Untitled Document

May 16, 2005

Lead Stories

SEC mulls execution quality data for options market

BONITA SPRINGS, Fla., May 13 (Reuters) - The U.S. Securities and Exchange Commission may require options markets to compile and publish data on how efficiently customer orders are executed, a top official said on Friday. The SEC is considering a proposal to extend the so-called execution quality rules to the options markets, said Elizabeth King, SEC associate director of market regulation. Stock markets already follow the rules. Addressing the 23rd Annual Options Industry Conference here, King said extending the rule would give brokers more information to help them meet their obligations to their clients.

The SEC is also considering whether to reduce the options market's present trading increments of five cents or 10 cents, depending on the contract price, to one cent.

http://www.reuters.com/newsArticle.jhtml?storyID=8487608

***** Get this. The NBBO, the National Best Bid and Offer, might not be good enough in terms of meeting best execution requirements, according to Ms. King’s comments at the Options Industry Conference. The NBBO might essentially become the NBBOBPIP, the National Best Bid and Offer Before Price Improvement with Pennies. I find this idea troubling, sacrificing speed and surety for mitigating price improvement in sub-tick increments. When would that stop? And more importantly, if I want to trade at a specific price as part of a series of related trades, I don’t want to sacrifice surety and speed in the name of price improvement on one leg. I would no doubt miss getting the other legs and be worse off. I am pretty sure there is room for price improvement in options trading, and I am surer my knowledge of the options industry is questionable, but this potential change to best execution practices just makes me scratch my head.

Drowning by numbers

Blair must convince Bush that carbon trading provides the best chance of dealing with climate change

Larry Elliot

A man suddenly wakes up from a daydream. He is slumbering in the bath with the hot tap running. The bathroom is full of steam and the water is within an inch of the rim. That's global warming. What remains to be seen is whether the tap can be turned off in time.

http://politics.guardian.co.uk/economics/comment/0,11268,1484843,00.html

South American soybean contract coming to CBOT

A South American soybean contract will be offered on the Chicago Board of Trade (CBOT), as of 10 a.m. May 20. The contract will provide market participants in South America with an effective hedging and price discovery tool, according the CBOT.

http://www.iowafarmer.com/articles/2005/05/13/crops/01sasoycontract.txt

CBOT South American Soybeans to Launch Friday!

On Friday, May 20, the The Chicago Board of Trade (CBOT®) will launch CBOT South American Soybean futures, a new contract created to meet the growing risk management needs of producers and global consumers of soybeans grown in Brazil and Argentina.

http://www.cbot.com/cbot/pub/cont_detail/0,3206,723+26342,00.html

CBOT Exchange-Wide Open Interest Sets Record

The CBOT announced today that on Friday, May 13, Exchange-wide open interest rose to a new record.

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1036+28189,00.html

Big clearers to spur freight derivatives

LONDON (Reuters) - The freight futures market for seaborne commodities is finally coming of age as big clearing houses enter the fray, opening up new channels for growth in an already booming market.

This week, the New York Mercantile Exchange (NYMEX), the world's largest energy bourse, will offer clearing and trading of freight derivatives through its online Clearport system. And in July, the London Clearing House (LCH) will launch back into clearing of freight futures, a market that has almost tripled since 2003 to $30 billion on expanding international trade, spurred in part by explosive Chinese economic growth.

http://www.reuters.com/newsArticle.jhtml?type=reutersEdge&storyID=8499052

NYSE trying to sweeten merger deal for members

NEW YORK -- The New York Stock Exchange, responding to concerns from some of its members over terms of its planned acquisition of Archipelago Holdings, said it is looking for ways to appease members who would like to change the stock-and-cash mix of the deal.

http://www.suntimes.com/output/business/cst-fin-arch14.html

Chief executive urges tighter hedge fund rules

FRANKFURT (Reuters) - Hedge funds should face the same regulation on capital requirements and management as banks, Commerzbank Chief Executive Klaus-Peter Mueller said on Sunday, calling for international action.

http://today.reuters.co.uk/news/newsArticle.aspx?type=businessNews&storyID=2005-05-15T133719Z_01_MOL548987_RTRUKOC_0_FINANCIAL-DEUTSCHEBOERSE-HEDGEFUNDS.xml

CBOE To Add DIAMONDS To Hybrid Trading System After July 15

http://www.cboe.com/AboutCBOE/ShowDocument.aspx?DIR=ACNews&FILE=20050513.doc

Glazer backers linked to hedge fund that ousted Börse bosses

Two of the hedge funds bankrolling Malcolm Glazer's £790m takeover of Manchester United have links to the hedge fund that orchestrated the removal of the chairman and chief executive of the German stock exchange Deutsche Börse, it emerged yesterday.

