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Tag Archives: ICE

John Lothian Newsletter: NYSE Seen Facing Tough Battle To Unsettle CME Rate Futures; U.S. Swap Regulators Said to Weigh Dealer Line Above $3 Billion; EMCF to process trades for Turquoise John Lothian Newsletter,Newsletter

NYSE Euronext is seen by some as having a tough fight ahead in their introduction of new interest rate futures. Regulators are considering using the $3 billion mark for determining which financial traders are Dodd-Frank swap dealers. London’s Turquoise will clear its trades through EMCF, signaling the clearinghouse’s willingness to fight to regain lost market share. In the top box, ICE announces new contracts; GFI Group, RJO and Newedge announce management changes; and Doug Ashburn (from Tuesday’s JLN FX newsletter) finds common ground between Longfellow and leverage.

John Lothian Newsletter: CME to Offer Swaps Users Cash Protection That Beats CFTC Rule; EU unveils plan to overhaul settling of trades; Greek bond swap prospects lifted by fresh pledges John Lothian Newsletter,Newsletter

CME Group intends to allow swap traders to keep their collateral cash at a third party. The EU reveals its plans for reforming the way that trades are settled. As the March deadline nears for Greece’s debt payment, more creditors are agreeing to accept the transaction’s terms. In merger news, both CME Group and ICE note their continued interest in hooking up with somebody; and TOCOM is said to be talking to CME Group about a deal to use Globex.

John Lothian Newsletter: MF Global Collapse Prompts Clash Over Collateral; Exchanges Push Back Deadline For New Stock-Market Safeguards; Greek Default Insurance Doesn’t Need to Pay Out After Bailout, ISDA Says John Lothian Newsletter,Newsletter

Considering the MF Global collapse and how it damaged customer funds, various participants in the futures industry bring forth proposals on how to protect customer collateral. Exchange operators in the US agree to let regulators have another three months to figure out what to do about flash crash rules, though they didn’t agree to stay seated while waiting. The ISDA determines that the Greek bailout doesn’t constitute a default event, so insurance doesn’t activate. ICE reports success at keeping most “stupid algo” orders out of its market. And in today’s top box, a JLN Options Sarah Rudolph interview with Russ…

John Lothian Newsletter: NYSE Euronext and CME kick off race for LME; US Regulators Take Aim At Trades Made In Error; Traders Manipulated Key Rate, Bank Says John Lothian Newsletter,Newsletter

Reports are in that NYSE Euronext and CME Group (and possibly ICE) have made a bid for the London Metal Exchange. Regulators are expressing an interest in somehow regulating or punishing firms that let rogue orders into the market.  An unnamed bank in Canada allegedly named UBS, has told regulators there that traders were successful in manipulating LIBOR interest rates. In the top box, John Lothian writes about more fallout from MF Global (looks like nobody’s getting 1099 forms for last year); an article discusses customers who scrape excess funds out of their futures accounts each night, post MF Global;…

John Lothian Newsletter: CFTC Requires Registration by Mutual Funds With Commodities; NYSE Euronext Chief Faces Up To Standalone Challenges; Eurozone dismisses Greek budget deal John Lothian Newsletter,Newsletter

The CFTC votes 4-1 to require commodity-including mutual funds to register with the agency. NYSE-E’s Duncan Niederauer faces a DB-less future, and surveys the coming challenges. In the latest episode of, “There Will Be Greece,” the Eurozone turns its back to the Mediterranean country’s latest budget cut package, calling it incomplete. In the top box, JLN Editor-in-Chief Jim Kharouf takes a swing at JLN Boss-of-All John Lothian’s opinion of CME Group’s CBOT Building deal; and John bids adieu to Jeremy Grant of the Financial Times (who is only moving to Singapore, not offworld).

John Lothian Newsletter: NASDAQ OMX and IKON GLOBAL MARKETS Launch Spot Gold Futures; EU seeks to patch up differences with UK over banks; Concession Smooths Way Toward a Greek Debt Deal John Lothian Newsletter,Newsletter

Nasdaq OMX and IKON Global Markets launch a new spot gold futures product. The EU, hoping to make nice with the UK banking regulators, says that perhaps there’s room in future EU financial regulation to allow a nation to impose stricter local oversight. The European Central Bank agrees to concessions that should make a bailout of Greece more likely, and more likely to work. Direct Edge and ICAP Energy both win awards for being very good at what they do. And in the top box, JLN FX’s Doug Ashburn floats some explanations of the broad decline in FX volume.

John Lothian Newsletter: How Economics Contributed to the Financial Crisis; Stock-picking makes a comeback as macro tides fade; NYSE Euronext loses head of market data John Lothian Newsletter,Newsletter

A Forbes writer points out the economists played a big part in the 2008 market collapse, correcting the oversight of not having blamed them before now. In the search for investment returns, the method pendulum appears to be swinging away from indexes and back toward stock picking as a favored strategy. Mark Schaedel, head of market data at NYSE Euronext, has now been named ex-head of market data, though apparently not for any reason related to the failed merger with Deutsche Boerse. Economic rumbling continues across Europe, with Greece slipping closer to default, and Romania trading out its government for…

JLN Special Report: January 2012 Volumes Down Environmental/Energy,Financials,Managed Futures,Metals,Options,Regulation,Special Report,Tech / HFT

Jim Kharouf

On Your CalendarA little over a month ago, I asked an exchange executive about falling volumes in the options space, to which he said. “January is going to tell us a lot.” January’s message to the options industry wasn’t kind. Most exchanges are reporting lower volumes for the month. Some may call it an off month, but given a host of events that have hit the financial markets – futures, options, stocks and currencies – January may be a harbinger for a rough 2012. CNBC’s Bob Pisani wrote a good story about equity market volume drops and its causes. He pointed out…

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…