John Lothian's Daily Futures & Securities Industry Newsletter

 

April 17, 2002

 

Lead Stories

 

Island ECN to Participate in Nasdaq SuperMontage System

http://story.news.yahoo.com/news?tmpl=story&u=/dowjones/20020416/bs_dowjones/island_ecn_to_participate_in_nasdaq_

supermontage_system

 

Island, largest ECN, to participate in Nasdaq’s SuperMontage

http://www.island.com/corp/press/pressreleases/release20020416.asp

 

SEC may jump aboard Merrill investigation

http://story.news.yahoo.com/news?tmpl=story&u=/usatoday/20020417/bs_usatoday/4034214


Waiting on the Futures

Single-stock futures will offer managers the opportunity to increase their leverage, but the downside is the possibility of more risk.

http://www.financial-planning.com/pubs/fp/20020401034.html

 

Knight continues to suffer lack of business

http://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT3Y7VC350D&live=true&tagid=ZZZZV1CYA0C&subheading=

financial%20services

 

Important U.S. regulatory decision for Canadian securities secondary trading by U.S. investors

http://www.newswire.ca/releases/April2002/17/c5176.html

 

Singapore Lowers Cap Levels For Brokers (Dow Jones)
... the difference in capital requirements between stock and futures brokers who are SGX members will be removed. Additionally,
clearing and non-clearing members will have to maintain...

http://story.news.yahoo.com/news?tmpl=story&u=/dowjones/20020417/bs_dowjones/repeat_correct__singapore_lowers_cap_levels_

for_brokers

 

Singapore STI Tracker Fund Makes Positive Debut Wednesday (Dow Jones)
..." SGX Chief Executive Thomas Kloet said at streetTRACKS' launch earlier Wednesday. "This is just...

http://story.news.yahoo.com/news?tmpl=story&u=/dowjones/20020417/bs_dowjones/singapore_sti_tracker_fund_makes_positive_deb

ut_wednesday

 

Deutsche Boerse's Xetra Best To Start Sep 2, 13 Companies Join (Dow Jones)
FRANKFURT -(Dow Jones)- Frankfurt stock exchange operator Deutsche Boerse AG ( G.DBO) said Wednesday that 13 banks
and brokerages had opted to participate in its Xetra-Best execution service, which will begin operating Sept. 2 .

http://story.news.yahoo.com/news?tmpl=story&u=/dowjones/20020417/bs_dowjones/deutsche_boerse_s_xetra_best_to_start_sep_

2__13_companies_join

 

ISDA Stresses Derivatives Not At Fault In Enron Demise

http://story.news.yahoo.com/news?tmpl=story&u=/dowjones/20020417/bs_dowjones/isda_stresses_derivatives_not_at_

fault_in_enron_demise

 

ISDA Delegates Elect 12 Board Members

http://www.isda.org/press/press041702BOD.htm

 

ISDA Market Survey Reveals Dramatic Increase in Credit Derivatives; ISDA 2002 Mid-year Survey to Include Equity Derivatives

http://www.isda.org/press/press041702market.html

 

ISDA ISSUES ENRON REPORT - Corporate Governance Failures, Not Derivatives, Led to Enron Collapse

http://www.isda.org/press/press041702enron.htm

 

Enron: Market Failure or Market Discipline?

http://www.isda.org/whatsnew/pdf/EnronISDA4-17-02.pdf

 

eSignal Releases the New eSignal, Innovative Technical Analysis Software With Customizable Formula Language (Business Wire)
...The new eSignal offers advanced enhancements to the company's flagship data delivery and trading platform including a high-end
charting application, a suite of technical drawing tools and...... most reliable and fastest real-time market data delivery services covering
U.S. and European exchanges....... interactive line drawing tools provide traders with the ability to spot trends and to forecast future
price movements and market directions....

http://biz.yahoo.com/bw/020417/172088_1.html

 

Applied Derivatives

 

EDITORIAL - Narrow Interests

http://www.erivativesreview.com/content/content.cfm?ID=4EB7C82D-C947-43FA-8F597FCAE94F06DC&SectionID=2D13DA9F-1CE9-4467-ABDD1EF9A814D410&IssueID=4F004F42-9221-4E9D-AFD94797861C3BE6

 

THE KISS TRADERS' GUIDE

Part 14: The Rudiments of Contrarianism

http://www.erivativesreview.com/content/content.cfm?ID=BD8490F6-D004-400A-9B86E9B179648A6C&SectionID=C4F5E6DC-97B2-460C-8EAA53DB62CDFE3F&IssueID=4F004F42-9221-4E9D-AFD94797861C3BE6

 

