John
Lothian's Daily Futures & Securities Industry Newsletter
March 19, 2002
Lead
Stories
Feinstein
rejects changes to energy derivatives bill (Reuters Securities)
...The proposed legislation would give the U.S. Commodity Futures Trading
Commission
regulatory oversight of all energy and metals derivatives to better track......
market is traded
privately among companies and other institutional investors, not on regulated
exchanges such as
the New York Mercantile Exchange....
http://biz.yahoo.com/rf/020318/n18685955_1.html
US
high court considers SEC appeal in broker case (Reuters Securities)
The U.S. Supreme Court heard arguments on Monday on the scope of the Securities
and Exchange Commission's power to sue a
stockbroker whom the SEC contends enriched himself at his clients' expense.
http://biz.yahoo.com/rf/020318/n18153126_1.html
After
Enron: "Nothing Can Be Off the Table" (BusinessWeek Online)
President George Bush is counting on Pitt and the SEC to clean up the mess and
restore confidence in Corporate America's financial
dealings. Pitt certainly knows a lot about the outfits he keeps a watch on.
Early in his career, he spent a decade at the SEC and then
practiced law at Fried Frank Harris Shriver & Jacobson, where he
represented a slew of financial and corporate powerhouses, including
all of the Big Five accounting firms. But some Democrats and investor groups
question whether Pitt's background makes him the right
choice to lead an ethics crusade.
Euronext
fuses equities, eyes derivatives big bang
http://biz.yahoo.com/rf/020319/l14125043_1.html
EU
securities regulation must not drive business out of Europe, says the FSA [
19/3/2002 ]
Speaking to
the British Chamber of Commerce in Brussels today, FSA Chairman Howard Davies
said: “The conclusions of the Barcelona Summit have g...
http://www.fsa.gov.uk/pubs/press/2002/029.html
Crude
Breaks $25 a Barrel (AP)
Crude oil futures climbed above $25 a barrel at the New York Mercantile
Exchange for the first
time since Sept. 11, as traders priced in expectations of tighter supplies
later this year.
http://story.news.yahoo.com/news?tmpl=story&u=/ap/20020318/ap_on_bi_ge/commodities_73
***** This
headline writer needs some help.
Appeals
Court Rejects Martin Armstrong (Associated Press)
..." Jim Newsome, chairman of the Commodity Futures Trading Commission in
Washington, said
he hoped that the appeals ruling "will persuade Mr.......Armstrong is
awaiting trial on fraud charges
brought by the Securities and Exchange Commission, the Commodity Futures
Trading
Commission and the U.S. attorney's office....
http://biz.yahoo.com/ap/020318/armstrong_appeal_3.html
B2B
Transactions Lead E-Commerce
http://story.news.yahoo.com/news?tmpl=story&u=/ap/20020318/ap_on_hi_te/e_commerce_2
BALTIC
EXCHANGE POISED TO LAUNCH ON-LINE DERIVATIVES TRADING - 18/03/2002
http://www.commodities-now.com/news/pr_exchanges/pr_20020318a.shtml
Leading
Electronic Bond Trading Platform Acquires Industry Standard in Fixed Income
Analytics (PR Newswire)
... Securities
Calculations Methods'' books published by the Securities Industry Association
(SIA), founded TIPS in 1986...
http://biz.yahoo.com/prnews/020319/nytu103_1.html
German
broker Consors posts deep 2001 loss (Reuters Securities)
Stricken German online brokerage Consors posted a steep 2001 full-year loss on
Monday after a dismal year for the sector with retail
clients shunning share trading amid weak capital markets.
http://biz.yahoo.com/rf/020318/l18451180_1.html
Goldman profit falls on banking decline (Reuters Securities)
Goldman Sachs Group Inc., one of the top U.S. investment banks, on Tuesday said
its quarterly profit fell 32 percent, as flagging stock
markets kept merger and underwriting activity on the wane and gains from
trading securities dropped.
http://biz.yahoo.com/rf/020319/n19139342_10.html
Exchange
News
ONECHICAGO
APPOINTS CHRISTOPHER E. KROHN AS MANAGING DIRECTOR OF STRATEGY AND MARKETING
CHICAGO,
March 19, 2002 — OneChicago LLC today announced the appointment of Christopher E. Krohn as Managing Director
of Strategy and Marketing. Krohn joins OneChicago from Chicago Mercantile
Exchange Inc. (CME), the largest U.S. futures exchange, where he served as
Director of Marketing.
