John Lothian's Daily Futures & Securities Industry Newsletter
November 6, 2002
Lead
Stories
CBOT
Pres. & CEO Vitale Resigns, EVP Dan Named Successor - 11.05.2002
CBOT announces resignation of David Vitale as President and CEO, Names EVP
Bernard Dan as successor, Promotes EVP Carol Burke to additional role of Chief
of Staff.
http://www.cbot.com/cbot/www/cont_detail/0,1493,10+24+null+9680,00.html
SEC
Chairman Resigns Under Pressure (AP)
...Pitt's stumbles had been seen as weakening the SEC at a time when the market
was reeling from corporate debacles,...
http://story.news.yahoo.com/news?tmpl=story&u=/ap/20021106/ap_on_bi_ge/pitt_resigns_13
Euronext.liffe
- Euronext.liffe Trades Record Average Daily Value Of €985 Billion
http://www.exchange-handbook.co.uk/news_story.cfm?id=40198
Chairman
Of The US Securities And Exchange Commission Resigns
http://www.exchange-handbook.co.uk/news_story.cfm?id=40199
Vitale
out, Dan in at Board of Trade
http://www.chicagobusiness.com/cgi-bin/news.pl?id=7078
CBOT's chief executive departs after 18 months
http://www.chicagotribune.com/business/chi-0211060306nov06,0,1340327.story?coll=chi%2Dbusiness%2Dhed
CBOT
can find no market for change agents
http://www.chicagotribune.com/business/chi-0211060304nov06,0,422821.column?coll=chi%2Dbusiness%2Dhed
Chicago
Board of Trade Chief Resigns
http://abcnews.go.com/wire/Business/reuters20021105_619.html
CBOT president loses battle
http://www.suntimes.com/output/business/cst-fin-cbot06.html
David
Vitale Resigns As BOT Head
http://story.news.yahoo.com/news?tmpl=story&u=/ap/20021106/ap_on_bi_ge/board_of_trade_president_2
Chicago
Board of Trade's CEO steps down (FT.com)
The Chicago Board of Trade on Tuesday said it had accepted the resignation of
its chief executive, David Vitale, ending a month of uncertainty at the top of
one of the US's largest derivatives exchanges.
http://biz.yahoo.com/ft/021105/1035873026340_2.html
BrokerTec
Futures Exchange Sets New Records For Screen-Traded Volume
http://www.btecfutures.com/exchange/news/press-releases/index.cfm
CBOT
Names Judy Gordon as Director of Marketing - 11.05.2002
Ms. Gordon,
previously director of online services with Raymond James Financial, will be
responsible for the CBOT's product marketing and brand development, and will
report to Senior Vice President Marty Reiner.
http://www.cbot.com/cbot/www/cont_detail/0,1493,10+24+null+9669,00.html
Chicago
Mercantile Exchange Inc. Appoints Director, Corporate Communications
http://www.exchange-handbook.co.uk/news_story.cfm?id=40193
Building
Investor Confidence is Industry’s Top Priority as Industry Leaders Gather for
SIA's Annual Meeting, November 6 - 8
http://www.sia.com/press/html/pr_annual_meeting2002.html
Exchange
News
NQLX
Only Exchange with Futures on ETFs
New York,
November 6, 2002 – Nasdaq Liffe Markets, LLC (NQLX) announced today the
security futures contracts that will be available for trading at launch this
Friday, November 8th at 10:30 AM (EST). In alphabetical order:
Futures
on Single Stocks
· Chevron Texaco (CVX)
· Exxon Mobile (XOM)
· Ford Motor (F)
· General Electric (GE)
· General Motors (GM)
· Honeywell International (HON)
· IBM (IBM)
· Intel (INTC)
· Microsoft (MSFT)
· Oracle (ORCL)
Futures
on Exchange Traded Funds
· Nasdaq-100 Index Tracking Stock (QQQ)
· Russell 1000 iShares (IWB)
· Russell 2000 iShares (IWM)
· Russell 3000 iShares (IWV)
Tom Ascher,
NQLX CEO, said, “We are both pleased and confident that our product listing for
launch includes some of the preeminent and widely held companies in the U.S.
