June 7, 2005

 

Lead Stories

 

Nymex approaches fork in road as it weighs expansion, IPO

The New York Mercantile Exchange has a popularity problem.

Not only do the rivals of the world's largest energy futures market want a bigger piece of its lucrative trade, but private equity firms, investment bankers and many investors covet a stake in the 132-year-old, members-only firm.  The Nymex is facing one of the most crucial moments in its history as it ratchets up its global expansion and weighs whether to accept an offer by equity investors to buy a minority stake, a move that would pave the way for a public offering.

http://www.theglobeandmail.com/servlet/ArticleNews/TPStory/LAC/20050607/RNYMEX07/TPBusiness/MoneyMarkets

 

Archipelago Exchange to Offer Index Services

The Archipelago Exchange , the nation's first totally open, all-electronic stock exchange, today announced a new service dedicated to indexes.

http://biz.yahoo.com/prnews/050607/nytu042.html?.v=12

 

Archipelago Shares Rise to All-Time High

Shares of Archipelago LLC, which is planning a merger with the New York Stock Exchange, rose steadily to an all-time high Monday, while the price of an NYSE seat climbed by $70,000.

http://news.yahoo.com/news?tmpl=story&u=/ap/20050606/ap_on_bi_ge/nyse_archipelago_1

 

Exchange Finds Trading Growth and Compliance Solution 

Case study: Veritas helps Chicago Mercantile keep pace with doubling futures trading volume and compliance laws.

The Chicago Mercantile Exchange is undergoing an unprecedented growth period, with the volume of trading doubling every year since Sept. 11, 2001. The exchange handles commodity futures (for example, live cattle and lumber), foreign exchange (such as the euro and the peso), equity index funds (like Nasdaq and the S&P 500) and one of the largest futures products in the world, the Eurodollar short-term interest rate contract.

http://www.eweek.com/article2/0,1759,1824828,00.asp?kc=EWRSS03119TX1K0000594

 

CME Commences Trading of ETF Futures

CME, the largest U.S. futures exchange, today announced that trading of futures contracts on two of the largest and most actively traded Exchange Traded Funds in the U.S., the NASDAQ-100® Index Tracking Stock and the S&P 500® Depositary Receipts began yesterday.

http://biz.yahoo.com/prnews/050607/cgtu041.html?.v=14

 

Espeed files new bid for MTS

Espeed, part of Cantor Fitzgerald Group, and a consortium of Euronext and Borsa Italiana, over the weekend filed their revised bids for MTS, the operator of Europe’s main government bond trading platform.

http://news.ft.com/cms/s/ef25b658-d6b6-11d9-b0a4-00000e2511c8.html

 

Four New Board Members Join The Options Clearing Corporation

CHICAGO, June 6 /PRNewswire/ -- The Options Clearing Corporation (OCC) announced today that four new members have joined OCC's Board of Directors. The newly appointed Directors are: Michael T. Bickford, Senior Vice President in charge of Options, American Stock Exchange; Paul J. Brody, Chief Financial Officer, Timber Hill LLC and Interactive Brokers Group LLC; and Cynthia Zeltwanger, President and Chief Executive Officer, Fimat USA, Inc. The fourth new member, Hans R. Stoll, Professor of Finance and Director of the Financial Research Center at Vanderbilt University's Owen School of Management, will take his position on July 1st.

http://biz.yahoo.com/prnews/050606/cgm044.html?.v=10

 

S'pore attracting more foreign companies to list on SGX

SINGAPORE : The Singapore Exchange has been successful in getting more foreign companies to list here. For the first five months of this year, there were 19 new foreign listings on the SGX. That puts it on track to match figures last year.

http://www.channelnewsasia.com/stories/singaporebusinessnews/view/151519/1/.html

 

SGX and its critics: Managing the gap

EVER since it was formed some five years ago, the Singapore Exchange has periodically had to face criticism. These criticisms largely have one theme in common – that the exchange seems unable to properly balance its role as a stock market regulator with its goals as a commercial listed entity.

http://biz.thestar.com.my/news/story.asp?file=/2005/6/7/business/11148294&sec=business

 

NASDAQ And Reuters Launch New Company To Help Companies Obtain Independent Analyst Coverage - Firms Cite Fact That Approximately 35% Of NASDAQ Companies U.S. Public Companies Lack Coverage

http://www.exchange-handbook.co.uk/news_story.cfm?id=53329

 

Environmental Trading News

 

Cash and Futures Market Prices Survey Report                       Tuesday, June 7, 2005 11:45 a.m. Central Time Report

SO2 Allowance Cash Market Survey

Vintage               Bid       Offer    Last

2005 (or earlier)   $765             $775        $770   (  June 7  )

2006                    $760             $770

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

 

CBOT to Establish Telecom Hub in Singapore

The CBOT announced today that the Exchange is establishing a new telecom hub in Singapore.

