Week 51-2011: Platforms, Trading, Clearing & Settlement, Polic
Platforms
US sets terms for Deutsche-NYSE merger
The Justice Department issued a consent decree that allows the merger to proceed but with Deutsche Boerse required to divest itself of an interest it holds in a rival U.S. stock exchange, Direct Edge.
That stake is held by the International Securities Exchange, an options exchange operator based in New York. ISE in turn is wholly owned by Eurex, the derivatives exchange of Deutsche Boerse.
ISE has held its 31.54% minority stake in Direct Edge since 2008. ISE will have two years from the closing of the merger to complete the sale.
BATS Proposes Rewards Program for Market Makers
The exchange operator said through the BATS CLP program, liquidity providers would compete for a daily reward by posting competitive quotes in a stock or exchange-traded product. The liquidity providers, who must be a registered market maker on BATS and be classified as a CLP for a listing - will be rewarded based on their continuous daily quote size at the National Best Bid/Offer, BATS said
HKEx Publishes Market Statistics 2011 in Response to Media Requests http://www.hkex.com.hk/eng/newsconsul/hkexnews/2011/1112202news.htm
17 page breakdown here:
http://www.hkex.com.hk/eng/newsconsul/hkexnews/2011/Documents/20111220news.pdf
TMX GROUP BUYS 16% STAKE IN BERMUDA STOCK EXCHANGE
http://www.finextra.com/news/announcement.aspx?pressreleaseid=42499
Robert Elstone to join Westpac board
Intersuisse to buy Austock brokerage
Last year the broker hired the former head of Bank of America-Merrill Lynch in Australia, Paul Masi, as its chief executive
For Intersuisse, which specialises in resource and energy stocks, the acquisition will give it broader distribution for its Singapore-based backer, Phillip Brokerage
Phillip, which has operations in 12 countries mostly in Asia, has a 46 per cent stake in Intersuisse.
http://www.smh.com.au/business/intersuisse-to-buy-austock-brokerage-20111219-1p2f2.html#ixzz1hKNwrZBJ
Clearing
Markit and Euroclear sign memorandum of understanding
Markit and Euroclear Bank have signed a memorandum of understanding to jointly create an operational infrastructure to support the use of loans as collateral in financing transactions.
http://www.securitieslendingtimes.com/securitieslendingnews/article.php?article_id=217910
Policy
BoE and FSA warn about drawbacks of risk-prevention tools
The Bank of England and the UK Financial Services Authority released a paper that highlights challenges faced by regulators as they strive to prevent a repeat of the 2008 financial crisis. The paper explains drawbacks of tools that the central bank might use to keep excessive risk from building up in the financial system.
Instruments of macroprudential policy
http://www.bankofengland.co.uk/publications/other/financialstability/discussionpaper111220.pdf
*** 42 pages of macroprudential policy reading here. (not yet available on eReaders / Kindle for holidays).
2011 In Review: Four Hard Truths
First, post the 2008-09 crisis, the world economy is pregnant with multiple equilibria—self-fulfilling outcomes of pessimism or optimism, with major macroeconomic implications.
Second, incomplete or partial policy measures can make things worse.
Third, financial investors are schizophrenic about fiscal consolidation and growth.
Fourth, perception molds reality.
http://blog-imfdirect.imf.org/
EQUITY CAPITAL MARKETS UPDATE | Treasurer releases discussion paper on developing a retail corporate bond market
http://www.blakedawson.com/Templates/Publications/x_publication_content_page.aspx?id=64669
*** Nice wrap up of the consultation document.
Discussion Paper - Development of the Retail Corporate Bond Market
http://www.treasury.gov.au/contentitem.asp?NavId=&ContentID=2266
Participants
Merrill Lynch to Produce Thunder for Asian Trading
Bank of America Merrill Lynch said it will market a broker-neutral trading platform named Thunder, to institutional customers in Asia.
The platform is based on in-house electronic tools, as well as trading technology from Tora Holdings, a supplier of high-speed trading systems based in Tokyo and Hong Kong.
Merrill Lynch’s Thunder platform will use multi-broker, multi-market, multi-asset electronic trading technology from Tora.
UBS bonus deal
A unique deal to protect part of the annual bonus pool at UBS Australia expires within weeks
Under the terms of that deal, UBS agreed to let the Australia unit allocate a certain percentage of its revenue stream toward year-end pay, the sources say. Annual country revenues and bonus pools are normally kept separate at banks.
http://www.smh.com.au/business/ubs-bonus-deal-opens-pool-to-predators-20111219-1p19r.html#ixzz1gyA7EzUp
PENSON BRINGS IN ADVISERS ON SALE OF CANADIAN UNIT
http://www.finextra.com/news/announcement.aspx?pressreleaseid=42495
Penson to close UK arm
Penson Worldwide has announced plans to close its UK operation over the next few months, and to sell certain of the operation’s assets to third parties.
http://www.securitieslendingtimes.com/securitieslendingnews/article.php?article_id=217911
BLOOMBERG: London Brokers Shrink as Debt Crisis Bites
In the past month, Altium Capital closed its securities unit. Evolution Group Plc (EVG), Merchant Securities Group Plc, Arbuthnot Securities Ltd. and Collins Stewart Hawkpoint Plc have all accepted takeover offers from larger competitors.
