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Tag Archives: clearing

Election results 2017: UK wakes up to hung Parliament; U.S. derivatives regulator concerned about swaps clearing worldwide post-Brexit; Lawsuit in U.S. accuses 12 big banks of credit default swap collusion John Lothian Newsletter,Newsletter

First Read U.S. business schools embrace ‘fintech’ as students clamor for courses Anna Irrera – Reuters Leading U.S. business schools are trying to teach students how to become masters of financial technology, a subsector of Wall Street that has grown in size and prominence, but because the area is still ill-defined and relatively new it is hard to develop courses. Stanford University and Georgetown University business schools are planning to offer “fintech” courses for MBA students for the first time this fall. New York University is planning a new course for undergraduates after launching a fintech specialization in its business…

Liquidity Providers Unduly Penalized By Capital Rules: CTC’s Crutchfield Exchanges, OTC & Clearing,Interview,Options,Video,video

Financial Reform Objectives at Odds with Effects of Rules What’s a market maker to do when it can’t warehouse risk? The options industry has a problem with bank capital rules. In this JLN video, Steve Crutchfield, head of market structure with CTC, discusses the burdens placed on market makers due to rules that are out of touch with the stated goals of post-crisis reforms, as well as structural issues within options markets.    There are only three major banks with a significant footprint in clearing for options market making firms. Those banks’ ability to conduct that business is under pressure…

Hedge Fund Managers Don’t Always Beat the Market, but They Still Make Billions; EU-managed control of euro clearing is not viable; AllianceBernstein Is Selling Bond-Trading Software John Lothian Newsletter,Newsletter

First Read The Event Of The Summer: JLN & FOW Present Trading Chicago For the first time in John J. Lothian & Co.’s history, we are partnering with FOW (Global Investor Group) to host our first Trading Chicago event on June 28th. This one-day event is aimed largely at the end-users of the markets: commodity trading advisors, asset managers, hedge funds and proprietary traders. The conference will cover the issues that impact those firms directly – regulation, technology and market structure, with an underlying thread of trading in an age of uncertainty. Of course, there is always uncertainty and this…

ETFs Create Stock Markets That Are Both Mindless and Too Expensive, Study Says; Equity derivatives no longer dominate derivatives trade; One Very Big Strike Against Active Management John Lothian Newsletter,Newsletter

First Read Bits & Pieces By John J. Lothian Healing wishes are in order for Cinnober Executive Chairman Nils-Robert Persson, who joined the club by undergoing knee replacement surgery. No word on whether he used a Nasdaq listed company’s joint hardware for the surgery. My presentation and panel for the Chicago Civic Federation at the Federal Reserve went well yesterday, though I could have been a lot sharper. The feedback was good, but my own grading was not high for my performance. I did learn a lot about government bankruptcy and the challenges faced by the City of Chicago and…

A Difference Maker: Post-trade Clearing Tech Now a Differentiator For Firms Blog,Commentary,Feature,Tech / HFT

If today’s markets are traded in milliseconds, why can’t post-trade clearing keep up? ION is addressing that with its XTP clearing solution, a near real-time system it has quietly been rolling out since 2015. Last year the product was adopted by a handful of firms. And this year, ION is hoping to see a larger migration of customers to the new platform, which is considered a major upgrade to its Rolfe & Nolan system. It took ION four years to build the system, creating it on top of ION’s core trading technology. The low-profile firm is stepping out a bit…

Deutsche Bank walks away from US swaps clearing; Soc Gen sees fixed income trading boom; Crunch time for increasingly brittle London Metal Exchange John Lothian Newsletter,Newsletter

First Read Trump Preparing to Nominate Commodity Futures Trading Commission’s Giancarlo as Chair; The former brokerage executive is currently serving as acting chairman Andrew Ackerman – WSJ The Trump administration is preparing to nominate J. Christopher Giancarlo as chairman of the Commodity Futures Trading Commission, according to people familiar with the matter, elevating the former brokerage executive to the full-time head of the top U.S. derivatives regulator. /goo.gl/XFy2Wg ***** This would be a terrific outcome. Acting Chairman Giancarlo is widely respected and very knowledgeable. All we need now is some other commissioners. ++++ Nasdaq’s Black Belt CEO on IPOs, Unicorns,…

Market Calm Back as Short-Term Volatility Falls Most Ever; OCC News; Post-Trump About-Face Triggers 2 Rare S&P Signals Newsletter,Options

Observations & Insight 2016 Could Be The Year Of The CEO By Jim Kharouf, JLN Editor-in-Chief Forget the Chinese New Year plunge, Brexit, The Donald or even the Cubs. This is also shaping up as the year of the new CEO, with exchanges and clearinghouses especially, in moves that could reshape our markets in the coming years. The two biggest CEO changes came within days of each other, with Terry Duffy taking the reins as CEO at CME Group from Phupinder Gill and Adena Friedman at Nasdaq, taking over from longtime CEO Robert Greifeld at the start of 2017. They…

Oil Options Traders Buy Record Bullish Contracts Amid OPEC Moves; Options Back in Vogue as Uncertainty Permeates Global Markets; SEC Approves Consolidated Audit Trail to Detect Market Manipulation Newsletter,Options

Lead Stories Oil Options Traders Buy Record Bullish Contracts Amid OPEC Moves Javier Blas, John Deane and Brian Wingfield – Bloomberg Oil investors traded a record number of bullish options contracts for benchmark U.S. crude, a signal that the market is positioning for a potential OPEC deal to limit production and boost prices. The total volume of calls giving investors the right purchase West Texas Intermediate crude rose to the equivalent of 303 million barrels on Tuesday, according to preliminary CME Group Inc. data compiled by Bloomberg. That far exceeded a prior record of 221 million, set five and a…

A Basel netting issue: Pushing for less burdensome capital requirements in the options market Exchanges, OTC & Clearing,Feature,Mwiki,Options,Regulation,Regulation & Enforcement

The unintended consequences of financial regulation have been seeping into the markets since the first rule was made in the wake of the financial crisis. One prime example is the leverage ratio, which determines the required capital of general clearing members. The actual calculation of the capital requirement within the Basel III leverage ratio framework is a particular sticking point for the OCC. Right now, the Current Exposure Method (CEM) is used in the calculation, whereas the OCC and a wide swath of industry participants believe that the Standardised Approach for Counterparty Credit Risk (SA-CCR) would better encapsulate the nature…