These companies represent the innovation, determination and leadership that
embody American capitalism as its finest. We look forward to developing NQLX to
a point where it enhances the efficiency of the U.S. capital markets.”
Over the coming weeks, NQLX will expand its security futures listings. All
NQLX-listed products will be made available through member firms on NQLX’s
derivatives trading platform, LIFFE CONNECT™.
NQLX is a
fully electronic, federally regulated exchange formed as a joint venture between
The NASDAQ Stock Market Inc.® and LIFFE (London International Financial Futures
and Options Exchange). It will initially list security futures on both exchange
traded funds and the largest U.S. companies through LIFFE's electronic trading
platform, LIFFE CONNECT™. For more information on NQLX, visit: www.nqlx.com
NQLX
MARGIN RULES APPROVED - NOV. 8th START
http://www.nqlx.com/NQLX/PressRelease/NQLXrules-Final1.pdf
CBOT
Trading Postition Change, US T- Bonds, November 27, 2002 - 11.05.2002
http://www.cbot.com/cbot/www/cont_detail/0,1493,10+24+268+9676,00.html
Goldman Sachs Commodity Index (GSCI®) Revises Commodity Weights For
2003 (11/05/02)
Goldman Sachs Inc. has announced the 2003 composition and weights for the
Goldman Sachs Commodity Index (GSCI®) trading on Chicago Mercantile Exchange
Inc. (CME). The first futures contract to be affected by the change is the
February 2003 contract to be listed for trading on CME on Nov. 18, 2002.
http://www.cme.com/news/shownews.cfm?NewsItem=0003E4FD-0F6C-1DC8-884B80EDBEFB0000
October
2002 - Euronext key indicators
http://www.euronext.com/en/euronext_org/news/press_releases/news.jsp?news.id=13856&lang=EN&isin="etype=STOCKQUOTE
Deutsche
Börse Acquires Stake in Infobolsa
http://deutsche-boerse.com/cgi-bin/framez.exe?FS@/INTERNET/EXCHANGE/ex_news.nsf/HTMLSeitenE/SIDEBAR+-+WhatsNew?openDocument@/INTERNET/EXCHANGE/ex_news.nsf/WebMaskenformelnEnglish/438AFEB6ABC5D47EC1256C690
NYBOT’s
Coffee Options Contract Sets New Open Interest Record
http://www.nybot.com/pressRelease.asp?releaseID=500
Commodity
Risk - Goldman Revises Composition For One Of Its Benchmark Indexes
Goldman Sachs has
announced the 2003 composition and weights for the Goldman Sachs Commodity
Index (GSCI) trading on Chicago Mercantile Exchange (CME).
http://www.garp.com//newsfeed.asp?Category=6&MyFile=2002-11-06-5735.html
Media Advisory - UBC & the Canadian Foundation for Investor
Education Team up to Host International Symposium on Risk Capital in Canada
http://www.tse.com/en/mediaNews/newsreleases/news3425.html
Exchange to market new data services
http://www.londonstockexchange.com/newsroom/releases/06-11-02.asp
Regulatory
News
CFMA
Skeptic Erickson Leaves the CFTC
http://www.hedgeworld.com/news/read_news.cgi?section=dail&story=dail8715.html
NASD
To Provide Arbitration Training Online
http://www.nasdr.com/news/pr2002/release_02_059.html
The
SEC News Digest
http://www.sec.gov/news/digest/11-05.txt
SEC
Hunts for a Successor to Harvey Pitt
WASHINGTON (Reuters) - The search begins on Wednesday for a new head of the
U.S. Securities and Exchange Commission ...
http://news.lycos.com/news/story.asp?section=Breaking&storyId=560475
A
new Investor Alert about account statements has been posted to the Site.
