April 15, 2005

 

Lead Stories

 

 

CBOT Membership Overwhelmingly Approves Exchange Restructuring Proposal

Ninety-nine percent of the votes were cast in favor of the restructuring proposal

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1036+27656,00.html

 

CBOT Vote Breakdown

 

Proposition #1................ 1,029 4/6 Yes, 7 3/6 No

Proposition #2................ 1,027 1/6 Yes, 7 3/6 No

Proposition #3................ 1,026 2/6 Yes, 8 4/6 No

Proposition #4................ 1,024 1/6 Yes, 10 4/6 No

Proposition #5................ 1,020 1/6 Yes, 8 3/6 No

 

CBOT approves for-profit status

Crain's Chicago Business - Chicago,IL,USA

... success of the Merc has encouraged a lot of people in the derivatives trading space to consider a public offering of shares," says John Lothian, president of ...

http://chicagobusiness.com/cgi-bin/news.pl?id=16131

 

CBOT to go for-profit, plans IPO member vote soon

By Ros Krasny

CHICAGO, April 14 (Reuters) - Members of the Chicago Board of Trade voted on Thursday to make the exchange a for-profit company, opening the door for a possible initial public offering within months.  The No. 2 U.S. futures exchange said in a statement its members voted about 99 percent in favor of five separate measures related to the proposed restructuring.

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8187463

 

CBOT members vote for move to profit-making status

By Andrei Postelnicu in New York

The Chicago Board of Trade on Thursday moved a step closer to becoming a public company when 99 per cent of its 3,600 members approved a plan to make the 157-year-old futures exchange a for-profit entity.  Yesterday's vote clears the way for the second-largest futures exchange in the US to vote as early as next month on going public. The move would come almost three years after its crosstown rival, the Chicago Mercantile Exchange, did the same - subsequently seeing its shares more than quadruple. At current seat prices, the CBOT would be valued at about $2bn.

http://news.ft.com/cms/s/fdc215a6-ad4b-11d9-ad92-00000e2511c8.html

 

NYMEX Daily Volume Crosses 1 Million for First Time 

http://www.nymex.com/jsp/news/press_releas.jsp?id=pr20050414c

 

CBOE SETS NEW SINGLE-DAY VOLUME RECORD; 3.05M Contracts Is The Busiest Trading Day In CBOE History

http://www.cboe.com/AboutCBOE/ShowDocument.aspx?DIR=ACNews&FILE=20050414.doc

 

UK's Man says did not infringe U.S. firm's patents

LONDON, April 15 (Reuters) - Man Group (EMG.L: Quote, Profile, Research) said on Friday that it had not infringed any patents on software developed by U.S-based Trading Technologies Inc., which has filed a suit against the world's largest listed hedge fund firm.  Trading Technologies (TT) filed the suit against London-listed Man Group's brokerage arm, Man Financial in Chicago. TT alleges that the company is using its MD Trader software without a license.  "Man Financial only received a copy of TT's complaint yesterday," a Man Group spokesman told Reuters.  "Man Financial is confident that none of the software or trading systems we are providing to our clients, all of which is provided by third party vendors, infringe any TT patents," the spokesman said.

http://yahoo.reuters.com/financeQuoteCompanyNewsArticle.jhtml?duid=mtfh29177_2005-04-15_12-48-31_l15669574_newsml

 

TT sues another group over software

By Jeremy Grant in London

Man Group, a UK financial services group, on Thursday became the latest target of legal action by Trading Technologies as the Chicago-based derivatives software company continued its campaign to force futures exchanges to give it a share in their revenues.

http://news.ft.com/cms/s/03be0708-ad4c-11d9-ad92-00000e2511c8.html

 

Man Group's Fink `Confident' Software Doesn't Infringe Patents

April 14 (Bloomberg) -- Man Group Plc, the world's largest publicly traded hedge-fund manager, denied allegations that the company infringed patents on futures-trading software developed by Trading Technologies Inc., which filed suit yesterday.  ``Man Financial is confident that none of the software or trading systems we are providing to our clients -- all of which is provided by third-party vendors -- infringe any TT patents.'' Man Group Chief Executive Stanley Fink said today in an e-mailed statement.

http://www.bloomberg.com/apps/news?pid=10000102&sid=awuQdvitTdEM&refer=uk

 

CME Eurodollars suffer outage, shares tumble

CHICAGO, April 14 (Reuters) - A lengthy outage hit Eurodollar futures trading on the Chicago Mercantile Exchange's (CME.N: Quote, Profile, Research) electronic platform on Thursday, contributing to a drop in CME shares to the lowest since early November.  Eurodollar futures trading on Globex was halted for almost three hours after some users experienced trouble accessing the order-matching engine, the CME said.

