August 4, 2005

 

Lead Stories

 

NYMEX Chairman Provides Strategic Update

http://www.nymex.com/press_releas.aspx?id=pr20050803a

 

Nymex considers investors

New York Mercantile Exchange Inc. Wednesday, Aug. 3, confirmed it is reviewing proposals from two investor groups to take minority stakes in the exchange, and it is also contemplating other strategic alternatives, such as an initial public offering.

http://www.thedeal.com/NASApp/cs/ContentServer?pagename=TheDeal/TDDArticle/StandardArticle&c=TDDArticle&cid=1122475903613&r=InFs&p=M4YD5AR2

 

Big Board Seat Sells for a Record $3 Million

By JENNY ANDERSON

A seat on the New York Stock Exchange has sold for a record $3 million, the exchange said yesterday, up from the previous record sale of $2.65 million in August 1999, when the stock market was booming.

The latest sale will add fuel to the debate over the Big Board's pending merger with Archipelago, the electronic exchange operator. Since the merger was announced in late April, holders of seats on the New York Exchange, who will own 70 percent of the combined entity, have complained that they were not given a sufficient ownership stake in the company.

http://www.nytimes.com/2005/08/04/business/04nyse.html

 

$3.0 Million NYSE Seat Sale Marks New Historic Record High

http://www.nyse.com/press/1123065685366.html

 

 

Seat sold for record $3madvertisementRelated information

All Financial Times NewsThe price of a membership on the New York Stock Exchange was sold for $3m on Wednesday amid anticipation of the NYSE's upcoming merger with an electronic rival and transformation into a public company.  The new record represents a 208 per cent jump in the price of an NYSE seat since January, and a 13 per cent increase over the previous record price of $2.65m, set almost six years ago.

http://news.moneycentral.msn.com/provider/providerarticle.asp?feed=FT&Date=20050804&ID=5016934

 

Big Board Investigates Firms For Possible Improper Trading

By AARON LUCCHETTI

Staff Reporter of THE WALL STREET JOURNAL

The New York Stock Exchange's regulatory unit is considering enforcement actions against brokerage firms that may have harmed investors by trading on knowledge of their plans to buy and sell stock.

"We're in the process of evaluating" some trades that raise questions about whether Wall Street firms used their knowledge of certain types of orders to make money at the expense of their customers, said Robert Marchman, executive vice president of market surveillance at the NYSE. He declined to name the firms, but said that some trades were "under review" for referral to the exchange's enforcement division. The exchange has looked at trading practices at more than 10 large Wall Street firms.

http://online.wsj.com/article/0,,SB112311938538904647,00.html?mod=home_whats_news_us

 

**** Online WSJ subscription required.

 

Thain, NYSE need to sell the ArcaEx deal to investors

NEW YORK (MarketWatch) -- The planned deal between the New York Stock Exchange and Archipelago Holdings will provide new market transparency and increased accountability for investors.

http://www.marketwatch.com/enf/rss.asp?guid=%7B1C816BE3-011B-4B7F-849E-6E089D38B4B7%7D&dist=rss&siteid=mktw

 

Exchange Sets Volume Records in Coal and e-miNYsm Crude Oil Futures

http://www.nymex.com/press_releas.aspx?id=pr20050803b

 

NYMEX Holdings, Inc., Appoints Two Board Members

http://www.nymex.com/press_releas.aspx?id=pr20050803c

 

New Seat Record At NYBOT

http://www.nybot.com/releases/pressRelease.asp?releaseID=904

 

NYBOT hosts Hershey

http://www.nybot.com/photoaugust2005/Hershey.htm

 

Starbucks Visits NYBOT

http://www.nybot.com/photoaugust2005/starbucks.htm

 

NYSE Composite Index Sets New Closing High

http://www.nyse.com/press/1123065685541.html

 

