Lead Stories
Bush renominates Lukken to CFTC By William L. Watts
WASHINGTON (MarketWatch) -- The White House on Tuesday said President Bush would seek to extend Walter Lukken's tenure on the Commodity Futures Trading Commission. Lukken's current term expired in April. The White House said Bush would nominate Lukken to the remainder of a five-year term expiring April 2010.
NYMEX Sets Annual e-miNYsm Futures Volume Record
http://www.nymex.com/jsp/news/press_releas.jsp?id=pr20050524a
KCBT Announces Value Line® Market Maker, Reduced Contract Size
http://www.exchange-handbook.co.uk/news_story.cfm?id=53080
Langone's NYSE bid sputtering?
Report says effort to purchase Big Board not getting the support it needs from Wall Street firms.
http://money.cnn.com/2005/05/25/markets/langone_nyse/
Packaged goods
New commodities indexes reflect strong investor demand
Deutsche Boerse faces investors
Deutsche Boerse shareholders piled into the
http://news.bbc.co.uk/1/hi/business/4578539.stm
Deutsche Boerse Adjourns Annual Meeting
http://biz.yahoo.com/ap/050525/germany_deutsche_boerse.html?.v=1
Deutsche Boerse's Breuer Defends Role of Hedge Funds in
May 25 (Bloomberg) -- Deutsche Boerse AG Supervisory Board Chairman Rolf Breuer defended the role that hedge funds play in German capital markets, even after some funds forced him to resign his post at the company.
http://www.bloomberg.com/apps/news?pid=10000100&sid=aaDkXMh4eUoI
Deutsche Boerse Says It Needs Acquisitions to Expand (Update3)
May 25 (Bloomberg) -- Deutsche Boerse AG, whose chief executive officer was ousted 2 1/2 weeks ago after opposition to a bid for London Stock Exchange Plc, said it won't be able to boost shareholder returns without acquisitions.
http://www.bloomberg.com/apps/news?pid=10000100&sid=aPWfqrh7T7MQ
Three Members Of The Deutsche Börse Supervisory Board To Resign - Uwe E. Flach, Prof. Dr. Dr. Klaus Hopt And Manfred Zaß To Vacate Their Posts
http://www.exchange-handbook.co.uk/news_story.cfm?id=53074
S&P finds limited awareness of availability of independent research under global settlement
Investors lack tools to assess conflicting research views
http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=28878&IdSection=137&cat=137
The Options Clearing Corporation Reports ENCORE Release 4.5 ...
The Options Clearing Corporation announced today the successful integration of a new collateral management system into ENCORE, its state-of-art, real-time clearing system.
http://biz.yahoo.com/prnews/050525/nyw113.html?.v=12
Environmental Trading News
Cash and Futures Market Prices Survey Report Wednesday, May 25, 2005 9:30 a.m. Central Time Report |
SO2 Allowance Cash Market Survey |
Vintage Bid Offer Last |
2005 (or earlier) $780 $795 $790 ( May 16 ) |
2006 $775 $790 |
www.chicagoclimateexchange.com
European emissions trading gathers a fine head of steam
European carbon emissions prices have hit record highs this week on concerns that European industry may exceed emissions targets over the next three years. Another factor has been the surge in
http://news.ft.com/cms/s/4fe33cbe-ccbb-11d9-bb87-00000e2511c8.html
EU Emissions Trading Scheme: Trading Gets The Green Light With Opening Of
http://www.exchange-handbook.co.uk/news_story.cfm?id=53069
Exchange & ECN News
CME to launch more weather contracts
http://db.riskwaters.com/public/showPage.html?page=251065
The Economic Impact of Weather: An Introduction
Even in our advanced, technology-based society, we still live largely at the mercy of the weather. It influences our daily lives and choices, and also has an enormous impact on corporate revenues and earnings.
http://www.investopedia.com/articles/optioninvestor/05/052505.asp
CBOT Add Month Notice, May 20, 2005
http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+28522,00.html
CBOT Strike Price Notice, May 25, 2005
http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+28523,00.html
E-CBOT Dow Jones Strike Price Delist Notice, May 24, 2005
http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+28521,00.html
HKEx chief backs lifting of cap on futures contracts: report
Regulators may relax the position limit of 10,000 futures or options contracts per investor, seen by many traders as an outmoded legacy of the Asian financial crisis seven years ago.
