April 12, 2005

 

Lead Stories

 

NYSE charged with failing to police specialists

Agrees to settlement with SEC

The Securities and Exchange Commission settled an enforcement action against the New York Stock Exchange Inc., finding that the exchange, over the course of nearly four years, failed to police specialists, who engaged in widespread and unlawful proprietary trading on the floor of the NYSE.

http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=28408&IdSection=8&cat=8

 

Charges Filed Against 15 NYSE Specialists

NEW YORK -- Fifteen specialists who managed trades on the floor of the New York Stock Exchange were indicted Tuesday, charged with using their inside positions to earn an estimated $20 million in illicit profits for themselves and their firms.

http://www.newsday.com/business/ats-ap_business13apr12,0,2785972.story?coll=ny-business-leadheadlines

 

Feds Indict Former, Current NYSE Traders

Federal prosecutors charged 15 former and current New York Stock Exchange floor traders with securities fraud, accusing them of costing investors $19 million by putting their firms' interests ahead of the interest of investors.

http://news.yahoo.com/news?tmpl=story&u=/nm/20050412/bs_nm/financial_nyse_dc_5

 

SEC Institues Enforcement Action Against 20 Former New York Stock Exchange Specialists Alleging Pervasive Course Of Fraudulent Trading - Respondents Include Two Former Ceos Of Spear Leeds & Kellogg Specialists And Four Former Members Of Van Der Moolen Specialist' Management Committee

http://www.exchange-handbook.co.uk/news_story.cfm?id=52347

 

SEC Charges The New York Stock Exchange With Failing To Police Specialists - NYSE Agrees To Settlement With SEC, Including Censure, Cease And Desist Order, $20 Million Fund For Regulatory Auditor, And Audio-Video Surveillance

http://www.exchange-handbook.co.uk/news_story.cfm?id=52346

 

SEC institutes enforcement action against 20 former New York Stock Exchange Specialists alleging pervasive course of fraudulent trading

http://www.sec.gov/news/press/2005-54.htm

 

SEC charges the New York Stock Exchange with failing to police specialists

http://www.sec.gov/news/press/2005-53.htm

 

New York Stock Exchange Statement Regarding the SEC’s Censure

The NYSE issued the following statement in response to the SEC's censure of the NYSE for failing to properly detect, investigate and discipline improper Floor trading practices from 1999 to 2002.

http://www.nyse.com/content/articles/1113302993005.html

 

NYSE Regulation Charges 17 Former Specialist Members with Securities Fraud

The charges, which were issued by the Enforcement division, were the result of investigations conducted in conjunction with the US Attorney’s Office and the SEC.

http://www.nyse.com/press/1113302993163.html

 

Wall St. CEOs paid like princes

http://www.newsday.com/business/ny-bzpay0412,0,680360.story?coll=ny-top-headlines

 

Falling Fortunes of Wage Earners

Wages for the average American worker fell last year, after adjusting for inflation - the first such drop in nearly a decade.

http://www.nytimes.com/2005/04/12/business/12wages.html

 

IPE Screen Volumes Robust For 2nd Day, But Nymex Gaining 

NEW YORK (Dow Jones)--In its second full day of screen trade, London's International Petroleum Exchange succeeded in holding onto normal-range volumes and liquidity, but the Dublin volumes of its main rival, the New York Mercantile Exchange, posted sharp gains.  While Nymex's Dublin trading floor didn't make much of a dent in the IPE's business, its volume equated nearly 20% of the IPE's volume Monday, highlighting Nymex's threat as a competitor.

http://news.morningstar.com/news/DJ/M04/D11/200504111914DOWJONESDJONLINE000726.html

 

NYMEX Europe Sets Brent Crude Oil Daily Volume Record

NEW YORK, N.Y., April 12, 2005 — Brent crude oil futures trading set a daily volume record yesterday when 18,374 contracts were traded on the NYMEX Europe Dublin trading floor. The previous daily record of 16,427 Brent crude futures contracts traded was set on November 19, 2004.  Exchange President James E. Newsome said, "We are gratified by the increased interest expressed in the Brent crude oil futures contract by the trading community. The first few days of trading after the cessation of open outcry in London will be critical. We strongly believe that the petroleum markets are best suited to open outcry trading and we want energy market participants to know that we are in this venture for the long haul."

