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Tag Archives: Deutsche Boerse

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.

John Lothian Newsletter: CFTC Weighs Rules for High-Frequency Derivatives Trading Under Dodd-Frank; D Börse and NYSE challenge block to merger; MF Global Told S&P ‘Never Been Stronger’ as Failure Loomed John Lothian Newsletter,Newsletter

The CFTC begins the process of creating rules for high-frequency trading.  Hopefully, a working definition of “high-frequency trading” will precede those rules. DB-NYSE Euronext send a sharp letter to European regulators, asserting that Joaquín Almunia’s recent comments are out of step with the legal case for their merger.  Ratings agencies say that MF Global gave them a big thumbs-up self-assessment just days before the company exploded. France harvests negative predictions and opinions regarding its current plan to establish a transaction tax.  And in banking news, the sector is awash in news about bonuses, how little they are compared to days…

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 John Lothian Newsletter,Newsletter

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: Deutsche Boerse CEO says consolidation is inevitable; S&P Gets No Respect in Market With Lower Yields After Downgrades; World Bank warns emerging nations John Lothian Newsletter,Newsletter

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…