Friday, December 31, 2010

News 101224: CXE BATS 1st innings, LSE slips Dubai & Birley, Nasdaq silly mid on Cartels, SEF selected, BIS streaker (exposure consultation)...and ho,


G’day All,

I wanted to send some sort of holiday greeting to my friends and colleagues, but it is difficult in today's world to know exactly what to say without offending someone. So I met with my lawyer yesterday and on their advice I wish to say the following:

"Please accept with no obligation, implied or implicit, my best wishes for an environmentally conscious, socially responsible, low stress, non addictive, gender neutral celebration of the summer solstice holiday practised with the most enjoyable traditions of religious persuasion or secular practices of your choice with respect for the religious / secular persuasions and / or traditions of others, or their choice not to practice religious or secular traditions at all.

I also wish you a fiscally successful, personally fulfilling and medically uncomplicated recognition of the onset of the generally accepted calendar year 2011, but not without due respect for the calendar of choice of other cultures whose contributions to society have helped make our country great (not to imply that Australia is necessarily greater than any other country) and without regard to the race, creed, colour, age, physical ability, religious faith or sexual preference of the wishee.

By accepting this greeting, you are accepting these terms:

This greeting is subject to clarification or withdrawal. It is freely transferable with no alteration to the original greeting. It implies no promise by the wisher to actually implement any of the wishes for her / him or others and is void where prohibited by law, and is revocable at the sole discretion of the wisher. The wish is warranted to perform as expected within the usual application of good tidings for a period of one year or until the issuance of a new wish at the sole discretion of the wisher.

Best Regards (without prejudice)

Name withheld (Privacy Act)."

On other matters:

CXE marks the dance card with BATS. (the best partner in my humble view).

Some noise about CCP ownership…user owner and governed (OK with some independence thrown in) is still the right model.

Birley leaves the LSE….maybe he was listening to customers?

BIS consultation on CCP exposures

…and apparently not enough about the Cricket….

I love the number 1 google site for Ashes tour dates is that familiar sports web site… TheSun.co.uk

So, 1 all.

Before Brisbane I thought 3-0 to Aust. After Adelaide I thought 3-0 to England.

After Perth…yea…we actually took 20 wickets in a match…I think 2-1 to Aust…(just because of home ground advantage).

For those coming to Sydney…I look forward to welcoming you.

As for the Ocean swims….I have to wait until 2nd Jan for the Newport Beach swim:

http://www.oceanswims.com/Events.asp?EventID=39

Have a very merry X-mas all. (irrespective of legal advice),

S

http://clearingandsettlement.blogspot.com/

Markets

Last Bidder Standing: BATS in Exclusive Talks to Buy Chi-X Europe

Chi-X Europe, owned by a consortium of the world’s largest investment banks, selected BATS over rival bids from Nasdaq OMX, NYSE Euronext and Direct Edge.

http://www.securitiestechnologymonitor.com/news/-26644-1.html?ET=securitiesindustry:e2208:171544a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=SIN_DailyClose__122210

BATS offers $300 million for Chi-X Europe, sources say
BATS Global Markets is in exclusive takeover talks with Chi-X Europe and reportedly offered about $300 million for the second-largest alternative trading system in Europe. "BATS Global Markets and Chi-X Europe today announced the two companies have entered into exclusive negotiations regarding the potential sale of Chi-X Europe to BATS," according to a statement from the companies. "There will be no further public statements at this time." The Wall Street Journal/Dow Jones Newswires (22 Dec.) , Bloomberg (22 Dec.)

Colt Sizes Up MarketPrizm Buy

Quote MTF aims to seal liquidity deals by April 2011

http://www.thetradenews.com/trading-venues/mtfs-ecns/5415

Liquidnet Loses Patent Infringement Lawsuit Against ITG

A New York district court judge ruled that Investment Technology Group, a New York based financial technology firm, did not infringe a patent held by rival Liquidnet Holdings, paving the way for ITG to pursue a countersuit against Liquidnet.

http://www.securitiestechnologymonitor.com/news/-26645-1.html?ET=securitiesindustry:e2209:171544a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=STM_BNA_08302010_122210

Asian Explosion
Consolidation and technological advancement among stock exchanges in Southeast Asia could spark massive growth in trading volumes throughout the region.

