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Tag Archives: futures commission merchant

HFTers adjust; “Low” VIX in context; Chinese firms rush to FX hedges Newsletter,Options

Lead Stories High-frequency traders adjust to overcapacity and leaner times Nicole Bullock – Financial Times Recalling the years around the financial crisis may still bring a shudder to many on Wall Street, but for high-speed traders 2008-2009 were pay dirt. The high-frequency trading industry was still in an early stage. Recent regulatory change, opening the way for competition, and computing advances had paved the way for its rapid development. As markets took fright through the crisis, there was plenty of price volatility and high volumes of asset dealings — the raw materials for any trader to make money. jlne.ws/2ydkdKX ****SD:…

Brand New: Hehmeyer Moves Into Managed Futures & More Blog,Commentary,Feature,Video,video

Sometimes it’s time to diversify. Chris Hehmeyer formed a new firm called Hehmeyer Trading & Investments LLC that will expand into the managed futures and introducing broker space. The renamed company comes from his prior firm, HTG Capital Partners, which acquired Kottke & Associates in late 2016. The new name helps simplify things for Hehmeyer, who has integrated HTG’s proprietary trading operation along with Kottke’s commodity trading advisor and introducing broker business. Hehmeyer, who serves as CEO of the the new entity, sees plenty of opportunity in the CTA business. He said there is an appetite for non-correlated investments and…

Maureen Downs, Rosenthal Collins Group – Brutally Honest: The Role of the Mentor Feature,MarketsWiki Education,MWEd,Mwiki,video

“Everyone wants to be on their team. They understand human nature, they bring people together, they know how to resolve conflict. That makes a great mentor.” Maureen Downs never had a mentor, but she knows what it takes to be a good one. A mentor is not supposed to be your personal cheerleader, or a mommy figure, or a career navigator, and certainly not a fairy godmother who can wave a wand and make your career awesome. A mentor is a leader, one with energy, fresh ideas, a get-it-done attitude, and an ability to resolve conflict. Downs offers a direct,…

Profiles: Tom Kadlec video

From regulation to technology to the revenue structure, futures commission merchants have experienced drastic changes over the last 30 years, as Tom Kadlec, CEO of ADM Investor Services, knows full well. In this John Lothian Profiles piece, Kadlec talks about his career in the futures markets, the importance of mentoring, current challenges and opportunities, and “The ADM Way.” In the winter of 1980, in the final stages of earning his accounting degree, Kadlec had a career chat with one of his finance professors at the University of Iowa, who suggested he try his hand at this “new business” – the…

Singularity: G. H. Financials’ Mark Ibbotson on FCM Efficiency Video

Over the past several years, the FCM community has had much to complain about, as the fallout from the global financial crisis continues. With interest rates hovering near zero, and a greater share of segregated funds required to be held at the clearing house, income streams from “the float” have diminished considerably. The crisis also ushered in a new era of regulation, from heftier capital requirements and required compliance procedures. Meanwhile, new technologies such as automated trading and distributed ledgers, while offering many benefits and efficiencies, require burdensome up-front costs, and are accompanied by new dangers such as cybersecurity and…

Dodd-Frank in Action: Swap Dealer Risk Management Reviews Blog,Commentary,Regulation

The first few years after the signing of the Dodd-Frank Act, the the narrative was all about the future – how an estimated 400 rulemakings would be implemented and how participants would be affected. The future is here, as financial entities begin grappling with the new regulations. One such newly-implemented rule requires swap dealers, major swap participants (SD/MSPs) and futures commission merchants (FCMs) to undergo risk management program reviews. If you are keeping score at home, the SD/MSP reviews are required under CFTC Reg. 23.600 and for FCMs, it is CFTC Reg. 1.11. It is important to note that these…

Boca Bits & Pieces, Day Two Blog,Commentary

Wednesday’s big news came from Nasdaq, which announced plans to enter the energy futures market, challenging the dominance of the CME and ICE. Named Nasdaq Futures (NFX), the new market will launch around midyear with support from leading energy companies. “What do the CME, ICE and Hillary Clinton have in common?” Nasdaq’s CEO Bob Greifeld asked reporters. His answer? “All seem to have a monopoly on their exchanges.”   “We’re here to disabuse you of that idea,” he added. “Monopolies are against the natural order of competitive forces.” Not one of Nasdaq’s customers wanted the new exchange to be a…

New Rules: NFA’s Dan Roth on Confirmations, Residual Interest and the Corzine Rule Interview,Regulation,Video

After the twin scandals of MF Global and Peregrine Financial rocked the futures industry in 2011 and 2012, the National Futures Association underwent a review, not only of its internal procedures, but also of its rules. In Part Two of this two-part John Lothian News exclusive, NFA CEO Dan Roth summarizes the changes made to the agency’s rules to restore customer confidence. Much of the rulemakings addressed by the NFA center on segregated funds – funds owned by customers that are placed on deposit with a futures commission merchant to cover margin on customer positions. “The most important and effective…

Internal Affairs: NFA CEO Dan Roth Highlights Changes in the Wake of MF Global and Peregrine Bankruptcies Blog,Regulation,Video

**Editor’s Note: As news content and technology continue to change, so do we at John Lothian News. Please take a look at our interview with Dan Roth of the NFA, and click on the embedded video sidebar, at the 1:09 or 3:40 minute, marks to see more of our interview. After the twin scandals of MF Global and Peregrine Financial rocked the futures industry in 2011 and 2012, the National Futures Association, underwent a review, not only of its internal procedures, but also of its rules. In Part One of this two-part John Lothian News exclusive, NFA CEO Dan Roth…