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Tag Archives: LIBOR

John Lothian Newsletter: No Criminal Case Is Likely In Loss At MF Global; JPMorgan Chase, Deutsche Subpoenaed Over Libor; ASX Hit By Drop In Equity Trading Value John Lothian Newsletter,Newsletter

Civil suits are planned and filed, but as MF Global investigators near the end of their work, it looks increasingly likely that no criminal charges against executives will be filed.  Subpoenas for information are freshly filed with seven new banks in the ongoing and expanding LIBOR scandal investigation.  Australia’s ASX releases fresh financial data for the issues it trades, and equity value is sharply off so far in 2012.  In First Read today, take a look at the MarketsWiki.tv interview with author Bob Swarup, who discusses the history of financial crises and the outlook for managed funds.

John Lothian Newsletter: Asia’s Oldest Bourse Plans IPO As Third India Rival Opens; FSA Mulls Tougher HFT Controls; Bowles Will Oppose Libor Repo Market Replacement John Lothian Newsletter,Newsletter

BSE in India plans an IPO in the coming months, as newer competitors open their doors. In England, the FSA concludes a four-month look at high frequency trading and considers new rules to define that sector. A European reform agency has taken a look at the state of LIBOR in recent weeks, and believes that replacing it with repo market alternatives would be a mistake. If your company is looking for good people to hire, consider posting your job on the MarketsWiki Job Postings page. There’s no cost to list the openings there, and it’s a popular page with the…

John Lothian Newsletter: Glitches Stir Disclosure Debate; Knight Losses Spur Tighter Automated-Trading Rules From SEC; Standard Chartered Probe Said To Require Up To $700 Mln John Lothian Newsletter,Newsletter

In the “Massive Tech Error Causes Great Pain” department, the three most recent trading faults during the past week provoke a wide range of responses and suggestions.  The SEC, along those lines, is considering tightening up the rules for automated trading in the wake of Knight Capital’s nearly-successful attempt to destroy itself.  And as the first day’s debate over whether Standard Chartered’s Iran-related actions were silly clerical errors or egregious illegal activity, a settlement for said innocuous-or-sinister deeds could rank in the hundreds of millions of dollars.

John Lothian Newsletter: ICE to Transition Cleared Energy Swaps to Futures; Singapore Exchange to set margin requirements; Fidessa expects tough trading to persist John Lothian Newsletter,Newsletter

IntercontinentalExchange says that the time has come to convert its OTC energy swaps into on-exchange futures contracts.  Singapore Exchange is ready to require clearinghouse-held margin for positions to guard against oversized failure.  Trading tech company Fidessa looks at the financial arena and sees tough times ahead in terms of further consolidation and closure.  In First Read, you’ll find fresh updates including a brand new Jobs page on MarketsWiki; pointers to videos shot in London; and a new MarketsWiki.tv video with Joe Mecane of NYSE Euronext, who talks about the company’s Retail Liquidity Program that launches tomorrow.

John Lothian Newsletter: At Least Three Banks Seen Central To Libor Rigging; Surge In Suspicious Trade Reports To FSA; France’s Hollande Lays Dodo Bird Egg With First Budget John Lothian Newsletter,Newsletter

More of Barclays’ partners in Libor crime come to light, and the head of RBS says he expects the bank to pay a hefty fine (given what happened to Barclays, that may be a statement of optimism and hope). Ever since Britain’s FSA declared its intention to spot-check internal corporate vigilance, the number of suspicious trade reports filed by companies with the FSA has doubled. France is set to start its new financial transaction tax on Wednesday, and reactions to the idea are decidedly not all favorable.

John Lothian Newsletter: ICE Futures U.S. To Close New York Trading Floor; CFTC Panel To Weigh New Customer Fund Safeguards; CME Group Executives Launch Defense Of Libor John Lothian Newsletter,Newsletter

IntercontinentalExchange announces that their ICE Futures U.S. New York operation will go fully electronic by fall of this year.  The CFTC’s technology panel takes on the issue of customer fund safety in their latest meeting.  CME Group defends the LIBOR rate product, though not the manner in which it was manipulated.  If you missed it yesterday, you can pick up the interview with Jae-Joon Lim of Korea Exchange, discussing Kospi products and the prospects for yuan-denominated clearing.  Also, Doug Ashburn gets out his pen to cover the solid launch of GCF Repo Index Futures over at NYSE Liffe U.S.

John Lothian Newsletter: Low volumes at U.S. exchanges keep earnings under pressure; PFG Has Regulators on Defense in Congress; Nomura CEO Watanabe to Resign Amid Scandal John Lothian Newsletter,Newsletter

As financial exchanges prepare to release earnings, concern is voiced about poor results stemming from ongoing low volumes.  The PFG fraud scandal brings regulatory leaders before Congress to testify about what went wrong.  In Japan, where systemic wrongdoing is also popping up here and there, the CEO of broker Nomura resigns in the midst of insider-trading problems at that firm.  In MarketsWiki.tv, you’ll find links to new interviews with various people in the industry. 

John Lothian Newsletter: LME Investors Approve Sale To HKEx; New York Fed Faces Questions Over Policing Wall Street; ASX And SGX Set To Share Access To Data John Lothian Newsletter,Newsletter

Voting day has arrived, and the shareholders of the London Metal Exchange vote in favor of a sale to HKEx.  The New York Fed faces pointed questions about why it saw problems with LIBOR rates, yet felt no inclination to actually let anyone outside the system know about them.  If they can’t merge, they can still cooperate:  exchanges in Australia and Singapore agree to share data center resources.  In today’s First Read, Jim Kharouf points out unsavory aspects of a new lawsuit that dredges up old accusations.

John Lothian Newsletter: CME Exploring Use of Clearinghouses to Hold Client Funds; Libor Probe Expands to Bank Traders; Spain, Italy Ban Short Selling to Slow Market Turmoil John Lothian Newsletter,Newsletter

CME Group, stung by a second brokerage that misused its customer funds, proposes taking customer funds away from brokers and storing the money in a safe place.  The LIBOR investigation is now targeting individual groups of traders at multiple institutions. Spain and Italy reinstate previously-ineffective bans on short selling at their exchanges, evidently this time hoping for a different result from the same action.  In today’s First Read, Jim Kharouf discusses the CME Group’s fund safety plan.