It is time for a transfer of power

By Andrew Parker in New York

Harvey Goldschmid cannot hide his disappointment that his pet project was never completed at the Securities and Exchange Commission. Mr Goldschmid, who resigned as one of the chief US financial regulator's five commissioners on Sunday, believes the single most important step to improving corporate governance in the US would be to give shareholders more powers to nominate directors at troubled companies.

http://news.ft.com/cms/s/56647142-0484-11da-a775-00000e2511c8.html

 

Severe Midwest Drought Hits Crops, Shipping

The worst drought across the central U.S. in 17 years is beginning to shrink potential harvests of corn and soybeans and slow commercial shipping on some of its busiest rivers. But so far, the economic fallout isn't as broad as in 1988.

http://online.wsj.com/article/0,,SB112311795718904597,00.html?mod=home%5Fpage%5Fone%5Fus

 

**** Online WSJ subscription required.

 

FFastFill And Trading Technologies Agree Partnership To Provide X Trader As A Service

http://www.exchange-handbook.co.uk/news_story.cfm?id=54325

 

FFastFill Reaches Agreement With TT

http://www.ffastfill.com/content/ir/rns2005/rns-04aug2005-ffastfill_reaches_agreement_with_tt.htm

 

TT Receives Another Consent Judgment

http://www.tradingtechnologies.com/documents/RTS%20Reaches%20Agreement%20with%20TT%208.4.05.pdf

 

Deutsche Boerse Net Profit Seen +61%

1024 GMT [Dow Jones] Deutsche Boerse (DB1.XE) is expected late Monday to post 2Q net profit of EUR109.2M, a 61% rise from EUR67.7M posted in the same period a year earlier, according to average of estimates from seven analysts.

http://www.newratings.com/analyst_news/article_953433.html

 

CBOT Reparat Sonitem

 

All quiet on the CBOT front.  Smoke em if you have em.

 

Environmental Trading News

 

Environmental damage on Earth seen from shuttle

HOUSTON (Reuters) - Commander Eileen Collins said astronauts on shuttle Discovery had seen widespread environmental destruction on Earth and warned on Thursday that greater care was needed to protect natural resources.

http://news.reuters.com/newsArticle.jhtml;jsessionid=UBMBUGLUNKGMYCRBAELCFEY?type=topNews&storyID=9275345

 

Green Mountain Power Trucks to Run on Green Fuel

COLCHESTER, Vt.--(BUSINESS WIRE)--Aug. 3, 2005--The next time you pass a Green Mountain Power linetruck on the highway, you may notice a slight smell of French fries. That's because Green Mountain Power's fleet of linetrucks will begin using biodiesel fuel, an alternative fuel made from animal fat and vegetable oil, primarily soybean, as a result of a new fuel arrangement with Champlain Oil Company.

http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20050803005711&newsLang=en

 

Central Vermont Public Service joins Chicago Climate Exchange

Central Vermont Public Service, the state's largest electric utility, has signed up with the Chicago Climate Exchange, a voluntary, legally binding greenhouse gas emissions reduction and trading program, the utility said Tuesday.

http://www.burlingtonfreepress.com/apps/pbcs.dll/article?AID=/20050803/BUSINESS/508030301/1003/NEWS05

 

CVPS joins national greenhouse gas reduction program

http://rutlandherald.com/apps/pbcs.dll/article?AID=/20050803/NEWS/508030319/1011

 

TFS brokers first Nymex emissions contract

New York • 3 August 2005 • Global broker Tradition Financial Services (TFS) has brokered the first transaction on the New York Mercantile Exchange (Nymex) emissions futures contract.

http://db.riskwaters.com/public/showPage.html?page=289860

 

Exchange & ECN News

 

UK regulator grants BSX ‘very important’ designation

http://www.theroyalgazette.com/apps/pbcs.dll/article?AID=/20050802/BUSINESS/108020109

 

CBOT Commends the U.S. Treasury Department's Decision to Resume Issuance of 30-Year Bond

The following is a statement from CBOT Chairman Carey regarding today's announcement by the U.S. Treasury Department.