http://iimag.ebookhost.net/custom/bloomberg/6/ebook/1/index.php?LS=EMS472861

As 2010 gives way to 2011, buy-side trading firms can look back at a year characterised by sweeping change across Asia's equities markets. New platforms have been launched, new regulations passed and new markets opened up. Technology too has taken several steps forward over the last 12 months to link together Asia's emerging trading landscape.

http://www.thetradenews.com/regions/asia/5535

Dubai silent on report it is in talks to sell LSE stake
Reuters Finance News (EU) via Yahoo! UK & Ireland Finance
DUBAI (Reuters) - Abu Dhabi is in talks to buy a 20 percent stake in the London Stock Exchange held by indebted neighbour Dubai, the Sunday Times said in an unattributed report. Officials from Dubai and ...
http://jlne.ws/eJsXlx

Clearing

Nasdaq Fights Bank "Cartels" in Battle for Clearinghouse Control

http://www.advancedtrading.com/articles/228800893?cid=nl_at_daily

Capitalisation of bank exposures to central counterparties - consultative document

The Basel Committee issued today a consultative paper on the Capitalisation of bank exposures to central counterparties. These proposals relate to the capitalisation of bank exposures to a central counterparty - CCP - and, in particular, default fund exposures. Generally speaking, the Committee proposes that trade exposures to a qualifying CCP will receive a 2% risk weight.

http://www.bis.org/publ/bcbs190.pdf

CME Clearing gets approval from FSA

CME Clearing Europe, a wholly-owned subsidiary of CME Group, today announced that it is approved as a Recognised Clearing House (RCH) by the Financial Services Authority (FSA) of the United Kingdom. Barclays Bank PLC and J.P. Morgan will act as the first settlement banks for CME Clearing Europe and will be a central part of its payment infrastructure. J.P. Morgan will also provide custody and liquidity services.

http://www.finextra.com/news/announcement.aspx?pressreleaseid=37244

(Reuters) - The U.S. Commodity Futures Trading Commission on Thursday unveiled its seventh set in a series of rules as it works to take oversight of the $600 trillion over-the-counter derivatives market.
http://www.reuters.com/article/idUSTRE6B835620101209

US rules for OTC derivatives venues welcomed by industry

Market participants have welcomed new rules proposed by the Commodities and Futures Trading Commission (CFTC), the US derivatives regulator, for exchange trading of over-the-counter (OTC) derivatives.

Following an open meeting on 16 December, the CFTC has laid out the core principles and other requirements for swap execution facilities (SEFs), a new type of trading venue specifically designed for executing derivatives transactions currently executed bilaterally.

http://www.thetradenews.com/regions/americas/5523

Ryan's letter to the editor offers clearinghouse background
Tim Ryan, president and CEO of SIFMA, explains in a letter to the editor of the New York Times, in response to the paper's article "A Secretive Banking Elite Rules Derivatives Trading," how the situation came to be. "It's important to remember that derivatives dealers who are clearinghouse members put significant capital at risk to guarantee clearinghouse obligations," Ryan writes. "If one member fails to perform, other members have to make good. With so much at stake, members must take an active role in managing a clearinghouse's risks. Moreover, risk committees do not set derivative prices or establish trading practices." The New York Times (free registration) (12/18)

Nasdaq strives to work its way into derivatives business
Nasdaq OMX has been trying to gain a bigger piece of the derivatives market by encouraging the Commodity Futures Trading Commission or Congress to restrict ownership of swaps clearinghouses by banks. Much of Nasdaq's efforts have been behind the scenes, since the company needs to keep the banks as customers if its clearinghouse is to succeed. Bloomberg (12/20)

ITG cuts cost of trading with settlement aggregation service

Agency broker and technology supplier ITG has acquired the Clearvoyance settlement aggregation software from systems vendor ESP Technologies.

http://www.thetradenews.com/operations-technology/clearing-settlement/5519

Spanish CCP a step closer

http://www.thetradenews.com/trading-venues/exchanges/5527

Birley leaves LSE amid strategy disagreement
By Jeremy Grant in Zurich
FT.com / FT Trading Room / Clearing & Settlement
Patrick Birley, hired only weeks ago by the London Stock Exchange to head up a new clearing initiative, has left the exchange amid disagreements with top management over strategy, three people familiar with the matter said on Friday.
http://jlne.ws/hAbkrz

