June 9, 2005

 

Lead Stories

 

 

CBOT statues return home from suburbs

BY DAVID ROEDER Business Reporter

For years, they were two gigantic granite mysteries, each 12 feet tall and weighing about 51/2 tons.

What were those sculpted goddesses that turned up in 1978 on land acquired by the Forest Preserve District of DuPage County? The district had no idea at first and didn't know what to do with the statues. But they were well-crafted works, so it displayed them for some years in a preserve parking lot.

http://www.suntimes.com/output/business/cst-fin-cbot09.html

 

**** Nicely done story by the SunTimes David Roeder.

 

Statues return to Chicago Board of Trade after 76-year absence

CHICAGO - A pair of huge granite goddesses that mysteriously vanished in 1929 were welcomed back at the Chicago Board of Trade on Thursday after an unlikely stay at a suburban forest preserve.

http://www.sanluisobispo.com/mld/sanluisobispo/business/11854205.htm

 

CBOT Chairman Rededicates Statues Lost for 76 Years

The CBOT kicks off 75th Anniversary Celebration of the Board of Trade Building with the rededication of two statues that once stood at the entrance of the original CBOT building in 1885. See clips of the rededication ceremony.

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1036+28762,00.html

 

**** Charlie Carey’s speech was very well written and delivered with a personal and informal touch.  

 

CME FX Sets Overall and CME(R) Globex(R) Volume Records

CME, the largest U.S. futures exchange and the largest regulated marketplace for foreign exchange trading, set several FX volume records yesterday, including a new total FX volume record of 748,050 contracts, representing $87 billion in notional value, and surpassed the previous record of 679,700 futures and options contracts traded achieved on Dec. 6, 2004.

http://www.cme.com/about/press/cn/05-81EuroFXRecord213498.html

 

The Options Clearing Corporation Continues to Lower Clearing Fees as Trading Volume Rises

The Options Clearing Corporation announced today that it is lowering its clearing fees for the third time since April 2004, with this latest move dropping the fee 29 percent for most trades.

http://biz.yahoo.com/prnews/050608/cgw048.html?.v=15

 

Brazil's Futures Exchange to Develop Short-Term Energy Contract

June 9 (Bloomberg) -- Brazil's commodities and futures exchange plans to develop a short-term energy contract that will help utilities, generators and energy trading companies cut transaction costs, the exchange said in an e-mail.

http://www.bloomberg.com/apps/news?pid=10000086&sid=agxE8oogF0pY

 

Tokyo Stock Exchange to double derivatives trading capacity - report

TOKYO (AFX) - The Tokyo Stock Exchange (TSE) plans to spend some 11 bln yen to double its capacity by the second half of 2007 for processing trades of derivatives products such as stock index futures and options, the Nihon Keizai Shimbun reported, without citing sources.

http://www.iii.co.uk/news/?type=afxnews&articleid=5318628&subject=markets&action=article

 

SGX seeks to allay Taiwan fears over derivatives trade

SINGAPORE, June 9 (Reuters) - The Singapore Exchange Ltd. (SGX) sought on Thursday to allay fears in Taiwan about a move to electronic trading of a stock futures product, saying it complemented rather than rivalled Taiwan's futures markets.

http://asia.news.yahoo.com/050609/3/22675.html

 

Nymex seen inking agreement for Dubai Exchange on Friday

NEW YORK — The New York Mercantile Exchange plans to enter an agreement on Friday with the Dubai government to launch the Middle East’s first energy and metals futures exchange, people close to the matter said.

http://www.khaleejtimes.com/DisplayArticle.asp?xfile=data/business/2005/June/business_June213.xml&section=business&col=

 

Failed hedge funds make a big noise

In the pantheon of hedge fund blowups, the $215 million that Downtown money manager MDL Capital Management lost for the Ohio Bureau of Workers' Compensation is small potatoes.

Nor is Mark D. Lay, who built MDL into an influential $2.8 billion money management firm that has stumbled in recent years, the first investor to lose millions making an errant bet on interest rates.

But the loss will put increased scrutiny on hedge funds, an $875 billion industry that's growing about 20 percent annually, according to figures from The Hedge Fund Association.

http://www.post-gazette.com/pg/05160/518266.stm

 

Instinet Group Issues Statement Regarding Third Avenue Management Proposal

NEW YORK--(BUSINESS WIRE)--June 8, 2005--Instinet Group Incorporated (NASDAQ:INGP) today released the following statement.

