Lead Commentary
Survey Inconclusive
Thank you to all who replied to the survey yesterday. You can see the results by clicking on www.johnlothiannewsletter.com/cbotsurvey.htm and just hitting submit without selecting any of the choices. You will notice a large number of votes for NYMEX. I believe this was a technical error as about 200 of the votes occurred in a very short period of time. Also, the questions were slightly confusing as my email and the web page had two different questions on them. Other than that, it was smooth sailing.
Yesterday’s survey allowed voters to select as many choices as they wanted. Today we are going to try to narrow down the selections to just 3 choices. Here is a link to try the survey again: http://www.johnlothiannewsletter.com/cbotquestion.htm.
The results from yesterday’s survey, despite the technical problem, did not really clear the fog around this question. Eurex, Euronext.liffe and ARCA/NYSE were all statistic ties as choices. Thus, I am trying to narrow down the choices by allowing voters only 3 selections/votes in today’s survey. The survey is anonymous, but I can tell the IP address of where the votes are coming from, so I can detect vote rigging. So please just vote once. If you want to see how the vote is going later, just hit submit without selecting any choices.
Thank you for participating and for being readers of the newsletter. For those of you in the
~John J. Lothian
Lead Stories
CFTC Obtains Federal Court Freeze of Assets of
http://www.cftc.gov/opa/enf05/opa5091-05.htm
CFTC charges fund over fraud
By Jeremy Grant in
The
The Commodity Futures Trading Commission (CFTC) said it had entered a restraining order against Philadelphia Asset Management (PAAM) and Paul Eustace, a Canadian, freezing their assets.
http://news.ft.com/cms/s/5536e688-e904-11d9-87ea-00000e2511c8.html
**** Online FT subscription required.
Trading Technologies' Achieves NYMEX Certification and Prepares to Launch Connection on July 19
Trading Technologies International, Inc. today announced that the New York Mercantile Exchange has certified TT as an Independent Software Vendor to use the NYMEX Electronic Order Network API for trading on the NYMEX ClearPort® trading platform.
http://biz.yahoo.com/prnews/050629/cgw055.html?.v=10
**** All Clear to ClearPort!
Introduction of New Corporate Name [July 1,2005]
It is our great pleasure to announce that our organization is to rename TOKYO FINANCIAL EXCHANGE INC., replacing the current TOKYO INTERNATIONAL FINANCIAL FUTUERS EXCHANGE INC.
http://www.tfx.co.jp/en/newsfile/05/newconame_e20050701.html
http://www.tfx.co.jp/en/newsfile/pdf/newconame_e050701.pdf
***** Out with the TIFFE and in with the TFX
NYSE chief will refuse exchange shares
http://money.cnn.com/rssclick/2005/06/29/markets/thain_stock.reut/index.htm?section=money_latest
***** I like to stand on principal too, but I also like to eat. Probably not a consideration for a former Goldman Sachs partner though.
By HOWARD PACKOWITZ
Shares of Chicago Mercantile Exchange Holdings Inc. surged to finish above $300 a share for the first time, benefiting from a second day of speculation about a potential merger with the Chicago Board of Trade.
http://online.wsj.com/search#SB112008869406473504
**** Online WSJ subscription required.
Merc shares surge on takeover talk
The Chicago Mercantile Exchange was the place for investors Wednesday. Not its trading floors, that is, even though the scenes there are often entertaining, but the exchange's own stock.
http://www.suntimes.com/output/business/cst-fin-merc30.html
CFTC Sanctions
http://www.cftc.gov/opa/enf05/opa5093-05.htm
Federal Court Freezes Assets of Five
http://www.cftc.gov/opa/enf05/opa5092-05.htm
NYSE Media Statement Regarding
In view of the unusual market activity in Chicago Mercantile Exchange’s stock, the New York Stock Exchange has contacted the company and requested that the company issue a public statement indicating whether there are any corporate developments which may explain the unusual activity.
The company stated that its policy is not to comment on unusual market activity.
http://www.nyse.com/Frameset.html?displayPage=/press/2_2005.html
Love in the Pits? By Stephen D. Simpson, CFA
Rumors are swirling that the Chicago Mercantile Exchange (NYSE: CME - News) has approached the Chicago Board of Trade (CBOT) about a potential merger that would create an even more powerful futures and derivatives exchange. Both parties are playing it cool for now, even though CBOT has publicly acknowledged receiving unspecified "expressions of interest." Meanwhile, the Merc has tacked on almost $50 in stock value in the past two days, a 19% rise.
http://news.yahoo.com/news?tmpl=story&u=/fool/20050629/bs_fool_fool/112007552825
CME stock soars on CBOT takeover talk
Shares get further boost after analyst said stock could hit $344
(Reuters) — Chicago Mercantile Exchange Holdings Inc. has approached CBOT Holdings, parent of the No. 2 U.S. futures exchange, about a potential deal, according to a person familiar with the matter.