“We are
very pleased to bring Chris on board from CME,” said William J. Rainer,
Chairman and CEO of OneChicago.
“His experience marketing equity futures products to a broad range of
customer segments will be a valuable asset as we develop and promote our market
offerings.”
“The
opportunity for security futures in U.S. capital markets is impressive,” said
Krohn. “With a comprehensive
product line, innovative market model and
global
distribution network, OneChicago is well-positioned to capitalize on that
opportunity.”
Prior
to his tenure with CME, Krohn was a consultant with Bain & Company, Inc.,
helping financial services firms and other clients realize bottom-line results
through work in Corporate Strategy, M&A, and Sales and Marketing. He holds a bachelor of arts degree from
Northwestern University and an MBA from the University of Chicago, where he
serves as a guest lecturer on various marketing topics.
OneChicago
LLC is the joint
venture created to trade single stock futures and narrow-based indices by
Chicago Mercantile Exchange Inc. (CME), Chicago Board Options Exchange®
(CBOE®) and Chicago Board of Trade (CBOT®).
****** Good
guys should get special treatment. Congratulations Chris!
CBOT
Fed Watch - 03.18.2002
Based upon the March 18th market close in the April 2002 expiration, the CBOT
30-Day Federal Funds futures contract is currently pricing in an 12 percent
probability that the FOMC will raise the federal funds target rate by at least
25 basis points.
http://www.cbot.com/cbot/www/cont_detail/0,1493,10+24+null+6222,00.html
CME
Appoints Mark Blundell Managing Director of European Office
(03/18/02)
Chicago Mercantile
Exchange Inc. (CME) has named Mark Blundell as Managing Director, CME Europe, based
in London. The appointment is effective immediately.
http://www.cme.com/news/shownews.cfm?NewsItem=00018211-071F-1C96-9A3280EDBEFB071D
TSE
considering publicising monthly short-selling (Reuters Securities)
The Tokyo Stock Exchange, Japan's largest bourse, said on Tuesday it is
considering publicising the amount of short-selling of equities
on a monthly basis, in an effort to boost investor confidence and improve
transparency.
http://biz.yahoo.com/rf/020318/t71651_1.html
Regulatory
News
California
Commodity Trader Charged with Misappropriating more than $500,000 in Customer
Funds and Violating Prior Commission Order
http://www.cftc.gov/opa/enf02/opa4619-02.htm
The
SEC News Digest
http://www.sec.gov/news/digest/03-18.txt
Edward
Thomas Jung and E. Thomas Jung Partners, Ltd., also d/b/a ETJ Partners, Ltd.
http://www.sec.gov/litigation/litreleases/lr17417.htm
Gary
L. Moody, Steven R. Moody, Virtual Private Marketplace, Ltd., and Billpay
Systems LLC
http://www.sec.gov/litigation/litreleases/lr17416.htm
TSE/CDNX
CEO Calls on Government Action for Regulatory Issue -- March 18, 2002
http://tse.com/news/news_rel/news_659.html
SEC
Issues Rules Targeted to Andersen Client (Dow Jones)
...In a statement, SEC Chairman Harvey Pitt said the SEC's actions should
address questions raised by Andersen's indictment,...
SEC
sues Boston man for touting false Verizon deal (Reuters Securities)
...According to the SEC complaint, Mallory told prospective shareholders they
could buy Anamar stock for 5 cents and...
http://biz.yahoo.com/rf/020318/n18144284_1.html
The Financial Services Authority – who we are, what we do and how
we do it [ 18/3/2002 ]
http://www.fsa.gov.uk/pubs/public/
Erivativesreview.com
erivativesreview.com
takes an in depth strategic look at key issues affecting the markets, written
by professionals for professionals.
March
2002
EDITORIAL
- The Price Is Right? (Or Very, Very Wrong Indeed!)
THE
KISS TRADERS' GUIDE - Part 13: When And Where Not To Trade
FOCUS
Taking
The Corporate Risk Out Of Power Trading
Online
Forex
BOOK
REVIEW
The
Exchange Traded Funds Manual
Bestsellers
EXCHANGE
AND B2B NEWS - New exchanges, new contracts, new hires
BITS
AND PIECES - Profits up, new hires and takeovers
THE
BACK PAGE - Banana Skins 2002
Reports
Bond
Talk Today's Events
http://www.bondtalk.com/global.cfm?S=todaysevents
Miscellaneous
News
Mercator
Chosen by Britannic Asset Management for Straight Through Processing (Business
Wire)
Mercator(R) Software, Inc., has been selected by the UK fund management company
Britannic Asset Management to implement a
phased straight through processing project to automate its securities and fixed
income trading and settlement processes.
