What little action remains on CME Group’s downtown trading floor emanates mainly from one corner: the eurodollar options pit.
By Lynne Marek, Crain’s Chicago Business
The trading floor, with 35 pits covering nearly 2 acres, once was the heart of the world’s futures market, with screaming, gesticulating traders setting prices for everything from cattle to soybeans to interest rates. But now about 90 percent of CME’s volume trades on the company’s electronic platform, leaving many pits quiet and rows of desks around them sitting empty.
***** Another attempt to put the final stake in the CME trading floor.
Can CME Keep Up Trading Momentum?
Trefis Team, Forbes
In its recent earnings, CME Group witnessed 7% annual growth in clearing and transaction fee revenues, with trading activity rising for interest rate and foreign exchange derivatives during the quarter. Keeping up the trend of the quarter ending September, trading activity rose significantly in October (both sequentially and year-on-year). Average daily trade volumes rose to a record 17.6 million contracts a day in October – 60% higher than the year-ago period. It was also the fourth consecutive quarter of y-o-y growth in trading volume. The last time CME witnessed four consecutive quarters of growth in trade volumes was back in April 2011, with an aggregate 15% rise in trading volumes in that period. Comparatively, CME’s derivative trading volumes have risen by 24% in the four-month period ending October. Given the current trading environment, trading activity could remain healthy through the end of the year, giving the global exchange operator the longest period of sustained growth in the last five years.
***** Yes, yes and yes.
How Russia outmanoeuvred the west in Ukrainian finance
John Dizard marvels at how Russia outmanoeuvred the west in Ukrainian finance
***** This is something to pay attention to. War is being waged in the financial and commodity markets.
We just clicked: John Rizzo brings photography skills globally
Photography is the art of capturing a moment.
John Rizzo has been doing just that for years as the photographer for the FIA Expo events in Chicago. He spoke with John Lothian at Expo about how he learned photography as well as about his photo tours to Africa and Asia. Rizzo has taken photographers of all skill levels to exotic locales such as Tanzania, Ethiopia, Myanmar, Laos and Cambodia to teach individuals about culture and skill of taking a great photo.
A photojournalist who has worked with Newsweek, LA Times, Washington Post and the FIA Magazine and its conferences for years, Rizzo says he’s learned the art of photography. Rizzo said cameras today are better than ever, and take great shots. The problem, he says, is that most people don’t know how to do that.
Rouble suffers worst fall since 1998 crisis
Kathrin Hille in Moscow and Delphine Strauss in London, FT
The rouble nosedived on Monday, suffering its worst daily fall since Russia’s 1998 crisis amid renewed fears over the impact of tumbling oil prices on the country’s economy.
***** The key victory in the U.S. Civil war was an economic one, when the North stopped the South from exporting cotton, thus devaluing the value of their cotton backed bonds. There is victory on the field of battle, but there is also victory on the economic field. Always follow the money.
Oil at $40 Possible as Market Transforms From Caracas to Tehran
By Gregory Viscusi, Tara Patel and Simon Kennedy, Bloomberg
Oil’s decline is proving to be the worst since the collapse of the financial system in 2008 and threatening to have the same global impact of falling prices three decades ago that led to the Mexican debt crisis and the end of the Soviet Union.
***** I remember when oil went down to $10 a barrel in one military/economic battle. Follow the money.
Notice of Disciplinary Action: Igor Oystacher, Rule Violations: Rule 432. General Offenses
Pursuant to an offer of settlement in which Igor Oystacher (“Oystacher”) neither admitted nor denied the rule violations or related findings upon which the penalty is based, on November 25, 2014, a Panel of the COMEX Business Conduct Committee (“Panel”) found that Oystacher is subject to the jurisdiction of the Exchange pursuant to Rules 400 and 402 as the conduct at issue occurred while he was a member of the Exchange.
The Panel also made the following findings: (1) on several dates between May and July 2011, Oystacher entered bids and offers in Silver, Gold and Copper futures contracts in such a manner so as not to have the requisite intent to trade at the time of order entry.
