February 28, 2013: CME weighing credit default swap futures; Block trades face higher minimums; China eases path for short sellers

Source: John Lothian Newsletter

CME Group is considering the creation of a credit-default swap futures product, which would set it toe to toe against rival IntercontinentalExchange. US regulators are considering making it tougher to execute block futures trades, as they remain concerned that market participants may look to avoid new derivatives rules. China unveils a new trading platform that [...]

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February 27, 2013: Hong Kong Bourse Quarterly Profit Worst Since ’09; LCH.Clearnet Taps Ex-J.P.Morgan Executive Amid U.S. Push; Regulators Hope for Libor Pacts

Source: John Lothian Newsletter

HKEx posts a tough quarter amid declining listings. LCH.Clearnet has a new CEO as it prepares to open a new US derivatives clearinghouse. Regulators pursuing justice, or at the very least large fines, against offenders in the LIBOR rate-fixing scandal are hoping to reel in three more major targets by summertime. First Read Hong Kong [...]

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February 26, 2013: SEC Shines Light on Derivatives-Backed Notes; China to tighten shadow banking rules; Search begins for new Libor administrator

Source: John Lothian Newsletter

Regulators put pressure on derivative-selling banks to disclose their internal valuation for the products. China steps up to provide greater regulatory control to its fast-growing shadow banking system. A new group in the UK sets out on a quest to find a new administrator for the heavily-wounded LIBOR benchmark. First Read Deutsche Börse AG not [...]

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February 25, 2013: CME Said to Approach Deutsche Boerse for Merger Talks; Spanish exchange cedes market share as shorting ban ends; BlackRock Gains SEC Approval for Copper-Backed Fund

Source: John Lothian Newsletter

CME Group is said to have approached Deutsche Boerse to begin talks about creating a merger. Spain’s main stock exchange has seen a marked drop in volume since a short-selling ban was lifted at the start of this year. Investment company BlackRock gets a green light to start an exchange-traded fund for copper, which some [...]

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February 22, 2013: CME Sued by CFTC for Disclosing Non-Public Information; Singapore Exchange pushes iron ore futures launch to April; Cargill joins Wall Street banks as swap dealer

Source: John Lothian Newsletter

CME Group and two former employees are on the receiving end of a CFTC lawsuit alleging that the company inappropriately disclosed private information regarding customer trades. Singapore Exchange delays the start of trading on their upcoming iron ore futures contract until April, to give customers more time to prepare. Commodity broker Cargill becomes the first [...]

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February 21, 2013: Deutsche Boerse CEO Says Asian Expansion as Top Priority; Scoach joint venture to be terminated; LSE’s Orb shines as retail investors flock to bonds

Source: John Lothian Newsletter

The CEO of Deutsche Boerse starts an opportunity committee focused on ways to increase its presence in Asia. Swiss exchange operator SIX and Deutsche Boerse break off their joint operation of Frankfurt-based Scoach. The London Stock Exchange’s bond trading platform ORB does increasing business in an environment of hesitant business lending. In today’s First Read, [...]

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February 20, 2013: NYSE takeover deal passes U.S. antitrust overseers; CME Derivatives That Skirt Dodd-Frank Attracting Review by CFTC; Exchanges in 11th hour lobbying effort

Source: John Lothian Newsletter

The ICE-NYSE Euronext takeover plan passes an antitrust hurdle as the US Department of Justice takes no action to stop the deal. The CFTC is taking a closer look at CME Group’s new interest-rate swap futures contracts, to see if they allow traders to bypass new regulations and oversight. In Europe, exchanges and trade groups [...]

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February 19, 2013: Liquidnet aims to boost Europe trading; Eurex receives permission to offer direct market access in S. Korea; Dollar Sibor May Be Dropped Amid Global Rate-Rigging Probe

Source: John Lothian Newsletter

Liquidnet targets a threefold increase in European business, and plans to bring in the new business from fund managers there. Eurex gets the green light to offer its full range of services to companies and people in South Korea. Singapore’s central bank considers discontinuing the Sibor interbank lending rate, which has been tainted by rate-rigging [...]

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February 15, 2013: Nasdaq Weighs an Earlier Wake Up; Stock-Trading Glitches Are on the Decline; Moscow Bourse Raises $498 Million, Biggest Russia IPO Since ‘07

Source: John Lothian Newsletter

Nasdaq OMX is looking at shifting its “premarket” trading session even earlier in the morning. A study of multiple years of error corrections at exchanges suggest that despite recent headlines, the incidence of trade glitches is on the decline. Moscow Exchange completes its long road to an IPO, prices at the bottom of its range, [...]

