September 28, 2012: Fears Over Counterparty Rules Dent LSE; FSA Seeks To Mend Libor, Not End It; Asian Energy Markets Liquid Enough To Sidestep Dodd-Frank Compliant Firms

Source: John Lothian Newsletter

The London Stock Exchange’s value takes a hit as it announces that new European regulations will significantly impact LCH.Clearnet, the clearing company it is about to control. Also in the UK, the Financial Services Authority takes over the Libor interest rate project and seeks to clean house without completely abandoning the index. In Asia, CME [...]

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September 27, 2012: SEC Looks for the ‘Kill Switches’; CME Announces Launch of Chinese Steel Rebar Swap Futures; Exchanges See No Unfairness in Data Delivery Speeds

Source: John Lothian Newsletter

The SEC launches a broad investigation and overhaul of order placement systems and controls, seeking new ways to control and mitigate damage from high-speed orders.  Sort of “Finding Nemo: The Financial Episode”, perhaps. CME Group announces the planned launch date for the exchange’s new Chinese steel rebar swap futures contract.  Exchanges have carefully considered the [...]

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September 27, 2012: German Cabinet To Agree Tougher Rules On HFT; Ukraine, CME In Talks On Maize, Barley And Sunseed Futures; Nasdaq Product Head Departs For Start-Up

Source: John Lothian Newsletter

Germany reveals cabinet plans to approve a draft law today that tightens up controls for high-frequency trading.  Ukraine and CME Group discuss the possibility of launching new agricultural products for trading. Nasdaq OMX’s European head of product management has elected to step down and start a new consulting firm. In First Read today, take a [...]

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September 25, 2012: Chicago exchange gets investments from State Street, Fidelity unit; Gensler Calls for Overhaul of Libor; Nordic Banks Gain New Status: Haven

Source: John Lothian Newsletter

Chicago’s new Eris Exchange gets backing from State Street and Fidelity. Gary Gensler of the CFTC tells the EU parliament that they should either rework LIBOR, or just throw it away and start over.  Banks in Sweden and Norway, relatively unharmed by financial crises and shocks shaking the rest of the world, strive to keep [...]

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September 24, 2012: Managers Take A Timeout From Stocks; Senate JPMorgan Probe Said To Seek Tougher Volcker Rule; London Regulation Pushes Debt Deals Away

Source: John Lothian Newsletter

Even though the year’s not nearly over, investment managers are thinking about their current track record and wondering if they’re in a position to halt trading already for the year. The U.S. Senate’s committee investigating JPMorgan’s “whale” loss is expected to present its findings in the hope of toughening up the Volcker Rule.  Regulatory arbitrage [...]

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September 21, 2012: Futures group Offers Risk Guidelines; In Calls Ior Market Reform, Multiple Voices; U.S. Seeks to Boost Laundering Net

Source: John Lothian Newsletter

The FOA releases new technical guidelines for mitigating damage from errant electronic trading events; three major exchanges step up and agree to test out the new rules.  Political and professional events add traction and area-of-effect to calls for various kinds of financial reform.  US regulators want to enlist financial firms and others to join in [...]

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September 20, 2012: Regulators Try To Beat Clock In Rate Probe; Nasdaq Disputes Assertion That Facebook Fund Too Small; Ex-CME Programmer Pleads Guilty To Trade Secret Theft

Source: John Lothian Newsletter

The ticking clock is causing U.S. prosecutors to ask for more time in their interest rate-fixing investigations, while the target banks are hoping to hurry the process to minimize risk and damage. Nasdaq, responding to criticism that its Facebook Fail Fund is too small, says that in fact, it’s just exactly the right size given [...]

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September 19, 2012: CME To Introduce Futures That Deliver Swaps; LSE makes play for collateral management market; Fed warns high-frequency trading firms

Source: John Lothian Newsletter

CME Group announces new deliverable interest-rate swap futures contracts.  The London Stock Exchange plans to begin offering collateral management services from its Monte Titoli settlement house in Italy. The Chicago Fed warns that the majority of algo traders and trading venues are relying on “others” to handle exceptions and errors in order flow. First Read [...]

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September 18, 2012: Australian Exchange Chief Criticises HFT; Money-Laundering Inquiry Said To Target U.S. Banks; ASEAN Link Lures Retail Investors To Boost Trade

Source: John Lothian Newsletter

The leader of Australia’s ASX says high-frequency trading is inherently dangerous, and he doesn’t much fancy the exchange model of depending on its high-volume presence for survival. A money-laundering probe is taking shape in multiple agencies, targeting a number of American banks that may have allowed sloppy money controls to help criminal enterprises hide their [...]

