JLN’s first video in the Restoring Customer Confidence series debuts with Ron Filler, a Professor at New York Law School, who discusses how gross margining could alleviate segregated customer account risk. The CFTC produces a proposal for reporting swaps positions, similar to the way that they currently report futures positions. As France’s new transaction tax takes hold, it appears to be doing an effective job of failing to tax the group for which it was primarily intended.
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: Brokers Scramble as Exchanges Dominate Derivatives; Financial Watchdogs Move to Rein In Money Funds; CME gets more time in U.S. compliance spat with regulator
Swaps brokers find themselves in a fight for career survival as the regulatory landscape shifts in favor of futures trading. In the U.S., regulators begin to busy themselves with the topic of new controls for the money market, with some urging the SEC to proceed at full speed. In the ongoing dispute over swaps reporting, CME Group gains more time to supply data to the CFTC after it filed a lawsuit this week. If you haven’t seen the JLN video preview for the new Restoring Customer Confidence series coming later this month, do take a look. This is one of…
John Lothian Newsletter: Glitch stops NYSE trading in 216 companies; DTCC Weighs Legal Action Over CME Swaps Lawsuit; Direct Edge plans new retail investor service
NYSE Euronext’s moves a set of listings to new technology… and spends the day scrambling to try and restore trading on those companies. Clearing company DTCC joins the fight between CME Group and the CFTC on swap reporting, lining up with the CFTC against CME Group’s lawsuit requesting a halt to new incoming regulations. Direct Edge plans new fees for individual investors in order to attract new volume from that trader population. In today’s First Read, get a preview of a new JLN video series, “Restoring Customer Confidence,” and see the JLN interview with Nodal Exchange’s Paul Cusenza, who talks…
John Lothian Newsletter: TMX To Close Alpha Listings Business; London Stock Exchange Gets French Okay For LCH.Clearnet Takeover; NYSE Gaining Ground On Nasdaq In IPO Race
TMX Group plans to discontinue the listing side of recently-acquired Alpha Exchange as it consolidates functions within the company. The London Stock Exchange gets a regulatory thumbs up in France to proceed with its LCH.Clearnet takeover. NYSE Euronext shows signs of taking over more of the technology-listing sandbox from Nasdaq OMX.
John Lothian Newsletter: CME Group sues to freeze CFTC swap reporting rules; Trade bodies warn on clearing capital burden; Pressure Rises on Fiscal Crisis
CME Group goes to court, asking for help in preventing the CFTC from enforcing its new swap reporting regulations. Two broker trade groups in Europe are warning that new capital requirement rules may wreck the clearing industry in that region. Pressure mounts on the US adminstration and legislature from all sides to stop kicking cans and hiding in basements, and take steps to shrink or avoid the upcoming fiscal cliff.
John Lothian Newsletter: Foreign regulators warn on derivatives reform; Exchanges, Trading Firms Face Continuation of Dodd-Frank With Obama Win; The runners and riders to replace Geithner
Regulators outside the US met face to face with CFTC commissioners in an attempt to explain the consequences of the CFTC attempting to dictate regulatory policy to other countries. In the US election’s aftermath, exchanges and other financial companies see fading chances of a Congressional regulatory turnaround on Dodd-Frank. And as the current administration’s first half comes to a close, names go up on the whiteboard for candidates to fill the position of US Treasury Secretary to succeed Tim Geithner.
John Lothian Newsletter: NYSE to sell stakes to plug capital gap; Bats Europe Said to Seek U.K. Exchange License; ADM in talks with feds on bribery probe
NYSE Euronext, faced with new European regulations for clearing, plans to sell an assortment of stakes in other ventures in order to build a bigger capital buffer. Bats Chi-X Europe sets forth to become the first alternative trading system to register as an exchange. Archer Daniels Midland is said to be discussing bribery allegations with US regulators, and may face penalties for bribing foreign officials. In First Read today, take a look at the new MarketsWiki.tv interview with Harrell Smith, who talks to JLN’s Doug Ashburn about several critical topics affecting FX, including the regulatory landscape, algorithmic and high-frequency trading,…
John Lothian Newsletter: NYSE Euronext, ATG Announce Brazil Trading-Platform JV; ICE Sees Futures Shift Reviving Slowed Swaps Trade; CME Delays Deliverable Swap Futures Until Dec. 3
NYSE Euronext pairs up with Brazil’s ATG to create a new trading platform for Brazilian stocks. IntercontinentalExchange says they expect more and more traders will begin to use energy futures rather than swaps, as the regulatory landscape continues to shift. In the wake of Hurricane Sandy, CME Group elects to delay the launch of their new deliverable swap futures product until early December.
John Lothian Newsletter: ICE Asks SEC to Clear European Sovereign Swaps; S&P found guilty of misleading investors; BATS Chi-X Europe Introduces New Interbook Order Types
IntercontinentalExchange asks the SEC for permission to take on a new project: clearing swaps for five countries in Europe. Standard & Poor’s gets taken to the woodshed in Australia, as a judge rules that the company did indeed mislead investors by slapping an “A-OK” rating onto rickety products that collapsed in 2008. BATS Chi-X Europe adds two new types of interbook orders to its lineup for testing, and has plans to take the new orders live later this month.