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Tag Archives: regulatory reform

John Lothian Newsletter: U.S. Regulators Said to Weigh Volcker Exemption for TruPS CDOs; U.S. Senate panel to mull regulation of banks, physical commodities; Draghi Raids Bankers in Rush to Hire 1,000 for Supervisor John Lothian Newsletter,Newsletter

First Read Q. and A. With ‘Frontline’: How Do You Catch a Trader? On Tuesday evening, “Frontline” took a comprehensive look at the investigation of insider trading on Wall Street in “To Catch a Trader.” This is a report about how hedge funds, including Steven A. Cohen’s SAC Capital Advisors, sought an “edge” by gathering information about companies to trade ahead of other investors, reaping outsize gains. ***** This is worth a watch. ++++ CME Group to Sponsor LPGA’s $1 Million Season-Long Points Race Erik Matuszewski – Bloomberg CME Group Inc. (CME), owner of the world’s largest futures…

John Lothian Newsletter: US regulator acts to reform futures trading; US regulator calls for stock trading rules review; Hong Kong listings revival offers sovereign wealth path to China John Lothian Newsletter,Newsletter

First Read Special Report from Fidessa: You Only Live Twice: Creating the FCM of the Future Steve Grob, Fidessa Published in 1964, Ian Fleming’s eleventh Bond novel describes the change in 007 from a depressed man in mourning, to a man of action ready to rise up and take on the world again. In a similar way, the global derivatives industry is undergoing the same metamorphosis. For some time now the industry has been battling against multiple headwinds – low interest rates, falling commissions and an image tarnished by the spectacular failures of some individual firms. New regulations have also…

John Lothian Newsletter: ICE’s takeover of NYSE to close on November 13; Big Banks May Block Traders From Chat Rooms; NYSE Proposes One-Year Pilot Program for Larger Stock Trades John Lothian Newsletter,Newsletter

First Read Bloomberg’s Matthew Philips Wrong On HFT and Don Wilson John Lothian It is clear to me that Bloomberg reporter Matthew Philips does not understand what he is writing about in his story about Don Wilson and his conflict with the CFTC. Mr. Philips tries to frame this story in his lead paragraph as the “opening salvo” between the CFTC and high-frequency traders. It is not. He is wrong. So let’s dismiss this argument first. There is no high-frequency trading in swaps trading. Period. Perhaps when we get the SEFs fully up and running and all potential swaps dealers…

John Lothian Newsletter: Sommers Will Leave CFTC July 8 After Leading Review of MF Global; Europe steps up regulatory assault on CDS; Deutsche Börse launches cloud computing marketplace John Lothian Newsletter,Newsletter

CFTC commissioner Jill Sommers will head out the front door next week, vacating her position there. The EU turns up the heat on derivatives traders, and considers past sins as well as future requirements. Deutsche Börse announces plans to create a trading venue for cloud computing resources.

John Lothian Newsletter: In Fight Over Bank Rules, Regulator Calls for Compromise; EU agrees breakthrough in market rules; FX Rates Said to Face Global Regulation in Libor Review John Lothian Newsletter,Newsletter

A CFTC commissioner wants the regulatory agency to reach out and compromise with overseas regulators on regulating foreign risk. In a probably unrelated turn of events, EU member states reached a milestone agreement on certain bank transactions and competition between clearing companies. As LIBOR’s fallout rolls onward and new allegations of currency rate manipulation surfaces, regulators around the world consider the idea that it might be good to regulate the way currency rates are set. In today’s First Read, take a look at another excellent interview: Julie Dixon, managing principal at Titan Regulation, discusses the origins of the Market…

John Lothian Newsletter: ASX plans rights issue to meet new capital rules; NYSE Euronext appoints Eric Forest as Chairman and CEO of EnterNext; European swaps reporting deadline facing further delays John Lothian Newsletter,Newsletter

Australia’s stock exchange goes on a capital-raising mission. NYSE Euronext picks a CEO for their new EnterNext venture. Regulatory reform in Europe is said to have hit a roadblock as underfunded regulators and industry opposition takes its toll.

John Lothian Newsletter: EU Seeks Views on ICE-NYSE Commodity Impact Amid Trader Concern; A Regulator Rift Roils Rules; NYSE Liffe Sets July 1 Clearing Transition to ICE Clear Europe John Lothian Newsletter,Newsletter

EU regulators evaluating the proposed ICE-NYSE merger are looking at competetive risks in the soft commodity sector. US regulators continue to edge toward rules designed to mitigate the future potential for financial crises, but that progress also continues to increase tensions between the US and Europe. NYSE Liffe sets July 1 as the conversion date for beginning to clear derivatives trading through ICE Clear Europe.

John Lothian Newsletter: Regulators Tighten Rules On Trading of Derivatives; Nasdaq halts trading in some options contracts due system issues; Regulators Target Exchanges As They Ready Record Fine John Lothian Newsletter,Newsletter

The CFTC votes 4-1 on a package of new rules that nobody likes very much, including the CFTC. Nasdaq posts the latest trading halt caused by a system fault. Regulators prepare to issue a big fine to an exchange, and are considering increasing their regulatory presence there in the future.

John Lothian Newsletter: OTC trading reform threatens Asian markets; Deutsche Börse hit by earnings slowdown; CBOE Says ‘Fully Confident’ Software Bug Resolved John Lothian Newsletter,Newsletter

Asian financial markets struggle with the need to keep up with Western regulation, and the risks that regulation could pose to future growth. Exchange Deutsche Börse reveals tough conditions in its latest quarterly results. And the CBOE says that their software defects leading to last week’s trading suspensions are now fully understood and mitigated.