Opening Commentary
The CBOT is for sale?
By John J. Lothian
In recent days a CBOT member has circulated a letter to fellow members to garner support for a NO vote for the June 22 vote of the S-1 filing that will approve an Initial Public Offering of shares in the for-profit CBOT. This letter brings a negative slant and focus to the omnibus “Equity Incentive Plan” approved in the S-4 filing previously approved by the members and holds it up as a dilutive bogeyman and reason to derail the IPO.
This letter is so misguided, negative and full of unbridled myopic greed that it will have no impact. But it does raise an important question that I was planning on writing about after the June 22 vote. Since it has been made an issue, let me add my perspective, which varies greatly from the impudent CBOT member’s.
The fact the CBOT Board of Directors (“BOD”) has not previously defined the omnibus equity incentive plan leaves me believing the BOD may be telegraphing a subtle message that the exchange is in fact for sale. And in response, perhaps the whispers about CME interest and a potential pre-IPO CME bid are true. Without the CBOT equity incentive plan in place, and the automatic vesting of the options in the plan if there is a change in ownership, a deal is easier to achieve and management and staff easier to dispose of in the inevitable “cost cutting”. If the CBOT BOD is not telegraphing that message the exchange is for sale, then I wonder what messages they think their actions and inactions are sending during the pre-IPO quiet period.
To date, the Board of Directors of the CBOT has not defined its plans to align the interests of the executives, directors and staff of the CBOT with investors with an equity incentive plan, ensuring management continuity and staff retention. There is an omnibus plan in the CBOT’s S-1 filing, but these are the last words about the plan:
“To date, no grants have been made under the equity incentive plan.”
The unfinished incentive plan, which grants up to 1,200,000 options to directors, management and staff, leaves them twisting in the wind while the IPO day approaches and potential serious tender offers are received.
The Long-Term Equity Incentive Plan outlined in the CBOT’s Form S-1 Registration Statement filing with the SEC is supposed to enhance the CBOT’s ability to attract and retain highly qualified employees, officers and directors. (http://www.sec.gov/Archives/edgar/data/1161448/000119312505100788/ds1.htm#tx37513_5) It is supposed to align the interests of the management and employees with the stockholders. It is supposed to apply a long term glue to the organization to keep it steady, consistent and successful.
With that plan undefined and ambiguous at this pre-IPO stage, the CBOT is at the specific disadvantage the incentive plan intends to remedy. How is the CBOT going to convince investment bankers and potential investors that the CBOT can maintain its current performance, the management team that has engineered it and the employees who executed it? Without the incentive plan clearly spelled out, that is going to be a difficult sales job.
Investors are going to want to see continuity in management and staff. An ambiguous “To Be Announced” later or “To Be Determined” plan, as in the current S-1, leaves me wondering why the Board of Directors would send such an ineffective message to investors. And it makes me wonder what message they are trying to send, if they are at all.
Unfortunately, the CBOT Board has a long legacy of issues clouding the incentive program. The generous exit agreement with former CBOT President Thomas Donovan, the prematurely ended contract of former CEO David Vitale and even the equity allocation between full and minority members are all potential psychological impediments in the way of developing and defining the CBOT equity incentive plan. They should not be impediments, but they are. At best, these issues have slowed the defining of this plan. The BOD should be focused on the future of the organization, not make the current management and staff pay for the mistakes or controversial decisions of past Board of Directors.
Of course, the beyond everyone’s expectations success of the CME shares and the sudden wealth of many of its upper echelon is also a factor in the CBOT Board’s slowness with this issue. And each and every time the CME shares have incredible upside days and weeks like last week, it only reinforces the potential negative impact of the CBOT having an undefined equity incentive plan.
