Rick Lane Q&A: How Trading Technologies plans to revolutionize trading
Rick Lane has been looking into the future for some time now. The former co-founder of Tickit Trading, which was acquired by Trading Technologies in 2010, has quickly risen from chief technology officer in April 2012 to the new CEO of TT.
As CTO, he’s also been busy overseeing a major rebuilding of TT’s technology, which is soon to be unveiled. Now he now succeeds industry legend Harris Brumfield, who has run the company for the past 11 years. Brumfield will take on the role of chairman of TT.
John Lothian News editor-in-chief Jim Kharouf spoke with Lane on Thursday about the new post, what he brings to the top post at TT and where the firm is going next.
MarketsWiki Education Website Launched
John Lothian News is pleased to announce the launch of the MarketsWiki Education microsite (education.marketswiki.com), which will be the home to announcements and information about John Lothian News educational events and videos from the same.
The inaugural entry on the site is a video from last July’s MarketsWiki – World of Opportunity Intern Education Series featuring the new CEO of Trading Technologies, Rick Lane. Lane was among 31 speakers at last summer’s educational series held at the CME and CBOE in Chicago.
We also have launched a private LinkedIn group called MarketsWiki Education, where we will interact with the participants of our events and post event videos and other career related information. Participants in JLN’s education programs are eligible to participate in the MarketsWiki Scholars program, which offers contests and rewards for editorial contributions to MarketsWiki. We will be announcing additional plans for the scholars program.
We have been asked by our readers and sponsors to do more in the field of education. This is one of our key initiatives in that regard, aimed at students and young professionals seeking knowledge and information about the financial services industry and markets and the opportunities in them.
Full Steam Ahead: Rule Financial’s Emily Cates discusses EMIR Implementation
Doug Ashburn, John Lothian News
Emily Cates is a specialist in operational processing at Rule Financial, a London-based IT consulting firm specializing in global financial markets. In January 2014, Rule Financial released a white paper written by Cates and her colleague Amrik Chawla on the progress of the European Market Infrastructure Regulation (EMIR), which came into force in 2013. Cates spoke with John Lothian News editor-at-large Doug Ashburn on the status of EMIR implementation, how it compares with U.S. rules, and the challenges that lie ahead.
|NYSE Liffe US MSCI Index Futures off to a strong start in 2014
MSCI futures listed on NYSE Liffe US broke many new volume and Open Interest records during 2013, with notional average daily turnover in excess of $1.9B. The growth story just keeps getting better, with January 2014 total volume up 90% year-over year.
For more information on our leading international equity futures benchmark contracts please contact NYSE Liffe US: firstname.lastname@example.org.
Singapore to introduce new trading rules
Jeremy Grant in Singapore – FT.com
Singapore is set to introduce sweeping changes to its equities markets in a package of actual and proposed measures aimed at cleaning up trading practices in the wake of an embarrassing “penny stocks crash” last year.
***** They are finally getting rid of the “no chewing gum while trading equities” rule.
Use of Futures Markets Algorithms with Greater Sophistication Rapidly Shifting into High Gear, Says TABB Group
As futures commission merchants (FCMs) continue to build out their electronic offerings for hedge funds and long-only asset managers in the U.S., TABB Group expects algorithmic trading in futures markets to continue expanding faster over the next two years, with a 96% compound annual growth rate (CAGR) from 2011 to 2015.
***** You are either a shark or shark bait. It is better to be a shark.
JPM’s Masters Joins CFTC Panel
Andrew Ackerman – MoneyBeat – WSJ
Blythe Masters, J.P. Morgan Chase & Co.’s commodities chief, has joined an advisory committee of the Commodity Futures Trading Commission, the agency said Thursday.
***** The conspiracy theorists in the metals markets will have fun with this.
CME Beef Industry Scholarship Celebrates 25 Years with 25 Scholarships
For cattlemen and women, investing in the future and ensuring the next generation has the skills and knowledge to lead the industry is of paramount importance. We’re proud to have partnered with the CME Group in this effort for what will be our 25th year through the CME Beef Industry Scholarship.
***** Did you ever notice that it is cattlemen and cattlewomen. No one ever goes as a pigman or pigwomen. They are Pork Producers.
