August 2, 2005

 

Lead Stories

 

Streamlining regulation

By Gary DeWaal

New York Stock Exchange Chief Executive John Thain recently commented that in light of increasing competition and industry-wide consolidation there is a need to further expand and facilitate trading in a broader array of products, including options and other derivatives, if the exchange intends to compete on a global financial market stage. Hopefully, the right people on Capitol Hill were listening and stopped to consider what an utter regulatory nightmare such an ambitious (and necessary) undertaking would present under this country's current, archaic regulatory structure.  If change is essential for the United States' most important stock exchange to compete globally, shouldn't the same hold true for America's financial regulatory regime? There exists an urgent need to appoint a single financial services regulator to oversee all financial services in this country. This is especially true if the United States will remain an attractive location for financial-services-industry professionals to provide a full range of global financial services offerings to domestic persons and international clientele.

http://washingtontimes.com/op-ed/20050801-094053-4581r.htm

 

OneChicago Reports Record Monthly Volume, Open Interest In July

Volume Up 903% Over July '04, Up 150% YTD

CHICAGO, IL – Aug. 1, 2005 – OneChicago, LLC today reported that 860,139 security futures contracts traded at the Exchange in July, an all-time monthly record. July volume is 903% higher than the 85,772 traded in July 2004. The average daily volume of 43,007 contracts is 953% higher than in July 2004. Year-to-date volume is up 150%.  Fifteen open interest records were set in July, eight of them reached on consecutive trading days. Open interest stood at 1,101,065 on July 29.  Marty Doyle, President of OneChicago, said, “July marks the sixth consecutive month of year-over-year monthly volume gains. Our new volume and open interest records confirm the growing momentum surrounding OneChicago and security futures. As we move into the second half of the year we continue to educate the marketplace about security futures and their various uses.”

http://www.onechicago.com/060000_press_news/press_news_2005/08012005.html

http://www.onechicago.com/060000_press_news/press_news_2005/images/July05VolumeReport.pdf

 

***** 953% increase year over year.  953% increase year over year.  It takes some time for this number to sink in.

 

Treasury Expected to Revive 30-Year Bond

http://online.wsj.com/article/0,,SB112290998941601594,00.html?mod=home%5Fwhats%5Fnews%5Fus

 

***** Online WSJ subscription required.

 

Reuben Jeffery III Sworn in As CFTC Chairman; Walter Lukken Sworn in To A Second Term As CFTC Commissioner

http://www.cftc.gov/opa/press05/opa5103-05.htm

 

****** The swearing in ceremony was attended by representatives for the CBOT, Eurex and some former SEC Commissioners, according to a source in attendance.

 

CBOT Average Daily Volume Climbs 12.9 Percent from Last Year

The CBOT announced today that Exchange-wide volume continued to climb in July.  See press release for details

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1036+29693,00.html

 

KCBT July Volume & Open Interest

KCBT wheat futures increase in volume and open interest for the month of July

http://www.kcbot.com/news_2.asp?id=299&home=1

 

ISE Reports Monthly Volume for July 2005

NEW YORK--(BUSINESS WIRE)--Aug. 1, 2005--The International Securities Exchange (NYSE: ISE) today reported equity options trading volume for July 2005. Average daily trading volume in equity options contracts increased 22.3% to 1.7 million contracts traded as compared to 1.4 million contracts traded in the same period in the prior year. Total equity options volume for the month increased 16.5% to 34.2 million contracts traded as compared to 29.3 million contracts traded in the same year-ago period.  On a year-to-date basis, average daily volume increased 17.5% to 1.7 million contracts traded as compared to 1.4 million contracts traded in the prior year. Total equity options volume increased 17.5% to 241.8 million contracts versus 205.7 million contracts in the same period last year.

http://phx.corporate-ir.net/phoenix.zhtml?c=176358&p=irol-newsArticle&ID=737985&highlight=

 

