John
Lothian's Daily Futures & Securities Industry Newsletter
July 1, 2003
John
Lothian's Daily Futures & Securities Industry Newsletter
July 1, 2003
Lead Stories
Second-Strongest Month in Eurex History with Over 102 Million Contracts Traded
Euronext.liffe interest rate products up 62% year-to-date
http://www.matif.fr/new_/new_press240_A.htm
286 Billion Euros In Turnover On German Stock Exchanges In June; 34 Percent More Transactions On Xetra In First Half Of 2003
http://www.exchange-handbook.co.uk/news_story.cfm?id=43036
Cantor's eSpeed Sues BrokerTec
NEW YORK (Reuters) - Cantor Fitzgerald LP's eSpeed Inc. (Nasdaq:ESPD - news) has sued BrokerTec, its largest electronic bond trading rival, alleging that BrokerTec's trading system infringes on an eSpeed patent.
http://story.news.yahoo.com/news?tmpl=story&u=/nm/20030701/bs_nm/financial_espeed_brokertec_dc_3
Icap says eSpeed patent suit is baseless
Icap, the UK based interdealer broker, on Tuesday said it would defend itself vigorously against a "baseless" patent lawsuit from rival eSpeed, a subsidiary of Cantor Fitzgerald.
http://story.news.yahoo.com/news?tmpl=story&u=/ft/20030701/bs_ft/1054966567515
Derivatives on FTSEurofirst see very promising first week’s trading
http://www.strategicsinc.com/scripts/releases/index.cgi?cust=2&id=586
Exchange-traded fund debuts
Taiwan's first exchange-traded fund got off to a smooth start on Monday, with a total turnover of 9.93 million units, which matched market expectations, dealers said. The Polaris Taiwan Top 50 Tracker Fund, or TTT, opened at NT$36.96 per ETF unit and closed at NT$37.08. The fund is traded in lots of 1,000 units.
http://www.taiwanglobe.com/p/69/ed0403c39dc5.html?id=14c4611
***** Notice that this ETF launched was instantly given a nickname, the TTT.
Taiwan's ETF launch opens the door to foreign investors
Hailed as a trigger for a further diversification of Taiwan's financial markets, the island's first ever exchange-traded...
SGX DERIVATIVES MARKET SETS SEVERAL RECORDS IN JUNE AND FIRST HALF OF 2003
Deutsche Börse Expands Fixed-Income ETF Offerings in XTF Segment
U.S. debt futures washing away in tidal shift
By Ros Krasny
CHICAGO, June 27 (Reuters) - Treasury futures traders at the Chicago Board of Trade sniffed a shift in tone a few weeks ago. The winds of change are blowing harder now, pushing prices to seven-week lows. Heavy selling has come from a confluence of factors, not least of which is a sense that supplies are steadily becoming more burdensome. "Supply, supply, supply. There is a very visible sense that more debt will be coming onto the market," said Doug Warner, CBOT floor trader and a vice president at Man Financial.
http://www.forbes.com/work/careers/newswire/2003/06/27/rtr1013913.html
Online bond trading growing
Bond rally has spurred investing, but bonds hard to track, take more time to monitor over Internet
Researching and trading stocks online became common in the long bull market. During the bond rally of the last three years, a small group of do-it-yourself investors has begun to assemble portfolios of bonds bought online. Online bond trading remains cumbersome, partly because information about bonds is harder to find on the Internet than data about stocks. And unless investors restrict their online purchases to Treasury and Ginnie Mae issues, which are backed by the government, they will need to devote a lot of time to monitoring their portfolios, many advisers caution. Numbers for the entire industry are not available, but Charles Schwab & Co., the big discount broker, said its clients now average 10,000 online bond trades a month, up from 1,000 in August 2000, when it began to offer the service. By contrast, Schwab clients made 143,990 trades of stocks or mutual funds online on an average day in March, the company said.
http://www.ohio.com/mld/ohio/business/6191032.htm
Chicago Mercantile Exchange Holdings Inc. Named to Russell 1000® Stock Index (07/01/03)
Chicago Mercantile Exchange Holdings Inc. (NYSE: CME) announced today that the company officially will be named to the Russell 1000® Index, effective today.
