May 5, 2005

 

Lead Stories

 

Single-stock futures fight back

By Jeremy Grant in Chicago

OneChicago has shown that it is attracting significant volumes of trading in single-stock futures, as the US-based exchange continued with an investor roadshow.

Trading this year in the exchange's 175 single-stock futures products rose by 81 per cent, compared with the same period last year, the exchange said.

John Lothian, president of the electronic trading division of broker Price Futures Group, said the venture appeared to be attracting "genuine interest".

http://news.ft.com/cms/s/1b7f2e74-bd02-11d9-b1e3-00000e2511c8.html

 

La Salle Street cheers revival of 'long bond'

BY DAVID ROEDER Business Reporter

The Bush administration made La Salle Street's day Wednesday.  In an about-face, the Treasury Department said it is considering whether to re-issue 30-year bonds, an old reliable to many investors, so the government can cover record deficits.  Reviving the "long bond'' would return an investment option to insurance companies and pension funds that demand secure yields over time. It also would be a money-making opportunity for brokers, who would have a new product to sell.

http://www.suntimes.com/output/business/cst-fin-bond05.html

 

Return of US long bond would be a boost for CBOT

Wed May 4, 2005 03:46 PM ET

CHICAGO, May 4 (Reuters) - The Chicago Board of Trade got a boost on Wednesday when the U.S. Treasury Department said it might reintroduce the 30-year bond.

The CBOT's long bond futures contract was the world's busiest for several years and a catalyst for explosive growth at the exchange through the 1980s and 1990s.

"Reintroduction of the 30-year bond would deliver a multitude of benefits to participants in the capital markets," CBOT Chairman Charles Carey said in a statement.

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8390473

 

**** Return of the long bond could also be a big boost for Eurex US’s and Eurex AG’s global clearing link, when approved.

 

'Very good timing'

By Jeremy Grant

The announcement was welcomed by the Chicago Board of Trade, where global trading in Treasury bond and note futures started in 1977, writes Jeremy Grant.

Dan Petree, a veteran bond futures trader, said the news caught traders off guard, with Treasury bond prices falling a point before recovering. But Mr Petree said it was "very good timing for the exchange".

http://news.ft.com/cms/s/9af1d75c-bd01-11d9-b1e3-00000e2511c8.html

 

CBOT Responds to U.S. Treasury Department Announcement on 30-Year Bonds

The CBOT responds to the U.S. Treasury Department announcement on 30-Year Bonds.

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1036+28042,00.html

 

April 2005 Second Busiest Month In NYBOT’s 135-Year History

http://www.nybot.com/releases/pressRelease.asp?releaseID=871

 

CBOE Futures Exchange (CFE) Sets New Single-Day Trading Record May 4, 2005; VIX Futures Also Set New Record

http://www.cboe.com/AboutCBOE/ShowDocument.aspx?DIR=ACNews&FILE=20050504.doc

 

Derivatives business must better state its case, says del Missier 

28 April - The global derivatives industry must make a concerted effort to educate people about the usefulness of derivatives and deal with misconceptions, Jerry del Missier, head of rates and private equity and regional head of Europe for Barclays Capital, told delegates attending Risk’s Global Risk Management Summit in Monte Carlo. “We must embrace transparency as an industry,” he said.

http://www.risknews.net/public/showPage.html?page=218390

 

How the NYSE Merger Will Affect Investors

When the stock market has a big day, TV news is sure to show hundreds of agitated men and women in colored jackets yelling to one another on the floor of the New York Stock Exchange. For more than 200 years, trading at the NYSE has used this "open outcry" auction system. "Specialists" representing sellers and those who represent buyers haggle until a deal is done. But on April 20, the exchange

http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=1198

 

The Tremors From Two Trading Titans

As the Big Board and NASDAQ buy rivals and beef up, how will investors fare?