CBOE JULY VOLUME RISES 28%; New Monthly Trading Records Set In Nasdaq and Russell Products

CHICAGO, August 1, 2005 - The Chicago Board Options Exchange (CBOE) announced today that July trading volume at CBOE was 35,987,001 contracts, 28% higher than the 28,231,303 contracts traded in July 2004. Year-to-date, CBOE's 2005 total volume of 252.5 million contracts is 21% ahead of 2004's YTD volume of 208.9 million contracts. Additionally, two new all-time monthly volume records were set at CBOE during July. In options on the Nasdaq-100 Index (NDX), 594,563 contracts traded, surpassing the previous record of 559,122 contracts traded in May 2005; and in options on the iShares Russell 2000 Index Fund (IWM), 1,531,972 contracts traded, besting the old high mark of 1,418,918 contracts from April 2005.

http://www.cboe.com/AboutCBOE/ShowDocument.aspx?DIR=ACNews&FILE=20050801.doc

 

BOX Sets Multiple Records for Market Share and Average Daily Contract Volume

BOX’s share of total OCC equity option volume was 6.6% for July 2005, a new record, while the BOX share of total OCC option volume topped 6% for the first time. Average daily volume for the month was 339,702 contracts, a 10.4% increase over the previous record of 307,702 set in April 2005.

http://www.bostonoptions.com/pdf/BOXPressReleaseJuly05.pdf

 

92 Million Contracts Traded on Eurex in July

Turnover climbs to 731 million contracts in the first seven months of 2005

http://deutsche-boerse.com/dbag/dispatch/en/listcontent/gdb_navigation/press/10_Latest_Press_Releases/Content_Files/13_press/pm_news_010805_eurex.htm

 

Equities Turnover in July 48 Percent up Year-on-Year

€331 billion in turnover on German stock exchanges in July/ 7.1 million transactions on Xetra

http://deutsche-boerse.com/dbag/dispatch/en/listcontent/gdb_navigation/press/10_Latest_Press_Releases/Content_Files/13_press/pm_news_010805_cashmarket.htm

 

Deutsche Boerse Trading Volume Growth Strong

http://www.newratings.com/analyst_news/article_948639.html

 

The Yuan Grows Up

Untethered from the dollar, it could become a major world currency

http://www.businessweek.com/magazine/content/05_32/b3946147_mz035.htm

 

Amex grapples with setback

Loss of Barclays' ETF business clouds exchange's future 

BOSTON (MarketWatch) -- Sometimes on Wall Street, nothing fails like success.  The old saw seems particularly apt just now for the American Stock Exchange.  After playing a key role in developing the first U.S. exchange-traded funds and pioneering what has become a $250 billion business, the Amex has lost its dominance of ETF trading to rival exchanges and upstart electronic communication networks.

http://www.marketwatch.com/news/story.asp?guid=%7B65345CD1-F860-4553-ADA7-1372CD957F11%7D&siteid=google&dist=

 

FIX for ASX trading system

MELBOURNE group CameronSystems will supply the engine to power the Australian Stock Exchange's Financial Information Exchange (FIX) protocol-based trading systems.  The FIX-based system will replace the SEATS (Stock Exchange Automated Trading) system in use since 1987.   The software is part of the exchange's move to a single trading platform and will allow investors to trade equities, derivatives and fixed-income securities on one system.

http://australianit.news.com.au/articles/0%2C7204%2C16120908%255E15340%255E%255Enbv%255E15306-15318%2C00.html

 

Spread betting firm gets Irish license

Global Trader, the spread trading company which was founded in Dublin in 2001, announced today that is has been granted a Financial Services Authority (FSA) license to trade in Ireland.

http://www.businessworld.ie/livenews.htm?a=1227272;s=rollingnews.htm

 

Environmental Trading News

 

