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

News 100408: Anzac, Chi-X Aust, ASIC RG211, LSE pricing, DTCC, R&J Cape Town

…At the going down of the sun,

And in the morning,

We will remember them.

My grandfather rests here in Caserta, Italy (I think from memory plot 6D). Prior to the Italian armistice of Sep ’43 (where the Italians re-entered the war on the allied side) the Italians ran a PoW camp here in Caserta (some called it a concentration camp). My grandfather, one of the “Rats of Tobruk”, died from injuries sustained on night patrol behind enemy lines in Lybia. He was taken PoW in Easter 1941 during the Siege of Tobtuk, shipped off by the Italians to Caserta, where he died on 27^th May 41 at the ripe old age of 33.

http://www.anzacday.org.au/history/ww2/anecdotes/tobruk.html

*** brings the “rats” to life.

http://www.cwgc.org/search/cemetery_details.aspx?cemetery=2005400&mode=1

*** where he rests today.

http://www.docstoc.com/docs/6456356/Siege_of_Tobruk

http://www.awm.gov.au/units/unit_11287.asp

…and to the news.

Lots of activity down under. ASIC release their guidance on Aussie C&S and the media picks up on the implications for Chi-X, especially in the context of the Ministerial approval in principle.

LSE can’t help twiddling with fees..must be like wearing itchy trousers..hard to get comfortable with competition.

A nice piece on where and how much capital LCH.CN is holding.

Some interesting board changes at DTCC too.

..and the IMF proposes a nice FAT tax. I doubt it will fly. If anything it’ll be a RAT (Regulatory Arbitrage Tax).

No blog last week while I was travelling to Cape Town for a wedding. (this weeks piccie on the blog spot).

Heartfelt congratulations to Robin and Joyce.

If you ever want a heart lifting experience – ya can’t beat a great wedding.

Thanks guys….and welcome to my new blog readers.

Have a great weekend all.

And OMG, go the Reds! 16-13 over the Stormers? Yep, it’s true.

Scott.

http://clearingandsettlement.blogspot.com/

Trading

Chi-X’s new hit on ASX monopoly.

http://www.businessday.com.au/business/chixs-new-hit-on-asx-monopoly-20100418-smld.html

The Government announcement on Chi-X's conditional approval to operate a market in Australia is good news for existing AFSL's and AFSSDA. As you may or may not be aware, AFSSDA also aspires to obtain and operate a market license in the future, which our members will own a portion of.

http://content.enewslettersonline.com/18412/35084.html

http://www.afssda.com.au/About_AFSSDA.html

22/04/2010 10:54:00

LSE BID FOR HIGH-FREQUENCY TRADERS MOCKED BY BATS

The London Stock Exchange's decision to change its tariff structure in a bid to win back high-frequency traders just months after scrapping an earlier scheme has been ridiculed by rival outfit Bats Europe.

More on this story: http://www.finextra.com/news/fullstory.aspx?newsitemid=21315

JOHANNESBURG STOCK EXCHANGE PLANS DARK POOL

http://www.finextra.com/news/announcement.aspx?pressreleaseid=33425

CANADIAN ATS ALPHA FILES FOR EXCHANGE STATUS

http://www.finextra.com/news/announcement.aspx?pressreleaseid=33417

Clearing

ASIC releases guidance on regulation of clearing and settlement facilities

http://www.asic.gov.au/ASIC/asic.nsf/byHeadline/10-82AD%20ASIC%20releases%20guidance%20on%20regulation%20of%20clearing%20and%20settlement%20facilities?opendocument

Breakdown of LCH margin assets

Protection Money

In a recent committee discussion in the Lords, Roger Liddell spoke about the levels of risk LCH manage, and the financial assets they hold to protect against the default of a member. Of interest were the amounts of margin and capital available, both when Lehman defaulted, and now.

http://www.linkedin.com/news?viewArticle=&articleID=114142835&gid=2026241&srchCat=WOTC&articleURL=http%3A%2F%2Fweb.me.com%2Fhodgsonb%2FBlog%2FThe_OTC_Space%2FThe_OTC_Space.html&urlhash=ES33

DTCC Names Five New Board Members

The Depository Trust & Clearing Corp. Thursday said it named five new board members and, for the first time, three of them come from companies which are not members of its clearing and settlement organization.

http://www.securitiesindustry.com/news/-25176-1.html?ET=securitiesindustry:e1915:171544a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=SIN_DailyClose_042210