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8186944

 

CME Globex Failure Ignites Floor Trade Of Eurodlr Futures

CHICAGO (Dow Jones)--Open outcry trading came to life again in the Eurodollar futures pit Thursday afternoon, as a software problem forced Chicago Mercantile Exchange Inc. (CME) to temporarily shut down electronic trading of the world's most active contract.

http://money.iwon.com/jsp/nw/nwdt_rt.jsp?cat=USMARKET&src=704&feed=dji&section=news&news_id=dji-00123420050414&date=20050414&alias=/alias/money/cm/nw

 

Deutsche Borse chief 'is set to resign'

CONFUSION reigns in Germany over who might be the next boss of Deutsche Borse after reports that chief executive Werner Seifert is heading for the exit after his failed bid to buy the London Stock Exchange.

http://www.thisislondon.co.uk/news/business/articles/timid399744?source=

 

TCI Fund Demands Removal of Deutsche Boerse's Breuer (Update2)

April 14 (Bloomberg) -- TCI Fund Management has called for shareholders of Deutsche Boerse AG to vote on ousting Rolf Breuer as supervisory board chairman of the German stock exchange because of a ``breakdown of confidence and trust'' among investors.

http://www.bloomberg.com/apps/news?pid=10000100&sid=au2i9Z1B3aSI

 

NEAL L. WOLKOFF ELECTED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE AMERICAN STOCK EXCHANGE

New York, April 15, 2005 -  The Board of Governors of the American Stock Exchange (Amex) today elected Neal L. Wolkoff Chairman and Chief Executive Officer. Mr. Wolkoff, 49, has been Acting CEO of the American Stock Exchange since January 2005.  "I feel privileged to have the opportunity to lead the American Stock Exchange in this exciting and challenging time in the securities industry," said Mr. Wolkoff. "There is a tremendous amount of talent here and I look forward to working closely with the membership, my colleagues on the board and the management team to provide the highest quality marketplace for our customers."

http://www.amex.com/atamex/news/press/sn_Wolkoff_CEO_041505.htm

 

CME Enhances Strategic Planning and Corporate Development Team

Names Ann Shuman and Kendal Vroman Co-Heads of Corporate Development; Appoints Johannes Zhou as Director, Asian Business Development

CHICAGO, April 15, 2005 – CME, the largest U.S. futures exchange, today announced it is enhancing its strategic planning and corporate development capabilities by naming Ann Shuman and Kendal Vroman as Co-Heads of Corporate Development.  Scott Robinson, who currently serves as Managing Director, Corporate Development, is leaving CME to pursue other business interests.

http://www.cme.com/about/press/cn/05-54CorpDevelopment12906.html

 

***** Scott Robinson leaving?  This is a surprise.

 

Now silent IPE still in with a shout

By Kevin Morrison

Early skirmishes for control of the world's second-most-traded oil futures contract between the London-based International Petroleum Exchange and its bigger rival, the New York Mercantile Exchange, give little indication of which will emerge as the winner.  However, observers said that time was on the IPE's side, as its US rival waited for the opening of a new London trading floor.

http://news.ft.com/cms/s/16869a6c-ad4c-11d9-ad92-00000e2511c8.html

 

Nasdaq Said to Be in Talks to Buy Instinet

By JENNY ANDERSON and ANDREW ROSS SORKIN

Nasdaq Stock Market Inc., the largest electronic market place, is in exclusive talks to buy Instinet, the institutional brokerage and electronic trading network partly spun off by the Reuters Group in 2001, people briefed on the talks said yesterday.

http://www.nytimes.com/2005/04/15/business/15market.html?