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1036+28703,00.html

 

CBOT Strike Price Notice, June 07, 2005

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+28712,00.html

 

Currency Deliveries Using CLS

http://www.cme.com/clearing/clr/clradv/13473.html

 

Proposed Amendment to the COMEX Silver Futures Contract Supplement No. 2, "Licensed Depositories and Licensed Weighmasters for Silver"

http://www.nymex.com/jsp/shareholder/notice_to_member.jsp?id=ntm239&archive=2005

 

Amendment to NYMEX Rule 9.02, Membership in the Clearing House

http://www.nymex.com/jsp/shareholder/notice_to_member.jsp?id=ntm237&archive=2005

 

Successful listing of Devgen on Euronext

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

 

LEAPS Conversion Schedule for Cycle 2 Options

http://www.cboe.com/tradtool/symbols/LEAPS/TP06-01.pdf

 

Korea Exchange to sell less than 30% of shares in IPO

SEOUL: Korea Exchange, operator of Asia's sixth-largest stock market, plans to sell less than 30% of its shares in its initial public offering next year, according to Chief Executive Lee Young Tak.

http://biz.thestar.com.my/news/story.asp?file=/2005/6/7/business/11147017&sec=business

 

Monthly Trading Volume & Value

http://www.tse.or.jp/english/data/v_and_v/index.html

 

TSX Venture Statistics – May 2005

http://www.exchange-handbook.co.uk/news_story.cfm?id=53335

 

Stockholmsbörsen Monthly Report - Derivatives Volumes May 2005

http://www.exchange-handbook.co.uk/news_story.cfm?id=53333

 

 

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/dig060605.txt

 

SEC Charges Gen Re Executive for Aiding in AIG Securities Fraud

http://www.sec.gov/news/press/2005-85.htm

http://www.sec.gov/litigation/litreleases/lr19248.htm

 

Financial insitutitions facing govenance changes

New federal legislation will update governance standards

http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=29105&IdSection=16&cat=16

 

IDA chairman defends self-regulation

Porter address Canadian Club in Toronto

http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=29104&IdSection=8&cat=8

 

Ex-SEC chief tells it his way

Former Securities and Exchange Commission Chairman Harvey Pitt, 95 pounds lighter and sporting a fresh take on his stormy departure from the agency in 2003, said Christopher Cox would make an excellent replacement for outgoing SEC Chairman William Donaldson.

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2005/06/07/BUGNSD4FCP1.DTL&feed=rss.business

 

Ex-SEC commissioner: Roll back Sarbanes-Oxley

Former SEC commissioner Harvey Pitt told a group of life science investors and executives in San Francisco on Monday that new regulatory requirements instituted in the wake of Wall Street scandals in recent years should be eased for small and mid-sized companies.

http://www.bizjournals.com/sanfrancisco/stories/2005/06/06/daily10.html

 

SEC says announcement of settlement with former Chicago treasurer was mistake

WASHINGTON - The Securities and Exchange Commission mistakenly announced that a judge had approved a settlement between the agency and a former Chicago city treasurer accused of taking payoffs in exchange for city business, an SEC lawyer said Monday.

http://www.belleville.com/mld/belleville/news/11828242.htm

 

New York's Highest Court Upholds Breach of Fiduciary Duty Claim by Issuer against Goldman Sachs

NEW YORK, June 7, 2005 (PRIMEZONE) -- The New York State Court of Appeals has allowed a claim for breach of fiduciary duty to proceed against Goldman Sachs & Co. for alleged wrongdoing in connection with its underwriting of the initial public offering ("IPO") of eToys in 1999. The action alleges that Goldman Sachs underpriced the eToys IPO in order to confer a gift of instant profits on its

http://au.biz.yahoo.com/050607/21/4occ.html

 

SEC Upholds NASD Ad Sanctions

The SEC has upheld a 10-month-old ruling by the NASD that imposes sanctions on Davrey Financial Services , as well as its former president, chief executive officer and chief financial officer, among other executives, for violating recordkeeping, net capital advertising and options advertising rules.

http://www.compliancereporter.com/default.asp?page=1&SID=516610&ISS=16506&pressbox=1

 

Managed Futures - Managed Funds

 

Greenspan: trouble ahead for hedge funds

WASHINGTON (Reuters) - Federal Reserve Chairman Alan Greenspan on Monday warned that hedge funds had picked the "low-hanging fruit" of easy profits and may be set for a fall as they assume more risks in a quest for high returns.

http://www.reuters.com/newsArticle.jhtml?type=businessNews&storyID=8711700

 

