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Original and aggregated financial news video from John Lothian News.

FIA Boca Preview: Walt Lukken on the 2013 Outlook for the Futures Industry (Part 1) Standard

Walt Lukken FIA Boca

Walt Lukken has had his hands full since taking the top spot at the Futures Industry Association (FIA) in March 2012. With FIA Boca set to start on March 12, JLN editor-in-chief Jim Kharouf spoke with him about the industry over the past year, including the fallout and reaction to MF Global and Peregrine Financial Group, the outlook for brokers and why the president and CEO of the FIA believes 2013 will be better than 2012. In advance of the FIA Boca 2013 conference next week, John Lothian News traveled to Washington D.C. this week to interview Walt Lukken, president and…

FIA Boca Preview: Walt Lukken on the Impact of Regulation on the Futures Industry (Part 2) Standard

Walt Lukken FIA Boca

Walt Lukken knows regulation. As a former Commodity Futures Trading Commission (CFTC) acting chairman and commissioner, he has seen the Dodd-Frank rulemaking process first hand. Now, after completing his first 12 months as president and CEO of the FIA, he’s trying to ensure that all those regulations make sense and work for industry participants. With FIA Boca set to start on March 12, Lukken spoke with JLN editor-in-chief Jim Kharouf about where we are in the Dodd-Frank rulemaking process, costs associated with the new rules, and his thoughts on some of the most controversial moves by regulators and exchanges. In advance…

Confirmations: NFA and CME’s Financial Match.com Standard

Chris Hehmeyer

The fraud at Peregrine Financial Group was uncovered in July 2012 by the National Futures Association (NFA) which used an electronic bank account confirmation system. (See Confirmations: Plugging Into Electronic Confirmations) In November 2012, the NFA and CME Group announced they would implement an electronic confirmation system for futures brokers. The system, operated by AlphaMetrix, provides a comprehensive check and match of what FCMs say they have in customer funds with what banks say they have. Chris Hehmeyer, CEO of HTG Capital Partners and chairman of the NFA, says the new system will help regulators and customers assure such a…

Nils-Robert Persson Talks About Cinnober and the Growth of Real-time Risk Management Standard

Nils-Robert Persson

There are some firms who are ahead of the curve and profit from it. Cinnober Financial Technology, the Swedish-based provider of electronic trading platforms was certainly one of them when it began pushing real-time risk management technology for trading and clearing platforms long before the 2008 financial crisis. Now its an integral part of the marketplace. Nils-Robert Persson, executive chairman for Cinnober spoke with JLN editor-in-chief Jim Kharouf about  the speed of execution and clearing systems, as well as what’s next for the firm.

Confirmations: Plugging Into Electronic Confirmations Standard

Confirmations: Plugging Into Electronic Confirmations

Capital Confirmation, which runs Confirmation.com, is credited with helping to unveil the massive $215 million fraud at Peregrine Financial Group (PFG) in July 2012. The web-based audit confirmation service was hired by the National Futures Association (NFA) last year and applied its technology to PFG. After forcing PFG to use the electronic confirmation service, rather than use the traditional paper-based auditing system, PFG’s fraud was discovered by the NFA. Brian Fox, founder and chief marketing officer of Capital Confirmation, explains how this straightforward technology of providing a third party confirmation service, can help protect customer funds and restore customer faith…

Residual Interest: CFTC Proposal Poses “Monumental” Challenge to FCMs Standard

CFTC Roundtable

A rule proposed by the Commodity Futures Trading Commission (CFTC) designed to strengthen safeguards for customer deposits at futures commission merchants (FCMs) is threatening to overhaul the futures brokerage system. The proposed “residual interest” provision introduced last fall, and discussed in a CFTC roundtable on February 5, would require substantial increases in margin buffers by FCMs. The meeting led by Robert Wasserman, chief counsel of the CFTC’s Division of Clearing and Risk, included panelists Mike Dawley of Goldman Sachs and FIA chairman and Kim Taylor,  CME Clearing president who argued that the increased margin requirements under the proposal are substantial….

Daily Reports: Tell Us Where The Money Is Standard

Daily Reports: Tell Us Where The Money Is

In the months and days since MF Global’s collapse and the Peregrine Financial Group’s fraud, some have argued simply for more transparency from futures commission merchants (FCMs).  Scott Gordon, chairman and CEO of Rosenthal Collins Group, said his firm publicly discloses how customer funds are being invested and held by the firm. In Rosenthal Collins’ case, the firm reports its cash deposits held at US banks, funds held in US Treasury securities, as well as its how much is being held by clearing houses and clearing brokers and US banks. This type of transparency could be the difference in building…

Sanjeev Joshipura of the Commodity Markets Council on Dodd-Frank in 2013 Standard

Sanjeev Joshipura

Sanjeev Joshipura, president of Commodity Markets Council, talks about how Dodd-Frank rules will impact his membership base. Joshipura talks with JLN editor-in-chief Jim Kharouf about the future of the controversial position limit rule, which was vacated by a US District Court on September 28, 2012. A new position limit rule is expected from the Commodity Futures Trading Commission (CFTC), which will include a cost-benefit analysis. CMC is also focused on the CFTC’s reauthorization this year and the continuation of EMIR regulations. Joshipura also talks about US and EU regulatory harmonization and the challenges facing that goal.

Protection Fund: Slip it to SIPC Standard

Protection Fund: Slip it to SIPC

If there is one solution to restoring customer confidence in futures that has been talked about more than any other, it would be the creation of a customer or insurance fund. Securities customers have the Securities Investor Protection Corporation (SIPC), so why can’t futures customers use SIPC as well? That’s the idea from Neal Wolkoff, Of Counsel at the law firm of Richardson & Patel and longtime exchange executive, who argues that not only does it make rational sense, but using SIPC could be the easiest and most cost effective way to protect futures customers. This approach differs from others…