News 101001: CXG, TQ Fees, X-Clear CCP fees, CCP governance, UK Bk stability...daylight savings

New X-Clear rates.

I had a look at the new LCH rates here:

http://clearingandsettlement.blogspot.com/2010/09/news-100903-education-lch-clearing-fees.html

I’ve simply applied the same model to the X-clear rates below.

I’ll let people do their own FX assumptions.

So, to clear 3.3myn trades in a 21 day month:

Total cost x-clear = 85.725K (euro – their FX rate)

Total cost LCH = 78,225 Sterling (you do the FX)

Total cost EMCF = 75K Euros (base ccy)

On the platforms….

More snippets on Chi-X

Despite the Deutsche Bourse connections of Pave I’m surprised by their choice of technology partner.

New Turquoise fee schedule (as yet not on their web site)

On clearing….

I find CFTC talk of limiting the user ownership and governance model of commoditised infrastructure (mutuals) perplexing, annoying and distressing all at once.

On policy….

If the UK banking commission wants to focus on stability, why not take a holiday in Aust?

We have 4 banks here, the so called 4 pillars.

It’s a lovely, excellently functioning oligopoly.

No material competition, no innovation, no chasing of margins….no worries mate!

Of course they are universally hated by customers…and consumers are ripped off.

I spoke to one student, who was not using her credit card because it would cost A$18 just to order a new PIN.

That’s stability.

(fortunately Miss R does not have a credit card…unfortunately to date she appears to remember PIN numbers).

Nigh on impossible to keep up with all the changes taking place.

I’ve not been keeping an eye on the OTC space.

Does anyone have a link or a list of all the various OTC execution facilities for the IRS / CDS space?

Likewise, is there a definitive list of which CCP initiatives are clearing what?

Oh…only the Brits could come up with the gems of bill payments tips…like use the right sort code….inspiring!

Congratulations to Germany on paying off WW1. Paris in 1919…what a different world that was.

I know everyone, knows someone that hates the Welsh…personally, I never understood why…anyway, for the Welsh ‘lovers’

http://www.slapapollie.com/game/1/Gillard

(BTW, I always knew Charlotte C and Gavin H were doomed, shame, but just oh so predictable)

It is a Labor Day public holiday on Monday in NSW, ACT and South Australia.

Day Light Savings kicks in this weekend - don’t forget to advance your clocks forward one hour this Sunday morning at 2am AEST.

Hong Kong and China markets are closed today for the National Day Holiday.

In the final analysis it is not what you do for your children but what you have taught them to do for themselves that will make them successful human beings."

--From the "Ask Ann Landers" American advice column

Have a great w/end all.

Warm regards (hee hee)

S

http://clearingandsettlement.blogspot.com/

PLATFORMS

TRADEWEB LAUNCHES EQUITY DERIVATIVES MARKET

http://www.finextra.com/news/announcement.aspx?pressreleaseid=35757

LIQUIDNET AND INSTINET INK GLOBAL LIQUIDITY SOURCING AGREEMENT

http://www.finextra.com/news/announcement.aspx?pressreleaseid=35766

BATS identified as would-be bidder for Chi-X Europe

http://www.thetradenews.com/trading-venues/exchanges/5113

BLOOMBERG: Australian Markets Regulator to Publish Timetable for Rival Exchanges
By Shani Raja and Chan Tien Hin
09/28/10

http://www.bloomberg.com/news/2010-09-28/australian-markets-regulator-to-publish-timetable-for-rival-exchanges.html

Instinet seeking new investors for Chi-X Global

http://thetradenews.com/asset-classes/equities/5126

BLOOMBERG: Chi-X Japan to Triple Number of Stocks to 800 by October, CEO Meyer Says
By Akiko Ikeda and Kotaro Tsunetomi
09/26/10
http://www.bloomberg.com/news/2010-09-27/chi-x-japan-to-triple-number-of-stocks-to-800-by-october-ceo-meyer-says.html

MARKETS MEDIA: Exchanges Look To Future(s)
By Staff
09/27/10
“If quoting is going on repeatedly that's far away from the inside, then where everyone is simply to information, then imposing a speed limit will cause higher internalization rates,” said Isaacson.