"We have received a letter from Third Avenue Management proposing to buy the assets and liabilities of one of our businesses, Instinet, The Institutional Broker. The proposal described in the letter is subject to, among other things, the completion of due diligence to Third Avenue Management's satisfaction. Our Board of Directors is reviewing the letter in a previously scheduled meeting.  However, we note that, under our merger agreement with The Nasdaq Stock Market, Inc., we are subject to restrictions with respect to third party proposals of the type contained in the letter from Third Avenue Management."

http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20050608005543&newsLang=en

 

Instinet Says Third Ave. Bids for Brokerage Unit

PHILADELPHIA (Reuters) - Electronic brokerage firm Instinet Group Inc. (INGP.O: Quote, Profile, Research) , which plans to be acquired by Nasdaq Stock Market Inc. (NDAQ.O: Quote, Profile, Research) for $1.9 billion, said on Wednesday that Third Avenue Management offered to buy its institutional brokerage unit for $307 million cash.

http://www.reuters.com/newsArticle.jhtml?type=topNews&storyID=8740489

 

Instinet agrees to deal with Nasdaq

Institutional broker also receives proposal from Third Avenue Management

http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=29144&IdSection=15&cat=15

 

NYBOT Leadership Appointed To USIACC Corporate Advisory Board

http://www.nybot.com/releases/pressRelease.asp?releaseID=885

 

NYBOTs U.S. Dollar Index Sets Record Volume And Open Interest

http://www.nybot.com/releases/pressRelease.asp?releaseID=884

 

Environmental Trading News

 

Chicago Climate Futures Exchange SO2 Allowance Cash and Futures Market Prices Survey Report                         Thursday, June 9, 2005 11:45 a.m. Central Time Report

SO2 Allowance Cash Market Survey

Vintage               Bid       Offer    Last

2005 (or earlier)   $760             $770         $765    ( June 9)

2006                    $755             $765

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

 

NYMEX seat sells for record $2.485 mln

NEW YORK (Reuters) - A seat on the New York Mercantile Exchange, which is contemplating an IPO at a time of strong oil and gas prices and record trading volumes, sold on Wednesday for a record $2.485 million, up more than 24 percent from the last record hit in October 2004.

http://www.reuters.com/newsArticle.jhtml?type=businessNews&storyID=8736345

 

CBOT Bund, Bobl, and Shatz June Settlement

CBOT Bund, Bobl, and Schatz futures for expiration in June 2005 were cash-settled today at the following final settlement prices:

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1027+19946,00.html

 

W. Wheat Stabilizes While Latest Corn Ratings Improve

W. Wheat stabilizes, corn crop ratings rise, and U.S. soybean plantings ahead of 5-year pace.

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1027+28741,00.html

 

CBOT Strike Price Notice, June 09, 2005

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+28754,00.html

 

CBOT Trading Position Change Notice , Dow Jones, June 09, 2005

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+28753,00.html

 

June 2005 Currency Delivery Reminders

http://www.cme.com/clearing/clr/clradv/13490.html

 

NYMEX Holdings, Inc., to Distribute Divdend to Shareholders 

http://www.nymex.com/jsp/news/press_releas.jsp?id=pr20050608b

 

Exchange Sets Record For NYMEX Division Seat Sale

http://www.nymex.com/jsp/news/press_releas.jsp?id=pr20050608a

 

NYSE Appoints Mark H. Wille Vice President, Market Development

http://www.nyse.com/press/1118227149406.html

 

Espeed losing edge in MTS bid

The consortium of Euronext/Borsa Italiana on Wednesday appeared to have the upper hand over US rival eSpeed in the bidding for MTS, which operates pan-European bond trading platforms.

http://news.ft.com/cms/s/d484284c-d847-11d9-8fa7-00000e2511c8.html

 

Bursa Malaysia considers shortened trade for some stocks

Bursa Malaysia is considering limited trading hours for its thinly traded or more volatile stocks to foil share manipulators whose recent antics have hurt confidence in the market's smaller companies.

http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Article_6071e570-cb73c03a-6279d000-684996bb

 

NYSE takes action against specialist firms

Individuals fined for failing to supervise former telecom analyst

http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=29136&IdSection=8&cat=8

