Community

This has to be a step in the right direction but plenty of scope for revision i suspect. I cant really doubt the benefits of this move but there is much more that needs to be done to create a unified structure for delivery that includes CCPs and treasury operations of banks. The Post Trade Forum is tackling some of these issues and others in the future debates . Please see the April debate on Finextra Post Trade Forum link or the Post Trade Forum on Linkedin 

Thats really informative Roy. We often hear about the risks in this space and the media and the uninformed will say its the devils work. Do you have any figuers that show the overall financial upside for investing institutions?

Bo you cant take it that the banks see the break up as real possibility and the disaster you mention is real in these scenarios costs of IT are not a consideration. There are far bigger concerns. Banking value is not the issue when survival is the main focus

A total breakdown of the economy is what we are looking at Bo. While Europe burns the plliticians are fiddling and i am afraid their inert ability to agree a plan will cause countries to depart leaving a split between the richer and the poorer. So breaking up plans by banks looks to be a prudent measure. Its when you hear the detail of the plans that the horror of what is in front of us becomes more frightening

Good news and inventive too. The Cloud is the way to go for sure and the hurdles that are needed to be overcome are really small when you think about it. Watch out for a Cloud service near you. Its coming

Could be mate , could be Thanks for the comment

I was invited to see the building of a new Data Centre in Romford the other week and was blown away by the state of the art facility including just about the best security i have seen in Financial Services. With the exponential growth of mobil applications the rise and rise of outsourced data has to be a must for Banks and others. Time to take off the missguided shackles of control by in-house and take advantage of these brand new facilities. This news looks just another motivation to me

I can tell you're a tad upset but also agree with some of your points. In my view Short Selling is a risky business and should be restricted to market makers who use their own balance sheet. Not some poor investor ignorant of the risks.

Market makers supply liquidity to the market. So when no investor is buying or selling the market maker will. This is suplying liquidity and what Jobbing was before Big Bang and the Banks took advantage

For suplying liquidity and risking their money market makers should be the only business that can sell short or borrow stock. A return to pre Big Bang. At a stroke this would eliminate all the leveraged products like hedge funds and other derivatives which cause so much volatility and in fact reduce liquidity.

But that wont be popular but would at least put the market back in to balance and create a business that most people will understand.

Do the politicians have the guts to do it?

Now i am confused again! Too much liquidity in the market?

Markets are either liquid or not! There are not degrees of liquidity

The concentration must be to find ways of regulating who is buying products that creat massive shorts and how this OTC products are used. I see no reason why a creator of an OTC should not be procescuted if it is proved detrimental to the market. This could be market manipulation of which there are already regulations but possibly not applied.

This again is an area i will be raising during the Post Trade Forum debate as i do not think that the current push of OTC into clearing houses will acheive all that is expected.

I agree we do not want communist type restrictions but we do need responsible markets that operate for the benefit of society and where risk takers are rewarded for success but not at the expense of investors. Crumbs the markets used to do this really well 

You got it

Market Makers take the risk and need the facility to sell short. By creating liquidity they are facilitating a market without this facility there would be no market and stagnation and you say buyers or investors would be paying a very much higher price. I assume no one wants to pay high prices