PENALTY: In accordance with the offer of settlement, the Panel:
1. fined Oystacher $150,000 in connection with this case and companion case NYMEX 10-07963 ($50,000 of which is allocated to COMEX); and
2. ordered Oystacher to serve a one month bar from: membership privileges on any CME Group Inc. exchange; access to all CME Group Inc. trading floors; and direct and indirect access to all electronic trading and clearing platforms owned or controlled by CME Group Inc., including CME Globex. The suspension shall run from November 28, 2014, through and including December 28, 2014.
***** Mr Oystacher has long been the subject of discussion in the industry about certain trading techniques he may have been employing.
How Are You Adapting to the New OTC Regulatory Landscape?
This Thursday, December 4, PRMIA Chicago will host a lunch and discussion at CME Group’s Executive Conference Center, which will look at the challenges in trade reporting, reconciliation and margin as a result of global regulatory changes. Hear presentations from the experts at CME Group and TriOptima in a panel moderated by John Lothian News’ Doug Ashburn. The event is free for market participants, but space is limited.
***DA: I hear there are a few spots left. Lunch will be served. And I am moderating. And lunch will be served.
Swiss Say Foreign Millionaires Still Welcome After Vote
By Giles Broom, Bloomberg
Swiss voters refused to give up a 152-year-old tax break for rich foreigners in Geneva and other wealthy areas that the government says helps the economy.
***** And the rest of us?
Gold Hidden in Underwear Shows How India Curbs Distort Rupee
Traveling by land into India from Pakistan across one of the world’s most militarized borders isn’t easy on a normal day. Doing so with $120,000 worth of gold stuffed in your underwear is even harder.
***** I believe this is in the plot
to Goldmember II.
Stefani Sandow, product manager, Trading Technologies – What Vitruvius Can Teach Us About Software Development
“If you’re interested in getting into financial software, you should remember Vitruvius. You should create software that is solid, that is useful, that is delightful.”
Stefani Sandow, product manager at Trading Technologies, shows the relationship between the Roman architect Vitruvius and software development. She discusses three key concepts of Vitruvius’s teachings, Firmitas, Utilitas and Venustas, which translates to Solid, Useful and Delightful. Sandow stresses the importance of the user experience and how developers should be paying close attention to the design and interface of the software as well as its functionality. Finally, Sandow concludes by discussing the future of trading software design and function.
89th Annual Mid-Winter Meeting
January 14-16, 2014
Hilton Chicago | 720 S. Michigan Avenue
To register, go to: http://jlne.ws/1tDzuI8
***** Look for more details on this soon.
| Barchart’s Cloud-Based Financial Technology Solutions
Cloud computing is changing the way Exchanges, Brokerages, Trading and Technology firms do business. IT infrastructure has become instantly scalable, enormously powerful, flexible and cheaper. Businesses need solutions for Enterprise Data Management (EDM) and Big Data. The largest cloud infrastructure provider is Amazon Web Services (AWS) and as an Amazon Technology Partner, Barchart provides solutions which leverage this infrastructure, including: processing and redistributing real-time market data; managing extensive sets of historical data; serving millions of pages hosting financial content and tools; and, deploying state-of-the-art trading software.
Our cloud supported solutions include Data Feeds, Trading Software (Barchart Trader), Website Content Solutions and our flagship cloud service Barchart OnDemand, which is a solution within AWS that brings cloud infrastructure to financial and technology firms. Barchart OnDemand offers an extensive collection of web services APIs containing everything from global futures and equity pricing to reference and fundamental data to news and weather.
Additionally, Barchart’s cloud-based infrastructure and applications are being used by businesses as their own for EDM and Big Data solutions. Whether as a Data Warehouse, a Distribution Platform or for End-User Solutions like APIs, Analytics and Software.
WATCH OUR VIDEO to learn more.
Eric Litvack Appointed Chairman of International Swaps and Derivatives Association
ISDA via Business Wire
The International Swaps and Derivatives Association, Inc. (ISDA) today announced that its Board of Directors has elected Eric Litvack as its new Chairman. The appointment is effective from January 1, 2015.
Deutsche Börse strengthens risk management with Xetra Release 15.0
Xetra/Börse Frankfurt: Deutsche Börse has introduced a further-developed version of its electronic trading system on Monday. With the new version Xetra Release 15.0, the Frankfurt Stock Exchange operator offers, above all, new risk management functions.