 

Spot contract system in rubber, pepper futures trading

Kerala News, KOCHI : As a powerful tool in price risk management in the fast growing commodities futures market, the National Multi-Commodity Exchange (NMCE) launched ''T plus Two'' basis spot contracts in rubber and pepper here today.

http://www.keralanext.com/news/indexread.asp?id=223577

 

SGX Awards Lease and Operations of GETC to REFCO

http://www.refco.com/nr/sendfile.asp?a=disptypeinline&tab=postings&Id=333&fn=1&filename=080605SGXawardsleaseandoperationsofGETCtoREFCO%2Epdf

 

Pacific Exchange to Trade Magellan Midstream, New Century Financial, Northern Border, SFBC International, and UCBH

The Pacific Exchange announced that on Wednesday, June 8, 2005, it will begin trading options on Magellan Midstream Partners, L.P.; New Century Financial Corp.; Northern Border Partners, L.P.; SFBC International, Inc. (PCX: SFCC); and UCBH Holdings, Inc..

http://biz.yahoo.com/iw/050607/088296.html

 

Monthly Market report for May 2005

http://www.londonstockexchange.com/en-gb/about/Newsroom/Market+Reports/2005/june05mmr.htm

 

Chicago Stock Exchange fines 7 specialist firms

The Chicago Stock Exchange slapped seven current or former specialist firms Wednesday with fines totaling $473,700 for trading violations that worked against the interests of outside customers.

http://www.suntimes.com/output/business/cst-fin-chx09.html

 

Remarks By TSX Group CEO Richard Nesbitt At BCTIA’s Awards Dinner

http://www.exchange-handbook.co.uk/news_story.cfm?id=53370

 

The Spanish Exchanges Launch The Ibex Medium Cap® And Ibex Small Cap® Indices - The Indices, Which Will Be Replicable And Investable, Will Be Calculated As Of July 1st - BME Will Host The First Medium And Small Capitalisation Companies Forum

http://www.exchange-handbook.co.uk/news_story.cfm?id=53367

 

London Stock Exchange: SETSmm Contributes To Growth In Order Book Volume During May

http://www.exchange-handbook.co.uk/news_story.cfm?id=53365

 

NYBOT Announces New Cotton Rule Amendment

http://www.nybot.com/releases/pressRelease.asp?releaseID=886

 

 

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/dig060805.txt

 

NASD doles out nearly US$34 million in fines

U.S. regulator finds 15 broker-dealers giving preferential treatment

http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=29155&IdSection=8&cat=8

 

MFDA uncovers questionable transactions

Regulator says some automatic transactions may not comply with rules

http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=29152&IdSection=8&cat=8

 

Commission issues substantial penalty against former mutual fund salesman who committed fraud

http://www.bcsc.bc.ca/release.asp?id=2522

 

No change under new SEC stewardship, for now

June-8-2005 - Although no short-term change is likely, incoming SEC chairman Christopher Cox's pro-business bent may eventually help relax some of the rules that will govern hedge funds

http://www.marhedge.com/news/Cover.Hedge.asp?s=HedgeH-2005-06-08-12-47-34p1.htm

 

HealthSouth Settles SEC Charges for $100M

HealthSouth Will Pay $100 Million to Settle SEC Charges That It Violated Federal Securities Laws

http://abcnews.go.com/Business/wireStory?id=832668&CMP=OTC-RSSFeeds0312

 

Ex-Bank of America broker found not guilty

Former Bank of America broker Theodore C. Sihpol III was found not guilty Thursday of 29 counts, including a top count of grand larceny, at a trial related to after-hours mutual funds trading.

http://g.msn.com/0MN0RS9/3?http://www.msnbc.msn.com/id/8160041/&&CE=3032071

 

Ex-Bank of America Broker Is Acquitted on 29 Counts

http://www.nytimes.com/aponline/business/AP-Mutual-Funds-Trial.html

 

FSA CRITICISES PM COMMENT Jun 9 2005

THE FSA's reputation has received a serious blow with the Prime Minister and Chancellor criticising the financial regulator's recent performance.

