June 27, 2005
Lead Stories
Trading center fading
Pacific Exchange faces uncertain future as markets merge
A pair of proposed mergers has cast doubt on the fate of the Pacific Exchange -- the descendant of the stock market that opened in
In January, the exchange agreed to sell its options business to Archipelago Holdings, a
What place the Pacific Exchange will have in that larger deal is far from clear. Officials of all three organizations are close-mouthed on details.
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2005/06/25/BUGISDEM5E1.DTL&feed=rss.business
Man Group CEO Fink attacks TCI over Deutsche Boerse
http://www.iii.co.uk/news/?type=afxnews&articleid=5335086&action=article
Seifert to share his story with readers
"Locusts" beware. Werner Seifert, the former head of Deutsche Börse, kept a diary of his turbulent final months at the German exchange and plans to publish a book documenting his treatment at the hands of rebellious investors.
http://news.ft.com/cms/s/eb6593ce-e4e1-11d9-95f3-00000e2511c8.html
Computerworld Names CME to Annual List of Best Places to Work in Information Technology
http://www.cme.com/about/press/cn/05-88Computerworld13696.html
CME ranked 46th out of 100, and was the only exchange
CME ranked 9th in terms of career development
CME ranked 15th with respect to minority managers
CME ranked 24th with respect to total percentage of minority IT employees
CME ranked 44th with respect to training dollars spent per IT employee in 2004, and 84th with respect to training days offered in 2004
*****
Crackdown on money laundering 'being hindered'
http://www.financialexpress-bd.com/index3.asp?cnd=6/27/2005§ion_id=26&newsid=2913&spcl=no
CBOE Successfully Adds DIAMONDS Options To Hybrid Trading System
http://www.cboe.com/AboutCBOE/ShowDocument.aspx?DIR=ACNews&FILE=20050624.doc
CBOE INTRODUCES NEW FAMILY OF SECTOR INDEXES, "POWERPACKS;" FUTURES AND OPTIONS TO LAUNCH FRIDAY, JULY 8
http://www.cboe.com/AboutCBOE/ShowDocument.aspx?DIR=ACNews&FILE=20050623.doc
http://www.exchange-handbook.co.uk/news_story.cfm?id=53645
Exchange will take on Wall Street
Electronic network will compete with NYSE, Nasdaq plans
The founder of Tradebot Systems Inc. is launching an electronic stock exchange in a bid to inject competition into the rapidly consolidating industry. BATS Trading Inc. -- BATS is an acronym for "better alternative trading system" -- is in the development stage, but Tradebot CEO Dave Cummings said he wants to launch the electronic communications network early next year.
http://msnbc.msn.com/id/8370993/
The NYSE Salutes Financial Journalist Louis Rukeyser
Friends and family of Louis Rukeyser ring The Closing BellSM on June 27, 2005.
http://www.nyse.com/events/1119523106724.html
Innovator resigns from exchange board
Michel Marks, who launched petroleum futures when the OPEC cartel had virtually complete control of oil prices, has resigned from the board of the New York Mercantile Exchange, the exchange said Friday. Marks resigned as Nymex mulls several opportunities amid record trade volumes and all-time-high oil futures prices near $60 per barrel.
http://www.chron.com/cs/CDA/rssstory.mpl/business/3240365
3
In the complex world of commodity options,
Citi Gets a Legg Up
A $3.7 billion asset swap with Legg Mason may be the first sign that banks are turning their backs on the mutual-funds business
http://www.businessweek.com/bwdaily/dnflash/jun2005/nf20050624_4773_db016.htm
Environmental Trading News
http://www.journalstar.com/articles/2005/06/27/business/doc42bc788738c34906117023.txt
Trading reaches 5,000,000 tonnes
Since the launch of CFI futures contracts on 22 April 2005, ECX/IPE has traded a total of 5,041,000 tonnes of CO2 allowances under the EU Emissions Trading Scheme
http://www.europeanclimateexchange.com/pages/page259.php
Environmental writer Alister Doyle takes a look at what the United Nations'
Carmakers under pressure to speed up CO2 cuts
The average new car in the EU-15 was releasing almost 12% less CO2 in 2003 than it did in 1995, according to a Commission report. But pressure is growing, especially from
http://www.euractiv.com/Article?tcmuri=tcm:29-141516-16&type=News
Exchange & ECN News
Everyone is talking about the price of crude oil and the price of gasoline. So what's the price of a gallon of ethanol?
Now there's a way to track ethanol price movement. Ethanol futures are trading side by side with corn futures on the Chicago Board of Trade.