Circuit breakers in their current form are a good first step to address situations where there are gaps in linkages between exchanges, but a more sophisticated and potentially more effective step would be to employ limit up/limit down, in which trading continues but executions may only occur within an acceptable preset range or limit.
Noted Mecane, “We have to make sure that linkages don't break down, whether it's through circuit breaker or limit up/limit down.”
Limit up/limit down would prevent clearly erroneous trades, such as fat-finger trades, form triggering circuit breakers and causing a halt in trading.
“We at BATS have been pushing for limit up/limit down,” said Isaacson. “It's worked well in futures markets for years in getting rid of clearly erroneous trades.”

WATERS TECHNOLOGY: US Exchanges Prepare to Shuffle Trading Models
By Michael Shashoua
09/24/10
US equity trading models will see big changes in the coming weeks as NYSE Euronext won approval from the US Securities and Exchange Commission (SEC) on Sept. 24 to launch block rebates for larger order sizes starting on Oct. 1. Meanwhile, Nasdaq OMX is gearing up to roll out a new price–size model platform.
The price–size model can also allow participants to add just one more share to an order to get to the top of a queue, adds Conklin. The contrasting price–time model "really incents people to get in there and fight to tighten the markets at the end of the day," he says.

DUTCH CARIBBEAN SECURITIES EXCHANGE TAPS TRAYPORT FOR TRADING SYSTEM

http://www.finextra.com/news/announcement.aspx?pressreleaseid=35786

*** I thought the only Dutch left in the Caribbean were on holiday.

SECURITIES TECHNOLOGY MONITOR: Merrill Lynch Connects to Asian Off-Exchange Venue
By Tom Steinert-Threlkeld
09/28/10
Tora also aggregates liquidity from multiple venues in Asia.
These venues include Credit Suisse’s Crossfinder, Instinet’s CBX Asia, Japannext, Kabu.com and now BofAML’s MLXN.

Tora Crosspoint will add Hong Kong, Singapore and Australian stocks later this year.

PHILIPPINE STOCK EXCHANGE MIGRATES TO NYSE TECHNOLOGIES PLATFORM

http://www.finextra.com/news/announcement.aspx?pressreleaseid=35816

Spain’s First MTF Picks Equiduct For Technology

By Chris Kentouris

Spain’s first local multilateral trading facility has tapped Equiduct Systems to provide its technology infrastructure.

The Plataforma Alternativa de Valores Expanoles (PAVE) on Thursday said that Equiduct Systems will provide its trading platform and operational infrastructure.

Equiduct Systems is a technology service provider controlled by Citadel Securities, Knight and Borse Berlin. The pan-European segment of Borse Berlin, also called Equiduct, is one of several trading platforms in Europe trying to capitalize on the European Markets in Financial Instruments Directive which allows for alternative venues to compete with incumbent exchanges.

http://www.securitiestechnologymonitor.com/news/citadel-equiduct-spain-mtf-26181-1.html?ET=securitiesindustry:e2118:171544a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=STM_BNA_08302010_093010

Turquoise announces pricing promotion

The promotion, which takes effect on November 1, will pay its members a passive rebate of 0.4bps, double that offered by competing MTFs.

As part of the new tariff schedule published today, Turquoise also announced it is adjusting its standard passive rebate to 0.2bps and its aggressive fee to 0.3 bps, in line with other MTF venues.

http://www.automatedtrader.net/news/mtf-news/57335/turquoise-announces-pricing-promotion

Funny thing is, this is not even reported on Turquoises own web site.

http://www.tradeturquoise.com/tq_press.shtml

Newedge Executes and Clears $2 billion in IRS via Eris Exchange
Contends private initiatives such as Eris Exchange can create a safer environment for OTC interest-rate ...

Five local trading firms have launched Eris Exchange: DRW Holdings LLC, Getco LLC, Infinium Capital Management LLC, Chicago Trading Co. and Nico Holdings LLC, which have all invested in the entity.

http://advancedtrading.com/exchanges/showArticle.jhtml;jsessionid=5H521YBWQ0JGTQE1GHRSKH4ATMY32JVN?articleID=227500963&_requestid=95435

CLEARING

FINANCIAL TIMES: LCH.Clearnet Faces Derivatives Battle
By Jeremy Grant
09/27/10
an application by the London-based clearer to be able to offer OTC equity derivatives linked to Stoxx indices has been rejected by Stoxx

Stoxx is controlled by Deutsche Börse and SIX Group, operator of the Swiss exchange. A separate application by the LSE to be allowed to offer trading in equity derivatives on the Eurostoxx index – one of Stoxx’s products – was also rejected.