http://www.cme.com/news/shownews.cfm?NewsItem=0006EDB0-713B-1F01-A0C880EDBEFB0000
CME Announces Regular Quarterly Revision of Price Limits for Stock Index Products (06/30/03)
Regular quarterly revision of price limits for stock index futures and options traded on Chicago Mercantile Exchange Inc. (CME) become effective with today’s GLOBEX® electronic trading session beginning at 3:45 p.m. (Central time).
http://www.cme.com/news/shownews.cfm?NewsItem=000A8583-A67B-1F00-A0C880EDBEFB0000
NYSE Announces Third-Quarter 2003 Circuit-Breaker and Trading-Collar Levels
http://www.nyse.com/press/1056810878783.html
Dow Contracts Price Limits and Trading Halts
3rd Quarter 2003 DowSM Circuit Breakers
http://www.cbot.com/cbot/dow/cont_detail/0,2614,1+8704,00.html
Exchange News
CBOT, Add Month Notice, June 27, 2003 - 07.01.2003
http://www.cbot.com/cbot/www/cont_detail/0,1493,10+24+268+13098,00.html
CBOT Trading Postition Change, Soybean Oil, July 02, 2003 - 07.01.2003
http://www.cbot.com/cbot/www/cont_detail/0,1493,10+24+268+13099,00.html
CBOT Strike Price Notice, July 01, 2003 - 07.01.2003
http://www.cbot.com/cbot/www/cont_detail/0,1493,10+24+268+13100,00.html
Independence Day Schedule
KCBT announces change to trading schedule for July 3
http://www.kcbt.com/news_2.asp?id=102&home=1
Dick Grasso Statement on SEC Approval of NYSE Rules Relating to Shareholder Approval and Voting of Proxies
http://www.nyse.com/press/1056810879834.html
June 2003 - Euronext key indicators
http://www.euronext.com/news/press_release/0,4159,1732_6775_65522089,00.html
Effective date about amendment to determination method for settlement price for futures contracts.
http://www.tse.or.jp/english/news/2002/200212/021217_a.html
Withdrawal of Trading Qualification and Clearing Qualification in OSE
http://www.ose.or.jp/e/news/0307/030701a.html
Regulatory News
CFTC Proposes Rule Modernization for Customer Fund Investments
http://www.cftc.gov/opa/press03/opa4806-03.htm
CFTC Issues Final Amendments to Bunched Orders Rules
WASHINGTON (HedgeWorld.com)—The Commodity Futures Trading Commission issued final amendments to its regulations governing the bunching of customer orders, §1.35(a-1)(5).
http://www.hedgeworld.com/news/read_news.cgi?section=legl&story=legl1824.html
U.S. CFTC plans new rules on repos and collateral
WASHINGTON, June 30 (Reuters) - The U.S. Commodity Futures Trading Commission on Monday proposed rule changes making it easier for brokers to invest customer funds using repurchase agreements and collateral management programs.
http://www.forbes.com/markets/newswire/2003/06/30/rtr1015079.html
The SEC News Digest
http://www.sec.gov/news/digest/dig063003.txt
SEC Approves Amendments to TRACE Rule 6230 to Reduce the Reporting Period to 45 Minutes
http://www.nasdr.com/pdf-text/0336ntm.txt
Short seller now faces more charges
NEW YORK -- Prosecutors have added new charges to their case against a well-known Internet-based short seller, Amr ''Tony'' Elgindy, and accused a hedge fund manager of being part of the alleged conspiracy.
http://story.news.yahoo.com/news?tmpl=story&u=/usatoday/20030701/bs_usatoday/5287134
Peregrine sued by SEC for fraudulent financial reporting
The agency charged Peregrine with 'massive fraud'
After a 14-month government investigation, Peregrine Systems Inc. has been charged with "massive fraud" by the U.S. Securities and Exchange Commission for allegedly falsifying sales and exaggerating revenue, then covering up the scheme.
***** This is NOT related to Peregrine Financial Group, the futures commission merchant, but rather a software company that also uses the name “Peregrine.”