EEX Trading Results In July

In July 2005, the European Energy Exchange (EEX) saw a total turnover of 60.7 TWh. Of this amount, 6.936.041 MWh were traded on the Spot Market.  In July, the Derivatives Market volume was 53.7 TWh. Of this amount, 43.6 TWh were traded in yearly futures and 3.1 TWh in yearly options. The volume in quarterly futures was 4.7 TWh and 2.4 TWh in monthly futures. The Derivatives Market´s volume in-cludes 32.4 TWh from OTC Clearing. The Open Interest on July 29, 2005 was 130.5 TWh in futures and 7.5 TWh in options.

http://www.exchange-handbook.co.uk/news_story.cfm?id=54274

 

Climate Wise

The introduction of the European Union Emissions Trading Scheme has made the imperative of confronting rising emissions of greenhouse gases tangible in ways that endless exhortations by environment ministers could never do.

http://www.greenbiz.com/news/columns_third.cfm?NewsID=28447

 

Exchange & ECN News

 

CBOT December 2005 10-Year Municipal Note Index

This spreadsheet contains daily prices and yields, as well as descriptive information, of the underlying cash market index and constituent component bonds for the CBOT December 2005 10-Year Municipal Note Index futures contract that will be listed for trading beginning Tuesday, August 2, 2005. This spreadsheet will be updated and available for downloading on a daily basis at the following times:

1) At approximately 3:30 p.m. Chicago time on regular Exchange trading days prior to contract expiration;

2) At approximately 2:30 p.m. Chicago time at contract expiration only; and

3) At approximately 1:30 p.m. Chicago time on Exchange trading days that are subject to an early market close

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1027+29707,00.html

 

CBOT Strike Price Notice August 2, 2005

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+29705,00.html

 

CME Targets European Market Users with Eurozone HICP Inflation Futures Contract

http://www.cme.com/about/press/cn/05-103EuroHICP14600.html

 

Position Adjustment Deadlines for the September 2005 Metal and Energy Contracts [Nymex Rule 9.04(P) and Comex Rule 104.37(A)]

http://www.nymex.com/notice_to_member.aspx?id=ntm307&archive=2005

 

New Equity Option Classes

http://www.m-x.ca/f_comm_press_en/016-05_en.pdf

 

Red Cross to Ring the Opening Bell on Tuesday, August 2 to Promote Summer Blood Drive

http://www.phlx.com/news/pr2005/05pr080105.htm

 

NASDAQ100 ETF starts trading on London Stock Exchange

http://www.londonstockexchange.com/en-gb/about/Newsroom/pressreleases/2005/020805nasdaq100.htm

 

Amex to Trade Options on Seven Securities

http://www.amex.com/atamex/news/press/sn_optns_7_on_Aug_01_080105.htm

 

Stockholm Stock Exchange Statistics Report - Derivatives Volumes January-July 2005

http://www.exchange-handbook.co.uk/news_story.cfm?id=54279

 

Copenhagen Stock Exchange - July Share Trading On Copenhagen Stock Exchange Up 51 Per Cent Compared With 2004

http://www.exchange-handbook.co.uk/news_story.cfm?id=54278

 

Insider Transactions

http://finance.yahoo.com/q/it?s=CME

 

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/dig080105.txt

 

Association Calls On New Chairman To Lead On Balanced, Effective Regulation

http://www.sia.com/press/2005_press_releases/04641211.html

 

SEC Advisory Committee on Smaller Public Companies Solicits Public Input on Ways to Improve the Current Regulatory

Washington, D.C., Aug. 2, 2005 — The SEC Advisory Committee on Smaller Public Companies today published a series of questions to solicit public input from investors and companies on ways to improve the current regulatory system for smaller companies and to examine the impact of the Sarbanes-Oxley Act of 2002.

http://rds.yahoo.com/S=53720272/K=sec/v=2/SID=w/l=NSR/R=3/SIG=11u9b4ip9/EXP=1123080586/*-http%3A//www.sec.gov/news/press/2005-105.htm

 

