October 11, 2013: CME Group, futures regulator to part with struggling AlphaMetrix; CFTC’s O’Malia: Billions in Contracts Traded as Swap Platforms Ramp Up; Nasdaq CEO Considers Testing Ground for Trading Software

Source: John Lothian Newsletter

Financial integrity firm AlphaMetrix reveals that its own internal controls haven’t worked properly, and the NFA and others are backing away from compliance relationships. SEF week number 1 has come and gone, and the CFTC reports hundreds of billions of dollars worth of swaps were transacted. Nasdaq’s CEO suggests creating a “production site” for a [...]

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October 10, 2013: JPMorgan launches commodity business sale; LME set to push ahead with delivery shake-up; RBS sends forex trader’s records to regulator

Source: John Lothian Newsletter

JPMorgan puts its physical commodity business up for sale and puts on a starting price tag at over $3 billion. Maybe they should just hand it over to the CFTC as payment for past sins. The London Metal Exchange says yes, they will indeed forge ahead on their delivery plans, though they may change those [...]

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October 9, 2013: Swiss say forex market manipulated; Obama to Pick Yellen as Leader of Fed; Wall Street’s hot trade: compliance officers

Source: John Lothian Newsletter

A couple of days after beginning their investigation into forex market manipulation, regulators in Switzerland say yep, it was really happening, details eventually to follow. Janet Yellen is said to get the nod for the big chair at the Fed, since Larry can’t come out and play. I’ve got one word for you: “Compliance”. First [...]

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October 8, 2013: BATS Chi-X Europe Launches Pan-European Listings Business; CME takes on LME with aluminium contract; Spain Launches Bond Market for Small Businesses

Source: John Lothian Newsletter

BATS Chi-X Europe announces its intention to list equities in Europe, and BlackRock’s ETF platform will be the first lister. CME Group follows through with last year’s aluminum contract idea. Spain’s stock market plans to open a corporate bond market for SMEs. First Read Troop 117 Wins Trebuchet and Milk Jug Boat Competitions John Lothian [...]

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October 7, 2013: Eurex forced to delay forex derivatives launch; LME heeds calls for more transparency; BME on track to launch equities clearing house in 2015

Source: John Lothian Newsletter

Without a green light for its settlement system’s readiness, Eurex has to delay the start of their new forex trading system. The London Metal Exchange hears calls for greater transparency and decides to begin publishing position information for major players. Spanish stock exchange BME is on track to start its derivatives clearinghouse in 2015. First [...]

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October 4, 2013: CFTC chairman Gensler to step down at end of 2013; Swiss Watchdog Probes Banks Over Possible Forex Manipulation; Hedge funds step into the shadows

Source: John Lothian Newsletter

The head of the CFTC, confirming the expected, is said to be departing from his job at the end of this year. No word yet on whether dancing lessons are on tap for 2014. Benchmark manipulation investigations proceed apace, as Switzerland’s regulators look into possible foreign exchange rate fixing. Hedge funds are beginning to expand [...]

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October 3, 2013: SEC throws spanner in the works of new derivatives regime; Progress on ICE-NYSE merger; EU Swaps Platforms in Limbo as CFTC Closed on Deadline Day

Source: John Lothian Newsletter

As new derivatives regulation begins to operate (minus the government agency that created it), the SEC points out that the new SEFs should not be used to trade certain products over which it has jurisdiction. ICE and NYSE Euronext get a thumbs-up… well, more of a “can’t think of a reason to give a thumbs-down” [...]

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October 2, 2013: US derivatives begin electronic shift; U.S. securities watchdog proposes new rules for dark pools; Gold and oil benchmarks face tighter regulation

Source: John Lothian Newsletter

Brand new SEF Javelin Capital Markets begins processing its first electronic swaps matching as dawn breaks on the brave new world of swaps regulation. FINRA wants dark pools to begin reporting transaction data. Benchmark rates in gold and oil may be in line for new regulations to guard against manipulation and abuse. First Read KPMG’s [...]

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October 1, 2013: EU urges US to delay swaps reform; Eurex Plans Penalties on Some High-Speed Practices; US asset managers face tighter scrutiny

Source: John Lothian Newsletter

The EU’s top regulator is trying desperately to get the CFTC’s attention with regard to swaps reform; possibly something about “the bridge is out, the bridge is out”. Whatever. Deutsche Boerse is planning to penalize certain kinds of high-speed trading practices on its Eurex platform. The US Treasury compiles a report on systematic vulnerability from [...]

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