April 26, 2005
Lead Stories
CME quarterly profit up on record trading volume
CHICAGO, April 26 (Reuters) - Chicago Mercantile Exchange Holdings Inc. (CME.N: Quote, Profile, Research) , parent of the largest U.S. futures exchange, on Tuesday said quarterly profit rose on a jump in quarterly derivatives trading volumes. CME posted first-quarter net income of $71 million, or $2.04 per share, up from $46.1 million or $1.35 per share a year earlier. Analysts had expected earnings at an average of $1.93 per share, according to Reuters Estimates. Record first-quarter revenue of $214 million was close to the average forecast of $214.45 million. "We are continuing to benefit from secular trends, including increased investor sophistication and more active investment strategies that are driving a shift toward exchange-traded derivatives," said CME Chairman Terry Duffy.
http://www.reuters.com/newsArticle.jhtml?type=topNews&storyID=8295480
Chicago Mercantile Exchange Holdings Inc. Reports Record Revenues and a 54 Percent Increase in Net Income for First-Quarter 2005; Diluted Earnings Per Share Rose 51 Percent to $2.04
Declares Quarterly Dividend of 46 Cents Per Share
http://www.cme.com/about/press/cn/05-581Q05Financials13003.html
Just about everybody knows that in casinos, the house always wins in the end. Although the Chicago Mercantile Exchange (NYSE: CME - News) would almost certainly not like being compared to a casino, the two do share a common trait. Win or lose, the Merc gets a piece of every commodity and derivative trade executed on its platforms.
http://biz.yahoo.com/fool/050426/111452579609.html?.v=1
Last Trade: 190.27
Trade Time: 12:41PM ET
Change: 12.26 (6.89%)
http://finance.yahoo.com/q?s=CME
Wall Street's Endangered Species
The New York Stock Exchange's sudden decision to merge with electronic trading system Archipelago, coupled with a similar announcement only days later by Nasdaq that it would acquire Instinet's electronic trading market, means that the Wall Street floor trader is now as close as it ever has been to being an endangered species. In fact, the floor trader could be extinct by the year 2010: according to an informal Wall Street Journal Online survey conducted immediately after news of the NYSE-Archipelago merger broke, a majority of readers expected that the position of the Wall Street floor trader would no longer exist within five years.
http://www.techcentralstation.com/042605A.html
2005 Study of The Options Investor
http://www.888options.com/news/presentations/harris_study_2005.pdf
THE MORE AFFLUENT, ACTIVE AND STRATEGIC INVESTORS ARE USING OPTIONS AS PART OF A MORE DIVERSE PORTFOLIO ACCORDING TO A NEW STUDY
http://www.888options.com/news/news_archives_05/apr_25.jsp
TOKYO, April 26 (Reuters) - The Tokyo Stock Exchange (TSE), Asia's biggest bourse, reported on Tuesday a 39.5 percent rise in group recurring profit for the last business year as increased trading volume led to higher revenue.
http://asia.news.yahoo.com/050426/3/1zzmv.html
QUICK EXIT AT AMEX
QUICK EXIT AT AMEX April 26, 2005 -- American Stock Exchange President Peter Quick is expected to leave his job of five years, The Post has learned. No departure date has been set.
http://www.nypost.com/business/45337.htm
Exchange Consolidation Contagion
NYSE And Nasdaq Power Up Electronic Trading April 25, 2005
Both exchanges are buying key competitors to get hold of high-speed tech platforms
In a sign of how electronic trading is changing financial markets, the 213-year-old New York Stock Exchange plans to merge with Archipelago Holdings Inc., an all-electronic exchange founded eight years ago. Two days after that deal was unveiled last week, Nasdaq said it would buy Inet, Instinet Group Inc.'s E-trading platform, for $934 million.
