National Futures Association permanently bars Chicago introducing broker; fines Chicago FCM

July 19, 2001 - National Futures Association (NFA), a self-regulatory organization for the U.S. futures industry, permanently barred Top Step Trading, Inc. (NFA ID #289742), a former introducing broker NFA Member located in Chicago, Illinois, from NFA membership. NFA also permanently barred Richard B. Bertsche (NFA ID #256290), president of Top Step, and Peter F. Rondoni (NFA ID #266052) and Joseph C. Rondoni (NFA ID #281896), associated persons of the firm, from NFA membership and Associate membership and from acting as a principal of any NFA Member.

http://www.nfa.futures.org/news/newsReleases/nr07192001.html

SFA ISSUES AN INTERVENTION ORDER AGAINST LINNCO EUROPE LIMITED

SFA has issued an intervention order against Linnco Europe Limited (Linnco) in order to protect the customers of Linnco. The
firm is required to cease carrying on investment business from close of business on 18 July 2001. The only exceptions to this are to
allow the transfer of customer positions and assets to another firm or to close positions and return assets to the customers. There
are regulatory staff at the premises of Linnco.

http://www.fsa.gov.uk/sfa/press_releases/2001/SFA006Linnco.htm

CBOT to Launch Contract on the Dow Jones-AIG Commodity IndexSM - 07.19.2001
The Chicago Board of Trade, Dow Jones Indexes and AIG Trading Group Inc. (AIG Trading), a member company of American
International Group, Inc. (NYSE: AIG), announced the launch of a futures contract on the Dow Jones-AIG Commodity IndexSM
(DJ-AIGCI).

http://www.cbot.com/cbot/www/cont_detail/0,1493,11+24+109+3860,00.html

CBOT to launch futures on DJ-AIG commodity index (Reuters Securities)
The Chicago Board of Trade said on Thursday it plans to launch a futures contract based on the Dow Jones-AIG Commodity
Index on its electronic trading platform, a/c/e, from the fourth quarter of 2001. 

http://biz.yahoo.com/rf/010719/n19101768.html

CME Has Second Busiest Day in 103-Year History As Trading Volume Reaches Nearly 2.7 Million Contracts

http://www.cme.com/news/01-91RecordVolume.html

CME daily volume hits 2.7 mln, second-highest ever (Reuters Securities)
The Chicago Mercantile Exchange Inc. said on Thursday that 2,682,228 futures and options contracts
changed hands on Wednesday, the second-highest single-day total in the derivatives exchange's 103-year
history. 

http://biz.yahoo.com/rf/010719/n1994045.html

NYCE Announces Correction To December 2001 Cotton Option Last Trading Day

http://www.nybot.com/pressRelease.asp?releaseID=276

London Stock Exchange vote paves way for flotation (Reuters Securities)
The London Stock Exchange, Europe's largest bourse, voted on Thursday to abandon limits on how much of it
shareholders can own, paving the way for a full listing while making it more vulnerable to a takeover. 

http://biz.yahoo.com/rf/010719/l199783_4.html

Euronext announces launch of Winefex® Bordeaux - The world's first future for fine Bordeaux wines

http://www.matif.fr/new_/new_press210.htm

Merrill settles case brought by former client-WSJ (Reuters Securities)
Merrill Lynch and Co. Inc. settled a high-profile arbitration case brought by a former client who claimed he
was misled by a bullish stock call by technology-stock analyst Henry Blodget, the Wall Street Journal
reported in its online edition on Friday. 

http://biz.yahoo.com/rf/010720/n20326187.html

S.E.C. Nominee Says Rules Need a Review (The New York Times)
Harvey L. Pitt, making his first public appearance since being selected to head the S.E.C., told senators that he
would undertake a comprehensive review of the agency's rules and regulations with the aim of simplifying and
reducing them. 

http://dailynews.yahoo.com/h/nyt/20010720/bs/s_e_c_nominee_says_rules_need_a_review_1.html

Consumer Advocates Uneasy About SEC (AP Financial)
New declarations by President Bush's nominee to head the SEC in favor of reviewing securities laws and listening more to Wall
Street have made some consumer advocates uneasy and heartened the industry. 

