June 3, 2005

 

Lead Stories

 

May 2005 Volume At NYBOT Up 15% YTD

New York, NY, June 3, 2005 – Combined 2005 futures and options trading volume at the New York Board of Trade® (NYBOT®) maintained a record pace -- running 15% ahead of 2004 Year-To-Date (YTD), with the total futures and options volume registering 15,246,694 contracts through the May 2005, versus 13,280,916 contracts in the first five months of 2004.

http://www.nybot.com/releases/pressRelease.asp?releaseID=883

 

**** Futures volume is even increasing at Electronic Trading-Free Zones like the New York Board of Trade.

 

Ask Not What The SEC Will Do For You

Got burned investing in a public company? You could call the SEC, but they'd tell you to get a lawyer.

http://www.forbes.com/business/2005/06/03/cz_mm_0603xybernaut.html?partner=rss

 

A Free Market SEC--But Seriously

There's too much paperwork for one agency to find misdeeds. Cox should reward insiders to reveal them.

http://www.forbes.com/markets/2005/06/03/cx_da_0603topnews.html?partner=rss

 

Moose trading planned on Swedish bourse

Got a gun but no game? Try Sweden's new moose bourse, launched by the Scandinavian country's state-owned forestry firm Sveaskog on Thursday.

http://news.yahoo.com/news?tmpl=story&u=/nm/20050602/od_uk_nm/oukoe_odd_sweden_moose_1

 

***** There is nothing worse than being stomped out of a losing Moose trade.

 

Archipelago: NYSE revs up 5% this year

NEW YORK (Reuters) - Electronic trading company Archipelago Holdings Inc., which has an agreement to merge with the New York Stock Exchange, said Friday that revenues at the NYSE rose about 5 percent in the first five months of this year.

http://money.cnn.com/rssclick/2005/06/03/markets/archipelago.reut/index.htm?section=money_latest

 

Bush S.E.C. Pick Is Seen as Friend to Corporations

http://www.nytimes.com/2005/06/03/business/03cox.html

 

THE OPTIONS INDUSTRY COUNCIL ANNOUNCES MAY VOLUME TOTAL CONTINUES TREND OF DOUBLE-DIGIT INCREASES

CHICAGO, June 3, 2005 – The Options Industry Council (OIC) announced today that May equity options trading volume totaled 99,502,222 (41,626,321 puts and 57,875,901 calls), a 22.82% increase over the year-ago level of 81,011,985.  The Options Clearing Corp. reported a monthly volume total—including index options—at 109,766,790 contracts changing hands in May, an increase of 22.55% over May 2004. This marks the eighth consecutive month of total trading volume above 100 million contracts.  Equity open interest for May at month-end stood at 146,320,652 contracts, an increase of 16.54% over May 2004 month-end. Equity open interest, the total number of options contracts not yet exercised or allowed to expire, is seen as an indication of longer-term investing in these instruments.

www.888options.com

 

India's National Exchange Bets on Derivatives Growth (Update1)

June 3 (Bloomberg) -- The National Stock Exchange, India's biggest by trading volume, said futures and options will drive growth in the market and forecasts derivatives trading to surge by as much as 70 percent each year for the ``next few years.''

http://www.bloomberg.com/apps/news?pid=10000080&sid=aI4xwFeU2yVQ&refer=asia

 

A Maverick Becomes the Man

By JEFF BAILEY

CHICAGO, June 2 - A billboard downtown here, home to the big futures markets and some of the world's most advanced trading systems, takes dead aim at the New York Stock Exchange: "A fossil isn't interesting when it's a stock exchange."  That attitude, typical of a city that bristles at being the Second City, sums up the ethos of the electronic trading upstart that ran the ad, Archipelago Holdings, and its chief executive, Gerald D. Putnam.

http://www.nytimes.com/2005/06/03/business/03arca.html?adxnnl=1&adxnnlx=1117804220-cwpXR+qmZOOgBn96PDIQiw

 

