April 20, 2005

 

Lead Stories

 

Nymex eyes Budapest for futures market

The New York Mercantile Exchange on Tuesday added Budapest to the list of cities where it plans to set up a crude oil futures market.

Nymex, the Budapest Stock Exchange and the Budapest Commodity Exchange signed a memorandum of understanding about developing the first futures contract underpinned by the Russian Urals blend, to be traded in the Hungarian capital.

http://news.ft.com/cms/s/18242fd6-b104-11d9-9bfc-00000e2511c8.html

 

New York Mercantile Exchange and Budapest Stock Exchange Sign Memorandum of Understanding 

http://www.nymex.com/jsp/news/press_releas.jsp?id=pr20050419a

 

New Index Family to Track German, Swiss and Eurozone Volatility

Joint Media Release by Deutsche Börse AG, STOXX Ltd. and SWX Swiss Exchange

http://deutsche-boerse.com/dbag/dispatch/en/listcontent/gdb_navigation/press/10_Latest_Press_Releases/Content_Files/13_press/pm_news_200405.htm

 

Deutsche Börse’s Supervisory Board responds to TCI proposals

http://deutsche-boerse.com/dbag/dispatch/en/listcontent/gdb_navigation/press/10_Latest_Press_Releases/Content_Files/13_press/pm_news_antwort_ar_200405.htm

 

New futures contract to be developed

The Australian Financial Markets Association (AFMA) and the Sydney Futures Exchange (SFE) are set to develop a new futures contract. The contract will be based on the AFMA Fixed Interest Index (FIX), which is independently priced by a large panel of major Australian investment and trading banks.

http://www.smh.com.au/news/Business/New-futures-contract-to-be-developeds/2005/04/20/1113854255328.html

 

The New York Mercantile Exchange Partners with Creative Priority to Generate Global Awareness of its Brand

The New York Mercantile Exchange, Inc., the world's largest physical commodities exchange, announced today that it has retained the New York-based advertising agency Creative Priority LLC to help advance the NYMEX brand.

http://biz.yahoo.com/prnews/050420/nyw031.html?.v=7

 

NYMEX Launches Additional Natural Gas Index

The New York Mercantile Exchange, Inc., announced today that it will introduce 16 additional natural gas index and swing futures contracts for eight delivery locations on its NYMEX ClearPort electronic trading and clearing platform beginning on April 24 for the April 25 trade date.

http://www.commodities-now.com/content/market-news/market-news-200504206453.php

 

NYSE indictments add to Wall Street woes

Is this inside baseball or does it really matter? You decide. I think it matters. I'm talking about last week's federal criminal indictment of 15 former New York Stock Exchange specialists — those frenzied people you see in news pictures who are dressed like barbers.

http://www.clarionledger.com/apps/pbcs.dll/article?AID=/20050420/BIZ/504200331/1005

 

200,000 Ameritrade Client Files Lost

Leading online discount broker Ameritrade Holding Corp. said Tuesday it has informed about 200,000 current and former customers that a backup computer tape containing their personal information has been lost.

http://news.yahoo.com/news?tmpl=story&u=/ap/20050420/ap_on_bi_ge/ameritrade_data_breach_6

 

Euronext.Liffe buys CScreen to automate trading in equity derivatives

Euronext.liffe, the international derivatives business of cash securities market Euronext, has bought CScreen, a provider of a pre-trade price discovery platform, from Swedish company Cinnober Financial Technology.

http://www.cbronline.com/article_news.asp?guid=98536C4B-76DE-4BAC-AE99-94F7B5BFA2A1

 

**** I had a demo of the Cinnober CScreen at the Futures Industry Expo 2004 in Chicago last fall.  It was one of the two most impressive pieces of technology I saw there.  This is an excellent pick up by Euronext.liffe.