http://news.independent.co.uk/business/news/story.jsp?story=638691

'Locust' attack unleashes storm

The unceremonious dumping last week of Deutsche Börse CEO Werner Seifert and the pending ouster of chairman Rolf E. Breuer following a shareholder revolt led by U.K. hedge-fund, The Children's Investment Fund , or TCI, added more fuel to the fire of an already ugly, anti-Anglo-Saxon, anti-capitalist debate in Germany.

http://www.thedeal.com/NASApp/cs/ContentServer?pagename=TheDeal/TDDArticle/TDStandardArticle&c=TDDArticle&cid=1115235506466

Enemy At The Gates, by Ulrika Lomas, for LawAndTax-News.com, Brussels 16 May 2005

The coup at Deutsche Boerse, which saw investors in Deutsche Boerse remove Chief Executive Werner Seifert and Chairman Rolf Breuer, has led German Chancellor Gerhard Schroeder to consider legislation to limit the power of hedge funds.

http://www.investorsoffshore.com/asp/story/storyinv.asp?storyname=19842

Nasdaq: Back in the Big Leagues?

John A. Byrne

Nasdaq CEO Robert Greifeld comes out swinging in this Q&A with John A. Byrne. He discusses exchange registration, buying an ECN, fee cuts, trade-throughs and much more

http://www.tradersmagazine.com/column.cfm?id=231&year=2005&src=home

The Options Trader - Single stock futures are the talk of the town

by Mark Longo

http://www.tradersmagazine.com/magazine2.cfm?id=1&aid=2201&year=2005&search=application

Environmental Trading News

Govt urged to cut CO2 emissions

The federal government should set firm targets for carbon dioxide (CO2) emissions on the way to a 60 per cent cut by the year 2050, a Senate inquiry recommends.

http://www.smh.com.au/news/National/Govt-urged-to-cut-CO2-emissions/2005/05/16/1116095900111.html

The corn draw

ELBOW LAKE, Minn. - Jerry Larson is a veteran in the corn and ethanol field. Just check out his wall. Up there above the computer is a silver shovel from the Chippewa Valley Ethanol Co. in Benson, Minn., where he was an original board member in 1994, and also was vice chairman.

http://www.grandforks.com/mld/grandforks/business/11656782.htm

Company searches for cures in the golden kernel

JOY POWELL

GOLDEN VALLEY, Minn. - Corn has evolved beyond its use as a simple food and livestock feed to become the key ingredient in ethanol fuel and some plastics. And soon, the kernels could become far more valuable as grist for a new generation of medicines and health-promoting specialty foods. A Golden Valley company called Biorefining Inc. is emerging as a leader in the industry's race to mine the golden kernels for certain components before their starchy remainder is turned to ethanol at corn-processing plants. If it succeeds, the technology could turn ethanol plants into "chop shops" producing corn components for medicines and add millions of dollars a year in revenue to farmers and others who own the ethanol plants.

http://www.aberdeennews.com/mld/aberdeennews/news/11649668.htm

Exchange News

Minneapolis Grain Exchange Announces New President/CEO

The Minneapolis Grain Exchange has named Mark G. Bagan President and Chief Executive Officer. Bagan will assume the duties of this position on July 1, 2005 after the resignation of Kent R. Horsager also effective July 1. Horsager has served as President/CEO for five years.

http://www.wisconsinagconnection.com/story-national.cfm?Id=505&yr=2005

The Minneapolis Grain Exchange has named Mark G. Bagan as president and chief executive officer, effective July 1, 2005.

http://www.mgex.com/newsreleases/BaganRelease051305.html

CBOT Strike Price Notice, May 16, 2005

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+28177,00.html

Agricultural Options Expiration

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+28179,00.html

Dow Jones Industrial Average Index Futures Options Expiration

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+28178,00.html

Financial Options Expiration

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+28180,00.html

Week 2 APS, CME EFP and CME SLEDS Testing

http://www.cme.com/clearing/clr/clradv/13198.html

Review of Collateral Control Limits & Performance Haircuts

http://www.cme.com/clearing/clr/clradv/13190.html

Program Trading Averaged 56.5 Percent of NYSE Volume during May 2-6

http://www.nyse.com/press/1115894334706.html

BEL20® Monthly Selection List

http://www.euronext.com/news/press_releases/0,4159,1732_8275,00.html

Euronext 1st quarter 2005 revenues

http://www.euronext.com/news/press_releases/0,4159,1732_8275,00.html

Freaky Friday

The 13th lived up to its mischievous reputation as several Nasdaq stocks surged as much as 9,000% due to a technical glitch.