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1036+29729,00.html

 

CBOT Strike Price Notice August 4, 2005

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1032+29751,00.html

 

Average Pricing System

http://www.cme.com/clearing/clr/clradv/14619.html

 

Deutsche Bank Securities Inc. Connects to WCE Markets

http://www.wce.ca/wnew/newsreleases/2005/pr-08-03-05.asp

 

NASDAQ Announces Market Statistics for the First Six Months of 2005

http://www.nasdaq.com/newsroom/news/pr2005/ne_section05_075.stm

 

Toronto Stock Exchange Statistics - July 2005

http://www.exchange-handbook.co.uk/news_story.cfm?id=54322

 

Tokyo Stock Exchange Derivatives Market Highlights

http://www.exchange-handbook.co.uk/news_story.cfm?id=54316

 

The Options Industry Council Announces Continued Double-Digit Growth as July Trading Volume Increased 21.7%

http://www.888options.com/news/news_archives_05/aug_2.jsp

 

Filings by Designated Contract Markets (DCMS) Current Month
Date of Letter	Date Filed	DCM	Description
08/03/2005	08/03/2005	NYMEX	COMEX Rule 104.36 Effective August 8, 2005, the amendment to COMEX Rule 104.36, Exchanges for Physicals, and the accompanying commentary to the Rule, prohibits EFPs made "in connection with" offsetting physical transactions during RTH.
08/03/2005	08/03/2005	NYMEX	Exchange Rule 3.10 Effective September 1, 2005, the amendments increase the number of Public Committee Members serving on the Adjudication Committees form one to two, per panel, and that two Public Committee Members would be required to be in attendance to constitute a quorum.
08/02/2005	08/02/2005	CME	585. GLOBEX® Call Market Trading Algorithm (1) Technical amendments to GLOBEX Call Market Trading Algorithm rules requiring the issuance of "Request for Quote" in certain situations and (2) Eurodollar Options trading pursuant to Rule 585 to be integrated into regular GLOBEX network.
08/02/2005	08/03/2005	CFE	CFE Rules 1602(d) and 2002(d). Revises the position limits for CFE's Mini-Russell 1000 Index and Russell 1000 Index futures contracts.
08/02/2005	08/03/2005	CFE	CFE Policy and Procedure III. Revises CFE's error trade policy.
08/01/2005	08/01/2005	NYMEX	Listing of Additional Strike Prices for the Silver, Copper, Crude Oil, Natural Gas, Heating Oil, Unleaded Gasoline and Related Calendar Spread Option Contracts.
08/01/2005	08/01/2005	CME	Rule 230.j., Rule 552.B. and Rule 912 CME made rule changes relating to its Board of Director's rule and clearing member approval practices.

 

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/dig080305.txt

 

Registration Advisory - Fingerprinting

http://www.nfa.futures.org/registration/072905.asp

 

CFTC Revokes Registration of Palomino Capital Management, A Commodity Pool Operator in Pittsburgh, Pennsylvania

http://www.cftc.gov/opa/enf05/opa5106-05.htm

 

Christopher Cox Sworn in as SEC Chairman

http://www.sec.gov/news/press/2005-107.htm

 

OCC Permits Hedging Equity Derivatives with Unmatching Baskets

The OCC issued an interpretive letter ("Letter 1033") permitting a national bank to hedge an equity index derivative by holding a basket of securities that do not perfectly match the derivative. The bank asserted that matching the index perfectly would have been unnecessarily costly (particularly for smaller holdings) and also would not have allowed the bank to take full advantage of the dividends received deduction under IRS rules. The bank projected that the hedge will result in a less that 1% tracking error, based on several probability scenarios, although the bank will hold less that 70% of the securities in the index. After reciting the requirements that the OCC imposes in connection with any equity derivative hedging program, Letter 1033 states that the extent of the mismatch in this case (i.e., less than 1%) was so slight as to fall within the existing authority.