FOCUS

The Changing Face of ECNs

http://www.erivativesreview.com/content/content.cfm?ID=3297941B-5671-4C38-A11795D2F34F51F5&SectionID=2C2D6A33-7C1C-431F-9640EC534EC4C27A&IssueID=4F004F42-9221-4E9D-AFD94797861C3BE6

Managing Interest Rate Risk

http://www.erivativesreview.com/content/content.cfm?ID=B141E5C1-5A9B-41E9-9959E300FE46A1FD&SectionID=2C2D6A33-7C1C-431F-9640EC534EC4C27A&IssueID=4F004F42-9221-4E9D-AFD94797861C3BE6

 

BOOK REVIEW

The Master Swing Trader

http://www.erivativesreview.com/content/content.cfm?ID=B40FF917-CFCA-4DD3-A3428E3A51D1DCA2&SectionID=0BA7C142-F337-40F0-9E0141C36922E2FD&IssueID=4F004F42-9221-4E9D-AFD94797861C3BE6

Bestsellers

http://www.erivativesreview.com/content/content.cfm?ID=0D9FA883-63D8-4FDE-A0849201C47CDFD3&SectionID=0BA7C142-F337-40F0-9E0141C36922E2FD&IssueID=4F004F42-9221-4E9D-AFD94797861C3BE6


EXCHANGE AND B2B NEWS

http://www.erivativesreview.com/content/archive.cfm?SectionID=E63A12EF-3DFD-4AC9-94EB5E323DA5C373

CME, CBOT, ICE et al

http://www.erivativesreview.com/content/content.cfm?ID=59C59645-6590-4968-8F4282B0EDADED56&SectionID=E63A12EF-3DFD-4AC9-94EB5E323DA5C373&IssueID=4F004F42-9221-4E9D-AFD94797861C3BE6

 

BITS AND PIECES

OTC and other news

http://www.erivativesreview.com/content/content.cfm?ID=BB8F6371-6C14-4CB7-A98335A1B6DF2ADC&SectionID=2BD9C4F5-6A6E-4749-A65F73B8274BA39B&IssueID=4F004F42-9221-4E9D-AFD94797861C3BE6

 

FEEDBACK

Strong Words

http://www.erivativesreview.com/content/content.cfm?ID=B075B2FB-4416-4777-A0604129B4088206&SectionID=96D198A1-4F7F-451E-BA419931B9DD20ED&IssueID=4F004F42-9221-4E9D-AFD94797861C3BE6

 

THE BACK PAGE

Playboy Passé Index?

http://www.erivativesreview.com/content/content.cfm?ID=2F90FB55-E5C1-4D5F-B406261210E2149C&SectionID=4E8B30A2-2129-4DFF-B3EA3DAE505058AA&IssueID=4F004F42-9221-4E9D-AFD94797861C3BE6

 

Exchange News

 

What are Unlisted Trading Privileges (UTP)?

An Unlisted Trading Privilege (UTP) is a right, provided by the Securities Exchange Act of 1934, that permits securities listed on any national securities exchange to be traded by other such exchanges.

http://www.sec.gov/rules/final/34-43217.htm

 

And The Walls Came Tumbling Down - NYSE Seeks Unlisted Trading Privileges for ETFs

http://www.indexfunds.com/articles/20010406_NYSE_new_etf_JW.htm

 

CBOT Dow Jones Strike Price Notice, April 16, 2002 - 04.16.2002

http://www.cbot.com/cbot/www/cont_detail/0,1493,10+24+268+6654,00.html

 

Name Change/Soybean Regular Firm - 04.16.2002

http://www.cbot.com/cbot/www/cont_detail/0,1493,10+24+268+6652,00.html

 

Portugal's BPN Buys 80% Of Brokerage Fincor To Boost Operations (Dow Jones)
..."holds an important position in all financial products traded on Euronext Lisbon ," which will complement BPN's retail network. BPN
said it would unveil a new corporate...

http://story.news.yahoo.com/news?tmpl=story&u=/dowjones/20020417/bs_dowjones/portugal_s_bpn_buys_80__of_brokerage_finc

or_to_boost_operations

 

Change to the PHLX Semiconductor SectorSM SOX

http://www.phlx.com/news/sox0417.pdf


Singapore Exchange Confirms Probe On Dayen's Share Price (Dow Jones)
..." a SGX spokesman told Dow Jones Newswires. Shares of the sewage and water treatment company rose...

http://story.news.yahoo.com/news?tmpl=story&u=/dowjones/20020417/bs_dowjones/singapore_exchange_confirms_pr

obe_on_dayen_s_share_price

 

SFE Corp in market debut

http://globalarchive.ft.com/globalarchive/article.html?id=020417000820&query=futures+trading+exchange

