Breaking News

Tag Archives: ICE

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…

Futures industry self-regulatory organizations form joint committee to address customer segregation issues Blog,Regulation

The NFA released the following statement on January 18: Futures industry self-regulatory organizations form joint committee to address customer segregation issues CME Group and National Futures Association (NFA) today announced, in conjunction with the InterContinental Exchange (ICE), the Kansas City Board of Trade (KCBOT) and the Minneapolis Grain Exchange (MGEX), the formation of a joint committee to review how self-regulatory organizations can strengthen current safeguards for customer segregated funds held at the firm level in light of the MF Global bankruptcy.

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…