Hong Kong SFC Announces Plans to Build Regulatory Regime for OTC Derivatives

The Hong Kong Securities and Futures Commission (SFC) welcomed the Hong Kong Monetary Authority (HKMA) and Hong Kong Exchanges and Clearing Limited (HKEx) announcement to respectively establish a trade repository (TR) and a central counterparty (CCP) for over-the-counter (OTC) derivatives transactions. The SFC pledged to build a regulatory regime for OTC derivatives markets that would cover the reporting of OTC derivatives transactions, particularly those which are relevant to the Hong Kong market, to the TR and the clearing of standardized OTC derivatives transactions through an authorized CCP. For now, the reporting and clearing requirement will be applied to interest rate swaps and non-deliverable forwards. The SFC plans to issue a consultation on the matter by the third quarter of 2011.

http://www.sfc.hk/sfcPressRelease/EN/sfcOpenDocServlet?docno=10PR145

Policy

A MODERN MARKET MAKER’S (GETCO’s) PERSPECTIVE ON THE EUROPEAN FINANCIAL MARKETS REGULATORY AGENDA

http://www.getcollc.com/images/uploads/Final_EU_Paper.pdf

Full details of GETCO’s responses to regulatory consultations can be found on our website at

www.getcollc.com

Fed decides to continues a programme for other central banks
During the financial crisis, the Federal Reserve launched a programme that allows foreign central banks to borrow US dollars. Amid fresh financial woes in Europe, the Fed has decided to extend the programme through August. It was poised to expire next month. "It was premature to allow these arrangements to expire, particularly given the sovereign-debt situation in Europe," said Dana Saporta, an economist at Credit Suisse. The Wall Street Journal (22 Dec.) , Global Financial Strategy (21 Dec.)

FINRA will bolster surveillance of high-frequency trading, CEO says
Richard G. Ketchum, chairman and CEO of the Financial Industry Regulatory Authority, said high-frequency trading firms can expect more surveillance in the new year. Ketchum noted an enforcement case recently brought against Trillium Brokerage Services. He called it a "good example" of what high-frequency trading companies can expect. The Wall Street Journal (12/20)

Australian Treasury Announces Reform Package

The Australian Treasury introduced the Competitive and Sustainable Banking System package that proposes three broad streams of reform to do the following: empower consumers, help smaller lenders put more competitive pressure on the “big banks”, and secure the financial system. The plan introduces a new pillar in the banking system based on the combined competitive power of mutual credit unions and building societies and accelerates the development of a “bullet bond” structure for RMBS issuance to strengthen and diversify RMBS funding for smaller lenders. Â It also proposes allowing all banks, credit unions and building societies to issue covered bonds and developing a "deep and liquid corporate bond market."

http://www.treasury.gov.au/banking/content/default.asp

Trading firms campaign against EU dark-pool restrictions
EU officials are asking for comments on proposals that would restrict dark pools run by investment banks that match large share trades. Major share-trading firms are lining up the support of fund managers as they oppose the controversial limits. "The challenge now is to get everyone pushing in the right direction and to ensure that we are not overtaken by regulation," said Tony Whalley of Scottish Widows Investment Partnership. Reuters (22 Dec.)

Stuff

JPMorgan acquires news London HQ

J.P. Morgan today announced major real estate investments in London, including the acquisition of 25 Bank Street in Canary Wharf, which will become the new European headquarters of its Investment Bank in 2012. The firm has also agreed to purchase 60 Victoria Embankment, a London building that the firm has been leasing since 1991 and that currently accommodates the firm's Treasury and Securities Services division.

http://www.finextra.com/news/announcement.aspx?pressreleaseid=37251

JPMorgan Chase Buys Lehman's Old Headquarters in London

J.P. Morgan has just forked over $769 million to buy 25 Bank Street in Canary Wharf, home to the former home of the Lehman Brothers in London, to house its entire European investment banking division. The division, now located in four separate buildings will move to the new location in 2012.

http://www.securitiestechnologymonitor.com/news/-26628-1.html?ET=securitiesindustry:e2208:171544a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=SIN_DailyClose__122210

Living on the edge

Low-lying deltas are home to half the world’s population and much of its wealth, but they are also on the frontlines of climate change. And the problems they face are significant.

http://www.climatespectator.com.au/commentary/living-edge?utm_source=Climate+Spectator+daily&utm_campaign=226df2d636-&utm_medium=email

Six Ways to Refuel Your Energy Every Day

1. Make sufficient sleep your highest priority.

spend a few minutes reviewing what's on your mind before you go to sleep, and then write down anything that's worrying you. What you're doing is effectively parking these concerns so that they don't end up keeping you from falling asleep, or back asleep in the middle of the night.