When the heads of the New York Stock Exchange and NASDAQ announced plans to buy the electronic upstarts that have been eating their lunch lately, there was much talk of how the deals would benefit investors. "We will be more innovative and more efficient," NYSE head John A. Thain promised. "We will offer our customers more choice." And NASDAQ Stock Market Inc. Chief Executive Officer Robert Greifeld said: "Investors will be better served."

http://www.businessweek.com/magazine/content/05_19/b3932123_mz020.htm

 

Environmental Trading News

 

INTERVIEW: NZ's Carbon Tax Will Sway Invest To Australia

INTERVIEW: NZ's Carbon Tax Will Sway Invest To Australia WELLINGTON (Dow Jones)--The New Zealand government's decision to impose a carbon tax on local industries will hurt many businesses and further shift overseas investment toward Australia, a senior official of a key manufacturers' association said Thursday. "This carbon tax does little to put our country on the world map as a safe place to

http://au.biz.yahoo.com/050505/18/4ani.html

 

EEX´ CO2 Emission Allowances Trading With A Restrained Start - 88 Participants In The First Eight Weeks – So Far About 150.000 Allowances Traded – Nationwide Road Show To Inform About Exchange Trading

http://www.exchange-handbook.co.uk/news_story.cfm?id=52755

 

AEP Honored With EPA 2005 Climate Protection Award

COLUMBUS, Ohio, May 4 /PRNewswire-FirstCall/ -- American Electric Power (NYSE: AEP - News) is being recognized by the U.S. Environmental Protection Agency (EPA) this evening with a 2005 Climate Protection Award for demonstrating ingenuity, leadership and public purpose in its efforts to reduce greenhouse gases.

http://biz.yahoo.com/prnews/050504/clw035.html?.v=10

 

Exchange News

 

CBOT Dow Jones Strike Price Notice, May 05, 2005

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+28045,00.html

 

CBOT Strike Price Notice, May 05, 2005

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+28044,00.html

 

E-CBOT Dow Jones Strike Price Notice, May 05, 2005

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+28046,00.html

 

CME Announces Latest Expansion of Equity Index Product Line with Futures on the Highly Successful ETFs  NASDAQ-100® Index Tracking Stock; S&P 500® Depositary Receipts; and iShares Russell 2000®

http://www.cme.com/about/press/cn/05-6513108.html

 

New Weekly 1-Year MidCurve Eurodollar Options

http://www.cme.com/clearing/clr/npadv/12805.html

 

ISE Announces Webcast of Annual Shareholders' Meeting

http://phx.corporate-ir.net/phoenix.zhtml?c=176358&p=irol-newsArticle&ID=705705&highlight=

 

Archipelago Holdings Annual Shareholder Meeting Set for May 10, 2005

http://investor.archipelago.com/phoenix.zhtml?c=140290&p=irol-newsArticle&ID=706074&highlight=

 

NYSE Appoints Leroy M. Whitaker Vice President, Total Remuneration and Diversity

http://www.nyse.com/press/1115203307249.html

 

The Philadelphia Stock Exchange Announces April Volume

http://www.phlx.com/news/pr2005/05pr050505.htm

 

LME Appoints A Director Of Exchange Strategy

http://www.exchange-handbook.co.uk/news_story.cfm?id=52761

 

American Stock Exchange Celebrates 10 Years Of The MidCap SPDR - MidCap SPDR Assets Surpass $7billion With Average Daily Volume Of 1.5 Million Shares

http://www.exchange-handbook.co.uk/news_story.cfm?id=52748

 

 

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/dig050405.txt

 

NASD Charges Oppenheimer & Co. With Thwarting Investigation, Late and Inaccurate Reporting of Thousands of Muni Bond Transactions

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

 

NASD seeking financial disclosure research

Education group asking for grant proposals “that will significantly improve the current disclosure regime”

http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=28705&IdSection=8&cat=8

 

NASD says Oppenheimer & Co. thwarted probe

BOSTON (AFX) - The National Association of Securities Dealers said Thursday it has charged Oppenheimer & Co., formerly known as Fahnestock & Co., with failing to cooperate in an NASD investigation.

http://www.iii.co.uk/news/?type=afxnews&articleid=5287620&subject=markets&action=article

 

NASD Charges Oppenheimer & Co.

