John Lothian's Daily Futures & Securities Industry Newsletter
November 15, 2001
Lead
Stories
Nasdaq
Reports Third-Quarter Net Income of $7.9 Million (PR Newswire)
...-- U.S. Securities and Exchange Commission (SEC) approved SuperMontage,
Nasdaq's order display window.......-- Nasdaq and the London International
Financial Futures and Options Exchange (LIFFE) created a partnership to develop
a single-stock futures market.......-- Nasdaq completed the successful
implementation of decimals trading....... same time continuing to invest and
build in the initiatives that are important to Nasdaq's future.''...
http://biz.yahoo.com/prnews/011115/hsth014_1.html
SEC
Grants Extension of Time on NASDAQ'S Exchange
Registration Application
http://www.sec.gov/news/press/2001-135.txt
Instinet Poised To
Reclaim Its Stake (Forbes.com)
... share fell to
about 13.5% in recent weeks, from 15% in August, with competition from rival
ECN and Nasdaq's SuperSOES system, which was introduced in July,..
http://biz.yahoo.com/fo/011115/1115bigcap_1.html
Hedge
fund manager Berger ordered to repay $20 mln-SEC (Reuters Securities)
Federal securities regulators said on Wednesday that a New York judge had
ordered Michael Berger, the former investment manager of the Manhattan
Investment Fund hedge fund, to pay $20 million in a case accusing him of hiding
millions of dollars in losses.
http://biz.yahoo.com/rf/011114/n14187491_1.html
New
US commodity indices face off in crowded field (Reuters Securities)
... the Dow Jones-AIG Commodity Index (DJ-AIGCI) futures contract for
electronic trade on CBOT's a/c/e platform...
http://biz.yahoo.com/rf/011115/n15343165_1.html
Single-stock
futures venture is named OneChicago (Reuters Securities)
Chicago's three-exchange venture on single-stock futures has now been given the
formal name of OneChicago, LLC, its Chairman and Chief Executive William Rainer
said on Wednesday.
http://biz.yahoo.com/rf/011114/n14535063_1.html
EXCHANGE
SETS RECORD FOR OVERNIGHT TRADING
http://www.nymex.com/news/pr_detail.cfm?id=405
IPE
Brent Crude futures contract sets new electronic trading record
http://ipemarkets.com/w1/news/2001/011114.php
Cotton
and FCOJ Restore Post Close Trading Sessions
http://www.nybot.com/pressRelease.asp?releaseID=333
Transaction
Fee Waiver, Dow Jones-AIG Commodity Index Futures - 11.14.2001
The Board of
Directors has waived the transaction fees applicable to member and delegate
trades in CBOT Dow Jones-AIG Commodity Index futures for the 3-month period
beginning Nov. 16, 2001.
http://www.cbot.com/cbot/www/cont_detail/0,1493,10+24+268+5047,00.html
CBOT®
X-Funds Futures to Be Launched February 1, 2002 - 11.14.2001
CBOT X-Fund futures
will enable rapid entry into a low-cost futures index product that provides
enhanced leverage, market transparency, and creative trading opportunities.
CBOT
to unveil X-Funds futures index product in Feb (Reuters Securities)
The Chicago Board of Trade said on Wednesday that it will launch CBOT X-Funds,
a new futures index product on Feb. 1, 2002,
pending regulatory approval .
http://biz.yahoo.com/rf/011114/n14587888_1.html
Chicago
Single-Stock Futures Joint Venture Selects Name - 11.14.2001
Appoints Peter F. Borish as Senior Managing Director of Business Development.
http://www.cbot.com/cbot/www/cont_detail/0,1493,10+24+109+5048,00.html
CHICAGO
SINGLE-STOCK FUTURES JOINT VENTURE SELECTS NAME; Appoints Peter F. Borish as
Senior Managing Director of Business Development (11/14/01)
OneChicago, LLC will be the name of the recently formed joint venture of the
Chicago Board Options Exchange® (CBOE®), Chicago Mercantile Exchange Inc. (CME)
and Chicago Board of Trade (CBOT®), the joint venture’s Chairman and Chief
Executive Officer William J. Rainer announced today.
http://www.cme.com/news/shownews.cfm?NewsItem=000912CB-C929-1BF2-9DE080EDBEFB0000
CHICAGO
SINGLE-STOCK FUTURES JOINT VENTURE SELECTS NAME; Appoints Peter F. Borish as
Senior Managing Director of Business Development
CME
Open Interest in Eurodollar Options Surpasses 10 Million Mark as Electronically
Traded Foreign Exchange Futures Reach New Volume High (11/14/01)
For the first time
yesterday, Nov. 13, open interest in options on Eurodollar futures traded on
Chicago Mercantile Exchange Inc. (CME) surpassed the 10 million mark with
10,007,606 positions.
http://www.cme.com/news/shownews.cfm?NewsItem=000747FA-D73C-1BF2-9DE080EDBEFB0000
Exchange
News
CME REVISES
MONTH-END SETTLEMENT FOR EQUITY INDEXES, RETURNING TO REGULAR 3:15 P.M.
