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Author Archives: Jon Matte

About Author

Matte is chief operating officer of John J. Lothian & Co. He edits the John Lothian Newsletter, JLN Forex and MarketsWiki.

John Lothian Newsletter: SEC wants banks to say more on European debt exposure; U.S. Inquiry of MF Global Gains Speed; LME’s steel plans tarnished by MF Global Standard

The SEC is pushing banks to provide more data on their exposure to European sovereign debt, on the off-chance that they are swimming with the same sharks that ate MF Global.  Speaking of MF Global, regulators report progress in the “where did the money go” investigation; and (speaking of swimming) the London Metals Exchange find itself in a drained pool, its hopes of forging a steel benchmark futures contract at odds with dramatically lower volume with major player MF Global gone.  In the USA, Walter Lukken has been chosen to lead the Futures Industry Association; and JLN’s Jon Matte is…

John Lothian Newsletter: Global regulators signal leeway on new bank liquidity rules; Mexico’s BMV to be among fastest bourses by May; Wall Street Prepares to Take Sharp Pay Cut Standard

An international regulatory group, while making tough plans for bank liquidity requirements, are also finding time to plan out exceptions to those new rules. Exchange operator BMV proceeds apace with infrastructure upgrades that will make the Mexican exchange one of the fastest in the world. As Q4 earnings, or lack thereof, are tallied for financial firms, a number of those firms are signaling that bonuses may be paid out closer to earth than the stratosphere this year. In Europe, David Cameron continues to declare his opposition to (and willingness to sabotage) a new financial transaction tax. And under pressure from…

John Lothian Newsletter: SEC Blesses CBOE Stock Exchange’s Deal For National Stock Exchange; Fed Forecasts Pose Risk For Soft Interest-Rate Futures Volume; European Banks Prepare More Job Cuts Standard

The U.S. SEC gives a thumbs-up to CBOE Stock Exchange’s plan to take over the National Stock Exchange.  The Federal Reserve’s plan to make an advance timetable for its actions is creating concern that without uncertainty from meeting to meeting, trade in interest-rate futures will suffer.  In Europe, more banks are preparing to shed more jobs; and Hungary, after failing to raise enough money on its own, is now interested in an IMF loan to help pay its bills. Today’s top box contains an article by JLN editor Sarah Rudolph on the CBOE BuyWrite Index.

John Lothian Newsletter: NYSE Euronext Plans New Contracts In Futures Challenge To CME; France to push ahead with ‘Tobin tax’ proposal; China set to bolster short selling Standard

NYSE Liffe U.S. announces new interest rate futures contracts that take aim at CME Group’s market share.  France’s government moves aggressively forward on plans to establish a financial transaction tax well ahead of other nations.  China is set to boost its short-selling industry to expand the depth of its capital markets.  In banking, RBS contemplates shutting down its investment banking business, potentially putting ten thousand jobs on the negative side of that transaction.  And in today’s top box, JJLCO is hiring!  If you’ve got sales chops, high ethical standards and a big sense of humor, we’d love to hear from…

John Lothian Newsletter: CFTC Won’t Delay Position Limits; Regulators inching forward on Dodd-Frank rules; Bring Back Boring Banks Standard

The CFTC rejects the idea of further consideration on position limits, and moves forward with its rules.  With regard to Dodd-Frank, however, rule adoption continues at a snail’s pace.  Calls arise from economists and bloggers to return banks to an old and tested role:  that of a place where money is cultivated in a boring, slow and relatively-low-risk manner.  In the top box, JJLCO announces that GFI Group has joined as a JLN sponsor; and Leo Melamed takes aim at Bart Chilton’s cheetah.

John Lothian Newsletter: EU Said to Prepare Draft Decision on NYSE-Deutsche Boerse Merger; Canada Cites NAFTA Breach if Volcker Adopted; Regulators Fleeing Credit Raters Embrace Zero-Risk Greek Bonds Standard

A draft decision regarding the NYSE-DB merger is underway, and might be released as early as next week.  Canada’s bank regulator joins the opposition to the Volcker Rule, saying its implementation could destabilize economies and violate free trade agreements.  US banking regulators turn away from credit rating agencies (paid by those who are rated) and cast a favorable eye toward the OECD (which represents member governments and rates their bond risk as zero) as a fascinating way to escape organizations without a conflict of interest.  Around the globe, the tide shifts away from 2011-in-review (including “look at all the things…

Red Herring Futures Part 2: Fire is Always Hot, and a Woodstove Won’t Heat Your House Standard

Jon Matte

Read part 1 here. In Episode One of the quest for red herring futures (published in this newsletter last Monday), I talked about the need to properly identify a problem before it can be effectively fixed. Failing to do so often leads to a toaster-jerk reaction, which looks pretty foolish and has no better than a pure-accident chance of making things better. I also promised that I’d explain how the presence of speculators cannot be a base cause for high prices or extreme volatility in a market. As I always keep promises that are convenient, let’s get started. Please note…

Red Herring Futures Part 1: Speculators, Bart Chilton and the Toaster-Jerk Reaction Standard

Jon Matte

Read part 2 here. I read Bart Chilton’s commentary about speculators and speculative limits as it went into the Friday edition of this newsletter. In my new practice of staying calm and even-headed when reading government-related editorials, it took several seconds and two whole paragraphs before I ignited my Flamethrower of Righteous Indignation and began to scorch the side of John Lothian’s head from clear across the Atlantic Ocean. John felt it more appropriate for me to share my “insights” with you, if only so he could get me to shut up and let him get his work done. I…