ICE launched its first grain contracts yesterday. Much analysis and discussion abounds regarding JPMorgan’s big loss, including stories that warnings of trouble from inside the company had been ignored. China’s Citic Securities buys into algorithmic trading software, signaling an increase in automatic trading in Asia. RJ O’Brien has a plan to mollify grain traders over extended trading hours, and tries to get the CFTC’s attention. BOX Options Exchange mulls the possibility of allowing after-hours trading on its options products.
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: NYSE Euronext Rolls Out New Brand Identity; Fear grows of Greece leaving euro; Three to Exit J.P. Morgan
NYSE Euronext pulls the curtain back on a new look and greater global focus. Greece provides more fuel for analysts predicting their departure from the eurozone, though the degree of concern regarding that event varies greatly. In the wake of massive, allegedly surprising and potentially increasing losses, at least three top executives (not including Jamie Dimon) are said to be heading for the exit. In the top box today, you’ll find an interview with Peter Weibel of TriOptima, talking with JLN’s Doug Ashburn about central counterparty clearing.
John Lothian Newsletter: NYSE Liffe reclassifies trading positions; Nasdaq Details Plan To Strike Back At ‘Dark’ Trading; Instinet co-chief to leave amid shake-up
NYSE Liffe shuffles the data in its Commitment of Trader reports, and ruffles feathers in the process. Nasdaq OMX unveils plans for new stock services designed to take business away from dark pools. Management changes at Instinet see the departure of the company’s co-head. JPMorgan is caught with both hands on the risk bottle, as it reports super-sized, 2008-esque risk-related losses. And in the top box today (with fewer hyphens), Christine Nielsen of JLN Interest Rates provides an interview with Paul MacGregor of NYSE Liffe, who discusses the outlook for the interest rates sector, and new products at the exchange.
John Lothian Newsletter: NYSE Euronext Scrutinizing Portfolio In Bid To Cut Costs; ISDA Said to Begin Biggest Revision to Credit Swaps Since 2009; CFTC analysis nixes emergency trading restrictions on oil
NYSE Euronext looks over its basket of projects and investments for candidates to offload to save money. Another ISDA meeting this week will start discussions on big revisions and changes to the CDS market. The CFTC says that while they plan to implement oil market controls, it’s not appropriate for them to take emergency action and put changes in place immediately. In the top box, John Lothian considers the fairness of markets; Jon Matte admits that he likes a Bart Chilton speech; and Sarah Rudolph of JLN Options provides an interview with Russ Chrusciel of Sungard about the company’s Valdi…
John Lothian Newsletter: NYSE Sees Danger Of Exchanges Becoming ‘Showrooms’ For Prices; HFT curbs may take Europe ‘back 7 years’; Hedge funds may be allowed direct access to China markets
NYSE’s Niederauer sees the danger of a exchanges becoming a place where traders browse for quotes before doing their actual trading off-exchange. The FIA EPTA in Europe warns that HFT regulation and slowdowns may move market progress back several years. Chinese regulators are considering allowing foreign hedge funds to directly trade in domestic companies and financial products. In the top box, John Lothian discusses the importance of reading what one is given; and you’ll also find a reminder, in case you missed yesterday’s special report, to come help us improve MarketsWiki next week.
John Lothian Newsletter: US Appeals Court Revives ISE Patent Case Against CBOE; CME said to be among bidders for London Metals Exchange; Hong Kong markets must adapt, SFC says
A US appeals court judge reviews the patent decision between ISE and CBOE, and decides to revive the 5+ year running disagreement. The LME says it has received several bid proposals for its purchase, and CME Group may be among the bidders. The Hong Kong exchange (coincidentally also bidding for LME) is being warned by the regional regulator that it’s vulnerable to sticky HFT, dark pool and other situations that are common in other parts of the world, and that it’s time to get moving to address those issues. In the top box, you’ll find a link to Doug Ashburn…
John Lothian Newsletter: Happy Flash Crash; Nasdaq to Launch New Stock-Options Trading Venue; Bids for the London Metal Exchange Due Monday
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.
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.