(11/05/02)
http://www.nasdr.com/alert_bearmarket.htm
SEC
Files Additional Fraud Charges Against WorldCom
The Securities and Exchange Commission yesterday filed an amended complaint
against WorldCom Inc.
http://www.garp.com//newsfeed.asp?Category=6&MyFile=2002-11-06-5738.html
Goodbye,
Mr. Pitt - Commentary: SEC Chief's ouster wipes out last of trust
http://cbs.marketwatch.com/news/story.asp?guid=%7BE3A7C196%2D2C0B%2D4D34%2DB66F%2D2F696008638B%7D&siteid=
SEC's Inquiry of IPO 'Laddering' Marks Goldman, J.P. Morgan (Dow Jones)
... enforcement staff of the Securities and Exchange Commission ( news - web
sites) has notified Goldman Sachs Group Inc. (NYSE: GS - News) that it has
recommended filing civil securities- fraud...
http://story.news.yahoo.com/news?tmpl=story&u=/dowjones/20021106/bs_dowjones/200211060331000243
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
Penson
Worldwide, Inc. has Hired Peter Wind as Senior Vice President
Dallas, November 5, 2002: Penson Worldwide Inc. is pleased to announce that it
has hired Peter Wind as Senior Vice President.
Mr. Wind recently retired from Cargill Investor Services in Chicago after 30
years of service. Peter joined the Cargill organization in 1972 as a trainee
and held a variety of trading and management positions before joining Cargill
Investor Services in 1975. Most recently he served as Senior Vice President,
Global Financial Markets.
http://www.integratedtrading.com/pr1.htm
Exchanges
report higher volumes; new software lets hacked database heal itself
http://www.eyeforchem.com/index.asp?news=33259&ch=&nli=og-c
Top
OTC Brokers Form Energy Broker Association (PR Newswire)
An unprecedented initiative was launched today to assist the energy trading
industry with addressing current issues and enhancing the energy markets. Seven
of the top Over-the-Counter energy brokers announced the formation of the
Energy Brokers Association, a trade association recently incorporated in
Washington, D.C.
http://biz.yahoo.com/prnews/021105/nytu111_1.html
Spectron
Launches Weather Derivatives Electronic Marketplace Using TradeCapture Software
(Business Wire)
Spectron Group, a leading independent intermediary in the global energy
markets, today announced that they have launched an electronic marketplace to
trade weather derivatives using TradeCapture's B2B Exchange Tools software
http://biz.yahoo.com/bw/021105/52160_1.html
OM
Announces North American Launch of New Energy Marketplace Solution (PR
Newswire)
... set of field-proven modular subsystems and designed to provide an efficient
and easy-to-use trading platform for today's energy demands.......As a global
owner and operator of exchanges for more than 17 years, OM understands the
important role of configurable systems,......An expert in market development,
OM is both a systems solutions developer, and an exchange owner and
operator....... innovator that developed the first day ahead electricity spot
exchange and the first commodities future exchange....
http://biz.yahoo.com/prnews/021106/law043_1.html
OM
Launches Next Generation CLICK™ Marketplace Solution
http://domino.omgroup.com/www/OMBulletinBoard.nsf/OMPortalNewsRef/B2B96837B8B7A789C1256C69002FF9E0?OpenDocument
OM
Launches Trading Solutions for Small and Medium-Sized Marketplaces
http://domino.omgroup.com/www/OMBulletinBoard.nsf/OMPortalNewsRef/76028C009DDA8B7D80256C69003A9848?OpenDocument
Single-Stock
Futures Open New Markets
http://www.refco.com/pr_20021104.html
2002
Election Results: What They Mean for the Markets? Schwab Capital Markets L.P.
Washington Research Group 33rd Annual Symposium
http://www.businesswire.com/cgi-bin/cnn-storydisplay.cgi?story=/www/bw/webbox/bw.110602/223100023.htm&textcolor=%23000000&bgcolor=%23FFFFFF&linkcolor=
Merrill
Lynch Cuts 400 Jobs (AP)
Merrill Lynch & Co. is cutting about 400 jobs in its private client group,
citing the weak economic environment.
http://story.news.yahoo.com/news?tmpl=story&u=/ap/20021105/ap_on_bi_ge/merrill_lynch_cuts_1
Tainted
Wall Street turns to advertising (FT.com)
...Some online brokers, such as Charles Schwab, have launched ad campaigns that
portray Wall Street analysts and brokers as corrupt,...
http://biz.yahoo.com/ft/021105/1035873019183_1.html
Edward
Jones focuses on one broker, neighborhood office format
Paul Koch is on his way to becoming an investment broker — a career change he
made after 20 years in the insurance industry. He recently went through
training to become an investment representative for Edward Jones.