 

Nasdaq in Exclusive Talks to Buy Instinet-FT Report 

LONDON (Reuters) - The Nasdaq Stock Market Inc.is in exclusive talks to buy electronic trading company Instinet Group, the Financial Times newspaper

http://news.reuters.com/newsArticle.jhtml?type=topNews&storyID=8194397

 

Blackstone Seeks Nymex Stake Before Any Share Sale (Update5)

U.S. April 15 (Bloomberg) -- Blackstone Group LP, manager of a $6.45 billion buyout fund, is seeking a stake in the New York Mercantile Exchange before a possible sale of shares by the bourse to compete in Europe and Asia with a London-based rival.

http://www.bloomberg.com/apps/news?pid=10000103&sid=aDfWvIO3Dx3A

 

KCBT Quotes & Charts Upgraded

The KCBT has changed providers for quotes & charts on website

http://www.kcbt.com/news_2.asp?id=266&home=1

 

“Perfect storm” drives up global foreign exchange trading volumes

Jumped nearly 25% in 2004: Greenwich

http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=28436&IdSection=137&cat=137

 

Environmental Trading News

 

Farmers who practise soil conservation eligible for millions under Kyoto plan

OTTAWA (CP) - Farmers who use low-till methods and other climate-friendly practices could be eligible for about $1 billion under the Kyoto plan, says Environment Minister Stephane Dion. Dion says farmers will gain a significant new source of income if they use the methods because they tap into the carbon-trading market that will be an important part of the federal plan.

http://www.canada.com/news/story.html?id=d1ea4672-6b63-4f3d-9294-2ea27029a5c6

 

Exchange News

 

CME weather trading volumes already past those of 2004

Chicago • 14 April 2005 • Weather derivatives trading volumes for 2005 on the Chicago Mercantile Exchange have already surpassed last year's volumes, said the exchange yesterday. The number of contracts traded this year hit 124,177 on April 12, compared with 122,987 for the whole of 2004.

http://db.riskwaters.com/public/showPage.html?page=216177

 

Media Invited to CBOT Meeting on South American Soybean Futures April 21

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1036+27635,00.html

 

What is the new Bid/Ask for ethanol?

A short description of the new Bid/Ask feature for CBOT Ethanol Futures.

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1027+27629,00.html

 

CBOT Dow Jones Strike Price Notice, April 15, 2005

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+27682,00.html

 

CBOT Strike Price Notice, April 15, 2005

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+27680,00.html

 

CBOT Trading Position Change Notice, Corn, April 18, 2005

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+27679,00.html

 

Member Firm Seat Requirements Post-Restructuring

Current requirements for member firms to maintain member firm status will not change. 04.15.2005

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+27683,00.html

 

E-CBOT Dow Jones Strike Price Notice, April 15, 2005

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+27681,00.html

 

Exchange Sets Record for Copper Futures Open Interest 

http://www.nymex.com/jsp/news/press_releas.jsp?id=pr20050414b

 

Exchange to Reduce Spot Month Position Limits for Copper Futures

http://www.nymex.com/jsp/news/press_releas.jsp?id=pr20050414a

 

Program Trading Averaged 56.2 Percent of NYSE Volume during Apr. 4-8

http://www.nyse.com/press/1113475072382.html

 

OneChicago To List Three New Contracts April 18

http://www.onechicago.com/060000_press_news/press_news_2005/04142005.html

 

 

 

***** The timing of this filing from the CME does not correlate with the jump in volume they have seen since Eurex US launched Russell 1000 and Russell 2000 futures.  And the filing is a little sparse in details compared to filings Eurex has filed for similar programs.  Why the big differences?