Trading volume is small compared with corn and soybeans, but market watchers say they expect it to grow.
http://www.kansas.com/mld/kansas/business/11986419.htm
***** News moves slow to
CBOT Independence Day Holiday Trading Schedule
http://www.cbot.com/cbot/pub/cont_detail/0,3206,1036+29023,00.html
CBOT Dow Jones Strike Price Notice, June 27, 2005
http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+29078,00.html
CBOT Strike Price Notice, June 27, 2005
http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+29077,00.html
CME Announces Independence Day
http://www.cme.com/about/press/cn/06-86IndependenceDayHours13685.html
Citigroup To Serve as Bin 3 PMM on ISE
http://phx.corporate-ir.net/phoenix.zhtml?c=176358&p=irol-newsArticle&ID=723939&highlight=
Exchange Sets Record for NYMEX Division Seat
http://www.nymex.com/jsp/news/press_releas.jsp?id=pr20050624b
NYMEX Board Member Resigns
http://www.nymex.com/jsp/news/press_releas.jsp?id=pr20050624a
NYSE Seat Sells for $2,500,000
http://www.nyse.com/press/1119609310220.html
NYSE Seat Sells for $2,500,000
http://www.nyse.com/press/1119609309250.html
NYSE Seat Sells for $2,500,000
http://www.nyse.com/press/1119609308640.html\
**** This is the second trio of NYSE seats that have sold in a day for $2.5 million.
Program Trading Averaged 61.5 Percent of NYSE Volume during June 13-17
http://www.nyse.com/press/1119523107304.html
Two New Listings Join the NYSE in the Week Ended June 24
http://www.nyse.com/press/1119609310324.html
July Fourth
http://www.nybot.com/releases/pressRelease.asp?releaseID=889
CBOE and CFE Trading Schedule for Independence Day
http://www.cboe.com/AboutCBOE/ShowDocument.aspx?DIR=ACNews&FILE=20050624b.doc
Visit the new CBOE Event Calendar
http://www.cboe.com/AboutCBOE/eventcalendar.aspx
Nexa Technologies' Tick Data division, provider of value-added historical intraday financial data, and Toronto Stock Exchange today announced the availability of ready-to-use trade and quote data for equities traded on TSX.
http://biz.yahoo.com/cnw/050627/tsx_nexa_tech_databas.html?.v=1
New Equity Option Classes
http://www.m-x.ca/f_comm_press_en/012-05_en.pdf
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/dig062405.txt
Approves Amendments Relating to Annual Compliance Meetings; Effective Date: July 25, 2005
http://www.nasd.com/web/idcplg?IdcService=SS_GET_PAGE&nodeId=5&ssSourceNodeId=5
Task force to examine content of securities regulation
IDA taps eight senior industry players to formulate policy for the 21st century
The structure of Canadian securities regulation may be a well-documented mess, but the Investment Dealers Association of Canada is striking a task force to undertake a comprehensive study of what it suspects may be a bigger problem — its content.
http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=29368&IdSection=5&cat=5
FSA launches £100,000 fund to help voluntary and community sector increase financial awareness
http://www.fsa.gov.uk/pages/Library/Communication/PR/2005/071.shtml
Tenet Capital charged with fraud
June-24-2005 - The SEC said today it had filed an emergency enforcement action against Tenet Capital Partners Convertible Opportunities Fund LP, its investment advisor and its principal...Read More
http://www.marhedge.com/news/Cover.Hedge.asp?s=HedgeH-2005-06-24-13-26-49p1.htm
Portus co-founder's 'hand in cookie jar,' says auditor
June-24-2005 - Boaz Manor allegedly tried to transfer some US$35 million in investor assets out of a Portus-related offshore company this month for his own personal use...Read More
http://www.marhedge.com/news/Cover.Hedge.asp?s=HedgeH-2005-06-24-10-23-53p1.htm
Citigroup May Get $45 Million Fine From FSA, Observer Reports
U.K. June 26 (Bloomberg) -- Citigroup Inc., the world's biggest bank, may be fined as much as $45 million by U.K. financial markets regulator, the Financial Services Authority, for lacking internal controls, the Observer reported, citing unnamed sources.
http://www.bloomberg.com/apps/news?pid=10000102&sid=aJFeD8PZr7l8
Knight Capital unit may face SEC charges
Knight Capital Group Inc. , one of the largest traders of Nasdaq-listed shares, on Monday said its asset management unit faces possible civil charges from the U.S. Securities and Exchange Commission over possible improper trading activity.