2. Take a renewal break at least every ninety minutes.
3. Keep a running list of everything
— literally everything — that you want or need to do.

4. Run up your heart rate or take a nap in the early afternoon.

5. Practice appreciation — and savoring.

6. Develop a transition ritual between work and home.

http://blogs.hbr.org/schwartz/2010/12/six-ways-to-refuel-your-energy.html

I invent nothing, I rediscover.

Rodin

Keep your mouth shut and you will never bite off more than you can chew.

WPG

Nothing is more costly, nothing is more sterile, than vengeance.

Winston Churchill

The first wealth is health.

Ralph Waldo Emerson

Progress is impossible without change; and those who cannot change their minds cannot change anything.

George Bernard Shaw

It is not necessary to change. Survival is not mandatory."

--W. Edwards Deming,
American statistician, professor, author, lecturer and consultant

Scott Riley

Business Development

ABN AMRO 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.abnamroclearing.com

Thursday, December 23, 2010

News 101217: ASX-SGX, debt trading in Aust, Optimise, Direct, Iop....and happiness!


Well, blogging has been taking a bit of a back seat during a hectic end of year here.

We’ve been bombarded with materials on local market reform.

Couple hundred pages from ASIC: http://www.asic.gov.au/asic/ASIC.NSF/byHeadline/Market-structure

Along with Competition queries about the ASX / SGX combination: http://www.accc.gov.au/content/index.phtml/itemId/962113

And an assessment on ASX too: http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/rep222.pdf/$file/rep222.pdf

Most FAQs centre around will the ASX deal get the go ahead.

Of course I don’t know…but I’d have to agree with local media speculation…the deal won’t go ahead “in its current form”.

“It [the merger] still needs the support of Mr Swan, the Foreign Investment Review Board, the Reserve Bank of Australia, the Australian Securities and Investments Commission, and parliamentarians, several of whom are opposed to the sale.

http://www.smh.com.au/business/asx-takeover-faces-political-hurdles-20101216-18z20.html

Just on the political level the current coalition government is dependent on just 3 ‘independents’ who have crossed the floor.

http://www.aph.gov.au/house/work/seating.pdf

Irrespective of the topic, this government is about opposition…you’re black, I’m white….politics…not national policy.

In terms of the FIRB approval, what I think is an extremely poor paper has been published:

http://www.asxgroup.com.au/media/PDFs/20101206_ASX_SGX__AccessReport.pdf

One of the core principles promoted in the report is that because the Aussie government approves market operators….market operators will always act in the national interest. By the same logic, does that mean because all banks are given licenses by their national governments all banks therefore act in the national interest? Such poor logic immediately discredits the report in my view…(mind you, I’ve not finished reading it so supporting documents in the appendices may change my mind…but I very much doubt it)

The other ‘little gem’ is the defined term “target break fee” means A$ 30 million.

(see also 8.5 on page 41 of combination document)

I don’t think the ASX would make a 30 million dollar “bet” on a deal they did not have some confidence would conclude.

I assume they have done their lobbying well in advance.

http://www.asxgroup.com.au/media/PDFs/20101025_asx_sgx_mia.pdf

“As I move around various Canberra circles I am getting a clear message – in its present form, the Singapore Stock Exchange’s takeover bid for the Australian Stock exchange is set to be rejected.

A lot of lobbing and pressure will be applied to the government between now and decision making time and the government may change its mind. But if a decision was to be made today, the Singapore-ASX merger would be rejected. The final decision may see approval subject to enormous qualification, possibly including the location of the head office. …

http://www.businessspectator.com.au/bs.nsf/Article/ASX-AXA-AMP-Asia-SGX-shares-pd20101217-C7RFQ?OpenDocument&src=eiw&ir=4

So, a deal may well get done, just not in it’s current form.