http://www.informationweek.com/story/showArticle.jhtml?articleID=161501256&tid=13690
Nasdaq and
The two main stock markets in the
http://www.computerweekly.com/Article138163.htm?src=rssNews
Ex-Morgan Stanley banker Mack joins Langone bid
NEW YORK, April 25 (Reuters) - Former Morgan Stanley President John Mack has joined a team led by financier Kenneth Langone that is exploring a possible bid for the New York Stock Exchange, a source close to the matter said on Monday.
http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8288574
Bid to challenge NYSE merger
Coalition of top Wall Street firms urged by LI investor mulls offer for Big Board, or a way to boost value of exchange's deal with Archipelago
Langone trying to scuttle NYSE-Archipelago merger
http://www.suntimes.com/output/business/cst-fin-arch26.html
Langone's Bid for NYSE May Include Shutting Floor, Person Says
April 26 (Bloomberg) -- Billionaire Kenneth Langone, who's considering a takeover bid for the New York Stock Exchange, wants to close its trading floor, ending the way the world's biggest stock market has operated for more than two centuries.
http://quote.bloomberg.com/apps/news?pid=10000006&sid=a.glGRJAoj.w
Langone outlines plan to buy NYSE, scuttle merger
Ex-NYSE director introduces powerful Wall Street ally
(AP) — Seat holders of the New York Stock Exchange were told by former NYSE director Kenneth Langone Monday that the Big Board's deal to merge with Archipelago Holdings Inc. would shortchange them and the exchange, sources told The Associated Press.
http://chicagobusiness.com/cgi-bin/news.pl?id=16262
Can Langone derail NYSE deal?
Most observers doubt that the Invemed chairman can derail the NYSE-Archipelago deal announced last week.
http://news.yahoo.com/news?tmpl=story&u=/thedeal/20050426/bs_deal_thedeal/canlangonederailnysedeal
Ken Langone Lines Up Hedge Fund Backer
It's high-stakes poker for the NYSE.
http://www.forbes.com/markets/2005/04/25/cx_lm_0425nyse.html?partner=rss
Is Atticus Capital playing the stock and block game with Archipelago?
Atticus Capital has filed ownership of 5.09 percent of Archipelago common stock. Is its strategy similar to its strategy with Deutsche Boerse? And is that good or bad?
http://www.yeald.com/Yeald/a/34961/article.html
Effort to halt NYSE merger gains steam
Former New York Stock Exchange board member Kenneth Langone's effort to derail a merger of the NYSE and electronic exchange Archipelago gained traction Monday when a Wall Street heavyweight joined the effort.
BIG BOARD IPO/MERGER IS GIVING GRASSO MORE AGITA
April 26, 2005 -- THIS has been a bad month for Dick Grasso even if we didn't have the pleasure of seeing him wince. Sure, the toppled head of the New York Stock Exchange still has (for now) the $200 million-plus in compensation from his failed reign over an organization that was so weakened it is being forced to merge under duress with an electronic trading system that Grasso despised. But Grasso's ouster in 2003 also caused him to miss out on his treasured IPO, which would have allowed the archaic NYSE to sell stock to the unsuspecting public for the purpose of enriching Grasso and his cronies. Forget his pay package, the initial public offering would have been Grasso's real money maker.
http://www.nypost.com/business/45316.htm
KEN'S REVENGE
April 26, 2005 -- Ken Langone's hard charge to topple the New York Stock Exchange merger is not impressing insiders.
Seat owners yesterday said they were sure the NYSE was worth more than 70 percent of a Big Board-Archipelago combo but that Langone's effort to topple the deal was unlikely to succeed.
http://www.nypost.com/business/45336.htm
NYSE-Archipelago Deal May Affect Trading
While some fans of extended-hours stock-trading are cheering the planned merger between the New York Stock Exchange and Archipelago Holdings Inc., it's not clear that the deal will actually do much to encourage investors to buy and sell stocks outside of the Big Board's normal operating hours.
