Category Archives: money

Volume of deal messages tests Europe exchanges


Volume of deal messages tests Europe exchanges – FT.com

Extreme market volatility on Friday exposed the vulnerability of electronic trading systems across Europe as record numbers of messages carrying dealing instructions and market data knocked out systems in Italy and the Nordic region and froze the provision of quotes retail brokers in the UK.

One senior trader said: “The amount of [trade] executions generated is absolutely huge. We are breaking all sorts of records today, like numbers of messages generated.”

Messaging is the lifeblood of the world’s trading systems. A message – whether market data or a trade – is sent across trading platforms and fibre optic cables.

We’re beginning to see the European market infrastructure, especially around some exchanges, start to creak. We are having a tough time with price discovery, that is a concern especially as the market is moving around so rapidly.”

For a second day the Milan bourse in Italy had problems with market data for its blue-chip FTSE MIB 30 index and forced BATS Europe, a pan-European trading platform that competes with the Milan bourse, to take Italian market data out of its feeds.

Nasdaq OMX also experienced problems at its derivatives market: “We have issues with pricing updates on the Nordic derivatives markets and are working hard now to troubleshoot the issue,” a spokesman said.

Retail stock brokers in the UK struggled to obtain electronic quotes from market makers as Proquote, the LSE-owned system, suffered problems in early morning trading between 8am and 9am.

“We were asking for a quote and getting nothing back,” said John Douthwaite, chief executive of SimplyStockbroking, estimating that the broker had been unable to obtain electronic quotes for 40 minutes. The firm had reverted to trying to obtain quotes from market makers by telephone, he said, with inevitable delays for clients.

US-based Options Price Reporting Authority, the world’s largest single largest data feed, has estimated messages per second had hit an all-time peak of 1.5m in September last year from virtually nothing in 2003, and projects the figures to mushroom further in coming years.

Read the whole story on the FT: Volume of deal messages tests Europe exchanges – FT.com

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Italian Treasury "Discovered" Larger Cash Pile Than Expected; Likely To Withdraw From More If Not All 2011 Bond Auctions | ZeroHedge


Italian Treasury “Discovered” Larger Cash Pile Than Expected; Likely To Withdraw From More If Not All 2011 Bond Auctions | ZeroHedge

you gotta love it when you find some cash in your pocket….
“And the news just gets uber-surreal. According to a Reuters report, the Italian Treasury has a ‘larger cash pile than generally perceived according to sources.’ As a reminder this is precisely the excuse that Italy used when it scrambled to cancel medium and long-term auctions for late August as was previously noted. Which can only mean one thing: in order to prevent more ongoing routs, Italy will likely now withdraw from all bond auctions for the ‘foreseeable future’ in order to not give the market a chance to do some real price discovery. Sure enough, the subsequent Reuters headline says that the ‘Italian Treasury’s cash pile is enough to last most of 2011.’ Translation: while Greece, Portugal and Ireland are unable to access capital markets, Italy, as we predicted, has just self-imposed a capital markets exile likely until the end of the year.”
Italian Treasury “Discovered” Larger Cash Pile Than Expected; Likely To Withdraw From More If Not All 2011 Bond Auctions | ZeroHedge:

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>Mongolia plans to issue first sovereign bonds


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The money has not yet come in, but the debt has already started…

Mineral-rich Mongolia plans to issue first sovereign bonds – FT.com

Mongolia plans to issue its first sovereign bonds this month, marking a milestone for capital markets in this resource-rich democracy.


The newly created Development Bank of Mongolia will issue $700m in sovereign bonds to fund lending programmesin areas that include infrastructure, industry, energy and roads. 

the issuance would take place in tranches beginning this month, with the first slice likely to be $100m.

The bond will be in tugrik, the Mongolian currency, which has appreciated by 1.6 per cent against the dollar since January.
investment in the mining sector has soared in the past two years along with global commodities prices.

Government revenues from the mining sector are set to jump next year as the Oyu Tolgoi copper and gold mine comes online, and politicians in Ulan Bator are looking for ways to manage the coming influx into state coffers.

The Development Bank is being set up with training from the Korean Development Bank and the Development Bank of Japan. 
yields on the bonds could be quite low, perhaps 6-8 per cent.


Mongolian sovereign debt has a B1 non-investment grade rating from Moody’s


Read the full article here: FT.com / Capital Markets – Mineral-rich Mongolia plans to issue first sovereign bonds

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