European regulator Esma takes a closer look at the three largest credit rating agencies, to see if those companies are sufficiently rigorous in their activity. An official in the Federal Reserve suggests expanding future bank stress tests to include sponsored mutual fund data. In a sign of the “reduced volume” times, the stock exchange in Oslo is cutting back its trading hours in an effort to increase trading volume in the remaining open hours.
Tag Archives: LIBOR
John Lothian Newsletter: Barclays Fined by U.K., U.S. for Falsifying Libor Rates; Tensions rise over regulatory over-reach; Regulators Probe Role of ‘Glitches’ in Market Upheavals John Lothian Newsletter,Newsletter
Barclays is fined most of its petty cash and actually has to admit wrongdoing in the LIBOR rate-fixing scandal; more fallout may occur both within Barclays and in other accused institutions. As national regulators struggle to oversee a global financial industry, tempers rise as various agencies are viewed as playing in their neighbors’ yards without permission. Stock market overseers are looking into the possibility that a number of past market mayhem events may have had roots in electronic corruption of one version or another. In today’s First Read, John provides the latest “kilt blackmail” photo, this time of Simon Rostron…
John Lothian Newsletter: HKEx Targets Dual-Currency Listings; EU watchdog publishes draft derivatives rules; Libor Guardians Said to Resist Changes to Broken Benchmark Rate John Lothian Newsletter,Newsletter
Hong Kong Exchange, not content to sit around while waiting for the LME to arrive, announces plans to create a stock listing denominated both in HK dollars and the yuan. ESMA, the EU’s financial regulatory agency, delivers its draft regulations to control derivatives transactions. Despite allegations of rampant corruption and conflicts of interest in setting the LIBOR interbank lending rate, bankers and regulators are reluctant to make changes to how the rate is set, out of concern that changes may invalidate trillions of dollars worth of contracts based on the rate.
With interest rates hovering around zero, with no lift in sight, the overnight rates market has been looking for new instruments that better reflect the market. NYSE Liffe U.S. is trying to fill that demand with its new General Collateral Finance or GCF Repo Index futures contract. The new contract, which will compete with the Fed Funds futures and LIBOR, is designed by DTCC for NYSE Liffe U.S. and is set to launch on July 16th. JLN editor-in-chief Jim Kharouf reports on NYSE Liffe U.S.’s recent introduction of the new contract in Chicago.
John Lothian Newsletter: CME Group, BM&FBOVESPA Agree to x-list Index Futures; Libor Links Deleted as BBA Backs Away From Tarnished Rate; Athens, creditor group turn up heat on Greek bondholders John Lothian Newsletter,Newsletter
CME Group and BM&FBOVESPA agree to cross-list stock index futures, probably with a somewhat simpler symbol than CMEBMFBOVESPASP500. The British Bankers Association, as it helps to consider an improved way to calculate Libor that doesn’t involve collusion, quietly removes links on its web site to material explaining how they helped to design the old way of calculating it. Greece tells creditors balking at the bond swap deal that if they don’t accept the losses in the package, Athens may forcibly hand it to them anyway. TOCOM says no way, it’s not asking CME Group to take a stake in the…
John Lothian Newsletter: CFTC delays vote on swap dealer designation; Egyptian bourse leads world this year; JPMorgan, HSBC Implicated by Informant Bank in Canada Libor Case John Lothian Newsletter,Newsletter
The CFTC declares itself not yet ready to vote on who gets to be a swap dealer and live with extra regulation. The Egyptian Exchange posts the best results worldwide so far for the year, though there is still some time left for others to challenge that mark in 2012. JPMorgan and HSBC are fingered as lawbreakers by the singing canary bank of the LIBOR probe in Canada. In today’s top box, John Marshall Law School lends its support to the newsletter; Jon Matte includes his FX commentary from yesterday; and you’ll find the surprising answer to the question, “What’s…
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: State Street plans OTC derivatives platform; NYSE, Deutsche Boerse Set To Vie For Technology Business; CBOE to List Futures on Brazil, Oil Volatility Indexes John Lothian Newsletter,Newsletter
State Street announces that they plan to start up an OTC swaps trading platform, to go along with a previously-announced swap clearing facility. NYSE-E and DB, no longer trying to live under the same roof, re-engage as competitors with a focus on trading technology and services. CBOE announces plans to list volatility index products for Brazilian stocks and oil. In ongoing stories, the dig into LIBOR-fixing continues to produce results; Volcker is still a household word; and MF Global’s bankruptcy trustee agrees to share nicely with others. In the top box, John Lothian unveils his latest plans for world travel,…
John Lothian Newsletter: Deal Size Becoming A Bigger Deal In Investment-Grade Bond Issues; Canada Examines How Benchmark Rates Get Set; Foreign outcry over ‘Volcker rule’ plans John Lothian Newsletter,Newsletter
Corporate bond investors find themselves managing liquidity issues as bank trading partners shed their holdings in advance of tighter regulations. Canada joins in the LIBOR price-fixing hunt. The US hears strident objections from overseas regarding the impending Volcker Rule, along with strident objections and support inside the country as well. Paul Volcker tells offshore worriers, “Seriously, dudes, chill,” using a somewhat more complete vocabulary.