July 7, 2005

 

Lead Stories

 

Attacks kill 33 in London, Blair breaks off summit

LONDON (Reuters) - Four blasts ripped through London during rush hour on Thursday morning, killing at least 33 people and disrupting a summit of Group of Eight leaders in Scotland in attacks Prime Minister Tony Blair branded "barbaric."

http://news.reuters.com/newsArticle.jhtml;jsessionid=PAMOFPMZDLM50CRBAEZSFEY?type=topNews&storyID=9003511

 

London bomb toll: 33 dead

London was on high alert after an al Qaeda-linked group claimed responsibility for a series of co-ordinated terrorist attacks timed to coincide with the G8 summit. Four explosions on the British capital’s transport system killed at least 33 people and left scores with “terrible injuries”. The blasts, which drew parallels with the attacks on New York and Madrid, were described by Tony Blair and other G8 leaders as “barbaric”. But Mr Blair, who returned to London from Gleneagles, insisted the summit would continue as planned.

http://news.ft.com/cms/s/811a3330-eec3-11d9-8b10-00000e2511c8.html

 

FIA Updates on London Markets

http://www.futuresindustry.org/londonma-2572.asp

 

NYMEX Holdings, Inc., to Distribute Special Dividend to Shareholders 

http://www.nymex.com/jsp/news/press_releas.jsp?id=pr20050706a

 

NYMEX Reaches Monthly, Daily Volume Records in June

http://www.nymex.com/jsp/news/press_releas.jsp?id=pr20050706b

 

London Stock Exchange Stays Open After Explosions (Update6)

July 7 (Bloomberg) -- London Stock Exchange Plc, which operates the U.K. market, said the exchange remains open and it hasn't been affected by a series of terrorist blasts in the capital and its financial district. Most banks reported business as usual.

http://www.bloomberg.com/apps/news?pid=10000085&sid=aiPtKRg3.Je4

 

LSE suspends market maker obligations

LONDON (SHARECAST) - The London Stock Exchange has declared a ‘fast market’ after this morning’s bomb blasts across the underground network prompted a huge surge in trading volumes.

http://www.sharecast.com/cgi-bin/sharecast/story.cgi?story_id=507138

 

London blasts unlikely to spark fund crisis

Hedge funds which trade stock markets are likely to lose money on Thursday after a series of explosions hit London’s transport network and pushed equity prices down, hedge fund sources said.

http://g.msn.com/0MN0RS9/3?http://www.msnbc.msn.com/id/8496932/&&CE=3032071

 

LSE to close at regular time; NYSE, Nasdaq systems OK

NEW YORK (MarketWatch) -- The London Stock Exchange said Thursday it planned to close at its regular time despite several bombings around London. The two major U.S. equity markets confirmed they were operating normally.

http://www.marketwatch.com/enf/rss.asp?guid=%7B273F178B-67BA-4A9A-B1AB-59E43649FEA4%7D&dist=rss&siteid=mktw

 

Euronext.liffe Market Status Update - Thu 7 Jul 2005, 17:12:35 BST

http://www.exchange-handbook.co.uk/news_story.cfm?id=53881

 

OMX Group Update Following Terrorist Attack In London

http://www.exchange-handbook.co.uk/news_story.cfm?id=53880

 

LME Update

The LME is still within a police exclusion zone and as such is not accessible, although there are indications that this may not be for too much longer. As a result, the Exchange will now review the situation on Friday morning and take a decision whether to open the Ring, or to continue trading with LME Select and the telephone market as it has done today. The Exchange is confident, however, that it will be open for business on Friday either at the LME or at its disaster recovery site.  We have remained in contact throughout the day with the FSA, our data vendors, service suppliers and the LCH.

It should be noted that the Exchange has continued to operate an orderly and transparent market in challenging circumstances, and has successfully established and communicated prices for all contracts traded on the LME.

www.lme.com

 

LCH evacuated, switches to alternative site

LONDON, July 7 (Reuters) - The London Clearing House, LCH.Clearnet, has been evacuated and operations have resumed at an alternative site after a series of explosions on the London transport network, trade sources said on Thursday.  Metals traders said a message from the LCH appeared on trading screens saying the LCH building had been evacuated.

LCH clears stock markets, commodities and energy trades.

http://www.alertnet.org/thenews/newsdesk/L07539747.htm

 

Financial services reaction

The Association for Payment Clearing Services said there had been no problems and that banking services were operating normally. However, in central London, branch services were severely disrupted with many banks closed throughout the day.

http://news.yahoo.com/news?tmpl=story&u=/ft/20050707/bs_ft/fto070720051050172308

 

Trading Technologies Launches Partner Program

Trading Technologies International, Inc. today announced the launch of the TT Partner Program, which facilitates relationships with third-party developers that integrate TT's technology with their products.

http://biz.yahoo.com/prnews/050706/cgw049.html?.v=14

 

**** Recused no more.

 

OneChicago To List 11 New Contracts July 8

http://www.onechicago.com/060000_press_news/press_news_2005/07062005.html

 

Is drought a taste of the future?