 

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/dig041405.txt

 

CFTC Charges Colorado Energy Executive Andrew Richmond with False Reporting & Attempted Manipulation of Natural Gas Prices

http://www.cftc.gov/opa/enf05/opa5068-05.htm

 

CFTC Weekly Advisory

http://www.cftc.gov/opa/adv05/opawa16-05.htm

 

Guidance Regarding Rule 3012(a)(1) Requirement to Test and Verify a Member's Supervisory Policies and Procedures

http://www.nasd.com/web/idcplg?IdcService=SS_GET_PAGE&nodeId=5&ssSourceNodeId=5

 

NASD Reminds Members that the TRACE Reporting Period Will Be Reduced to 15 Minutes on July 1, 2005, and Rescinds Interpretive Guidance Regarding Rejected TRACE Transaction Reports

http://www.nasd.com/web/idcplg?IdcService=SS_GET_PAGE&nodeId=5&ssSourceNodeId=5

 

Ladenburg Thalmann Agrees to Repay $1.2 Million to Customers Overcharged in Proceeds Transactions

http://www.nasd.com/web/idcplg?IdcService=SS_GET_PAGE&nodeId=5&ssSourceNodeId=5

 

Commission Amends Compliance Dates for FASB Statement No. 123R on Employee Stock Options

http://www.sec.gov/news/press/2005-57.htm

 

Enforcement Director Stephen M. Cutler to Leave Commission

http://www.sec.gov/news/press/2005-56.htm

 

SEC to ease transition by foreign registrants to IFRS

Will help adopt International Financial Reporting Standards

http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=28444&IdSection=8&cat=8

 

Financial crime fighting requires more resources

Federal report makes six recommendations, including maintaining FINTRAC funding

http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=28439&IdSection=8&cat=8

 

Former company president must stay out of securities market

http://www.bcsc.bc.ca/release.asp?id=2352

 

SEC'S CUTLER TO RETURN TO THE PRIVATE SECTOR

April 15, 2005 -- Stephen Cutler, who spearheaded the U.S. Securities and Exchange Commission's crackdown on the corporate fraud and trading scandals that rattled U.S. investors following the collapse of Enron Corp., said he will resign in a month as the agency's enforcement chief.

http://www.nypost.com/business/42628.htm

 

NASD Fines Ladenburg for Overcharging

The National Association of Securities Dealers said Thursday that it fined Ladenburg Thalmann Financial Services Inc. $250,000 and got the brokerage firm to agree to refund excessive commissions.

http://biz.yahoo.com/ap/050414/nasd_ladenburg_thalmann.html?.v=2

 

FSA Issues Boiler Room Warning

City watchdog, the FSA (Financial Services Authority), is warning of a new tactic used by boiler rooms to con both investors and UK small businesses out of their money. This is the latest in a series of warnings to consumers about boiler rooms and share investment scams.

http://uk.biz.yahoo.com/050415/22/fgeqf.html

 

Securities and Exchange Commission Amends Compliance Dates For FASB Statement No. 123R On Employee Stock Options

http://www.exchange-handbook.co.uk/news_story.cfm?id=52386

 

Managed Futures - Managed Funds

 

MFA Praises the CFTC's Revision of Federal Speculative Position Limits and Encourages Further Reforms - April 14, 2005

http://www.mfainfo.org/images/PDF/Speculative_Position_Limits_Comment_Letter4.14.05.pdf

 

Brain-drain funds for ABN

Dutch bank ABN AMRO plans to launch a hedge fund every six months over the next few years to diversify its business and keep talent within the group, its London-based head of alternative investments said.

http://www.thestandard.com.hk/stdn/std/Markets/GD15Ag13.html

 

Private banks edge away from equities

Private investors disillusioned by the stock markets are increasing their allocation to alternative assets such as hedge funds and private equity.

http://news.ft.com/cms/s/da67682c-adc3-11d9-9c30-00000e2511c8.html

 

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

 

Register Early for London Conference and Save!