The end result of course, is that Australia…and Asia…needs fragmentation / competition just as much as it ever did.

On other news:

….whoops I’ve gotta go.

It’s a sunny arvo in Sydney and at 6pm I can still watch a few overs (thanks to the 3hr time difference to Perth).

I never expected Aust to be taught a lesson in cricket from England….so I guess I better go and watch and learn.

Have a great w/end all.

(No competitive ocean swims on this w/end L)

S

http://clearingandsettlement.blogspot.com/

Platforms

Goldman teams up with NYSE Euronext in trading venture

http://www.ft.com/cms/s/0/cce27880-061a-11e0-976b-00144feabdc0.html#ixzz183An7krC

4 U.S. Exchange Operators Interested in Chi-X Europe

NYSE Euronext, Nasdaq OMX Group, BATS Global Markets and Direct Edge Holdings all have submitted offers for Chi-X Europe, the leading provider of cross-continental electronic trading on the other side of the Atlantic.

http://www.securitiestechnologymonitor.com/news/chi-x-europe-nyse-nasdaq-bats-direct-edge-offers-four-26552-1.html?ET=securitiesindustry:e2196:171544a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=SIN_DailyClose__121310

ASIC report 222: ASIC market assessment report on ASX group.

http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/rep222.pdf/$file/rep222.pdf

ASX Launches Trading Platform Powered by NASDAQ OMX's

The Australian Securities Exchange (ASX) has launched its next generation trading system, ASX Trade, providing the fastest integrated equities and derivatives trading platform in the world.

ASX Trade went live on Monday, 29 November 2010 and follows the upgrade of the ASX Trade 24 futures platform on 11 October 2010

latency today is 100 times faster than it was only two years ago, having been improved from 30 milliseconds in 2008 to 300 microseconds today. The improved latency has been coupled with increased capacity, rising from 20,000 orders per second before the upgrade to 100,000 orders per second now.

http://www.asiaetrading.com/asx-launches-next-generation-trading-platform-powered-by-nasdaq-omx%E2%80%99s-genium-inet/

Chi-X Japan Passes ¥50 Billion Monthly Turnover Milestone

Chi-X Japan Limited, a wholly-owned subsidiary of alternative trading venue operator Chi-X Global, announced December 2 that turnover on its platform reached ¥50.2 billion in November

http://www.asiaetrading.com/chi-x-japan-passes-%C2%A550-billion-monthly-turnover-milestone/

New LME-SGX Metal Futures Receives US Regulatory Go-Ahead

Singapore Exchange (SGX) is pleased to inform that eligible institutions and market participants in the United States (U.S.) can readily trade the LME-SGX metal futures for copper, aluminium..

http://www.asiaetrading.com/new-lme-sgx-metal-futures-receives-us-regulatory-go-ahead/

Debt trading in Aust

He (Swan MP, Treasurer) might also see the creation of a new securities trading platform, albeit one for trading debt, as a way of compensating for the loss of local ownership of ASX and a way to encourage a new listed securities platform to eventually develop into a fully-fledged multi-securities competitor.

http://www.businessspectator.com.au/bs.nsf/Article/Wayne-Swan-ASX-SGX-CGS-corporate-bonds-pd20101214-C57FK?OpenDocument&src=pmm

Press release: http://www.treasurer.gov.au/DisplayDocs.aspx?doc=pressreleases/2010/091.htm&pageID=003&min=wms&Year=&DocType=0

Treasury paper: http://www.treasury.gov.au/banking/content/default.asp

BURGUNDY MAKES VERIZON DATA CENTRE COMPLAINT Burgundy has reported Verizon to Sweden's competition authority, with the Nordic multilateral trading facility claiming it has been blocked from using the US firm's network infrastructure.

Burgundy inked a deal with Verizon in September but the American firm later cancelled because it has a "one exchange" policy on data centres.