Hedge funds performance flat in May

By Jennifer Hughes in New York and James Drummond in London

Hedge fund performance was broadly flat in May, allaying fears that the downgrades of General Motors’ and Ford debt had badly damaged certain funds, according to early industry surveys published on Monday.

http://news.ft.com/cms/s/be4dfd0c-d6ab-11d9-b0a4-00000e2511c8.html

 

Circle T to absorb trader-induced losses

June-6-2005 - The principal of Circle T Partners will absorb losses resulting from unauthorized equity trades within the firm's flagship Circle T Partners Fund, ensuring that investors in the fund are not affected

http://www.marhedge.com/news/Cover.Hedge.asp?s=HedgeH-2005-06-06-12-26-22p1.htm

 

Morningstar reportedly beefing up hedge-fund coverage

BOSTON (MarketWatch) -- Morningstar Inc. is looking to extend its research presence to include the $1 trillion hedge-fund business, according to a published report.

http://www.marketwatch.com/enf/rss.asp?guid=%7B4740981B-BDC7-46F2-8180-385589EC6B85%7D&dist=rss&siteid=mktw

 

Millionaire Steinhardt Says Art Is Riskier Than Hedge Funds

U.S. June 7 (Bloomberg) -- Michael Steinhardt made his millions as a hedge-fund manager by betting against overvalued companies. Now, he says it's time to sell overpriced Picassos and Pollocks and buy bargains, such as antiquities.

http://www.bloomberg.com/apps/news?pid=10000103&sid=a9vVZfGkrsVs

Van Global Hedge Fund Index Gains 1.2% Net in May

The Van Global Hedge Fund Index gained 1.2% net of fees in May according to a preliminary report released today by Van Money Manager Research, LLC , a leading hedge fund index provider.

http://biz.yahoo.com/bw/050606/66145.html?.v=1

 

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

 

Bond trader makes its move on the gaming industry

Casino floors, like this one at the Tuscany Suites & Casino, may change if handheld wireless gaming devices are introduced.  Nevada gamblers will be able to place bets on Palm Pilot-like devices supplied by casinos so long as the wagering is confined to casino floors, according to a measure passed by state legislators late last month.  Assembly Bill 471 was drafted by the New York-based investment firm of Cantor Fitzgerald, with input from Nevada casino industry regulators.

http://www.lvbusinesspress.com/articles/2005/06/06/news/news01.txt

 

Saudis scramble for stake in stock market boom

RIYADH (Reuters) - Fahad, a thick-set 22-year-old, stands proudly next to the brand new Cadillac he bought with money made trading on the kingdom's booming stock market.

"I also bought a Mercedes. Praise be to Allah, I have done well," he said during a break from a busy trading room in Saudi Arabia's capital.

http://today.reuters.co.uk/news/newsArticle.aspx?type=reutersEdge&storyID=2005-06-07T090145Z_01_NOA732492_RTRUKOC_0_FEATURE-SAUDI-STOCKS.xml

 

InfoReach Adds Hotspot FXi Foreign Exchange Marketplace to Trade Management System

Financial securities trading technology firm InfoReach, Inc. and Hotspot FX, Inc. , the leading institutional foreign exchange marketplace company, today announced an agreement to facilitate access to Hotspot FXi by InfoReach clients directly through the InfoReach Trade Management System platform.

http://biz.yahoo.com/prnews/050607/phtu012.html?.v=13

 

Buffett asks Canadian to scout for investment opportunities

Canadian financial advisor preparing recommendations for Oracle of Omaha

http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=29109&IdSection=9&cat=9

 

Verizon Adds Audio Conferencing Services to Its Discounted SIA Service Package

http://www.sia.com/press/2005_press_releases/04024913.html

 

ISDA Publishes Asia Ex-Japan Interdealer Master Equity Derivatives Confirmation

http://www.isda.org/press/press060605.html

 

Ex-Merrill Lawyer Says Firm Retaliated Over Sex Claim (Update1)

June 7 (Bloomberg) -- A former lawyer at Merrill Lynch & Co., who settled a sex discrimination claim against the firm in July, told a London tribunal that the company retaliated by trying to sabotage her career plans.

http://www.bloomberg.com/apps/news?pid=10000085&sid=aNsq8.NtRojM

 

PIMCO Appoints New Funds President

NEWPORT BEACH, Calif., June 6, 2005 (PRIMEZONE) -- PIMCO, one of the world's leading fixed-income fund-management companies with over $464 billion in assets, today announced the appointment of Mr. Ernest L. Schmider as President of PIMCO Funds. As president of PIMCO Funds, Mr. Schmider, 47, will lead an organization that oversees 42 domestic fixed-income funds totaling $150 billion in assets. In

http://au.biz.yahoo.com/050606/21/4mbs.html

 

Retirees see nest eggs disappear with enticing investment plans

Plans pegged to glamorous retirement can prove too risky

KANSAS CITY, Mo. - After attending an investment seminar, George Painter, 59, rolled over a tidy pension fund at SBC Communications Inc. into a speculative stock account with hopes of retiring early.