http://news.yahoo.com/news?tmpl=story&u=/ap/20050425/ap_on_bi_ge/extended_trading_1
By Steven R. Strahler
The planned merger between the New York Stock Exchange and the upstart electronic stock market Archipelago Holdings Inc. takes dead aim at
Beyond bringing computer-based trading capabilities to the Big Board, the merger primes the New York Stock Exchange (NYSE) to target financial futures and listed options trading — products invented in
http://chicagobusiness.com/cgi-bin/news.pl?id=16242
CME says exchange mergers have no direct impact
CHICAGO, April 26 (Reuters) - A rapidly shifting competitive landscape among U.S. stock exchanges should have no direct impact for the Chicago Mercantile Exchange (CME.N: Quote, Profile, Research) , CME chief executive Craig Donohue said on Tuesday. "I don't see any implications for the CME" from the proposed merger of the New York Stock Exchange and the electronic Archipelago Holdings Inc. (AX.P: Quote, Profile, Research) exchange, Donohue said on a call with analysts after the CME reported first-quarter earnings.
http://www.reuters.com/newsArticle.jhtml?type=topNews&storyID=8298026
Swiss Bourse Chairman: SWX Would Reject Takeover Advances
Exchange News
CBOT Trader Newsletter: April 25, 2005
http://www.cbot.com/cbot/pub/cont_detail/0,3206,1027+27878,00.html
CBOT Strike Price Notice, April 26, 2005
http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+27890,00.html
ISE Weekly Listings
http://phx.corporate-ir.net/phoenix.zhtml?c=176358&p=irol-newsArticle&ID=700667&highlight=
Deutsche Börse Starts New Corporate Bond Index
New RDAX index first to comprise corporate bonds from DAX companies/ Bond index scheduled to start on May 9
Lord Peter Levene Resigns From Deutsche Börse’s Supervisory Board
Deutsche Börse announced the resignation of Lord Peter Levene as a member of the company’s Supervisory Board.
Deutsche Boerse management loses key supervisory board ally
Peter Levene, the head of the world's leading insurance market Lloyd's, is giving up his seat on the supervisory board of Deutsche Boerse, the German stock market operator announced.
Deutsche Boerse/UK Relations Seen Poorer Now
0943 GMT [Dow Jones] Resignation of Deutsche Boerse's (DB1.XE) Peter Levene from supervisory board is not big news, but suggests some disquiet within Deutsche Boerse at the moment, says analyst at Sal. Oppenheim.
http://www.newratings.com/analyst_news/article_794846.html
Prudential Financial Derivatives Now Using NYBOTs Electronic Order Routing System
http://www.nybot.com/releases/pressRelease.asp?releaseID=868
MCX launches Mentha oil contract on e-platform
Multi Commodity Exchange of India Ltd. (MCX) on Tuesday announced the launch of Mentha Oil Futures. The Mentha Oil contracts would be attractive for those who want to hedge for their business requirements as well as for those who want to seek cover against rising prices.
http://www.indiainfoline.com/news/news.asp?dat=57613
Introduction of New Corporate Symbol Mark [April 25,2005]
http://www.tfx.co.jp/en/newsfile/05/newcilogo_e20050425.html
Financial Highlights
http://www.tse.or.jp/english/ir/financials/highlights/index.html
Compliance Quarterly (Inspection & Market Surveillance)
http://www.tse.or.jp/english/guide/compliance/quarterly/index.html
NASDAQ selects HP to upgrade trading equipment
NASDAQ, the largest
http://www.enterprisenetworksandservers.com/monthly/art.php/1394
Date of Letter |
Date Filed |
DCM |
Description |
04/22/2005 |
CME |
CME issued a regulatory advisory regarding Rule 530 and made changes to its headset policy in the Interest Rate quadrant. |
|
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/dig042505.txt
CFTC’S TECHNOLOGY ADVISORY COMMITTEE TO MEET THURSDAY, APRIL 28, 2005
Washington, D.C. – The Commodity Futures Trading Commission’s (CFTC) Technology Advisory Committee (TAC) will meet on Thursday, April 28, 2005, from 1:00 p.m. to 4:00 p.m., at the Commission’s Washington, D.C., headquarters, Three Lafayette Centre, 1155 21st Street, N.W., in the first-floor hearing room.
http://www.cftc.gov/opa/press05/oparemindertac.htm
Regulators Query Two More Bear Stearns Clearing Execs
Two more top executives in Bear Stearns' (BSC:NYSE - commentary - research) giant clearing operation were drawn into the long-running investigation of the firm's role in the mutual fund trading scandal. John Callanan, a senior managing director, and Leslie Zuckerman, a managing director, disclosed last week that regulators at the New York Stock Exchange have demanded statements from them in conjunction with the Big Board's investigation. The Wall Street executives disclosed the development on their broker registration statements.
