April 14, 2005
Lead Stories
http://www.bloomberg.com/apps/news?pid=10000103&sid=aL.f0usKKd1w
CBOT membership voting on for-profit exchange plan
By Mark Skertic
Chicago Board of Trade members will finish voting Thursday on a plan that would transform the 157-year-old exchange into a for-profit company.
The move, which exchange management expects to pass, could ultimately make it possible for the Board of Trade to issue publicly traded stock.
The membership vote, which closes Thursday afternoon, will cap a five-year effort to have members consider whether to change the exchange's structure.
CBOT heads for new era with for-profit vote
CHICAGO, April 14 (Reuters) - Members of the Chicago Board of Trade vote on Thursday to change the mutually-owned No. 2 U.S. futures exchange to a for-profit company, a move that could be followed by an initial public offering.
The SEC Loses a Tough Guy
Who'll fill the shoes of departing enforcement chief Stephen Cutler? The answer may indicate the commission's future direction
http://www.businessweek.com/bwdaily/dnflash/apr2005/nf20050414_7127_db035.htm?campaign_id=rss_daily
SEC Enforcement Chief Cutler Says He Will Resign (Update2)
April 14 (Bloomberg) -- Stephen Cutler, who spearheaded the U.S. Securities and Exchange Commission's crackdown on the corporate fraud and trading scandals that rattled
http://www.bloomberg.com/apps/news?pid=10000087&sid=azYuIUHbEmU8
Trading Scandal May Strengthen Stock Exchange
A scandal can destroy an institution. Or it can renew it. The good news for the New York Stock Exchange is that the scandal that led to the indictments of people who had been extremely powerful on the floor of the exchange bears a close resemblance to the one that shook the Nasdaq stock market a decade ago.
In the Nasdaq case, the scandal forced the market to clean house at the top and to institute reforms that ended practices that had enabled brokers to systematically take advantage of their customers. The result was a far better market, one that was able to withstand the intense public scrutiny that arrived a few years later when the technology stock boom cast a spotlight on the Nasdaq.
http://www.nytimes.com/2005/04/14/business/14place.html?
NYSE Seat Sells for $1,620,000
http://www.nyse.com/press/1113388748378.html
NASDAQ's TotalView Data Product Displays More Depth, the Result of the Integration of Data From the Brut ECN
The Nasdaq Stock Market, Inc. today announced that Brut order book information is now available in TotalView, NASDAQ's premier data product.
http://biz.yahoo.com/prnews/050414/dcth031.html?.v=6
SGX, NYMEX discontinue talks on energy futures market
BSINGAPORE : The Singapore Exchange has ended talks with the New York Mercantile Exchange, or NYMEX, on a potential partnership to set up and operate an energy futures market in
No reasons were given for the breakdown in talks.
http://www.channelnewsasia.com/stories/singaporebusinessnews/view/142624/1/.html
UPDATE ON SGX-NYMEX DISCUSSION
Bill targets natural gas speculation
New legislation scheduled for introduction this week
Among other measures, the bill would require any transaction involving natural gas to be traded on a market that's regulated by the Commodity Futures Trading Commission, according to an April 5 draft copy of the legislation obtained by MarketWatch. While some natural gas trading occurs on exchanges such as the New York Mercantile Exchange, most activity currently takes place in over-the-counter markets.
Exchange Breaks Second Consecutive Volume Record for Brent Crude Oil Futures
http://www.nymex.com/jsp/news/press_releas.jsp?id=pr20050413a
Deregulation to Boost Securities Firms
... Kosdaq Stock Market and the Futures Exchange have been ... the launch of the integrated exchange will help ... enhance the competitiveness of our securities market and ...
http://times.hankooki.com/lpage/biz/200504/kt2005041418514911910.htm
Environmental Trading News
Merc weather futures find place in the sun
BY DAVID ROEDER Business Reporter
How's the weather? Pretty nice outside, and fabulous at the Chicago Mercantile Exchange.