http://www.mondaq.com/article.asp?articleid=34123&lastestnews=1

 

Managed Futures - Managed Funds

 

Yuan may not be so lucrative for hedge funds

http://news.reuters.com/newsArticle.jhtml;jsessionid=UBMBUGLUNKGMYCRBAELCFEY?type=reutersEdge&storyID=9259722

 

Altegris Investments Announces Senior Alternative Investment Consultant Hire

LA JOLLA, CA (PRWEB) August 3, 2005 -- Altegris Investments Inc. is pleased to announce that Michael Stendler has joined the firm as a Senior Alternative Investment Consultant. Mr. Stendler was previously Managing Director of the Barrington, Illinois-based Meyer Capital Management - a $250 million Commodity Trading Advisor. Prior to this, he served as a Senior Consultant for Simms Capital

http://news.yahoo.com/news?tmpl=story&u=/prweb/20050803/bs_prweb/prweb268166_1

 

Newsletter editor says 'buy the manager, not the fund'

SAN FRANCISCO (MarketWatch) -- Jim Lowell, editor of both the Fidelity Investor and ETF Trader newsletters, says investors considering actively managed mutual funds should "buy the manager, not the fund."

http://www.marketwatch.com/enf/rss.asp?guid=%7B48EE1D4B-7C4D-426A-8BF1-36B09ED39B95%7D&dist=rss&siteid=mktw

 

Chief executives' pay rises to £2.5m average

Directors' pay at Britain's top companies climbed an average of 16.1% last year - four times faster than average earnings and eight times the rate of inflation.....The Guardian survey also shows that the best-paid employees are at Man Group. Staff at the City-based hedge fund manager last year earned an average of £115,000 each.

http://www.guardian.co.uk/business/story/0,3604,1542254,00.html?gusrc=rss

 

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

 

FX deals expected to surge online 

By Jennifer Hughes in New York

The involvement of inter-bank currency trading systems with non-bank market participants could spur massive growth in...

http://news.ft.com/cms/s/56f8aefc-0484-11da-a775-00000e2511c8.html

 

30-year bond is given new life

http://www.chicagotribune.com/business/chi-0508040035aug04,1,1705916.story?coll=chi-business-hed

 

Traders welcome back long bond

BY DAVID ROEDER Business Reporter 

In a move that won wide acclaim from money managers and traders on La Salle Street, the Bush administration said Wednesday it will resume issuing 30-year Treasury debt, the so-called long bond that had long tenure as the benchmark for U.S. interest rates.

http://www.suntimes.com/output/business/cst-fin-bond04.html

 

DTCC to extend its electronic trading

By Richard Beales in New York

The Depository Trust & Clearing Corporation is extending its automated trade processing system for credit derivatives to deal with interest rate products and equity derivatives.

http://news.ft.com/cms/s/06eacfbc-0484-11da-a775-00000e2511c8.html

 

DTCC Expands Deriv/SERV Platform To Support Interest Rate Swaps and Swaptions, Equity and Variance Swaps

The Depository Trust & Clearing Corporation announced today its Deriv/SERV platform was once again expanding to provide automated matching and confirmation services for interest rate swaps and swaptions, equity swaps and variance swaps.

http://biz.yahoo.com/bw/050804/45499.html?.v=1

 

INTERVIEW: UBS Australia Ready For Asian Business Surge

http://sg.biz.yahoo.com/050804/15/3tzhc.html

 

Commentary - Skills for Risk Management

http://www.garp.com/risknews/newsfeed.asp?Category=6&MyFile=2005-08-04-11259.html

 

Market Risk - 30yr Bond is Back

http://www.garp.com/risknews/newsfeed.asp?Category=6&MyFile=2005-08-04-11256.html

 

Michael K. Dundon joins The Clearing Corporation as Vice President, Risk Management

http://www.clearingcorp.com/press/pressreleases/050803mdundon.html#P1_0

 

John's Comments

 

Jen Justice Band back at Rivers, Friday, August 12, 5-8 PM

There will be new songs and surprises…

www.jenjustice.com

 

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Sign the petition and make a difference!  