 

Regulatory News

 

CFTC Guidelines for Ensuring and Maximizing the Quality, Objectivity, Utility, and Integrity of Information Disseminated by the Commodity Futures Trading Commission

http://www.cftc.gov/oed/oeddraftguidelines041502.htm

 

Regulatory Announcement Directed by U.K. Panel on Takeovers and Mergers (Business Wire)
...In particular, Rule 8.3 requires public disclosure of any trading during the offer period by persons who own or control, or who would
as a result of any transaction......These disclosures should be sent to the Company Announcements Office of the London Stock
Exchange by fax (+011 44 20 7588 6057) or electronic delivery on the appropriate form and copied to...... strictly to historical or
current facts, but rather reflect our current expectations concerning future results and events....

http://biz.yahoo.com/bw/020417/170174_1.html

 

The SEC News Digest

http://www.sec.gov/news/digest/04-16.txt

 

Japan Econ Council: FSA Bank Probes Helped Financial Stability (Dow Jones)
...The meeting was the council's first after the FSA issued the results of its special inspections Friday. The council's approval of the
audits..

http://story.news.yahoo.com/news?tmpl=story&u=/dowjones/20020416/bs_dowjones/japan_econ_council__fsa_bank_probes_helped_f

inancial_stability

 

Reports

 

Bond Talk Today's Events

http://www.bondtalk.com/global.cfm?S=todaysevents

 

Miscellaneous News

 

Exchange-traded fund to track the Dow
GLOBAL equity indices provider Dow Jones Indexes plans to launch an exchange-traded fund (ETF) based on the Dow Jones Industrial Average Index...

http://globalarchive.ft.com/globalarchive/article.html?id=020417000636&query=futures+trading+exchange

 

ITG EPS Increases 13% in First Quarter Before One-Time Gain (Business Wire)
Investment Technology Group, Inc., a leading provider of technology-based equity trading services, today announced that for the first
quarter ended March 31, 2002, revenues increased 7% over first quarter 2001 to $97.7 million, net income was $22.2 million and diluted
earnings per share were $0.45.

http://biz.yahoo.com/bw/020417/172108_1.html

 

Knight Trading Group Reports Loss Per Share of $0.10 After Non-Operating Charges of $0.03 Per Share (PR Newswire)
Knight Trading Group, Inc. today reported results for the first quarter ended March 31, 2002.

http://biz.yahoo.com/prnews/020417/nyw015_1.html

 

Malaysian Shares End Up On US Gains; Trading Heaviest In Year (Dow Jones)
...The benchmark Kuala Lumpur Stock Exchange Composite Index of 100 blue chips ended up 1.3%, or 10.02 points,......Trading
Wednesday was the heaviest so far this year, dealers said.......The KLSE Composite Index futures contract for April nudged up 7.0
points to 795.50 points. Wednesday Tuesday Change Composite..

http://story.news.yahoo.com/news?tmpl=story&u=/dowjones/20020417/bs_dowjones/malaysian_shares_end_up_on_us_gains__tr

ading_heaviest_in_year

 

Singapore MAS To Introduce Risk-Based Capital Framework (Dow Jones)
SINGAPORE -(Dow Jones)- The Monetary Authority of Singapore and the Singapore Exchange will soon introduce a new risk-based
capital framework for members of the exchange, MAS Managing Director Koh Yong Guan said Wednesday.

http://story.news.yahoo.com/news?tmpl=story&u=/dowjones/20020417/bs_dowjones/singapore_mas_to_introduce_risk_ba

sed_capital_framework

 

Bear Stearns Hires Sergio Lires Rial as Senior Managing Director and Head of Strategic Finance (Business Wire)
...Inc. is a leading worldwide investment banking and securities trading and brokerage firm, and the major subsidiary of The Bear
Stearns Companies Inc. (NYSE:BSC)....... trading and research, private client services, derivatives, foreign exchange and futures
sales and trading, asset management and custody services...

http://biz.yahoo.com/bw/020417/172211_1.html

 

Merrill Lynch Earnings Fall in Q1 (AP)
First quarter earnings at Merrill Lynch & Co. fell 26 percent as a prolonged investment banking slump hurt the company's profits. The
results, however, exceeded the expectations of analysts who cover the nation's largest brokerage.

http://story.news.yahoo.com/news?tmpl=story&u=/ap/20020417/ap_on_bi_ge/earns_merrill_lynch_2


Merrill Lynch Reports First Quarter Net Earnings of $647 Million (Business Wire)
...Partially offsetting these negative factors was a modest improvement in listed equity trading volumes over fourth quarter levels, and a
favorable fixed income environment as interest rates......-- brokerage, clearing, and exchange fees were $198 million, down 16%
resulting from lower transaction volumes;...... actions and initiatives by current and potential competitors, the effect of current and
future legislation or regulation, and additional factors described in Merrill Lynch's Annual Report...