*** Interesting. This includes Christopher Concannon. (Concannon joined Nasdaq in its purchase of Instinet, where he was president of its clearing unit.)

http://www.marketswiki.com/mwiki/Chris_R._Concannon

DTCC ELECTS BOARD MEMBERS

http://www.finextra.com/news/announcement.aspx?pressreleaseid=33427

*** This also includes bios.

Singapore to offer clearing on OTC derivatives
By Kevin Brown in Kuala Lumpur
The Singapore Exchange, Asia's second largest listed bourse, announced plans on Wednesday to change its rules to allow an expansion of its central clearing operation to include over-the-counter (OTC) financial derivatives. The exchange, which already has a substantial OTC clearing business, said it would initially offer interest rate swaps and Asian foreign exchange forward contracts, settled in US dollars.
http://jlne.ws/9X9Q7v

TRADEWEB COMPLETES ELECTRONIC LINKS TO CLEARING HOUSES FOR OTC DERIVATIVES TRADES

http://www.finextra.com/news/announcement.aspx?pressreleaseid=33117

Policy

The IMF has urged the global introduction of 'clean up' taxes on financial firms.

§ http://www.fool.co.uk/news/investing/2010/04/22/banks-face-two-new-taxes.aspx

§

§ The IMF report in full (or rather the “confidential” summary of the G20 April 2010 meeting):

§ https://www.novares.eu/pdfs/IMF-G20-Interim-Report--A-Fair-and-Substantial-Contribution-by-the-Financial-Sector.pdf

§

§ FSA leaders say objectives create a conflict of interest
UK Financial Services Authority officials requested that changes be made to the agency's legal framework, saying its role as a financial regulator conflicts with its objectives to promote London as a global financial hub. "When you start saying that the role of a regulator is to help, as it were, the competitiveness of a location or of the nationally registered firms, that can in a subtle way create a conflict of interest and it would probably be better if we didn't have that objective," said Adair Turner, chairman of the FSA. Financial News Online (U.K.) (subscription required) (06 Apr.)

*** I think this is a pity. Yes, the conflict is apparent, but the FSA / regulators universally expect all firms to have procedures to address conflicts of interest. To step away from this conflict is akin to absolving themselves of any responsibility. To me it reads too much of we want an open mandate for “business prevention” rather than we’ll take a pragmatic view on financial markets i.e. “if not, why not”.

Market Access Proposal: Great in Concept but not in Practice

Broker-dealers and other market players give a thumbs-up for the Securities and Exchange Commission’s efforts to tighten controls on unfiltered sponsored or “naked” access to exchanges and other market centers.

http://www.securitiesindustry.com/monday_monitor/-25007-1.html?ET=securitiesindustry:e1892:171544a:&st=email&zkPrintable=true&utm_source=editorial&utm_medium=email&utm_campaign=SIN_MondayMonitor_040510

UBS CONNECTS TO CHI-TECH MARKETPRIZM

http://www.finextra.com/news/announcement.aspx?pressreleaseid=33347

EQUINIX OPENS AMSTERDAM DATA CENTRE

http://www.finextra.com/news/announcement.aspx?pressreleaseid=33419

Super 14 roadtrips not like in movies

JAMES HORWILL 1:43pm | Last weekend's Super 14 results showed how difficult it is to win away from home in this competition. Not a single team had a win on the road.

Service record states (information supplied by the Red Cross):

During Easter Harrison, Luck, Mayman and Symons were out on patrol. They struck bother. Harrison was wounded and Mayman and Luck went back to help him. Symons joined them. Just afterwards, when they observed the enemy moving around from the rear, Harrison pleaded with the others to leave him so that they could get back. Symons Mayman and Luck were nursing Harrison when the enemy came up to them and took the lot. The men are in my company and I heard the story of their capture almost as soon as it happened.

Mayman survived to be released from prison by the allies in 1943 but his company was bombed by friendly fire when they were marching out and was badly injured.

*** My grandfather was Eric Harrison.

Don’t be afraid to take a big step if one is indicated. You can’t cross a chasm in two small jumps.

- David Lloyd George

If you think education is expensive – try ignorance.

- Derek Bok

Scott Riley

Business Development

Fortis Global Clearing

8th Floor | 50 Bridge Street | Sydney | Australia | 2000

((Off)+61 (0)2 8916 9634 È(Mob): +61 (0)418 117 627

* scott.riley@au.fortisclearing.com