SEC Encourages Particpation in Its Xbrl Voluntary Program
http://www.sec.gov/news/press/2005-64.htm
SEC and
http://www.sec.gov/news/press/2005-63.htm
Daniels leaving U of T
Law school dean headed committee to design single regulator model
http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=28531&IdSection=9&cat=9
SEC OKs Rules Regarding Road Shows
The Securities and Exchange Commission announced Monday it has approved NASD and New York Stock Exchange rules to prohibit research analysts from taking part in "road shows" to pitch securities offerings.
http://news.yahoo.com/news?tmpl=story&u=/ap/20050425/ap_on_bi_ge/sec_analysts_2
SEC OKs NYSE, NASD Rules Barring Analysts From Road Shows
WASHINGTON (Dow Jones)--The wall between investment banking and research is being fortified. On Monday, the Securities and Exchange Commission announced it has approved NASD and New York Stock Exchange rules to prohibit research analysts from taking part in "road shows" to pitch securities offerings.
Keep It Simple
City watchdog, the FSA (Financial Services Authority), has set out its final rules and guidance for implementing European requirements on product disclosure information for consumers, in relation to collective investment schemes, such as Unit Trusts and OEICs, that hold a UCITS certificate enabling them to be marketed in other EEA countries.
http://uk.biz.yahoo.com/050426/22/fhan3.html
Broker first to go on trial in late-trade scandal
Eliot Spitzer's probes of Wall Street, mutual funds and the insurance industry have destroyed a number of careers and extracted nearly $6 billion in penalties from embarrassed companies and executives. But the state attorney general has never had to bring a major case in one of those investigations in criminal court until today, when jury selection begins in the trial of Theodore Sihpol III, the first person arrested in Spitzer's investigation of the $7.6-trillion mutual fund industry.
http://www.newsday.com/business/ny-bzsihp264233515apr26,0,7495109.story?coll=ny-business-headlines
Managed Futures - Managed Funds
Pulp Story
Cerberus, Goldman Sweeten Junk Deal With Novel Hedge
Cerberus Group and underwriter Goldman Sachs have added an innovative term to a $775 million high-yield bond to protect investors from swings in commodity prices.
http://www.institutionalinvestor.com/default.asp?page=1&SID=498570&ISS=13937&type=23
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
The Bull Market in Financial Tech
New tools and capabilities are transforming how Wall Street and individual investors operate. This time, it could mean a safer boom
http://www.businessweek.com/technology/content/apr2005/tc20050426_8635.htm
TradeWeb to Roll Out CDS: Toffey
April 25, 2005 - Multidealer platform Thomson TradeWeb plans to offer credit default swap trading later this year, said CEO Jim Toffey during a panel at the Bond Market Association's annual meeting in
http://www.securitiesindustry.com/article.cfm?articleid=15372
Offer Update (Refco Trading (
Dawnay, Day Corporate Finance Limited ("Dawnay Day") is pleased to announce, on behalf of Refco Trading Services (UK) Limited ("Refco"), that the closing date
of the Offer for the whole of the issued share capital of EasyScreen plc ("EasyScreen") not already owned by Refco ("the Offer") has been extended to 1pm
on 9 May 2005.
http://uk.biz.yahoo.com/050426/5/2i6g.html
Paper on “insider trading” in credit markets.