An angry FSA chairman Callum McCarthy has written to Prime Minister Tony Blair challenging the Labour leaders' recent comments that the regulator is ``seen as hugely inhibiting of efficient business''.

http://icthewharf.icnetwork.co.uk/business/business/tm_objectid=15608027&method=full&siteid=71670&headline=fsa-criticises-pm-comment-name_page.html

 

Morgan Stanley To Pay $2.7 Million For IPO Lock-Up Violations - NASD Fines J.P. Morgan $150,000, Goldman Sachs $125,000 For Similar Violations

http://www.exchange-handbook.co.uk/news_story.cfm?id=53375

 

Managed Futures - Managed Funds

 

Rydex files first currency ETF based on euro

BOSTON (MarketWatch) -- Rydex Investments has filed an application with the Securities and Exchange Commission for the first currency exchange-traded fund that would provide exposure to the euro.

http://www.investors.com/breakingnews.asp?journalid=28117792&brk=1

 

Market Risk - Hedge Funds Profit from Equity Market Driven by Fundamentals

http://www.garp.com/risknews/newsfeed.asp?Category=6&MyFile=2005-06-09-10967.html

 

Julius Baer launches convertible fund

June-8-2005 - London-based Julius Baer Investments Ltd will launch the JB Convertible and High Yield Hedge Fund on July 1 with some $120 million

http://www.marhedge.com/news/Cover.Hedge.asp?s=HedgeH-2005-06-08-10-11-53p1.htm

 

John W. Henry & Company

The John W. Henry & Company, Inc. web site – www.jwh.com – has been updated with detailed estimated composite performance information on our various investment portfolios through the month of May 2005.

To view the May 2005 JWH Monthly Commentary, click here.

 

Hedge fund fees seen falling as investors wise up

LAUSANNE, Switzerland (Reuters) - Hedge fund fees will come under downward pressure as investors realise that a significant portion of returns is not based on skill, said panellists at an industry conference on Thursday.

http://www.reuters.co.uk/newsArticle.jhtml?type=personalFinanceNews&storyID=749973&section=finance&src=rss/uk/personalFinanceNews

 

Secretive GLG tops hedge fund charts

GLG Partners, the ultra-secretive hedge fund whose cult status makes its owners among Britain's biggest earners, has been declared London's most respected alternative investment house.

http://www.thisislondon.co.uk/news/business/articles/timid401206?source=This%20is%20Money

 

'Surge in hedge fund listings' as firms look to realise value

UP to 50 hedge fund firms will seek to list over the next five to ten years as successful managers look for ways to realise the value of their businesses, the world's largest listed hedge fund firm has predicted.

http://edinburghnews.scotsman.com/business.cfm?id=634242005

 

Firm makes concessions after hedge fund revolt

BKF Capital Group, a publicly traded investment firm locked in a battle with hedge funds looking to replace members of its board, has announced that it will remove its poison pill and make it easier to replace its board, among other changes.

http://www.iht.com/articles/2005/06/09/business/bkf.php

 

SEC Unlikely To Back Down Over Hedge Fund Regulation, by Leroy Baker for LawandTax-News.com 09 June 2005

The appointment of the more liberally-minded Christopher Cox to the position of Securities and Exchange Commission Chairman is unlikely to be the end of the road for hedge fund regulation, which was championed under William Donaldson's tenure, according to industry experts.

http://www.investorsoffshore.com/asp/story/storyinv.asp?storyname=20108

 

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

 

New exchange forecasts home prices

New York market may drop in second quarter, data shows

SAN FRANCISCO (MarketWatch) -- Homeowners and prospective buyers worried about surging prices have a new place to go to check the pulse of real estate markets.

http://www.marketwatch.com/news/story.asp?guid=%7B09718F1D-4FF1-401B-A895-6380F95A925B%7D&siteid=google

 

CEO of bankrupt jet fuel trader arrested

Arrest occurs hours before China Aviation Oil creditors approve plan to revive beleaguered company.

http://money.cnn.com/2005/06/08/news/international/cao_singapore.reut/

 

Wachovia Securities' Support Of Stock Market Game Program Expands Participation Nationwide

http://www.sia.com/press/2005_press_releases/04048159.html

 

Economic Risk - Cognitive Dissonance

What explains the mismatch between the data pointing to heightened inflationary concerns and bond market perceptions that have discounted inflationary worries over the last few weeks? In some ways, it’s an extension of the “conundrum” theme that Mr. Greenspan raised a few months ago.

http://www.garp.com/risknews/newsfeed.asp?Category=6&MyFile=2005-06-09-10971.html

