July 20, 2005

 

Lead Stories

 

Amex Losing iShares Listings

Barclays' decision to shift trading in its popular exchange-traded funds to the NYSE comes as a major blow.

http://www.thestreet.com/_tscrss/funds/gregggreenberg/10233527.html

 

NYSE to Become a Leading Market for Listing ETFs

NEW YORK, July 20, 2005 – Barclays Global Investors announced today the transfer of 61 iShares® Exchange Traded Funds to the New York Stock Exchange from the American Stock Exchange, making the NYSE the largest market for listing iShares ETFs.  The initiative underscores the NYSE’s strategy of expanding its position in the trading of ETFs, structured products and other derivative securities.

http://www.nyse.com/press/1121856210925.html

 

***** Shouldn’t the headline read “NYSE Poaches listings of AMEX Innovation”? 

 

The Archipelago Exchange(SM) (ArcaEx(R)) Announces Listing of Twenty iShares(R) Products

The Archipelago Exchange , the nation's first totally open, all-electronic stock exchange, today announced that Barclays Global Investors , a worldwide leader in exchange traded funds , plans to transfer the listing of

http://biz.yahoo.com/prnews/050720/nyw1000.html?.v=1

 

Barclays Global Investors Announces Strategic Move to List iShares(R) Products on the New York Stock Exchange and the

Barclays Global Investors , a worldwide leader in exchange traded funds , announced today that the primary listings of 81 iShares products will transfer from the American Stock Exchange to the New York Stock Exchange and the Archipelago Exchange (ArcaEx).

http://biz.yahoo.com/bw/050720/205435.html?.v=1

 

Boston Options Exchange Says SEC Broker Probe May Be a Boon

July 19 (Bloomberg) -- The Boston Options Exchange, the newest and smallest U.S. stock-options exchange, may benefit from a Securities and Exchange Commission probe into how brokers handle options orders, said Will Easley, the exchange's managing director.   The SEC's office of compliance, inspections and examinations is asking options brokers whether they receive payment for sending orders to certain markets, according to a letter sent to brokers July 5. The letter, which also seeks information on how brokers decide where to direct their orders, requests a reply by today.  The BOX, as the Boston exchange is known, is the only exchange in the $1.1 trillion U.S. stock-options market that doesn't pay brokers for orders. Instead, customers can get more for their money at the BOX because the market lets brokers trade with their own clients as long as they guarantee a price that is one cent better than at competing exchanges, Easley said.

http://www.bloomberg.com/apps/news?pid=10000082&sid=amLgYnAI.Kv8&refer=canada

 

IPE Reviews Contingency Plans After Software Glitch

LONDON (Dow Jones)--The operators of London's International Petroleum Exchange are reviewing their contingency measures after a software glitch threw last Thursday's trading session into disarray, a spokeswoman for the company said Tuesday.

http://asia.news.yahoo.com/050720/5/248vl.html

 

New Zealand Exchange's Equity Futures To Begin Trading In August 

WELLINGTON -(Dow Jones)- The New Zealand Exchange Ltd. (NZX.NZ) said Monday that its share options will begin trading on the Sydney Futures Exchange next month.  Options for shares in five New Zealand companies will be available: Carter Holt Harvey Ltd. (CAH.NZ), Contact Energy Ltd. (CEN.NZ), Fletcher Building Ltd. (FBU.NZ), Telecom Corp. Of NZ (TEL.NZ), and The Warehouse Ltd. (WHS.NZ).

http://news.morningstar.com/news/DJ/M07/D18/200507180059DOWJONESDJONLINE000010.html

 

French Lawyer Frederik-Karel Canoy Responds in the Thomas H. Lee Partners and Refco Case After Statement by Refco Group

"On September 8, 2004, plaintiff Gérard SILLAM filed a complaint, Index No. 602925/04, in the Supreme Court of the State of New York, County of New York against defendants REFCO GROUP Ltd, LLC and Mr.

http://biz.yahoo.com/iw/050720/091239.html

 

Morgan Stanley sued over payments to former execs

William Lerach, a prominent class-action lawyer whose past actions are under investigation, filed a lawsuit here Monday against Morgan Stanley's board. The lawsuit says directors breached their fiduciary duties by letting two top executives walk out the door with more than $100 million.

http://news.yahoo.com/news?tmpl=story&u=/usatoday/20050720/bs_usatoday/morganstanleysuedoverpaymentstoformerexecs

 

Morgan Stanley Pays $187M To Settle Parmalat Claims

Morgan Stanley has paid Parmalat €155 million ($187 million) to settle all outstanding claims the Italian dairy giant had against the bank. The payment, which was received Monday after being approved by the Italian government, is the first settlement between Parmalat and a major international bank.