http://www.nymex.com/jsp/news/press_releas.jsp?id=pr20050412a

 

Euronext.liffe adds 3 hrs to 3-mth Euribor futures contract trading period

LONDON (AFX) - Euronext.liffe, the derivatives business of Euronext NV, said that from Monday June 27 the trading hours in the three-month Euribor futures contract will be extended by three hours to 9 pm UK time. ...

http://uk.biz.yahoo.com/050412/323/fg58a.html

 

CME Announces Weekly Expirations for CME Eurodollar One-Year Mid-Curve Options

http://www.cme.com/about/press/cn/05-50midcurveweekly12839.html

 

Three Indicted on Terror Charges in U.S. 

WASHINGTON (AP) -- Three men have been indicted on charges they plotted to attack financial institutions in New York, New Jersey and Washington.

A four-count indictment unsealed Tuesday accuses Dhiran Barot, Nadeem Tarmohammed and Qaisar Shaffi of scouting the New York Stock Exchange and Citicorp Building in New York, the Prudential Building in Newark, N.J., and the International Monetary Fund and World Bank in the District of Columbia.

http://news.lycos.com/wired/story.asp?section=Breaking&storyId=1017784

 

Environmental Trading News

 

TSX Presents ‘On the Radar’: Alternative Energy

http://www.tse.com/en/mediaNews/newsreleases/news8703.html

 

Exchange News

 

CBOT Strike Price Notice, April 12, 2005

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+27579,00.html

 

CBOT Trading Position Change Notice,Soybean Oil, April 13, 2005

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+27580,00.html

 

E-CBOT Dow Jones Strike Price Notice, April 12, 2005

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+27578,00.html

 

Agricultural Options Exercises and Expirations

The deadline for exercises, and automatic exercise cancellation, of May 2005 Corn, Oat, Rice, Soybean, Soybean Meal, Soybean Oil and Wheat futures options is 6:00 p.m. Friday, April 22, 2005. 04.12.2005

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+27581,00.html

 

Dow Jones Industrial Average Index Futures Options Expiration

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+27583,00.html

 

2nd Quarter 2005 Eligible Stocks

http://www.cme.com/clearing/clr/clradv/12832.html

 

ISE Weekly Listings

http://phx.corporate-ir.net/phoenix.zhtml?c=176358&p=irol-newsArticle&ID=694286&highlight=

 

Deutsche Börse Announces Agenda for 2005 AGM

Calls on shareholders to register support for ongoing efforts to enhance shareholder value/Repeats call for TCI cooperation with orderly Board transition in 2006

http://deutsche-boerse.com/dbag/dispatch/en/listcontent/gdb_navigation/press/10_Latest_Press_Releases/Content_Files/13_press/pm_news_120405.htm

 

Deutsche Börse to Begin Share Buyback on Wednesday

http://deutsche-boerse.com/dbag/dispatch/en/listcontent/gdb_navigation/press/10_Latest_Press_Releases/Content_Files/13_press/pm_news_110405_aktienrueckkauf.htm

 

LEAP Conversion Schedule for All Cycles

http://www.cboe.org/publish/InfoCir/IC05-043.pdf

 

Regulatory News

 

The SEC News Digest

The SEC News Digest provides daily information on recent Commission actions, including enforcement proceedings, rule filings, policy statements, and upcoming Commission meetings.

http://www.sec.gov/news/digest/dig041105.txt

 

NFA announces Member meeting in New York

NFA will hold the next in its series of "Issues and Answers" Member meetings on Tuesday, May 3, in New York City. The meeting will be held from 2:00 p.m. to 4:00 p.m. at the Embassy Suites, 102 North End Avenue.

http://www.nfa.futures.org/member/indexUpcoming.asp

 

OSC approves settlement with ex-ATI investor relations officer

Chang, spouse to pay $1.5 million to settle insider trading charges

http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=28404&IdSection=8&cat=8

 

OSC sets goals for 2005

Improved enforcement, focus on the retail investor among priorities

http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=28391&IdSection=14&cat=14

 

SEC Exempts Vanguard Shares From 'Tick' Requirement

The Securities and Exchange Commission has informed mutual fund giant The Vanguard Group that the SEC is exempting the firm's VIPER shares from Rule 10a-1 of the Securities Exchange Act of 1934. The rule, according to the agency, is designed to prevent the market price of a stock or other reported security from "being manipulated downward by unrestricted short selling."

