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Tag Archives: JPMorgan

John Lothian Newsletter: CFE To Launch S&P 500 Variance Futures On October 4; Chicago Fed warned SEC about high-frequency trading; Bond trading model shows signs of stress John Lothian Newsletter,Newsletter

The CBOE Futures Exchange announces a new S&P 500 variance futures contract, slated to begin trading on October 4 assuming that it receives a thumbs-up (or at least a “thumb-of-no-action”) from regulators.  In the latest episode of, “We Told Them Years Ago,” the SEC comes under fire for having been warned about high-frequency trading two years ago by the Chicago Fed, long before its recent interest in regulating the practice.  New regulations and trading environments are shaking up the once stable domain of the bond trader.  In today’s First Read, be sure to take a look at the second part…

John Lothian Newsletter: Managers Take A Timeout From Stocks; Senate JPMorgan Probe Said To Seek Tougher Volcker Rule; London Regulation Pushes Debt Deals Away John Lothian Newsletter,Newsletter

Even though the year’s not nearly over, investment managers are thinking about their current track record and wondering if they’re in a position to halt trading already for the year. The U.S. Senate’s committee investigating JPMorgan’s “whale” loss is expected to present its findings in the hope of toughening up the Volcker Rule.  Regulatory arbitrage surfaces in London, as debt issuers look overseas to countries with less strict rule interpretations.  In today’s First Read, you’ll find two new interviews:  one with Ryan McElvogue of FFastFill, discussing regulatory and operational risk; and Steven Crutchfield, new CEO of NYSE Amex Options…

John Lothian Newsletter: ICE push into Europe with Dutch purchase; Exchanges Face SEC Scrutiny on New Products; Nasdaq pushes into post-trade monitoring John Lothian Newsletter,Newsletter

IntercontinentalExchange hops on the bus to Europe, preparing to take a majority interest in a Dutch energy exchange. The SEC begins to target and investigate exchanges and the way that high-frequency trading customers and processes are handled relative to the rest of the trading population.  As brokers search for better ways to manage trade risk, Nasdaq signals its entry into the post-trade risk arena.

John Lothian Newsletter: CBOE looks to set up London base; Citigroup to launch commodity trade finance business; Liquidnet launches Philippines dark pools John Lothian Newsletter,Newsletter

CBOE announces plans to expand into London with VIX futures.  Citigroup, seeing the European exodus from commodity trading by banks and other firms, decides to take a seat at the table.  Liquidnet opens up its ninth dark venue in Asia in the Philippines.

John Lothian Newsletter: London Overtakes New York As Brent Oil Beats WTI; Bourses Look To Exotic Market Tech Deals To Revive Revenue; JPMorgan’s “London Whale” Was Prodded To Boost Valuations John Lothian Newsletter,Newsletter

Trading volume in crude oil points for the moment to a new leader, as trading in London pushes past New York’s contract volume. Exchanges, struggling with sagging volume amid economic, regulatory and execution woes, look to technology deals with smaller markets as a way to boost revenue. In the ongoing saga of, “A Whale and His Risk”, JPMorgan’s Bruno Iksil was apparently given instructions to overtrade by his boss. And in First Read today, take a look at the interview with Robert Fitzsimmons of almost-launching online broker Optionshop.

John Lothian Newsletter: TSE bid for domestic rival on knife edge; JPMorgan Shuts Europe Money Market Funds on ECB Rate Cut; Barclays Sued by Investor Over Alleged Euribor Actions John Lothian Newsletter,Newsletter

The Tokyo-Osaka exchange merger continues to hang in the balance, as the recent regulatory approval is followed by shareholder demands.  As European deposit rates go negative, JPMorgan Chase stops taking money market funds there, saying investors may not be able to make a profit. The first class-action lawsuit against Barclays has been filed.  In First Read, John Lothian says another farewell (no, not to this newsletter) and hints at a soon-to-come hello.

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…

Bears, Whales, and the Sound of History Repeating Commentary,Financials

Doug Ashburn

Columnists love the “significant anniversary” storyline, as it is an easy one by which to reflect upon past events, tie the past to the present, and perhaps offer a vision of the future. The anniversary template becomes even more enticing if the columnist has been out sick until just before the deadline, as the story often writes itself. This week marks the fifth anniversary of the event which many would say was the tipping point in the U.S. economy and the beginning of the financial crisis. On June 7, 2007, Bear Stearns, America’s “most admired”  securities firm according to Fortune…

Trustee for the Liquidation of MF Global Inc. Submits Report of Investigation and Recommendations Blog,Regulation

MF Global

Link to the report: (PDF) Press release from James W. Giddens, the Trustee for the liquidation of MF Global Inc.: June 4, 2012 – New York, New York – James W. Giddens, the Trustee for the liquidation of MF Global Inc., today filed a report on his independent investigation into the failure of the broker-dealer with the United States Bankruptcy Court for the Southern District of New York, the Honorable Martin Glenn, presiding. “As attempts were made to transform MF Global into a full-service global investment bank, management failed to add to its Treasury Department and technology infrastructure, which…