 

Euronext expands in OTC market

Euronext.Liffe, the European derivatives exchange, yesterday said it was expanding into the over-the-counter trading of equity derivatives, a market whose size by far outstrips that of exchange-traded products.  Euronext.Liffe said it had bought CScreen, the provider of a pre-trade price discovery platform for wholesale equity derivatives trading, from Swedish Cinnober Financial Technology for an undisclosed sum.

http://news.ft.com/cms/s/66d08be6-b138-11d9-9bfc-00000e2511c8.html

 

CBOT Exchange-Wide Open Interest Reaches New Record

The CBOT announced that on Monday, April 18, Exchange-wide open interest rose to its highest level ever.

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1036+27741,00.html

 

What Nasdaq sees in Instinet

Nasdaq Stock Market Inc. seems to think so.

http://www.thedeal.com/NASApp/cs/ContentServer?pagename=TheDeal/TDDArticle/TDStandardArticle&c=TDDArticle&cid=1113602985309

 

European Capital Markets Trade Associations Global Partnership To Be Established

http://www.exchange-handbook.co.uk/news_story.cfm?id=52474

 

OMX – Interim Report January-March 2005

http://www.exchange-handbook.co.uk/news_story.cfm?id=52473

 

Environmental Trading News

 

Planes Should Be Included In Emissions Trading -BAA Chief

BRUSSELS -(Dow Jones)- Carbon dioxide emissions from passenger and cargo planes should be included in the European Union's trading scheme, the head of U.K. airports operator BAA PLC (BAA.LN) said Tuesday.

http://money.iwon.com/jsp/nw/nwdt_rt.jsp?cat=USMARKET&src=704&feed=dji&section=news&news_id=dji-00059020050419&date=20050419&alias=/alias/money/cm/nw

 

Indus Sees Benefits To Sectoral CO2 Emission Trading-IETA

BRUSSELS -(Dow Jones)- An industry-by-industry approach to global emissions trading could be the way of the future for industries such as cement, steel and aluminum, to reduce emissions of carbon of dioxide in a cost-effective way, the head of the International Emissions Trading Association said Tuesday.

http://money.iwon.com/jsp/nw/nwdt_rt.jsp?cat=USMARKET&src=704&feed=dji&section=news&news_id=dji-00060920050419&date=20050419&alias=/alias/money/cm/nw

 

Exchange News

 

CBOT Strike Price Notice, April 20, 2005

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+27747,00.html

 

NYMEX Division Lead Market Maker Program For e-miNY(sm) Natural Gas

http://www.nymex.com/jsp/shareholder/notice_to_member.jsp?id=ntm170&archive=2005

 

New York Mercantile Exchange to Launch Additional Natural Gas Index and Swing Futures Contracts

http://www.nymex.com/jsp/shareholder/notice_to_member.jsp?id=ntm169&archive=2005

 

Exchange to Launch Additional Natural Gas Index and Swing Futures Contracts 

http://www.nymex.com/jsp/news/press_releas.jsp?id=pr20050419b

 

Exchange Announces Opening of New Washington, D.C. Office, Appointment of Vice President

http://www.nymex.com/jsp/news/press_releas.jsp?id=pr20050419c

 

Name Change of EAOSEF (East Asian and Oceanian Stock Exchanges Federation)

http://www.tse.or.jp/english/news/2005/200504/050420_a.html

 

Tokyo Stock Exchange Monthly Short Selling Value

http://www.exchange-handbook.co.uk/news_story.cfm?id=52479

 

Winnipeg Commodity Exchange Welcomes New Commercial Participant

http://www.exchange-handbook.co.uk/news_story.cfm?id=52464

 

 

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/dig041905.txt

 

Member Newsletter - Spring 2005

http://www.nfa.futures.org/member/newsLetter2.asp

 

View Remarks by Elisse B. Walter, Executive Vice President, Regulatory Policy & Programs, From the Independent Directors Council Directors Workshop on April 7, 2005

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

 

KPMG Pays $22 Million to Settle SEC Litigation Relating to Xerox Audits

http://www.sec.gov/news/press/2005-59.htm

 

FSCO invites comments on list for priorities

Regulator to focus on point of sale disclosure for investment funds

http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=28478&IdSection=8&cat=8

 

SIA: Supreme Court Ruling In Best Interests Of Investors, Industry, And The Economy

http://www.sia.com/press/2005_press_releases/03632950.html

 