It says the brokerage failed to cooperate in a probe of municipal bond trades.

http://www.thestreet.com/_tscrss/stocks/brokerages/10221955.html

 

UK Competition Commission Probes LSE Merger Issues

LONDON -(Dow Jones)- The U.K. Competition Commission (CC) has Thursday published an issues statement as part of its inquiry into the anticipated acquisition by Deutsche Borse AG (DBAG) or Euronext NV (Euronext) of London Stock Exchange plc (LSE).

http://money.iwon.com/jsp/nw/nwdt_rt.jsp?cat=USMARKET&src=704&feed=dji&section=news&news_id=dji-00042520050505&date=20050505&alias=/alias/money/cm/nw

 

SEC Probe Could Move Squawk Boxes Off The Floor

Some experts say firms under Securities and Exchange Commission scrutiny for letting outsiders eavesdrop on internal communications systems called 'squawk boxes' could mean the gadget's days are numbered--at least to retail brokers.

http://www.institutionalinvestor.com/default.asp?page=1&SID=502709&ISS=14977&type=8

 

Managed Futures - Managed Funds

 

Singapore hedge fund 'faces big losses'

One of Singapore's biggest hedge funds is thought to be facing significant derivatives trading losses, following the resignation of one of its main fund managers.

http://news.ft.com/cms/s/e0e4e790-bd01-11d9-b1e3-00000e2511c8.html

 

S'pore hedge fund faces big derivatives-trading losses: report

SINGAPORE: One of Singapore's biggest hedge funds has refused to comment on a newspaper report that it had suffered significant losses through trading in derivatives.

According to a Financial Times report, Aman Capital Fund may have lost more than US$43m or 18% of its assets in April investing in derivatives based on the Korea Composite Stock Price Index.

http://www.channelnewsasia.com/stories/singaporebusinessnews/view/146076/1/.html

 

Warren Buffett Criticizes Hedge Funds Even as He Invests $620 Million in One

When the multibillionaire chief executive officer of Berkshire Hathaway, Warren Buffett, criticized hedge funds recently at his company's annual meeting as a potential threat to the stability of the global markets, many of his followers and shareholders hung on every word. What many did not know, however, is that Mr. Buffett has invested $620 million of Berkshire Hathaway's money in a hedge fund run by the son of a close family friend.

http://www.nysun.com/article/13332

 

Norshield freezes Olympus hedge fund

More trouble for hedge fund industry

http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=28711&IdSection=1&cat=1

 

Stark Investments tests its metal

May-4-2005 - Stark Investments is opposing Noranda Inc's C$3 billion plan to buy the rest of Falconbridge Ltd it doesn't already own

http://www.marhedge.com/news/Cover.Hedge.asp?s=HedgeH-2005-05-04-15-36-27p1.htm

 

Hedge fund co-founder investigated

Tightening the screws on the three men who ran a San Diego hedge fund that collapsed last year amid allegations of fraud, officials have wrested some money from two and are threatening a third with imprisonment.

http://www1.pressdemocrat.com/apps/pbcs.dll/article?AID=/20050504/NEWS/50504003/1036/BUSINESS

 

Singapore hedge fund opens review after loss report

SINGAPORE, May 5 (Reuters) - One of Singapore's biggest hedge funds said on Thursday it was reviewing its operations after a newspaper reported it lost nearly a fifth of its assets in trading of derivatives linked to South Korean stocks.

http://asia.news.yahoo.com/050505/3/20hxo.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

 

Wall Street Pushes Inflation Protection

Securities Keyed to Consumer Prices Gain Favor, But Returns, High Markups Are Issues

http://online.wsj.com/public/article/0%2C%2CSB111524771244525138-94chDYH_KXGFDONwJSQ8H1whjto_20060504%2C00.html?mod=tff_main_tff_top

 

Stock Market Game Program Receives $145,000 Grant From Morgan Stanley For Schools In Atlanta, Baltimore/Washington, D.C., Boston And Miami

http://www.sia.com/press/2005_press_releases/03746475.html

 

The Andersons Reports Strong First Quarter Performance

Maumee, OH-- The Andersons, Inc. announced May 4 first-quarter 2005 net income of $1.0 million, or $0.14 per diluted share. This was an improvement of $1.2 million, or $0.17 per diluted share, from the first quarter of 2004 when the company lost $0.2 million, or $0.03 per diluted share.

http://www.grainnet.com/info/articles.html?type=bn&ID=26214

 

All about commodity derivatives

Trading in derivatives first started to protect farmers from the risk of the value of their crop going below the cost price of their produce. Derivative contracts were offered on various agricultural products like cotton, rice, coffee, wheat, pepper, et cetera.