http://www.smartmoney.com/onedaywonder/index.cfm?story=20050513&src=&nav=RSS20

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/dig051305.txt

SEC Releases Staff Report Describing Findings from Examinations of Select Pension Consultants

See also Commission Statement

http://www.sec.gov/news/press/2005-74.htm

http://www.sec.gov/info/accountants/stafficreporting.pdf

Full Transcript of TAC April 28 Meeting Now Available

http://www.cftc.gov/files/opa/opatac-transcript042805.pdf

Keynote Address of Acting Chairman Sharon Brown-Hruska before the Energy Risk USA 2005 on Pitfalls of Regulating Risk Taking

http://www.cftc.gov/opa/speeches05/opabrown-hruska-31.htm

CFTC Amends Rule 1.25 Re: Investment of Customer Funds

http://www.cftc.gov/files/opa/oparule125frrelease5-11-05final.pdf

DCIO Amends Interpretation No. 10 Re: Third Party Custodial Accounts

http://www.cftc.gov/files/tm/tmint-10-1.pdf

CFTC Weekly Advisory

http://www.cftc.gov/opa/adv05/opawa20-05.htm

US SEC Uncovers Pension Adviser Conflicts - Source

By Kevin Drawbaugh

WASHINGTON (Reuters) - Examinations of the pension consulting industry by the U.S. Securities and Exchange Commission have found widespread and undisclosed conflicts of interest, said a person familiar with the matter on Sunday. The SEC was expected to announce on Monday the results of a year-long inquiry into how pension consultants are paid, the services they provide and how these arrangements are disclosed.

http://www.reuters.com/newsArticle.jhtml?type=topNews&storyID=8501303

OSC launches Webcast on investment fund continuous disclosure

The Investment Funds Branch of the Ontario Securities Commission has produced a Webcast about a new rule of the Canadian Securities Administrators which sets out the continuous disclosure requirements for all investment funds.

http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=28796&IdSection=8&cat=8

Advocis proposes creation of provincial financial services councils

“Groundbreaking” regulatory plan unveiled at Halifax annual meeting

http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=28785&IdSection=3&cat=3

IDA imposes lifetime ban on Winnipeg broker

BMO Nesbitt rep fined $100,000 for misappropriating funds

http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=28780&IdSection=5&cat=5

NASD to Raymond James: Revamp Your Fee-based Brokerage Practice

Regulator says fee-based programs are not suitable for all customers. May 9, 2005- It’s no secret that more brokerage firms are switching from traditional transaction-based customer billing programs and toward fixed annual fee-based structures.

http://www.financial-planning.com/pubs/fpi/20050509101.html

Fla. Law Firm To Subpoena Regulators For Morgan Suit

A Florida-based law firm representing a class action suit against Morgan Stanley for failure to provide evidence that may have been relevant in past arbitration cases will issue a subpoena to the NASD and the New York Stock Exchange next week to collate contact details of potential class members and to dig up on past arbitration suits.

http://www.institutionalinvestor.com/default.asp?page=1&SID=506278&ISS=14977&type=23

Moneyline Telerate International Submission To The UK Competition Commission Inquiry Into A Possible Acquisition Of London Stock Exchange Plc By Deutsche Börse AG Or Euronext N.V.

http://www.exchange-handbook.co.uk/news_story.cfm?id=52910

Managed Futures - Managed Funds

Deutsche plans hedge fund for Islamic investors

Deutsche Bank plans to start its first hedge fund for Muslim investors, shunning investments in alcohol, tobacco and securities that pay interest. The fund, targeting institutional investors and wealthy individuals in Asia and the Middle East, will probably start by June, according to Geert Bossuyt, head of the bank's Investment Products Group in London. In addition to bonds, equities and real estate, it offers Muslim portfolio managers a wider range of investment options that comply with Shariah, Islam's legal code.

http://www.iht.com/articles/2005/05/16/business/gflede.php

Promising performance from a hedge fund convert

By Pauline Skypala

http://news.ft.com/cms/s/0d7e06b0-c3e2-11d9-a56d-00000e2511c8.html

German govt mulls drafting laws to oversee hedge fund investments

FRANKFURT (AFX) - The German government will examine the possibility of drafting laws to oversee more closely the investment activities of hedge funds in German companies, Die Welt said, citing government spokesman Bela Anda.