http://www.suntimes.com/output/business/cst-fin-weather14.html
Environmental Defense Praises
(April 13, 2005 -
http://www.environmentaldefense.org/pressrelease.cfm?ContentID=4416
Exchange News
CBOT Strike Price Notice, April 14, 2005
http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+27618,00.html
Dow Jones Options Expiration
http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+27619,00.html
New Clearing Sub-Firm
Effective April 13, 2005, Cargill Investor Services will have sub-firm 858 - CIS - VTP. 04.13.2005
http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+27600,00.html
Application for Rough Rice Regularity
Southern Rice & Cotton LLC applied for rough rice regularity at the firm's
http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+27604,00.html
CME Weather Derivatives Establish New Records
http://www.cme.com/about/press/cn/05-51WeatherDerivatives12870.html
CME Euro FX Futures Mark New Daily Volume Record
http://www.cme.com/about/press/cn/05-53eurofxrecord12873.html
CME Appoints Jeffrey P. Kilinski as Director, Interest Rate Products
http://www.cme.com/about/press/cn/05-52Kilinski12869.html
Merc hires help on Web trading
The Chicago Mercantile Exchange hired Jeffrey Kilinski from Lehman Brothers Inc. to help boost electronic trading of options on the exchange's most active contracts. Kilinski will be a director of interest rate products, reporting to Managing Director Robin Ross. Kilinski was a vice president at Lehman Brothers, where he was responsible for sales of futures, derivatives, treasuries and other fixed-income products.
http://www.futuresindustry.org/tools/linktrack.asp?lid=9015
Euronext's Alternext to open on May 17 with listing of MeilleurTaux
PARIS (AFX) -
http://uk.biz.yahoo.com/050414/323/fgbo0.html
Alternext: a tailor-made market for small and mid caps
http://www.euronext.com/news/press_releases/0,4159,1732_8275,00.html
First Slovenian Market Participant Connected to Xetra
Deutsche Börse further expands its participant network in the new EU member states/Xetra ever more attractive for participants from Central and
Deutsche Börse Corrects Financial Times Article
Hedging With Options for Cotton Producers Workshop
http://www.nybot.com/cotton/May2005.pdf
NYSE sanctions specialist traders
Fleet Securities fined US$100,000
http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=28425&IdSection=8&cat=8
PHLX to Begin Trading Options on iShares Lehman Us Treasury Exchange Traded Funds
http://www.phlx.com/news/pr2005/05pr041405.htm
NYSE traders charged with fraud
http://economictimes.indiatimes.com/articleshow/1076880.cms
NZX Issues Statement Of Case Against Access And former Managing Director
A Statement of Case has been issued by New Zealand Exchange Ltd (NZX) against the collapsed
The Wellington-based brokerage company is in liquidation following its collapse in September, 2004.
http://www.exchange-handbook.co.uk/news_story.cfm?id=52368
Date of Letter |
Date Filed |
DCM |
Description |
04/13/2005 |
HEDGESTREET |
HedgeStreet offers "Refer-A-Friend" Program. |
|
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/dig041305.txt
CFTC's Technology Advisory Committee to Meet Thursday, April 28, 2005, at the CFTC's
http://www.cftc.gov/opa/press05/opa5067-05.htm
Ex-trading manager at Western Gas sued
Federal regulators sued a former Western Gas Resources Inc. trading manager Tuesday in federal court in
http://www.denverpost.com/Stories/0,,36~33~2813286,00.html
NASD Requests Comment on Proposal to RequirePrincipal Pre-Use Approval of Member Correspondenceto 25 or More Existing Retail Customers within a 30-Calendar-Day Period; Comment Period Expires May 27, 2005
http://www.nasd.com/web/idcplg?IdcService=SS_GET_PAGE&nodeId=5&ssSourceNodeId=5
NASD Sanctions First Command Broker for Fraud, Deceptive Conduct
http://www.nasd.com/web/idcplg?IdcService=SS_GET_PAGE&nodeId=5&ssSourceNodeId=5