SIX x-clear Ltd, announced that it will significantly reduce its prices and introduce a new, simpler, volume-based tariff structure on 1 January 2011.

Volume band (sides per month) Approximate cost per side (in EUR cents)

Up to 50,000 15

50,000 to 250,000 7.5

250,000 to 1,000,000 3.33

1,000,000 to 3,000,000 1.8

Excess over 3,000,000 0.75

http://www.ccp.sisclear.com/ccp/index.htm

So, for 3.3 million trades (see LCH pricing http://clearingandsettlement.blogspot.com/2010/09/news-100903-education-lch-clearing-fees.html)

0-50K = 7.5K

50-250K = 15K

250-1myn = 24.975K

1myn-3myn = 36K

3myn-3.3myn = 2.25K

Total cost x-clear = 85.725K (euro – their FX rate)

Total cost LCH = 78,225 Sterling (you do the FX)

Total cost EMCF = 75K Euros (base ccy)

What is a Swap Execution Facility?

http://streetwiseprofessor.com/?p=3964

EUROCLEAR SET FOR MANAGEMENT REORGANISATION

http://www.finextra.com/news/announcement.aspx?pressreleaseid=35771

Singapore Exchange Bolsters Securities Borrowing and Lending Service

Singapore Exchange (SGX) said September 23 it is enhancing its Securities Borrowing and Lending (SBL) service to bring additional benefits for investors and SGX central depository account...(more)

Singapore Exchange First in Asia to Clear OTC Traded Financial Derivatives

Singapore Exchange (SGX) today announced an expansion of its AsiaClear business with the launch of a new clearing service for over-the-counter (OTC) traded financial derivatives. First in... (more)

CFTC considers limiting ownership of clearinghouses and exchanges
The Commodity Futures Trading Commission is poised to present proposed rules for the over-the-counter derivatives market Friday. The regulator is considering restricting ownership of clearinghouses, trading systems and exchanges to no more than 20% for investors and banks, sources said. The move would affect LCH.Clearnet, Tradeweb Markets, NYSE Euronext and other companies. Bloomberg (9/29)

Goldman CEO warns of risks from using clearinghouses
Lloyd Blankfein, chairman and CEO at Goldman Sachs, told participants at an industry conference in Brussels that in an "extreme" crisis, the use of clearinghouses could exacerbate risks. "I agree that clearinghouses make things less risky for the regular crisis, but in an extreme crisis, that could affect the clearinghouse itself," and that would be "dramatically more risky," Blankfein said. "We have to make sure that something that we do to reduce the risk in a once-in-a-20-year storm doesn't increase the risk in a once-in-a-50-year storm." Bloomberg (9/29)

POLICY

UK to probe high-frequency trading

(FINANCIAL MARKETS) US regulators finalise flash crash report. 1 Oct 2010 6:50 AM read more

http://www.businessspectator.com.au/bs.nsf/Article/UPDATE-2-UK-to-probe-high-frequency-trading-9SLR8?OpenDocument&src=eiw&ir=3

UK banking commission focuses on stability and competitiveness
The UK's Independent Commission on Banking released a paper outlining its goals, which include finding ways to ensure the stability and competitiveness of Britain's financial-services sector. The panel said it will consider the idea of breaking up large banks, subjecting larger financial institutions to higher capital requirements and taxes, and requiring some to sell assets. The government commission has asked the industry for feedback on the issues. The Wall Street Journal/Dow Jones Newswires (24 Sep.) , The Independent (London) (26 Sep.)