http://www.forbes.com/finance/feeds/afx/2005/05/15/afx2028153.html

Henry Swieca to Address MFA's Forum 2005 in Chicago - May 12, 2005

http://www.mfainfo.org/images/PDF/Swieca_to_Address_Forum.pdf

http://www.mfainfo.org/events/forum2005/index.asp

Investing: How fund issues affect investors

http://news.reuters.com/newsArticle.jhtml;jsessionid=KDKG5ACSX04CKCRBAEOCFEY?type=reutersEdge&storyID=8503895

Derivative Consulting offers long/short fund

May-13-2005 - Short-only fund manager Derivative Consulting Group will partner with two long-only managers to offer two long/short equity funds in the third quarter

http://www.marhedge.com/news/Cover.Hedge.asp?s=HedgeH-2005-05-12-14-09-48p1.htm

Hedge Fund Loss Rumours Re-Ignite Debate On Regulation, by Phillip Morton, Investors Offshore.com 16 May 2005

After a week in which the financial markets were rocked by rumours of massive hedge fund losses linked to a debt downgrade of automakers General Motors and Fords, the US Federal Reserve has indicated that the hedge fund industry is unlikely to face tougher regulation to protect the stability of markets.

http://www.investorsoffshore.com/asp/story/storyinv.asp?storyname=19838

Energy Hedge Fund Center Launches Energy Hedge Newsletter Estimates More than $50 Billion at Work in Commodities Trading

The Energy Hedge Fund Center (EHFC) announces the launch of a twice monthly electronic newsletter Energy Hedge. The newsletter will be edited by best selling author Mr. Peter C. Fusaro and Dr. Gary M. Vasey, co-principals of the Energy Hedge Fund Center and will include contributions from writers in both the energy and alternative investment industries. [

http://www.prweb.com/releases/2005/5/prwebxml240492.php

Expert View: Let's play 'spot the joker' - the hedge fund version

http://news.independent.co.uk/business/comment/story.jsp?story=638470

Hedge fund threat looms on Topps

http://news.yahoo.com/news?tmpl=story&u=/thedeal/20050516/bs_deal_thedeal/hedgefundthreatloomsontopps

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

What's Spooking the Street

Corporate earnings are up, oil prices down, and economic indicators healthy. Yet investors remain nervous -- and for good reasons

http://www.businessweek.com/bwdaily/dnflash/may2005/nf20050516_0160_db016.htm

FIA to Hold Disaster Recovery Test

The FIA Information Technology Division will coordinate the second annual industry-wide disaster recovery test on Saturday, Oct. 15. The exchanges will make their back-up sites available for the firms to test either their primary or back up sites with the exchanges. Exchanges also will be testing with clearing banks and market data vendors.

http://www.futuresindustry.org/disaster-2450.asp

All you want to know about financial futures

The popularity of futures contracts in India is contrary to the trend in other parts of the world, where option contracts are more popular than the futures contracts.

http://www.rediff.com/rss/redirect.php?url=http://www.rediff.com/money/2005/may/16perfin.htm

Dubai Commodities Exchange Near Opening, by Lorys Charalambous, for LawAndTax-News.com, Cyprus 16 May 2005

The Dubai Gold and Commodities Exchange (DGCX) announced last week that it would be regulated by the UAE Securities and Commodities Authority (ESCA) which is the regulatory body for the stock exchanges in the UAE Dubai Financial Market (DFM) and Abu Dhabi Securities Market.

http://www.investorsoffshore.com/asp/story/storyinv.asp?storyname=19828

Students From Rep. Bachus's District Take Top Honors In 2005 'Capitol Hill Challenge' Economic Education Competition

http://www.sia.com/press/2005_press_releases/03785935.html

SIA Calls On SEC To Address Issuer Retaliation Against Analysts

http://www.sia.com/press/2005_press_releases/03777259.html

``Profitable Socially Responsible Investing?'' Makes a Convincing and Provocative Case For Values-Based Investing,

Based upon his conviction that socially responsible investing does not mean trading profits for personal or institutional values, author and investment advisor Marc J. Lane delivers a strong and passionate case for profitable SRI in "Profitable Socially Responsible Investing?," his 32nd book.