SEC expected to introduce fewer regulations

The Securities and Exchange Commission is likely to introduce fewer new regulations under Christopher Cox's chairmanship compared to his predecessor, and may strike a new tone on enforcement, people familiar with the chief US financial watchdog said on Thursday.

http://news.ft.com/cms/s/96ed80d2-d3ba-11d9-ad4b-00000e2511c8.html

 

Why Cox Has the Valley Smiling

Bush's new choice to head the SEC is a darling of the high-tech industry, which is hoping he'll scuttle expensing of stock options

The Securities & Exchange Commission will likely adopt a more business-friendly approach to rule-making if Representative Christopher Cox (R-Calif.) wins Senate confirmation as SEC chairman, the nominee's confidantes say. President George W. Bush nominated Cox, 52, on June 2 to succeed William H. Donaldson, who'll step down June 30.

http://www.businessweek.com/technology/content/jun2005/tc2005063_4235_tc024.htm

 

CME electronic FX trading resumes after glitch 

CHICAGO, June 3 (Reuters) - Foreign exchange futures trading on the Chicago Mercantile Exchange'sGlobex electronic platform will resume 

http://news.reuters.com/newsArticle.jhtml?type=topNews&storyID=8691957

 

Germany Loses 2nd Chief to Foreign Investor Pressure (Update5)

June 3 (Bloomberg) -- Germany today lost its second chief executive to foreign investor pressure in as many months in a country where companies for decades protected themselves from the demands of overseas shareholders through a system of cross- board representation and interlocking ownerships.

http://www.bloomberg.com/apps/news?pid=10000085&sid=arX4buXRHMbs

 

Environmental Trading News

 

Chicago Climate Futures Exchange SO2 Allowance Cash and Futures Market Prices Survey Report                     Friday, June 3, 2005 11:45 a.m. Central Time Report

SO2 Allowance Cash Market Survey

Vintage               Bid       Offer    Last

2005 (or earlier)   $775             $785        $785   (  June 3  )

2006                    $770             $780

Cash Market Price Survey Overview The SO2 cash market price information provided above reflects central values of price ranges gathered from randomly selected market participants from energy, brokerage and financial firms. The 9:30 a.m. Central Time report is based on information gathered between 9:10 and 9:25 a.m. Central Time. The 11:45 a.m. Central Time report is based on information gathered between 11:25 and 11:40 a.m. Central Time.

 

www.chicagoclimateexchange.com

 

Exchange & ECN News

 

Ex-CBOE exec pleads guilty

http://www.chicagotribune.com/business/chi-0506030180jun03,1,4589513.story?coll=chi-business-hed

 

Brokerage Payment System (BPS) Online User Guide

http://www.cme.com/clearing/clr/clradv/13416.html

 

Citadel To Serve as Bin 4 PMM on ISE

http://phx.corporate-ir.net/phoenix.zhtml?c=176358&p=irol-newsArticle&ID=716565&highlight=

 

Program Trading Averaged 54.2 Percent of NYSE Volume during May 23-27

http://www.nyse.com/press/1117708726884.html

 

Ex-OTR NYSE Seat Sells for $2,200,000

http://www.nyse.com/press/1117708727748.html

 

NYSE CEO John A. Thain Statement on Announcement of Nomination of Congressman Christopher Cox as SEC Chairman

http://www.nyse.com/press/1117708727099.html

 

State Street Global Advisors Launches streetTRACKS MSCI Europe Small Cap...