ICEX submits revival plan; Plans to raise Rs 140 cr to meet its working capital requirement to restart futures trading in commodities
Dilip Kumar Jha, Business Standard
To avoid de-recognition, the MMTC and Indiabulls’ promoted and R-ADAG-anchored Indian Commodity Exchange (ICEX) plans to raise Rs 140 crore to meet its working capital requirement to restart futures trading in commodities.
Swiss Voters Reject Measure Forcing SNB to Acquire More Gold
By Catherine Bosley, Bloomberg News
Swiss voters rejected a measure in a referendum requiring their central bank to hold a portion of its assets in gold, a measure its President Thomas Jordan termed an “invitation to speculators” that could have hurt the economy. Bullion tumbled to a three-week low.
Swiss Gold Rejection Deals Blow to Investors Hurt by Slump
As Switzerland rules out that its central bank will be the next big buyer of gold, sending prices to the lowest in more than three weeks, there’s one more reason for investors to be bearish.
DTCC Expands Global Derivatives Trade Reporting Footprint with Canadian Launch
DTCC provides trade reporting services in seven jurisdictions globally for all five OTC derivatives asset classes and also supports exchange-traded derivatives in Europe
New York, December 1, 2014 – The Depository Trust & Clearing Corporation (DTCC) continues to play a key role in mitigating systemic risk with the launch of its Global Trade Repository in Canada – the seventh jurisdiction where DTCC is enabling financial firms to meet new regulatory mandates requiring the reporting of over-the-counter (OTC) derivatives transactions.
FTT stalls on derivatives agreement
By Tim Cave, Financial News
The 11 European countries attempting to introduce a financial transactions tax in 2016 are still debating how the tax would apply to derivatives, raising doubts about an agreement on the levy as planned by the end of this year.
Six years on from the Lehman crisis, it’s time to rethink the bank levy
By James Quinn, Telegraph
The levy on Britain’s banks has lingered too long. It’s time for a risk adjustment.
?Regulation of Derivatives Trading Under the Proposed Canadian Cooperative Capital Markets Regulatory System
By Aaron Palmer and Gord McKenna, Blakes Bulletin – United States Release Guidance on Foreign Corrupt Practices Act
The federal government and the governments of British Columbia, New Brunswick, Ontario, Prince Edward Island and Saskatchewan (Participating Provinces) have signed a memorandum of agreement in respect of a proposed cooperative capital markets regulatory system (Cooperative System). As part of this Cooperative System, existing provincial securities and derivatives legislation will be replaced in the Participating Provinces with uniform provincial capital markets legislation, and complementary federal legislation will address matters within federal jurisdiction including the management of systemic risk in Canada’s financial system. For general background on these developments, please see our September 2014 Blakes Bulletin: Cooperative Capital Markets Regulatory System Agreement and Draft Legislation Released.
Senior UBS FX, Metals Traders Among 11 Said to Face Swiss Probe
By Suzi Ring, Liam Vaughan and Hugo Miller, Bloomberg News
UBS AG co-chief currency dealer Niall O’Riordan is one of 11 individuals the Swiss finance regulator has told are under investigation as part of its currency-rigging case, people with knowledge of…
Exchanges & Trading Facilities
TSX Venture Exchange Celebrates its 15th Anniversary
TMX Group today announced that TSX Venture Exchange (TSXV) is celebrating its 15th anniversary.
Settlements for 2014-11-28 Notification
As previously communicated, on Friday November 28, 2014, OneChicago received inaccurate closing prices from a file we receive from our vendors which we use to determine final settlement prices. Consequently, some of our products were settled at prices that did not accurately reflect current market levels. While this error was noticed after the cut off […]
Trading Corner – FX derivatives: hedging currency risks of an exporter
Futures and options contracts are cost-efficient trading tools. Thanks to their liquidity, ease of trading and low trading costs, futures are often the instrument of choice – whether for directional trades or for shifting portfolio allocations between asset classes, countries or regions. Options add versatility to the “toolbox”: They allow to fine-tune trading and hedging strategies, allowing them to tailor the strategy to the user’s specific requirements.