Chicago's driest June on record is leaving everybody from farmers to city gardeners begging for rain.

http://www.chicagotribune.com/news/local/chi-0507070195jul07,1,3882459.story?coll=chi-news-hed

 

CBOT Reparat Sonitem

 

CME executives selling stock

By Julie Jargon

Officers of the Chicago Mercantile Exchange are cashing out of their shares while the going’s good.

CME President and COO Phupinder Gill sold 1,500 Merc shares worth more than $435,000 yesterday while managing directors Richard Redding, Kimberly Taylor and Eileen Keeve each sold shares valued at more than $200,000, according to Securities and Exchange Commission filings.

http://chicagobusiness.com/cgi-bin/news.pl?id=17023

 

CBOT presses ahead with IPO despite offers

All Financial Times News The Chicago Board of Trade is still pressing ahead with plans for an initial public offering more than a week after three "strategic buyers" made offers for the 158-year old exchange, people familiar with the matter said on Wednesday.

http://news.moneycentral.msn.com/provider/providerarticle.asp?feed=FT&Date=20050707&ID=4945323

 

Environmental Trading News

 

Climate Exchange: Buying, Selling Rights to Pollute

Morning Edition, July 6, 2005 · More than 100 American companies have joined together to reduce greenhouse gases. The venture is called the Chicago Climate Exchange. Members that cut pollution quicker sell their right to pollute to those who can't cut back as quickly.

http://www.npr.org/templates/story/story.php?storyId=4731153

 

Exchange & ECN News

 

Eurex to extend trading hours

By Jeremy Grant in Chicago

Eurex, the derivatives arm of Deutsche Borse and the SWX Swiss stock exchange, is to extend trading hours for its euro-denominated products by two hours from November 21.

http://news.ft.com/cms/s/070c9c3e-ee84-11d9-98e5-00000e2511c8.html

 

Nasdaq and FTSE link up to launch indexes

NEW YORK (Reuters) - The Nasdaq Stock Market Inc. <NDAQ.O> on Thursday launched four new indexes in collaboration with London-based stock index provider FTSE Group.

http://www.washingtonpost.com/wp-dyn/content/article/2005/07/07/AR2005070700314.html

 

CBOT Strike Price Notice, July 5, 2005

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+29229,00.html

 

Explosion at The Andersons' Edwin Facility

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+29230,00.html

 

Margin Requirements

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+29236,00.html

 

Moore Wheat & Value Line Reports

The 2005 Moore Research Wheat & Value Line reports are now available.

http://www.kcbt.com/news_2.asp?id=295&home=1

 

Floor Observation by Compliance Department Staff

http://www.nymex.com/jsp/shareholder/notice_to_member.jsp?id=ntm267&archive=2005

 

NYSE Seat Sells for $2,410,000

http://www.nyse.com/press/1120646542595.html

 

Chicago Stock Exchange gets new president

Ellen Neely will oversee implementation of new trading model approved in June

http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=29560&IdSection=9&cat=9

 

MX Activity Indicators on the rise for the first half of 2005

http://www.m-x.ca/f_comm_press_en/013-05_en.pdf

 

Toronto Stock Exchange Stats for the Month of June 2005

http://www.tse.com/en/mediaNews/newsreleases/7-6-2005_TSX-MonthlyStatsJune2005.html

 

The Philadelphia Stock Exchange Announces June Volume

http://www.phlx.com/news/pr2005/05pr070605.htm

 

Record Trading Day On ASX

http://www.exchange-handbook.co.uk/news_story.cfm?id=53865

 

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/dig070605.txt

 

Unexpected Close of Securities Markets, Executive Summary

This Notice provides guidelines to members regarding the applicability of Exchange Act Rules 15c3-1 and 15c3-3, NASD Rule2 520, and Federal Reserve Board Regulation T in the event the securities markets unexpectedly close. The Notice explains the circumstances under which the day of the unexpected close is to be considered a "regular business day" and the circumstances under which it should be considered a "non-business day."

http://www.nasd.com/web/idcplg?IdcService=SS_GET_PAGE&ssDocName=NASDW_014666&ssSourceNodeId=5

 

NASD Fines Hornor, Townsend & Kent, Inc. $325,000 For Improper Sales Contests, Email and Supervision Violations

http://www.nasd.com/web/idcplg?IdcService=SS_GET_PAGE&ssDocName=NASDW_014658&ssSourceNodeId=5

 

