The CFTC leads the news with a couple of rule decisions, one of which is controversial beginning with its vote. The IMF says that European banks may have to sell trillions of dollars in assets through next year if their financial firewalls prove inadequate. The hedge fund industry, coming off a fairly lousy 2011, sees enthusiasm for new startups wane as far fewer investors are willing to fund new ventures. In the top box, lots of attention paid to the CFTC, which is a great showcase for how well MarketsReformWiki catalogs regulatory information; and Sarah Rudolph’s JLN Options Newsletter has…
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: London Forms Bank Working Group To Expand Yuan-Trading Operations; Quote MTF venue to block unwanted bids; Obama administration targets oil speculators
The City of London starts a working group with banks to help them expand their already-in-motion plans to trade yuan in the city. Startup trading venue Quote MTF plans to provide the ability for traders to decline to participate with specific other parties, to help mitigate the influence of high-frequency activity. In the “Well, we have to do SOMEthing” department, the Obama administration adds their nomination to throw speculators under the oil-price bus. And in a jam-packed top section, you’ll find links from John Lothian on charitable giving; comments and links to oil-speculator-related articles; commentary from Jim Kharouf on the…
John Lothian Newsletter: LME eyes renminbi move for metals; World Bank Officially Selects Kim as President; Futures market leaders voice volume fears
The London Metal Exchange considers settling some of its contracts in Chinese yuan rather than sterling. The World Bank makes a fairly predictable move and taps Jim Yong Kim as its next leader. Exchange execs continue to fret about the future of trade volume, given increased competition and commonality between OTC and listed derivatives. More banks report earnings; more concern flows from the Eurozone; and more unease is expressed at sightings of financial behavior that got us in trouble only a few years ago. In the top box, JLN Metals editor Nicole V. Rohr has another interview, this time with…
John Lothian Newsletter: Traders boycott CME Eurodollar options; Clearing houses face capital stress tests; Senators defend CFTC in court over position limits
Independent traders at CME Group put hands in pockets on Friday and refused to trade Eurodollar futures in protest against private block trades. New global clearing house rules from IOSCO prescribe large capital buffers and stress tests. In the USA, senators have filed a brief in support of the CFTC’s efforts to impose position limits in the oil market. SIX Group in Switzerland says they’ve got a billion Swiss francs in a suitcase and are looking for something good to buy. In the top box, Nicole Rohr provides commentary from last week’s gold conference in New York, and an interview…
John Lothian Newsletter: Hong Kong Exchanges Said to Seek Loan for Potential LME Purchase; CME to launch world’s first cleared swaps for LNG; EU Lawmakers May Seek Ban on Bank Bonuses That Top Salary
Hong Kong Exchanges goes after a loan to use in a bid for the LME. CME Group looks forward to next week’s launch of cleared swaps for LNG, a world first. The EU parliament gives a frowny look at bank executive bonuses given over the top of regular salaries. In the top box, you’ll find a MarketsWiki.tv interview with NYSE Liffe US’s Jennifer Ropiak on the metals markets; and comments from John Lothian providing the latest happenings and news within JLN.
John Lothian Newsletter: NYSE Seen Facing Tough Battle To Unsettle CME Rate Futures; U.S. Swap Regulators Said to Weigh Dealer Line Above $3 Billion; EMCF to process trades for Turquoise
NYSE Euronext is seen by some as having a tough fight ahead in their introduction of new interest rate futures. Regulators are considering using the $3 billion mark for determining which financial traders are Dodd-Frank swap dealers. London’s Turquoise will clear its trades through EMCF, signaling the clearinghouse’s willingness to fight to regain lost market share. In the top box, ICE announces new contracts; GFI Group, RJO and Newedge announce management changes; and Doug Ashburn (from Tuesday’s JLN FX newsletter) finds common ground between Longfellow and leverage.
John Lothian Newsletter: HFT slows down in US ahead of exchange action; Weighing SEC’s Crackdown on Fraud; Lenders Again Dealing Credit to Risky Clients
High frequency trading is on its way to being named “a little less frequency trading”, as activity slows down in the face of exchange rules against certain kinds of order activity. The SEC has passed the century mark in enforcement actions related to the financial crisis, but questions are still pending as to whether the agency has been effective enough. In the “This rock looks familiar” department, banks are once again urging high risk borrowers to take on more debt. And in today’s top box, Simon Rostron of Rostron Parry gets gussied up and bare-kneed in an appeal for kids.
John Lothian Newsletter: CME considers London futures platform; Tom aims to double market share; JPMorgan’s Iksil Seen Spurring Regulators to Dissect Trading
CME Group considers the possibility of starting a London-based futures exchange, just in case — not that it could ever happen — a transatlantic merger is not landed and completed. The Netherlands’ TOM retail exchange plans to double its market share in the coming months. The London Whale may be causing enough market waves to force regulators to evaluate the degree to which JPMorgan’s trading has been speculative rather than risk-management-ive. In the top box today, a MarketsWiki.tv interview with Rick Lane, the new CTO at Trading Technologies, about the differences between TT and Google and his new agenda for…
John Lothian Newsletter: CBOE’s Inquiry Focuses On Traders; RBC to Defend Itself Against CFTC Suit Rather Than Settle; JPMorgan in Talks Over Missing MF Global Customer Money
The CBOE’s ongoing inquiry into trading wrongdoing is said to focus on several years’ worth of trader order entry. The Royal Bank of Canada, rather than quietly settle with the CFTC over charges of illegal trading, has decided to push back and defend itself. JPMorgan Chase is talking with the MF Global trustee about possibly giving back money that it’s holding. In today’s top box, a MarketsWiki interview with economist and writer Michael Green about the state of the gold market in 2012, and its status as an alternative currency.