I started thinking about this issue when I attended the Options Industry Conference a few weeks back. The International Securities Exchange has executed a successful IPO this year and I wanted to find out how the IPO impacted the exchange. What I found out is that every employee at the ISE was awarded options in the exchange, with a graduated scale depending on their position, compensation and other factors. Everyone from the mailroom to the executive suite received options. The ISE, I was told, is committed to maintaining its entrepreneurial and innovative spirit and used their equity options incentive plan to help cultivate that culture. As far as I can see, it is working well so far. I hope to see for myself when I visit the ISE in
At the other end of the spectrum is the CME, who only awarded its upper echelon management and staff with options. Lower level employees could participate in the IPO, but only as their own financial commitment would allow in a friends and family share purchase program. Because of the incredible success of the CME shares since their IPO at $35 per share (now over $240 per share), there is some discussion that the CME has created a corporate culture of “haves” and “have-nots.” Some “have-nots” and even some “haves” have expressed discontent and concern about this result of the IPO and its impact on the CME corporate culture.
Based on the CBOT’s filing, it would appear they are following in the CME’s footsteps, if they ever get around to defining the program. They will reward and create incentives for upper level management, directors and key employees, though the “greenline” has to date been undefined. With elements of a legacy management and officer structure from its days as a member-owned not for-profit organization, defining who gets options and how much at the CBOT could be a difficult and divisive endeavor.
Also clouding the issue is the remarkable rise in the CBOT’s membership prices, particularly the full memberships, ahead of the IPO. As the CBOT has gotten closer to unlocking the value of the exchange through an IPO, membership prices have begun to reflect their value beyond those of the trading opportunity, fee discounts and buy and lease investments.
I also think there is an element of greed which is clouding this issue. There is so much focus on the appreciation of the CBOT membership prices and talk about potential mergers or sale of the exchange that some members and even the BOD have taken their eye off the ball of what has made the CBOT successful since the dark days of 2001. The CBOT is now a well-run for-profit organization with smart, savvy, customer focused management that has executed extraordinarily well. They have made the difference.
I can’t think of any good reason the CBOT BOD should not step up and define the equity incentive plan for the CBOT management and staff right now, which is the one thing I agree with the CBOT member I mentioned. The BOD needs to send the right message to investors. This management team and the exchange staff are key to the exchange’s success and need to be incentivized to stay with the exchange for the long term.
The greed blinded CBOT member has it wrong. The IPO is not just about enriching CBOT members. It is about forming a company that is organized, structured, staffed, managed, directed and incentivized to grow and prosper in the future. Rather than being dilutive, an equity incentive plan creates the corporate culture that rewards good performance of the staff, management and directors and adds value. It creates alignment of interests that builds value into the company and brand and attracts bright, talented people. It is about teamwork and synergies, not greed. The end result is an appreciating share price and a company worthy of the CBOT name.
The CBOT’s future is as a well-run, for-profit, publicly traded independent company with smart, talented and outstanding management and dedicated staff and the CBOT BOD needs to send an unequivocal message to that effect by instituting the equity options plan they have announced in their filings. And they need to send the a clear and unambiguous message to the management and staff that they are important part of an independent CBOT, their interests are aligned with those of the investors, and everyone together is focused on the long-term success of the CBOT.
I would encourage the CBOT BOD and decision makers to make the equity incentive plan as inclusive as possible. Make the “greenline” low and the morale high as the exchange opens this new chapter in its long and heralded history.
**********
~Excerpt from the S-1
Equity Incentive Plan
Prior to the completion of the restructuring transactions, we adopted and approved the 2005 Long-Term Equity Incentive Plan in order to enhance our ability to attract and retain highly qualified employees, officers and directors. There are several types of awards that may be issued under the equity incentive plan: restricted stock and stock units, incentive and nonqualified options, stock appreciation rights and performance awards. A total of 1,200,000 shares of our Class A common stock are reserved for issuance under the equity incentive plan, subject to equitable adjustment by our human resources committee upon certain corporate transactions or events. Shares subject to an award that remain unissued upon the expiration, termination or forfeiture of the award will again become available for award under the equity incentive plan, unless in the case of options granted under the equity incentive plan, related stock appreciation rights are exercised.