NASD Investor Foundation News
The NASD Investor Foundation releases information about fund distribution for studies of various investor-related programs
http://www.nasd.com/web/idcplg?IdcService=SS_GET_PAGE&nodeId=5&ssSourceNodeId=5
2005 News Releases
4/13/05 NASD Sanctions First Command Broker for Fraud, Deceptive Conduct
4/13/05 NASD Foundation Funds
4/13/05 NASD Foundation Funds Rutgers University-Camden Study To Explore 401(k) Fund Choices By Women Investors
4/13/05 NASD Foundation Funds Study to Learn Why Elderly Are More Frequently Victimized by Financial Fraud Crimes
4/13/05 NASD Foundation Funds Model Law Clinic in
4/13/05 NASD Promotes Investor Education in
4/13/05 NASD Foundation Funds Investor Education Program for Native Americans
4/13/05 Investing, His & Hers: NASD Foundation Funds
4/13/05 Better Business Bureau Investor Ed Project Wins NASD Foundation Nod
4/13/05 Helping Women Play Games with their Financial Futures
4/13/05 NASD Foundation Funds CFA Project To Increase Investor Knowledge of Mutual Funds
http://www.nasd.com/web/idcplg?IdcService=SS_GET_PAGE&nodeId=1177&ssSourceNodeId=5
SEC Adopts Amendments to Form 20-F Related to the First-Time Adoption of International Financial Reporting Standards
http://www.sec.gov/news/press/2005-55.htm
OSFI gets power to impose monetary penalties
New regulations to replace current filing penalties
http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=28428&IdSection=8&cat=8
http://www.bcsc.bc.ca/release.asp?id=2343
SEC Enforcement Director Cutler To Resign; Probed WorldCom, Enron, Tyco
http://www.forbes.com/2005/04/14/0414autofacescan03.html?partner=rss
SEC enforcement chief Cutler resigning
WASHINGTON (MarketWatch) - Stephen Cutler, the Securities and Exchange Commission's top enforcement officer, will leave the agency in about a month to return to the private sector, the SEC said on Thursday.
SEC freezes
The Securities and Exchange Commission obtained a temporary restraining order against a
SEC Likely to Give Reprieve on Expensing
SEC Likely to Give Most Companies Six-Month Reprieve From Stock Option Expensing
http://abcnews.go.com/Business/wireStory?id=667355&CMP=OTC-RSSFeeds0312
NASD Fines Ex-Broker for Unsuitable Advice
A former broker with First Command Financial Planning, a brokerage firm that specialized in selling investments to military personnel, was fined $25,000 and suspended for 10 months for recommending unsuitable investment strategies to clients, NASD announced yesterday.
http://www.nytimes.com/2005/04/14/business/14military.html
Managed Futures - Managed Funds
ETFs: Not as simple as they look.
Exchange traded funds, newly introduced to
http://www.globes.co.il/serveen/globes/DocView.asp?did=904771&fid=980
Ethical Funds makes manager change
Manning & Napier replacing Alliance Capital
http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=28427&IdSection=1&cat=1
Montrusco Bolton and Focus Announce Fourth Annual Absolute Return Hedge Fund Conference
Montrusco Bolton Investments Inc. of
http://biz.yahoo.com/prnews/050414/nyth045.html?.v=7
FX becoming asset class -
IPE.com 14/Apr/05: GLOBAL – With volumes up almost 25% last year, foreign exchange is evolving into a separate asset class for “real money” investors, says Greenwich Associates.
http://www.ipe.com/article_default.asp?article=18580
***** Cash is an asset class, who would have thunk it!
Russell sets schedule for 2005 index reconstitution
Annual process keeps stock benchmarks tuned to market realities
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
Spitzer Says Stock Research Has Improved
Two years after a landmark settlement of conflict-of-interest charges involving top Wall Street firms, New York State Attorney General Eliot Spitzer said Wednesday that individual investors now have greater access to high-quality investment research.
