CME Group says that its European clearing operations have in the past month already processed transactions equivalent to half of last year’s volume. US regulators, noting recent breakdowns in the technology powering domestic exchanges, consider taking a closer look at tech requirements. Britain releases the biggest bank regulation redo in over a decade.
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: MF Global Clients May Lose in $700 Million Bankruptcy Fight; EU Almunia: Deutsche Bourse/NYSE Decision To Be Adopted Feb 1 Without Doubt; Illinois AG sues S&P over mortgage ratings
Ex-MF Global clients are at risk of losing hundreds of millions of dollars from the bankruptcy outcome, no matter what settlement procedure is used. Joaquin Almunia says the DB-NYSE Euronext merger (or not-merger) decision will come on February 1, no matter what certain other EU Commissioners might have to say about it. The Illinois Attorney General takes aim at S&P for its high ratings of mortgage securities. The CFTC releases a report of its review of financial firms, finding no firms declaring any mishandling of customer cash.
John Lothian Newsletter: OCC’s Walsh Warns of ‘Vast Over Reaction’ in Derivatives Regulation; Hedge Funds Scramble to Unload Greek Debt; Battle Over Brokers’ Duty to Clients At a Standstill
John Walsh of the OCC says that current regulation proposals to fix derivatives far exceed the scope of the problems. Hedge funds, having loaded up on Greek debt, are trying now to unload the paper to avoid a bad haircut but are finding few takers. The SEC is stalled in the process of creating rules to require broker fiduciary duty to clients. The FIA establishes a post-MF Global problem-fixing task force, with super-sized companies appointed to steer the effort. In today’s top box, commentary from Doug Ashburn on the state of the Swiss Franc; and a lighter view of a…
John Lothian Newsletter: NYSE Euronext Explores Adding Partners To Amex Joint Venture; Private equity profits called into question; Osaka to delay key futures contract launch
NYSE Euronext is considering a plan to add more equity partners to its Amex stock exchange. Studies, news and books are pointing out that returns from private equity organizations have done a great job of rewarding the PE managers, but not so much the investors. Japan’s OSE slows down plans to release a new futures contract; bad news for an exchange that is seeing dwindling volume.
John Lothian Newsletter: John Lothian News launches FuturesCrowd.com; ELX Futures Hires Jaycobs As CEO, Wolkoff Departing; New rules are struggle for industry and regulators
John Lothian News announces the launch of the FuturesCrowd.com website, a new venue to help gather problem solvers to address critical issues within the futures industry. Neal Wolkoff says farewell to ELX Futures, and Richard Jaycobs is tapped to lead the exchange. Throughout the financial industry, as regulators struggle to quantify and complete new rules, exchanges, brokers and other participants struggle to understand how to track and implement the constant stream of changes.
John Lothian Newsletter: FSA Pressures Banks to Hand Over MF Global’s U.K. Client Money; Eris Exchange to Distribute Market Data Through CME Group; Volcker Rule Regulators Resist Lawmakers Calls to Scrap Proposal
Britain’s FSA steps harder on the feet of banks in an attempt to get them to release customer money following MF Global’s demise. Eris Exchange reaches an agreement to distribute its SwapBook data via CME Group’s Market Data Platform. Despite calls to just throw away the Volcker Rule and start over, or not at all, regulators working on the issue insist that in the end, they’ll have a viable solution using what they’ve already got so far. In today’s top box, JLN’s Nicole Rohr supplies a Five Minutes interview with Alice Botis of Fidessa; and Hernan Arellano and Felipe Gazitúa…
John Lothian Newsletter: MF Global Commodity Customers Must Be Paid First, CFTC Says; SEC Charges Fund Managers and Analysts in Insider Trading Scheme; IMF requests $500bn for bail-out loans
The CFTC says that MF Global’s trustee has made rookie errors about bankruptcy payouts, and that the ex-brokerage’s customers are first in line for payback. The SEC continues its insider-trading cleanup program by arresting fund managers and analysts, and leveling new charges in some cases at the firms themselves. The IMF, looking over the European crisis, asks for more capital in order to weather rough financial seas ahead.
John Lothian Newsletter: Deutsche Boerse CEO says consolidation is inevitable; S&P Gets No Respect in Market With Lower Yields After Downgrades; World Bank warns emerging nations
DB’s Reto Franconi says that even if the DB-NYSE merger fails, he’ll still be looking for ways to merge his exchange with others. S&P’s downgrades of various countries, banks and funds creates a lot of attention, but not much immediate reaction from investors. The World Bank sounds a grim note to emerging nations, warning them to prepare for financial trouble if the European crisis continues to worsen. In the top box today, double commentary: one from Doug Ashburn of JLN FX on Mario Draghi; and one from Jim Kharouf of JLN Managed Futures on the state of the managed futures…
John Lothian Newsletter: MF Global trustee warns of pay-out shortfall; SEC, Exchange Officials Meet On Market Supervision; NYSE says no more concessions for Deutsche Boerse merger
MF Global’s bankruptcy trustee warns that it may not be able to fully reimburse 100% of the amount that customers are missing. The “flash crash” fallout continues as the SEC steps up enforcement actions and gag orders against exchanges. NYSE Euronext deputy chief executive Dominique Cerutti claims the exchange won’t make any further concessions to gain approval from EU regulators of their merger with Deutsche Boerse. And NYSE Liffe U.S. is named ‘Exchange Of The Year’ By Risk Magazine.