The equity incentive plan will be administered by our human resources committee. Our directors, officers and key employees and other key individuals performing services for us are eligible to receive awards under the equity incentive plan in the discretion of our human resources committee. The human resources committee has the responsibility for interpreting the plan and determining the terms and conditions of awards made under the equity incentive plan, including when they will become exercisable or otherwise vest. The human resources committee generally has the authority to amend the terms of any outstanding award. The equity incentive plan may be amended by our board or our human resources committee, subject to stockholder approval where necessary in order to satisfy legal or regulatory requirements. The equity incentive plan will terminate no later than April 22, 2015.
If a participant ceases to be a director, officer or employee of, or to perform services for, us due to cause as defined in the equity incentive plan, all of the participant’s options, stock appreciation rights, restricted stock and stock units and performance awards will be automatically forfeited. If we experience a change in control, all of a participant’s options and stock appreciation rights will become fully vested and exercisable until their expiration date, all restrictions on restricted stock and stock units will lapse and the participant will be entitled to a proportionate portion of any performance award. If a participant ceases to be a director, officer or employee of, or to perform services for, us due to any other reason, the human resources committee has the discretion to determine the circumstances under which a participant will retain or forfeit all of his or her previously granted awards.
To date, no grants have been made under the equity incentive plan.
Lead Stories
Note from the Chairman
This is an exciting time for our business. In a few months, it is likely that most of the major exchanges in the
http://www.nymex.com/jsp/shareholder/notice_to_member.jsp?id=ntm243&archive=2005
NYMEX May Launch
http://news.moneycentral.msn.com/provider/providerarticle.asp?feed=AP&Date=20050607&ID=4874910
Seat bids heat up as NYMEX mulls options
Bids for seats on the New York Mercantile Exchange jumped on Tuesday as the bourse, which is trading at record volumes, said it would complete its analysis of strategic alternatives within the next 60 days.
http://news.yahoo.com/news?tmpl=story&u=/nm/20050607/bs_nm/energy_nymex_seats_dc_1
eSignal and
eSignal, a division of Interactive Data Corporation and a leading provider of streaming, real-time financial market data, news, analytics and decision support tools to professional and individual traders, today announced with the New York Mercantile Exchange, Inc. , the immediate availability of a new service called NYMEX Direct.
http://biz.yahoo.com/bw/050608/85035.html?.v=1
Record Trading in Euro-Bund Futures: 2.9 mio. contracts traded on a single day
Record Trading in Euro-Bund Futures (FGBL)
08 Jun 2005
- Current record (June 7, 2005):
2.87 million contracts
- Previous record (March 7, 2005):
2.52 million contrac
- Since the launch of Phase 1 of the Global Clearing Link in November last year, average monthly turnover in the Euro-Bund Future increased 31.7percent (average monthly trading volume Jan-May 2004: 19.59 million compared to 25.8 million contracts for the period Jan-May 2005).
http://www.eurexchange.com/about/company_info/press_releases/news_pressreleases_412.html
PHLX stands in the way of the ISE
PHLX files a motion to halt the ISE Gold Index
The Philadelphia Stock Exchange announced that it is seeking to block the International Securities Exchange from launching a new gold index, alleging copyright infringement.
The PHLX says it filed a motion in the U. S. District Court, Southern District of New York, for a temporary restraining order and preliminary injunction to prevent the anticipated launch of the recently announced ISE Gold Index. It claims in its filing that the new index is a copycat index that mimics almost exactly the PHLX Gold/Silver Index.