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

 

Gecina removed from Euronext 100 Index

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

 

Record Open Interest in Major Products in May

http://deutsche-boerse.com/dbag/dispatch/en/listcontent/gdb_navigation/press/10_Latest_Press_Releases/Content_Files/13_press/pm_news_030605_eurexhigh.htm

 

Medical Columbus goes public on the Frankfurt Stock Exchange

http://deutsche-boerse.com/dbag/dispatch/en/listcontent/gdb_navigation/press/10_Latest_Press_Releases/Content_Files/13_press/pm_news_medical_columbus_030605.htm

 

R.J. OBrien Now Using NYBOTs Order Book Management System To Fill Coffee Orders

http://www.nybot.com/releases/pressRelease.asp?releaseID=882

 

Click 365 allows first-timers to dabble in currency futures

The Tokyo International Financial Futures Exchange (TIFFE) on July 1 will introduce a new market of foreign exchange futures trading for private investors.

http://www.yomiuri.co.jp/newse/20050603wo11.htm

 

Commodity Products Education workshops - June 2005 Book now, limited spaces available!

Spaces for the June workshops have filled quickly, but there are still a few places left for the Technical Analysis workshop scheduled 14-15 June and the Advanced Option workshop scheduled 20 June. For further details of these and the other course that we run please see Workshop Details for London

http://www.euronext.com/editorial/0,5371,1732_203297875,00.html

 

CHX HOLDINGS, INC. AND THE CHICAGO STOCK EXCHANGE INC. ANNOUNCE NEW DIRECTORS

http://www.chx.com/pressroom/press_article.asp?PR_Date=6%2F2%2F2005

 

SWX Swiss Exchange And virt-x: Key Figures May 2005

http://www.exchange-handbook.co.uk/news_story.cfm?id=53268

 

CBOT Two Day Agriculture Workshop

The CBOT will host a two-day Ag markets workshop on June 13th and 14th, 2005 with noted Ag consultant and speaker Sue Goll in Chicago. The workshop will cover in detail a number of topics including the world Ag marketplace, grain flow, transportation, regulation, hedging, basis trading, spreads, market reports, and options.

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1130+27217,00.html

 

Ag Options Workshop

The CBOT will host a one-day Ag options workshop onJune 15th, 2005 with options author and speaker Jay Sorkin.  The workshop will cover in detail a number of topics including the basics of options, fundamental properties of options, option pricing, Ag option strategies, and hedging with Ag options.

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1130+27218,00.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/dig060205.txt

 

CFTC Weekly Advisory

http://www.cftc.gov/opa/adv05/opawa23-05.htm

 

FSA to clean up forex market

A revised law governing foreign exchange margin trading will be enforced in July to counter the predatory business practices of certain dealers.

http://www.yomiuri.co.jp/newse/20050603wo12.htm

 

SEC Charges Amerindo Investment Advisors and Its Co-Founders and Principals, Alberto W. Vilar and Gary A. Tanaka, with Fraud and Misappropriation of Client Funds

http://www.sec.gov/news/press/2005-84.htm

http://www.sec.gov/litigation/litreleases/lr19245.htm

 

SIA: Cox An Excellent Choice For SEC Chairman

http://www.sia.com/press/2005_press_releases/03994205.html

 

Donaldson Departure: A Question of Timing

June 2, 2005 - Some Securities and Exchange Commission-watchers are expressing surprise that chairman William Donaldson announced his resignation as of June 30, but others...

http://www.securitiesindustry.com/article.cfm?articleid=15654

 

Conservative Cox picked as SEC chief

Business cheers; critics fear `U-turn'

By William Neikirk

WASHINGTON -- President Bush nominated conservative Rep. Christopher Cox as chairman of the Securities and Exchange Commission on Thursday, prompting speculation that the agency would take a more pro-business approach after it battled financial scandals at Enron Corp., WorldCom Inc. and other companies in recent years.

http://www.chicagotribune.com/business/chi-0506030175jun03,1,6096845.story?coll=chi-business-hed

 

Managed Futures - Managed Funds

 

Citigroup-owned hedge fund hires from FSA

LONDON (Reuters) - Hedge fund Tribeca Global Management is hiring Gay Huey Evans from the Financial Services Authority, the market regulator whose recent investigations have included Citigroup, the fund's parent.

http://today.reuters.co.uk/Funds/FundsArticle.aspx?type=fundsNews&storyID=2005-06-02T091355Z_01_NOA232971_RTRUKOC_0_FINANCIAL-CITI-FSA.xml

