July 31, 2013: SEC Examining Trading on Nonpublic Information in Commodity Markets; NYSE Sees ICE Deal Closing in the Fall; MF Global sues banks for restricting competition in CDS

Source: John Lothian Newsletter

Fresh off its completion of fixing all major stock market problems, the SEC considers the possibility of beginning to regulate insider trading in commodity markets. The head of NYSE Euronext says that its merger with ICE is on target and headed for a fall completion. MF Global — what’s left of it, anyway — sues [...]

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July 30, 2013: SEC Approves ISE’s Form 1 Application for ISE Gemini; Hedge Fund’s Suit on Fannie and Freddie May Spell Trouble for U.S.; Solid start for NLX but the real challenges lie ahead

Source: John Lothian Newsletter

The International Securities Exchange receives SEC approval to begin operation of its new Gemini options exchange, and plans to open its doors in early August. A lawsuit against the US government by a hedge fund may finally pry open the lid on bailout practices. New exchange Nasdaq OMX NLX is up and running, gradually gaining [...]

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July 29, 2013: Nasdaq boosts NLX to break rates duopoly; Hedge funds gripped by crisis of performance; Esma yields to pressure on futures reporting

Source: John Lothian Newsletter

Nasdaq reports heavy cash support used to develop business for its new NLX London exchange unit. The hedge fund industry faces sour looks in all directions, from issues with recent and ongoing lackluster performance to questions about the legitimacy and legality of past profits. Europe’s regulator ESMA appears to be bowing to industry pressure, and [...]

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July 26, 2013: U.S. CFTC looks set to keep margin rules despite industry outcry; Mifid reforms fail to benefit smaller fund managers; WFE 2013 1H Highlights: Share Trading Value Increases 23pct

Source: John Lothian Newsletter

The CFTC is ready to maintain its position that it’s a bad thing for one trader’s unused funds to be temporarily diverted to pay for somebody else’s problems. In Europe, six years after the Mifid financial reforms, little benefit appears to have accrued for smaller fund managers. The World Federation of Exchanges reports a substantial [...]

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July 25, 2013: First RMB Shares To Start Trading On SGX; JPMorgan’s commodity arm eyes sale of power plant trading deals; CBOE plans to buy options tech provider LiquidPoint from ConvergEx

Source: John Lothian Newsletter

Singapore Exchange places its first listing on its new dual-currency trading platform. JPMorgan looks to sell off a range of its electricity deals as more attention is paid to banks and commodity trading. Exchange CBOE looks for a purchase agreement for ConvergEx’s options technology subsidiary LiquidPoint. First Read Eighteen Years Later John Lothian Eighteen years [...]

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July 24, 2013: SGX clearing fund in focus as tough new rules put to the test; Singapore loosens Switzerland’s grip on wealth management; NYSE proposes new emergency backup plan

Source: John Lothian Newsletter

Singapore Exchange indicates that contributions to its clearing fund are rising as it prepares to evaluate the fund against international standards. Also in Singapore, banking and wealth management are on the rise compared to Switzerland, but the Swiss aren’t particularly worried. NYSE Euronext is overhauling its New York disaster plans to make it easier on [...]

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July 23, 2013: High-frequency trader fined in transatlantic clampdown; Hong Kong ETF turnover surges 80pct during first half; US watchdog acts on metals warehousing

Source: John Lothian Newsletter

Regulators in the UK and US bag a trader for electronic order spoofing. ETF trading volume in Hong Kong nearly doubles in the first half of this year as investors sought out mainland stocks. News coverage intensifies along with regulatory scrutiny of physical commodity trading and warehouse practices. First Read Summer Intern Education Series Update: [...]