http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=29119&IdSection=15&cat=15
PHLX Files Motion for Temporary Restraining Order and Preliminary Injuction to Prevent Launch of ISE Gold Index
http://www.phlx.com/news/pr2005/05pr060705a.htm
Not a Member of the Club
Why Wall Street is worried about Christopher Cox becoming head of the SEC
http://www.msnbc.msn.com/id/8141119/site/newsweek/
Greed Is Still a Sin
June 8, 2005June 7 - It's amazing how short memories have become. Consider the two pieces of revisionist history of last week. First, that the Arthur Andersen accounting firm was done in by government prosecutors—when in reality it committed suicide. Second, that departing Securities and Exchange Commission Chairman William Donaldson was an anti-business zealot—when in reality, he was trying to protect Wall Street from itself and restore the public's faith in financial markets.
http://www.msnbc.msn.com/id/3032542/site/newsweek/
Trading Technologies Launches Trading via X_TRADER(R) Platform on Montréal Exchange
MX becomes first exchange to connect to TT via FIX Protocol
http://www.msnbc.msn.com/id/3032542/site/newsweek/
Trading Technologies Launches Trading via X_TRADER Platform on Montréal Exchange - MX becomes first exchange to connect to TT via FIX Protocol
http://www.m-x.ca/f_comm_press_en/011-05_en.pdf
Keynote Address by Acting Chairman Sharon Brown-Hruska before the Managed Funds Association Annual Forum 2005
http://www.cftc.gov/opa/speeches05/opabrownhruska34.htm
~Excerpt
“One of the things that I enjoy about addressing this group and having the opportunity to meet and chat with you, is that you put into practice what I have spent my life researching and teaching about: risk taking and risk management. It is as fundamental to business as water is to life, since without risk taking, there would be little entrepreneurship and innovation would likely move at the pace of the Stone Age. But with risk and its expeditious management, individuals and businesses can dare to specialize and innovate in order to maximize their opportunities, expand their wealth and that of investors, and expand the limits of the economy to achieve greater employment and higher welfare.”
-Sharon Brown-Hruska
***** Perfect names. I have a question. The head of the Managed Funds Association is John Gaine. If John’s last name was “Loss” would he have this job? Does Futures Industry Association President John Damgard’s last name really mean “white haired Washington Wizard” in Danish?
Clearstream Sees Rise in International Transactions of 14.4 Percent in May
ABN Amro, JPMorgan to Enter Shipping Futures Trading (Update2)
June 8 (Bloomberg) -- ABN Amro Holding NV, the biggest Dutch lender, and JPMorgan Chase & Co., the No. 3 U.S. bank, plan to enter the $36 billion shipping futures market to benefit from widening price swings.
http://www.bloomberg.com/apps/news?pid=10000085&sid=auV926mTxSG8&refer=europe
New product suite for professional traders
Pro-Mark, IQ-Trader and Platinum enhancements give professionals more trading power
10 Stocks for a Really Rainy Day
By Pat Dorsey, CFA
Here's a fun question: What 10 stocks would you buy if the market dropped 30% over the next week?
http://biz.yahoo.com/ms/050608/136107.html?.v=1
Market Pulse: CME eyes growth in derivatives biz
NEW YORK (MarketWatch) -- The Chicago Mercantile Exchange said it expects to grow profit from continued migration to its marketplace, European and Asian expansion, new initiatives and keeping costs down. Speaking at the Sandler O'Neill Financial Services Confernce, the CME said growth of derivatives contract trading is being fueled by increased need for risk management and the increased sophistication of investors. The CME said it's outperforming peers such as the Eurex, the CBOT and the Euronext in average daily volume through May of 2005. Shares of the CME fell $1.22 to $243.17 in recent action.
http://biz.yahoo.com/cbsmb/050608/b86eb4a64b1446bb87e873b761089d86.html?.v=1
Firm Makes Counterbid for Instinet Unit
The proposed merger between the Nasdaq Stock Market Inc. and the electronic trading arm of Instinet Group Inc. could be delayed after an investment advisory company made a separate, higher bid for Instinet's institutional brokerage division.
