May 24, 2005

 

Lead Stories

 

ISE Trades One Billionth Contract

The International Securities Exchange said today that it traded its one billionth contract, an important milestone in the evolution of the first fully-electronic options market in the US.

http://phx.corporate-ir.net/phoenix.zhtml?c=176358&p=irol-newsArticle&ID=713205&highlight=

 

***** Just the beginning of big things for the ISE.  I really like their culture of and focus on innovation.

 

Eurex may get link approval within months -CFTC

By Huw Jones

BRUSSELS, May 24 (Reuters) - The U.S. futures market regulator said on Tuesday that approval for the second stage of Eurex AG's (DB1Gn.DE: Quote, Profile, Research) global futures clearing link could come within months if it receives all requested information.  Commodity Futures Trading Commission acting chairwoman Sharon Brown-Hruska repeated her support for the link's concept, saying she was waiting for specific information from Eurex.  Last week Brown-Hruska met top officials of Eurex US, the company's U.S. unit, and spoke to Eurex's home regulator, Germany's Bafin.

http://yahoo.reuters.com/financeQuoteCompanyNewsArticle.jhtml?duid=mtfh31447_2005-05-24_17-47-17_l2474263_newsml

 

Coalition demands hedge fund data

Amid rumblings of trouble in the $1 trillion hedge fund industry, a free-press advocacy group is demanding that the California Public Employees' Retirement System and the University of California make broad disclosures about their hedge fund investments.

http://www.sacbee.com/content/business/story/12945628p-13793340c.html

 

***** Watch out for the villagers with the pitchforks.

 

LETTERS TO THE EDITOR: Why not unify US regulatory regimes for futures and securities trading? 

By Gary Rindner

Sir, Gary DeWaal's call for a single financial regulator in the US (May 15) presents a compelling and convincing case. ...

http://news.ft.com/cms/s/05cf1f04-cbf2-11d9-895c-00000e2511c8.html

 

****** Out of the box thinking, but will it fly?

 

Hedge Fund Managers Forced to Walk a Fine Line

A place where shares of multibillion-dollar companies are traded at three different prices and where equity markets swing to the musings of mid-ranking officials -- or outright rumors -- would normally be a hedge fund El Dorado.

http://www.themoscowtimes.com/stories/2005/05/24/047.html

 

Quadriga, Bailey Coates Hedge Fund Losses Exceed 20% (Update6)

U.S. May 23 (Bloomberg) -- Hedge funds run by Quadriga Capital Management Inc. and Bailey Coates Asset Management LLP fell more than 20 percent this year, ranking them among the biggest losers in what has been a tough period for the $1 trillion industry.

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

 

****** I can see a new hedge fund reality show coming soon.  Lose money, make them eat bugs.

 

A Few Fires, Lots of Smoke Seen in Hedge Funds: Mark Gilbert

May 24 (Bloomberg) -- Legions of hedge-fund managers in open- necked shirts are poised to jump from the ledges outside their Greenwich and Mayfair offices, if the scuttlebutt about losses in the derivatives market is to be believed.

http://quote.bloomberg.com/apps/news?pid=10000039&refer=columnist_gilbert&sid=aYCDK0oWCHFA

 

Hedge funds take in $25B in first quarter

SAN FRANCISCO (MarketWatch) -- Falling stock markets didn't deter hedge fund investors in the first quarter, Tremont Capital Management said Tuesday.

http://www.marketwatch.com/enf/rss.asp?guid=%7B84CE1EA2-14BA-4FDB-BE4E-7309F7A57AFE%7D&dist=rss&siteid=mktw

 

LME to Investigate Feasibility of Launching Steel Futures

http://www.lme.com/4182.asp

 

Arab bourses eye expats to spur trading

Lebanese and Arab stock exchanges should reach out to millions of expatriates around the world to boost trading in local stock exchanges, Economy, Trade and Finance Minister Damianos Kattar said on Monday. "One way to expand the number of traders is to enhance the use of online trading. This method will surely encourage Arab.

http://www.dailystar.com.lb/article.asp?edition_id=1&categ_id=3&article_id=15327

 

EARNINGS PREVIEW: Man Group FY Pft Seen -3.9%

1514 GMT [Dow Jones] Man Group (EMG.LN) expected Thursday at 0600 GMT to report a 3.9% drop in full-year profit before tax, goodwill and exceptional items of $788.4M versus $820.6M a year earlier, an average of ten analysts' forecasts compiled by the company shows.

http://www.newratings.com/analyst_news/article_839291.html

 

Pushing Around Germany Inc.