The FIA/FOA @ The Barbican will be held on June 29-30 and will feature a series of panel sessions on such topics as the costs of clearing, impediments to transatlantic business, exchange plans for the future, the evolution of ISVs, and compliance with exchange rules and trading procedures. Participants who register by May 1 will receive a discount.

http://www.futuresindustry.org/idw2005-2479.asp

 

SIA Welcomes House Passage Of Bankruptcy Reform, Applauds Sensenbrenner's Efforts In Securing Approval

http://www.sia.com/press/2005_press_releases/03591239.html

 

Gas Price Spike Weighing Down Consumers

Friday, April 15, 2005 10:32 a.m. ET NEW YORK (Reuters) - U.S. consumers felt less confident about economic conditions in April than in March as gasoline prices soared, reinforcing nascent concerns that growth in the United States may be on the brink of a slowdown.

http://news.lycos.com/wired/story.asp?section=Breaking&storyId=1019610

 

DrKW brings all assets together

Dresdner Kleinwort Wasserstein, the German investment bank owned by insurer Allianz, has this week joined a growing trend among its peers to combine operations in all main asset classes by announcing the launch of a Global Derivatives business group.

http://news.yahoo.com/news?tmpl=story&u=/ft/20050414/bs_ft/d7828f9cad1411d9ad9200000e2511c8

 

Are We Dead Yet?

Investors Not Tempted By Mortality Mart

Derivatives houses looking to kick-start a market for instruments linked to mortality, such as swaps in which investors pay or receive a death rate, have failed to find favor with investors.

http://www.institutionalinvestor.com/default.asp?page=1&SID=495189&ISS=13937&type=9

 

Trials and Tribulations at Tribune

By and large, those who report the news don't like to actually be part of the news. And yet, Chicago-based Tribune Company (NYSE: TRB - News) seems to attract attention for all the wrong reasons. If it's not a scandal regarding dramatically inflated numbers at Newsday, it's a hissy fit with car (and advertising) giant General Motors (NYSE: GM - News) that led to the automaker withdrawing its

http://news.yahoo.com/news?tmpl=story&u=/fool/20050415/bs_fool_fool/111358418615

 

Should Investors Be Citigroupies?

Investors got a good look at the good news/bad news aspect of Citigroup's (NYSE: C - News) structure on Friday. The good news is that the company is so broadly diversified and active in so many markets, some of them are bound to do well in any given quarter. The bad news is that the company is in so many different businesses that some of them are bound to do poorly in any given quarter.

http://news.yahoo.com/news?tmpl=story&u=/fool/20050415/bs_fool_fool/111358385814

 

Seed of Chucky

Charles Schwab (NYSE: SCH) grew its non-trading revenue streams, but it wasn't enough to offset lower trading commissions, as the leading discount broker reported flat first-quarter results on Friday. On a 4% dip in revenue, the company earned $0.11 a share.

http://www.fool.com/News/mft/2005/mft05041507.htm

 

A New Trading Platform For EuroMOT - The Borsa Italiana Market For Euro-Bonds

http://www.exchange-handbook.co.uk/news_story.cfm?id=52402

 

John's Comments

 

The O’Connor Impact; Then and Now

 

By John J. Lothian

FIA Hall of Fame Announcement:

As we celebrate our 50th anniversary it is fitting that the FIA institute this Hall of Fame to celebrate the accomplishments and recognize the significant contributions individuals have made to the futures and options industry. I have no doubt that the next 50 years will bring as many changes to our industry as the last 50, but one thing will remain constant—our respect and gratitude to the individuals who laid the foundation for our extraordinary success.

It is important that the people who lead this industry today understand the contributions made by those who came before them. We are benefiting from the ground they broke, and the programs and policies they put in place.

When the Futures Industry Association announced they were naming a FIA Hall of Fame to “celebrate the accomplishments and recognize the significant contributions individuals have made to the futures and options industry”, those “who laid the foundation of our extraordinary success,” it was immediately obvious they had omitted significant foundation builders.  With no disrespect intended to any of those named to the FIA’s Hall of Fame or those who were involved in the naming, let me follow up on John Gilmore’s comments and expand the list a bit and offer another perspective.

 

The foundation of our extraordinary success is rooted in two extraordinary years in the early 1970s when innovative ideas at the Chicago Board of Trade, the Chicago Mercantile Exchange and the academic endorsement from a cadre of University of Chicago economists converged to produce innovative products that have changed the world.  Financial futures, currency futures and exchange traded options imagined, created and academically endorsed in the 1970s are now deeply embedded into our financial lives and markets, from the futures and equity markets, to OTC derivatives, to mutual funds to the mortgages and insurance we use to buy and protect our homes.

