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John Lothian Newsletter: Commodity Pits Bid Goodbye to Human Traders as CME Closes Floor; U.S. Bank to pay $18 million to end CFTC’s Peregrine case; Howard Lutnick’s BGC Extends Offer for Clearinghouse GFI John Lothian Newsletter,Newsletter

First Read A Reflection on a Life, Its Influences and the Trading Floor John Lothian, John Lothian News I learned recently a life-long friend was diagnosed with pancreatic cancer. My friend and former Wisconsin neighbor is older than me. In fact, at one time he was my babysitter. As I learned yesterday the CME would shut down most of its futures trading pits, his story came rushing back to me. He was one of the young men from Southern Wisconsin who found a way to the Chicago futures markets in the early 1980s. He knew many traders from around the…

A Look at Forensic Accounting and Financial Fraud Interview,Regulation,Video

John Hague and Christen Morand

In the aftermath of the Peregrine Financial Group fraud, many wondered how it could have happened and how forensic accounting works after a fraud occurs. On June 20, John Lothian News president and editor-in-chief Jim Kharouf moderated a panel at the Women In Listed Derivatives (WILD) event on forensic accounting with John Hague, financial services industry leader with McGladrey and Christen Morand, senior manager, Ernst & Young. He sat down with both separately to ask about the accounting space today and how forensic accounting digs into fraudulent cases. Morand talks about the three categories of fraud that her team at…

FIA Boca Preview: Walt Lukken on the 2013 Outlook for the Futures Industry (Part 1) Interview,Regulation,Video

Walt Lukken FIA Boca

Walt Lukken has had his hands full since taking the top spot at the Futures Industry Association (FIA) in March 2012. With FIA Boca set to start on March 12, JLN editor-in-chief Jim Kharouf spoke with him about the industry over the past year, including the fallout and reaction to MF Global and Peregrine Financial Group, the outlook for brokers and why the president and CEO of the FIA believes 2013 will be better than 2012. In advance of the FIA Boca 2013 conference next week, John Lothian News traveled to Washington D.C. this week to interview Walt Lukken, president and…

Confirmations: Plugging Into Electronic Confirmations Regulation,Tech / HFT,Video

Confirmations: Plugging Into Electronic Confirmations

Capital Confirmation, which runs, is credited with helping to unveil the massive $215 million fraud at Peregrine Financial Group (PFG) in July 2012. The web-based audit confirmation service was hired by the National Futures Association (NFA) last year and applied its technology to PFG. After forcing PFG to use the electronic confirmation service, rather than use the traditional paper-based auditing system, PFG’s fraud was discovered by the NFA. Brian Fox, founder and chief marketing officer of Capital Confirmation, explains how this straightforward technology of providing a third party confirmation service, can help protect customer funds and restore customer faith…

Ratings: How Does Your Broker Rate? Regulation,Video

Ratings: How Does Your Broker Rate?

If you knew the financial health of your futures broker, would that help you decide which firm to work with? James Gellert, President and CEO of Rapid Ratings, says futures broker ratings could make for more informed retail and professional investors. Gellert explains how ratings of public brokers and voluntary ratings of private brokers would provide transparency for the FCM community and its customers. Rapid Ratings uses dozens of financial ratios, based on audited financial reports, to provide a score for each firm. In this video, a simple animation and interview with Gellert help explain broker ratings. Futures Broker Ratings…

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.