Source: John Lothian Newsletter
The head of the National Futures Association orders an overhaul of staffing and processes in the wake of the agency’s failure to detect Peregrine Financial Group’s fraud over many years. Exchanges in Karachi and Bombay are well along in talks to cross-list futures products; Karachi is also talking with NYSE Euronext about listing index products [...]
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Source: John Lothian Newsletter
Switzerland’s financial regulators shift closer to a US perspective, and plan to exert more control over private derivatives trading. A multi-market data link receives regulatory approval in Asia, setting the Asean connection on a path to go live in September. In the latest chapter of the thriller, “Who Sneakily Sent Money to Iran?” prosecutors believe [...]
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Source: John Lothian Newsletter
Regulators in Asia don’t appreciate the US’s effort to extend its financial rules beyond the country’s borders, continuing to tangle the international regulatory ball of yarn. Hedge funds gear up to begin public marketing given new rules from the SEC that allow the practice. Mario Monti of Italy elbows his compatriot heads of Eurozone state [...]
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Source: John Lothian Newsletter
Eurex Exchange begins a membership drive in Singapore, seeking new banks and brokers there to give a boost to its clearing house. In the “Did you not hear me, or are you not listening?” department, the head of NYSE Euronext tells U.S. lawmakers that investors want to see an improvement in the country’s debt structure. [...]
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Source: John Lothian Newsletter
Tokyo Stock Exchange’s big merger completion symphony is interrupted by vuvuzela horns from regulators and worried shareholders. CME Group’s post-FX plans for its new London exchange may include interest-rate products. The SEC considers the value of trying to restrict what companies may say while in pre-IPO mode, possibly noting that the recent Facebook offering wasn’t [...]
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Source: John Lothian Newsletter
The day after the SEC declared it would abandon its effort to reform money market funds, other regulators in and out of the US say they will step up and consider new requirements. NYSE Amex Options exchange announces that they’ve received SEC approval to eliminate position limits on SPY options. With the TSE-OSE merger good [...]
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Source: John Lothian Newsletter
Nasdaq and other exchanges cancelled trades on Wednesday after bad orders caused prices to rise too far, too fast; perhaps adding a simple “CTRL+Z” to exchange trading platforms would be in order at this point. Switzerland’s SIX Group has extra cash in its pocket and is looking at some kind of strategic acquisition. The Tokyo-Osaka [...]
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Source: John Lothian Newsletter
Man Group Plc’s (EMG) credit rating was cut by Moody’s Investors Service. CME Group has new plans to begin clearing silver contracts, adding that alongside its gold-clearing operation. The SEC rings the bell and hands out its first Dodd-Frank whistleblower payout. GFI Group, looking at new regulations requiring many transactions to take place on an [...]
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Source: John Lothian Newsletter
CME Group’s European exchange is said to be part of a plan to allow traders access to its products from different locations with different regulatory controls. An accounting oversight board, having reviewed regulatory efforts to track brokerage capital and processes, says that those regulatory efforts fail to provide comprehensive coverage most of the time. In [...]
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Source: John Lothian Newsletter
CME Group files for permission to create a new exchange in Europe. Deutsche Bank becomes the latest bank investigated over US-illegal, Iran-related transactions. Chi-X Canada plans to introduce a new alternative trading system, bringing the total in that country to five. First Read Social benefits of high frequency tradingJohn Lowrey – FT.comThe evolution of financial [...]
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Source: John Lothian Newsletter
CME Group, its customers and other industry participants talk over the possibility of creating an insurance fund to protect traders. The Miami International Securities Exchange makes progress towards opening its doors for business. In Australia, lack of business takes its toll on ASX, and its leader says the exchange is open to buying, merging or [...]
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Source: John Lothian Newsletter
Civil suits are planned and filed, but as MF Global investigators near the end of their work, it looks increasingly likely that no criminal charges against executives will be filed. Subpoenas for information are freshly filed with seven new banks in the ongoing and expanding LIBOR scandal investigation. Australia’s ASX releases fresh financial data for [...]
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Source: John Lothian Newsletter
BATS Exchange starts up a retail discount plan in order to stay competitive with NYSE Euronext. Dubai’s DGCX sees new product offerings and incentives to trade pay off in a big way, as volumes over last year nearly triple. Standard Chartered bank agrees to settle in a hurry with New York regulators for hiding transactions [...]
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Source: John Lothian Newsletter
BSE in India plans an IPO in the coming months, as newer competitors open their doors. In England, the FSA concludes a four-month look at high frequency trading and considers new rules to define that sector. A European reform agency has taken a look at the state of LIBOR in recent weeks, and believes that [...]
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Source: John Lothian Newsletter
Australia reveals new, big plans to rein in the risk of algo trading systems, including requirements for periodic testing (in addition to the every-minute-of-every-day testing that happens when they trade) and controls against abnormal behavior. A new study by the New York Federal Reserve discovers that short-selling bans don’t stabilize stock prices, nor do they [...]
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Source: John Lothian Newsletter
South Korea is planning a transaction tax for futures and options activity, and not surprisingly some say that the move could harm exchange volume in that country. Formerly-secret plans regarding the banking industry come to light, showing that the U.S. government wants strategies in place for how banks might manage their own demise, and that [...]
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Source: John Lothian Newsletter
CME Group considers building an aluminum contract to compete with a decades-old industry leading product at the LME. US investigators into the LIBOR mess are said to be offering UBS traders immunity and protection deals in exchange for assistance in bringing down bigger game within the organization. The SEC plans an industry forum to search [...]
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Source: John Lothian Newsletter
In the “Massive Tech Error Causes Great Pain” department, the three most recent trading faults during the past week provoke a wide range of responses and suggestions. The SEC, along those lines, is considering tightening up the rules for automated trading in the wake of Knight Capital’s nearly-successful attempt to destroy itself. And as the [...]
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Source: John Lothian Newsletter
A Chinese brokerage company has decided to begin using an automated trading platform supplied by US companies, demonstrating the increasing interest in fast, automated trading systems in China. Speaking of electronic trading, exchanges in Tokyo and Spain were both offline yesterday for several hours as their systems experienced malfunctions. Warsaw Exchange takes stock and weighs [...]
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Source: John Lothian Newsletter
NYSE Euronext plans to open a new pan-European exchange focused on entrepreneurs. Risk experts express concern that clearing houses must have their own assets at risk to help avoid a moral hazard as a counterparty. The CFTC prepares to discontinue its investigation into manipulation of the silver market. In First Read, the financial industry mourns [...]
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Source: John Lothian Newsletter
Trading volume in crude oil points for the moment to a new leader, as trading in London pushes past New York’s contract volume. Exchanges, struggling with sagging volume amid economic, regulatory and execution woes, look to technology deals with smaller markets as a way to boost revenue. In the ongoing saga of, “A Whale and [...]
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