com/news/markit-swaps-clearing-29181-1.html?ET=securitiesindustry:e2892:171544a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=SIN_DailyClose__100511

Britain appears set to win clearing battle with ECB

The European Central Bank proposed a rule that would require clearinghouses that handle euro-denominated securities to be in the euro zone. Britain sued the ECB over the rule and appears poised to win the battle, after officials changed the draft derivatives law, EU diplomats said.

http://www.reuters.com/article/2011/09/29/eu-clearing-idUSL5E7KS6FB20110929

NASDAQ OMX Nordic to introduce competitive CCP clearing

(NASDAQ:NDAQ), has announced its intention to introduce competitive Central Counterparty (CCP) clearing by end of April 2012* in cooperation with EMCF, EuroCCP and SIX x-clear.

http://www.automatedtrader.net/news/exchange-news/90925/nasdaq-omx-nordic-to-introduce-competitive-ccp-clearing

Regulation

CP11/19: Financial resources requirements for Recognised Bodies

The FSA's Consultation Paper CP11/19 is entitled 'Financial resources requirements for Recognised Bodies'. It was published in October 2011. The Financial Services Authority invites comments on this Consultation Paper. Comments should reach us by 6 January 2012

http://www.fsa.gov.uk/pubs/cp/cp11_19.pdf

Can MiFIR bring competition to derivatives that EMIR can’t reach?

European finance ministers yesterday agreed a common position on the European markets infrastructure regulation (EMIR) that fosters competition in the over-the-counter (OTC) derivatives market, but rules out an extension of the regulation to listed derivatives.

Anthony Belchambers, CEO of UK-based trade body the Futures and Options Association, suggested that EMIR’s delineation between OTC and listed derivatives would become meaningless as the former became standardised and exchange traded.

“As a significant proportion of OTC derivatives are standardised and will be increasingly traded on multilateral platforms, opening access to OTC derivatives may not amount to very much in the long run,” he said. “A question that needs to be addressed is whether regulators are opening up access to a potentially dwindling set of instruments.”

http://www.thetradenews.com/asset-classes/derivatives/6844

Stuff

UBS

Watch where the data goes...

Track where messages get sent. Start gathering more data from those places that are repeated sources of interaction, even if intermittent. Start making those sources of data part of the data you make a habit of capturing.

http://www.securitiestechnologymonitor.com/photo_gallery/1_79/29021-1.html

STEVE JOBS (RIP)

http://www.smh.com.au/photogallery/business/quotes-of-steve-jobs-on-life-20110902-1jpi2.html

MARKET DATA EXPLOSION

The chart below shows how many quotes it takes to get $10,000 worth of stock traded in the U.S. for any point in time during the trading day over the last 4.5 years. Higher numbers indicate a less efficient market: it takes more information to transact the same dollar volume of trading.

Quote traffic, like spam, is virtually free for the sender, but not free to the recipient. The cost of storing, transmitting and analyzing data, increases much faster than the rate of growth: that is, doubling the amount of data will result in much more than a doubling of the cost. For example, a gigabit network card costs $100, while a 10 gigabit network card costs over $2,000. A gigabit switch, $200; a 10 gigabit switch, $10,000. This October, anyone processing CQS (stock quotes) will have to upgrade all their equipment from gigabit to 10 gigabit. Which would be fine if this was due to an increase in meaningful data.

http://www.nanex.net/Research/ExhibitA/ExhibitA.html

The Top 400 Banks on Twitter

http://thefinancialbrand.com/19914/400-retail-banks-on-twitter/

''People are always blaming their circumstances for what they are. I don't believe in circumstances. The people who get on in this world are the people who get up and look for the circumstances they want and, if they can't find them, make them.''

George Bernard Shaw, from Mrs Warren's Profession