http://www.compliancereporter.com/default.asp?page=1&SID=525825&ISS=17694&pressbox=1

 

Pension fund sues Morgan Stanley

A pension fund that holds shares of Morgan Stanley has sued the giant investment bank's directors, claiming they wasted corporate assets through "grotesque mismanagement," including paying more than $100 million to two departing executives.

http://www.newsday.com/business/ny-bzmorg4350256jul20,0,6165999.story?coll=ny-business-headlines

 

Mack tells Morgan Stanley troops to get 'revved up' or leave

NEW YORK (MarketWatch) -- In an impromptu pep rally, Morgan Stanley Chief Executive John Mack told employees Monday to end their turf battles and work with him to restore the company's reputation.

http://www.marketwatch.com/tools/quotes/newsarticle.asp?guid=%7B732945EA-F17F-46FC-8A77-1D4DA39321EB%7D&dist=rss&siteid=mktw

 

Grasso: Open to Settling NYSE Suit

http://www.newsday.com/business/nationworld/wire/sns-ap-nyse-grasso,0,1173257.story?coll=sns-ap-business-headlines

 

Gasparino: What Paulson Said To NYSE Lawyers

In newly-released documents, Goldman Sachs CEO Henry Paulson reveals details of former NYSE Chairman Dick Grasso’s controversial pay package.

http://www.msnbc.msn.com/id/8620408/site/newsweek/&&CE=3032541

 

Fallen Money Manager Has Horse Sense

Gary Tanaka, once a top money manager, has stumbled in recent years. His tech fund tanked, and he was charged with stealing investor money. At the same time, his success in horse racing puts him lengths ahead of rivals.

http://online.wsj.com/article/0,,SB112182386508590335,00.html?mod=home%5Fpage%5Fone%5Fus

 

**** Online WSJ subscription required.

 

Citi: Suddenly Thin at the Top

The exits of No. 2 exec Robert Willumstad and legendary Chairman Sandy Weill have Wall Street questioning the remaining leadership

http://www.businessweek.com/bwdaily/dnflash/jul2005/nf20050720_8752_db035.htm

 

Fidelity may face charges over trader's lavish fete

Gifts inquiry looks at allegations firms picked up part of tab

The extravagant bachelor party thrown for a Fidelity Investments trader in 2003 could land the mutual fund company in legal trouble, as well as some of the individuals involved, legal specialists said yesterday.

http://www.boston.com/business/articles/2005/07/19/fidelity_may_face_charges_over_traders_lavish_fete/

 

Environmental Trading News

 

ADM & Sterling Ethanol Announce Marketing Agreement

Archer Daniels Midland Company and Sterling Ethanol, LLC are pleased to announce the formation of an ethanol marketing agreement. As part of this marketing agreement, ADM will market all ethanol produced by Sterling Ethanol at its Sterling , Colorado facility.

http://www.cattlenetwork.com/content.asp?contentid=6186

 

Exchange & ECN News

 

For an NYSE seat, stand in line

By Aaron Lucchetti, The Wall Street Journal

Toronto money manager Thomas Caldwell is one of the largest owners of New York Stock Exchange seats, having bought 22 in the last two years. He would buy more, if not for century-old rules aimed at maintaining the cachet of one of capitalism's most exclusive clubs.

http://www.post-gazette.com/pg/05200/540240.stm

 

CBOT Strike Price Notice July 20, 2005

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+29425,00.html

 

Give Up Payment System (GPS) Parallel Testing

http://www.cme.com/clearing/clr/clradv/14403.html

 

Seven (7) New Weather Futures and Options on Futures

http://www.cme.com/clearing/clr/npadv/13255.html

 

The Archipelago Exchange(SM) (ArcaEx(R)) Announces Dual Listing of A4S Security, Inc.

http://investor.archipelago.com/phoenix.zhtml?c=140290&p=irol-newsArticle&ID=732313&highlight=

 

CAC 40 closing auction will be delayed by 15 minutes - Euronext

PARIS (AFX) - Today's closing auction on the CAC 40 will be delayed for 15 minutes as a consequence of the reunification of Royal Dutch Petrolum Co NV and Shell Transport & Trading PLC shares, Euronext said in a press release.

http://www.iii.co.uk/news/?type=afxnews&articleid=5356662&subject=markets&action=article

 

Royal Dutch Shell plc listed on Euronext

http://www.euronext.com/file/view/0,4245,1626_53424_617563373,00.pdf

 