Full story: http://www.finextra.com/news/fullstory.aspx?newsitemid=22101

BLUENEXT LAUNCHES SPOT ERUS USING TRAYPORT

http://www.finextra.com/news/announcement.aspx?pressreleaseid=37183

Omega ATS to Offer Fixed Income Trading

Omega ATS, a high speed alternative trading platform for Canadian exchange-listed stocks, announced that it will now allow fixed income trading on the system. The move makes Omega ATS the first Canadian marketplace to provide open access for trading the most liquid fixed income securities

http://www.advancedtrading.com/articles/228800617?cid=nl_at_daily

PLUS pushes towards profit

http://www.thetradenews.com/trading-venues/exchanges/5501

Deutsche Börse begins roll out of new IT platform

Deutsche Börse Group has set out the schedule for its new Optimise trading architecture roll-out, with the first implementation at the International Securities Exchange (ISE), a US subsidiary of Eurex, the derivatives exchange joint venture between Deutsche Börse and SIX Swiss Exchange.

ISE will begin putting Optimise in place as the base for a new options trading system during April 2011 and will continue into July as both ISE's primary and secondary markets migrate to the new platform. Initially planned for Q4 2010, ISE completely revised the Optimise implementation timetable based on input from its members. The exchange says the system will now provide greater system functionality from day one of the Optimise launch.

Based on technology giant IBM’s WebSphere MQ Low-Latency Messaging system, Optimise is designed to offer processing of trades at sub-millisecond speeds and has the capacity to process one million trades a second.

A timetable for implementation across Eurex and Deutsche Börse’s equities platform has not yet been set.

http://www.thetradenews.com/trading-venues/exchanges/5485

DIRECT EDGE TAPS MICROSOFT FOR TRADING PLATFORM

US exchange operator Direct Edge has deployed technology from Microsoft and Informatica as the basis for its trading platforms.

In contrast to the Direct Edge implementation, the London Stock Exchange is currently in the process of ditching its Microsoft-based platform in favour of a Linux system from recently acquired MillenniumIT.

More on this story: http://www.finextra.com/news/fullstory.aspx?newsitemid=22106

SIX SWISS EXCHANGE REVAMPS PLATFORM

http://www.finextra.com/news/announcement.aspx?pressreleaseid=37193

NASDAQ OMX BUYS REAL-TIME RISK SPECIALIST FTEN Nasdaq OMX has agreed the acquisition of real-time risk management technology provider FTEN. Financial terms of the deal were not disclosed.

Full story: http://www.finextra.com/news/fullstory.aspx?newsitemid=22107

NASDAQ OMX TO BUY BACK $497M IN SHARES FROM BORSE DUBAI

http://www.finextra.com/news/announcement.aspx?pressreleaseid=37229

Clearing

CCPs upbeat about interoperability for 2011

http://www.thetradenews.com/asset-classes/equities/5510

CONFIDENTIAL CARBON TRADING DATA POSTED ONLINE A firm providing marketing services for LCH.Clearnet has mistakenly posted confidential carbon emission allowances information online, according to the Financial Times.

Full story: http://www.finextra.com/news/fullstory.aspx?newsitemid=22055

MarkitSERV Provides Gateway for Central Clearing Via SGX and CME Clearing
Offers connectivity to each of the six major CCPs currently accepting OTC derivatives trades.

http://www.advancedtrading.com/articles/228500055?cid=nl_wallstreettech_daily

Credit Suisse Joins SGX to Clear OTC Financial Derivatives

Singapore Exchange (SGX) today welcomes Credit Suisse AG to its SGX AsiaClear service as SGX Bank Clearing Member for the clearing of over-the-counter (OTC) traded financial derivatives...

http://www.asiaetrading.com/credit-suisse-joins-singapore-exchange-to-clear-otc-financial-derivatives/

DTCC Unveils OTC Derivatives Matching Service; G14 Dealers Go Live
The Depositary Trust & Clearing Corp. announced the launch of a global over-the-counter equity derivatives ...

http://www.advancedtrading.com/articles/228800227?cid=nl_wallstreettech_daily

Policy

ASIC's still groping in the dark

STEPHEN BARTHOLOMEUSZ As Chi-X prepares to enter the Australian market and high-speed trading grows, regulators urgently need to put in place some form of emergency response plan if we are to avoid a US-style 'flash crash' here.

http://www.businessspectator.com.au/bs.nsf/Article/ASIC-ASX-Chi-X-Nomura-high-frequency-algo-pd20101201-BQ32D?OpenDocument&src=pmm