http://news.yahoo.com/news?tmpl=story&u=/ap/20050608/ap_on_bi_ge/nasdaq_instinet_3
Instinet gets bid for brokerage unit
Electronic brokerage firm Instinet Group Inc. , which plans to be acquired by Nasdaq Stock Market Inc. for $1.9 billion, said on Wednesday that Third Avenue Management offered to buy its institutional brokerage unit.
http://news.yahoo.com/news?tmpl=story&u=/nm/20050608/bs_nm/financial_instinet_dc_1
Environmental Trading News
Products firms left in dark over ETS opt-out
The European Commission’s decision last week to allow
http://www.contractjournal.com/home/Default.asp?type=2&liArticleID=46871&liSectionID=1&liDF=1
Bush Aide Softened Greenhouse Gas Links to Global Warming
A White House official repeatedly edited climate reports in ways that play down links between emissions and global warming.
Exchange & ECN News
CBOT Strike Price Notice, June 08, 2005
http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+28736,00.html
E-CBOT Dow Jones Strike Price Notice, June 08, 2005
http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+28737,00.html
International Securities Exchange to Present at Sandler O'Neill & Partners, L.P. 2005 Financial Services Conference
http://phx.corporate-ir.net/phoenix.zhtml?c=176358&p=irol-newsArticle&ID=717948&highlight=
Exchange to Add Trading Month for Crude Oil Calendar Spread Options
http://www.nymex.com/jsp/news/press_releas.jsp?id=pr20050607a
NYSE Regulation Announces Disciplinary Actions Against Two Member Firms and 13 Individuals
http://www.nyse.com/press/1118054802425.html
NYSE Seat Sells for $2,500,000
http://www.nyse.com/press/1118140840992.html
£1m pay packet puts Furse among equals
CLARA Furse, chief executive of the London Stock Exchange, has bagged a £1m pay, shares and options package. Her handsome rewards came despite disappointment that she failed to nail down a merger of the LSE with either of its two erstwhile suitors,
http://www.thisislondon.co.uk/news/business/articles/timid401170?source=This%20is%20Money
Archipelago to launch new index, ETF service
http://www.investors.com/breakingnews.asp?journalid=28097951&brk=1
New Euronext/Borsa bid values MTS at 245 mln euros
MILAN, June 7 (Reuters) - Pan-European exchange Euronext (ENXT.PA: Quote, Profile, Research) and Borsa Italiana have increased their joint offer for MTS to value the electronic bond trading platform at around 245 million euros, sources close to the deal said on Tuesday. Euronext and Borsa Italiana had previously offered between 190 and 210 million euros for the whole of MTS.
http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8721143
Commodity Futures Trading Commission Increases Wheat Speculative Limits
Speculative limits for wheat futures traded at the Minneapolis Grain Exchange (MGEX), Kansas City Board of Trade (KCBT) and the Chicago Board of Trade (CBOT) have been revised by the Commodity Futures Trading Commission and will go into effect June 10, 2005.
http://www.grainnet.com/info/articles.html?type=bn&ID=26602
Maiden commodity futures index
Mumbai, June 7 : MCX-Comdex, the country’s first composite commodity futures index was unveiled today, when the Multi-Commodity Exchange (MCX) designed and developed an index that could give a snap shot of sentiments prevailing in the commodity markets.
http://www.telegraphindia.com/1050608/asp/business/story_4840521.asp
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/dig060705.txt
SEC Nominee Has Friends on Wall Street
Christopher Cox, the conservative
Campaign contributions from accounting firms, banks, insurers and brokerages account for roughly 14% of the $6 million raised by Cox since 1989, according to an analysis by the Center for Responsive Politics, a nonpartisan group.