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July 22, 2013: Fed rethinking move allowing banks to trade physical commodities; S.E.C. Rejects Its Own Deal With Hedge Fund Manager; CME Group makes Hong Kong headway

Source: John Lothian Newsletter

The Federal Reserve is taking a closer look at the wisdom of its 2003 decision that allowed regulated banks to trade physical commodities. The SEC’s quick-and-cheap settlement with hedge funder Philip Falcone gets a big thumbs-down from… the agency itself. CME Group makes forward progress in its Hong Kong trading center. First Read CME Group [...]

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July 19, 2013: CME Agrees to Clear Credit-Swap Futures Being Designed by TrueEX; Finra Scrutinizes High-Speed Trading Firms; Nasdaq forum website hacked, passwords compromised

Source: John Lothian Newsletter

CME Group will provide clearing services for TrueEX’s new credit-default swaps. FINRA sends information requests to high-speed trading firms regarding their ability to mitigate market disruptions from their trading activity. Hackers break into secret rooms in NASDAQ’s online forum and gain access to password data. Those passwords… they WERE encrypted, right? First Read John’s Update [...]

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July 18, 2013: CME’s Duffy Warns Senate That Proposed CFTC Rule to Hurt Brokers; Ian Axe quits LCH.Clearnet; India toughens up on insider trading

Source: John Lothian Newsletter

A proposed rule to help protect customer funds could create fundamental and undesirable changes in the futures industry, according to the head of CME Group. Clearing house LCH.Clearnet loses its head, and must search for a new leader. India’s financial regulator gets new powers, though possibly not super powers, that should enable it to take [...]

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July 17, 2013: EuroCCP-EMCF Sign Deal to Form Pan-European Clearinghouse; Cordray Confirmed as Head of Financial Watchdog; Half of exchanges fight off cyber attacks

Source: John Lothian Newsletter

Clearing companies EuroCCP and European Multilateral Clearing Facility begin the merger process, the end result of which would be Europe’s biggest stock clearing facility. Richard Cordray is finally confirmed as head of the Consumer Financial Protection Bureau in the US, allowing him to actually hold that title before he retires from the job. Half the [...]

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July 16, 2013: Tokyo Exchange Merges With Osaka to Form World’s No. 3; Overnight futures trading suspended due to system failure; Libor arrests signal switch to individuals

Source: John Lothian Newsletter

Tokyo forms world’s third largest exchange.  Technical problems with South Korea’s futures market.  Libor investigation going after invdividuals. First Read How To Innovate In An Uncertain World Forbes By now, we all know what it takes to become successful: as Malcolm Gladwell revealed in Outliers: The Story of Success, with a steady diet of 10,000 [...]

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July 15, 2013: A Trillion Dollar Source Of New Funding? The SEC’s New ‘Reg D’; U.S. Regulators Approve Stricter Trading Rules Overseas; Downside of a British E.U. Exit

Source: John Lothian Newsletter

SEC ruling should help funding for early-stage ventures.  Regulators get compromise on cross-border regulations.  If Britain leaves the EU London may feel the pinch. First Read   View Special Report » It’s been quite a summer for Turkey – once a darling emerging economy for investors, the country has been turned on its ear over, [...]

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July 12, 2013: Lawmakers Move to Rebuild Wall Between Commercial and Investment Banking; High-frequency traders race to find new markets; Fed governor Elizabeth Duke to step down

Source: John Lothian Newsletter

A bill written by a group that includes Sen. Elizabeth Warren (D., Mass.) and John McCain (R., Ariz.), would bring back the provisions in the 1933 Glass-Steagall Act that separated commercial and investment banking activities. Recent decisions by high frequency trading firms to enter emerging markets continues a trend that began after the 2008 financial [...]

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July 11, 2013: Richard Sandor awarded French Legion of Honor, EU’s Barnier is confident of swaps deal with U.S.; S.E.C. Lifts Ban on Hedge Fund Advertising

Source: John Lothian Newsletter

US and EU regulators have struck a cross-border swaps regulation deal, while Richard Sandor is honored for his work by the French and Shanghai is allowing foreign commodities exchanges to set up delivery warehouses. First Read Congratulations to Chevalier dans l´ordre de la Légion d´Honneur  Dr. Richard Sandor By John Lothian & JIm Kharouf Congratulations [...]