Christine Favara Charged By SEC

Christine Favara is back in the news – this time as the defendant in an SEC suit charging securities fraud.  Those who have followed Ms. Favara’s career running penny stock companies may not be surprised to learn that she has run afoul of regulators, and not for the first time.  Favara has been known by a number of different names and so have the companies she has run.  While the names keep changing, however, the results remained the same – dismal.  Ms. Favara and her companies entice investors with bold promises and lofty projections but inevitably fail to perform. 

http://www.stockpatrol.com/article/key/favaracharged%20by%20sec

 

NASD Fines Morgan Stanley $1.5 Million

The National Association of Securities Dealers said Tuesday it has fined Morgan Stanley DW Inc. $1.5 million and ordered the firm to pay more than $4.6 million in restitution for failing to adequately supervise its fee-based brokerage business.

http://biz.yahoo.com/ap/050802/morgan_stanley_nasd.html?.v=1

 

Regulator on watch for gaps in securities laws

The Hunt brothers' attempt to corner the silver market was just being discovered in 1980 when Mary Schapiro was graduating from law school. The scandal changed her life.

http://www.sun-sentinel.com/business/local/sfl-zkristof02aug02,0,1791606.column?coll=sfla-business-headlines

 

Managed Futures - Managed Funds

 

MFA's 2005 Sound Practices for Hedge Fund Managers

http://www.mfainfo.org/images/PDF/MFAs_2005_Sound_Practices_FINAL.pdf

http://www.mfainfo.org/images/PDF/MFAReleases2005SoundPractices_PressRelease.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

 

P&G tackles rising cost of raw materials 

By Jeremy Grant in Washington

Procter & Gamble yesterday delivered a 9 per cent rise in fourth-quarter earnings on booming global sales of Pampers...

http://news.ft.com/cms/s/032abf3e-02f1-11da-84e5-00000e2511c8.html

 

***** Jeremy Grant has left Chicago and moved to Washington.  He will be continuing to cover the futures industry from Washington, DC, until his temporary replacement arrives in Chicago later in August.

 

Eileen Ryan To Join SIA As VP And Associate General Counsel

http://www.sia.com/press/2005_press_releases/04644859.html

 

How Wall Street Wrecked United's Pension

http://www.nytimes.com/2005/07/31/business/yourmoney/31pension.html

 

Digital Domain: Why Bill Gates Wants 3,000 New Patents

http://www.nytimes.com/2005/07/31/business/yourmoney/31digi.html

 

Everybody's Business: Don't Worry About China. Learn From It.

http://www.nytimes.com/2005/07/31/business/yourmoney/31every.html

 

Schwab Names William F. Aldinger to Board of Directors

The Charles Schwab Corporation today announced the appointment of William F. Aldinger to its board of directors.

http://biz.yahoo.com/prnews/050801/sfm098.html?.v=17

 

Patsystems buys into derivatives

Financial software concern Patsystems has accompanied a move into quarterly operating profitability with the £3.8 million purchase of derivatives-focused Tamesis.

http://www.growthcompany.co.uk/news-and-comment/18579/patsystems-buys-into-derivatives.thtml

 

Patsystems poised for profit

LONDON (SHARECAST) - Trading systems group Patsystems produced a respectable result today as it moved into breakeven on an operating basis for the half year.

The group had already flagged up the figures last month when it revealed it made an operating profit in the second quarter of £322,000 against a loss of £356,000 last time.

http://www.sharecast.com/cgi-bin/sharecast/story.cgi?story_id=518648

 

Stephen Bookbinder Joins Investment Bankers Chatsworth Securities

Chatsworth Securities LLC is pleased to announce that Stephen Bookbinder has joined the firm as a Managing Director. Mr. Bookbinder will focus on investment and advisory opportunities in the global electronic capital markets and qualitative structured products, working with existing clients and new clients to expand the product offerings that Chatsworth provides.

http://biz.yahoo.com/iw/050801/091924.html

 