http://www.compliancereporter.com/default.asp?page=1&SID=494727&ISS=14042&pressbox=1

 

Mamma.com SEC Probe Becomes Formal

Internet search engine Mamma.com Inc. said Tuesday that the Securities and Exchange Commission has upgraded its inquiry into alleged stock manipulation at the company last year to a formal investigation.

http://biz.yahoo.com/ap/050412/mamma_com_sec.html?.v=2

 

SEC Investigating Mamma.com

The Net search engine indicates there may be disclosure and financial control issues.

http://www.thestreet.com/_tscrss/tech/internet/10217086.html

 

**** Not to be outdone, the CFTC is reportedly investigating www.applepie.com.

 

Broker-Planner Dispute May Wind Up In Congress

Last week the Securities and Exchange Commission for the first time conceded there may be no end to the bitter fight between brokers and financial planners except by turning the whole issue over to Congress to resolve--normally a last resort for the SEC.

http://www.institutionalinvestor.com/default.asp?page=1&SID=494811&ISS=13937&type=14

 

Managed Futures - Managed Funds

 

Report sees emergence of 'two-tier hedge fund world'

Apr-11-2005 - Investit Intelligence, the research arm of Investit Ltd, a London-based consultancy to the fund management industry, predicts the emergence of a "two-tier hedge fund world" as the market's demand for mixed long-only and hedge-fund-style management grows.

http://www.marhedge.com/news/Cover.Hedge.asp?s=HedgeH-2005-04-11-15-54-37p1.htm

 

Leading Finnish pension eases into commodities

Apr-12-2005 - Ilmarinen Mutual Pension Insurance Co has made an initial investment in commodities

http://www.marhedge.com/news/Cover.MAR.asp?s=MARH-2005-04-12-08-36-06p1.htm

 

PrivateRaise.com Announces New Hedge Fund Analytics Information Service

PrivateRaise.com®, the award-winning source for information and analytics for equity private placements, announced today it will expand its coverage to the hedge fund marketplace.

http://biz.yahoo.com/prnews/050412/sftu094.html?.v=6

 

Man Group says AHL fund NAV down 0.65 pct wk-on-wk

LONDON (AFX) - Man Group PLC said that at the close of business on April 11, the net asset value of AHL Diversified Futures Ltd was 22.99 usd, ...

http://uk.biz.yahoo.com/050412/323/fg6ic.html

 

Liechtenstein's Prince Helps Lure $2.5 Billion to Hedge Funds

April 12 (Bloomberg) -- Liechtenstein's Prince Hans-Adam II made his first foray into hedge funds by investing in Long-Term Capital Management LP. Instead of retreating when LTCM collapsed in 1998, his family firm, LGT Capital Partners, put $2.5 billion more into such funds -- including money from outside investors.

http://www.bloomberg.com/apps/news?pid=10000100&sid=aZb8tZAL9GWA

 

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

 

Making Money With Technology

A key to saving dollars in the trading room. Desktop consolidation, multi-broker access and more cos

http://www.tradersmagazine.com/column.cfm?id=229

 

Citadel Expands Services To Trade Execution

Citadel Execution Services, the broker-dealer an affiliate of high-flying hedge fund Citadel Investment Group, has hired Andrew Kolinsky, formerly senior v.p. marketing and head of broker-dealer sales at Knight Trading Group, in a new post as head of sales and client services as the broker-dealer expands into executing stock orders this year.

http://www.institutionalinvestor.com/default.asp?page=1&SID=494809&ISS=13937&type=13

 

Letter to Morgan Stanley board

The group of eight dissident Morgan Stanley shareholders challenging the leadership of Phil Purcell on Monday sent the following letter to the board of Morgan Stanley:

http://news.ft.com/cms/s/e1148b18-aabd-11d9-98d7-00000e2511c8.html

 

8 Dissidents at Morgan Seek Meeting With Board

The eight dissident executives fighting for control of Morgan Stanley submitted a third letter to the firm's directors yesterday, asking for a meeting to discuss their criticism of the chief executive, Philip J. Purcell.

http://www.nytimes.com/2005/04/12/business/12wall.html?adxnnl=1&adxnnlx=1113314593-JfkeiKnFS1GkWQxxY4vAIQ

 