http://biz.yahoo.com/bw/020319/192215_1.html
Morgan
Stanley Launches New Stock Rating System; Discloses Ratings Distribution
http://www.morganstanley.com/about/pressroom/news207.html?page=press
MERRILL
LYNCH NAMED CORPORATE BROKER OF THE YEAR
http://www.ml.com/about/press_release/03182002-1_ml_named_pr.htm
Archer
Daniels shares fall after Calif. MTBE delay (Reuters Securities)
Shares of agribusiness giant Archer Daniels Midland Co. fell more than 7
percent on Monday after the state of California delayed
eliminating a fuel additive that competes with ADM's ethanol.
http://biz.yahoo.com/rf/020318/n18357444_1.html
Archipelago,
Redibook Complete Deal (AP)
...Alternative trading platforms, known as ECNs, have gained market share in
recent years, helped by their efficiency and cost....
http://story.news.yahoo.com/news?tmpl=story&u=/ap/20020319/ap_on_bi_ge/archipelago_redibook_1
Two
Industry Visionaries to Deliver Keynote Addresses at Meridien Research's Summit
Conference 'Navigating Financial Services IT'
on May 20-21, 2002 (Business Wire)
... summit conference presents a unique opportunity to gain valuable insights
into the strategic technologies and directions throughout
the financial services business....... three tracks focusing on: trends in
customer relationship management; risk management and trading
systems; and innovations in electronic financial services...
http://biz.yahoo.com/bw/020319/192278_1.html
Hedging
Your Stock Bets (Business Week)
...Personal Investing: INVESTING Q&A Hedging is a smart strategy to manage
the risk in an investment portfolio,......That's the
advice of Patrick Adams, CEO of Choice Investment Management, whose Long-Short
Fund gives mutual-fund investors the
advantages of a hedge fund....... is down somewhat but is still ranked sixth in
the Lipper Multi-Cap Growth category of funds.......We
believe that there has been a lot of funding of biotech companies that will not
make it....
http://biz.yahoo.com/bizwk/020319/uqzubpx7rfqjmz2k5ybybq_9.html
CalPERS
beefs up financial market reform plan (Reuters Securities)
... collapse of Enron Corp. The investment committee of the California Public
Employees' Retirement System, or CalPERS, whose
moves are closely-watched in financial markets,......" said CalPERS
spokeswoman Pat Macht....
http://biz.yahoo.com/rf/020318/n18190843_2.html
Is Online Self-Service Really Service? (NewsFactor)
... online self-service applications in recent years have been focused on the
business-to-business (B2B) sector, but the number of
self-service apps for consumers is steadily rising...
http://story.news.yahoo.com/news?tmpl=story&u=/nf/20020318/bs_nf/16807
03/18
07:04 Man Group PLC EMG Holding in Company
http://quote.bloomberg.com/fgcgi.cgi?T=quote/uk/uk_quote_long_news.ht&s=APJXXtQ2UTWFuIEdy
Other
Voices
More
endorsements for Paul Richards in his campaign for the CBOT Nominating
Committee:
Paul
Richards will be very helpful on Nominating getting CBT directors
nominated
who can work well with CBOE.
Bill
Power
----------------
Paul-
I
would like to add my own endorsement to your candidacy for CBOT
Nominating
Committee as well as C.C. Odom's run for the Board. My
personal
dealings with both of you gentlemen has shown you to be not
only
highly intelligent, but also to have the best interests of both the
CBOT
and the CBOE as your driving motivations. Good luck to both of you
in
this endeavor.
Respectfully,
Mike
Mondrus
-----------------
Fellow
Seat Owners:
I
know that I am a late comer to this bandwagon, but I must add my voice
to
those of Nick Neubauer, Larry Blum, Mike Mondrus and all the others
that
have championed the candidacies of C.C. Odom for the CBOT Board of
Directors
and Paul Richards for the CBOT Nominating Committee.
Unlike
the others e coming forward for these two candidates, I have
never
met either of them. My only experience with C.C or Paul has been
what
I have learned about them through our dealings on the phone and
what
I have learned through their contributions to the putsNcalls and
Tradetalk
listservs. On both counts the experience has been Grade A.
As
many of you know, I am a partner on a CBOT seat, so I feel I have a
personal
obligation to express my preference for various candidates. I
am
convinced of the wisdom, sincerity, dedication and depth of Exchange
knowledge
that each of these gentlemen brings to their respective
offices.