Majorca hedge fund FM Fund Management Ltd. hardly caused a ripple in Germany last year when it bought a 30% stake in Comtrade, a Hamburg provider of software and services for financial institutions. No politicians complained when FM's managing director, Florian Homm, used his fund's clout to shake up management. Nor did German pundits raise an outcry in the local media as FM pushed Comtrade to

http://news.yahoo.com/news?tmpl=story&u=/bw/20050524/bs_bw/b3935119mz020

 

Instinet Expands Direct Market Access Through Membership Of Oslo And Copenhagen Exchanges

http://www.exchange-handbook.co.uk/news_story.cfm?id=53061

 

Investors oppose trading extension d hours

Most investors and securities brokerage houses oppose a government plan to extend stock trading to two sessions every day. Even some international institutional investors also hold reservations.

http://www.chinapost.com.tw/business/detail.asp?GRP=E&id=62845

 

Environmental Trading News

 

Cane fuel gives a lift to farming in Brazil

Not long ago, residents of this lush cane-growing region in southern Brazil needed to keep a close eye on the price of sugar in world markets to know if the local farmers were hiring or firing.

http://www.iht.com/articles/2005/05/24/business/sugar.php

 

North American pollution report shows pollution is decreasing in Canada

http://www.newswire.ca/en/releases/archive/May2005/24/c2588.html

 

Bank Clients Trade CO2 Allowances Directly At The EEX - First Deal By Lemgo Municipal Supplier Via BHF-Bank

http://www.exchange-handbook.co.uk/news_story.cfm?id=53049

 

Exchange & ECN News

 

Deutsche Börse critics drop campaign to oust chairman

Hedge fund TCI last night said it wanted to a withdraw a motion calling for the immediate removal of Deutsche Börse's chairman Rolf Breuer at this week's annual meeting. In a surprise move TCI, which holds about 8pc of the stock exchange operator's shares, also said it welcomed Mr Breuer's pledge to listen better to investors.

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2005/05/24/cnborse24.xml&menuId=242&sSheet=/money/2005/05/24/ixcity.html

 

CBOT Dow Jones Strike Price Notice, May 24, 2005

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+28491,00.html

 

CBOT Strike Price Notice, May 24, 2005

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+28490,00.html

 

E-CBOT Dow Jones Strike Price Notice, May 24, 2005

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+28492,00.html

 

Memorial Day Holiday Schedule

http://www.cme.com/clearing/clr/clradv/13302.html

 

 

http://www.kcbt.com/electronic_trading.html

 

Additional Months are listed for Gold Options (OG) on NYMEX ACCESS®

http://www.nymex.com/jsp/shareholder/notice_to_member.jsp?id=ntm214&archive=2005

 

NYSE Media Statement Regarding Franklin Covey Co. (FC)

http://www.nyse.com/press/1116844762335.html

 

Euronext.liffe Amsterdam to launch Equity Option on TomTom NV from the...

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

 

Alternext welcomes five new listing sponsors

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

 

Next NYSE Holiday: May 30, 2005

The NYSE will be closed on Monday, May 30, 2005 in honor of Memorial Day.

http://www.nyse.com/about/1022963613686.html

 

Sucden Ready for Plastics Launch on the LME

Sucden Ltd, one of London's leading commodity and financial futures brokers today signalled its strong support to actively trade the new Plastics Contracts from the first day of their launch on the London Metals Exchange .

http://biz.yahoo.com/bw/050523/235468.html?.v=1

 

OneChicago Will Be Closed May 30 for Memorial Day

http://www.onechicago.com/040000_trading/oc_040500.html

 

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/dig052305.txt

 

NASD Unveils Online "Smart Bond" Learning Center Aimed at Growing Number of Retail Investors in Bond Markets

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

 