NYBOTs
http://www.nybot.com/releases/pressRelease.asp?releaseID=878
Alcoa has 'wait-and-see' stance on LME plastics
LONDON, May 24 (Reuters) - U.S.-based Alcoa , the world's biggest aluminium producer, said on Tuesday it will adopt a cautious attitude over using plastics futures on the London Metal Exchange (LME), which start trading on Friday.
Precious metal closing prices
http://asia.news.yahoo.com/050524/3/21fxv.html
TOPIX and TOPIX Sector Index Futures - Inter-month spread trading
http://www.tse.or.jp/english/option/topixf/topixf5.html
PHLX Launches Initial Options Trading on S&P Global iShares Exchange Traded Funds
http://www.phlx.com/news/pr2005/05pr052505.htm
The NASDAQ Stock Market Announces Open Short-Interest Positions In NASDAQ Stocks For May 2005
http://www.exchange-handbook.co.uk/news_story.cfm?id=53070
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/dig052405.txt
Speech by Acting Chairman Sharon Brown-Hruska before the Center for European Policy Studies Re: Market Competition and Regulatory Cooperation: A New Dynamic in US-EU Financial Relations
http://www.cftc.gov/opa/speeches05/opabrownhruska32.htm
Review of hedge-fund instant messaging is urged
NEW YORK Instant messaging, blamed by some for spreading rumors and causing market volatility, should come under regulatory scrutiny after a crackdown last week on insider trading by hedge funds, an investment management executive said Tuesday.
http://www.iht.com/articles/2005/05/25/business/gflede.php
SEC finds $48 mln budget lapse, inquiry sought
WASHINGTON (Reuters) - The market-regulating U.S. Securities and Exchange Commission has uncovered a $48 million budget shortfall on its own books, prompting a key lawmaker to seek an investigation, officials said on Tuesday.
MFDA issues compliance reminder
Securities must be sold through dealers
http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=28889&IdSection=8&cat=8
OSC approves settlements with Buckingham officer, auditor
Former officer permanently barred from registration
http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=28882&IdSection=8&cat=8
US SEC Files Charges for False and Misleading Press Releases
The US SEC announced yesterday that it filed a complaint charging StockerYale, Inc. and Mark W. Blodgett with fraudulently publishing false and misleading press releases that misrepresented StockerYale’s involvement with a potentially lucrative Department of Homeland Security project.
http://www.garp.com/risknews/newsfeed.asp?Category=6&MyFile=2005-05-25-10862.html
The California Supreme Court has ruled unanimously that NASD regulation has precedence over the state's tougher regulations that require arbitrators in investor disputes to disclose industry ties.
http://www.compliancereporter.com/default.asp?page=1&SID=508469&ISS=16028&pressbox=1
Managed Futures - Managed Funds
Investor Force ranks The Kawaller Fund Number 1
The Kawaller Fund has been ranked number one by Investor Force (http://www.investorforce.com/ ) in the category of “Event Driven Funds” for April 2005, when the fund posted a monthly gain of 10.54%, as compared to -2.01% for the S&P Index. Year to date, the Kawaller Fund is up 5.20% (as compared to -4.54% for the S&P). Managing Partner Ira Kawaller noted in response to Investor Force’s rankings, “A principal rationale for investing in alternative asset classes is their lack of correlation with more traditional investment categories, like equities. If true – and as long as the returns can be expected to exceed risk free returns in over the long run – adding alternative assets should provide the desirable diversification benefits of improving returns and lowering the risk of the overall portfolio. The Kawaller Fund should be considered in this context.” The Kawaller Fund recently entered its 6th year with a long term performance record of 27.4% on a 60 month annualized basis. Over the same period/basis, the S&P has posted -4.5%.
The Kawaller Fund was also ranked Number One by The Barclay Group (http://www.barclaygrp.com/) under the Top Options CTAs category for the period April 2003 – March 2005. The Kawaller Fund’s return of 51.44% compared favorably with the second place fund of 48.38%.
For further information, please contact James Olcott at tel: (917) 881-8578 or at jolcott88@gsb.columbia.edu.