DAVID KORNBLAU TO LEAVE THE COMMISSION

The  Commission announced today that David L. Kornblau, Chief Litigation Counsel  of  the Division of Enforcement, will leave the  Commission  in August.  He will become Head of Regulatory Affairs for Merrill Lynch  in New  York in September.  Kornblau joined the enforcement division  as  a trial  attorney in 1995 and has served as chief litigation counsel since 2000.   At  Merrill  Lynch,  he  will  oversee  the  company's  response to  inquiries  by securities regulators and law enforcement  authorities worldwide.

http://www.sec.gov/news/press/2005-100.htm

 

SEC’s chief litigation counsel heads for the exit

David Kornblau, bound for Merrill Lynch in New York, is one of several recent high-profile departures from the commission

http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=29561&IdSection=9&cat=9

 

DOUGLAS  MURPHY AND DAVID KAY RECEIVE PRISON SENTENCES FOR VIOLATING  FOREIGN CORRUPT PRACTICES ACT

On  June  29, 2005, the Honorable David H. Hittner, U.S. District  Court Judge  for the Southern District of Texas, sentenced Douglas Murphy  and David  Kay,  two former officers of American Rice, Inc., to  prison  for violating  the  Foreign Corrupt Practices Act.  Murphy,  a  resident  of Texas,  was sentenced to 63 months in prison followed by three years  of supervised release.  Kay, also a resident of Texas, was sentenced to  37 months  in  prison  followed by two years of  supervised  release.   The defendants were released on bond pending appeal.

http://www.sec.gov/news/digest/dig070605.txt

 

OSC reports reduced surplus for fiscal 2005

Rebate of fees to market participants largely responsible

http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=29567&IdSection=8&cat=8

 

OSC extends temporary orders against Norshield and Olympus

Hearing adjourned until October

http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=29564&IdSection=8&cat=8

 

OSC approves settlement with unregistered trader

Hew ignored warning from regulator

http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=29562&IdSection=8&cat=8

 

Responsibilities of dealers engaging third party service providers clarified

MFDA says dealers must "satisfy themselves that the services will meet all applicable regulatory expectations"

http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=29559&IdSection=8&cat=8

 

'Get rich quick' scheme operator made bankrupt

http://www.fsa.gov.uk/pages/Library/Communication/PR/2005/077.shtml

 

New SEC rules to limit short-term debt Concern mounts on growing credit risks

The Securities and Exchange Commission yesterday imposed new restrictions on mutual and provident funds investing in short-term debt. The new rules reflect regulator concerns over possible growing credit risk in the money market, particularly as short-term debt has been mostly unregulated to date.

http://www.bangkokpost.com/Business/07Jul2005_biz67.php

 

Managed Futures - Managed Funds

 

S&P/TSX composite poised to overtake Dow

Demand for energy may not proove sustainable, says NBF

http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=29566&IdSection=15&cat=15

 

Rapid hedge fund growth creates concern

But S&P report says improved risk management and due diligence should lessen systemic risk

http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=29563&IdSection=1&cat=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

 

Industry Risk - China to Bail Out Brokers in Third Quarter

China will bail out several brokerages in the third quarter, according to a central bank official in China.

China will bail out several brokerages in the third quarter, according to a central bank official in China on Wednesday.  The funds will help specific brokerages with insufficient capital, according to Liu Shiyu, assistant governor of the People's Bank of China.

http://www.garp.com/risknews/newsfeed.asp?Category=6&MyFile=2005-07-07-11113.html

 

DTCC Board of Directors Elect Larry E. Thompson General Counsel

The Depository Trust & Clearing Corporation today announced the election by its Board of Directors of Larry E. Thompson as general counsel for DTCC, effective immediately.

http://biz.yahoo.com/bw/050706/65751.html?.v=1

 

Larry Haag Joins Cantor Fitzgerald's Debt Capital Markets Group as Managing Director, Head of Corporate Bond Sales

Cantor Fitzgerald, L.P., a leading global financial services provider to the institutional equity and fixed income markets, today announced that Larry Haag has joined Cantor Fitzgerald's Debt Capital Markets Group as Managing Director and Head of Corporate Bond Sales.

http://biz.yahoo.com/bw/050707/75350.html?.v=1

 

Schwab options rise on HSBC buyout rumor

Trading activity in Charles Schwab Corp.'s call options moved sharply higher Wednesday amid talk that the brokerage may be bought

http://biz.yahoo.com/bizj/050706/1129410.html?.v=1

 

OCC Issues Guidance On Web Spoofing

When a bank gets "phished" or "pharmed," what's the next step?

http://www.banktech.com/showArticle.jhtml?articleID=165700200

 

The Goldman Sachs Foundation Announces $6 Million in Grants to Education Programs