Newbridge settles with NASD

The National Association of Securities Dealers said it has fined and sanctioned a Fort Lauderdale company. The brokerage regulator said it found the firm improperly executed short sales, but the company has admitted no such oversight and NASD has not required it to do so.

http://www.bizjournals.com/southflorida/stories/2005/05/23/daily29.html

 

Jack Grubman's Supervisors Settle With SEC, by Glen Shapiro, LawAndTax-News.com, New York 24 May 2005

Jack Grubman's former supervisors at Salomon Smith Barney, John Hoffman and Kevin McCaffrey, last week settled enforcement actions with the SEC over their failure to properly supervise the former equity research analyst.

http://www.investorsoffshore.com/asp/story/storyinv.asp?storyname=19919

 

Mergers: European Commission Conditionally Clears Reuters’ Acquisition Of Competitor Telerate

http://www.exchange-handbook.co.uk/news_story.cfm?id=53048

 

Managed Futures - Managed Funds

 

Hedge fund failures snubbed

Fund managers who leave traditional houses to set up hedge funds are increasingly not welcome to return if their venture fails. Russell Reynolds, a leading headhunter, said longonly fund companies were suspicious of the motives of would-be returnees and were turning them down. This is a new factor contributing to a shrinking pool of talented fund managers that has led to rising compensation packages in the UK, according to a report by Russell Reynolds. Average pay for UK investment professionals, including salary, bonus and share options, had risen by 12 per cent over the past two years from £103,000 to £115,500, revealed the report, based on a survey of members of the Chartered Financial Analyst Institute.

http://news.ft.com/cms/s/09f6644e-cbf1-11d9-895c-00000e2511c8.html

 

Funds in Brief: No new hedge fund rules, EU commissioner asserts

The European Commission does not have any plans to impose more regulation on hedge funds, the European Union's internal markets commissioner, Charlie McCreevy, said on Monday.

http://www.iht.com/articles/2005/05/23/business/gfbrief.php

 

Convertible arbitrage is set to revive

Hedge funds are not blowing up and there is no Long Term Capital Management-style financial disaster happening as a result of the General Motors and Ford downgrades.

http://news.ft.com/cms/s/01a7bf36-cbc4-11d9-895c-00000e2511c8.html

 

Reports

 

Bond Talk Today's Events

http://www.bondtalk.com/global.cfm?S=todaysevents

 

USDA Today

http://www.usda.gov/nass/PUBS/TODAYRPT/TODAY.HTM

 

Miscellaneous News

 

Patsystems to Pay Trading Technologies Royalties

CHICAGO (Reuters) - Software firms Trading Technologies (TT) and Patsystems plc (PTS.L: Quote, Profile, Research) said on Monday they have settled a lawsuit pending in an Illinois court alleging that Patsystems infringed two of TT's U.S. patents. As part of the settlement, Chicago-based TT has licensed its patented technology to Patsystems, a London-based provider of electronic trading systems for derivatives.

http://www.reuters.com/newsArticle.jhtml?type=topNews&storyID=8579493

 

ABN augments commodity derivatives team 

Dutch bank announces creation of Singapore business to be led by Brian Cumming.

ABN AMRO has outlined a global expansion of its commodity derivatives business, announcing new hires in London and New York and regionally, the creation of a new Singapore operation. Joining the Dutch institution in Singapore as senior marketer is Brian Cumming who will be responsibile for driving and establishing the commodity derivatives business in the Lion City.

http://www.financeasia.com/articles/0995EED2-9027-7E17-4B8316DBBEACCC0F.cfm

 

Dow Jones Indexes to Launch Index, Tracking Australian Real Estate Market

NEW YORK and SYDNEY, Australia, May 24, 2005 (PRIMEZONE) -- Dow Jones Indexes, a leading global index provider, today launched the Dow Jones Australia LPT Index, which tracks the performance of the Listed Property Trust (LPT) securities traded on the Australian Stock Exchange. The index was developed in conjunction with the Sydney Futures Exchange (SFE) and Atchison Consultants, a property asset

http://au.biz.yahoo.com/050524/21/4i7l.html

 

Number of high-net worth households rises 21% in U.S.