Hedge funds will have to kick the junk habit
The drama of General Motors descending into junk bond territory even as portfolios are overflowing with credit derivatives has captivated the financial markets, spawning reports of hedge fund losses and fears of worse to come. But we need to give equal attention to a more basic problem: the vast quantity of old-fashioned imprudent lending that has gone almost unnoticed over the past two years.
http://news.ft.com/cms/s/a29a03f0-cc81-11d9-bb87-00000e2511c8.html
***** Online FT subscription required.
Institutional investor confidence drops in May
http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=28883&IdSection=15&cat=15
Barclays Global Investors Announces Stock Split of Certain iShares Funds
Barclays Global Investors , a worldwide leader in exchange-traded funds, announced today that the Board of Directors of iShares, Inc. and the Board of Trustees of iShares Trust have authorized a three-for-one or two-for-one split of 12 iShares Funds for shareholders of record on June 6, 2005, and payable on June 8, 2005.
http://biz.yahoo.com/bw/050525/255206.html?.v=1
HEDGE FUND IS UNDER FIRE
May 25, 2005 -- BKF Capital, a
http://www.nypost.com/business/47133.htm
The Energy Hedge Fund Center in
http://www.bizjournals.com/houston/stories/2005/05/23/daily16.html
Rydex adds three new mutual funds
BOSTON (MarketWatch) - Rydex Investments said Wednesday it has added three new mutual funds that offer investors an alternative to traditional stock and bond investments by giving them exposure to the commodities and currency markets.
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
GFI Group unveils trading platform linking sell-side to buy-side
Inter-dealer broker GFI Group has launched its Fenics dealFX, a foreign exchange options trading technology that enables banks to offer customized online pricing and trading services to their buy-side clients.
http://www.cbronline.com/article_news.asp?guid=1D5E6A8D-9D4D-4B05-889E-4F3FA4991646
INTERVIEW:Goldman Rolls Out Electronic Trade Sys In
http://sg.biz.yahoo.com/050525/15/3sowc.html
TD Waterhouse Apologizes to Schwab for Advertisements (Update2)
May 25 (Bloomberg) -- TD Waterhouse Group Inc., the third- biggest discount brokerage, apologized for ads calling Charles Schwab Corp. a ``higher-priced'' brokerage, settling a lawsuit Schwab filed in March.
http://www.bloomberg.com/apps/news?pid=10000082&sid=aIxLuBpgVEF4
Charles Schwab, TD Waterhouse Settle Suit
Rival online brokerages Charles Schwab Corp. and TD Waterhouse
http://biz.yahoo.com/ap/050525/charles_schwab_td_waterhouse_settlement.html?.v=1
Man Group May Report Smallest Earnings Increase Since 2000
May 25 (Bloomberg) -- Man Group Plc, the world's largest publicly traded hedge fund manager, may report its smallest full- year earnings increase since 2000 after a decline in performance- related fees.
http://www.bloomberg.com/apps/news?pid=10000085&sid=ag6_ROl0xGso
Britain suffers sense of humour failure due to worries of modern life Tue May 24, 5:41 PM ET
http://news.yahoo.com/s/afp/20050524/lf_afp/afplifestylebritain_050524214117
Other Voices
Today’s Other Voices contribution is from Nancy Kaplan of Euronext.liffe:
Dear Friends,
On Saturday June 25th and Sunday June 26th my husband and I will join 1,600 cyclists in the MS 150 Tour de Farms to benefit the National Multiple Sclerosis Society, Greater Illinois Chapter. Our participation in this event began three years ago when an acquaintance – who has become a friend – asked for my help and told me about his wife who is afflicted with MS.
Multiple sclerosis is a chronic, often disabling disease of the central nervous system that generally strikes people between the ages of 20 and 50. Symptoms can range from numbness in the limbs to paralysis or loss of vision. The progress, severity and specific symptoms of MS in any one person cannot be predicted, but advances in research and treatments are giving hope to those affected by the disease.
The National MS Society is the only national voluntary MS organization that meets the standards of all major agencies that rate the fiscal responsibility of non-profit groups. Donors are the key to making the society’s important mission possible. This event is fully funded by registration fees paid by the participants and by goods donated to support the ride – so 100% of your donation goes directly to the National MS Society, Greater Illinois Chapter.