http://www.rediff.com/money/2005/may/05perfin.htm

 

Data Backup Security Now a Significant Business Liability

Recent AmeriTrade and Time Warner security errors exposed improper corporate backup management as a liability. Toronto security experts explain risks and solutions to prevent breaches.

http://biz.yahoo.com/cnw/050504/data_backup_security.html?.v=1

 

ADP Clearing & Outsourcing Services, Inc. Signs First Operations Outsourcing Client

ADP Clearing & Outsourcing Services , a division of Automatic Data Processing, Inc. , today announced it has signed a long-term contract with National Investor Services Corp , an affiliate company of TD Waterhouse Investor Services, Inc., for ADP's new and first of its kind Operations Outsourcing offering.

http://biz.yahoo.com/prnews/050505/nyth016.html?.v=10

 

Gore to Get Lifetime Award for Internet By ANICK JESDANUN, AP Internet Writer

NEW YORK -     Al Gore may have been lampooned for taking credit in the Internet's development, but organizers of the Webby Awards for online achievements don't find it funny at all.  In part to "set the record straight," they will give Gore a lifetime achievement award for three decades of contributions to the Internet, said Tiffany Shlain, the awards' founder and chairwoman.

http://news.yahoo.com/s/ap/gore_award;_ylt=ArO4WtM0K0dXzxkIOOtDyuCs0NUE;_ylu=X3oDMTA2bm5xNHVjBHNlYwNtcA--

 

Panel to Discuss "Forecasting the Markets and the Economy" on May 17

Two financial experts will discuss the theme, "Forecasting the Markets and the Economy," at the next meeting of Chicago QWAFAFEW.

Chicago, IL (PRWEB via PR Web Direct) May 4, 2005 -- Two financial experts will discuss the theme, "Forecasting the Markets and the Economy," at the next meeting of Chicago QWAFAFEW. This meeting will be held from 5:00 p.m. to 7:00 p.m. on Tuesday, May 17 at the Chicago Board Options Exchange, 400 South LaSalle Street, Chicago. The topics that will be covered include the outlook for the economy, a methodology for market forecasting, the interest-rate outlook, and an industry outlook. The meeting is co-sponsored with the Investments Analysts Society of Chicago, http://www.iaschicago.org.

http://www.prweb.com/releases/2005/5/prweb236941.htm

 

John's Comments

 

Brent Crude Watch

 

IPE Brent Volume: 122,431

NYMEX Brent Crude Volume: 8343

NYMEX Percent of Total Volume: 6.38%

 

********

 

Chicago Electronic Trading Scorecard for May 4, 2005

 

Percent Electronic

 

CBOT: 74.27%

CME: 74.77%

CME Eurodollars: 83.95%

CME Live Cattle: .60%

CME Currency Products: 86.08%

CBOT Soybeans: 2.66%

 

CBOT Options: 6.76%

CME Options: 5.20%

 

Volume 

 

OneChicago Volume: 1612

Eurex US Volume: 8273

Euronext.liffe Eurodollar Volume: 44,086

CBOE Futures Exchange Volume: 4516

 

Market Share

 

CBOT 100 oz. Gold Volume: 802

NYMEX 100 oz. Gold Volume: 38,511

CBOT Share: 2.04%

 

CBOT 5000 oz. Silver Volume: 175

NYMEX 5000 oz. Silver Volume: 19,435

CBOT Share: .89%

 

CBOT Mini Gold Volume: 624

CBOT Mini Silver Volume: 366

 

CME Emini Russell 1000 (100X) Volume: 4546

Eurex US Mini Russell 1000 (100X) Volume: 2651

NYBOT Mini Russell 1000 (50X) Volume: 203

CFE Mini Russell 1000 (100X) Volume: 0

 

CME Emini Russell 2000 Volume: 112,143

Eurex US Mini Russell 2000 Volume: 3667

CFE Mini Russell 2000 Volume: 487

 

Notes: The CBOE Futures Exchange traded a record 4516 VIX futures yesterday.

 

Liffe Eurodollar Over-Under

 

Liffe/Globex: 2.72%

Liffe/CME: 2.29%

 

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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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.

 

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