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February 14, 2013: Mexican Exchange to HFT: Bring Us Your Business; Gensler: Hedge Funds May Skirt Trade Rules With Banks’ Aid; U.S. Slams EU’s Tax-on-Trades Plan

Source: John Lothian Newsletter

Bolsa Mexicana de Valores stands up and says, “Bring us your high frequency traders”. Gary Gensler fears that hedge funds and banks might work together to avoid stricter risk control rules. The EU proposes a financial transaction tax; US Treasury says it’s a stupid idea. In First Read today, take a close look at the JLN [...]

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February 13, 2013: LSE aims new market at high-growth SMEs; CFTC Delays Swaps Vote As Member Voices Concerns; Regulators review Bats’ plans for London exchange

Source: John Lothian Newsletter

The London Stock Exchange plans to start a new marketplace to allow small companies to list shares and raise capital while retaining control over much of their total shares. The CFTC, facing internal discord, delays a vote on venues for derivatives. Regulators in the UK ask Bats Chi-X Europe to please step forward. In First [...]

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February 12, 2013: Carlyle, Nasdaq OMX Discussed Going-Private Deal; Turkish bourse chief has ambitious plans; NYSE plans to offload wheat futures market

Source: John Lothian Newsletter

Nasdaq talks to Carlyle about a buyout; the talks don’t produce a deal, but they do produce a lot of talk and speculation. The head of the stock exchange in Turkey has plans to catch up to the country’s recent increase in visibility on the world’s stage. NYSE Euronext reveals plans to spin off its [...]

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February 11, 2013: Equiduct Chief Randall Said to Plan Exit From U.K. Trading Venue; NYSE to Close Block-Trading Market; CME to push clearing rate swaps in London

Source: John Lothian Newsletter

The head of alternative venue Equiduct is said to be leaving the company as meetings to decide the fate of the company progress. NYSE and BIDS Holdings is closing its block trading unit due to insufficient interest, as a way to reduce costs. CME Group is now just weeks away from beginning to clear off-exchange [...]

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February 8, 2013: Brazil approves ICE electronic platform; Moscow Exchange hires ex-LSE exec for key sales role; S&P as Sole U.S. Target has Wall Street Asking About Moody’s

Source: John Lothian Newsletter

Brazil’s regulator gives a thumbs up to ICE to start bond-trading platform Cetip. Moscow’s new exchange has hired a former LSE executive as its head of sales. As the US goes after S&P for bad product calls in 2008, many are wondering why other rating agencies who did similar things are being left alone. In [...]

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February 7, 2013: ICE CEO Calls For Change In Stock-Market Practices; Exchange-traded Derivatives On U.S. Treasuries On The Way; Commodities brokers launch gas benchmarks

Source: John Lothian Newsletter

ICE’s Jeff Sprecher thinks there are a lot of dumb things going on in stock trading, and figures that the acquisition of NYSE Euronext might be a way to advocate straightening some of it out. Nasdaq and BNY Mellon set up to debut options trading on US Treasuries. Commodity brokers in Europe launch a set [...]

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February 6, 2013: ICE Profit Rises 2 Pct on Expense Cuts; CME sees signs of OTC business moving to exchanges; TAIFEX and Eurex agree on strategic alliance

Source: John Lothian Newsletter

IntercontinentalExchange pulls a nifty Q4 profit out of a challenging environment in 2012. CME Group finds evidence that OTC trading is being set aside in favor of exchange-traded products. Eurex and TAIFEX announce a product and clearing alliance. First Read IRS approves 60/40 tax treatment for EUREX products effective March 1, 2013 Harlan Ten Pas, [...]

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February 5, 2013: CME to Close Kansas City Board of Trade Pits in June; SGX in talks on taking LCH.Clearnet stake; S&P To Face Charges From States, U.S.

Source: John Lothian Newsletter

With KCBT acquired, CME Group announces a plan to shut the regional grain trading floor in June. Singapore Exchange is aiming to buy a piece of clearing house LCH.Clearnet. Standard & Poor’s faces charges from various US entities, who feel that the company acted wrongly by issuing happy and positive ratings for a number of [...]

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February 4, 2013: U.K. to Give Regulators Powers to Split Up Banks; Intercontinental Credit-Swap Futures Said to Shield Default Risk; Many guises of an equities trader

Source: John Lothian Newsletter

The UK plans to give its regulators the power to split up banks that refuse to ring-fence retail banking from higher-risk investment divisions. ICE is working to introduce futures contracts designed to shield investors from the risk of borrower default. Some banks combine high-touch brokers and low-touch trading desks, and find that the combination is [...]

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February 1, 2013: ISE pushes into ETF market; Currency-fixing probe rattles Singapore; Turquoise hikes data fees

Source: John Lothian Newsletter

International Securities Exchange rebrands itself and shifts direction toward ETFs in a bid to improve slumping volume. Financial hub Singapore is rattled by the new investigation into currency fixing allegations. LSE’s Turquoise platform announces that they, too, will be increasing trading fees as a way to squeeze more revenues from declining trading volume. First Read [...]

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