CNX Nifty Index Futures Price Limits Effective for December 2014
Addition of the CME Account Alias to Clearing Confirm Messages
In order to provide additional information to clearing firms, CME Clearing will be adding the CME Account Alias to the FIXML clearing confirm messages that firms receive from CME for any trade that originates in ClearPort. CME Clearing will release this functionality into production on January 9th, 2015. Please note that the functionality is currently available for testing in the New Release (UAT) environment.
MONTHLY TRADING STATEMENTS FOR BME MARKETS
THE SPANISH STOCK EXCHANGE TRADED EUR94.1 BILLION IN NOVEMBER, UP 40% FROM THE SAME PERIOD IN 2013
Hedge Funds & Managed Futures
Brevan Howard to close commodity fund due to poor performance
By Chiara Albanese, Giles Turner and Laurence Fletcher, WSJ
Brevan Howard Asset Management plans to close its commodity hedge fund following recent poor performance, according to two people familiar with the matter.
Starbucks goes into the precious metals business
By Charles Passy, MarketWatch
Forget the seasonal coffee drinks. Or the gift-worthy brewers. Starbucks’ newest item for the holidays is something seemingly mundane as a gift card. Well, make that a solid silver gift card.
Pimco suffers $100bn in redemptions from top funds
Stephen Foley in New York, FT
Pimco has accounted for half of the 10 funds with the biggest outflows so far this year – bleeding more than $100bn – as rivals snatched market share from the world’s largest bond manager while it struggled to contain management infighting.
Wealth Adviser: How Female Entrepreneurs Can Help the Practice
By Patrick Graham
Having female entrepreneurs as clients can benefit an advisory practice in more ways than one, says Arizona-based adviser Shanna Tingom, who adds that this is a group underserved by the industry. But one of the biggest benefits that comes with working with business-owning women, she says, “is that they’re great at giving and generating referrals.” Writing on Wealth Adviser at WSJ.com, Ms. Tingom points out that “they love to talk about businesses that are helping their business. It’s just the nature of who they are.”
Mirae man joins Hermes as Latin America head
Oliver Leyland has joined Hermes Investment Management as a Latin America specialist as the fund house expands its emerging markets team.
Banks & Brokers
Goldman searching for a private moment
By Jonathon Trugman, New York Post
Rumors were running rampant last week that Goldman Sachs may be looking for a little more privacy. The rumors — and they were just that, rumors — were that Goldman was tiring of the constant regulatory harassment and wished to return to its roots as a private partnership.
Walking out of a job? Not so fast
By Tim Cave, Financial News
On the evening of Thursday March 27 this year, Michael Rodgers walked into the office of Stephen Finegold, one of his seniors at interdealer broker Sunrise, and told him he “was leaving… and wanted to leave now”.
Banks tap into big data to trap wily traders
Tracy Alloway and Kara Scannell in New York, FT
Bankers beware – big data are watching you. A recent swath of trading scandals has spurred big banks to turn to new technology and data sources as they attempt to crackdown on illegal behaviour by their staff.
BGC Partners Agrees to Acquire Apartment Realty Advisors (ARA) and its members, the nation’s largest privately held, full-service investment brokerage network that focuses exclusively on the multi-housing industry
– The acquisitions will significantly drive Newmark Grubb Knight Frank’s (“NGKF”) growth within the multi-housing capital markets space –
– The acquired companies are expected to generate annual revenues in excess of $100 million and pre-tax distributable earnings in excess of $20 million –
PRNewswire/ — (NASDAQ: BGCP) (“,” “BGC,” or “the Company”), a leading global brokerage company servicing the financial and real estate markets, today announced that it has entered into agreements to acquire (“ARA”) and its members representing substantially all of ARA’s revenues.
NanoSpeed to Provide Ultra-Fast Risk Checks to LSE
By Marina Daras, Waters Technology
NanoSpeed has announced it is now providing high-speed connectivity to the London Stock Exchange (LSE) equities and equity derivative businesses through its Nano-Risk field-programmable gate array (FPGA).
Clearing & Settlement
Deutsche Bank and BayernLB execute first OTC trades on Bloomberg to clear at Eurex Clearing
Eurex Clearing: Deutsche Bank and BayernLB have executed the first trades on Bloomberg to be cleared via EurexOTC Clear for IRS. The ability to trade and automatically clear EurexOTC Clear for IRS deals makes the execution and processing of these trades significantly easier for Bloomberg users.