(CENTRAL TIME) CLOSE WITH ‘FAIR VALUE’ SETTLEMENT
CHICAGO,
Nov. 15, 2001 — Chicago Mercantile Exchange Inc. (CME) will revise its
month-end settlement procedures for equity index products beginning Nov. 30,
returning the products to their normal daily closing time of 3:15 p.m. (Central
Time). CME will continue to employ
a “fair-value” settlement procedure for domestic equity index futures contracts
on the last trading day of every month.
The revision, at the request of market
participants, returns the close to the same time each day—15 minutes after the
close of the cash market. The daily
settlement prices for domestic stock index futures and options at the end of
the month will be determined on the basis of their fair value relative to the
daily close of the underlying cash index as reflected at 3:15 p.m. (Central Time).
All of CME's domestic stock index futures
and options will continue to settle according to the month-end fair value
procedure, including the S&P 500, E-mini S&P 500, Nasdaq 100, E-mini
Nasdaq 100, S&P/BARRA Growth, S&P/BARRA Value, S&P MidCap 400,
Russell 2000, E-mini Russell 2000 and FORTUNE e-50 indexes.
Fair values are determined by a survey of market participants conducted
by exchange staff. Settlement
prices are made available shortly after the close. Fair value represents an
“arbitrage free” level at which futures theoretically should be priced in
relation to cash index values in the absence of transaction costs, although
this is not necessarily the level where they will trade. Fair value is typically calculated as a
function of the cash or spot index value, plus financing charges, less any
dividends that would accrue with the purchase and carry of all index
constituents until the final futures settlement date. Many financial news media regularly publish estimates of
fair value for stock index futures contracts.
CBOT
Dow Jones-AIG Commodity Index Futures - 11.14.2001
See the attached document for salient features of the CBOT Dow Jones-AIG
Commodity Index futures that will begin trading Friday, Nov. 16, 2001 at 8:15
a.m.
http://www.cbot.com/cbot/www/cont_detail/0,1493,10+24+268+5039,00.html
Pacific
Exchange Adds Twenty-Seven Options To B-D Auto-Ex Program
http://www.pacificex.com/about/press-2001/abt_press_01_bd-auto-ex-adds27.html
International
Securities Exchange Announces New Vice President
http://www.iseoptions.com/download/nov14_newvice.pdf
Nominations
invited for best websites for Investor Relations
http://www.londonstockexchange.com/press/releases/15-11-01.asp
SGX
AND ASX COMMENCE 'LIVE' BROKER-PILOT TEST FOR CO-TRADING LINK
Regulatory
News
The
SEC News Digest
http://www.sec.gov/news/digest/11-14.txt
Reports
Bond
Talk Today's Events
http://www.bondtalk.com/global.cfm?S=todaysevents
Reports
released November 15, 2001
http://www.usda.gov/nass/PUBS/TODAYRPT/TODAY.HTM
Miscellaneous
News
Knight
Financial Products Acquires Specialist Rights From Gateway Partners (PR
Newswire)
Knight Financial Products LLC, a subsidiary of Knight Trading Group, Inc.,
today announced that it has acquired Gateway Partners LLC's specialist rights
in 36 option classes at the American Stock Exchange and 61 at the Philadelphia
Stock Exchange.
http://biz.yahoo.com/prnews/011114/nyw038_1.html
Sutton
Trading Solutions Inc. Signs Agreement With Omiris Networks for Cross-Border
Trade Routing (Business Wire)
Sutton Trading Solutions, Inc.,, announced it has entered into a strategic
relationship with Omiris Networks, headquartered in London. Under the terms of
the agreement, Omiris will provide access to over 22 European stock exchanges
to clients of Sutton Trading Solutions using the GlobalDAT(TM) Direct Access
platform, designed and developed by Sutton Data Services, a wholly owned
subsidiary of the Company.
http://biz.yahoo.com/bw/011114/142242_1.html
Summit
Integrates NumeriX's Industry-Leading Analytics Engine, CrossAsset(TM), for Cutting
Edge Analytics Pricing (Canada NewsWire)
...The NumeriX CrossAsset analytics engine-seamlessly integrated with Summit
trading and analytic applications-provides sophisticated calibration,......We
look forward to working with NumeriX in the future and offering additional
leading-edge capabilities on a single,...... and to hedge and manage the
trading risk of interest rate, foreign exchange, equity and credit
portfolios....
http://biz.yahoo.com/cnw/011115/ny_numerix_summitsys_1.html
Knight
Releases October Volume Statistics (PR Newswire)
Knight Trading Group, Inc. has released its volume statistics for the month of
October.
http://biz.yahoo.com/prnews/011114/nyw044_1.html
Europe's
Largest Online Brokerage Company Selects MicroStrategy to Enhance Customer
Relations through Personalized Services (PR Newswire)
...About Fineco Fineco, the first European online trading operator, offers
trading services on the principal European and U.S. markets and
banking,......``forward- looking statements,'' including its estimates of
future business prospects or financial results and statements containing the
words ``believe,...... in the Company's registration statements and periodic
reports filed with the Securities and Exchange Commission....
http://biz.yahoo.com/prnews/011114/dcw052_1.html
ISDA
AND FpML.org ANNOUNCE INTEGRATION OF FpML, THE ELECTRONIC OTC DERIVATIVES
PROCESSING STANDARD
http://www.isda.org/press/press111401.html
Fund
Managers Still Display Much Faith In Equity Markets - But Will It Make Money?