http://news.yahoo.com/news?tmpl=story&u=/nm/20050627/bs_nm/financial_knight_sec_dc_1
Crackdown on money laundering 'being hindered'
http://www.financialexpress-bd.com/index3.asp?cnd=6/27/2005§ion_id=26&newsid=2913&spcl=no
Managed Futures - Managed Funds
Legg Mason gets leg up in hedge fund business
June-24-2005 - Baltimore-based Legg Mason, a mutual fund concern, is growing its assets and getting into the hedge fund business in a big way. The firm has agreed to acquire fund-of-funds behemoth Permal Group for an aggregate price of $1.4 billion. In a separate deal, it is also buying Citigroup's asset management business for $3.7 billion. The two transactions are expected to be finalized by year-end.
http://www.marhedge.com/news/Cover.Hedge.asp?s=HedgeH-2005-06-24-13-15-19p1.htm
AIMA Comments on Hedge Fund-Related Discussion Paper from Financial Services Authority (
http://www.aima.org/uploads/AIMAFSADPRiskRegJune05.pdf
Market Risk - New Exotic Financial Instruments, Closed-end Funds, Hedge Funds and Structured Products
http://www.garp.com/risknews/newsfeed.asp?Category=6&MyFile=2005-06-27-11057.html
RWH Financial's fund of trading advisor funds
June-24-2005 - Chicago-based RWH Financial is currently looking to add several new managers to its multi-advisor product, which it launched last October
http://www.marhedge.com/news/Cover.MAR.asp?s=MARH-2005-06-23-11-10-03p1.htm
Daiwa to boost sales of commodity futures index fund
June-24-2005 - Daiwa Asset Management has raised almost ¥9 billion ($85 million) into its Daiwa Commodity Index Fund, according to the Nikkei Report. The fund was launched in December 2004 to invest in the RICI Portfolio, a dollar-denominated commodity futures fund that tracks the Rogers International Commodity Index (MAR/Week No 240 Nov-4-2004). Strong commodity prices and a 13% return in the fund since December have encouraged Daiwa AM to further boost its sales efforts. Daiwa Securities, the fund's distributor, is targeting retail investors willing to take US dollar risk. Minimum investment is ¥5 million ($47,500).
The Rogers International Commodity Index, which was developed by
http://www.marhedge.com/news/Cover.MAR.asp?s=MARH-2005-06-23-11-08-50p1.htm
Hedge Fund Managers Come Top in Investment Industry Pay Survey
June 27 (Bloomberg) -- Hedge fund managers earn an average 58 percent more than their peers at mutual and pension funds, according to a survey of the
http://www.bloomberg.com/apps/news?pid=10000100&sid=aAt1cQYgD4_w
Judge a hedge fund by its chilli
J OHANNESBURG (Mineweb.com) -- Hedge funds may potentially be the most dangerous of legal creatures frequenting the global investment scene, according to the
http://www.mineweb.net/columns/curve_ball/455214.htm
The Energy Hedge Fund Center (EHFC) announces that it has re-launched its web site, www.energyhedgefunds.com, with an all new look and feel and content. The popularity of the site that was originally launched late last year, among hedge funds, fund of funds, investors, analysts, and energy companies, has continued to grow dramatically. [PRWEB Jun 25, 2005]
http://www.prweb.com/releases/2005/6/prwebxml254868.php
Harch Fires Back At Hedge Fund Over CLO Lawsuit
Harch Capital Management has taken a swipe at Conn.-based hedge fund Old Hill Partners , which is behind a lawsuit alleging that Harch did not honor the terms of a collateral management agreement on a $425 million collateralized loan obligation (CLO). The lawsuit charges Harch with wrongfully taking a $7.6 million incentive fee and for breach of fiduciary duty on a Harch-sponsored hedge fund.
http://www.loanmarketweek.com/default.asp?page=1&SID=520961&ISS=17246
RAB suffers as battered hedge funds enter 'year of the wife'
RAB Capital, the hedge fund business that sold £25m worth of shares to a group of wealthy individuals last week, has seen the performance of its funds plummet in recent months. The group, founded by Michael Alen-Buckley and Philip Richards, sold 14 per cent to investors including the steel magnate Lakshmi Mittal and the Solvay family, the Belgian chemical tycoons. The sale came amid wide- spread debate about the future of the $1 trillion (£550bn) industry, as City regulator the Financial Services Authority announced it was stepping up its supervision of the sector. This followed a review that was first revealed in The Independent on Sunday last month.
http://news.independent.co.uk/business/news/story.jsp?story=649625
FSA Launches Two Hedge Fund Discussion Papers, by Robin Pilgrim, LawAndTax-News.com,
The
http://www.investorsoffshore.com/asp/story/storyinv.asp?storyname=20275
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
Merrill Lynch nabs 23 derivatives marketers from JP Morgan
June 23 - Merrill Lynch’s raid on JP Morgan Chase’s derivatives marketing unit has resulted in 23 derivatives marketers joining the
http://www.risknews.net/public/showPage.html?page=284848
Morgan in Talks to Bring Back Ex-President
John J. Mack, the former president of Morgan Stanley who left after a power struggle in 2001, is locked in discussions with the board over his return as chief executive.