The Goldman Sachs Foundation today announced $6 million in grants to outstanding educational organizations to support innovative youth development, business education, and teacher development programs

http://biz.yahoo.com/bw/050707/75139.html?.v=1

 

GHCO Announces Customer Connectivity to IPE

Chicago – July 5, 2005, Goldenberg, Hehmeyer & Co. (GHCO) is pleased to announce connectivity to the International Petroleum Exchange (IPE). GHCO has become a General Participant Member. Customers that trade with GHCO on a Trading Technologies front end will be able trade on IPE beginning in mid-to-late July 2005.  Co-Director of Customer Trading, John DeMartino, said about the connection, “The energy markets are quickly becoming a preferred market by the professional trader. High quality service to electronic trading groups and individuals is one of our missions. Therefore, adding IPE to the markets we offer is a must.”

http://www.strategicsinc.com/content/press/GHCO/2005/07.05.05_GHCOIPEConnection.doc

 

Japan online brokers face pricing dilemma

Japanese online brokers face a stark choice -- join sector leader E*Trade Securities (8701.Q) in a price war that could hurt profits, or risk losing market share.

http://news.yahoo.com/news?tmpl=story&u=/nm/20050707/tc_nm/financial_japan_online_dc_3

 

Events – Chicago

 

It’s Almost Too Late To Sign Up!!

 

Due to popular demand, Bell Curve Trading is returning to the CME to present their full-day seminar.

 

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

Who:    All are invited

 

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. 

 

*Kindly call either Robin Gemeinhardt at 312-930-4527 or Linda Goldsmith at 454-8978 for booking details and to reserve your space today.

 

Payment is due on day of session.  Checks only, please, made payable to: Bell Curve Trading LLC.

 

John's Comments

 

London Special Report

 

Thank you to Patrick Young for this morning’s update on the situation in London.  I hope the Special Report was useful.  If you want to show your appreciation to Patrick for his report, visit his bookstore at http://www.thefinancialbookshop.com or in person and buy a book.

 

*******

 

Tomorrow

 

I will be out of the office tomorrow attending a funeral for my wife’s uncle, but will try to get a newsletter out early in the morning.  No guarantees, not held, best effort only.

 

*******

 

CBOT Open Letter Follow Up

 

I will have some Other Voices comments from some readers in tomorrow’s or Monday’s newsletter.  Because of today’s events, I am putting off publishing them for a day or so.   Normally I only accept comments with the writer identified, but these will be anonymous.  

 

********

 

Wall Street Journal Futures Prices

 

The Wall Street Journal has pulled most futures prices from its print editions in a reworking of its financial tables.  Let me see, we have more interest in commodities than ever in history, with thousands of investors putting money in commodity index funds, hedge funds and commodity pools, and the Wall Street Journal decides now is the time to stop publishing commodity price data in its paper edition.   Hmmm.  I don’t get it.

 

I have already had one client call me up and say he was going to cancel his subscription the Wall Street Journal because the commodity prices disappeared.  I would expect the WSJ will see more of that.

 

*********

 

Brent Crude Watch

 

IPE Brent Volume: 171m119

NYMEX Brent Crude Volume: 5867

NYMEX Percent of Total Volume: 3.31%

 

********

 

Chicago Electronic Trading Scorecard for July 6, 2005

 

Percent Electronic

 

CBOT: 57.76%

CME: 72.27%

CME Eurodollars: 79.54%

CME Live Cattle: 2.27%

CME Currency Products: 83.34%

CBOT Soybeans: 3.65%

 

CBOT Options: 4.13%

CME Options: 4.60%

 

Volume 

 

OneChicago Volume: 80,582

Eurex US Volume: 4759

Euronext.liffe Eurodollar Volume: 12, 210

CBOE Futures Exchange Volume: 283

 

Market Share

 

CBOT 100 oz. Gold Volume: 791

NYMEX 100 oz. Gold Volume: 42,357

CBOT Share: 1.83%

 

CBOT 5000 oz. Silver Volume: 94

NYMEX 5000 oz. Silver Volume: 15,304

CBOT Share: .61%

 

CBOT Mini Gold Volume: 335

CBOT Mini Silver Volume: 393

 

CME Emini Russell 1000 (100X) Volume: 3314

Eurex US Mini Russell 1000 (100X) Volume: 1001

NYBOT Mini Russell 1000 (50X) Volume: 157

CFE Mini Russell 1000 (100X) Volume: 0

 

CME Emini Russell 2000 Volume: 100,593

Eurex US Mini Russell 2000 Volume: 3369

CFE Mini Russell 2000 Volume: 12

 

Notes: Check out the OneChicago volume yesterday, www.onechicago.com.

 

Liffe Eurodollar Over-Under

 

Liffe/Globex: 1.33%

Liffe/CME: 1.06%

 

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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