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…
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: 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…
John Lothian Newsletter: LCH.Clearnet in Discussion to Buy Nasdaq’s Rate Clearinghouse; Hedge fund industry fights criticism; Former MTR Chief Replaces Arculli at Hong Kong Bourse
LCH.Clearnet is talking to Nasdaq OMX about buying its IDCG clearinghouse. The hedge fund industry, along with continuing to grow, is continuing to fight criticism that funds don’t add much investment value. Chow Chung-Kong, formerly CEO of MTR Corp., is named to take over from Ron Arculli at HKEx. In the US, ICE debuts a web site; CME Group discards a building; and the MF Global trustee is annoyed at a regulatory loophole that helped cause the whole mess.
John Lothian Newsletter: Hong Kong Exchange’s Arculli Steps Down After Six Years; ICE Futures wins UK carbon sales mandate; US regulators look to ease swaps rules
HKEx’s Ron Arculli departs as chairman today, and shares his perspective of the future for the exchange. ICE Futures Europe gets the nod in Europe to host carbon auctions for at least the next three years. US regulators are looking for ways to let foreign banks and subsidiaries to avoid new domestic swaps rules.
John Lothian Newsletter: SEC Options Cases Highlight CBOE Regulation; HKEx to offer renminbi futures; Tokyo Trading Glitch Thaws Resistance to Alternative Platforms
As the SEC takes additional action against broker OptionsXpress, the CBOE finds itself in the middle of a much closer look at how it supervises its members. The Hong Kong Exchange announces plans to issue futures contracts for trading the Chinese yuan. Fault and strategy analysis continues at the Tokyo Stock Exchange over a systematic failure earlier this year. In the top box, John Lothian pens a salute to the S&P 500 Index Futures contract, which turns 30 this year; and OCC and OIC upgrade their support of MarketsWiki to the Partner level.