FCStone brokerage boss quits amid stress from regulations -CEO
The head of INTL FCStone Inc‘s futures brokerage has resigned because the stress from new regulations and difficult market conditions became too intense, the chief executive of the broker’s parent company said on Thursday.
***** Pete Nessler replaced longtime FC Stone CEO Pete Anderson. Nessler was a top salesman at the firm before taking over, according to sources.
MarketsWiki Page of the Day
MarketsWiki Recent Updates
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CME Is ‘On Track’ With Aluminum Contract as Premium Trade Surges
Agnieszka Troszkiewicz and Maria Kolesnikova – Bloomberg
CME Group Inc., the world’s largest futures exchange, is “on track” to start a physically settled aluminum futures contract and is considering introducing other metals products.
Exchanges Spar Over Data System
Bradley Hope – WSJ.com
U.S. exchanges are at loggerheads over the maintenance of a critical piece of market infrastructure. At the heart of the dispute is a Securities Information Processor, or SIP, a system that consolidates quote and trade data for U.S. stocks.
Eurex rejects calls to void DAX futures trade after halt
Europe’s leading derivatives exchange rejected requests to void trades made during an abnormal plunge in German equity futures shortly after the European Central Bank announced its latest rate decision.
Cash equities clearing house EuroCCP loses market share
Philip Stafford – FT.com
EuroCCP, Europe’s largest cash equities clearing house, has lost market share in the past year as competition and structural change continued to overhaul the market.
Ex-SAC Trader Convicted of Securities Fraud
ALEXANDRA STEVENSON and MATTHEW GOLDSTEIN – NYTimes.com
Mathew Martoma had been on his way to being another American success story. Today, he is the eighth person who once worked for the hedge fund titan Steven A. Cohen to be convicted of insider trading.
Preet Bharara: Now 79 for 79 on Insider-Trading Cases
Maureen Farrell – MoneyBeat – WSJ
Steven A. Cohen might be getting worried now. Following a jury’s conviction Thursday of former SAC portfolio manager Mathew Martoma, Wall Street’s top prosecutor Preet Bharara is 79 for 79 on insider trading cases during his tenure as U.S. attorney for the Southern District of New York.
German court refers ECB bond-buying programme to European justice
Germany’s constitutional court has referred its complaint over the European Central Bank’s pledge to buy government bonds in unlimited amounts to the European Court of Justice, an unprecedented move that is likely to be seen as a victory for the eurozone’s central bank.
Speed Traders Get an Edge
Scott Patterson – WSJ.com
High-frequency traders have been paying to get direct access to market-moving news releases, a practice that can give firms the ability to trade fractions of a second ahead of less fleet-footed investors.
ECB to gain far-reaching powers as euro zone banks’ supervisor
The European Central Bank will attain significant powers over the euro zone’s commercial banks once it becomes their supervisor later this year, including withdrawing bank licences and assessing acquisitions, it said on Friday.
CFTC’s Division of Clearing and Risk Issues No-Action Letter for ASX Clear (Futures) Pty Limited
The U.S. Commodity Futures Trading Commission’s Division of Clearing and Risk today issued a time-limited no-action letter stating that DCR will not recommend that the Commission take enforcement action against the Australian-based clearing organization, ASX Clear (Futures) Pty Limited, for failing to register as a derivatives clearing organization under Section 5b(a) of the Commodity Exchange Act.
FCA calls on ex-Goldman Sachs MD James Kelly
Vivek Ahuja – Financial News
The Financial Conduct Authority has recruited a former UBS and Goldman Sachs managing director with nearly 30 years of banking experience as a part-time adviser – an unusual move for the UK regulator.
Regulators must improve data sharing against corruption, conference hears
Charlotte Sterland – Risk.net
Better data sharing will speed up corruption investigations, delegates at the Combatting Global Corruption conference in London heard this week.
Regulators “don’t give a damn” about Volcker impact, claim Republicans
Peter Madigan – Risk magazine
US regulators did not conduct a formal cost-benefit analysis in considering the Volcker rule, the chairman of the Securities and Exchange Commission admitted yesterday, arguing the proprietary trading ban was promulgated under a statute that did not require an analysis of its impact.