Deadline Nears for L&C Renewals
Members of the Law and Compliance Division are urged to renew their membership by the April 15 deadline. It's quick, easy, and will only take a few minutes.
http://www.futuresindustry.org/members/Default.asp
Morgan Stanley's Purcell Wrestles With Perella's Exit
April 14 (Bloomberg) -- On Tuesday afternoon, Philip Purcell, the besieged chief executive officer of Morgan Stanley, called his top rainmaker, Joseph Perella, with troubling news: Yet another executive had quit.
http://quote.bloomberg.com/apps/news?pid=nifea&&sid=anu2ofc4Ntgc
The Traders Expo,
FREE admission for you and a guest.
Running out of puff?
At the World Bank/IMF spring meetings this weekend, officials will spend most of their time fretting about high oil prices. But the size and growth of global imbalances—particularly
http://www.economist.com/agenda/displayStory.cfm?story_id=3868421
Morgan Stanley Names New Heads of Investment Banking
http://www.morganstanley.com/cgi-bin/morganstanley.com/pressroom.cgi?action=load&uid=403
Orc Software Delivers Orc Liquidator to Italian Bank
STOCKHOLM, Sweden, April 14, 2005 (PRIMEZONE) -- Orc Software, a leading provider of automated trading technology, reports today that an Italian bank will be implementing Orc Software's most advanced technology, Orc Liquidator. Orc Liquidator offers proprietary traders and market makers as well as hedge funds and other asset managers, a high performance trading platform. Orc Liquidator allows
http://au.biz.yahoo.com/050414/21/43h5.html
First Quarter Interim Report
http://www.orcsoftware.com/Company/IR/InterimReports.htm
Analyst and press conference April 14 at 2 p.m. CET (in Swedish)
Svensk (pdf) English (pdf)
http://www.orcsoftware.com/Company/IR/IR_Calender.htm
Telephone conference April 14 at 4 p.m. CET (in English)
Svensk (pdf) English (pdf)
http://www.orcsoftware.com/Company/IR/IR_Calender.htm
JP Morgan Securities, Inc. Selects DTCC's Global Corporate Action Validation Service
The Depository Trust & Clearing Corporation today announced that JP Morgan Securities, Inc. has chosen the Global Corporate Action Validation Service to drive automation and straight-through processing for its corporate action announcements.
http://biz.yahoo.com/bw/050414/145384.html?.v=1
Morgan Stanley CEO's Future Questioned
Even as Morgan Stanley's board gave another vote of confidence to embattled Chief Executive Phil Purcell Wednesday, more high-level executive departures, a falling stock price and increased shareholder dissent all led to the question, can Purcell last?
http://search.news.yahoo.com/search/news?n=10&p=morgan+stanley&nytp=0
Morgan Stanley Shaken Again as Others Quit
By LANDON THOMAS Jr. Two senior bankers at Morgan Stanley resigned yesterday, shaking the firm's prized investment banking division and casting doubt on the ability of Philip J. Purcell to gain control of his divided firm.
http://www.nytimes.com/2005/04/14/business/14wall.html
Perelman Suing Morgan Stanley for $2.7B
Billionaire Ronald Perelman's chief negotiator in a corporate deal that later turned disastrous said Wednesday he had relied on Morgan Stanley's advice in the affair.
http://news.yahoo.com/news?tmpl=story&u=/ap/20050414/ap_on_bi_ge/morgan_stanley_sued_3
Morgan Stanley's Purcell Wrestles With Perella's Broken Pledge
http://www.bloomberg.com/apps/news?pid=10000103&sid=a5bABK13mb1o
PURCELL-OUTS
April 14, 2005 -- Morgan Stanley CEO Philip Purcell moved quickly yesterday to replace the head of the firm's lucrative investment banking operation — but it was unclear if the move was enough to save his job.
http://www.nypost.com/business/23166.htm
Corporate Governance Ratings Added To The FTSE ISS CGI Series - Enhanced Corporate Governance Tools Now Available
http://www.exchange-handbook.co.uk/news_story.cfm?id=52376
Dow Jones Indexes, CBN Sign Agreement To Launch Sector Blue-Chip Indexes On The Dow Jones CBN
http://www.exchange-handbook.co.uk/news_story.cfm?id=52369
Is religion good for health? Studies say amen
Two studies released Wednesday are adding to the growing body of research that religion is good for your health.