BRITS TOLD TO USE PAYMENT REFERENCE WHEN PAYING BILLS ONLINE OR OVER THE PHONE

http://www.finextra.com/news/announcement.aspx?pressreleaseid=35857

The 5 tips of consumer advice:

1. Use the right sort code and account number when paying a bill

2. Always include the beneficiary (how do you make a payment without a beneficiary?)

3. Insert the correct company billing name

4. Double-check everything before you hit 'go.'

5. If you get stuck when making an electronic payment online or by phone, consult the help pages on your bank's site or contact your bank

Celent advocates regulation for broker crossing networks
Market consultancy Celent has published a report that calls for regulation of investment banks' in-house trading venues. Celent argued that the broker crossing networks offer the "same services as the regulated venues without the commensurate regulatory burden". The report comes as European regulators review the Markets in Financial Instruments Directive, which governs trading in the region. Financial News Online (U.K.) (subscription required) (29 Sep.)

PARTICIPANTS

Morgan Stanley leads capital-market rankings for EMEA
Morgan Stanley has climbed up the capital-market rankings for Europe, the Middle East and Africa to become the top book runner this year. The bank has a market share of 8.8% in the regions' equity-capital markets, up from 7.9% for all of last year. JPMorgan Chase dominated the rankings last year. Financial News Online (U.K.) (subscription required) (27 Sep.)

*** Bravo chaps! Backslaps all round.

White House slashes US bailout cost estimate

(ECONOMY) Sees TARP cost falling to less than $US50bn. 1 Oct 2010 8:41 AM read more

In addition to the AIG move, the Treasury said it had earned a profit of $US2.25 billion on the sale of Citigroup Inc securities it received in exchange for a $US5 billion guarantee on a portfolio of potentially toxic assets. The guarantee was cancelled with no losses.

The Treasury also said it has now sold off $US16.4 billion worth of Citigroup stock, reducing its stake in the banking giant to 12.4 per cent – a third of its size at the peak of the bailout.

http://www.businessspectator.com.au/bs.nsf/Article/UPDATE-2-White-House-slashes-US-bailout-cost-estim-9STXG?OpenDocument&src=eiw&ir=3

STUFF

The world is a tragedy to those who feel, but a comedy to those who think."

--Horace Walpole,
British art historian and politician

Germany Closes Book on World War I With Final Reparations Payment
Germany will make its last reparations payment for World War I on Oct. 3, settling its outstanding debt from the 1919 Versailles Treaty and quietly closing the final chapter of the conflict that shaped the 20th century.

http://www.spiegel.de/international/germany/0,1518,720156,00.html#ref=nlint

http://www.chocolatecarnival.co.nz/cadbury_jaffa_race

*** What’s a Jaffa?...here’s 25,000 of them!

MUGS FOR THUGS
Munich Oktoberfest Sees Rise in Assaults with Beer Glasses
While certain crimes are down at Oktoberfest this year, there have been more attacks with an unlikely, yet readily available, weapon: the one-liter beer stein. Some of the victims have been whisked away in ambulances with concussions and fractured skulls caused by fights involving the heavy glasses.

*** "A hard hit with a stein packs more than 8,500 newtons of power -- the human head in the parietal region breaks with about 4,000 newtons."

Just push your cursor from the hand to 'her' face but the faster you hit her with "the hand" the further the distance and your marks.

http://www.slapapollie.com/game/1/Gillard

Daily chart: Fat of the lands

The bulging problem of obesity

http://news.economist.com/cgi-bin1/DM/y/eCPCr0dHglU0Mo0Gqlv0Ej

MARK-2-MARKET: Death duty resurrection

(ECONOMY) An inheritance tax deserves a rational discussion at the tax summit as it's simply unfair that ‘Australia’s luckiest sperm club' lives tax free, while the rest of us pay up to 50 cents in the dollar. 1 Oct 2010 6:28 AM read more

http://www.businessspectator.com.au/bs.nsf/Article/death-tax-duties-duty-rich-wealthy-bequest-tax-pd20100930-9S8HA?OpenDocument&src=eiw&ir=3

http://givingpledge.org/

Scott Riley

Business Development

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

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

* scott.riley@au.abnamroclearing.com

News 100924: Nasdaq, Quote, LSE CCP, Swift....and failure on the Bridge

Well, 9,000 runners and 1 person to beat…oops.

Evidence of the course run illustrated.

Evidence of my loss here:

http://www.marathon-photos.com/scripts/event.py?event=Sports/2010/Blackmores%20Sydney%20Running%20Festival&new_search=1&match=37358

Congratulations Daniel.

The Nasdaq initiative (price-size) is just further evidence of the various ways to slice the pie as execution has been utterly commoditised.