http://biz.yahoo.com/bw/020417/172067_1.html

 

FTSE/Xinhua Appoints Amex Chairman Salvatore F. Sodano To International Index Committee (PR Newswire)
Salvatore F. Sodano, chairman & CEO of the American Stock Exchange, has been appointed to the FTSE/Xinhua Index Committee
which oversees the FTSE/Xinhua China series of domestic indexes for Mainland China, which are designed to be used by both foreign
and domestic investors.

http://biz.yahoo.com/prnews/020416/nytu160_1.html

 

Hotspot FX Appoints Bernie Siegel to CFO (Business Wire)
Hotspot FX, Inc., the leading Electronic Communications Network for the foreign exchange markets, today announced the appointment
of Bernie Siegel as Chief Financial Officer.

http://biz.yahoo.com/bw/020416/162248_1.html

 

Connectivity hubs build tools to simplify onboarding, eyeforchem

http://www.atmarkets.org/inc/linkcount.asp?id=-1142992038&url=http%3A%2F%2Fwww%2Eeyeforchem%2Ecom%2Findex%2Easp%3Fnews%3D27734%26ch%3D%26nli%3

Dog%2Dc

 

Have E-Business Cost Cuts Gone Too Far?, E-Commerce Times

http://www.atmarkets.org/inc/linkcount.asp?id=-1506925492&url=http%3A%2F%2Fwww%2Eecommercetimes%2Ecom%2Fperl%2Fstory%2F17214%2Ehtml

 

OM AB - Interim Report January - March 2002

http://domino.omgroup.com/www/OMBulletinBoard.nsf/OMPortalNewsRef/DC592F70E3F04A18C1256B9E00230A42?OpenDocument

 

Belzberg Technologies Inc. Announces Completion of $14.3 Million Bought Deal (PR Newswire)
Belzberg Technologies Inc., a leading provider of electronic trading systems in Canada and the United States, today announced that it
has completed a previously announced private placement of 2,730,000 Special Warrants for gross proceeds of $14.3 million.

http://biz.yahoo.com/prnews/020416/to194_1.html

 

HSBC To Withdraw From Canadian Institutional Equities Sales (Dow Jones)
TORONTO -(Dow Jones)- HSBC Securities (Canada) Inc. plans to withdraw from institutional equities sales trading and research in Canada .

http://story.news.yahoo.com/news?tmpl=story&u=/dowjones/20020415/bs_dowjones/hsbc_to_withdraw_from_canadian_institutio

nal_equities_sales

 

E-Loan: Charles Schwab Converts $5 Million Note For 4.72 Million Shares (Dow Jones)
DUBLIN, Calif. -(Dow Jones)- E-Loan Inc. (EELN) said Charles Schwab Corp. ( SCH) converted its outstanding note into 4.7 million
common shares of E-Loan.

http://story.news.yahoo.com/news?tmpl=story&u=/dowjones/20020417/bs_dowjones/e_loan__charles_schwab_converts__5_milli

on_note_for_4_72_million_shares

 

Datek Reports 78,274 Average Daily Trades for March (Dow Jones)
JERSEY CITY, N.J. -(Dow Jones)- Datek Online Financial Services LLC March average daily trades per day rose to 78,274 from
85,203 last year and from 71, 735 in February.

http://story.news.yahoo.com/news?tmpl=story&u=/dowjones/20020416/bs_dowjones/datek_reports_78_274_average_daily_trades_

for_march

 

Fund evangelist (Forbes Magazine)
...Thanks to Sir John Templeton and others, the humble mutual fund is the most popular investment vehicle in America......."There are
very few alternatives: either low savings in a bank or speculative trading....

http://biz.yahoo.com/fo/020417/fund_evangelist_1.html

 

Bourse Direct/Net Profit -2: Close To Breakeven In '02 (Dow Jones)
PARIS -(Dow Jones)- Bourse Direct, the French online broker, halved its net loss in 2001 after virtually freezing the amount it spends
on promoting its services.

http://story.news.yahoo.com/news?tmpl=story&u=/dowjones/20020416/bs_dowjones/bourse_direct_net_profit__2__close_to

_breakeven_in__02

 

John's Comments

 

The LIFFE's web site's new top banner: No.1 in Euros - 99% of the Market.

 

Better!

 

***************

 

If you read anything today, read Patrick Young's editorial "Narrow Interests" under the Applied Derivatives heading.  Very thought provoking reading.

 

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.