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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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