 

Europe chocolate lobby hopes to stop child labor

http://news.reuters.com/newsArticle.jhtml;jsessionid=E1TF1JC5253MECRBAE0CFEY?type=reutersEdge&storyID=8741293

 

The Regulatory Cure Far Worse Than The Illness

Commentary by Jonathan Hoenig for FOX Fan Central

http://www.foxnews.com/story/0,2933,158942,00.html

 

Cargill To Build Biodiesel Plant at its Iowa Falls Facility

http://www.cargill.com/news/news_releases/050608_biodiesel.htm#TopOfPage

 

Morgan Stanley to settle in NASD IPO case

Investment bank Morgan Stanley will pay $2.7 million to settle allegations that it broke rules limiting the sale of stock after initial public offerings, brokerages regulator NASD said on Thursday.

http://news.yahoo.com/news?tmpl=story&u=/nm/20050609/bs_nm/financial_nasd_morgan_dc_3

 

Tall Men News

 

Sears.com to sell Casual Male wear

Move is part of Sears' efforts to boost apparel offerings

(AP) — Sears, Roebuck and Co., a retail unit of Sears Holdings Corp., said Wednesday that it agreed to sell men's big and tall apparel from Casual Male Retail Group Inc. on its Web site.

http://chicagobusiness.com/cgi-bin/news.pl?id=16748

 

**** Does this mean I can finally buy a tall man hammer?

 

John's Comments

 

David Setters to Leave FOW

 

David setters is leaving FOW after having been with them since 1983.  It has been a pleasure to know David through his role with FOW and I will be forever grateful to him for his use of his fluent German to help my wife, myself and some other travelers find our way to Buergenstock by train and ferry once we landed in Zurich, Switzerland last September.  Friends like David are good to have and I wish him well in what comes next in his professional life.  David can be reached at davidsetters@tiscali.co.uk.

 

*******

 

Reminder

 

September is Front Month today in Equity Futures

 

 

********

 

Reminder

 

I will be out of the office on Friday, but will publish a newsletter tomorrow.  I will be traveling to New York City on Wednesday and Thursday next week and Jon Matte of Defender Capital Management will again be guest editor.  If you have news for Jon to include in the newsletter for those days, you can email him at jonm@defendercapital.com.

 

********

 

 

Brent Crude Watch

 

IPE Brent Volume: 168,277

NYMEX Brent Crude Volume: 10,219

NYMEX Percent of Total Volume: 5.73%

 

********

 

Chicago Electronic Trading Scorecard for June 8, 2005

 

Percent Electronic

 

CBOT: 57.05%

CME: 70.64%

CME Eurodollars: 83.80%

CME Live Cattle: .87%

CME Currency Products: 60.83%

CBOT Soybeans: 2.85%

 

CBOT Options: 5.78%

CME Options: 5.30%

 

Volume 

 

OneChicago Volume: 1808

Eurex US Volume: 5521

Euronext.liffe Eurodollar Volume: 13,284

CBOE Futures Exchange Volume: 1424

 

Market Share

 

CBOT 100 oz. Gold Volume: 756

NYMEX 100 oz. Gold Volume: 28,682

CBOT Share: 2.57%

 

CBOT 5000 oz. Silver Volume: 155

NYMEX 5000 oz. Silver Volume: 15,286

CBOT Share: 1.00%

 

CBOT Mini Gold Volume: 539

CBOT Mini Silver Volume: 250

 

CME Emini Russell 1000 (100X) Volume: 2177

Eurex US Mini Russell 1000 (100X) Volume: 647

NYBOT Mini Russell 1000 (50X) Volume: 20,708

CFE Mini Russell 1000 (100X) Volume: 0

 

CME Emini Russell 2000 Volume: 114,734

Eurex US Mini Russell 2000 Volume: 3729

CFE Mini Russell 2000 Volume: 186

 

Notes: The CME set open interest records yesterday in Exchange, Exchange Options, Currency Products, Interest Rate Options, Currency Futures and Mexican Peso.  They set volume records in Globex Currency futures, Total Currency futures, GSCI pit volume, British Pound Globex and total futures volume and EuroFX total volume.

 

Liffe Eurodollar Over-Under

 

Liffe/Globex: 1.03%

Liffe/CME: .86%

 

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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