 

GlobeOp unveils new hedge fund risk platform

Financial services firm GlobeOp has developed a new product that it claims will provide real-time trading and risk management software for hedge funds in a bid to increase accountability, meet market demand and fortify the control structure.

http://www.cbronline.com/article_news.asp?guid=1963E644-C0C2-4EA7-A6B6-49DE71782808

 

John Mack to Head Up Hedge Fund

Former Credit Suisse First Boston Chief Executive John Mack, a longtime Wall Street veteran, has joined hedge fund company Pequot Capital Management Inc. as chairman, the company announced Friday.

http://news.yahoo.com/news?tmpl=story&u=/ap/20050603/ap_on_bi_ge/mack_hedge_fund_1

 

Former CSFB, Morgan Stanley exec Mack to hedge fund

NEW YORK (MarketWatch) -- "Mack the Knife" is cutting himself a new role: hedge-fund chieftain. John Mack, formerly chief executive at Credit Suisse First Boston and a top executive at Morgan Stanley (MWD), is joining Pequot Capital Management as chairman of the Westport, Conn.-based hedge fund.

http://www.investors.com/breakingnews.asp?journalid=28019787&brk=1

 

Gartmore Calls for Uniform Hedge Fund Rules Worldwide (Update1)

U.K. June 3 (Bloomberg) -- Gartmore Investment Management, a London- based company overseeing $6.3 billion in hedge funds, is urging regulators to adopt uniform rules for the industry to help prevent the collapse of smaller firms.

http://www.bloomberg.com/apps/news?pid=10000102&sid=aGGYxFF3soz8

 

SAC May Open Hedge Funds to Investors for First Time Since 1992

June 3 (Bloomberg) -- SAC Capital Advisors LLC, the $6 billion hedge fund company run by Steven A. Cohen, may let investors put money in its funds for the first time since the firm opened in 1992, said people familiar with the situation.

http://www.bloomberg.com/apps/news?pid=10000087&sid=aLpd99XmN6Os

 

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

 

CDS notional reached $6.3 trillion at end of 2004, BIS says 

26 May - The Bank for International Settlements (BIS) included figures on credit default swaps (CDS) trading for the first time in its semi-annual over-the-counter (OTC) derivatives market report. According to the recently released report, the notional amounts outstanding of CDS hit $6.3 trillion at the end of 2004. 

http://www.risknews.net/public/showPage.html?page=281919

 

Euro debt-Futures mark new historic high

LONDON (Reuters) - Euro zone government bond futures hit an historic high on Friday awaiting U.S. non-farm payrolls and recovering from an initial dip with soft overnight U.S. Treasuries and a weaker euro.

http://today.reuters.co.uk/news/newsArticle.aspx?type=businessNews&storyID=2005-06-03T071444Z_01_KNE325992_RTRUKOC_0_MARKETS-BONDS-EURO.xml

 

FIA Disaster Recovery Briefing Materials Online

The FIA IT Division held preliminary discussions in New York and Chicago to prepare for the industry-wide disaster recovery test scheduled for October 15.

https://www.futuresindustry.org/2005bcpd-2558.asp

 

Big Banks To Market Mandated Research

Independent research could get another boost from the global research settlement in the coming year--this time from the settlement banks themselves, who are considering turning the buzz around indie research they were mandated to provide into an attraction point for their customers.

http://www.institutionalinvestor.com/default.asp?page=1&SID=513889&ISS=14977&type=23

 

Dow Jones Indexes Announces Changes In the Dow Jones Global Titans 50, Dow Jones Asian Titans 50, Dow Jones Tiger Titans 50 And Dow Jones Sector Titans 30 Indexes

http://www.exchange-handbook.co.uk/news_story.cfm?id=53258

 

John's Comments

 

FOWeek Headlines   Issue 1022  06-Jun-2005

 