Reports
Bond Talk Today's Events
http://www.bondtalk.com/global.cfm?S=todaysevents
USDA Today
http://www.usda.gov/nass/PUBS/TODAYRPT/TODAY.HTM
Miscellaneous News
Lifting Markets Don't Sway Short-Term E-Broker Enhancement Plans
The ongoing equity markets rally, accompanied by the long-awaited return of retail investors, might lead you to believe that discount brokers are readying waves of new creature features and services to inextricably lock self-directed investors into the low-cost Internet channel.
http://www.wallstreetandtech.com/story/topNews/WST20030626S0006
OptionsXpress Encourages Stock Investing With Newly Reduced Margin Rate Of 1.99 Percent APR
...In exchange for this leverage, brokers charge a margin rate back to the investor....... have already seen other brokers emulate this program and expect to see much more in the near future.......Inc. Please note: Additional risks, terms and conditions apply to margin trading and optionsXpress accounts as posted online....
http://biz.yahoo.com/prnews/030630/cgm024_1.html
Politicians Call for Global War on E-Mail Spam
LONDON (Reuters) - Politicians and industry officials on Tuesday called for new global laws to block the flow of spam, unsolicited e-mails that clog in-boxes and threaten to destabilize the world's computer networks. Lawmakers in Europe, the U.S. and Australia are in the process of drafting laws that would criminalize the delivery of unwanted bulk e-mails.
http://news.lycos.com/news/story.asp?section=Breaking&storyId=759333
MSCI to Launch the MSCI® Hedge Invest Index; MSCI and Lyxor Announce Signing of Agreement
http://www.morganstanley.com/about/pressroom/news268.html?page=press
EasyScreen to offer foreign exchange trading through SEB - 1 July 2003
http://www.easyscreen.com/easyscreen_newsroom/easyscreen_newsroom.html#
Dealing With Loss
By Jonathan Hoenig
LIKE THE RING toss at the carnival and rollerblading at the beach, investing always seems easier than it really is. You can be correct on the sector but wrong on the stock. You can be correct on the timing but wrong on your position size. This is a game where there's slim margin for error and plenty of opportunity to do the wrong thing.
http://story.news.yahoo.com/news?tmpl=story&u=/sm/20030630/bs_sm/20030623trad
Instinet To Release 2003 Second Quarter Results On July 21
http://www.exchange-handbook.co.uk/news_story.cfm?id=43032
Federation Of Euro-Asian Stock Exchanges June Newsletter Posted On The Web
http://www.exchange-handbook.co.uk/news_story.cfm?id=43026
Mexican Derivatives Exchange Explosive Growth In June - 29,932,353 Contracts Traded
http://www.exchange-handbook.co.uk/news_story.cfm?id=43019
John’s Comments
Julie Sorkin
Condolences to the family and friends of Julie Sorkin, including her father, Merchant’s Exchange COO Jay Sorkin, for the tragic death of the 25-year old Julie in the porch collapse in Chicago over the weekend. Services are today. Remembrances may be made to the Julie Sorkin Memorial Fund of Temple Jeremiah, Temple Jeremiah, 937 N. Happ Road, Northfield 60093.
Here is the notice from the Chicago Suntimes:
http://www.legacy.com/chicagosuntimes/LegacySubPage2.asp?Page=LifeStory&PersonId=1125470
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New Indices Trading Price Limits
See in lead stories for new quarterly price limits.
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Sign up for patsystems Inside Trade Corporate Newsletter
http://www.patsystems.com/MarketingLibrary/index.cfm?fuseaction=MarketingLibrary
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Orc Software, Inc has moved offices in NYC
New address is: 420 Lexington Ave., Suite 2007, New York, NY 10170.
Phone: 646-435-2062
Fax: 646-435-2069
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Happy Birthday to Drew Mauck
Yesterday was the 25th birthday of the hard working and energetic Strategics, Inc. Director of Media Relations Drew Mauck. Drew is a constant presence in my email inbox and ear, making sure his clients are getting their stories out. Congratulations Drew on turning a quarter of a century old.
Regards,
John J. Lothian
President
Electronic Trading Division
The Price Futures Group, Inc.
141 West Jackson Blvd., Suite 1340A
Chicago, IL 60604
Phone: 1-800-713-0215 or 312-648-2426
Fax: 312-902-6437
email: 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. Security futures are not suitable for all customers.
Futures and options trading involve risk. Past results are no indication of future performance.