(So too will clearing eventually).

The costs of compliance and who wears the bill still have a long way to run in OTC clearing.

I do like transparency and ‘if you can’t measure it…’ but all this does add to costs (or at the very least strips costs out so they are apparent).

CCPs are NOT the cure for everything.

…and this is where I am a little surprised with the LSE view of CCP. It reads as “build it and they will come” to me.

I’m not so sure.

Set aside the economy of scale issues, vertical integration, enterprise vale etc…

Why would you want to build a new CCP?

European clearing fees are now at excellent levels.

Does the LSE, with the increased costs of fragmentation, really feel it is going to deliver cheaper clearing fees?

The banks already have a stake in LCH.CN…do they want more capital invested in more CCPs…to compete with their existing investment?

I’d certainly be tempted to look at the UK settlement model (where Euroclear still charge ‘clearing fees’).

My feeling is European equity clearing is approaching the point where it has been commoditised…pretty much as execution has.

There are still plenty of other dimensions to the exchange revenue model that are maybe not as capital, labour and regulatory intensive.

…now if this LSE CCP is for OTC business that has been mandated to be cleared…that could be a value proposition when offset against ‘on exchange’ flows.

If that was the case, it wouldn’t be appropriate for LSE to sit on the board of LCH.CN where the one product LCH.CN is enjoying strong revenue growth in…(but, hey, Xavier already resigned so that’s lucky).

Swift reduces fees by 20%!?...does that mean Sibos is drawing near?

Have a great w/end all (kids commence 2 weeks school holidays here),

S

http://clearingandsettlement.blogspot.com/

PLATFORMS

Nasdaq OMX to launch size priority venue
Global exchange group Nasdaq OMX is launching a new price-size priority equity trading platform in the US designed to encourage more trading in larger size.
http://www.thetradenews.com/trading-venues/mtfs-ecns/5074

Quote MTF

In a bid to attract flow to its platform, Quote MTF is putting a cap on commission fees at €14,000 until 2012 for all investors that sign up before 1 January 2011. The cap is intended to allow trading members to offer a low, fixed all-in price for their clients while gaining the benefits once the cap is reached.

The MTF is also offering a percentage of its total equity to passive liquidity providers. Bower says that the MTF is in discussions with a number of large investment banks that are interested in providing liquidity. Offering incentives through an equity stake rather than rebates will, he says, help to maintain the quality of liquidity on the Quote MTF order book

its execution pricing model of 0.14 basis points for aggressive trading and free passive trading

http://thetradenews.com/node/5072

QUOTE MTF OFFERS TO GIVE AWAY EQUITY TO ATTRACT BUSINESS

Hungary-based Quote MTF is offering to give away up to 40% of its shareholding to trading firms as it bids to secure participation in a fiercely competitive, consolidating market.

More on this story: http://www.finextra.com/news/fullstory.aspx?newsitemid=21815

BURSA MALAYSIA DERIVATIVES PRODUCTS MIGRATE TO CME GLOBEX

http://www.finextra.com/news/announcement.aspx?pressreleaseid=35665

Tokyo Stock Exchange Selects NYSE Technologies To Build Futures Platform
Based on the successful Tdex+ platform already trading options on the TSE since October 2009, this futures ...

Tdex+ based futures system utilizing its LIFFE CONNECT platform with several customized features.

http://wallstreetandtech.com/exchanges/showArticle.jhtml?articleID=227500120&cid=nl_wallstreettech_daily

INTERACTIVE DATA NAMES ALEX GOOR CIO

http://www.finextra.com/news/announcement.aspx?pressreleaseid=35660

BRICKLES EXITS FOR GOOD AS PLUS TAKES AXE TO STAFF NUMBERS AND TECH Plus Markets has narrowed its first half losses as a new management team embarks on an aggressive cost cutting programme that has seen headcount and technology expenditure slashed and the departure of vice chairman Simon Brickles.

