The CFTC agrees to back away from setting global swap rules, and will (so far) temporarily redefine new regulations to target US participants. After months of noise and other things commonly associated with elephants, the EU arrives at an agreementto consolidate eurozone banking control (mostly) under a single supervisor. Thomson Reuters joins the LIBOR Derby with a bid to take over administration of setting the international lending rate. In First Read today, check out the new interview with CME Group’s Sean Tully, who talks with JLN’s Doug Ashburn about the company’s new interest rate swap futures contract.
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: CBOE Holdings Announces Leadership Changes; Nasdaq closes in on Thomson Reuters unit; LCH.Clearnet Plans Clearing Tie-Up With Aussie Banks
CBOE Holdings announces that William Brodsky will step down as CEO after the company’s May 2013 annual meeting. Nasdaq OMX gets closer to the finish line with its plans to acquire the corporate services unit of Thomson Reuters. LCH.Clearnet applies to begin offering interest-rate swap clearing to banks in Australia, beginning in early 2013.
John Lothian Newsletter: Nasdaq OMX targets European derivatives trades; HSBC to pay record $1.9 billion fine in money laundering case; US audit trail cost forecast criticised
Nasdaq OMX takes a 25 percent stake in European trading platform The Order Machine. HSBC bank agrees to pay a whopper of a fine for laundering money. Tom Kloet of Canada’s TMX exchange group reacts with disbelief at the US cost estimates for creating a real-time market surveillance system. In today’s First Read section, see the fourth installment of JLN’s Restoring Customer Confidence series, Horizon Cash Management’s Michael Markowitz explains the third-party custodian model, whereby customers set up and manage excess margin at a bank outside the brokerage firm. You’ll also find a new MarketsWiki.tv interview with James Sinclair of…
John Lothian Newsletter: India Options Trade Grows Fastest in World; New clearing rules spell stark choice over hedging strategies; Korea gears up for OTC clearing
India’s options market is growing at the fastest pace in the world, bringing a much-needed piece of good news to a region still trying to recover from the global financial crisis. New swaps regulation for central counterparty clearing puts pressure on hedge investors to either greatly increase collateral or switch to higher-risk products. And speaking of swaps, in Korea, KRX exchange plans to launch won-denominated interest-rate swaps next year.
John Lothian Newsletter: SEC to Lift Ban on Actively Run ETFs Using Derivatives; BSE eyes IPO next year, seeks $1 billion value; More Hedge Funds Shut Down
The SEC will switch off its ban on actively-managed ETFs that emphasize derivatives use. The operator of the Bombay Stock Exchange plans for a 2013 IPO. Several hedge funds, facing high levels of redemption, announce their intention to shut down in the near future. In First Read today, there’s another chance to watch our new video interviews from the recent SEFCON III convention.
John Lothian Newsletter: NYSE Euronext announces proposed pan-European project for SMEs; Eris Exchange to Offer Rate-Swap Future With Margin to Match CME; S&P warns over outlook for exchanges
NYSE Euronext starts the clock on the creation of a new Europe-wide exchange targeted at small and medium sized companies. Eris Exchange plans to cut a large chunk of its interest-rate swap contract margin requirements to better compete with rival CME Group. Standard & Poor’s notes that volume in the exchange sector has been a bit off of late, and believes that those volume problems could continue into next year. In First Read today, we have new MarketsWiki.tv interviews from the recent WMBAA SEFCON III convention; take a look inside to see industry leaders speak on a variety of regulatory…
John Lothian Newsletter: Miami Options Exchange Gets SEC Approval; Eurex Exchange launches derivatives trading system; Interest-Rate Swap Futures Surpass $130 Million at CME Group
New options exchange MIAX gets a green light from the SEC, and will be able to open its doors as planned on December 7. Eurex Exchange launches the next generation of its derivatives trading system, beginning the months-long process of migrating its offerings onto the new platform. CME Group’s new interest rate swap futures contracts sees solid interest from traders.
John Lothian Newsletter: S.E.C. Charges 5 Firms Over Audits in China; NYSE Liffe readies for OTC shake-up; Exchanges to Ask SEC to Delay Deadline for Audit Trail Program
The SEC takes aim at Chinese accounting firms affiliated with big US auditors, who are said to be uncooperative with the SEC in investigating firms. NYSE Liffe aligns itself with a derivatives overhaul, and prepares to allow certain block trades to be done OTC style. US market operators intend to ask the SEC for more time to make a plan for a market oversight system. In First Read today, take a look at Part 3 of JLN’s Restoring Customer Confidence series; Gary DeWaal of Newedge points toward China’s Futures Margin Monitoring Center as a model for tracking the disposition of…
John Lothian Newsletter: New Swaps-Trading Venue, KerbX, in the Works; Wall Street finds a foreign detour around U.S. derivatives rules; Bats chief calls on EC to ‘take on’ data pricing
A new off-exchange derivatives trading platform is under construction, possibly with the goal of registering as a new Dodd-Frank-inspired swap execution facility. Some US banks, facing stricter derivatives regulation when dealing with foreign customers, are gearing up to continue trading old-style by using foreign affiliate companies for handling transactions. The head of BATS in Europe calls for EU help in changing the way its competitors price trading data. In First Read today, see JLN’s interview with Rick Lane of Trading Technologies, as he talks about trends in mobile trading and how TT is rebuilding its products to meet modern trader…