Monthly Short Selling Value

http://www.tse.or.jp/english/data/exotic/karauri/index.html

 

Instinet Group Announces June 2005 Transaction Information

Instinet Group Incorporated today announced June 2005 transaction data for its two major business segments: Instinet, The Institutional Broker and INET, The electronic marketplace.

http://biz.yahoo.com/bw/050719/196143.html?.v=1

 

Goldman, Commerzbank join Japan's TOCOM

TOKYO, July 20 (Reuters) - U.S. investment bank Goldman Sachs and German bank Commerzbank have become members of the Tokyo Commodity Exchange, the first two major foreign entrants since Japan adopted a new commodity law in May, the TOCOM said on Wednesday.

http://asia.news.yahoo.com/050720/3/248y1.html

 

OMX – Interim Report January-June 2005

http://www.exchange-handbook.co.uk/news_story.cfm?id=54057

 

 

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/dig071905.txt

 

CFTC Alleges that Victor Lochmann of Humeston, Iowa, Misappropriated Customer Funds and Engaged in Unauthorized Trading

http://www.cftc.gov/opa/enf05/opa5098-05.htm

 

New Online Training Resources

NASD Launches New Webcast and E-learning Courses Focused on AML

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

 

Andrew McLelland Named Academic Accounting Fellow For SEC Division Of Corporation Finance

http://www.sec.gov/news/press/2005-102.htm

 

SEC settles with AIM executives over market timing

Former AIM Distributors CEO fined US$125,000

http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=29728&IdSection=8&cat=8

 

ASC panel finds directors “unsuitable”

Upholds TSX-V decision

http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=29727&IdSection=8&cat=8

 

Investment manager fined $100,000 for wash trading

Manager used two accounts to preserve short positions

http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=29726&IdSection=8&cat=8

 

New York Attorney General Eliot Spitzer: CIBC Settles Market Timing Investigation Agrees To Pay $125 Million In Restitution And Penalties

http://www.exchange-handbook.co.uk/news_story.cfm?id=54068

 

SEC: Settled Administrative Proceeding Against Canadian Imperial Bank Of Commerce Subsidiaries

http://www.exchange-handbook.co.uk/news_story.cfm?id=54067

 

Managed Futures - Managed Funds

 

Charles Schwab Shores Up Portfolio Performance

According to Yahoo! Finance, Charles Schwab (SCH), through its subsidiaries, provides financial services to individuals and institutional clients...( Read More )

http://www.schaeffersresearch.com/commentary/observations.aspx?ID=13669&c=obsfeed

 

Hedge Fund Boosts Team

Cardinal Asset Management has hired Achilles Macris , former global head of capital markets at Dresdner Kleinwort Wasserstein , to lead the development of its global macro hedge fund, reports The Financial Times http://www.globalmoneymanagement.com/default.asp?page=1&SID=525824&ISS=17508&pressbox=1

 

Fitch adds voice to concerns over hedge fund risk

The rise of hedge funds has forged links between previously unrelated segments of the credit markets, creating a risk that trouble in one area could spread faster to others, Fitch Ratings said.

http://www.iht.com/articles/2005/07/20/business/gflede.php

 

Investing in Fine Art as an Alternative Asset Class

Dissatisfied with performance in the traditional equity and bond markets, investors have been tapping into "alternative asset classes" such as hedge funds, real estate investment trusts and private equity funds. Kevin Foong examines the emerging phenomenon of investing in art as an alternative asset class. [PRWEB Jul 19, 2005]

http://www.prweb.com/releases/2005/7/prwebxml263010.php

 

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

 

MSCI, S&P mulling over changes to industry classifications

Firms issue consultation paper

http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=29723&IdSection=15&cat=15

 

Merrill, State Street flag divide among investors

http://news.reuters.com/newsArticle.jhtml;jsessionid=35CGPHG5UFJICCRBAELCFFA?type=reutersEdge&storyID=9110052

 

FT launches new B2B advertising site

The Financial Times is going global with the launch of a new business-to-business advertising website prompted by key research into readers’ wealth.

http://www.mediaweek.co.uk/articles/folder2005/07/julydaily/ft-b2badsite

 

TradeStation Group Reports Record Revenues, Income Before Income Taxes, DARTs and Brokerage Accounts for 2005 Second

TradeStation Group, Inc. today reported record quarterly revenues of $23.0 million, record quarterly income before income taxes of $7.5 million, record daily average revenue trades of over 41,000, and record total brokerage accounts of nearly 21,000.

http://biz.yahoo.com/prnews/050720/flw002.html?.v=19

 