Full story: http://www.finextra.com/news/fullstory.aspx?newsitemid=21801

CBOE Stock Exchange Attracts Retail and Algo Order Flows with New Rebate Program
CBSX experiences 900 percent growth in volume with inverted "maker-taker" pricing program ...

http://advancedtrading.com/exchanges/showArticle.jhtml;jsessionid=TYWCE0SFIWHDFQE1GHRSKHWATMY32JVN?articleID=227500378&_requestid=30131

After a slow start, Japanese proprietary trading systems are seeing an uptick in turnover despite the overall decline in market volumes, says Takayuki Saito, the new head of electronic trading, Japan at Morgan Stanley MUFG Securities.

http://www.thetradenews.com/asset-classes/equities/5103

CLEARING

European Commission plans to migrate OTC derivatives to clearing via central counterparties will make the market more secure, but could hike trading costs for buy-side firms.

http://thetradenews.com/asset-classes/derivatives/5093

SCI report on CDS Clearing.

http://www.structuredcreditinvestor.com/story.asp?article=Clearing%20consensus&PubID=250&ISS=22352&SID=26047&SM=&SearchStr=&Category=Clearing&categories=77|Clearing&p_num=1

LSE in talks over London clearing house
By Jeremy Grant
FT.com / Companies / Financial Services
The London Stock Exchange is in talks with a group of Wall Street and European banks about jointly building and funding a clearing house in London, people familiar with the matter said.

http://www.ft.com/cms/s/0/56f78ffa-c26f-11df-956e-00144feab49a.html

EC Publishes Proposals on Derivatives, Market Infrastructures

The European Commission published a proposal for the regulation of over-the-counter (OTC) derivatives and market infrastructures that introduces a reporting obligation for OTC derivatives, a clearing obligation for eligible OTC derivatives, measures to reduce counterparty credit risk and operational risk for bilaterally cleared OTC derivatives, common rules for central counterparties (CCPs) and for trade repositories, and rules on the establishment of interoperability between CCPs. The commission notes the proposal is consistent with the recently adopted U.S. legislation.

The proposal introduces the following measures: requires the use of CCP clearing for OTC derivatives that meet predefined eligibility criteria; sets specific targets for legal and process standardization and bilateral clearing of OTC derivatives transactions; requires market participants to report all the necessary information on their OTC derivatives portfolios to a trade repository or, if that would not be possible, directly to regulators; and requires the publication of aggregate position information. The European Securities and Markets Authority (ESMA) will also be responsible for the surveillance of trade repositories and for granting or withdrawing their registration. The proposed regulations are scheduled to take effect starting at the end of 2012.

http://ec.europa.eu/internal_market/financial-markets/docs/derivatives/20100915_proposal_en.pdf

http://ec.europa.eu/internal_market/financial-markets/docs/derivatives/20100915_impact_assessment_en.pdf

Nasdaq OMX, GFI to Clear Power Contracts in U.S.

Nasdaq OMX Group and GFI Group Inc. plan to clear trades in power and natural gas on EnergyMatch, GFI’s electronic platform for trading in commodities. The clearing service will be Nasdaq OMX Commodities Clearing Company.

http://www.securitiestechnologymonitor.com/news/nasdaq-gfi-power-clearing-26114-1.html?ET=securitiesindustry:e2111:171544a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=SIN_DailyClose__092110

SWIFT To Reduce Message Prices By An Average 20 Percent - Customers Will Save EUR 70 Million In 2011 - Largest Price Decrease Since 1995
Press Release
SWIFT, the provider of global financial messaging services, announced yesterday that it is reducing the price of messages on its core FIN service by an average of 20 percent. This will represent an estimated saving of EUR 70 million for SWIFT customers in 2011. The new pricing plan takes effect on 1 January 2011.
http://jlne.ws/cxgbC5

21/09/2010 11:54:00

SWIFT LINKS SECURITIES MATCHING SYSTEM TO MULTIPLE CCPS

Financial messaging outfit Swift is set to link its securities matching system to a range of central clearing counterparties, including EuroCCP, Six x-clear and LCH.Clearnet, enabling brokers to direct their matched off-exchange trades to a variety of providers.

More on this story: http://www.finextra.com/news/fullstory.aspx?newsitemid=21811

Singapore Exchange – First In Asia To Clear OTC Traded Financial Derivatives

Starting with the clearing of Interest Rate Swaps (IRS) denominated in Singapore and US Dollar, the new service is scheduled to be operational by October 2010, subject to regulatory approval.