http://biz.yahoo.com/bw/050516/165207.html?.v=1

BNP keeps lid on risk as markets cool

By Jane Merriman

LONDON (Reuters) - The investment bank arm of BNP Paribas (BNPP.PA: Quote, Profile, Research) has scaled back risk appetite to help it weather growing nervousness in the debt markets, said Philippe Blavier, head of corporate and investment banking at the French bank.

http://news.reuters.com/newsArticle.jhtml;jsessionid=KDKG5ACSX04CKCRBAEOCFEY?type=reutersEdge&storyID=8499079

Instinet Group Announces April 2005 Transaction Information

Instinet Group Incorporated today announced April 2005 transaction data for its two major business segments: Instinet, The Unconflicted Institutional Broker and INET, The electronic marketplace.

http://biz.yahoo.com/bw/050513/135678.html?.v=1

Deal ends Cantor's fight over workplace bullying

The lengthy legal battle between Cantor Fitzgerald and one of its former traders, which shone a spotlight on City trading room culture and workplace bullying, ended in a deal yesterday.

http://news.ft.com/cms/s/6825ba5e-c284-11d9-866a-00000e2511c8.html

Charles Schwab April Trading Declines

Discount brokerage Charles Schwab Corp. on Monday said that client trading activity declined in April compared with the previous month.

http://biz.yahoo.com/ap/050516/charles_schwab_april_trading.html?.v=1

Schwab valuation richer than E-Trade, Ameritrade

NEW YORK (AFX) -- Schwab carries the richest valuation of the three major publicly traded online brokers, which all reported their monthly volume numbers on Friday and Monday amid merger speculation. Schwab's forward P/E is 20.2, according to the most recent data from Thomson Financial.

http://www.iii.co.uk/news/?type=afxnews&articleid=5296895&subject=companies&action=article

Online Investing: Consolidate Or Go Home

As chief executive of E-Trade Financial Corp., Mitchell H. Caplan is determined to be a winner in the multibillion-dollar game of musical chairs in the online investing business.

http://www.washingtonpost.com/wp-dyn/content/article/2005/05/15/AR2005051500763.html

E-Trade maintains earnings forecast as April trades fall

NEW YORK (MarketWatch) - E-Trade on Monday said April daily average revenue trades fell 6.7% among retail customers as the online financial services firm maintained its 2005 earnings target.

http://www.investors.com/breakingnews.asp?journalid=27635606&brk=1

Beef industry believes 'cut-in-Canada' solution is key to survival

CALGARY (CP) - If Stan Eby has his way, the only way cattle will be leaving Canada is in a box. After two years with no international markets for live cattle - and no end in sight - the embattled beef industry believes a cut-in-Canada solution is the key to survival.

http://news.yahoo.com/news?tmpl=story&u=/cpress/20050515/ca_pr_on_na/mad_cow_anniversary_1

Goldman's Montag Ranks Among Top Taxpayers in Japan (Update2)

May 16 (Bloomberg) -- Thomas Montag, co-head of Goldman Sachs Group Inc.'s operations in Japan, ranked among the nation's top 100 taxpayers for a third straight year, according to a list released by tax authorities.

http://www.bloomberg.com/apps/news?pid=10000087&sid=a3bxHnBWvAHQ

Online broker Ameritrade has several suitors. Teaming up might be smart; E*Trade vs. Ameritrade

When Joe Moglia arrived as CEO at Ameritrade in 2001, he found the online broker suffering amid the bear market and collapse of the day-trading phenomenon. But Moglia, a former top Merrill Lynch executive and Dartmouth College defensive football coordinator, knew a thing or two about tough challenges. After all, during his three-year tenure, Dartmouth won the Ivy League title twice.

http://www.usnews.com/usnews/biztech/articles/050523/23eetrade.htm?track=rss

‘50-year gilts not good for pensioners’

IPE.com 16/May/05: UK - Bonds with very long maturities are good news for the government and pension funds, but not pensioners, says Intelligent Capital’s Avinash Persaud.

http://www.ipe.com/article_default.asp?article=18759

Private Equity Firms Bigger And Bolder, Making Big Profits

The $11.3 billion deal struck by seven private equity firms to buy SunGard Data Systems (SDS) in March had at least one heart-pounding moment, known as a speed round.

http://www.investors.com/editorial/feature.asp?v=5/16

Calypso used in Bear Stearns derivatives trading operations

Bear Stearns, an investment banking, securities trading and brokerage firm, is implementing technology from San Francisco-based Calypso in its derivatives trading.

http://www.cbronline.com/article_news.asp?guid=1DF00708-B072-4ACD-B73B-8E88AEE7FDD1