SIA Appoints Christina Martin Senior Vice President For Corporate Communications

http://www.sia.com/press/2005_press_releases/03560225.html

 

Refco Inc. Files Registration Statement for Initial Public Offering of Its Common Stock

http://www.refco.com/nr/pr.cms.asp?id=315

 

Refco files for $575M IPO

After less than a year, Thomas H. Lee Partners LP could be planning to cash out of its majority stake in Refco Inc. , the nation's leading future brokerage house.

http://www.thedeal.com/NASApp/cs/ContentServer?pagename=TheDeal/TDDArticle/StandardArticle&c=TDDArticle&cid=1112030898994&r=InFs&p=M4YD5AR2

 

Thomas H. Lee-Backed Refco Could Raise Up To $575M In IPO

NEW YORK (Dow Jones)--Thomas H. Lee is taking derivatives brokerage firm Refco Inc. public, less than a year after acquiring a majority stake in the company's subsidiary Refco Group Ltd.

http://money.iwon.com/jsp/nw/nwdt_rt.jsp?cat=USMARKET&src=704&feed=dji&section=news&news_id=dji-00051320050412&date=20050412&alias=/alias/money/cm/nw

 

Cargill Reports Third-Quarter Fiscal 2005 Earnings

http://www.cargill.com/news/news_releases/050412earn.htm#TopOfPage

 

Cargill Profit Up on Grains, Financials

Privately held Cargill Inc. said on Tuesday quarterly profit rose 35 percent amid growth in its grain, financial and industrial segments at a time of volatile prices in several markets.

http://news.yahoo.com/news?tmpl=story&u=/nm/20050412/bs_nm/food_cargill_earns_dc_1

 

Spot Gold Trading Now Available on The COESfx Electronic Currency Network

PLAINVIEW, N.Y., April 11 /PRNewswire/ -- Spot Gold can now be traded through a unique, web-based trading platform by COESfx(TM).

COESfx, the developer of the most advanced and unbiased Electronic Currency Network(TM) (ECN) for foreign exchange, now allows traders to directly trade Spot Gold live. The Bid/Ask spread is derived from banks and other financial institutions, introducing brokers and every spot gold trader on the ECN.

http://biz.yahoo.com/prnews/050411/nym157.html?.v=4

 

HedgeStreet Introduces ''Variable Hedgelets''

HedgeStreet Inc., the nation's first financial market that lets online investors trade innovative financial instruments based on future economic events, announced today the addition of a new category of financial instruments -- Variable Hedgelets -- at www.hedgestreet.com.

http://biz.yahoo.com/bw/050412/125637.html?.v=1

 

Online Trading Academy Launches International Training Center Franchise

Online Trading Academy today announced the launch of global franchising operations with the opening of training centers in Dallas and Dubai.

http://biz.yahoo.com/prnews/050412/latu060.html?.v=6

 

Ameritrade profit falls 12 per cent in second quarter as trading volume declines

OMAHA, Neb. (AP) - Online broker Ameritrade Holding Corp. said Tuesday that its second-quarter profit slipped 12 per cent as trading volume fell off sharply during the period.

http://www.canadianbusiness.com/news/article.jsp?content=b041239A

 

Web brokers saw restrained trading activity

NEW YORK -- Online brokerage firms are coming off a first quarter in which a weak stock market kept many of their do-it-yourself investor clients from stepping up their trading in a big way.

http://www.detnews.com/2005/technology/0504/12/tech-147246.htm

 

Morgan Stanley Wants Judge to Recused

Morgan Stanley on Tuesday said it will file a motion to get the judge hearing financier Ronald Perelman's claim against the investment bank to recuse herself from the case.

http://news.yahoo.com/news?tmpl=story&u=/ap/20050412/ap_on_bi_ge/morgan_stanley_sued_3

 

Morgan Stanley To Pay $435K In Improper Practice Action

Morgan Stanley has agreed to pay $435,000 to settle charges by the New Hampshire Bureau of Securities Regulation that it engaged in improper sales and business practices.

http://www.compliancereporter.com/default.asp?page=1&SID=494983&ISS=14042&pressbox=1

 

BIG FUNDS MULL FIGHT ON MORGAN

The nation's big pension funds are expected to say today whether they'll jump into the revolt to oust Morgan Stanley chief Phil Purcell.

http://www.nypost.com/business/44322.htm

 

