John
Lothian's Daily Futures & Securities Industry Newsletter
June 25, 2002
Lead
Stories
CAPITAL
MARKETS: Interest rate swaps futures make headway - Financial Times, Jun
25, 2002
But futures contracts based on interest rate swaps have so far been looked at
with misgiving by market-makers and traders...
GE
Coughs Up Its B2B Unit, internetnews
Scrutiny
of the trading practices of US energy companies could exacerbate liquidity
issues for the industry (MSNBC)
Power
producers face credit crunch
Backlash from trading abuses could bring more blackouts
http://www.msnbc.com/news/771609.asp?cp1=1
Hedge
Fund Industry To Pass US$1 Trillion Mark By 2004
http://www.hedgeworld.com/news/read_news.cgi?section=strt&story=strt2991.html
After
the flood
The go-go ’90s are over. But set a steady course, and markets can still make
you money
Insurers
to accuse JP Morgan of cover-up - Europe Intelligence Wire, 25-Jun-2002
Insurance companies who are trying to avoid paying $1.13 billion on surety
bonds written for JP Morgan Chase on transactions with Enron will claim that
the bank deliberately tried to conceal Enron’s
financial condition, reports say.
US
states face challenge to authority - Knight-Ridder/Tribune Business News,
25-Jun-2002
US lawmakers will try to prevent individual states from pursuing securities
firms, according to New York State attorney general Eliot Spitzer, who says
that such a move
would be “a horrendous mistake”.
Bush
backs SEC accounting reform - Europe Intelligence Wire, 24-Jun-2002
US president Bush yesterday threw his weight behind a Securities and Exchange
Commission-led plan to reform the accounting profession – a move that pits him
against
leading Democrats who have backed a different proposal.
The
Imperial Chief Executive Is Suddenly in the Cross Hairs (The New York Times)
...Meanwhile, Charles R. Schwab, hoping to capitalize on Wall Street's new
unpopularity, has appeared in a television advertisement...
Exchange
News
CBOT
Press Briefing After Jun 28 USDA Acreage, Grain Stock Rpts - 06.24.2002
CBOT to host press
briefing following June 28 USDA acreage and grain stocks reports.
http://www.cbot.com/cbot/www/cont_detail/0,1493,10+24+null+7517,00.html
Pacific
Exchange To Trade Options on IsharesNasdaq Biotechnology Index Fund
http://www.pacificex.com/news/press/press-2002/press_02_ishares.html
Regulatory
News
California
Commodity Trader Charged with Unauthorized Trading, Unlawfully Operating a
Commodity Pool and Illegally Managing Trading Accounts
http://www.cftc.gov/opa/enf02/opa4660-02.htm
Time
to say "au revoir"
Why let Quebec stall a national securities regulator?
The
SEC News Digest
http://www.sec.gov/news/digest/06-24.txt
Law
Firm to Pay $1.2 Million Fine in SEC Suit Against Sharp Capital (Dow Jones)
...The SEC lawsuit against Sharp Capital Advisors Inc., filed in federal court
in 1998,...
Reports
Bond
Talk Today's Events
http://www.bondtalk.com/global.cfm?S=todaysevents
Miscellaneous
News
30
stocks from the pros
Canada’s top mutual fund managers are fussy by nature. Here’s what they’re
putting in their portfolios —and why
Devil
in the details
Forensic accountant Al Rosen asks why financial statements hide the important
stuff in the fine print
Interactive
Brokers Launches Its Universal Account -- Trade Stock, Options, Futures and FX
Globally From a Single Account (PR Newswire)
Interactive Brokers today launched its new Universal Account that will
revolutionize global electronic trading
http://biz.yahoo.com/prnews/020624/cgm035_1.html
Trading
troubles threaten Martha Stewart's image (USA TODAY)
...Martha Stewart Living Omnimedia stock dropped 21%, closing in New York Stock
Exchange ( news - web sites) trading at
$12.55.......Her crisis is the future viability of her empire,'' says the
author of Crisis Management: Planning for the Inevitable....
http://story.news.yahoo.com/news?tmpl=story&u=/usatoday/20020625/bs_usatoday/4220045
Martha
Stewart shares at All-Time Low (Reuters)
The shares of Martha Stewart Living Omnimedia fell precipitously, hitting its
historic low on Monday as concerns about Martha
Stewart's links to an insider trading investigation were stoked by the
suspension of her stockbroker by Merrill Lynch.