Recent press reports have highlighted the joint trade-association project on handing material non-public credit-market information in the context of the EU Market Abuse Directive. Please note that the paper remains in Exposure Draft form (issued for public comment in January 2005), as the associations complete their approval processes. The associations expect to make an official announcement when the paper is finalized.
https://www.isdadocs.org/press/press011205.pdf
TD Waterhouse Announces Huge Success of the Private Giving Foundation
Foundation to disburse $735,000 to charities in 2005
http://www.newswire.ca/en/releases/archive/April2005/26/c9868.html
Thomson Reports First-Quarter 2005 Results
Revenues rose 10%, operating profit climbed 16%, and earnings doubled from year-ago period; Annual dividend increased $0.04 per share
http://www.newswire.ca/en/releases/archive/April2005/26/c0439.html
DTCC Forms Alternative Investment Products Advisory Committee
The Depository Trust & Clearing Corporation today announced the formation of an industry advisory committee on alternative investment products to develop an automated, centralized and streamlined approach to the processing of these instruments.
http://biz.yahoo.com/bw/050426/265709.html?.v=1
SunGard Launches FAME Exchange Traded Funds Data Offering
SunGard announced today that it has added The Depository Trust & Clearing Corporation's
http://biz.yahoo.com/bw/050425/255929.html?.v=1
NYSUT blows the whistle on investment firm
NYSUT officers Dick Iannuzzi and Maria Neira chat; a step behind is officer Ivan Tiger. Blowing whistles and chanting, "Hey, hey, ho, ho - Schwab's greed has got to go," New York State United Teachers and 16 other organizations demonstrated outside the Charles Schwab Corp. in
http://www.nysut.org/newyorkteacher/2004-2005/050428schwab.html
eSignal Releases QuoTrek 1.2 With New Trading Access and Support for the Latest Intel-Based Wireless PDA Solutions
eSignal, a division of Interactive Data Corporation (NYSE: IDC) and a leading provider of streaming, real-time financial market data, news, analytics and decision support tools to professional and individual traders, today announced the immediate availability of QuoTrek(R) 1.2 - eSignal's wireless quote and market information service for mobile phones and PDAs.
http://www.rednova.com/news/display/?id=146475&source=r_technology
Pirates seize $US4.6m shipload of tin off
http://www.stuff.co.nz/stuff/0,2106,3260236a6026,00.html
TOKYO, April 26 (Reuters) - E*Trade Securities Co. Ltd. , Japan's biggest online brokerage, reported a more than doubling in its full-year profit on Tuesday as its discount strategy attracted new accounts and boosted trading turnover.
http://asia.news.yahoo.com/050426/3/1zzej.html
From Traders to Tech Support
The big firms are switching from selling stocks to selling software that lets clients do it themselves. JP Morgan's Emily Portney explains
http://www.businessweek.com/technology/content/apr2005/tc20050426_3514.htm
Price Group News
Price Asset Management, Inc., an affiliate of the Price Futures Group, Chicago, is pleased to announce the addition of three industry veterans and a strategic alliance with Daniel B. Stark & Company.
The trio, Kip Thompson, Todd Brown and Lisa Halco, of Granite Asset Management,
Kip Thompson, Director of Institutional Sales, brings 20+ years of futures practice including research, portfolio construction and CTA monitoring. Kip will direct turnkey portfolio solutions utilizing managed futures for clients ranging from high net-worth individual to multi-billion dollar financial institutions.
Todd Brown, Branch Manger, has been involved in managed futures and alternative investments since the early 1990’s. Todd started his career at Jack Carl Futures, subsequently becoming a Vice President at Granite Asset Management. Todd will concentrate his efforts on offering alternative assets to individual and high net-worth customers.
Lisa Halco, Director of Operations, has over 15 years of administrative experience, including over eight years in Financial Services. Her previous experience includes operations, administration, and compliance for both Salomon Smith Barney and Man Financial. Lisa is currently the Director of Operations of the west coast branch of PAM in
Daniel Stark of Daniel B. Stark & Company, Inc. also joins PAM, as an affiliated person, but most importantly his involvement will include consultation in developing, monitoring and fine tuning PAM’s fund offerings as well as providing access to his industry research. Since 1989, he has been publishing a well-known CTA performance report. Entitled the STAR 300 this report focuses on the top 300 traders from the 400 plus traders making up the Stark database.