 

Sign this petition. By doing so, you'll ensure that women who are diagnosed with breast cancer won't have to worry about being forced out of the hospital after undergoing a mastectomy! The Breast Cancer Patient Protection Act of 2005 will guarantee that women and their physicians, not insurance companies, will decide when they are ready to go home. So voice your support now — with your signature. Lifetime will deliver your signature, along with the millions of others, to Congress. Please add your name to the list to help get this legislation passed.

http://www.lifetimetv.com/reallife/bc/pledges/bc_mast_pledge.html

 

***** I received so many positive comments thanking me for running this petition, I am running it again today.

 

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Press Navigator Mentions Newsletter Message Board/Blog

 

Lothian Newsletter Launches Message Board

John Lothian & Company, the business that publishes a daily e-mail for derivatives market participants, has launched a message board where readers can comment about articles and issues covered in the e-newsletter.

 

Press Navigator

973-590-5155

info@pressnavigator.com

www.PressNavigator.com

1917 Route 10 East, Suite 111

Parsippany, NJ 07054

 

**** The John Lothian Newsletter Blog requires registration to participate, but not to view.  To register, go to www.johnlothiannewsletter.com.  Registration is free until September 1, when going forward it will only be available to paid subscribers to the John Lothian Newsletter.  The John Lothian Newsletter is offered on a voluntary pay basis for $95 per year.  Details for paying for the newsletter are available at www.johnlothiannewsletter.com.

 

 

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Help Wanted

 

Alex McCallum of MarketForum ( www.marketforum.com) is looking for an advertising rep. to take responsibility for selling ads on his futures & options message board which draws 60,000 visits a month.  Posters and readers are chiefly retail.  Brokerage firms are primary target market. Generous commission rate.  If youre interested, please contact McCallum, a former CME PR director (1979-82), at (603) 778-8179 or alex@marketforum.com.

 

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Brent Crude Watch

 

IPE Brent Volume: 138,854

NYMEX Brent Crude Volume: 2509

NYMEX Percent of Total Volume: 1.77%

 

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The Financial Bookshop Top 20

The Financial Bookshop is the unique specialist vendor of financial books situated in the heart of the City of London’s financial community.

http://www.thefinancialbookshop.com/

 

***** Coming soon, the Financial Bookshop book of the week.

 

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Chicago Electronic Trading Scorecard for August 3, 2005

 

Percent Electronic

 

CBOT: 62.87%

CME: 67.68%

CME Eurodollars: 77.94%

CME Live Cattle: 1.54%

CME Currency Products: 82.60%

CBOT Soybeans: 4.99%

 

CBOT Options: 10.99%

CME Options: 4.33%

 

Volume 

 

OneChicago Volume: 9753

Eurex US Volume: 2627

Euronext.liffe Eurodollar Volume: 5722

CBOE Futures Exchange Volume: 253

 

Market Share

 

CBOT 100 oz. Gold Volume: 1329

NYMEX 100 oz. Gold Volume: 69,995

CBOT Share: 1.68%

 

CBOT 5000 oz. Silver Volume: 183

NYMEX 5000 oz. Silver Volume: 13,255

CBOT Share: 1.36%

 

CBOT Mini Gold Volume: 1329

CBOT Mini Silver Volume: 421

 

Notes: OneChicago set another exchange wide open interest record yesterday and its open interest now stands at 1,128,992 contracts.

 

Liffe Eurodollar Over-Under

 

Liffe/Globex: .73%

Liffe/CME: .57%

 

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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