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Tag Archives: CME Clearing

JLN Exchange Leader Series 2017: Durkin Says CME Growth Is All About Customers Exchanges, OTC & Clearing,Feature,Interview,Video,video

CME Group is proud of the diversity in its product lines – from a broad range of commodities to a full suite of interest rate, index and FX contracts. That range of contracts has allowed the exchange to “hit” consistent winners somewhere on the board, as markets move from one sector to another. Bryan Durkin, president of CME, told JLN at the FIA Boca 2017 conference, that energies, metals, interest rates and FX posted solid, if not record volumes last year. This year, they hope that diversity continues to pay off. “We really focused on our international footprint,” Durkin said….

2016 Exchange CEO Series: CME’s Gill Looking For Customer Efficiencies PART 2 of 2 Interview,Tech / HFT,Video

With new capital requirements of banks and other institutions, John Lothian News sat down with CME Group’s CEO Phupinder Gill at the FIA Boca Conference to talk about CME’s new cleared swaptions service through its clearinghouse, and a repo futures contract. “If you look at the world and look at the situation around the globe, you’ve got South America, which has some bright spots but a growth rate that is at best uncertain,” Gill said. “You have low growth rates in the US. If you look out to Europe, where you have a lot of potential merger and acquisition activity,…

2016 Exchange CEO Series: CME’s Gill Looking For Customer Efficiencies Interview,Tech / HFT,Video

CME Group has been focused on global growth, just like every other major exchange. But to get there, the exchange leader believes it has to work with customers to streamline costs so it can expand. In part one of our two-part interview at the FIA Boca Conference, CME CEO Phupinder Gill said that the exchange is working on new ways to address capital efficiencies through products such as cleared swaptions, but also new clearing services that will help institutions reduce collateral. CME is also continuing to work on market disruptors such as blockchain technology, which may change the way in…

John Lothian Newsletter: The world should fear an emerging market rout; IMF delays China’s bid for global reserve currency status; Global tagging system proposed for derivatives trades John Lothian Newsletter,Newsletter

First Read Profiles: Blair Hull It’s not every day you hear one of the most successful traders and businessmen in the industry say he got his start as a card counter in blackjack. “My brother-in-law told me that he made money in Lake Tahoe, enough money to pay for his vacations,” he said. “I said “Well, if you do that consistently, you should be betting a lot more money and you wouldn’t have to be an accountant.” So Hull put his own money where his mouth was and took up the game of blackjack for five years learning probabilities and…

John Lothian Newsletter: Regulator to Review Leverage Limits for Currency Trades; CFTC approves TOCOM as an FBOT; Banks Must Bear the Risk of Derivatives Losses, CME Paper Says John Lothian Newsletter,Newsletter

First Read SEC Announces Charges Against Standard & Poor’s for Fraudulent Ratings Misconduct SEC The Securities and Exchange Commission today announced a series of federal securities law violations by Standard & Poor’s Ratings Services involving fraudulent misconduct in its ratings of certain commercial mortgage-backed securities (CMBS). jlne.ws/1um1vFI ***** Charges come how many years later? ++++ NYSE Unveils New Trading Room By Kristen Scholer New year, new digs for traders at the New York Stock Exchange. The NYSE, a subsidiary of Intercontinental Exchange Inc.ICE -0.68%, debuted a brand new trading room Tuesday morning before the opening bell. The space, dubbed “The…

Top 25 Most Read Stories from the John Lothian Newsletter (January 27-31) Blog

Here is a list of the most read stories from the this week’s editions of the John Lothian Newsletter: ICE CEO Sprecher wants regulators to look at ‘maker-taker’ tradingReutershttp://jlne.ws/1aCdZov Voice of Experience: Kim Taylor, President, CME ClearingThe Glasshammerhttp://jlne.ws/1idmF4e US traders resist Nasdaq’s Treasury pushFinancial Timeshttp://jlne.ws/Mfamcq A Suspect Emerges in Stock-Trade Hiccups: Regulation NMSThe Wall Street Journalhttp://jlne.ws/1hIndOT Nasdaq’s plan for cutting prices infuriates rivalsReutershttp://jlne.ws/Mfamck Trading Technologies’ University Program Now Active in More Than 50 SchoolsPress Releasehttp://jlne.ws/MfalW2 R.J. O’Brien Appoints Kevin Hall Managing Director, Sales and Head of New York OfficePress Releasehttp://jlne.ws/1dIswJv Michelle Smith, working behind the scenes to shape the Fed’s…

What’s in a name? CME’s Kim Taylor Says Extra Cost Interview,Regulation,Video

Kim Taylor

Clearinghouses are now considered systemically important to financial markets. But with that designation are new regulations and capital requirements. John Lothian News sat down with Kim Taylor of CME Clearing to talk about how a new requirement could raise costs for market participants. Commodity Futures Trading Commission (CFTC) regulation 39-33, passed on November 15,  is a capital requirement that is set to be implemented by the end of the year. It calls for US-based clearinghouses to be designated as qualified central counterparties (QCCPs), which ultimately would give them more favorable capital requirements under Basel III but tough capital US guidelines….

Residual Interest: CFTC Proposal Poses “Monumental” Challenge to FCMs Regulation,Special Report,Video

CFTC Roundtable

A rule proposed by the Commodity Futures Trading Commission (CFTC) designed to strengthen safeguards for customer deposits at futures commission merchants (FCMs) is threatening to overhaul the futures brokerage system. The proposed “residual interest” provision introduced last fall, and discussed in a CFTC roundtable on February 5, would require substantial increases in margin buffers by FCMs. The meeting led by Robert Wasserman, chief counsel of the CFTC’s Division of Clearing and Risk, included panelists Mike Dawley of Goldman Sachs and FIA chairman and Kim Taylor,  CME Clearing president who argued that the increased margin requirements under the proposal are substantial….

CME Customer Letter Brings Empathetic Clarity to Unclear Situation Commentary,Regulation

John Lothian

The CME Group is getting bashed in the hallways, elevators and reportedly on the trading floors of the exchange over the way the MF Global bankruptcy played out. While some of this sometimes caustic criticism is justified, much of it is not. Yesterday the CME put out a customer letter to bring those impacted by the bankruptcy up to date. It is also aimed to explain how the system works and that the guarantee fund is meant to protect the integrity of the clearinghouse. The CME points out that on “October 31, when the trustee was appointed, MF Global was over-collateralized at CME Clearing.”…