Rolfe & Nolan signs American Mutual for 5-year RISC, Web and Task Automation Package Back 

Chicago, 20th July 2005 - Rolfe & Nolan Systems Inc. announced a five-year agreement for RISC, Rolfe & Nolan’s back-office processing system, with American Mutual Holding Corp. American Mutual has also subscribed to e-Route, Rolfe & Nolan’s Internet / Intranet data formatting and delivery system; the Web Account Inquiry solution; and the Task Automation Module management system. The solution package will be delivered under Rolfe & Nolan’s popular ASP business model, allowing American Mutual to fully outsource its hardware, network connectivity, application processing and exchange connectivity requirements to Rolfe & Nolan.

http://www.rolfeandnolan.com/default.aspx.locid-0fdnew07j.htm

 

Strategy Discussion  - CBOE PowerPacks

 

Bullish on Oil

 

http://www.cboe.com/Strategies/WeeklyStrategy.aspx

 

Example:
Oil prices have been climbing steadily all summer, and you don't expect the rise to slow down until after the Labor Day holiday. CBOE PowerPacks Oil Index (POY), is a narrow-based, modified capitalization-weighted index composed of twenty-five of the highest capitalization international and domestic companies within the oil sector involved in exploration and production of petroleum products that are actively traded in the U.S. In this example, POY is at a level of 85.

 

Outlook:
Bullish on oil company stocks, but not certain which companies, specifically, will be most affected. Use the POY so as not to limit your prediction to only one or two oil companies.

 

Possible strategy:
Bull Call Spread:

• Buy 10 POY September 80 calls at 3.
• Sell 10 POY September 87.5 calls at 1.25.
• Debit of 1.75 each, or ($1,750.00).

For more information on the risks and benefits of this strategy, click here.

John's Comments

 

Canoe Trip

 

I will be on vacation, if a canoe trip with 6 Cub Scouts and their Dads to a wilderness area with mosquitoes the size of small airplanes can be considered a vacation, from July 28 to July 31.  I will return to the office on August 1.  In my place, editing the newsletter will by my nephew, Ryan Lothian.  Ryan is a recent graduate of the University of Illinois and has been webmaster for the Price Group for the last 4 years while going to school.  He graduated in May with a degree in media studies and is doing freelance web design and marketing work while looking for a full-time communications/marketing position.  For you potential employers, his resume can be found at www.lothianinc.com/ryanlothianresume.pdf.

 

If you have news for Ryan on July 28 and 29, he can be reached at rlothian@pricegroup.com or by calling my Price Group phone number listed in my business card below.

 

 

*******

 

Brent Crude Watch

 

IPE Brent Volume: 122,242

NYMEX Brent Crude Volume: 3099

NYMEX Percent of Total Volume: 2.47%

 

********

 

Chicago Electronic Trading Scorecard for July 19, 2005

 

Percent Electronic

 

CBOT: 57.59%

CME: 66.27%

CME Eurodollars: 80.07%

CME Live Cattle: DNR

CME Currency Products: 85.77%

CBOT Soybeans: 2.34%

 

CBOT Options: 9.37%

CME Options: 6.22%

 

Volume 

 

OneChicago Volume: 149,647

Eurex US Volume: 2462

Euronext.liffe Eurodollar Volume: 11,839

CBOE Futures Exchange Volume: 298

 

Market Share

 

CBOT 100 oz. Gold Volume: 1662

NYMEX 100 oz. Gold Volume: 56,787

CBOT Share: 2.84%

 

CBOT 5000 oz. Silver Volume: 141

NYMEX 5000 oz. Silver Volume: 14,369

CBOT Share: .97%

 

CBOT Mini Gold Volume: 686

CBOT Mini Silver Volume: 276

 

CME Emini Russell 1000 (100X) Volume: 1797

Eurex US Mini Russell 1000 (100X) Volume: 363

NYBOT Mini Russell 1000 (50X) Volume: 198

CFE Mini Russell 1000 (100X) Volume: 50

 

CME Emini Russell 2000 Volume: 84,946

Eurex US Mini Russell 2000 Volume: 1675

CFE Mini Russell 2000 Volume: 10

 

Notes: OneChicago set its 8th open interest record in July, with open interest jumping to 828,551, as of the end of trading July 19, on exchange volume of 149,647 contracts.  The daily volume yesterday was just over 4 times the average daily volume for the month, which is on a record pace of over 37,000 contracts per day.

 

Liffe Eurodollar Over-Under

 

Liffe/Globex: 1.20%

Liffe/CME: .96%

 

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

Add me to your address book... Want a signature like this?

 

 

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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