Price Asset Management, Inc. welcomes the opportunity to work with these managed futures professionals and believes they bring an expanded breadth of knowledge and experience to the Price team.
http://www.pricegroup.com/branch.htm
John's Comments
Voluntary Pay Newsletter
I would like to remind the readers of this newsletter that the John Lothian Newsletter is offered on a voluntary pay format. If you find the newsletter valuable, you are asked to pay for it. The newsletter is offered for $95 per year. Details on how to pay are found at www.johnlothiannewsletter.com or you can contact me at johnlothian@johnlothian.com.
******
Emini S&P
Below is a message from the CME about the trading halt of the emini S&P. You can check the CME web site for updates about trading halts and market restarts by visiting the web link below.
E-Mini S&P Market Update The Globex June 2005 and September 2005 E-Mini S&P futures and the June - Sep 2005 calendar spreads have been halted as of 09:52:53 CT.
http://www.cme.com/marketalert
*******
Brent Crude Watch
IPE Brent Volume: 76,800
NYMEX Brent Crude Volume: 16,083
NYMEX Percent of Total Volume: 17.32%
********
Percent Electronic
CBOT: 57.28%
CME: 69.32%
CME Eurodollars: 80.43%
CME Live Cattle: 2.40%
CME Currency Products: 85.64%
CBOT Soybeans: 3.36%
CBOT Options: 9.60%
CME Options: 2.41%
Volume
OneChicago Volume: 4861
Eurex
Euronext.liffe Eurodollar Volume: 71,379
CBOE Futures Exchange Volume: 815
Market Share
CBOT 100 oz. Gold Volume: 779
NYMEX 100 oz. Gold Volume: 31,412
CBOT Share: 2.42%
CBOT 5000 oz. Silver Volume: 231
NYMEX 5000 oz. Silver Volume: 21,223
CBOT Share: 1.08%
CBOT Mini Gold Volume: 688
CBOT Mini Silver Volume: 384
CME Emini Russell 1000 (100X) Volume: 3357
Eurex
NYBOT Mini Russell 1000 (50X) Volume: 211
CFE Mini Russell 1000 (100X) Volume: 0
CME Emini Russell 2000 Volume: 120.109
Eurex
CFE Mini Russell 2000 Volume: 322
Notes: The CBOT’s 100 oz. Gold futures hit a new record high again, crossing the 5000 contract level for the first time. Open interest stood at 5014 as of this morning.
Liffe Eurodollar Over-Under
Liffe/Globex: 6.07%
Liffe/CME: 4.94%
Regards,
John J. Lothian
Publisher
John Lothian Newsletter
|
||||||||||||||
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.
This is an opt-in newsletter. If you wish to unsubscribe, please check the address of list you are receiving the newsletter from and then click on the appropriate link below.
mailto:johnlothiannewsletter-request@johnlothiannewsletter.com?subject=unsubscribe
mailto:johnlothiannewsletter1-request@johnlothiannewsletter.com?subject=unsubscribe
mailto:johnlothiannewsletter2-request@johnlothiannewsletter.com?subject=unsubscribe
mailto:johnlothiannewsletter3-request@johnlothiannewsletter.com?subject=unsubscribe
mailto:johnlothiannewsletter4-request@johnlothiannewsletter.com?subject=unsubscribe
mailto:johnlothiannewsletter5-request@johnlothiannewsletter.com?subject=unsubscribe
If the unsubscribe links above do not work for you, please send an email to johnlothian@johnlothian.com with unsubscribe in the subject line.
This is a voluntary pay newsletter. The voluntary pay fee for a 1-year subscription is $95, or $55 for 6-months. For more details about this, or to sign up to receive the newsletter, please go to www.johnlothiannewsletter.com.