Cleartrade Exchange Acts As Exchange For All LCH.Clearnet Ltd Commodity Future Trades
Cleartrade Exchange (CLTX) the Singapore Regulated Futures Exchange, is delighted to announce that it will provide trade registration and execution services for the full suite of LCH.Clearnet Ltd (LCH) EnClear futures contracts. CLTX will be the only exchange to offer futures and options contracts on Freight, Fertilizer, Iron Ore, Steel, Coal and Container Freight for clearing at LCH.
Indexes & Products
New PowerShares equity index ETF launched on Xetra; First ETF based on companies classified as “Buyback Achievers”
Xetra/Börse Frankfurt: A new equity index fund from the ETF offering issued by PowerShares Global Funds has been tradable in the XTF segment on Xetra since Monday.
IRESS appoints Michael Lynds as Head of Product and Business Solutions
TORONTO, Dec. 1, 2014 /CNW/ – IRESS, the leading supplier of financial markets, wealth and mortgage management systems has appointed Michael Lynds as Head of Product and Business Solutions, Canada.
Thomson Reuters & Microsoft Lead Intellectual Property Protection Discussions To Promote Innovation In East Africa
Thomson Reuters, the world’s leading source of intelligent information for businesses and professionals, & Microsoft are organizing today an Intellectual Property (IP) Protection event to promote innovation across East African markets.
NOTICE OF DISCIPLINARY ACTION; KATAMAN METALS LLC, EXCHANGE RULE: EXCHANGE RULE 538. EXCHANGE FOR RELATED POSITIONS
PENALTY: In accordance with the settlement offer, the Panel ordered Kataman to pay a fine to the Exchange in the amount of $15,000.
NOTICE OF DISCIPLINARY ACTION: Jinchuanmaike Metal Resources Co., LTD, NYMEX RULE VIOLATION: RULE 562. POSITION LIMIT VIOLATIONS
PENALTY: In accordance with the settlement offer, the Panel ordered Jinchuanmaike to pay a fine to the Exchange in the amount of $45,000.
NOTICE OF DISCIPLINARY ACTION: PFL Futures Limited, NYMEX RULE VIOLATION: EXCHANGE RULE 538. EXCHANGE FOR RELATED POSITIONS
In accordance with the settlement offer, the Panel ordered PFL to pay a fine to the Exchange in the amount of $10,000.
Countries Where Espírito Santo Is Involved In Money-Laundering Probes
Wall Street Journal
Fraud and financial irregularities aren’t the only things for which the collapsed Espírito Santo empire is under investigation. As the Wall Street Journal reports today, the family-controlled conglomerate faces money-laundering investigations involving at least five countries. Here’s a rundown:
Notice of Covered Action – Scott A. Beatty, individually and d/b/a Peak Capital Group, Inc., and Peak Capital Management Group, Inc. – Award Claims Due No Later than March 2, 2015
Notice of Covered Action – WorldPMX Inc. and Sean F. McCabe – Award Claims Due No Later than March 2, 2015
Environmental & Energy
New Product Advisory: New Power Options
Molten Aluminum Lakes Offer Power Storage for German Wind Farms
By Tino Andresen, Bloomberg News @BloombergNews
Germany’s sprint toward renewable energy makes wholesale power cheap, even free, when the sun is shining and the wind is blowing. Absent that, prices spike — this year the day-ahead price of a…
George Shultz Defies GOP in Embrace of Climate Adaptation
By Bloomberg News @BloombergNews
As Ronald Reagan’s secretary of state, George Shultz faced off against Muammar Qaddafi, the Soviet Union and Chinese communists.
EEX: Competition Authorities Approve The sale Of Shares In Gaspoint Nordic
Danish as well as German competition authorities have now approved Energinet.dk’s sale of half its shares in Gaspoint Nordic to EEX.
First Day Trading of London Metal Mini Futures
Day-session turnover of Hong Kong Exchanges and Clearing Limited’s (HKEx) London Metal Mini Futures, its first Asia Commodities products, was 1,452 contracts on the futures’ first day of trading today.
Trading Overview in November 2014
Tokyo Stock Exchange, Inc.
Japan Exchange Group released Trading Overview in November 2014.