June 8 (Bloomberg) -- China Aviation Oil (
http://www.bloomberg.com/apps/news?pid=10000080&sid=aGUvSxirq0wU
Dow Jones Newswires June 08, 2005 03:06 ET (07:06 GMT) Singapore Police Also Arrests CAO's Jia, Gu, Li (MORE) Dow Jones Newswires June 08, 2005 03:07 ET (07:07 GMT) Singapore Police:CAO's Head Of Finance Lim Also Arrested (MORE) Dow Jones Newswires June 08, 2005 03:07 ET (07:07 GMT) Singapore Police: CAO's Chen, Others To Be Charged Thu (MORE) Dow Jones
http://au.biz.yahoo.com/050608/18/4ot1.html
Former Wall Street executive banned after p*o*r*n star indiscretions
Court, regulator make judgements of insider trading
http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=29128&IdSection=8&cat=8
OSFI warns institutions about reputational risk
OSFI publishes a report on reputation risk
http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=29118&IdSection=8&cat=8
OSC approves settlement with Buckingham Securities
Firm’s registration revoked
http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=29117&IdSection=8&cat=8
June 8 (Bloomberg) -- Executives at Berkshire Hathaway Inc.'s General Re unit knew four years ago that American International Group Inc. would use a reinsurance transaction to ``cook the books,'' according to phone transcripts cited in a suit from regulators.
http://www.bloomberg.com/apps/news?pid=10000087&sid=awqGqXVjhS94
SEC Official Defends Agency Actions By MARCY GORDON, AP Business Writer
http://news.yahoo.com/news?tmpl=story&u=/ap/20050607/ap_on_bi_ge/sec_mutual_funds_1
NASD Charges 15 Firms With Directed Brokerage Violations, Imposes Fines Totaling More Than $34 Million
NASD announced today that it has imposed fines totaling more than $34 million on 15 broker-dealers in connection with the receipt of directed brokerage in exchange for preferential treatment for certain mutual fund companies.
http://biz.yahoo.com/prnews/050608/dcw016.html?.v=13
Brokers reportedly may settle charges over fund sales
BOSTON (MarketWatch) -- Over a dozen brokerage firms, including six subsidiaries of embroiled insurance company American International Group Inc. , may settle with the National Association of Securities Dealers as early as Wednesday over undisclosed compensation arrangements they had with mutual-fund firms, according to published reports.
Managed Futures - Managed Funds
A Relief: Some Gains for Hedges
Whew. Hedge funds, which had been buffeted in early May by talk of huge losses tied to General Motors securities, managed to end the month with modest gains, according to firms that track the funds' performance.
http://www.nytimes.com/2005/06/08/business/08place.html?
New study finds corporate pensions prefer hedge funds
June-7-2005 - Corporate pension funds are more willing than public plans to consider diversifying their portfolios to include hedge funds and other alternative investments, according to a new survey by JPMorgan Asset Management
http://www.marhedge.com/news/Cover.Hedge.asp?s=HedgeH-2005-06-07-16-45-56p1.htm
Man Group's Fink Says More Hedge Funds Will Seek Stock Listing
U.K. June 8 (Bloomberg) -- More hedge funds around the world will sell shares to the public and list on the stock market as their owners look to profit from the expansion of the industry, according to Man Group Plc Chief Executive Stanley Fink.
http://www.bloomberg.com/apps/news?pid=10000102&sid=afGkl7Cl5p5g
German govt body opposes restrictions on hedge funds' voting rights - report
http://www.iii.co.uk/news/?type=afxnews&articleid=5317550&subject=economic&action=article
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
FTSE publishes report on corporate responsibility
FTSE4Good index enhances its criteria
http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=29121&IdSection=15&cat=15
Easybroker Speeds Trading With Virtualised IT Services From SAVVIS
SAVVIS , a leading global IT utility, announced today that Easybroker, an independent, full service, agency brokerage operating in the global equity markets, will adopt their virtualised services delivery platform.
