Source: John Lothian 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. First [...]
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Source: John Lothian Newsletter
Exchange CBOE saw renewed fallout from Thursday’s technology mishap on Friday, as bad trades from Thursday appeared in the system after Friday’s market close. ICAP’s EBS currency trading platform is considering abandoning its FIFO order handling system to mitigate an increasing correlation between market domination and the fastest order processing systems. NYSE Euronext is considering [...]
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Source: John Lothian Newsletter
Federal regulators, in a report that was prepared before yesterday, outline technology and platform risks as being significant to the health of the financial system. Yesterday, CBOE became the latest of many companies to highlight that trading on electronic systems is not 100 percent guaranteed. In the energy sector exchanges CME Group and ICE prepare [...]
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Source: John Lothian Newsletter
A ten million dollar payment to the SEC and a promise not to use duckface pictures appears to be on the way for Nasdaq OMX for its handling of Facebook’s IPO. Dark pool operator AX Trading says it will drain the pool and possibly look for a buyer or licenser for its platform. Copper volume [...]
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Source: John Lothian Newsletter
Regulators for the European Union agree to review the ICE-NYSE Euronext merger plan, simplifying the approval or denial process for the two companies. The UK’s Financial Conduct Authority opens a probe into the ISDAfix rate, joining US regulators in looking for rate fixing. NYSE Liffe sues Dutch platform TOM, accusing the options marketplace of creating [...]
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Source: John Lothian Newsletter
Exchange company CBOE contemplates separating its internal regulatory division into an independent entity. The CFTC’s Gary Gensler says it’s time to say goodbye to LIBOR; meaning, really, it’s time NOW to say goodbye. The US and the EU’s central bankers express more unease over potentially conflicting efforts to bring economic stability to their respective regions. [...]
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Source: John Lothian Newsletter
Bats Chi-X Europe taps rival founder David Howson to take the COO reins. In the US, the SEC looks likely to choose Andrew Ceresney to take over from Robert Khuzami as enforcement director. Regulators, both “self” and the independent variety, struggle to find effective ways to regulate trading activity and reduce offenses. JLN’s “CBOE 40” [...]
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Source: John Lothian Newsletter
Exchange CME Group announces the creation of a smaller and more retail-oriented 1K ounce silver contract. The London Stock Exchange continues to elbow its way toward the front of the ETF volume line in Europe. Singapore Exchange is taking a deeper look at last week’s trading delay to guard against future problems. First Read One [...]
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Source: John Lothian Newsletter
CME Group plans to list its iron ore futures products on Globex beginning in May, in a bid to boost participation. OTC market rule changes aren’t bothering the wholesale participants nearly as much as investors, who are far gloomier about the expected loss of business. Bank earnings are rolling in and looking great, and with [...]
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Source: John Lothian Newsletter
Bloomberg LP takes on the CFTC over collateral requirements for swaps, saying the decision to make rates higher for swaps than for comparable futures is arbitrary and unfair. The SEC moves closer to issuing new controls for the money market fund industry. The vast majority of volume in index credit-default swaps has drained out of [...]
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Source: John Lothian Newsletter
Regulators in the US and UK consider working together as an improvement toward reducing the risk of financial rate manipulation. Commodity giant Cargill’s CEO warns that trading houses need to embrace transparency and ethical behavior, or risk becoming as highly regarded as the banking industry. After more than a year and a half of floundering, [...]
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Source: John Lothian Newsletter
Looking for a speed boost, the Warsaw Stock Exchange shifts ever-increasing volume over to NYSE Euronext’s trading platform. Regulators are looking more likely to create rules that will require brokers to disclose signing bonuses when they join new firms to clients. Leaving aside images of insects and rodents, banks are departing from the ISDAfix rate-setting [...]
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Source: John Lothian Newsletter
The International Securities Exchange steps forward on the road to launch a second options exchange in the US. No word yet on whether this will turn into a national chain. Many smaller financial firms may find themselves unable to use OTC derivatives products in June, as new rules and costs may put clearing those trades [...]
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Source: John Lothian Newsletter
The US Federal Reserve accidentally leaks its minutes several hours early to a handful of people, and regulators are looking for evidence that early trading on that data took place. Recent talks between exchanges in Vienna and Warsaw will hopefully result in a friendly merger in the coming months, according to folks in Vienna. And [...]
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Source: John Lothian Newsletter
The SEC proposes a new testing regime to evaluate the ability of exchanges and brokerages to recover from natural and terrorism-related disasters. As regulatory scrutiny of the ISDAfix swap rate increases, the ISDA brings in a consultant to evaluate whether there’s a better way to set that rate. FCMs clearing OTC derivatives say that new [...]
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Source: John Lothian Newsletter
Mary Jo White receives unanimous approval in her bid for confirmation as chair of the US SEC. The Warsaw and Vienna stock exchanges are in talks to discuss a possible merger. The CFTC has subpoenaed brokers at ICAP with regard to possible rate-fixing, though ICAP says that they don’t contribute to the rate in question. [...]
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Source: John Lothian Newsletter
Hong Kong Exchanges starts extended trading hours in some of their products, in a bid to capture increased volume from global participants. The government of France is calling on some of its largest banks to take a stake in the possible Euronext spinoff. CME Group considers Chile as a possible copper warehouse location, as the [...]
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Source: John Lothian Newsletter
Large brokerages look to starting futures exchanges as a way to cope with new financial regulations and at-risk volume. The CBOE Futures Exchange moves closer to 24-hour trading of their VIX futures products by nearly doubling trading hours. Singapore Exchange gears up to start its new iron ore futures trading next week. First Read Cross-country [...]
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Source: John Lothian Newsletter
CFTC Commissioner Bart Chilton wants to hold off on punishing swap end-user errors until all the rules are complete and understood. After much shuffling and considering, the Bank of Japan unveils an aggressive new course of action to hopefully improve the nation’s economy. After almost three years, one of the few generally accepted causes for [...]
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Source: John Lothian Newsletter
Chi-X Australia gets a new CEO from GETCO. Banks are covered under new Dodd-Frank swap market rules, unless they happen to be trading between their own affiliate companies. Spinoffs, anyone? The SEC announces guidelines and an affirmation that under certain circumstances it is ok for companies to use social media to announce things. First Read [...]
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Source: John Lothian Newsletter
Nasdaq OMX Group gains a port of entry into the cash treasuries market with an agreement to buy the eSpeed trading platform from BGC Partners. The UK renames its “failed [regulatory] regime”, repaints the front door in in two colors, and unlocks it for business again. Charles Li and HKEx look to the future with [...]
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Source: John Lothian Newsletter
CME Group and Nasdaq OMX plan to launch a new wireless data service in May that will create a data link for high-frequency traders between Chicago and New York. In Europe, the launch date for Nasdaq’s new NLX market is pushed back as UK regulators continue to evaluate the clearing side of the venture. Tokyo [...]
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