 

Some of the people who played a significant role in creating these ideas and bringing them to life and success were honored by the FIA and rightly so.  Dr. Richard Sandor and Leo Melamed brought significant intellectual contributions with financial futures and currency futures respectively.  However, without the academic contributions from people like Myron Scholes, Fischer Black, Robert Merton and Milton Friedman the foundation would not have been so strongly laid.

 

According to Myron Scholes’ Nobel Prize Speech “both the derivative exchange industry and the derivative academic industry grew significantly from 1973 to 1985.  Financial economists started to interact with a broad set of practitioners and this led to a cross-fertilization of ideas among participants in both industries.”

 

He also said about adoption of the Black-Scholes option pricing model, “as traders became more familiar with risk-management techniques they could take on larger positions to support the market.”

 

So we have ideas.  We have academic theory colliding with the ideas.  And, we have practitioners who put their capital on the line to build the infrastructure and prove the concept.  Two such practitioners were Eddie and Billy O’Connor.  Their risk taking and industry building have left a lasting intellectual, commercial and universally beneficial impact on the futures and options industry and as a result, the world.

 

Eddie O’Connor is largely credited with being the father of the CBOE.  Starting back in the late 1960’s, he worked to create exchange traded equity options and was the first Chairman of the then CBOE Clearing Corporation.  He was one of many who worked on the creation of the CBOE and deserve credit for their contributions, but Eddie, with his brother Billy, took it so much further.

When they saw that none of the brokerage firms had the capability to clear these new products, they created First Options of Chicago. First Options grew to become the largest clearing firm for option market makers in the world.

They wrote the first clearing programs to process the trades.  Billy O’Connor was one of the first to exploit personal computers for the futures and options industry, as he was one of the first customers of a computer kit building company in California, according to an O’Connor & Company executive.  When First Options grew so large its capital demands called for new capital, they sold it to Spear Leads & Kellogg. 

 

When they saw the new options markets needed traders to apply the new academic theories backing their product, they funded the mathematically oriented Michael Greenbaum to start O’Connor & Associates.  OCA became one of the most successful firms the futures and options industry has ever seen, so much so that today its former employees head nearly all of the major banks equity derivative desks and many of the banks FX desks as well. (see the list below)

 

OCA, like First Op, grew to a level where it needed a bigger balance sheet to back its multitude of equity market, interest rate, FX and OTC trades.  It merged with Swiss Bank in 1993, which itself merged with UBS in 1998.

 

Of course, one of the biggest individual public success stories for a former O’Connor & Associates partner is that of Jim McNulty.  After 10 years of developing businesses within Swiss Bank Corporation/UBS, Jim left UBS in 2000 to become the CEO of the CME.  To come to the CME, Jim negotiated an incentive based contract for himself based on the standard practices of that time and the currency of the day, equity options.  Jim’s total CEO option package for 4 years was expensed by the CME at $11.5 million. (http://www.sec.gov/Archives/edgar/data/1156375/000119312503073767/ds3a.htm, page 37)

 

However, Jim, like Billy and Eddie O’Connor with the equity options market at the CBOE, had a vision of the value of the CME beyond that of most, if the right legal structure (for-profit, public company), technology (improve Globex) and marketing people could be combined with working together with the board of directors.  Jim, the CME staff and the CME board delivered on that potential and today we see the results.

 

Billy O’Connor, who served as Chairman of the CBOT, is no longer living.  However, he has perpetuated the spirit of risk taking and entrepreneurship even beyond the grave.  The William J. O’Connor Foundation owns part of O’Connor and Company and contributes proceeds from its earnings back into the Chicago community.

 

Eddie O’Connor, who served as CBOT Vice Chairman, is still with us.  But more than his earthly presence, his legacy of innovation, risk taking, industry building and believing in people from different walks of life have cemented the trader’s intuition, exchange leader innovation and derivative market academic theory into the foundation of our very lives.

 

Billy and Eddie O’Connor belong in the Futures Hall of Fame.  It is unfortunate that they were left out.  They are due recognition of their contributions that laid the foundation of our success and are so evident in so many bank trading rooms and exchange trading floors around the world.  It is an impressive legacy. 