SGX sees volume growth in November
Singapore Exchange (SGX) reported growth in securities and record volumes in derivatives and commodities for November.
Japan Dairies Losing as Abe’s Weak Yen Boosts Corn Costs
By Aya Takada, Bloomberg New
Japan’s dairies and cake lovers just can’t seem to catch a break. A weakening yen is making it more expensive for farmers to import the U.S. corn their cows eat at a time when record crops have reduced livestock-feeding costs around the world. And while Japanese milk demand is increasing and prices of some dairy products are at record highs, domestic production is the lowest in three decades even as rising output everywhere else creates a global surplus.
HKFE Announces Revised Margins For iShares FTSE A50 China Index ETF & CSOP FTSE China A50 ETF Futures
Hong Kong Futures Exchange Limited (HKFE), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx), has announced that with effect from the commencement of trading on Wednesday, 3 December 2014, the minimum margins to be collected by an Exchange Participant from its clients in respect of their dealings in the following futures contracts will be as outlined in the table below. The adjustments are based on the clearing company’s normal procedures and standard margining methodology.
TOCOM Palladium Reached 3,100 Yen Per Gram – Highest In 13 Years And 9 Months
The October 2015 Palladium futures contract (most active/back contract month) temporarily reached 3,100 yen per gram during the sessions for December 1. It is the highest in 13 years and 9 months since February 23, 2001, when the high price was 3,192 yen per gram..
SEBI permits 123 alternative investment funds to operate in India
Market regulator SEBI has allowed as many as 123 entities to set up AIFs – newly created class of pooled-in investment vehicles for real estate, private equity and hedge funds – in less than two-and-half years.
NSE offers discount for currency futures, equity option trades
Faced with growing competition from rival BSE, leading bourse National Stock Exchange (NSE) today announced discounts of up to 50 per cent in transaction charges for trading on its currency derivatives platform and in equity options segment.
Stock derivatives trading gains traction among investors; Analysts concerned about excessive leverage in the system
By Sneha Padiyath, Business Standard
Qatar Exchange holds a seminar on Exchange Traded Funds (ETFs); ETFs provide a number of advantages for the market and investors
Qatar Stock Exchange hosted an ETF Liquidity Provision workshop for the financial industry participants i.e. QSE broker members, custodians, Asset managers, and the QCSD
India scraps gold import curbs
Leading gold buyer India has announced it has eased controls on imports of the yellow metal after its current account deficit narrowed sharply. India, the world’s second-biggest gold buyer after…
DCCC offers settlement in UAE Dirhams
New service launched on the occasion of UAE National Day will enhance trading and cost efficiencies for Clearing Members
Dubai, 2 December 2014: The Dubai Commodities Clearing Corporation (DCCC), the central counter-party (CCP) service provider of the Dubai Gold and Commodities Exchange (DGCX), today announced that Clearing Members will now be able to settle their transactions in UAE Dirhams (AED) in addition to US Dollars.
Poor durum crop likely to impact pasta consumers
BISMARCK, N.D. (AP) — From family dinner tables to fancy restaurants, plates of pasta are likely to be a little pricier in the coming year because of a disappointing durum wheat crop in the northern…
Financial tips for same-sex couples
NEW YORK (AP) — Gay and lesbian individuals are less prepared financially for retirement than their straight counterparts, according to an exclusive analysis by The Associated Press-NORC Center for…
‘Twelve Days of Christmas’ Items Will Cost you $116,273 This Year
PHILADELPHIA — The cost of six geese-a-laying spiked considerably this year, while most of the items in the carol “The Twelve Days of Christmas,” saw little to no increase, according to the 31st annual PNC Wealth Management Christmas Price Index.
A set of gifts in each verse of the song would set you back $27,673 in stores, an increase of less than $300 — or 1 percent — from last year.
Click Here for Thin Mints: Girl Scouts Now Sell Cookies Online
By Claire Suddath
Buyers in the Girl Scout cookie market are of two types: people who are pressured, on behalf of a co-worker’s daughter, into purchasing three boxes of Thin Mints, and people who desperately want to buy three—OK, six—boxes of Thin Mints but can’t find a girl scout fast enough or persuade her to accept your credit card.
Humanities students less vulnerable to job-market booms and busts, study says
SIMONA CHIOSE, The Globe and Mail