Source: John Lothian Newsletter
As financial exchanges prepare to release earnings, concern is voiced about poor results stemming from ongoing low volumes. The PFG fraud scandal brings regulatory leaders before Congress to testify about what went wrong. In Japan, where systemic wrongdoing is also popping up here and there, the CEO of broker Nomura resigns in the midst of [...]
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Source: John Lothian Newsletter
Voting day has arrived, and the shareholders of the London Metal Exchange vote in favor of a sale to HKEx. The New York Fed faces pointed questions about why it saw problems with LIBOR rates, yet felt no inclination to actually let anyone outside the system know about them. If they can’t merge, they can [...]
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Source: John Lothian Newsletter
CME Group, stung by a second brokerage that misused its customer funds, proposes taking customer funds away from brokers and storing the money in a safe place. The LIBOR investigation is now targeting individual groups of traders at multiple institutions. Spain and Italy reinstate previously-ineffective bans on short selling at their exchanges, evidently this time [...]
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Source: John Lothian 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 [...]
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Source: John Lothian 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 [...]
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Source: John Lothian 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 [...]
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Source: John Lothian Newsletter
Gary Gensler, head of the CFTC, agrees that the agency fell short when it failed to detect fraud at Peregrine over a 20-year time frame. With a second, fresh failure in the “customer fund safety” department, a number of companies and regulatory groups in the futures industry have agreed to undertake bold steps to actually [...]
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Source: John Lothian 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 [...]
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Source: John Lothian 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 [...]
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Source: John Lothian 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 [...]
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Source: John Lothian 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. First [...]
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Source: John Lothian Newsletter
The CFTC votes to approve swaps definitions, opening the door to the start of regulatory overhaul for derivatives products. Evidence suggests that the leader of failed brokerage PFGBest used complex and sophisticated schemes such as a post office box to confound and fool regulators for years. China announces that foreign hedge funds are now allowed [...]
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Source: John Lothian 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 [...]
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Source: John Lothian 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 [...]
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Source: John Lothian Newsletter
The London Metal Exchange (and by extension, HKMEx) have big plans for iron ore products, but the exchange’s recent competitive failure with steel calls those plans into question. Singapore Exchange announces that they’re ready to list, trade, quote and settle securities in renminbi. NYSE Euronext’s controversial plan to offer undisplayed orders gets approval from the [...]
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Source: John Lothian Newsletter
Exchange ISE files paperwork with the SEC for approval to open a second options trading venue at the end of the year. Barclays’ Parade of Disgrace continues in the LIBOR rate-fixing scandal, with now ex-CEO Bob Diamond unceremoniously shown the sidewalk outside the front door; new investigations into other institutions and criminal charges suggest that [...]
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Source: John Lothian Newsletter
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 [...]
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