• Dow Jones Indexes battles ISE and OCC

• CSRC retains reins on China’s futures evolution http://www.fow.com/articles/foweek_article.asp?storyCode=3388

• EBS launches FX service in Asia on heels of CME

• Singapore to boost commodity futures and derivatives market

• CBOE buys 68 exercise rights, member sallies forth

• CBoT Argentinean MOU

• Exchanges refute BIS claims

• Grumbles brewing in Vietnam coffee market

• KRX boosts derivatives

• Pats adds functionality

 

********

 

CME Volume Excels

 

The CME now has a daily volume report in Excel format on the cme.com FTP site that shows daily volume by each of their products – including exchange totals.  There are currently files available since 5/20, but eventually this page will keep a rolling 5 days available for download and historical reports can be acquired through E-history.

http://www.cme.com/trading/dta/hist/histftp2421.html

 

*********

 

ROCKIN ON THE RIVER!!

 

Appearing at Rivers, 20 South Wacker (CME Building), June 10, 5 to 8PM

 

Jennifer Justice Band

 

Jennifer Justice                                     Lead Vocals, Guitar, Percussion

Dean Cassara                                        Drums

Sam Green                                            Bass, Vocals

Ray McKenzie                                       Guitar, Vocals

Brett McKenzie                                      Keyboards, Vocals

Scott Payne                                          Percussion

 

The Jen Justice Band features CME employees Jen (Justice) Jucovics and Ray McKenzie.  They play very current songs, as well as songs from the last 30 years, primarily female vocalist songs.  Sam Green, the bass player, was recently offered a chance to play in Santana.  Check it out!

 

http://www.riversrestaurant.com/events.php

 

And that is not all that is rockin at the CME!

 

CHICAGO MER EXC A (NYSE:CME) Delayed quote data 

 

Last Trade: 242.61

Trade Time: 12:48PM ET

Change:  10.61 (4.57%)

 

http://finance.yahoo.com/q?s=CME

 

Chicago Mercantile Exchange Holdings CEO and CFO to Present at Sandler O'Neill Conference

http://biz.yahoo.com/prnews/050603/cgf015.html?.v=9

 

*******

 

Brent Crude Watch

 

IPE Brent Volume: 123,105

NYMEX Brent Crude Volume: 5843

NYMEX Percent of Total Volume: 4.53%

 

********

 

Chicago Electronic Trading Scorecard for June 2, 2005

 

Percent Electronic

 

CBOT: 53.44%

CME: 57.23%

CME Eurodollars: 80.02%

CME Live Cattle: .96%

CME Currency Products: 79.99%

CBOT Soybeans: 4.37%

 

CBOT Options: 4.70%

CME Options: 2.53%

 

Volume 

 

OneChicago Volume: 68,264

Eurex US Volume: 12,654

Euronext.liffe Eurodollar Volume: 80.02%

CBOE Futures Exchange Volume: 501

 

Market Share

 

CBOT 100 oz. Gold Volume: 2748

NYMEX 100 oz. Gold Volume: 99,227

CBOT Share: 2.69%

 

CBOT 5000 oz. Silver Volume: 405

NYMEX 5000 oz. Silver Volume: 24,123

CBOT Share: 1.65%

 

CBOT Mini Gold Volume: 1175

CBOT Mini Silver Volume: 398

 

CME Emini Russell 1000 (100X) Volume: 2104

Eurex US Mini Russell 1000 (100X) Volume: 1530

NYBOT Mini Russell 1000 (50X) Volume: 12,654

CFE Mini Russell 1000 (100X) Volume: 0

 

CME Emini Russell 2000 Volume: 93,243

Eurex US Mini Russell 2000 Volume: 1530

CFE Mini Russell 2000 Volume: 146

 

Notes: OneChicago traded 55,000 contracts of General Electric yesterday and 12,001 contracts of Coca Cola.  

 

Liffe Eurodollar Over-Under

 

Liffe/Globex: 2.17%

Liffe/CME: 1.74%

 

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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