http://www.suntimes.com/output/news/cst-nws-god14.html
Cracking The Street's New Math
Algorithmic trades are sweeping the stock market. But how secure are they?
http://www.businessweek.com/magazine/content/05_16/b3929113_mz020.htm
John's Comments
My Son the Bear
For the second time in two weeks when picking my youngest son up from church, after his brother and sister have finished choir practice, I have found Robert dressed up in a bear suit. I am sure it is some kind of sign, but have not put it together. Should I be bearish the stock market, or bullish on the Chicago Cubs? I will let you know when I figure it out. In the meantime, he makes quite a good looking bear and it is much better than when his sister dresses him up.
**********
CBOT full-sized Gold on a Roll
Full-sized Gold futures open interest rose to a new high of 4,597 yesterday, exceeding the previous record of 4,571 set they day before.
**********
Man Group Is Sued by Trading Technologies Over Futures Software 2005-04-13 18:49 (
By Ann Saphir and Kevin Orland
April 13 (Bloomberg) -- Man Group Plc, the world's largest publicly traded hedge fund company, was sued by Trading Technologies International Inc. over patents for software used by futures traders. The lawsuit, filed today in federal court in
MAN GROUP (LSE:EMG.L) Delayed quote data
Last Trade: 1,390.00
Trade Time: 11:53AM ET
Change: 17.00 (1.24%)
Prev Close: 1,373.00
http://finance.yahoo.com/q?s=EMG.L&d=t
Disclosure: My employer, The Price Futures Group, Inc., has a clearing agreement with Man Financial. I make no other comment about this matter at this time.
*********
Brent Crude Watch
IPE Brent Volume: 121,510
NYMEX Brent Crude Volume: 11736
NYMEX Percent of Market Volume: 8.81%
********
Percent Electronic
CBOT: 61.77%
CME: 71.73%
CME Eurodollars: 78.67%
CME Live Cattle: 1.59%
CME Currency Products: 87.31%
CBOT Soybeans: 1.80%
CBOT Options: 3.14%
CME Options: 8.34%
Volume
OneChicago Volume: 47,729
Eurex
Euronext.liffe Eurodollar Volume: 54,331
CBOE Futures Exchange Volume: 578
Market Share
CBOT 100 oz. Gold Volume: 667
NYMEX 100 oz. Gold Volume: 34,530
CBOT Share: 1.90%
CBOT 5000 oz. Silver Volume: 242
NYMEX 5000 oz. Silver Volume: 21,288
CBOT Share: 1.12%
CBOT Mini Gold Volume: 542
CBOT Mini Silver Volume: 314
CME Emini Russell 1000 (100X) Volume: 3609
Eurex
NYBOT Mini Russell 1000 (50X) Volume: 150
CFE Mini Russell 1000 (100X) Volume: 2
CME Emini Russell 2000 Volume: 128,319
Eurex
CFE Mini Russell 2000 Volume: 245
Notes: The Emini S&P 500 futures at the CME traded over 1 million contracts yesterday. At OneChicago, 38,026 contracts of Exxon Mobil Corporation single stock futures traded yesterday.
The Chicago Board of Trade’s Two-Year U.S. Treasury Notes futures contract continued to show tremendous growth during the first quarter of 2005, with triple digit gains in total average daily volume, average daily volume on e-cbot® and open interest.
|
March 31, 2004 |
March 31, 2005 |
Change |
ADV |
27,393 |
77,552 |
+183.1% |
e-cbot ADV |
13,168 |
64,536 |
+390.1% |
e-cbot market share |
55.6% |
85.5% |
+53.8% |
Open Interest |
158,005 |
330,867 |
+109.4% |
Liffe Eurodollar Over-Under
Liffe/Globex: 2.50%
Liffe/CME: 1.98%
Regards,
John J. Lothian
Publisher
John Lothian Newsletter
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Disclaimer: The John Lothian Newsletter is a product of John J. Lothian & Company, Inc. The opinions expressed are strictly the opinion of John Lothian, and not necessarily those of his employer, 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.
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