http://story.news.yahoo.com/news?tmpl=story&u=/nm/20020624/bs_nm/media_martahstewart_stock_dc_1
ISDA
Launches ISDAFIX Publication of Hong Kong Dollar
The
International Swaps and Derivatives Association (ISDA) announced yesterday the
addition of a Hong Kong Dollar (HKD) ISDAFIX rate to its schedule of swap rates
published daily on Reuters
http://www.garp.com//newsfeed.asp?Category=6&MyFile=2002-06-25-5049.html
Regulation
Risk – Australia To Ensure Independence Of Stock Brokerages
Australia
's federal government will examine the independence of stock brokerage advice
and disclosures of information by companies to the public to help protect
investors.
http://www.garp.com//newsfeed.asp?Category=6&MyFile=2002-06-25-5052.html
Two
Funds of Funds Hire FundRunner For Investor Communications
http://www.hedgeworld.com/news/read_news.cgi?section=tech&story=tech1998.html
A
fund management industry group is set to suggest a code of conduct on executive
compensation (BBC)
http://news.bbc.co.uk/hi/english/business/newsid_2062000/2062622.stm
Search
completed of bank building near World Trade Center site; no remains found (AP)
...Firefighters
began searching the Deutsche Bank building, located across the street from
where the south tower once stood,..
http://story.news.yahoo.com/news?tmpl=story&u=/ap/20020625/ap_wo_en_po/us_attacks_remains_3
Currency
Plays Are Never Easy (Morningstar.com)
Using foreign funds
to bet on a falling dollar is problematic.
http://biz.yahoo.com/ms/020625/45484_1.html
Data
Transmission Network Corporation (DTN) Launches New Version of DTN.IQ Investor
Software (PR Newswire)
... etc) to the cell level Ability to export a watch list as DDE links for
Excel U.S. Futures and Emini data included Cut and
paste into and out of watchlist Changed and standardized field names...
http://biz.yahoo.com/prnews/020625/cgtu025_1.html
John's
Comments
The CME set
a new volume record in the emini S&P yesterday and just missed eclipsing
the 1 million contract mark for total Globex daily volume for the second time
ever. The CME traded 647,194 emini S&P contracts, up from the
previous record of 615,323 on June 13. Total exchange Globex volume yesterday
totaled 992,786 contracts, according to the daily bulletin of the
CME. I believe this is the second highest Globex daily volume total.
*************
The NYMEX
traded 821 emiNY Natural Gas contracts and 1570 emiNY Crude Oil contracts
yesterday.
*************
I asked for
more information from the CBOT. I think I am starting to see it.
Here is some CBOT Dow news:
CBOT DowSM News and Highlights: June 13 - June 17
The
Dow complex averaged 41,540 contracts per day during the week of June 13 – June
17, up from its 2002 average contracts traded per day of 26,896.
$10
Open Auction Dow futures averaged 31,480 contracts per day during the week of
June 13 – June 17, its second best performance of 2002.
The
new electronically traded mini-sized ($5) Dow futures contract, launched April
5, 2002, continues to grow, averaging 7,754 contracts per day during the week
of June 13 – June 17, up from its average 6,167 contracts per day since
launch. The 20-day moving average
for the $5 Dow futures contract continues to grow:
20-Day Moving Average
Report, mini-sized ($5) Dow Futures Contract
|
Week Ending |
20-Day Moving Average
Volume |
|
May 17 |
5,677 |
|
May 24 |
5,615 |
|
May 31 |
5,870 |
|
June 7 |
6,113 |
|
June 14 |
6,928 |
|
June 21 |
7,507 |
CBOT Volume and Open Interest Report: June 13 –
June 17
|
Contract |
Ave.
Daily Traded |
Open
Interest* |
|
$5
Electronic |
7,714 |
3,156 |
|
$10
Open Auction |
31,480 |
25,473 |
|
$2
Electronic |
1,619 |
1,011 |
|
$10
Electronic |
727 |
N/A** |
*
as of June 17, 2002
** included in $10
Open Auction
Volatility Comparison:
June 13 – June 17
|
|
Ave.
Daily $ Change in Price |
Ave. $
High/Low Range |
|
Electronically
Traded: |
|
|
|
Mini-sized Dow ($5 Mult.) |
$589 |
$845 |
|
Mini-sized Dow ($2 Mult.) |
236 |
338 |
|
|
|
|
|
Open
Auction: |
|
|
|
Dow ($10 multiplier) |
$1,178 |
$1,690 |
Margins
The CBOT
Dow equity complex offers a margin structure that is competitive to other U.S.
stock index futures contracts.
Current Dow margins are:
|
Stock Index Group |
Maintenance
Margin (per contract) |
Initial
Margin (per contract) |
|
Dow ($10 multiplier) |
$3,000 |
$4,050 |
|
Mini-sized Dow ($5 Mult.) |
$1,500 |
$2,025 |
|
Mini-sized Dow ($2 Mult.) |
$600 |
$810 |
**********
Sorry, no
fashion news today. :-) I would say though that the emini S&Ps
sure where rocking 'n' rolling yesterday.
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.