The CBOT said on Tuesday that it has received "unsolicited, nonbinding expressions of interest in a business combination" which it would consider as part of a broader review.
http://chicagobusiness.com/cgi-bin/news.pl?id=16966
SEC eliminates IPO quiet periods, but stands by the mutual fund directors rule
Donaldson criticized for rushing re-adoption of rule
The U.S. Securities and Exchange Commission unanimously agreed to eliminate initial public offering quiet periods today, but it battled acrimoniously over mutual fund governance independence requirements once again.
http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=29470&IdSection=8&cat=8
Rivals see logic in breaking with the past
By Jeremy Grant
To many who have observed
If there is one thing that the Chicago Mercantile Exchange has confirmed once and for all by approaching the Chicago Board of Trade about a possible merger, it is how hopelessly out of date that image is.
http://news.ft.com/cms/s/f821a65a-e902-11d9-87ea-00000e2511c8.html
**** Online FT subscription required.
By Lionel Barber and Andrei Postelnicu
Marshall Carter, the New York Stock Exchange's new chairman, carries the stamp of the
This warrior background might explain why Mr Carter's favourite word is "leadership" - and why he says he is unfussed about the flap over the terms of the NYSE's landmark merger with Archipelago, or Arca, its smaller electronic rival.
http://news.ft.com/cms/s/ec87f07e-e902-11d9-87ea-00000e2511c8.html
***** Ditto.
Regulators are drafting rules to rein in entertainment spending by brokerage firms to woo mutual funds' trading business.
http://online.wsj.com/article/0,,SB112009736404173769,00.html?mod=home_whats_news_us
**** Online WSJ subscription required.
Icap brokers deal with China
CITY wholesale broker Icap looks set to establish the first moneybroker joint venture in
http://www.thisismoney.co.uk/news/article.html?in_article_id=401844&in_page_id=2
Environmental Trading News
Greenhouse Hypocrisy
Politicians are doing less than they claim to fight global warming. New energy technology may be the only practical option.
http://www.msnbc.msn.com/id/8403490/site/newsweek/
SUSAN TOMPOR: Weather ripe for bidding
When I think about trading
And how about handing off a January deep freeze for winter weather in
But the Chicago Mercantile Exchange is doing something different. This month, the largest futures exchange in the
http://www.freep.com/money/business/tompor30e_20050630.htm
Green Trading Markets are Now Entering The Hockey Stick Phase of Market
Research and Markets has announced the addition of Greentrading Markets: How Environmental Financial Markets Work to their offering.
http://biz.yahoo.com/bw/050629/295592.html?.v=1
EPA faces fight on mercury policy
Exchange & ECN News
Larger Plantings & Stocks May Limit Corn Price Potential
Corn quickly retreated this week when the weather forecast for the Fourth of July weekend moderated
http://www.cbot.com/cbot/pub/cont_detail/0,3206,1027+29126,00.html
June USDA Stocks & Acreage Reports Set Soybean Tone
Heavy profit-taking pressured values early this week when the latest weather models moderated growing conditions for next week.
http://www.cbot.com/cbot/pub/cont_detail/0,3206,1027+29124,00.html
Approved Application for Rough Rice Regularity
Poinsett Rice & Grain, Inc. received approval for its
http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+29131,00.html
Position Limits in Treasury Futures During Last Ten Trading Days
http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+29138,00.html
Eight IPOs Join NYSE on June 28 and June 29, Raising $3.75 Billion in Proceeds
http://www.nyse.com/press/1120041348775.html
The Clearing Corporation and Exchange Systems Technology Announce Plan for integrated Clearing and Back Office System
http://www.clearingcorp.com/press/pressreleases/050629exchgsystech.html#P1_0
2004/05 Financial Year: ASX Year-End Statistics
http://www.exchange-handbook.co.uk/news_story.cfm?id=53718
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/dig062905.txt
TSX Group CEO urges regulators to be patient
Care should be taken to harmonize with
http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=29465&IdSection=15&cat=15
***** You have to like this guy!
OSC moves to protect small investors
Three proceedings launched
http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=29459&IdSection=8&cat=8
Costly anti-money laundering efforts in
http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=29452&IdSection=138&cat=138
Task force to review trans-Atlantic derivatives business
One step closer to seamless marketplace
http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=29450&IdSection=15&cat=15
SIA: SEC - Approved Rule Changes Will Benefit Investors And Issuers
http://www.sia.com/press/2005_press_releases/04276271.html
SEC enforcement chief returns to Wilmer Cutler
Wilmer Cutler Pickering Hale & Dorr is celebrating after securing the return of former partner and former Securities and Exchange Commission (SEC) director of enforcement Stephen Cutler.