Open tender rules to cover some off-hours minor-stake purchases

_ Financial Services Minister Tatsuya Ito indicated Wednesday the open tender regulations should cover stock acquisition deals in off-hours trading involving less than one-third of outstanding shares in a company, if the purchasers intend to eventually obtain more than one-third.

http://asia.news.yahoo.com/050420/kyodo/d89j2vtg0.html

 

Regulator quizzes Frankfurt exchange's HF shareholders

Apr-19-2005 - The Frankfurt Stock Exchange supervisory authority has asked several shareholders, including two hedge funds, about the size of their interest in the exchange's operating company and their views on its future direction

http://www.marhedge.com/news/Cover.Hedge.asp?s=HedgeH-2005-04-19-15-42-13p1.htm

 

Sutherland Study Finds It Often Pays to Litigate Against NASD

It often pays to fight back in NASD disciplinary proceedings, according to a new study by Sutherland Asbill & Brennan attorneys Brian Rubin and Christian Cannon. The study, titled "The House That the Regulators Built: An Analysis of Whether Respondents Should Litigate Against NASD," will be published in an upcoming edition of BNA Securities Regulation and Law Report.

http://biz.yahoo.com/bw/050419/195757.html?.v=1

 

Banks warn FSA over US-style fines

The banking industry has warned the financial regulator against adopting a more "aggressive" US style of enforcement by increasing fines for wrong-doers.

http://news.ft.com/cms/s/9b41c164-b139-11d9-9bfc-00000e2511c8.html

 

France Weighs Mutual Fund Sales Rules

French regulators are teaming up to propose rules for brokerages, banks and insurance companies on how they should disclose mutual fund sales practices.

http://www.institutionalinvestor.com/default.asp?page=1&SID=496488&ISS=13937&type=14

 

SEC: Office Of The Chief Accountant Selects Two Professional Accounting Fellows

http://www.exchange-handbook.co.uk/news_story.cfm?id=52480

 

Managed Futures - Managed Funds

 

Australia's Colonial eyes 5-fold jump in hedge fund assets

SINGAPORE, April 20 (Reuters) - Australia's Colonial First State is aiming for a five-fold jump in its hedge fund assets to $1 billion by 2008 as more Australian and Asian pension funds contribute to the burgeoning asset class, the money manager said.

http://au.biz.yahoo.com/050420/19/45o5.html

 

Hedge Fund Investors Losing Appetite For Convertible Arbitrage Strategies, by Phillip Morton, Investors Offshore.com 20

TARA Capital, the European hedge fund advisory firm has released the results of its latest Hedge Fund Strategy Barometer, which has highlighted the accelerating shift by investors away from Convertible Arbitrage strategies and towards the increasingly popular Global Macro strategies.

http://www.investorsoffshore.com/asp/story/storyinv.asp?storyname=19580

 

Paper brings regulation of hedge funds a step closer

Johannesburg - Plans to legitimise the hedge fund industry took a significant step forward yesterday with the release of a discussion paper on how the R7 billion industry can be brought into the regulatory fold.

http://www.businessreport.co.za/index.php?fSectionId=561&fSetId=304&fArticleId=369888

 

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

 

Merrill Lynch Unveils Buyback; Profit Off

NEW YORK (Reuters) - Merrill Lynch & Co. (MER.N: Quote, Profile, Research) , the biggest U.S. brokerage, on Tuesday unveiled a $4 billion stock buyback plan and raised its quarterly dividend 25 percent as it reported a decline in profit.  Merrill said first-quarter net income slipped 3 percent to $1.21 billion from a record $1.25 billion last year, though earnings per share were unchanged at $1.21 as a previous buyback plan reduced shares outstanding.

http://www.reuters.com/financeNewsArticle.jhtml?type=businessNews&storyID=8227655

 

FIA IT Division Annual Meeting

May 19, 2005, Hotel Allegro, Chicago

https://www.futuresindustry.org/fiaitdiv-2549.asp

 

Knight Trading 1Q Profit Falls Sharply

Knight Trading Group Inc., which provides trade execution and asset management services, on Wednesday said first-quarter earnings fell sharply in "challenging" market conditions as the company undertakes a reorganization of its equities operations.