http://biz.yahoo.com/apf/010720/sec_pitt.html

SEC nominee Harvey Pitt says would divest holdings (Reuters Securities)
..."But I think because the SEC regulates public companies it is better for the public... 

http://biz.yahoo.com/rf/010719/n19146324.html

Brookings sees stock markets going regional

http://biz.yahoo.com/rf/010720/sin327682.html

Exchange News

Board of Trade Clearing Corp. elects governor

http://biz.yahoo.com/rf/010719/n1920880.html

Regulation 350.04--Assignment Intra-, Interday Outtrades - 07.19.2001
Regulation 350.04 allows a floor broker to assign certain intraday or interday outtrades to his error account subject to specified conditions.

http://www.cbot.com/cbot/www/cont_detail/0,1493,11+24+268+3851,00.html

Margin Requirements, Dow Jones Industrial Average - 07.19.2001
Effective Friday July 20, 2001 DJIA Margin Requirements

http://www.cbot.com/cbot/www/cont_detail/0,1493,11+24+268+3858,00.html

CBOT/Midam Strike Price Notice July 19, 2001 - 07.19.2001
CBOT/Midam Strike Price Notice July 19, 2001

http://www.cbot.com/cbot/www/cont_detail/0,1493,11+24+268+3861,00.html

New York Stock Exchange Issues Monthly Short Interest Report

http://www.nyse.com/press/NT00047416.html

Program Trading Averaged 26.1Percent of NYSE Volume During July 9-July 13, 2001 

http://www.nyse.com/press/NT00047426.html

The American Stock Exchange® Reports Increase in Short Interest

http://www.amex.com/reference/pr_shortinterest_071901.stm

PHLX to File with the SEC to Eliminate Exchange-Based Payment for Order Flow Fee

http://biz.yahoo.com/prnews/010719/phth044.html

AIM six years on: Continuing to attract new companies

http://www.londonstockexchange.com/press/releases/19-06-01.asp

The American Stock Exchange Launches Trading in Three New ETFs New iShares based on Russell Midcap Indexes (PR Newswire)
... National Association of Securities Dealers, Inc. (NASD®... 

http://biz.yahoo.com/prnews/010720/nyf032.html

New Zealand Stock Exchange approved for takeover exemptions

http://www.asic.gov.au/index.cfm-id=416FA427-7B6A-11D5-A531009027DE39A4&Method=Full&story=yes.htm

Regulatory News

Weekly Advisory - July 20, 2001

http://www.cftc.gov/opa/adv01/opawa30-01.htm

The SEC News Digest

http://www.sec.gov/news/digest/07-19.txt

Former stockbroker jailed over $298,000 fraud

http://www.asic.gov.au/index.cfm-id=13AFBCCA-7CA4-11D5-A532009027DE39A4&Method=Full&story=yes.htm

Reports

Bond Talk Today's Events

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

Tri-West Investment Club promoter barred from market for 18 months

http://www.bcsc.bc.ca/news/NR01_30.asp

Miscellaneous News

HDFC Bank to price ADS on Friday-officials (Reuters Securities)
India's second largest private bank HDFC Bank is expected to list its American Depositary Shares at the New
York Stock Exchange on Friday, officials familiar with the process said. 

http://biz.yahoo.com/rf/010720/bom33217.html

T. Rowe Price Group Reports Second Quarter 2001 Results (PR Newswire)
...Trading volume is down and average commission rates have been...... concerning risks and other factors that could affect
future results,...... filed by July 26, 2001 with the U.S. Securities and Exchange Commission and will include more complete
information... 

http://biz.yahoo.com/prnews/010720/phf003.html

Options Industry Services Celebrates Its First Year at OCC

http://www.optionsclearing.com/press/rel_2001/press_rel_07_19_01.jsp

GARP Saga Continues

Two weeks following the scandalous email that was sent around the risk management community, the Global Association of Risk Professionals (GARP) is still trying to catch its breath.

