Nasdaq asks FINRA to look over the broken pieces of the Facebook IPO; FINRA says it’s normal, but some see a conflict of interest. The CFTC and others are ready to go on swaps rules, but the SEC is having trouble keeping up, delaying the approval of the new regulatory structure. The G20 gets out their public relations wallpaper and plans to issue a resolution today declaring their fervent support of the euro, and their commitment to fixing problems through growth. Today’s first read gives a look at the new JLN Forex logo and blog site; and an opportunity to…
Tag Archives: SEC
NOTE: The following commentary by Neal L. Wolkoff was originally published on his blog. When a publicly listed for-profit exchange handles the initial public offering or IPO of a legendary company, should it be held responsible for investors’ losses if the offering goes badly because of trading glitches caused by the exchange’s technology? Intuitively, the answer appears to be yes, because companies of all stripes have had to compensate victims who suffered losses caused by the corporation’s negligence. However, since 1934 the securities markets have operated in large part as surrogates for the federal regulator, the Securities and Exchange Commission,…
John Lothian Newsletter: Derivatives exchanges push back on reform; Nasdaq to Seek SEC Approval for Facebook-Related Compensation to Brokers; E.U. Proposes Centralized Banking Regulator John Lothian Newsletter,Newsletter
Members of the derivatives industry in the U.S. are digging in against new regulations over exchange volume requirements, saying the new rules would force the closure of low-volume contracts, and ruin new product innovations and offerings. Nasdaq, after its less-than-impressive hosting of Facebook’s stock debut, has requested permission to begin apologizing financially to brokers who claim harm from the process. Eurozone officials, in a “we must all hang together” moment, are proposing to give up fully sovereign control of their banking systems in favor of a community model. In the First Read section, you’ll find more analysis of MF Global’s…
John Lothian Newsletter: SEC Approves Plan To Expand Flash-Crash Safeguards; LME: Last 2 Bidders To Resubmit Sale Proposals June 7; Feds Eye MF’s False Promise John Lothian Newsletter,Newsletter
The SEC gives a thumbs-up on a plan to upgrade anti-flash-crash rules for next year. ICE and HKEx have been told by the London Metal Exchange to think over their purchase plans very carefully, and then resubmit them later this week. Federal investigators are paying more attention to statements made by MF Global employees that warnings of trouble and insufficient funds were ignored shortly before the company imploded.
John Lothian Newsletter: Global regulators plan margin rules soon for uncleared derivatives; LCH.Clearnet left off U.S. “systemic” list; Jones to leave NYSE Euronext amid restructure John Lothian Newsletter,Newsletter
Regulators around the world plan to suggest rules to require clearing derivatives, but they won’t be ready to do that in time for the June G20 summit. Even though it’s a big player in the clearing sector, LCH.Clearnet was omitted from the “systemically important” list of companies in the U.S., despite suggestions that trouble at LCH.Clearnet would strongly affect the American financial system. The EU considers a plan to create a “banking union” (or perhaps more accurately, “a banking failure union”) to spread around and better absorb the shock that could come from failing institutions within the eurozone. Garry Jones,…
John Lothian Newsletter: Hong Kong Exchange’s Arculli Steps Down After Six Years; ICE Futures wins UK carbon sales mandate; US regulators look to ease swaps rules John Lothian Newsletter,Newsletter
HKEx’s Ron Arculli departs as chairman today, and shares his perspective of the future for the exchange. ICE Futures Europe gets the nod in Europe to host carbon auctions for at least the next three years. US regulators are looking for ways to let foreign banks and subsidiaries to avoid new domestic swaps rules.
John Lothian Newsletter: SEC Options Cases Highlight CBOE Regulation; HKEx to offer renminbi futures; Tokyo Trading Glitch Thaws Resistance to Alternative Platforms John Lothian Newsletter,Newsletter
As the SEC takes additional action against broker OptionsXpress, the CBOE finds itself in the middle of a much closer look at how it supervises its members. The Hong Kong Exchange announces plans to issue futures contracts for trading the Chinese yuan. Fault and strategy analysis continues at the Tokyo Stock Exchange over a systematic failure earlier this year. In the top box, John Lothian pens a salute to the S&P 500 Index Futures contract, which turns 30 this year; and OCC and OIC upgrade their support of MarketsWiki to the Partner level.
John Lothian Newsletter: NYSE Seen Facing Tough Battle To Unsettle CME Rate Futures; U.S. Swap Regulators Said to Weigh Dealer Line Above $3 Billion; EMCF to process trades for Turquoise John Lothian Newsletter,Newsletter
NYSE Euronext is seen by some as having a tough fight ahead in their introduction of new interest rate futures. Regulators are considering using the $3 billion mark for determining which financial traders are Dodd-Frank swap dealers. London’s Turquoise will clear its trades through EMCF, signaling the clearinghouse’s willingness to fight to regain lost market share. In the top box, ICE announces new contracts; GFI Group, RJO and Newedge announce management changes; and Doug Ashburn (from Tuesday’s JLN FX newsletter) finds common ground between Longfellow and leverage.
John Lothian Newsletter: HFT slows down in US ahead of exchange action; Weighing SEC’s Crackdown on Fraud; Lenders Again Dealing Credit to Risky Clients John Lothian Newsletter,Newsletter
High frequency trading is on its way to being named “a little less frequency trading”, as activity slows down in the face of exchange rules against certain kinds of order activity. The SEC has passed the century mark in enforcement actions related to the financial crisis, but questions are still pending as to whether the agency has been effective enough. In the “This rock looks familiar” department, banks are once again urging high risk borrowers to take on more debt. And in today’s top box, Simon Rostron of Rostron Parry gets gussied up and bare-kneed in an appeal for kids.