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Tag Archives: Deutsche Boerse

John Lothian Newsletter: MF Global trustee warns of pay-out shortfall; SEC, Exchange Officials Meet On Market Supervision; NYSE says no more concessions for Deutsche Boerse merger John Lothian Newsletter,Newsletter

MF Global’s bankruptcy trustee warns that it may not be able to fully reimburse 100% of the amount that customers are missing. The “flash crash” fallout continues as the SEC steps up enforcement actions and gag orders against exchanges. NYSE Euronext deputy chief executive Dominique Cerutti claims the exchange won’t make any further concessions to gain approval from EU regulators of their merger with Deutsche Boerse. And NYSE Liffe U.S. is named ‘Exchange Of The Year’ By Risk Magazine.

John Lothian Newsletter: NYSE CEO: EU Antitrust Review ‘Fundamentally Flawed’; ICE appoints LME member JP Morgan to advise on potential LME bid; New Rules on Swaps Will Protect Big Traders John Lothian Newsletter,Newsletter

Reaction to the recommended rejection of the DB-NYSE merger is loud and varied, including one from the NYSE Euronext CEO that the regulatory review was just plain bad. ICE hires JP Morgan to help them work on a bid for the London Metals Exchange, which is also in today’s news for record-breaking volume announcements, and a quarrel over whether dramatically raising fees right before being acquired is a smart decision. The CFTC yesterday voted to pass rules and proposals regulating swaps, though despite publicity and buzz regarding MF Global, the new rule does not appear to address that type of…

John Lothian Newsletter: Europe set to block DB-NYSE tie-up; Citi chief urges risk disclosure shake-up; Hedge funds lock horns with IMF on Greek debt John Lothian Newsletter,Newsletter

Early reports suggest that European regulators are preparing to reject the DB-NYSE merger.  Vikram Pandit of Citigroup suggests that banks should explain the methods used to evaluate risk, providing more insight into the degree of optimism present in bank self-evaluations. Hedge funds involved with Greek debt add their name to the IMF’s “bailout complications” list. And in regulation, the CFTC prepares to vote on Dodd-Frank rules from last year; while other agencies consider including clearing houses, insurers and other types of firms to in “too big to fail” considerations that were once applied just to banks.

John Lothian Newsletter: EU Said to Prepare Draft Decision on NYSE-Deutsche Boerse Merger; Canada Cites NAFTA Breach if Volcker Adopted; Regulators Fleeing Credit Raters Embrace Zero-Risk Greek Bonds John Lothian Newsletter,Newsletter

A draft decision regarding the NYSE-DB merger is underway, and might be released as early as next week.  Canada’s bank regulator joins the opposition to the Volcker Rule, saying its implementation could destabilize economies and violate free trade agreements.  US banking regulators turn away from credit rating agencies (paid by those who are rated) and cast a favorable eye toward the OECD (which represents member governments and rates their bond risk as zero) as a fascinating way to escape organizations without a conflict of interest.  Around the globe, the tide shifts away from 2011-in-review (including “look at all the things…

John Lothian News Top Stories of 2011 Blog,Environmental/Energy,Financials,Managed Futures,Metals,Options,Regulation,Tech / HFT

John Lothian

We’ve created a list of the five most influential stories of 2011 for each of our newsletters, as well as from MarketsReformWiki, to help define what was a very eventful year across almost every market and industry sector. The year was punctuated by one major story inside another. The bankruptcy of MF Global, which requires its own top five list, became tied to another top story, the European sovereign debt crisis sequel – Greece and Italy. Of course, the downgrade of U.S. debt in August and assorted European states raised the ire of politicians and regulators who called for more…

Setting Things Straight Commentary,Regulation

John Lothian

I was amused by Senator Bernie Sanders disclosing confidential information about market participants of the 2008 energy market. Even though this information was confidential and restricted by criminal law from being disclosed by anyone at the U.S. Commodity Futures Trading Commission, there were no rules against Congressional disclosure. Right or wrong, Senator Sanders found a legal loophole and used it. If you underestimated your political risk, that is your fault. We are in a time of increased political risk. In this newsletter, we have long focused on non-price oriented risks. That includes political risk. Headline grabbing political risk is the…

Needing a Bigger Boat Commentary,Tech / HFT

John Lothian

NYSE Euronext and Deutsche Boerse decided they needed a bigger boat.  NASDAQ OMX decided they needed a bigger boat.  ICE is building a bigger ICE boat one deal at a time.  Lots of firms every day decide  they need to get bigger in order to meet the challenges in front of them. On Friday, as I was returning from Brussels from a day of meetings introducing MarketsReformWiki, the line from the movie Jaws popped into my head.  “We need a bigger boat.”  I had seen the shark, the European market regulatory reform shark jump out of the water and it…

The ICE-man cometh Commentary

Jim Kharouf

(The first time something like this happened John was away. This time, John is away on a trip. This goes to show that the world turns, even when John is away or as I see it, it turns more meaningfully when Jon Matte and I are running the newsletter.) I doubled checked with ICE to make sure this wasn’t some kind of elaborate Jeff Sprecher April Fools joke. If this bid from ICE and Nasdaq for NYSE Euronext succeeds, ICE could pull off the biggest deal and perhaps one of the best deals in exchange history. ICE’s portion would mean…