Notice to All Citigroup Global Markets Inc., f/k/a Salomon Smith Barney, Customers Between 1999 and 2001: The

The Securities Arbitration Law Firm of Klayman & Toskes, P.A. , representing numerous aggrieved investors throughout the nation, advises all Citigroup Global Markets, Inc. , f/k/a Salomon Smith Barney, customers who are eligible to participate in the Global Research Analyst Distribution Fund to explore all their legal options before submitting a claim prior to the July 29, 2005 deadline.

http://biz.yahoo.com/pz/050727/82816.html

 

Event – Online

 

"Trading Vertical Spreads"

Hosted by Jim Bittman, The Options Institute

 

Thursday, August 4th 3:30 p.m. CST

 

Join us as The OPTIONS INSTITUTE's Jim Bittman launches an enlightening discussion on Trading Vertical Spreads.

 

This online seminar will discuss what vertical spreads are, how they work and when they may be appropriately used in your trading. You'll also gain perspective on entering spread orders - market versus limit - and much more.

 

Audience: Intermediate to Advanced Level Investors

http://www.cboe.com/LearnCenter/webcast/webcastlive.aspx

 

John's Comments

 

Securities Week TT Patent Story Follow up

 

A Securities Week story by Sarah Rudolph in the August 1 edition reported that Rosenthal Collins Group is suing Trading Technologies for misuse of patents.  According to Securities Week,

RCG is asking a judge to declare "not only that RCG does not infringe on either of TT's MD Trader patents, but also that they patents are unenforceable because of TT's conduct relating to them.”

 

*********

 

Brent Crude Watch

 

IPE Brent Volume: 121,316

NYMEX Brent Crude Volume:  1174

NYMEX Percent of Total Volume: .96%

 

********

 

Chicago Electronic Trading Scorecard for August 1, 2005

 

Percent Electronic

 

CBOT: 65.31%

CME: 64.64%

CME Eurodollars: 73.17%

CME Live Cattle: 1.81%

CME Currency Products: 83.27%

CBOT Soybeans: 7.08%

 

CBOT Options: 7.08%

CME Options: 8.04%

 

Volume 

 

OneChicago Volume: 1877

Eurex US Volume: 3417

Euronext.liffe Eurodollar Volume: 5207

CBOE Futures Exchange Volume: 236

 

Market Share

 

CBOT 100 oz. Gold Volume: 1404

NYMEX 100 oz. Gold Volume: 40,523

CBOT Share: 3.35%

 

CBOT 5000 oz. Silver Volume: 145

NYMEX 5000 oz. Silver Volume: 17,998

CBOT Share: .80%

 

CBOT Mini Gold Volume: 588

CBOT Mini Silver Volume: 526

 

Notes:

 

Liffe Eurodollar Over-Under

 

Liffe/Globex: .59%

Liffe/CME: .43%

 

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.

 

This is an opt-in newsletter.  If you wish to unsubscribe, please check the address of list you are receiving the newsletter from and then click on the appropriate link below.

 

mailto:johnlothiannewsletter-request@johnlothiannewsletter.com?subject=unsubscribe

 

mailto:johnlothiannewsletter1-request@johnlothiannewsletter.com?subject=unsubscribe

 

mailto:johnlothiannewsletter2-request@johnlothiannewsletter.com?subject=unsubscribe

 

mailto:johnlothiannewsletter3-request@johnlothiannewsletter.com?subject=unsubscribe

 

mailto:johnlothiannewsletter4-request@johnlothiannewsletter.com?subject=unsubscribe

 

mailto:johnlothiannewsletter5-request@johnlothiannewsletter.com?subject=unsubscribe

 

If the unsubscribe links above do not work for you, please send an email to johnlothian@johnlothian.com with unsubscribe in the subject line.

 

This is a voluntary pay newsletter.  The voluntary pay fee for a 1-year subscription is $95, or $55 for 6-months.  For more details about this, or to sign up to receive the newsletter, please go to www.johnlothiannewsletter.com.