Major exchange execs are meeting with some of their biggest customers in an effort to devise plans and changes to reduce future technological and procedural failures. CBOE is said to already be looking past London to Asia as its next target for new offerings. U.S. regulators are now considering the non-bank companies to designate as significantly risky to the overall financial system. In today’s First Read section, take a look at Doug Ashburn’s JLN Forex essay on a fictional parallel universe where markets regard desperate stimulus measures as happy events rather than a sign of trouble; and Sarah Rudolph of…
Category Archives: John Lothian Newsletter
The John Lothian Newsletter provides news and commentary about the global exchange traded derivatives, securities, environmental and related OTC markets. The daily email intelligence briefing and companion blog are edited by John Lothian and Jon Matte.
John Lothian Newsletter: Bats in talks with FSA over exchange licence; CME reopens claims process for MF Global customers; EEX May Struggle to Take ICE Carbon Share
Bats Chi-X Europe is asking to be licensed as an official exchange, seeking to turn up the heat on rivals in London. CME Group is giving ex-clients of failed brokerage MF Global a second chance to file claims against property owned by the dead company. EEX got the nod to sell EU emission credits, but a Barclays analyst is skeptical of how much of a dent the exchange can make in rival ICE Futures Europe’s futures volume.
John Lothian Newsletter: Lawmakers Push to Increase White House Oversight Of Regulators; HKEx Defends Timing Of LME Acquisition; FSA Ramps Up Technology To Spot Market Abuse
U.S. legislators have introduced a bill granting, among other things, power to the executive branch of government to micromanage details of the SEC’s activity. Hong Kong Exchange says “pish” to the notion that a downturn in commodity prices overall will cause trouble for its new acquisition, the London Metal Exchange. The UK’s FSA reaches out to Nasdaq for new software to help monitor and regulate high-frequency trading.
John Lothian Newsletter: CME Europe Plans to Add Currency Options at London Venue; Asia calls for harmony on Dodd-Frank rules; NYSE and CME plan futures ‘kill switches’
CME Group continues to issue new information about its planned London exchange; the exchange will trade currency options along with its previously-announced futures contracts. Asia joins Europe in putting pressure on the U.S. to work internationally for regulatory harmony, rather than attempting to outright impose its homegrown regulatory structure on other countries. ICAP’s Traiana announces a service to filter out-of-limit transaction parameters and implement a market kill switch, and both NYSE and CME sign on to the idea in hopes of restoring badly damaged investor confidence.
John Lothian Newsletter: CBOE looks to set up London base; Citigroup to launch commodity trade finance business; Liquidnet launches Philippines dark pools
John Lothian Newsletter: NYSE Euronext Plans SME Futures Contract; ICE Announces Acquisition Of Options Tech Provider WhenTech; Libor Probe Claims Barclays Exec And Trader
NYSE Euronext is creating a new futures contract to reflect small and midcap stocks, in the hope of boosting volume in those issues in Europe. Responding to customer requests, ICE says that they will switch all their OTC energy swaps and options to futures contracts in October rather than waiting until early next year. The LIBOR scandal claims more of its own at Barclays, as a top executive and a trader are both shown the door. In the Exchanges section today, you’ll find another oversized helping of August volume reports from around the world, a few of which aren’t too…
John Lothian Newsletter: Osaka Considers Pricing Change to Boost Volume; Getco to add clearers to European dark pool; India’s UCE to Begin Operations by Year End
OSE is thinking about offering rebates to traders for taking positions in volatility index futures on the exchange. Getco plans to add two new clearers to its dark pool in Europe, angling for new OTC clearing business. Universal Commodity Exchange, India’s sixth national commodity trading venue, gets ready to open its doors by year end. Speaking of creating new places to trade, volume statistics are out for many of the exchanges around the world; you can get links to all the diamonds-amid-dark-clouds news in our “Exchanges and Trading Facilities” section. In First Read, John Lothian answers the question, “Are we…
John Lothian Newsletter: Regulator Orders External Review After Peregrine Collapse; KSE, BSE In Talks Over Cross-Listing Of Indices; Euro Crisis Faces Judgment Days
The head of the National Futures Association orders an overhaul of staffing and processes in the wake of the agency’s failure to detect Peregrine Financial Group’s fraud over many years. Exchanges in Karachi and Bombay are well along in talks to cross-list futures products; Karachi is also talking with NYSE Euronext about listing index products in the U.S. The euro crisis is found very much present and dangerous inside the eurozone, and the time is nearing for the next round of hand-wringing decisions and plans for the leaders of that area. In First Read today, take a look at the…
John Lothian Newsletter: Switzerland seeks tighter off-exchange oversight; Asean bourse link set for September launch; Chinese Banks Funneled Money to Iran, Prosecutors Believe
Switzerland’s financial regulators shift closer to a US perspective, and plan to exert more control over private derivatives trading. A multi-market data link receives regulatory approval in Asia, setting the Asean connection on a path to go live in September. In the latest chapter of the thriller, “Who Sneakily Sent Money to Iran?” prosecutors believe that Chinese banks may have also been involved. In today’s First Read, you’ll hear about the upcoming annual Cantor Fitzgerald and BGC Partners charity day; and former JLN summer intern Stephen Hurst considers the cloudy skies facing aspiring bankers and financial workers.