Morgan Stanley May Let Departed Executives Return (Update1)
June 27 (Bloomberg) -- Morgan Stanley's board, in a decision that may make it easier for John Mack to become chief executive officer, may let former executives such as Vikram Pandit and Joseph Perella return to help revive the world's biggest securities firm.
http://www.bloomberg.com/apps/news?pid=10000087&sid=aLr6NrDfa0cg&refer=top_world_news
Thomson Financial and Instinet Announce Availability of Instinet Algorithms Via the AutEx Order Routing Network
Thomson Financial, an operating unit of The Thomson Corporation and leading provider of information and technology solutions to the worldwide financial community, today announced that it will make Instinet's Algorithmic Trading Strategies accessible via the Thomson AutEx Order Routing global network.
http://biz.yahoo.com/prnews/050627/nym009.html?.v=11
TradeStation Group's Founders and President Win Ernst & Young
TradeStation Group, Inc. announced today that its co-founders and Co-CEOs, William and Ralph Cruz, and its President, Salomon Sredni, have been named the winner in the Financial category of the Ernst & Young Entrepreneur of the Year® Florida Award program.
http://biz.yahoo.com/prnews/050627/flm001.html?.v=15
Other Voices
Erivativesreview.com
In the new issue of erivativesreview out today, we look at how we now live in A Derivatives World, the editorial delves into the often murky world of exchange boards and we have news analysis on the CBOT's shareholder vote, the CIS purchase by Refco and much much more!
Don't forget, our ISE sponsored party to celebrate the ISE's one billionth trade will take place next Wednesday 29th June at the Financial Bookshop, 90 Bishopsgate London EC2 from 1800-2000, all are welcome - you can even RSVP on fwbookshop@erivatives-fwb.com if you want to warn us in advance of your participation!
Hope to see you in
Click here to go straight to the magazine:
http://www.erivativesreview.com
Good reading
Patrick L Young
Editor
John's Comments
Oops
I was supposed to tell you about a webinar at Eurex US and their new FX futures, but it was at 11 AM this morning. Check the www.eurexus.com web site for an archived version of the event in the coming days.
Here were the details:
Topic: Introduction to FX Futures on Eurex
Date: Monday, June 27th
Time: 11:00am,
Presenter: Satish Nandapurkar, CEO of Eurex
Register: http://www.eurexus.com/education/webinars.html
Join us to learn how the September launch of FX futures on Eurex
For more information about trading at Eurex US, please contact us directly at info.us@eurexUS.com or (312) 544-1100. We look forward to seeing you online!
********
Brent Crude Watch
IPE Brent Volume: 1357
NYMEX Brent Crude Volume: 83,689
NYMEX Percent of Total Volume: 1.60%
********
Percent Electronic
CBOT: 56.08%
CME: 78.16%
CME Eurodollars: 85.66%
CME Live Cattle: .57%
CME Currency Products: 87.36%
CBOT Soybeans: 5.11%
CBOT Options: 4.78%
CME Options: 4.67%
Volume
OneChicago Volume: 37,976
Eurex
Euronext.liffe Eurodollar Volume: 11,735
CBOE Futures Exchange Volume: 399
Market Share
CBOT 100 oz. Gold Volume: 1718
NYMEX 100 oz. Gold Volume: 56,639
CBOT Share: 2.94%
CBOT 5000 oz. Silver Volume: 123
NYMEX 5000 oz. Silver Volume: 37,018
CBOT Share: .33%
CBOT Mini Gold Volume: 952
CBOT Mini Silver Volume: 557
CME Emini Russell 1000 (100X) Volume: 3784
Eurex
NYBOT Mini Russell 1000 (50X) Volume: 1426
CFE Mini Russell 1000 (100X) Volume: 0
CME Emini Russell 2000 Volume: 121,932
Eurex
CFE Mini Russell 2000 Volume: 0
Notes:
EURIBOR late opening - 27 June 2005
Trading hours for the EURIBOR futures contract are being extended beginning 27 June 2005 by three hours. Market participants will now be able to trade the benchmark euro futures contract from the open in Europe to the close in
http://www.euronext.com/file/view/0,4245,1626_53424_568212868,00.pdf
Liffe Eurodollar Over-Under
Liffe/Globex: .79%
Liffe/CME: .67%
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.
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