The Greater Illinois Chapter is one of the top supporters of clinical research on MS. By making a pledge on my behalf, your support will fund research into the cause and cure of MS, and provide direct services for the 18,000 people with MS and their families in
Please help by sponsoring me in the MS 150 Tour de Farms with a contribution to the National MS Society. Any amount will be appreciated.
You can donate on line at: http://events.msillinois.org Click on "MS 150 Bike Tour", "Donate", "Sponsor a Participant and enter Nancy Kaplan.
Thank you for your consideration and support.
Sincerely,
Nancy Kaplan
Euronext.liffe
Vice President
Business Development -
312-553-4813 office
847-421-8592 cell
John's Comments
NYMEX emiNY Memo : Transition of e-miNYsm futures contracts from the Chicago Mercantile Exchange's GLOBEX® to NYMEX ClearPortsm Trading
Please be advised that at 2:30 PM EST, Monday, June 20, 2005, the NYMEX energy e-miNYsm futures contracts, both natural gas and crude oil, will no longer be available to trade on the Chicago Mercantile Exchange's GLOBEX® trading platform.
After the date noted above, the e-miNYsm futures contracts will be available to trade on the New York Mercantile Exchange's NYMEX ClearPortsm Trading system and will commence trading at 3:15pm EST Monday, June 20, 2005.
The New York Mercantile Exchange has been in contact with many of the Independent Software Vendors (ISVs) and the Exchange's Clearing Members that have proprietary front-end trading platforms currently connected to GLOBEX to inform them of this change of venue and to initiate the process of connecting to the Exchange's NYMEX Electronic Order Network (NEON) FIX 4.2 API and NYMEX Market Data API.
In order to minimize the operational impact of the migration of the NYMEX energy e-miNYsm futures contracts, both natural gas and crude oil, from to NYMEX ClearPortsm Trading, the following communications connectivity choices are available for immediate planning:
1) VPN over the Internet
2) Serial Leased Line
3) Radianz (available Q3 '05)
This notice encourages firms to start planning NOW to connect to the NYMEX FIX server before our launch date of Monday, June 20, 2005. Each firm has the choice to a) develop to the NYMEX Electronic Order Network (NEON) FIX 4.2 API within its own proprietary software or b) select from one of the following NYMEX certified releases of ISV trading software:
1) GL Trade GLWin
2) PATS Systems' J-Trader
3) Rolfe and Nolan's RAN Order
Additionally, there are several more ISVs who are actively developing to the NYMEX API and who expect to deliver certified versions in the near future.
The API makes it possible to deliver orders electronically to any of the NYMEX markets.
If you require additional information or have any questions, please contact NYMEX Customer Service at 800-438-8616.
*********
Brent Crude Watch
IPE Brent Volume: 122,781
NYMEX Brent Crude Volume: 7945
NYMEX Percent of Total Volume: 6.08%
********
Percent Electronic
CBOT: 63.40%
CME:
CME Eurodollars: 85.10%
CME Live Cattle: 3.92%
CME Currency Products: 81.47%
CBOT Soybeans: 2.15%
CBOT Options: 6.42%
CME Options: 4.19%
Volume
OneChicago Volume: 15,204
Eurex
Euronext.liffe Eurodollar Volume: 28,556
CBOE Futures Exchange Volume: 278
Market Share
CBOT 100 oz. Gold Volume: 1969
NYMEX 100 oz. Gold Volume: 121,837
CBOT Share: 1.59%
CBOT 5000 oz. Silver Volume: 112
NYMEX 5000 oz. Silver Volume: 11,582
CBOT Share: .96%
CBOT Mini Gold Volume: 780
CBOT Mini Silver Volume: 275
CME Emini Russell 1000 (100X) Volume: 3584
Eurex
NYBOT Mini Russell 1000 (50X) Volume: 108
CFE Mini Russell 1000 (100X) Volume: 0
CME Emini Russell 2000 Volume: 91,852
Eurex
CFE Mini Russell 2000 Volume: 127
Notes: The CBOT’s South American Soybean futures traded 88 contracts yesterday.
Liffe Eurodollar Over-Under
Liffe/Globex: 1.88%
Liffe/CME: 1.60%
Regards,
John J. Lothian
Publisher
John Lothian Newsletter
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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.