BATS Global Markets, FINRA Enter Regulatory Service Agreement
BATS Global Markets, Inc. has signed an agreement with the Financial Industry Regulatory Authority, the independent, non-governmental regulator for all securities firms doing business with the public in the United States, to provide cross-market surveillance services to BATS’ four stock exchanges- BZX, BYX, EDGX and EDGA, along with certain other regulatory services.
Remarks by Richard Ketchum From the NACUBO 2014 Endowment and Debt Management Forum
Exchanges & Trading Facilities
Borsa Italiana Monthly Update – January 2014
Vienna Stock Exchange Monthly Statistics: Derivative Market – January 2014
Vienna Stock Exchange Monthly Statistics – January 2014
[SIX] Training for traders 2014: successful start
After the first editions in Zurich, the first training for traders of the current year in Geneva took place yesterday.
London Stock Exchange Welcomes China’s GF Financial Markets As Newest Member
Warsaw Stock Exchange: Treasury BondSpot Poland: An Electronic Market In Treasury Securities – Treasury BondSpot Poland Has Been Selected As The Electronic Market In Treasury Securities From 1 October 2014 To 30 September 2016.
HKEx Monthly Market Highlights – January 2014
Warsaw Stock Exchange: Treasury BondSpot Poland: An Electronic Market In Treasury Securities
Treasury BondSpot Poland Has Been Selected As The Electronic Market In Treasury Securities From 1 October 2014 To 30 September 2016.
Hedge Funds & Managed Futures
Buffett’s Index Fund Bet is Sitting Pretty
Cullen Roche | PRAGMATIC CAPITALISM
In 2008 Warren Buffett made a bet against hedge fund Protégé Partners. The bet was fairly simple. Protégé Partners could pick a group of hedge funds to perform against a simple S&P 500 index fund over the course of 10 years. Buffett bet $1 million that they couldn’t outperform the simple index.
Germany’s investors look to balance out their portfolios
Joe McGrath – Financial News
German investors are traditionally cautious, investing 56% of their assets in bonds at the end of 2011, compared with 38% in the UK, according to the European Fund & Asset Management Association. The difference in asset allocation is stark when you look at investment in equities. In the UK, investors allocated 42% to equities in 2011 compared with just 15% in Germany.
K.K.R. Profit More Than Doubled in Fourth Quarter
WILLIAM ALDEN – NYTimes.com
Kohlberg Kravis Roberts said on Thursday that its fourth-quarter earnings more than doubled, as rising markets helped deliver big gains on its investments.
Banks & Brokers
State Regulator Halts Deal Between Wells Fargo and Loan Servicer
MICHAEL CORKERY – NYTimes.com
A New York State regulator has dealt a blow to Ocwen Financial by halting the transfer of about $39 billion in servicing rights to the company from Wells Fargo.
Friday Banks chart, Sweden is the next Australia
Dan McCrum | FT Alphaville
Picture a kangaroo in a sauna, its pouch stuffed with cash. The Aussie banks are where you go for bank dividends, paying out practically all their earnings in durable swimable plastic cash.
Clearing & Settlement
ISDA Launches SwapsInfo Website
The International Swaps and Derivatives Association, Inc. (ISDA) today announced the launch of ISDA SwapsInfo, which aims to enhance transparency in the over-the-counter (OTC) derivatives markets by pulling together in one place a wealth of publicly available data on interest rate derivatives (IRD) and credit default swaps (CDS). The data is available in a consistent format and the resulting consolidated time series are easy to download and analyze.
ICE Clear Europe – NYSE Liffe Post-Trade & Clearing Systems Migration
Oslo to offer clearing choice from next month
Anish Puaar – Financial News
Oslo Børs, the domestic Norwegian stock exchange, is moving ahead with long running plans to offer a choice of clearing house, a move that will make it one of few European exchanges to offer such a service.
US Bank Branches Able To Use ASX OTC Derivatives Clearing Service
Indexes & Products
MarketAxess Launches New Index for European Corporate Bond Market Liquidity
MarketAxess Holdings Inc the operator of a leading electronic trading platform for fixed-income securities, and the provider of market data and post-trade services for the global fixed-income markets, today launched a new liquidity index for the European corporate bond market. The European Bid-Ask Spread Index is the first detailed analysis of European bond prices over time and serves as a broad indicator of market liquidity and implied transaction costs.