http://www.garp.com//newsfeed.asp?Category=6&MyFile=2001-07-20-3292.html

Why e-Business? Line56

http://www.line56.com/articles/default.asp?NewsID=2746

B2B Exchanges Are Taking Shape, eMarketer

http://www.emarketer.com/analysis/ecommerce_b2b/20010720_b2b.html

Australian Pension Fund Makes First Hedge Fund Investment

http://www.hedgeworld.com/news/read_news.cgi?section=intl&story=intl2895.html

Japan bank stocks hit new low
Reuters English News Service, 19-Jul-2001
Japanese bank stocks fell to 10-year lows yesterday as investors expressed their disappointment with the slow pace of industry reform, and officials predicted that the real level of bad debts would be 25 per cent higher than banks had claimed. 

http://www.erisks.com/news/daily/news_daily_dowjones.asp?AN=RTR0120019024  Log in required

CBOT plans swap future
Financial Times, 19-Jul-2001
The latest futures contract to be based on the swap curve is to be launched by the Chicago Board of Trade this autumn, a move that the exchange hopes will attract players that want to avoid OTC counterparty risks. 

http://www.erisks.com/news/daily/news_daily_dowjones.asp?AN=FTI0120000072   Log in required

SmartMoney.com - Tradecraft
Profiting From the Blahs

http://biz.yahoo.com/smart/010719/20010719trad.html

London Stock Exchange fizzles on on debut (Reuters Securities)
...Frankfurt's Deutsche Boerse ,... 

http://biz.yahoo.com/rf/010720/l2097156_6.html

FACTBOX-Listed stock exchanges (Reuters Securities)
The London Stock Exchange listed on its own stock market on Friday, building on its position as Europe's largest bourse and
positioning itself for tie-ups in an increasingly global market. 

http://biz.yahoo.com/rf/010720/l19327492_2.html

Buy-Side Moving Slowly Towards Online FX Trading But Relationships Are Still King (Business Wire)
The telephone is still the primary vehicle for initiating buy-side FX trades and will be for some time to come, says a new report
from Meridien Research. Relationships will continue to be a key driver in the FX marketplace and online systems will have to
provide value added services in order to move clients from telephone-based initiation to online marketplaces. 

http://biz.yahoo.com/bw/010719/2336.html

Sungard Q2 operating profit jumps 23 pct (Reuters Securities)
SunGard Data Systems Inc.(NYSE: SDS - news ), which makes software for financial companies, on Thursday
posted a 23-percent rise in second-quarter operating profit, helped by a jump in revenues, and said full-year
results are likely to be in line with analysts' forecasts. 

http://biz.yahoo.com/rf/010719/n19174312.html

Morgan Stanley fires around 25 junior bankers-source (Reuters Securities)
Morgan Stanley, a top Wall Street firm, is firing about 25 junior investment bankers, getting rid of
underperformers in a stagnant U.S. economy and weak stock market, sources close to the matter said. 

http://biz.yahoo.com/rf/010719/n19360887.html

John's Comments

The story behind the story behind the story of a three regulatory stories has some well known names in Chicago futures circles connected to them in some manner. 

Yesterday's story about the CFTC bringing charges against a Chicago area IB did not slip by the Chicago Suntimes, who noted the connection to the story and the firms involved and Jack Sander, former Chairman of the Chicago Mercantile Exchange. 

Sandner firm charged in futures fraud Federal watchdogs of Chicago's futures trading industry Wednesday charged that a firm headed by Jack Sandner, former chairman of the Chicago Mercantile Exchange, benefited from a fraudulent scheme involving
pork-belly contracts.

http://www.suntimes.com/output/business/cst-fin-sand19.html

Then there is today's top story about an IB, Top Step Trading Inc., and the Rondoni brothers being permanently banned from the futures industry by the National Futures Association.  Their father (who has no connection to the banned firm according to my sources) is Charlie Rondoni, who has been active in Midam/CBOT politics. 

Lastly, today's second story about Linnco Europe Limited makes me question the value of putting your name onto a company and later selling it.  Linnco was named for Gordon Linn, who know runs the Linn Group.  Gordy, as he is affectionately known, left Linnco in the early 1990s.  Linnco in the U.S. was renamed LFG, LLC after Gordy left and LFG's customer business was later sold to Refco.  Confused yet?  I know I am.  Who is on first?

Regards,

John J. Lothian

Electronic Trading Division

The Price Futures Group, Inc.

www.pricegroupetd.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.