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Tag Archives: LIBOR

John Lothian Newsletter: Futures Overseer Plots Revamp; Singapore Exchange Chief Eyes Asia IPOs; NYSE Seeks Clearing Expansion, Cost Cuts John Lothian Newsletter,Newsletter

Regulators in various financial centers are showing, for the moment, energy and motivation for reviewing and upgrading policies and practices. The Singapore Exchange’s head continues to work on organic growth rather than mergers, and has his eye on boosting Asian IPOs. Following their failed merger, NYSE Euronext looks to cost cutting and increased clearing services to light its way forward.  In First Read today, Jim Kharouf experiences the pain of theft, and finds it’s not much different being ripped off by a financial thief or a common household burglar.

John Lothian Newsletter: Libor Director Swaps BBA For Thomson Reuters; Singapore Bourse Says Not In Merger Talks With LSE John Lothian Newsletter,Newsletter

Libor Director Swaps BBA For Thomson Reuters; Singapore Bourse Says Not In Merger Talks With LSEThe director responsible for the management of the setting of Libor at the British Bankers’ Association has left his post, just as a group of banks being investigated in an interest-rate rigging scandal are looking to pursue a group settlement with regulators. Lots of talk about SGX and LSE planning a merger, although it seems that is being refuted.

John Lothian Newsletter: Rate probe turns to four major banks; US regulators warn of tri-party repo risk; Singapore Exchange tightens listing rules John Lothian Newsletter,Newsletter

As expected, the baleful eye of the regulators swings toward four more banks that may have engaging in LIBOR shenanigans with Barclays.  As if the current crop of regulatory train wrecks were not enough, the tri-party repo market is flagged as having been systemically vulnerable to trouble for years.  Singapore Exchange toughens requirements for listing companies, hoping to reform its roll of titles and attract more interest from around the world.  In the top box, take a look at a MarketsWiki.tv interview with Cinnober CEO Javier Tordable; and if you haven’t seen the MW.tv interview with Kevin Cook of Autumn…

John Lothian Newsletter: HSBC Probe Shows Bank Allowed Money Laundering; Barclays executive says acted on orders on Libor; NYSE shelves plans for CFD market John Lothian Newsletter,Newsletter

Senate investigators call HSBC’s number in the “banking scandal queue”, and release their statement detailing the bank’s involvement with terrorists and money launderers.  In London, a Barclays exec testifies that contrary to what was said last week, he did indeed get orders to jimmy the LIBOR rate from his CEO boss.  Only months after announcing it, NYSE Euronext puts away plans to create a retail CFD trading platform for commodities, currencies and equities.

John Lothian Newsletter: U.S. Is Building Criminal Cases In Rate-Fixing; Trading In Paradise: Green Light For First Seychelles Exchange; U.S. Approves New Rules To Protect Futures Customers John Lothian Newsletter,Newsletter

The U.S. Justice Department is identifying both firms and individuals as prosecution candidates in the unfolding LIBOR scandal. On a related note, Deutsche Bank volunteers to be the First Canary, and help take down its former rate-fixing pals in exchange for a lighter punishment of its own. The Seychelles steps up to create a new exchange, evidently seeing fresh opportunity in globally-declining volumes and industry consolidation. The CFTC takes bold steps in the wake of the MF Global… that is, the PFG scandal, and moves to approve rules to help protect customer funds against yet another looting crisis.

John Lothian Newsletter: Peregrine Details Plans For Liquidation; Banks’ Libor Costs May Hit $22Bn; Let Sellers Of The LME Beware John Lothian Newsletter,Newsletter

The trustee for exploded brokerage Peregrine Financial announces the liquidation plan for the company; along with that news, there are plenty more updates, developments and commentary on PFG in the newsletter. Continuing liability analysis of the LIBOR scandal suggests banks might pay out more than $20 billion in related settlements and fines. Not all is happiness and rainbows regarding the sale of the London Metal Exchange to HKEx; more than one industry participant expresses concern over the possibility that well-established and efficient transaction conduits could be negatively affected by a transfer of ownership.

John Lothian Newsletter: Fall of Peregrine’s Wasendorf Presaged in Christmas Toast; Canada’s TMX in Talks to Buy Direct Edge; LSE and Singapore set to cross-trade John Lothian Newsletter,Newsletter

TMX Group, in the middle of being acquired, is looking to buy Direct Edge.  London Stock Exchange and Singapore Exchange create a preliminary agreement for cross-listing, possibly indicating closer ties between the exchanges. The CFTC may act on MFGlobal-prompted client-fund protection rules, now that PFGBest has lit another fire of need underneath that agency.

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: 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.