The flash crash was two years ago; high-frequency trading since then has bred high-frequency analysis over unsupervised algorithmic trading, but less consensus or operational changes. Nasdaq is going to launch a new options platform, too! Concern is growing that since the number of people trading options isn’t increasing exponentially, adding lots of new options venues will do little other than fragment the existing order pool. And if anyone else wants to bid for LME, today is the day to get them in.
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: CFTC Said to Delay Derivatives Exchange Rule Opposed by CME; LME could introduce yuan settlement in 2014; Banks face tougher trading capital rules
The CFTC may delay the final vote over requirements for on-exchange derivatives trading, pending more investigation into the rule’s impact. The London Metal Exchange may implement yuan-based settlement by 2014 as it works to build its clearing operation. Proposals from Basel regulators yesterday threaten to close loopholes that would require some banks to hold more capital as a reserve against economic trouble. In the top section, you’ll find praise and memories for Ed Joyce, who is receiving the Joseph W. Sullivan Options Industry Achievement Award; a reminder to visit the JLN Interest Rates newsletter for thorough coverage and commentary about…
John Lothian Newsletter: Miami International Sees September Launch For Stock-Options Exchange; Swaps clearing likely mandated by year-end: CFTC; LME signs up for high speed push
Miami International Holdings plans to start its new venture, the MIAX Options Exchange (in New Jersey, not Miami), in September 2012. The CFTC hopes to get a clearing mandate for swaps by year’s end. The LME wades deeper into electronic trading with fast data from Fixnetix. One more big basket of volume reports awaits in the Exchanges section; more stories throughout from the ISDA conference; and the top box today contains a JLN Metals interview with Chris Gale of Latin Resources Limited.
John Lothian Newsletter: Chicago Stock Exchange Plans New Market, Open To Alliances; CBOE’s CEO Sees Compliance Review Continuing; ISDA warns against competing clearing houses
The Chicago Stock Exchange looks to open an electronic trading platform to increase business, and mentions its interest in strategic alliances. The CEO of CBOE says that as it continues to work with regulators, additional compliance-related reorganizations and changes are likely. Lots of news from the ISDA conference (both in Lead and in the Regulatory News section); check the headlines inside for details. Lots of exchange volume reports in the top and Exchange sections, and some of the news is quite good in places. Also in the top box, JLN FX editor Jonathan Matte provides perspective on Iceland’s quest for…
John Lothian Newsletter: ELX Plans Agricultural Futures In Challenge To CME; Trading firms in uproar over Nasdaq OMX’s clearing U-turn; Derivatives Overhaul Inevitable, But Trade Group Sees Delays
ELX Futures has plans to launch a set of new contracts for agricultural products, hoping for a wider stance to take on CME Group. Nasdaq OMX announces that it will delay Nordic clearing reforms, and that doesn’t sit well with trading firms, who had been buying new infrastructure in order to prepare for the changes. Sentiment at the Chicago ISDA conference points to the implementation of some new derivatives reform, but participants are hopeful they can hold some of it off for the time being. The Asia section has the first trickle of volume reports for the month of April….
John Lothian Newsletter: Sparks fly over dark pools stock trading reform; ISE Moves Ahead With Plan For New Options Exchange; HKEx confirms interest in LME
As regulators turn their gaze toward dark pools, traders fear that increased regulation will make activity too costly. ISE continues the process of setting up its second options exchange, targeted for later this year. Hong Kong Exchange ‘fesses up to an interest in the London Metal Exchange. More earnings, this time from NYSE Euronext, document the ongoing struggle to grow income in the trading sector.
John Lothian Newsletter: ICE and Cetip Agree to Develop Brazilian Debt Trading Platform; CME’s Donohue likely to leave before annual meeting next month; Spanish economic crisis deepens
ICE and CETIP announce plans to create a bond trading platform for Brazil. CME’s departing CEO says actually, it looks like he’ll be leaving sooner than expected. Spain receives a rating downgrade and announces that unemployment is just a fraction under 25 percent of the workforce. In today’s top box, you’ll find two hefty “Five Minutes” interviews: one with Bart Mallon of Cole-Friedman, Mallon & Hunt talking about the JOBS act and hedge fund advertising; and one with new DTCC CEO Michael Bodson about his perspective on where things stand and where they’re headed.
John Lothian Newsletter: Madrid bourse overhauls trading system; CFTC: NYSE’s US Futures Market Should Improve Surveillance; LCH Raises Margin Cost for Trading Some Spanish, French Debt
BME in Spain gets its exchange systems ready for high-frequency traders. The CFTC reviews NYSE rule enforcement practices, and says that they should watch the doors and windows more carefully. LCH.Clearnet boosts the margin levels for some Spanish and French bonds. In the top box, Jim Kharouf has a JLN Metals Five Minutes interview with gold analyst Gargi Shah; CME Group reports earnings; and Philip McBride Johnson suggests that politicians aren’t all that concerned with the difference between doing something sensible versus simply doing something.
John Lothian Newsletter: CBOE And DRW Teaming Up To Launch Swap-Like Futures; $1.6 billion in missing MF Global funds traced; CME, Finra Seek Closer Ties On Regulation
CBOE and DRW Trading are working on a futures product that works like an OTC swap, with the goal of providing swap dealers with an alternate way (and alternate regulations) for working with swaps. The MF Global trustee says that at this point, they pretty much know where the money went, but they’re not sure how much of it they can get back. If that’s not enough MF Global news for you, you’ll also find comments from Jill Sommers of the CFTC; an update on trading in bankuptcy debt payments; and Louis Freeh says just kidding, we’re not really going…