Nikkei 400 index to become Japan equity derivative benchmark
Cash business likely to stay with Nikkei 225 but derivative trades will shift
With Quant Tools in Demand, Bloomberg Licenses OneMarketData’s CEP Engine
Ivy Schmerken – Wall Street & Technology
Bloomberg will develop real-time intraday analytics for clients of EMSX to perform transaction cost analysis and analyze trading venues.
Ex-Brokerage Executives Charged With Fraud
WILLIAM ALDEN and JAMES C. MCKINLEYJR. – NYTimes.com
The owner and two executives of the WJB Capital Group were arrested on Thursday and charged with defrauding at least 15 investors out of more than $11 million during the waning days of their now-defunct brokerage company.
Past Fictions, a Lack of Trust and No Deal in SAC Case
JAMES B. STEWART – NYTimes.com
The guilty verdict on Thursday against the former SAC trader Mathew Martoma only deepens a mystery about the case: Given the overwhelming evidence against him, why did he fight the charges of insider trading, risking a lengthy prison term, rather than make a deal with the government to cooperate in return for leniency?
BCSC alleges illegal distribution against five B.C. residents in notice of hearing and temporary order
Environmental & Energy
Fast-Track EU Carbon Fix Gets Approval From EU Parliament
The European Parliament agreed to speed up the approval of a carbon-market rescue plan, enabling an intervention aimed at bolstering prices to begin as soon as this quarter.
Ex-Barclays Carbon Chief Trades From Home as Prices Surge
Louis Redshaw, the former head of carbon trading at Barclays Plc (BARC), returned to the market amid a jump in permit prices since he left the bank in April.
Chinese Factories Are Ordered to Release Data on Real-Time Emissions Levels
In a surprising sign of progress for both the environment and information transparency in China, the central government in January ordered 15,000 large and small factories to make real-time data about air and water pollution public.
China returns to hunt for African mine assets
Andrew England and Javier Blas in Cape Town – FT.com
China is making a return to African mining after a hiatus of nearly two years – seeking out new copper, iron ore and uranium deposits in a sign that Beijing is still a keen investor in the continent’s industry.
Monetary Authority of Singapore (MAS) And SGX Propose Measures To Strengthen The Securities Market
The Monetary Authority of Singapore (MAS) and Singapore Exchange (SGX) today released a joint consultation paper setting out proposals to strengthen the securities market in Singapore.
SKOFX Launches Corn Futures Contract
SKOFX announced that they have signed an agreement to license benchmark corn futures settlement prices and to create a new SKOFX cash-settled corn futures contract.
SGX To Revise Fees For Securities Market
HKEx: Changes of Designated Securities for Short Selling
HKEx: Changes Of Designated Securities For Short Selling
Dalian Commodity Exchange: Solid Foundation For Successful Operation Of Domestic PP Futures
Commodity futures regulator to allow trading by bourse shareholders
The commodity derivatives market regulator, Forward Markets Commission (FMC), is in the process of relaxing curbs to help brokers with a small shareholding in an exchange to start trading on it.
Nepse to adopt fully automated trade platform
The Nepal Stock Exchange (Nepse) has begun upgrading its share trading system to facilitate growth and development of the securities markets by installing a complete automation platform. Nepse said it had targeted having an entirely online trading system by the next fiscal year.
BlackRock Lays Out the Truth About Emerging Markets
Sarah Krouse – MoneyBeat – WSJ
BlackRock is laying down some emerging market truths. After emerging market equity exchange-traded products posted their highest monthly outflows on record in January – nearly $10 billion – the world’s largest fund manager took a moment to remind investors about a few realities of investing in developing markets.
U.S. trade bank launches operations in Myanmar
The Export-Import Bank of the United States said it launched operations in Myanmar on Thursday, a move to support U.S. exporters against competitors and help reintegrate the country into the world economy.
MCX Weekly Market Report January 31, 2014 – February 06, 2014
Malawi Stock Exchange Weekly Trading Report – 07 February, 2014