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July 10, 2013: Regulators Seek Stiffer Bank Rules on Capital; CME Foresees No Changes in NYSE-Libor Deal; Stock ‘fear gauge’ flawed, Citi equity trading chief says

Source: John Lothian Newsletter

Details are emerging, as are analyses, of the NYSE Euronext takeover of LIBOR management. The CFTC may or may not have cross-border rules in place by Friday. The FDIC adds its capital rules to those approved last week at the Fed. And James Giddens, MF Global trustee, offers his view on how to avoid the [...]

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July 9, 2013: NYSE Euronext to Take Over Libor; Talks on US derivatives rules run to the wire; UK vows jail for reckless bankers in bid to lift standards

Source: John Lothian Newsletter

NYSE Euronext to administer LIBOR. Deadline over derivatives rule looming. UK will expect better from its bankers. First Read A Look at Forensic Accounting and Financial Fraud MarketsWiki.tv In the aftermath of the Peregrine Financial Group fraud, many wondered how it could have happened and how forensic accounting works after a fraud occurs. On June [...]

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July 8, 2013: Thomson Reuters to Suspend Early Peeks at Key Index; CFTC To Hold Open Meeting To Consider Cross-Border Final Guidance And Cross-Border Phase-In Exemptive Order; S&P to Argue Puffery Defense in First Courtroom Test

Source: John Lothian Newsletter

Thomson-Reuters to stop delivering economic survey two seconds early to those who pay for the privilege.  CFTC announce public meeting regarding cross-border-swaps on Friday, July 12.  S&P claims reasonable investors would not believe their claims about credit ratings.   First Read   Invest in our Industry’s FutureSign up your Interns and Summer Workers Today for [...]

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July 5, 2013: NYSE Euronext launches EnterNext in Brussels; Tradeweb applies for US swap trading; Knight Capital’s Joyce resigns days after $1.8bn takeover

Source: John Lothian Newsletter

NYSE Euronext’s new small-and-medium trading venue EnterNext turns on the lights in Brussels. Tradeweb applies for permission to operate an electronic swap trading facility. With Knight Capital’s takeover complete, Thomas Joyce heads for the exit. First Read The Fun is Over Pat Kenny – CQG I’m fairly certain that the reason John asked me to [...]

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July 4, 2013: Independence Day

Source: John Lothian Newsletter

John Lothian News is closed today, but here’s some food for thought for liberty-minded people. First Read The Declaration of Independence Jonathan Matte In the 1780′s, a bunch of people sat down and fought, argued and persuaded a new nation into being. Despite bitter divisions and strong opinions, those people were nevertheless able to forge [...]

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July 3, 2013: NASDAQ OMX and Borsa Istanbul Sign Strategic Partnership; Tension rises on growing shift of power to Esma; China Bond Futures Get Green Light

Source: John Lothian Newsletter

Nasdaq OMX and Borsa Istanbul sign a partnership. The EU wants to toughen up its financial regulator, but the UK isn’t having any. In China, the State Council approves the reintroduction of government bond futures trading. First Read Independence Pat Kenny – CQG [Without trade restrictions] the obvious and simple system of natural liberty establishes [...]

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July 2, 2013: 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

Source: John Lothian 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. First Read The Pressure’s On Pat Kenny – [...]

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July 1, 2013: CME Pulls Plan to Update Wash Trade Rule Amid CFTC Criticism; Banks charged with blocking CDS market; South Korea launches third stock market

Source: John Lothian Newsletter

CME Group updates its wash trade regulation, prompting a great deal of noise from the CFTC and a subsequent retraction of the change by the exchange. The EU charges large investment banks with colluding to block smaller players from setting up operations to trade credit-default swaps. South Korea’s third stock exchange opens its doors today. [...]

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