http://biz.yahoo.com/ap/050420/earns_knight_trading.html?.v=1

 

India calls for collective effort to deal intl trading system

Observing that the current world paradigm was defined by globalisation, India today said Asian and African countries should act collectively to deal with issues relating to international trading system and global financial architecture to ensure a win-win situation for themselves.

http://www.outlookindia.com/pti_news.asp?id=293373

 

R.F. Lafferty Options Guru Conference 

http://www.laffertyny.com/conference.php

 

Schwab and Boys & Girls Clubs of America Survey Shows Teens on Urgent Need of Personal Finance Education

While youth are commonly looked to as the beacon of the future, today's youth may be destined to repeat the previous generation's missteps in money management unless they get help, according to a recent survey* by the Charles Schwab Foundation and Boys & Girls Clubs of America .

http://biz.yahoo.com/prnews/050420/sfw011.html?.v=6

 

InfoDyne Expands TPS+Plus Ticker Plant to Provide Support for CME & CBOT Data Feeds

InfoDyne Corporation, a leading provider of direct exchange feed ticker plant technology that is essential to algorithmic trading, today announced expansion of its TPS+Plus product line to include support for the market feeds of the Chicago Mercantile Exchange and Chicago Board of Trade.

http://biz.yahoo.com/prnews/050419/cgtu070.html?.v=4

 

Patsystems sees Q2 pretax 'roughly break-even' after 'much reduced' Q1 loss

LONDON (AFX) - Patsystems PLC said it expect its pretax result for the second quarter of 2005 to be 'roughly break-even', while it expects a small 'trading profit', that before exceptional items, amortisation of goodwill, interest and taxation.

http://www.iii.co.uk/news/?type=afxnews&articleid=5272419&subject=companies&action=article

 

Additional Listing (Patsystems PLC)

Patsystems PLC 19 April 2005 Patsystems plc (the "Company") Additional Listing Application has today been made for the admission of 60,000 ordinary shares of 1p each in the Company (the "New Ordinary Shares" or the "Shares") to trading on the Alternative Investment Market of the London Stock Exchange ("Admission").

http://uk.biz.yahoo.com/050105/5/1wae.html

 

eSpeed First Quarter 2005 Earnings Announcement at Close of Market on Monday, May 9, 2005

eSpeed, Inc. , a leading developer of electronic marketplaces and related trading technology for the global capital markets, will announce first quarter 2005 results after the close of market on Monday, May 9, 2005, and host a conference call Tuesday, May 10, 2005, to discuss results. -0- *T WHO:

http://biz.yahoo.com/bw/050420/205270.html?.v=1

 

TradeStation Group Reports Record Revenues, Income Before Income Taxes, DARTs and Brokerage Accounts for 2005 First

TradeStation Group, Inc. today reported record quarterly revenues of $21.6 million, record quarterly income before income taxes of $5.9 million, record daily average revenue trades of nearly 40,000, and record total brokerage accounts of nearly 20,000.

http://biz.yahoo.com/prnews/050420/flw004.html?.v=8

 

MONEY TALK$...

April 20, 2005 -- Attempting to stem the tide of defections that have been plaguing the firm, Morgan Stanley is handing out lucrative retention bonuses to select members of its senior-most ranks, The Post has learned.

http://www.nypost.com/business/44886.htm

 

Morgan Stanley: Too Pliant a Board

S&P thinks the main worry for investors is weakening board independence in the wake of a power struggle at the financial-services giant4

http://www.businessweek.com/investor/content/apr2005/pi20050420_0653_pi015.htm

 

Some Extra Heft May Be Helpful, New Study Says

People who are overweight but not obese have a lower risk of death than those of normal weight, federal researchers said.

http://www.nytimes.com/2005/04/20/health/20fat.html?hp&ex=1114056000&en=6e7eab00212580b2&ei=5094&partner=homepage

 

***** Thank you. 

 

John's Comments

 

TT Awarded another European Patent

 

Trading Technologies was awarded another European patent on its MD Trader technology yesterday when the Duchy of Grand Fenwick granted it a patent.  Grand Fenwick is noted for its Pinot Grand Fenwick wine and for being a home to proprietary electronic traders who favor using a mouse to trade.