Instead, he lost $300,000.  Painter, a former cable splicer, now mows the lawn at a Leavenworth, Kan., church while his wife, Barbara, works for a travel agency. They also refinanced their house to make ends meet.

http://www.buffalonews.com/editorial/20050607/1073155.asp

 

AmEx sees $945M spin-off costs

NEW YORK (Reuters) - American Express Co., financial services company, said Tuesday it anticipates $945 million of pretax costs through 2008 for the spin-off of its 12,000-broker personal finance advisory unit.

http://money.cnn.com/rssclick/2005/06/07/news/fortune500/american_express.reut/index.htm?section=money_latest

 

Morgan Stanley Cap Markets Exec Resigns

Morgan Stanley Inc. lost another high-ranking executive Tuesday after global capital markets chief David Topper jumped to rival JPMorgan Chase & Co., the latest defection in an exodus of bankers from the troubled securities firm.

http://biz.yahoo.com/ap/050607/morgan_defection.html?.v=1

 

John's Comments

 

A Cubs Fan with a Big Heart!

 

 

Bill Holden is walking across America, on a quest to raise money to fight juvenile diabetes.

 

Nice article on espn.com about a man who was inspired to walk from Arizona to Wrigley Field to raise money for juvenile diabetes by the story of Chicago Cubs legend Ron Santo.

 

The article is at: http://sports.espn.go.com/espn/page2/story?page=drehs/050606

 

More information about Mr. Holden's walk available at http://www.thisoldcub.com/walk2.htm

 

***** This is a great story and a great cause.

 

***********

 

Travel Plans

 

I will be out of the office on Friday, but plan on sending out a newsletter from home.  It is off to a Cub Scout campout for the weekend and we leave Friday afternoon.

 

I will be traveling to New York City on Wednesday, June 15 and returning on Friday, June 17 in the morning to Chicago.  The newsletter will be edited by Jon Matte in my absence.  If you have new on Wednesday or Thursday, you can contact Jon at jonm@defendercapital.com.

 

**********

 

Media Advisory--CBOT to Rededicate Statues Lost for 76 Years

1885 Ceres Statues are returned to the heart of Chicago's financial district.

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1036+28721,00.html

 

***** Industry and Agriculture statues to be rededicated at the CBOT.  When do we dedicate the Financial and Environmental statues?  Or we could just put up a statue of Dr. Richard Sandor.   How about a stack of old Project A terminals in a work of art to represent electronic trading?

 

***********

 

Brent Crude Watch

 

IPE Brent Volume: 105631

NYMEX Brent Crude Volume: 4148

NYMEX Percent of Total Volume: 3.78%

 

********

 

Chicago Electronic Trading Scorecard for June 6, 2005

 

Percent Electronic

 

CBOT: 61.11%

CME: 66.20%

CME Eurodollars: 8.58%

CME Live Cattle: .72%

CME Currency Products: 67.82%

CBOT Soybeans: 6.34%

 

CBOT Options: 818

CME Options: 399

 

Volume 

 

OneChicago Volume: 19,638

Eurex US Volume: 12,208

Euronext.liffe Eurodollar Volume: 41,360

CBOE Futures Exchange Volume: 697

 

Market Share

 

CBOT 100 oz. Gold Volume: 1641

NYMEX 100 oz. Gold Volume: 46,473

CBOT Share: 3.40%

 

CBOT 5000 oz. Silver Volume: 272

NYMEX 5000 oz. Silver Volume: 18,440

CBOT Share: 1.45%

 

CBOT Mini Gold Volume: 818

CBOT Mini Silver Volume: 399

 

CME Emini Russell 1000 (100X) Volume: 2747

Eurex US Mini Russell 1000 (100X) Volume: 964

NYBOT Mini Russell 1000 (50X) Volume: 12,208

CFE Mini Russell 1000 (100X) Volume: 0

 

CME Emini Russell 2000 Volume: 72,693

Eurex US Mini Russell 2000 Volume: 3062

CFE Mini Russell 2000 Volume: 357

 

Notes: The CME set open interest in Exchange Options, Interest Rate Options, Interest Rate Products and QQQ ETFs. 

 

Liffe Eurodollar Over-Under

 

Liffe/Globex: 4.39%

Liffe/CME: 3.63%

 

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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