To date, ten banks have initiated membership processes. They are Barclays Bank PLC, Citibank N.A., Credit Suisse AG, DBS Bank Limited, Deutsche Bank AG, The Hongkong and Shanghai Banking Corporation Limited, Oversea-Chinese Banking Corporation Limited, The Royal Bank of Scotland plc, Standard Chartered Bank and United Overseas Bank Limited.

http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=92903

EMCF Clearing Fund contributions.

http://www.emcf.com/upload/uploads/Regulation%20Clearing%20Fund%20101001.pdf

*** increase as of 1^st Oct.

POLICY

EU Council Publishes Texts on ESMA, EBA and ESRB

The EU Council published the latest regulatory proposals for the following: the European Parliament and the Council establishing a European Securities and Markets Authority (ESMA); the proposal for a regulation of the European Parliament and the Council establishing a European Banking Authority (EBA); and the proposal for a Council Regulation entrusting the European Central Bank (ECB) with specific tasks concerning the functioning of the European Systemic Risk (ESRB).

ESMA text

EBA text

ESRB text

CFTC's Gensler offers insight into swaps oversight
Gary Gensler, chairman of the Commodity Futures Trading Commission, outlined a plan for implementing measures in the Dodd-Frank act. Gensler estimated how many companies might be affected by changes to the massive swaps market and said the CFTC is working to define "swap dealer, "major swap participant" and other terms. "Initial estimates are that there could be in excess of 200 entities that will seek to register as swap dealers," Gensler said. Read Gensler's full remarks. The Wall Street Journal (9/17)

Real-Time Swaps Reporting May Start in Sept '11-CFTC

The head of the U.S. futures regulator said Tuesday that mandatory real-time reporting of swaps trades, a key measure to promote market transparency, could begin as early as September 2011.

http://advancedtrading.com/regulations/showArticle.jhtml;jsessionid=GI3UJCWW24RQZQE1GHRSKHWATMY32JVN?articleID=227500322&_requestid=261509

CFTC plans to consider and vote on rules for derivatives
Gary Gensler, chairman of the Commodity Futures Trading Commission, said regulators are poised to vote Oct. 1 on rules for clearing of derivatives. Gensler said the rules include governance procedures at exchanges, swap-trading platforms and clearinghouses. The CFTC also will consider rules for clearing venues that are deemed systemically important. The Wall Street Journal (9/22)

PARTICIPANTS

Deutsche Bank's plans for Basel III add pressures to competitors
Deutsche Bank announced a €9.8 billion cash call on the same day that Basel III capital rules were unveiled, piling pressures on its rivals. Deutsche Bank vowed to meet the rules five years before it is required to do so, making it more difficult for other banks facing capital concerns to bide their time. "Reaching Basel targets before the official schedule will, I think, become a point of excellence ... There will be some pressure on other banks that are not able to meet this sort of target," said Konrad Becker, an analyst at Merck Finck. Bank Systems & Technology (16 Sep.)

Deutsche Bank fixes subscription price for new shares at EUR 33.00 per share

http://www.db.com/ir/en/content/capital_increase_2010.htm

Singapore, 15 September 2010 – Deutsche Bank today announced that it is the first institution to implement Third Party Clearing services for a client on the Singapore Exchange (“SGX”). The client, Cantor Fitzgerald (Singapore) Capital Markets Limited (“Cantor Fitzgerald”), is a leading global financial services firm serving the institutional equity and fixed income markets. Cantor Fitzgerald has appointed Deutsche Bank to provide Third Party Clearing services for its clearing and settlement activities.

BANK OF AMERICA MERRILL LYNCH TO FORM DERIVATIVES CLEARING UNIT

http://www.finextra.com/news/announcement.aspx?pressreleaseid=35747

Don't be afraid your life will end; be afraid that it will never begin."

--Grace Hansen,
American dance director

The shortest way to do many things is to do only one thing at once.

- Samuel Smiles

An Austrian zookeeper enlisted the help of unwitting rhinos by growing cannabis in their enclosure. The scheme worked for years until a stool pigeon betrayed him.

http://www.spiegel.de/international/zeitgeist/0,1518,718603,00.html#ref=nlint

Price of Stolen Credit Card Data Has Dropped to $1.50

http://www.banktech.com/blog/archives/2010/09/price_of_stolen.html?cid=nl_bnk_daily

Scott Riley

Business Development

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

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