http://clickit.go2net.com/search?cid=239151&site=srch&area=srch.comm.fast_news&shape=textlink&cp=info.xcite&rawto=h
ttp://www.greenbaypressgazette.com/news/archive/biz_6731058.shtml
Short-term
mindset a natural response
SINGAPORE - The recent debate over quarterly reporting has highlighted the
increasingly short-term outlook of players in the local stock market - a trend
most would agree has negative connotations.
http://business-times.asia1.com.sg/companies/story/0,2276,62882,00.html
John's
Comments
There is so
much news, I don't know where to start. Let me start with David Vitale
leaving. Mr. Vitale served the CBOT very well during his short term as
President. He brought in some very good people to key positions and
helped the CBOT right its economic situation. I am appreciative of his
contributions to the CBOT and the industry as a whole and wish him well in his
future endeavors.
Actually, I
would like to throw his name into the ring for consideration as SEC
Chairman. There is precedent for former CBOT Presidents moving to
regulatory roles and being very successful in them, with National Futures
Association President Robert Wilmouth being the example.
I think Mr.
Vitale's experience heading the CBOT, being a top banker and his non-Beltway
experience would be a good combination for the needs of the marketplace.
We need someone free from the conflicts that confronted the former SEC Chairman
and has a good understanding how the markets work. Mr. Vitale meets that
description and offers someone whose understanding of the markets bridges
the futures, options and securities industries. With these industries
converging, this experience and perspective would be invaluable.
David
Vitale would help the public regain trust in the markets and I believe is
worthy of consideration for this position. Someone please tell the Whitehouse
I said so.
**********
It has been
my pleasure to know Bernard Dan since he assumed his position as Executive Vice
President of the CBOT. I think his selection as the President of the
CBOT, succeeding Mr. Vitale, is an inspired one and I congratulated the CBOT
Board of Directors for turning to Mr. Dan.
I don't
always agree with Bernie, as he is called by his friends and associates.
But I respect him immensely and even more important, I trust him. I trust
that he will put his tremendous energies into making the CBOT the best
exchange it can be, in whatever form that is. I trust him as a leader,
and as a listener. As a former "Customer's Man" as President
and CEO of Cargill Investor Services, I know he can balance the needs of the
customers and the needs of the exchange membership.
I don't
know how things are going to turn out at the CBOT, given the tremendous change
occurring in the futures and securities industry, but I feel good about the
CBOT knowing that Bernie Dan is its President.
Anyone know
where I can get a "In Bernie I Trust" button?
*********
Congratulations
to Mr. Dan's long time CIS association Peter Wind for being hired by Penson
Worldwide.
********
Oak Trading
Systems and Iowa Grain held a demonstration of their new Oak, Level II
trading platform. All I have to say is what I told a reporter for Futures
Magazine at the event, "John Walls ( the developer of Oak) is one of the
smartest people in the futures industry I know and he has built a great
complete trading system."
*********
I take
exception to a sentence in a Financial Times story about David Vitale's
departure from the CBOT. In the story, Jeremy Grant of the Financial
Times wrote "The CBOT hired Mr Vitale, a former banker at
Chicago-based Bank One, to help speed moves away from being run solely in its
members’ interests."
As a
customer of the CBOT, and representative of other customers of the CBOT, I
would never trade on any exchange that is "being run solely in its
member's interests." And I can't think of anyone I know who would
either. The CBOT may be a member run organization, but if they were not
considering their customers' needs at all, they would not exist. It takes
two people who both think they are getting the better of the deal to make a
trade, not one.
Running a
successful exchange means managing the many different groups of interests and
the CBOT has balanced those interests very well for a very long time.
That does
not mean everyone will be happy, but the success and longevity of the CBOT and
its record of integrity and innovation speak well to its balancing the many
interests. And this is an ongoing process that will ebb and flow, just
like the markets.
Regards,
John J. Lothian
President
Electronic
Trading Division
The Price
Futures Group, Inc.
Chicago
Board of Trade Building
141 West
Jackson Blvd., Suite 1340A
Chicago,
IL 60604
Ph:
1-800-713-0215 or 312-648-2426
Fax:
312-902-6437
email: jlothian@pricegroup.com
URL: www.pricegroupetd.com or www.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.