Risk-on, risk-off or sideways?
Half-way through 2012, Burgundy has been busy setting up the first Nordic multiple CCP interoperable clearing service, culminating with the successful launch of our third CCP provider last week. We have also signed new trading participants, mainly from the London community, confirming the trust that we have earned from our clients during three years of operation. Looking at the stock market, the last couple of months have been characterized by low volumes and macro-related movements. My personal feeling is that there are floods of cash ready to dive into the pool, once the political situation in Europe stabilizes. We have learnt that when the markets are expected to trade sideways, the unexpected often happens. So, my tip for those of you who are thinking more about the beach rather than the VIX-level is to stay calm and enjoy the sun, but keep an ear close to the market or you may miss the next big move.
Wishing you a nice summer break from your crew here at Burgundy!