Dodd-Frank 2/MiFID 3?

Attending a panel discussion at the International Derivatives Expo 2012 in London – entitled “Getting Ready for OTC Clearing”. Someone asked about the outlook three years hence.


Half jokingly, one of the panelists suggested that we might be staring down the barrel of Dodd-Frank 2 and MiFID 3.

Another said it was impossible to predict – and that if someone had said three years ago there’d be a session today on implementing OTC clearing, that people would have thought the notion crazy.

That a conference like this is held under an agenda of massive regulatory change is surely a harbinger of challenges (and opportunities) ahead.

To adapt the Chinese proverb (or curse): we do indeed live in interesting times.

Trends in e-Commerce and Electronic Trading 2012 – GreySpark Report (plus my thoughts)

GreySpark has just released the results of their Annual e-Commerce Report: ” Trends in e-Commerce and Electronic Trading 2012″.

GreySpark outlines that propositions must now evolve, or sellside franchises will decline. The new regulations have a significant impact on the growth of e-commerce and electronic trading. Continue reading

Another FX ECN to launch – FastMatch

Another FX ECN is set to launch later next month, backed by technology from Credit Suisse , and in partnership with FXCM.

FastMatch is a new Electronic Communication Network (ECN) for foreign exchange trading. FastMatch strives to offer its customers access to large pools of diversified liquidity at unparalleled speed with complete transparency in the optimal location. Continue reading

Apple, Microsoft and Google on the magic roundabout

Apple pioneered personal computers in the 1980s, and for a while dominated the industry.

When it was subsequently left in the dust by Microsoft, Apple’s downfall was widely attributed to its policy of making computers in their entirety, in contrast to Microsoft’s more enlightened strategy of focusing on the high-value operating system and leaving others to build the cheap low-margin hardware.

Following Steve Jobs’ return to the company, Apple triumphantly bounced back to dominate a brand new category: mobile computing. Its iPhone and iPad devices blazed a trail in a market that is set to be far bigger than the PC market ever was.

But soon Google started doing to Apple what Microsoft had done two decades earlier: outselling it by providing just the operating system (Android) for mobile devices, leaving others to compete to provide the hardware. Like Microsoft before it, Google had little compunction about copying Apple’s designs and ideas.

Meanwhile, Microsoft was left stranded in yesterday’s industry, with its Windows Mobile attempts to break into the new handheld market miserably unsuccessful.

So what has Microsoft done now? In case you haven’t seen the news, it has copied Apple by announcing Surface, its own fully integrated tablet computer — hardware and all.

There’s a pleasing symmetry and circularity to this little dance, but, really, what is Steve Ballmer thinking? As Google re-validates Microsoft’s own strategy and Android phones comprehensively outsell iPhones, does Microsoft really think it can innovate a better hardware platform than Apple? If not, why is it trying?

One thing’s for sure: the Microsoft “teaser” video for Surface is just awful.

The Law of Unintended Consequences – example [insert large number here]

I have been following the Basel III regulations for some time. As always with regulation of this breadth & importance, there is lot to discuss but it seems there has been an immediate impact on funding for the “real” economy, i.e., project and trade finance. Continue reading

Compliance dates for clearing delayed again

Just in case you missed it.

Bill at and the Streetwise Professor reported on the further delay of rule creation/implementation.

From Bill’s blog re: EMIR “the target date for compliance with EMIR is not 1st January 2013. The new dates stated by David were: Clearing from 1H 2013, Reporting in 2H 2013, Trading (OTFs) in 2014″

From Yahoo via the Streetwise Professor, “Global regulators said on Wednesday they will issue proposals in coming weeks on rules to encourage banks to put derivative trades through a central clearing house, but they won’t be ready for the G20 summit in June.” The article also has some pithy things to say about clearing and centralisation of risk – definitely worth a read.

And another new FX platform launched – MoltenMarkets

Profit&Loss is reporting that Simon Wilson-Taylor (of StateStreet Global Link), is launching a new “best of breed financial marketplaces to the investment management world” called MoltenMarkets

The platform comes after recent announcements of traFXPure (using Trad-X from Tradition) and the Multi-Bank FX utility FXSpotStream (using smartTrade).

Molten Markets, which is built using Continue reading