Banks are calling out exchanges on legal protections that they say should be rewritten to more closely match the rules for other participants. The stock market may be rallying, but investors are pulling out large chunks of money and looking for other financial playgrounds. India’s NSE had its own “flash crash” today, as incorrect orders from a trader caused a brief two-digit drop in the value of the Nifty index. In today’s First Read, be sure to catch the final installment of the John Lothian Profiles series featuring Tom Cashman.
Tag Archives: Deutsche Boerse
John Lothian Newsletter: CME To Introduce Futures That Deliver Swaps; LSE makes play for collateral management market; Fed warns high-frequency trading firms John Lothian Newsletter,Newsletter
CME Group announces new deliverable interest-rate swap futures contracts. The London Stock Exchange plans to begin offering collateral management services from its Monte Titoli settlement house in Italy. The Chicago Fed warns that the majority of algo traders and trading venues are relying on “others” to handle exceptions and errors in order flow.
John Lothian Newsletter: NYSE’s Head Of Technologies Business Resigns; Deutsche Boerse Signs Up Seven Banks for Interest-Rate Clearing; ASX Signs Confidentiality Agreement Mulling Link Buy John Lothian Newsletter,Newsletter
NYSE Euronext flags its second major executive departure in two days, as NYSE Technologies chief Stanley Young heads for the exit. Deutsche Boerse’s Eurex exchange signs up a full hand of banks to use its new EurexOTC platform that will debut later this year. Australia’s ASX signs nondisclosure agreements with Link Market Services, as it lines up a possible purchase of that company. The CFTC issues subpoenas to JPMorgan over their Whale Trade, in order to more closely examine it for impropriety.
John Lothian Newsletter: JPMorgan illegally let Lehman count customers’ funds as its own: CFTC; Fed’s Lacker Says Volcker Rule May Be ‘Impossible’ to Implement; Deutsche Börse closes First Quotation Board at end of year John Lothian Newsletter,Newsletter
The CFTC says that JPMorgan Chase allowed Lehman Brothers to consider customer funds as its own, so that LB could borrow more prior to its 2008 collapse. The Richmond Fed’s Jeffrey Lacker says that the Volcker Rule may not be possible to put into practical practice. Deutsche Börse announces details about the closure of its First Quotation Board, scheduled for the end of 2012. In today’s Top Box, there’s no shortage of stories on a pre-holiday issue: NYSE Arca announces mini-option contracts; JLN Options’ Sarah Rudolph has an interview with Thomas McKeon of Clothier Springs Capital Management; and the most…
John Lothian Newsletter: NYSE Amex Continues To Sift Error-Trades, Ronin Capital Eyed; HSBC says it may face criminal charges for transactions; SIX to cut 150 jobs as franc hits profits John Lothian Newsletter,Newsletter
NYSE Amex finishes the task of correcting, adjusting and removing trades caused by error trades on Friday, and rumors point to Ronin Capital as the culprit. HSBC bank looks at the fingers pointing its way, and prepares for civil or criminal prosecution for allegedly illegal transactions. SIX Swiss Exchange prepares for job cuts in an attempt to bring costs under control. S&P slaps the “default” label on Greece, a surprising action only to people currently traveling to other planets. In today’s top box, along with stories that run the gamut from short selling to Gordon Gekko, you’ll find an interview…
John Lothian Newsletter: State Street plans OTC derivatives platform; NYSE, Deutsche Boerse Set To Vie For Technology Business; CBOE to List Futures on Brazil, Oil Volatility Indexes John Lothian Newsletter,Newsletter
State Street announces that they plan to start up an OTC swaps trading platform, to go along with a previously-announced swap clearing facility. NYSE-E and DB, no longer trying to live under the same roof, re-engage as competitors with a focus on trading technology and services. CBOE announces plans to list volatility index products for Brazilian stocks and oil. In ongoing stories, the dig into LIBOR-fixing continues to produce results; Volcker is still a household word; and MF Global’s bankruptcy trustee agrees to share nicely with others. In the top box, John Lothian unveils his latest plans for world travel,…
John Lothian Newsletter: D-Boerse To Wind Down Stock Platform On Manipulation Fears; Derivatives Entrepreneur Seeks To Launch Swaps Exchange; MF Global Funds Missing Days Before Bankruptcy John Lothian Newsletter,Newsletter
Deutsche Boerse is planning to shut down its First Quotation Board small-cap listing board, in response to challenges in keeping the market clear of fraud. The swaps market may see the creation of its first exchange, trueEX. New details about the MF Global disintegration reveal that the company was using customer money for days before the bankruptcy filing, and on its final day faced a margin call that was bigger than its net worth. In the regulatory arena, the CFTC is racing to complete new rules that require mutual fund registration when fund holdings include commodity positions; and the SEC…
John Lothian Newsletter: S.E.C. Is Avoiding Tough Sanctions for Large Banks; Credit-default-swap futures seen as inevitable; MF Global risk officer says ousted after warnings John Lothian Newsletter,Newsletter
The New York Times reports findings that the SEC has repeatedly and for quite some time given a pass to large banks on certain kinds of rule violations. Though they are not yet a reality, some banks are still viewing the creation of credit default swap futures as a big thing on the way. In testimony yesterday, ex-MF Global’s ex- risk officer says he warned senior management about the folly of overly aggressive trading, which helped to get him kicked out of the company before it went bankrupt. In the top box, a pointer to yesterday’s special report on the…
John Lothian Newsletter: After a Delay, MF Global’s Missing Money Is Traced; Brussels blocks DB-NYSE merger; NYSE board stands by Niederauer John Lothian Newsletter,Newsletter
MF Global investigators declare that they have traced nearly all of the missing money, but they are so far unwilling to share the details for fear of harming their investigation. In Europe, regulators made their heavily-telegraphed announcement to block the DB-NYSE Euronext merger; reactions are relatively undramatic, including a thumbs-up to NYSE-E CEO Niederauer from his board. In the top box, John Lothian writes about the need to make MF Global customers whole, pointing out that one way or another, payment will be extracted from the industry for MF Global’s sins.