I strongly urge each and every CBOT voter of record for the up
coming
election, to cast their ballots for C.C. Odom for CBOT Board of
Directors
and Paul Richards for the Nominating Committee.
I
have often stated that both of our Exchanges are joined at the hip.
The
people we are electing to these important jobs have all of our
futures
in their hands. I for one want to support people dedicated to
the
growing of our business. LONG LIVE THE PETITION PROCESS!
Don
Phillips
----------------
Fellow CBOT Members
Please take the time to review the attached. I have known Paul
personally for some time and have served with
him on various exchange
committees. I have not always agreed with
Paul on everything, however, I have always
been impressed with his preparation and care
for the welfare of the exchange
and its members-particularly those who make
their livings on the floor and
in the pits. Paul is an open outcry guy and will work hard for you. Also,
in the few instances when Paul and I have not
agreed on an issue, I have
always felt he gives other opinions a fair
hearing and tries to do the right
thing.
The word that describes how I feel about him
is "respect." Do the
right
thing yourself and vote for Paul. He will watch out for us.
peace, Thomas F. Cashman
p.s.
Check out Trade Talk for some examples of Paul's tireless work in
the realm of ideas and you'll see what I have
based my opinion on.
John's
Comments
Here are
the O-Fund baskets I promised yesterday. These should have been in
Friday's newsletter, but they were posted to the Omega List on Thursday
night. Trader O is the exception. I received Trader O's Tuesday
before I left, so you are going to have to trust me on this one.
The O-Funds
are an exercise to compare the results generated by the X-Funds of the CBOT to
other potential managers selections. The key difference is that the
O-Funds have included contracts from all the U.S. exchanges that the X-Funds
say they can include in their baskets, but don't.
Here are
the selections which should have been in Friday's letter:
Barry
Viljoen
Short June
Emini S&P
Short May
Copper
Long June
Gold
Long June
Ten-Year Notes
Bill
Wynne
Long May
Corn
Long June
Bonds
Long June
S&P
Long June
Nasdaq
Mark
Brown
Long June
S&P
Long June
Nasdaq
Long June
Dow Jones
Short June
US Bonds
Bob
Heisler
Long May
Crude
Long May
Cotton
Long May
Sugar
Short May
Silver
TraderO
S June Dow
Futures
L June
Crude Oil
S Nov
Soybeans
L June Ten
Years
John
Lothian
(Randomly selected positions from a business card box)
Short May Copper
Long May
Crude Oil
Long June
Five Year Notes
Long June
Live Cattle
These
O-Funds start as of the closing prices as of March 14 and will settle versus
the March 28 closing prices.
Tomorrow I
will update the O-Funds values as of the end of the last round and the current
new baskets.
Regards,
John J.
Lothian
The Price
Futures Group, Inc.
Electronic
Trading Division
Chicago
Board of Trade Building
141 West
Jackson Boulevard, Suite 1340A
Chicago, IL
60604
Phone:
1-800-713-0215 or 312-648-2426
Fax:
312-902-6437
Web site: www.pricegroupetd.com
E-Mail: JLothian@pricegroup.com
Disclaimer:
This letter is strictly the opinion of its writer, and not necessarily those of
The Price Group and its management, and is
intended solely for informative purposes and is not to be construed, under any
circumstances, by implication or otherwise, as an
offer to sell or a solicitation to buy or trade in any commodities or
securities herein named. Information is obtained from sources
believed to be reliable, but is in no way guaranteed. No guarantee
of any kind is implied or possible where projections of future
conditions are attempted.
Futures and
options trading involves risk. Past results are no indication of future
performance.
Hypothetical
Results Disclosure:
Hypothetical
performance results have many inherent limitations, some of which are described
below. No representations are being made that nay account will or is
likely to achieve profits or losses similar to those shown. In fact,
there are frequently sharp differences between hypothetical performance results
and the actual results
subsequently achieved by any particular trading program. One of the
limitations of hypothetical performance results is that they are generally
prepared with the benefit
of hindsight. In addition, hypothetical trading does not involve
financial risk, and no hypothetical trading record can completely account for
the impact of financial risk in
actual trading. For example, the ability to withstand losses or to adhere
a particular trading program in spite of trading losses are material points
which can adversely
affect actual trading results. There are numerous other factors related
to the markets in general or to the implementation of any specific trading
program which cannot
be fully accounted for in the preparation of hypothetical performance results
and all of which can adversely affect actual trading results.