Fund
managers around the globe are still displaying much bravado in professing
adherence to cyclical stocks, but Merrill Lynch questions whether this is maybe
convenience philosophy for the time being.
http://www.garp.com//newsfeed.asp?Category=6&MyFile=2001-11-15-4006.html
Managing
Corporate Risk When Hopes Of A V-Shaped Recovery Dash
As chances
are fading of a V-shaped recovery in the U.S., Europe and Japan, what are risk
managers’ chances to make the most of their circumstances on the supply
management side?
http://www.garp.com//newsfeed.asp?Category=6&MyFile=2001-11-15-4007.html
Forrester:
E-Business = Productivity, Line56
MERRILL
LYNCH, METRO SAVINGS BANK ANNOUNCE DONATION OF 10 HOME LOTS TO ORLANDO HABITAT
FOR HUMANITY
http://www.ml.com/about/press_release/11142001-1_metro_savings_pr.htm
MERRILL
LYNCH SURVEY SHOWS FUND MANAGERS ARE MOVING EXCESS CASH INTO EQUITIES
http://www.ml.com/about/press_release/11132001-1_ml_survey_pr.htm
Excel
signs letter of intent to acquire Taylor Companies
http://www.cargill.com/today/releases/01_11_14excel.htm
Henry
Blodget Leaving Merrill Lynch (AP)
Internet stock guru Henry Blodget has decided leave Merrill Lynch & Co.,
taking advantage of a buyout the Wall Street giant offered to nearly 50,000
workers.
http://dailynews.yahoo.com/h/ap/20011115/bs/merrill_lynch_blodget_3.html
Merrill
declines comment on staff cut report (Reuters Securities)
Wall Street firm Merrill Lynch & Co Inc said late on Tuesday that it had no
overall targets for job cuts and declined comment on a news report that it was
firing 15 percent of its investment banking staff.
http://biz.yahoo.com/rf/011114/sp217816_1.html
eSpeed's Lutnick gets $1 mln in FY2000 compensation (Reuters
Securities)
Howard Lutnick, head of the bond trading firm Cantor Fitzgerald crippled by the
World Trade Center collapse, earned $1 million in compensation last year as
chief of his electronic trading arm eSpeed, a U.S. regulatory document filed on
Wednesday showed.
http://biz.yahoo.com/rf/011114/n14121348_2.html
SunGard
wins court ruling in Comdisco antitrust suit (Reuters Securities)
A federal court swatted down the Justice Department's bid to block SunGard Data
Systems Inc.'s acquisition of a unit of Comdisco Inc., Sungard said on
Wednesday.
http://biz.yahoo.com/rf/011114/n14115242_1.html
John's
Comments
Dow Jones
Newswires reported a CBOT trader was fined $25,000 for fraud and dishonest
conduct, and ordered to pay $9,310 in restitution. The trader was also
suspended from the CBOT trading floors for 90 days.
Now even
though the CBOT posted his name and Dow Jones included it in the story, I am
not going to mention it. I don't know the person, or the story behind the
fine.
The notice
to members and non-members for such a fine is normally posted on the bulletin
board of the trading floor, so it is up to news reporters with floor access
to find the notices and write up the story. One wonders how this
will be handled in the future when there is no trading floor. Perhaps it
is time to update the manner these issues are disclosed and put them on
the exchange(s) web site(s). I would think that would add
to the deterrent factor and encourage the lawful and honorable conduct
the vast majority of members display day in day out and with
each and every trade. This is an anachronism of the exchange as a big
club mentality, not the type of public posture for a for-profit corporation.
*******
The Price
Group is getting ready to launch the Trading Strategies 101 education web site
and I am looking to put this site through one more rigorous test. We
believe we have completely debugged the course and found all the programming
errors. To test that, I am willing to give 10 people a free tuition to
the course if they will thoroughly test the course in the next two weeks.
I will give the tuition to the first 10 people who email me about this.
As an added
bonus, Rich Asplund of Optima Financial Research, Inc, the company that
produced the course, is willing to pay $25 for each programming mistake found
up to a total of $100. Again, the mistakes must be emailed to me in
detail and we will only pay one one programming mistake once. So the
first one who finds the error is the one who gets the $25.
Here is
your chance to help us test our educational site, bone up on technical analysis
and trading system development, and potentially earn $100. The site is www.tradingstrategies101.com.
*******
The Joint
Venture Singles Stock Futures Exchange in Chicago, OneChicago, LLC, has a
big job ahead of it to build brand recognition for what is a rather plain name.
Day 2 of them not having a single web page up. This will be a tough job.
*******
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.