CME Group steps up to go head to head with HKEx as it announces new offshore renminbi futures products. Canada’s RBC sells a world-first box of publicly traded, USD-denominated covered bonds. Australia’s APRA regulator may be given additional power to install new management at banks and other financial institutions when it believes that failure may be imminent. And in today’s First Read, John Lothian finally announces his retirement… of a sort.
Tag Archives: HKEx
John Lothian Newsletter: SEC finalizes derivative definition rules; LME shareholders to vote on Hong Kong sale on July 25; Fed knew of Libor issue in 2007-08, proposed reforms John Lothian Newsletter,Newsletter
The SEC creates final versions of definitions to use to regulate various Dodd-Frank-covered products. London Metal Exchange has set a date this month to vote on whether to be acquired by HKEx. The ongoing LIBOR scandal investigation produces evidence suggesting that the US Federal Reserve knew as early as 2007 that something was fishy with the way rates were being set. In First Read today, get an update on the Peregrine/PFGBest situation, including comments from John Lothian asking some good initial questions about why pre-MF Global evidence of trouble did not prompt regulatory action. Also, make sure you take a…
John Lothian Newsletter: Public Exchanges Duel With Newcomers Over Trade Transparency; Derivatives Rules Have Swaps Users Eyeing Shift To Futures; HKEx COO Sees Need For Closing Auction Revival John Lothian Newsletter,Newsletter
As exchanges seek volume to stay growing and profitable, both NYSE Euronext and Nasdaq are seeking to compete in the dark pool arena. In response to the regulatory push for more control over derivatives, many swaps participants are reviewing their business models with an eye to shifting to less onerous solutions like futures transactions. HKEx is considering the reinstatement of a stock price closing auction as a way to smooth price volatility.
John Lothian Newsletter: Indonesia Eyes Foreign Investment In Commodity Exchanges; Hong Kong-LME Deal Spurs Biggest Exchange Drop; Wash Trading By HFT Firms Said To Face US Scrutiny John Lothian Newsletter,Newsletter
Indonesia says that foreigners can purchase up to a 40% stake in its commodity exchanges, hoping to spur growth and interest there. HKEx bids for the London Metal Exchange, hoping to grow its business, but in the process its stock has lost a huge chunk of its value. Regulators are investigating high-frequency trading companies to see if they are conducting zero-net trades with themselves as a way to alter market prices to their advantage.
John Lothian Newsletter: Hong Kong Exchanges Bid For LME Beats Out ICE; Bair Decries Hyperventilation Over JPMorgan Loss; Icap Tempts Plus Shareholders With L500K Sweetener John Lothian Newsletter,Newsletter
After carefully reviewing the photo of the finish line, the board of the London Metal Exchange declares HKEx to be the winner of the exchange purchase derby, though these races are known to continue even past the finish line. Former FDIC head Sheila Bair points out that while JPMorgan’s whale of a trading loss is a big deal, it doesn’t do any good (other than perhaps politically) to get all hysterical about it. Broker ICAP offers a cookie to disgruntled Plus Markets shareholders in the form of an extra half-million pounds for its attempted buyout, but simultaneously warns the dissidents…
John Lothian Newsletter: ICE reportedly bids $2 billion for LME; CBOT to add 45 minutes to open-outcry grain trading; Bailout for Spain’s banks buys time for Europe John Lothian Newsletter,Newsletter
The LME bids are out, with ICE taking the early lead at an even USD 2 million, a whisker more than HKEx’s figure. CME Group, responding to controversy over the opening times for grains, adds another 45 minutes to the pit session’s time. Europe announces a bailout package for Spain’s straining banks, and the markets jump for joy; at least, until people went home and thought about it over the weekend.
John Lothian Newsletter: SEC Approves Plan To Expand Flash-Crash Safeguards; LME: Last 2 Bidders To Resubmit Sale Proposals June 7; Feds Eye MF’s False Promise John Lothian Newsletter,Newsletter
The SEC gives a thumbs-up on a plan to upgrade anti-flash-crash rules for next year. ICE and HKEx have been told by the London Metal Exchange to think over their purchase plans very carefully, and then resubmit them later this week. Federal investigators are paying more attention to statements made by MF Global employees that warnings of trouble and insufficient funds were ignored shortly before the company imploded.
John Lothian Newsletter: SEC Probes Operators’ Use of Multiple Markets; ‘Gray Market’ Crops Up for New Issue of Greek Bonds; Hong Kong to bolster its clearing house John Lothian Newsletter,Newsletter
The SEC is looking into the possibility that some exchanges favor their biggest customers at the expense of smaller traders. A couple of banks are already trying to make a market for Greece’s new bonds, even though they don’t exist yet. HKEx unveils plans to beef up their clearing house to meet post-2008 regulations and demand. The MF Global story continues, with continued protests over executive bonus plans; and recommendations from the NFA on how to better manage customer funds in the future. In Europe, now that Greece is no longer scalding hot, the financial transaction tax receives more attention.