 

******

 

Here is a partial list of some of the O’Connor & Associates alumni and the positions they hold today:

 

Goldman Sachs  
Mark Spilker, Global MD Derivatives Trading

Credit Suisse First Boston
Jim Kreitman, Global Head Equities
Bob Jain, Global Head Proprietary Trading Equities/Fixed Income

JPMorgan Chase
Larry Mottola, MD Equity Derivatives Trading Fund

Lehman Brothers
Pat Whalen, MD Global Head Equities
Jerry Donini, MD Global Head Equity Derivatives Trading

Deutsche Bank
Ralph Reynolds, Global head Capital Markets

UBS
Daniel Coleman, MD Head Equity Derivatives Trading
Many others

Wachovia Securities
John Tobin, MD Equity Derivatives Trading

 
CDC/IXIS (French Bank)

Mark Mullahy, MD Equity Derivatives Trading

Peak 6 Investments
Matt Hulsizer/Jennifer Mankiewic  Founding  Partners

CTC  Chicago Trading Company LLC
Erich Tengleson, Erik Chern, John Watrous, Paul Keppas, Founding Partners

Wolverine Trading LLC
Rob Bellick, Chris Gust, Founding Partners

 
Astin Capital (Hedge Fund- London)

Charles Bray, Founder of Fund.

Eurex US
Satish Nandapurkar CEO
Sean Smith, Head of Equity Products

Jim McNulty, former CME CEO

Scott Johnston, former CME CIO

 

********

 

FOWeek Headlines   Issue 1015  18-Apr-2005

 

• CBoT goes for profit

• Man Group next in TT firing line

• Shot in the arm for Nymex Dublin Brent trading floor

• Anglo-Irish Brent futures competition ignites

• CFTC still working on Eurex clearing link authorisation

• Muddy clearing waters for Eurex http://www.fow.com/articles/foweek_article.asp?storyCode=3181

• Editorial - Wag the dog

• Kilinski named new CME director

• Nybot considers new cooperative structure

• Refco IPO could be bonanza

 

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Brent Crude Watch

 

IPE Electronic Brent Volume: 96,575

NYMEX Brent Crude Volume: 9984

NYMEX Share of Market: 9.37%

 

********

 

Chicago Electronic Trading Scorecard for April 14, 2005

 

Percent Electronic

 

CBOT: 67.77%

CME: 61.11%

CME Eurodollars: 66.21%

CME Live Cattle: 1.16%

CME Currency Products: 86.38%

CBOT Soybeans: 3.42%

 

CBOT Options: 10.53%

CME Options: 2.36%

 

Volume 

 

OneChicago Volume: 64,358

Eurex US Volume: 9743

Euronext.liffe Eurodollar Volume: 45,356

CBOE Futures Exchange Volume: 528

 

Market Share

 

CBOT 100 oz. Gold Volume: 1610

NYMEX 100 oz. Gold Volume: 58,143

CBOT Share: 2.69%

 

CBOT 5000 oz. Silver Volume: 275

NYMEX 5000 oz. Silver Volume: 18,963

CBOT Share: 1.43%

 

CBOT Mini Gold Volume: 1533

CBOT Mini Silver Volume: 575

 

CME Emini Russell 1000 (100X) Volume: 3017

Eurex US Mini Russell 1000 (100X) Volume: 2994

NYBOT Mini Russell 1000 (50X) Volume: 2760

CFE Mini Russell 1000 (100X) Volume: 0

 

CME Emini Russell 2000 Volume: 151,221

Eurex US Mini Russell 2000 Volume: 5547

CFE Mini Russell 2000 Volume: 283

 

Notes: From the CME: Thursday was the third busiest in CME’s history with 6,423,341 contracts traded. CME Eurodollar volume on Globex was 1.6 million, surpassing 2005 year-to-date average daily volume of 1.1 million. CME Eurodollars traded open outcry were 850,000 surpassing 2005 ADV of 365,000.

 

Liffe Eurodollar Over-Under

 

Liffe/Globex: 2.68%

Liffe/CME: 1.79%

 

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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