http://biz.yahoo.com/bw/050608/76163.html?.v=1
ITG Releases May 2005
Investment Technology Group, Inc. , a leading provider of technology-based equity trading services and transaction research, today announced that
http://biz.yahoo.com/prnews/050608/nyw027.html?.v=14
Operational Risk - Communications Expertise Neglected in Boardroom
http://www.garp.com/risknews/newsfeed.asp?Category=6&MyFile=2005-06-08-10952.html
Operational Risk - Companies Need to Standardize Policies and Procedures Documentation
http://www.garp.com/risknews/newsfeed.asp?Category=6&MyFile=2005-06-08-10951.html
Operational Risk - International Financial Conglomerates Need Supervision
http://www.garp.com/risknews/newsfeed.asp?Category=6&MyFile=2005-06-08-10950.html
Wife drugged and killed Merrill Lynch banker-court
Farm-grown biofuels look to siphon oil demand
AT&T Gets $27 Million Cargill Contract
AT&T Corp. said Wednesday it signed a $27 million contract to deploy global networking for Cargill Inc., providing the largest privately held company in the nation with domestic and international high-speed data, Internet and voice services.
http://biz.yahoo.com/ap/050608/at_t_deals.html?.v=1
Wealthy, Middle Class Have Similar Concerns
Wealthy Americans, it seems, have many of the same concerns as middle class Americans. A survey released Tuesday by U.S. Trust Corp., a wealth management firm owned by the Charles Schwab Corp., found that the affluent are most worried about whether their kids will have a tougher life financially than they do.
http://biz.yahoo.com/ap/050607/wealth_survey.html?.v=2
Anne Bancroft dies; turned Mrs. Robinson into metaphor
http://www.suntimes.com/output/entertainment/cst-ftr-xbanc.html
Events –
Due to popular demand,
Bell Curve Trading has identified profitable supply/demand imbalances for professional upstairs traders for 20+ years. Using live markets, join them as they show you how understanding supply and demand can help your trading.
When: Monday, July 11th, 2005, from, 9:00 a.m. to 5:00 p.m.
Where: Committee Room HIJ, 3N
Cost:* $250.00 - CME & CBOT members, member firms and employees*
$450.00 - Non CME & CBOT members
Full day session covers methodology, terminology, and identification of solid risk reward trades, with timing and price objectives. Use live markets to demonstrate Bell Curve’s benefits. Morning and afternoon snacks will be provided. There will be a mid-day break for lunch.
*For planning purposes, registration is recommended prior to Thursday, June 16th. Call Robin Gemeinhardt at 312-930-4527 or
Payment is due on day of session. Checks only, please, made payable to: Bell Curve Trading LLC.
John's Comments
Brent Crude Watch
IPE Brent Volume: 178,435
NYMEX Brent Crude Volume: 18,512
NYMEX Percent of Total Volume: 9.40%
********
Percent Electronic
CBOT: 66.08%
CME: 74.34%
CME Eurodollars: 85.78%
CME Live Cattle: .46%
CME Currency Products: 61.93%
CBOT Soybeans: 3.87%
CBOT Options: 8.73%
CME Options: 7.55%
Volume
OneChicago Volume: 32,387
Eurex
Euronext.liffe Eurodollar Volume: 37,960
CBOE Futures Exchange Volume: 1266
Market Share
CBOT 100 oz. Gold Volume: 1443
NYMEX 100 oz. Gold Volume: 57,153
CBOT Share: 2.46%
CBOT 5000 oz. Silver Volume: 409
NYMEX 5000 oz. Silver Volume: 21,128
CBOT Share: 1.90%
CBOT Mini Gold Volume: 523
CBOT Mini Silver Volume: 295
CME Emini Russell 1000 (100X) Volume: 4312
Eurex
NYBOT Mini Russell 1000 (50X) Volume: 16,528
CFE Mini Russell 1000 (100X) Volume: 0
CME Emini Russell 2000 Volume: 128,421
Eurex
CFE Mini Russell 2000 Volume: 371
Notes: The CME set new open interest records yesterday in Exchange Options, Interest Rate Products, Interest Rate Options and new volume records in Japanese Yen futures on Globex and in the new SPRD ETF futures.
Liffe Eurodollar Over-Under
Liffe/Globex: 2.30%
Liffe/CME: 1.98%
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.
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