The number of U.S. households with a net worth of US$1 million or more, excluding their primary residence, increased 21% last year to 7.5 million, according to a new report from Spectrem Group.

http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=28872&IdSection=3&cat=3

 

OTC derivatives market expands

Overall amounts, gross market values climb in second half 2004

http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=28870&IdSection=15&cat=15

 

eSpeed Adds Financial Services Expert to Facilitate Fixed-Income Sales

eSpeed, Inc. , a leading developer of electronic marketplaces and trading technology for the global capital markets, today announced that Ted Bragg has joined the firm as Managing Director, North American Fixed-Income Sales.

http://biz.yahoo.com/bw/050524/245460.html?.v=1

 

ITG Canada Forms Subsidiary to Operate Alternative Trading System

Investment Technology Group, Inc. , a leading provider of technology based equity trading services and transaction research, today announced that its wholly owned subsidiary, ITG Canada Corp., has formed a subsidiary, TriAct Canada Marketplace LP , to operate a Canadian alternative trading system.

http://biz.yahoo.com/cnw/050524/ny_itg_canada_system.html?.v=1

 

Morgan Stanley to Appeal $1.45B Award

Morgan Stanley is set on trying to overturn the massive $1.45 billion award it has to pay financier Ronald Perelman, but the risks of challenging the verdict could force a settlement, experts say.

http://news.yahoo.com/news?tmpl=story&u=/ap/20050523/ap_on_bi_ge/morgan_stanley_sued_1

 

John's Comments

 

CME E-Livestock

 

 

**** Do you NOSE how tight the Globex Live Cattle market is?  Check it out!  www.cme.com/elivestock

 

 

*************

 

FIA Chicago presents Speakers

 

Bryan Durkin, Executive Vice President and Chief Operating Officer, Chicago Board of Trade

Phupinder Gill, President and Chief Operating Officer, Chicago Mercantile Exchange Inc.

 

WHAT’S SHAKIN’ AT CBOT/CME?

Wednesday, June 15

 

The Crystal Room

The Union League Club of Chicago

65 West Jackson Boulevard

Chicago, IL 60604

 

Cost:   $45.00 per FIA Chicago Member, $55.00 per Non-member

Lunch Registration:

General: https://www.futuresindustry.org/fiachica-2555.asp

FIA Chicago Members: https://www.futuresindustry.org/members/fiachica-185.asp

 

*********

 

Brent Crude Watch

 

IPE Brent Volume: 111,933

NYMEX Brent Crude Volume: 7204

NYMEX Percent of Total Volume: 6.05%

 

********

 

Chicago Electronic Trading Scorecard for May 23, 2005

 

Percent Electronic

 

CBOT: 58.69%

CME: 76.62%

CME Eurodollars: 84.28%

CME Live Cattle: .39%

CME Currency Products: 85.10%

CBOT Soybeans: 3.90%

 

CBOT Options: 3.36%

CME Options: 6.24%

 

Volume 

 

OneChicago Volume: 7651

Eurex US Volume: 10,181

Euronext.liffe Eurodollar Volume: 33,021

CBOE Futures Exchange Volume: 679

 

Market Share

 

CBOT 100 oz. Gold Volume: 1206

NYMEX 100 oz. Gold Volume: 55,280

CBOT Share: 2.14%

 

CBOT 5000 oz. Silver Volume: 109

NYMEX 5000 oz. Silver Volume: 9961

CBOT Share: 1.08%

 

CBOT Mini Gold Volume: 976

CBOT Mini Silver Volume: 196

 

CME Emini Russell 1000 (100X) Volume: 2879

Eurex US Mini Russell 1000 (100X) Volume: 1511

NYBOT Mini Russell 1000 (50X) Volume: 1043

CFE Mini Russell 1000 (100X) Volume: 0

 

CME Emini Russell 2000 Volume: 93,868

Eurex US Mini Russell 2000 Volume: 3872

CFE Mini Russell 2000 Volume: 28

 

Notes: The CBOT’s South American Soybean futures traded 170 contracts yesterday.  The CME’s Eurodollar futures set a new open interest record of 8,680,272 contracts yesterday.

 

 

Liffe Eurodollar Over-Under

 

Liffe/Globex: 2.79%

Liffe/CME: 2.36%

 

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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