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September 17, 2012: ICE push into Europe with Dutch purchase; Exchanges Face SEC Scrutiny on New Products; Nasdaq pushes into post-trade monitoring

Source: John Lothian Newsletter

IntercontinentalExchange hops on the bus to Europe, preparing to take a majority interest in a Dutch energy exchange. The SEC begins to target and investigate exchanges and the way that high-frequency trading customers and processes are handled relative to the rest of the trading population.  As brokers search for better ways to manage trade risk, [...]

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September 14, 2012: ICE Traders Held Talks With CME; ECB’s Nowotny Calls For High-Frequency Trade Ban; Spanish Regulators Clear LSE-LCH Deal

Source: John Lothian Newsletter

Soft commodity traders of ICE Futures U.S. contracts are said to have discussed the possibility of shifting their trades to rival exchange CME Group, if the CME were to offer similar products. In Europe, central banker Ewald Nowotny says it’s time to outlaw high-frequency trading; no word on whether less-frequent trading algorithms would be allowed, [...]

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September 13, 2012: CME Group to launch renminbi futures; RBC Completes World’s First SEC-Registered Covered-Bond Deal; Australia’s Fin Sector Faces Tough New Crisis Rules

Source: John Lothian Newsletter

CME Group steps up to go head to head with HKEx as it announces new offshore renminbi futures products.  Canada’s RBC sells a world-first box of publicly traded, USD-denominated covered bonds.  Australia’s APRA regulator may be given additional power to install new management at banks and other financial institutions when it believes that failure may [...]

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September 12: U.S. Stock Exchanges Plot Fixes For Their Glitches; CBOE Eyes Move Into Asia After London Push; U.S. Said Set To Target First Non-Bank Firms For Scrutiny

Source: John Lothian Newsletter

Major exchange execs are meeting with some of their biggest customers in an effort to devise plans and changes to reduce future technological and procedural failures. CBOE is said to already be looking past London to Asia as its next target for new offerings. U.S. regulators are now considering the non-bank companies to designate as [...]

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September 11, 2012: Bats in talks with FSA over exchange licence; CME reopens claims process for MF Global customers; EEX May Struggle to Take ICE Carbon Share

Source: John Lothian Newsletter

Bats Chi-X Europe is asking to be licensed as an official exchange, seeking to turn up the heat on rivals in London.  CME Group is giving ex-clients of failed brokerage MF Global a second chance to file claims against property owned by the dead company.  EEX got the nod to sell EU emission credits, but [...]

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September 10, 2012: Lawmakers Push to Increase White House Oversight Of Regulators; HKEx Defends Timing Of LME Acquisition; FSA Ramps Up Technology To Spot Market Abuse

Source: John Lothian Newsletter

U.S. legislators have introduced a bill granting, among other things, power to the executive branch of government to micromanage details of the SEC’s activity. Hong Kong Exchange says “pish” to the notion that a downturn in commodity prices overall will cause trouble for its new acquisition, the London Metal Exchange. The UK’s FSA reaches out [...]

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September 7, 2012: CME Europe Plans to Add Currency Options at London Venue; Asia calls for harmony on Dodd-Frank rules; NYSE and CME plan futures ‘kill switches’

Source: John Lothian Newsletter

CME Group continues to issue new information about its planned London exchange; the exchange will trade currency options along with its previously-announced futures contracts.  Asia joins Europe in putting pressure on the U.S. to work internationally for regulatory harmony, rather than attempting to outright impose its homegrown regulatory structure on other countries.  ICAP’s Traiana announces [...]

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September 6, 2012: CBOE looks to set up London base; Citigroup to launch commodity trade finance business; Liquidnet launches Philippines dark pools

Source: John Lothian Newsletter

CBOE announces plans to expand into London with VIX futures.  Citigroup, seeing the European exodus from commodity trading by banks and other firms, decides to take a seat at the table.  Liquidnet opens up its ninth dark venue in Asia in the Philippines. First Read NYSE Euronext Names Crutchfield to Lead U.S. OptionsBy Jacob Bunge [...]

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September 5, 2012: NYSE Euronext Plans SME Futures Contract; ICE Announces Acquisition Of Options Tech Provider WhenTech; Libor Probe Claims Barclays Exec And Trader

Source: John Lothian Newsletter

NYSE Euronext is creating a new futures contract to reflect small and midcap stocks, in the hope of boosting volume in those issues in Europe. Responding to customer requests, ICE says that they will switch all their OTC energy swaps and options to futures contracts in October rather than waiting until early next year. The [...]

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September 4, 2012: Osaka Considers Pricing Change to Boost Volume; Getco to add clearers to European dark pool; India’s UCE to Begin Operations by Year End

Source: John Lothian Newsletter

OSE is thinking about offering rebates to traders for taking positions in volatility index futures on the exchange.  Getco plans to add two new clearers to its dark pool in Europe, angling for new OTC clearing business.  Universal Commodity Exchange, India’s sixth national commodity trading venue, gets ready to open its doors by year end. [...]

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