 

*********

 

QWAFAFEW Chicago

 

The twenty-fifth meeting of Chicago QWAFAFEW (Quantitative Work Alliance for Applied Finance, Education & Wisdom) will be held on THURSDAY, APRIL 21ST  2005 from 5:00 to 7:00 PM at the CHICAGO MERCANTILE EXCHANGE, 20 S. Wacker Drive, Chicago.

 

The meeting’s theme is: “ELECTRONIC TRADING AND UNDERSTANDING THE DNA OF A TRADER”

 

Admission is $10 with refreshments provided.  Please RSVP to Chicago@qwafafew.org by Tuesday, April 19th.

The panelists for April’s meeting will be the co-creators of TraderDNA™:

Mr. Ben Van Vliet, Associate Director of the M.S. in Financial Markets program, Stuart Graduate School of Business, Illinois Institute of Technology in Chicago, and

Mr. David Norman, Director of Market Technology at the Center for Financial Markets, IIT, and Chairman of the Institute for Market Technology.

 

Lectures will be supplemented by an interactive, hands-on, electronic mock trading session in the CME’s â Globex â Learning Center.

Following the lecture and mock trading session, the evening will be concluded with an open Q&A forum.

The moderator for the evening will be David Barone from Turning Point Securities L.L.C.

 

Chicago QWAFAFEW would like to thank Mr. Rick Redding, Ms. DeBorah Lenchard and the CME’s Education Department for hosting its April meeting.

 

*******

 

Photo from yesterday’s CME Cheese story in the Chicago Tribune

 

 

Cheese markets sour deal?
Protester John Peck, in a cow suit, takes photos of the demonstration in front of the Chicago Mercantile Exchange Monday as supporters protest alleged dairy price manipulation by traders.
(Tribune photo by Chuck Berman)
April 19, 2005

http://www.chicagotribune.com/news/custom/photos/chi-pod-pix,1,3508151.photogallery?coll=chi-homepagenews-utl&index=3

 

**** There were also 2 kids in cow suits.  

 

******

 

Brent Crude Watch

 

IPE Brent Volume: 75,581

NYMEX Brent Crude Volume: 11,615

NYMEX Percent of Total Volume: 13.32%

 

********

 

Chicago Electronic Trading Scorecard for April 19, 2005

 

Percent Electronic

 

CBOT: 67.06%

CME: 66.52%

CME Eurodollars: 84.17%

CME Live Cattle: .57%

CME Currency Products: 77.08%

CBOT Soybeans: 1.06%

 

CBOT Options: 5.45%

CME Options: 2.87%

 

Volume 

 

OneChicago Volume: 1673

Eurex US Volume: 11,398

Euronext.liffe Eurodollar Volume: 49,257

CBOE Futures Exchange Volume: 387

 

Market Share

 

CBOT 100 oz. Gold Volume: 1442

NYMEX 100 oz. Gold Volume: 58,585

CBOT Share: 2.40%

 

CBOT 5000 oz. Silver Volume: 271

NYMEX 5000 oz. Silver Volume: 24,374

CBOT Share: 1.10%

 

CBOT Mini Gold Volume: 1281

CBOT Mini Silver Volume: 550

 

CME Emini Russell 1000 (100X) Volume: 3194

Eurex US Mini Russell 1000 (100X) Volume: 1815

NYBOT Mini Russell 1000 (50X) Volume: 94

CFE Mini Russell 1000 (100X) Volume: 0

 

CME Emini Russell 2000 Volume: 115,438

Eurex US Mini Russell 2000 Volume: 8379

CFE Mini Russell 2000 Volume: 143

 

Notes: The CME set a new daily Globex volume record in Eurodollars with 2,503,720 contracts traded.  The CBOT is quietly seeing some small volume come into its Bund and Bobl contracts.

 

Liffe Eurodollar Over-Under

 

Liffe/Globex: 1.93%

Liffe/CME: 1.63%

 

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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