Thomson TradeWeb Reports Record Volume for First Quarter of 2005

Thomson TradeWeb, part of The Thomson Corporation , a leading global provider of integrated information solutions to professional customers, today announced that over TradeWeb, the leading global network of online fixed- income markets, more than $9 trillion in total volume was executed by its online market participants, a 69% or $3.7 trillion increase over the volume executed during the first

http://biz.yahoo.com/prnews/050412/nytu037.html?.v=6

 

A "Hyperactive" Christos Cotsakos

The former E*Trade CEO talks about his passion, honoring Vietnam vets, and his latest brainstorm, making financial info "easy, simple"

http://www.businessweek.com/bwdaily/dnflash/apr2005/nf20050412_3871_db008.htm

 

USI Renews Core Derivatives Processing System with Rolfe & Nolan Back 

London, 12th April 2005 - UniCredito Servizi Informativi (USI, the IT company of UniCredito Banca Mobiliare) has renewed its contract with Rolfe & Nolan, signing up again for RANsys, Rolfe & Nolan’s powerful core system, together with its comprehensive and versatile general ledger and database solutions. 

http://www.rolfeandnolan.com/default.aspx.locid-0fdnew07d.htm

 

John's Comments

 

Tur what?

 

Bruce Lawrence in Pune, India reports that Tur, mentioned in stories yesterday as trading on the NCDex in India is a type of lentil bean that is a staple of the Indian diet, served at almost every meal.

 

********

 

Reminder:  CME Chicago and New York Customer Forums this week!

 

Topics:  Options, New CME Market Data Platform, Bandwidth, New Messaging Policy

 

Chicago – Today, April 12, 2005

CME Auditorium

3:30pm  Registration

4:00pm  Forum

 

New York – Thursday, April 14

Le Parker Meridian

4:30pm Registration

5:00pm Forum

 

For meeting details and to register, please go to www.cme.com/forumregistration

 

*********

 

Brent Crude Watch

 

IPE Brent Volume: 108,325

 

NYMEX Brent Crude Volume: 18,374

 

********

 

Chicago Electronic Trading Scorecard for April 11, 2005

 

Percent Electronic

 

CBOT: 61.10%

CME: 72.32%

CME Eurodollars: 78.56%

CME Live Cattle: 1.60%

CME Currency Products: 78.71%

CBOT Soybeans: 2.10%

 

CBOT Options: 1.95%

CME Options: 4.57%

 

Volume 

 

OneChicago Volume: 60,909

Eurex US Volume: 14,021

Euronext.liffe Eurodollar Volume: 42,819

CBOE Futures Exchange Volume: 399

 

Market Share

 

CBOT 100 oz. Gold Volume: 917

NYMEX 100 oz. Gold Volume: 28,598

CBOT Share: 3.11%

NYMEX Share: 96.89%

 

CBOT 5000 oz. Silver Volume: 234

NYMEX 5000 oz. Silver Volume: 18,058

CBOT Share: 1.28%

NYMEX Share: 97.72%

 

CBOT Mini Gold Volume: 608

CBOT Mini Silver Volume: 535

 

CME Emini Russell 1000 (100X) Volume: 2270

Eurex US Mini Russell 1000 (100X) Volume: 2267

NYBOT Mini Russell 1000 (50X) Volume: 58

CFE Mini Russell 1000 (100X) Volume: 0

 

CME Emini Russell 2000 Volume: 90,240

Eurex US Mini Russell 2000 Volume: 6699

CFE Mini Russell 2000 Volume: 26

 

Notes: The CME Lean Hogs traded 296 contracts on Globex yesterday.

 

Liffe Eurodollar Over-Under

 

Liffe/Globex: 6.85%

Liffe/CME: 5.46%

 

Regards,

 

John J. Lothian

Publisher

John Lothian Newsletter 

www.johnlothiannewsletter.com

 

Futures Brokerage - Business Intelligence   John J. Lothian President- Electronic Trading Division The Price Futures Group, Inc. 141 West Jackson Blvd., Suite 1340A Chicago, IL 60604 jlothian@pricegroup.com johnlothian@johnlothian.com IM: LothianJohnJ http://www.pricegroupetd.com tel: tel2: fax: mobile: +1 312-264-4350 +1 800-713-0215 +1 312-264-4399 +1 312-203-5515

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