ESMA is set to become operational by 1 January 2011, replacing the Committee of European Securities Regulators (CESR)

http://www.thetradenews.com/regions/europe/5429

MEPS SET OUT MIFID II STANCE

http://www.finextra.com/news/announcement.aspx?pressreleaseid=37177

FSA unveils strategy for dealing with HFT

Justham identified four areas of HFT that the FSA is monitoring in detail: market efficiency, in terms of price formation and the quality of liquidity; resilience, particularly in light of the US ‘flash crash’ on 6 May; whether market abuse can be effectively monitored in a high-speed environment; and the ability to retain a level playing field across market participants.

http://www.thetradenews.com/trading-execution/algorithmic-trading/5426

HMT Publishes Responses to Financial Regulatory Framework Consultation

HM Treasury published a summary of responses to its July consultation document, A new approach to financial regulation: judgment, focus and stability, along with all formal, written responses received. The document confirms the Government’s decisions, that the UK Listing Authority will remain within the consumer protection and markets authority (CPMA) and that the FSA’s criminal enforcement powers in relation to market conduct will be retained within the CPMA. It also sets out the Government’s preliminary conclusions on key themes raised by respondents to the consultation. The Government will present more detailed policy and legislative proposals, informed by responses to the consultation, for further consultation early in 2011. They also intend to introduce legislation in mid-2011 and a new regulatory framework is anticipated to be in place by the end of 2012.

http://www.hm-treasury.gov.uk/consult_financial_regulation.htm

Canada sets out position on dark pools

Entitled '23-405 Dark Liquidity in the Canadian Market', the paper is the next step in a process that began with a joint consultation paper on issues surrounding dark liquidity in 2009.

http://www.thetradenews.com/trading-venues/dark-pools/5430

Wall Street Pay

Size, Structure and Significance for Shareowners

http://www.cii.org/UserFiles/file/CII%20White%20Paper%20-%20Wall%20Street%20Pay%20FINAL%20Nov%202010.pdf

The Bulletin for the December Quarter 2010 has been released by the Reserve Bank of Australia today.

http://www.rba.gov.au/publications/bulletin/2010/dec/index.html

Banks: RBA Explains The Changes In Bank Funding

Do you think the Reserve Bank is trying, very hard, to send a message to politicians, bankers, customers and others demanding that something be "done" about these big banks? On Monday RBA Governor Glenn Stevens told the first day of the Senate banking inquiry

http://www.aireview.com.au/index.php?act=view&catid=8&id=12362&setSub=1

Stuff

Australian Unity and Deakin University released the results from Australia’s most comprehensive study ever into happiness and wellbeing last week. The report spanned ten years of research, 24 surveys, with responses from more than 80,000 participants.

So what then is the key to a happy life? According to the report, the answer is to invest in your relationships and community, just as much as you invest in the markets. Plus, don’t forget to have a drink while you do it. The study found that people who drink every day have a very high rate of wellbeing, while those that don’t drink at all, came last in the category.

http://www.cnbc.com/id/40409445/Want_Happiness_Invest_in_Relationships_Not_Just_Markets

Pure brew sells for $1850 a bottle

http://www.smh.com.au/executive-style/top-drop/pure-brew-sells-for-1850-a-bottle-20101214-18w8g.html


"Current Perspectives on Modern Equity Markets: A Collection of Essays by Financial Industry Experts”

examines how competition, technology and recent innovations in U.S. equity markets have affected both institutional and retail investors. Fourteen industry leaders and authorities contributed chapters to the book, which was sponsored by Knight. To order copies of the book, please email CMIR@knight.com.

http://www.knight.com/newsroom/pdfs/ModernEquityMarkets.pdf

BNP Paribas to Join NZX Derivatives Market as General Clearing Participant

NZX is pleased to announce that BNP Paribas will become a General Clearing Participant for the NZX Derivatives Market General Clearing Participants provide the vital link from customer to...(more)

http://www.asiaetrading.com/bnp-paribas-to-join-nzx-derivatives-market-as-general-clearing-participant/

Deutsche Bank is rolling out core technology from Tata Consultancy Services (TCS) across its Global Transaction Banking (GTB) business.

Full story: http://www.finextra.com/news/fullstory.aspx?newsitemid=22099

Scott Riley

Business Development

ABN AMRO 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.abnamroclearing.com