How Morgan Stanley botched a big case by fumbling emails

In June 2004, a Morgan Stanley technology executive signed a court document certifying he had handed over all emails the firm had agreed to produce in a suit filed against his firm by billionaire financier Ronald Perelman.

http://www.post-gazette.com/pg/05136/505304.stm

MORGAN STANLEY'S GAME OF CHICKEN

May 15, 2005 -- The Morgan Stanley saga is about to reach a new boiling point.

http://www.nypost.com/business/44102.htm

Chicago area CEOs raking in healthy compensation

http://www.suntimes.com/output/business/cst-fin-ceo16.html

John's Comments

Jon Matte

Thank you to Jon Matte for writing/editing the newsletter Thursday and Friday while I was attending the Options Industry Conference in Bonita Springs, FL. I appreciated all of the comments I received from readers who applauded Jon’s efforts and humor. Jon will be making another guest appearance this Thursday and Friday while I am in Washington, DC at another industry related event.

I will have more to say about my travels in upcoming newsletters.

*******

FOWeek Headlines Issue 1019 16-May-2005

• Eurex path unclear as Seifert departs Börse

• CBoT makes official IPO filing

• Espeed profits down

• Fimat gets into stocks with PreferredTrade acquisition

• Interview - Patrick Arbor http://www.fow.com/articles/foweek_article.asp?storyCode=3299

• Jefferies involved as Nybot index revised

• Screen strategies strengthen Liffe Eurodollar performance

• TT motion rejected

• UBS, CSFB latest banks in LME ring

• ABN Amro issues commodity warrants, boosts HK presence

http://www.fow.com/

**********

Brent Crude Watch

IPE Brent Volume: 136,653

NYMEX Brent Crude Volume: 7226

NYMEX Percent of Total Volume: 5.02%

********

Chicago Electronic Trading Scorecard for May 13, 2005

Percent Electronic

CBOT: 64/99%

CME: 76.96%

CME Eurodollars: 86.88%

CME Live Cattle: .43%

CME Currency Products: 70.62%

CBOT Soybeans: 1.24%

CBOT Options: 6.42%

CME Options: 13.24%

Volume

OneChicago Volume: 4650

Eurex US Volume: 4792

Euronext.liffe Eurodollar Volume: 45,030

CBOE Futures Exchange Volume: 1989

Market Share

CBOT 100 oz. Gold Volume: 880

NYMEX 100 oz. Gold Volume: 70,463

CBOT Share: 1.23%

CBOT 5000 oz. Silver Volume: 179

NYMEX 5000 oz. Silver Volume: 9657

CBOT Share: 1.82%

CBOT Mini Gold Volume: 1071

CBOT Mini Silver Volume: 243

CME Emini Russell 1000 (100X) Volume: 3803

Eurex US Mini Russell 1000 (100X) Volume: 1048

NYBOT Mini Russell 1000 (50X) Volume: 587

CFE Mini Russell 1000 (100X) Volume: 0

CME Emini Russell 2000 Volume: 145,522

Eurex US Mini Russell 2000 Volume: 2408

CFE Mini Russell 2000 Volume: 995

Notes: The CBOT set a new total exchange open interest record on Friday, with 14,584,115 contracts open. This beat the previous record of 14,487,181 contracts set on April 21, 2005. Additionally, the 10-Year Note futures and options set a new open interest records on Friday, as did the 5-Year Note options. Here are the records:

10-Year Treasury Note Futures Open Interest Record New Record: 2,200,973 Date: May 13, 2005 Old Record: 2,184,350 Date: May 11, 2005

10-Year Treasury Note Options Open Interest Record New Record: 3,557,065 Date: May 13, 2005 Old Record: 3,527,259 Date: April 21, 2005

5-Year Treasury Note Options Open Interest Record New Record: 1,383,121 Date: May 13, 2005 Old Record: 1,366,897 Date: May 12, 2005

On the other side of the coin, the CBOT traded zero Ethanol futures on Friday. Open interest in CBOT Ethanol stood at 202.

Liffe Eurodollar Over-Under

Liffe/Globex: 2.51%

Liffe/CME: 2.19%

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

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Disclaimer: The John Lothian Newsletter is a product of John J. Lothian & Company, Inc. The opinions expressed are strictly the opinion of John Lothian, and not necessarily those of his employer, The Price Group and its management, and is intended solely for informative purposes and is not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade in any commodities or securities herein named. Information is obtained from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Security futures are not suitable for all customers.

Futures and options trading involve risk. Past results are no indication of future performance.

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