http://www.thelawyer.com/cgi-bin/item.cgi?id=116017&d=122&h=24&f=46
Tejas fined $10,000 by the NASD
http://www.bizjournals.com/austin/stories/2005/06/27/daily27.html?from_rss=1
Bonuses for 100 FSA staff to halt the drift to City firms
The Financial Services Authority has made sweeping changes to the way it pays its 2,350 staff in an attempt to prevent them defecting to City firms. The FSA annual report reveals that retention bonuses are to be paid to 100 staff over three http://www.guardian.co.uk/business/story/0,3604,1517708,00.html
Right accuses Donaldson of 'disrespect for rule of law' over SEC trading reform
http://news.ft.com/cms/s/74d2640a-e903-11d9-87ea-00000e2511c8.html
CESR Submits Its Final Advice To The EU Commission, On Dissemination Of Financial Information And Other Implementing Measures Of The Transparency Directive
http://www.exchange-handbook.co.uk/news_story.cfm?id=53719
Speech By SEC Chairman: Securities Offering Reform: Opening Statement Before The SEC Open Meeting
http://www.exchange-handbook.co.uk/news_story.cfm?id=53717
Strife Aplenty at S.E.C. Chief's Farewell Session
http://www.nytimes.com/2005/06/30/business/30sec.html
Managed Futures - Managed Funds
Muirfield's Chalsty addresses MARHedge conference
June-29-2005 - Capital accumulation rather than double-digit absolute returns will become the norm among funds of funds as they continue to grow in size and compete in similar strategies, said Muirfield Capital Management's John Chalsty
http://www.marhedge.com/news/Cover.Hedge.asp?s=HedgeH-2005-06-29-15-56-54p1.htm
New twist in debate over active vs. passive investing
UBS's Investment Bank Chief Costas to Run Hedge Fund (Update6)
June 30 (Bloomberg) -- UBS AG, the world's biggest asset manager, named investment banking chief John Costas to run a new hedge fund unit, seeking to avoid defections to the loosely- regulated funds that are luring some of Wall Street's top traders.
http://quote.bloomberg.com/apps/news?pid=10000006&sid=aZKC3UzR_GDA
UBS takes hedge fund route
BANKING giant UBS has shaken up its board to create a new hedge fund trading division and merge its two huge wealth management divisions.
http://www.thisislondon.co.uk/news/business/articles/timid401849?source=This%20is%20Money
Is Morgan Stanley next?
Is the asset swap of Citigroup's asset management business for Legg Mason's brokerage a prelude to a Morgan Stanley sale of its own asset management activities?
http://news.yahoo.com/news?tmpl=story&u=/thedeal/20050630/bs_deal_thedeal/ismorganstanleynext
Eaton Vance Tax-Managed Buy-Write Opportunities Fund Raises $1.11 Billion in Initial Public Offering
http://www.eatonvance.com/alexandria/pressreleases/200506/4633pr.pdf
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
Protecting your good name from identity theft
What Would Spitzer Do?
According to today's Seattle Post-Intelligencer, developments are starting to accelerate in the story of the nation's ongoing wave of identity thefts. With Congress continuing its plodding pace toward regulating the financial institutions, retailers, http://news.yahoo.com/news?tmpl=story&u=/fool/20050629/bs_fool_fool/112007592227
**** I think I will start selling bracelets for $1 that say “What would Spitzer do?”
GL TRADE Launches GL TV, the Digital Display Solution for Bank Networks
GL TRADE, the international provider of electronic trading, settlement and clearing solutions, is launching a digital display solution for banks, designed to enliven and shape their customer relationships in branch networks.
http://biz.yahoo.com/bw/050630/305244.html?.v=1
John's Comments
From Euronext.liffe:
Euribor Futures Trade Until 3:00pm
Euronext.liffe's benchmark Three Month Euribor futures now trade until 3:00pm
opportunity to manage Euro interest rate risk throughout the
During the first three days of extended trading hours, an average of over 6k Euribor futures traded between noon and 3:00pm Chicago time, with a high of 9k contracts traded on Wednesday. Market quality was
high throughout the trading session, with bid/offer spreads of 0.5 basis points and institutional depth available in all white and red contract months.
The extended hours provide for timely risk management opportunities ahead of key events during the
to date bodes well for an active trading session tomorrow at the time of the FOMC announcement.
********
No statistics today, working from home.
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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