Today is my birthday, March 4th. Today is the only day of the year that can be construed as a command; March Forth! I have alway tried to look at life that way, looking forward, keeping going.
It does not mean don’t look back. Despite what the regulators tell us about past performance, there is much we can learn from our past performance, or that of our fellow earthly citizens.
However, we must keep moving forward and believing we can make each day, month and year better than the last. We can try to continue to grow, personally, professionally and spiritually.
Only time will tell whether we grew, whether we did move forward, or just made a great effort and stayed in the same place. But I believe in trying. So today, tomorrow and as long as I can, I am Marching Forth.
~John J. Lothian
eSpeed Comes Full Circle, Rolls Ahead with TT Connectivity
Trading Technologies (TT) announced this morning the release of its connection to eSpeed’s central limit order book for treasury securities. The move not only benefits all parties, but also closes out a particularly contentious chapter in eSpeed’s history.
When BGC Partners sold its eSpeed bond platform last year to Nasdaq OMX Group in a deal worth $1.23 billion in stock and cash, it became the latest in a series of signs that Nasdaq is pursuing an aggressive global strategy that extends well beyond its current product mix. The price tag was steep, especially considering eSpeed carried with it plenty of baggage in the form of legal disputes and the accompanying bad blood. Now, less than a year later, eSpeed will soon link up to CME Group and now Trading Technologies – two firms with which it has sparred vigorously in the courtroom.
***** It matters who owners are and Nasdaq OMX brings a fresh perspective and outlook to Espeed, in my humble opinion.
CME Annual Report to the SEC Reveals Uncertainty About the Success of its OTC Clearing Business
The Chicago Mercantile Exchange has filed its annual report to the SEC today, containing some key currency trading metrics and shedding light on its evaluation of the markets and regulations.
***** The success of the CME’s OTC clearing, an all the other OTC clearing efforts, won’t be known until the next financial crisis.
Equities trading businesses come under further pressure
Philip Stafford – FT.com
The amount of commission European fund managers pay for using cheaper and automated algorithms is nearing parity with what they spent with banks for specialist sales trading, a new survey has found.
***** Amazing how that works.
The A,B,C’s: Ian Morley’s Tips for Emerging Managers
Emerging managers have always faced challenges getting their firms off the ground. From establishing a track record to building the infrastructure needed to grow, firms are now faced with a new regulatory regime in the US and Europe that puts additional hurdles in their way.
Ian Morley, chairman of Wentworth Hall Consultancy in London spoke with Jim Kharouf, editor-in-chief of John Lothian News at the Emerging Manager Forum in Miami in December
about the challenges that managed futures funds face today. He said that Dodd-Frank and European rules have made compliance and reporting more onerous on managed futures firms and hedge funds, but that is only one part of the problem.
Computer-driven trade to grab market share in 2014 – study
Smaller asset managers and hedge funds will drive an increase in the use of computer-driven equity trading strategies in 2014 as brokerages cut back on the services they offer to less profitable clients, a study shows.
***** You don’t bring a knife to a gunfight.
Investment Managers Examine The Future Of Buy-Side Dealing
Fidessa group plc has today published a discussion paper, View From The Top, in which a group of senior representatives from investment management firms look at the systemic changes that have taken place across their industry and the impact of these on the buy-side dealing desk.
***** Looking for new ways to win a gunfight?
JLN/MarketsWiki 2014 Annual Survey – Please Give us 30 Seconds of Your Time
John Lothian News
We say “annual” but, quite frankly, it has been three years since we’ve conducted one, so the last one is getting a little, shall we say, stale. Please click the link below and answer five simple questions. 30 seconds of your time once every three years? It isn’t too much to ask, right? Besides, you might win a valuable prize.
MGEX Posts Best Volume Month In 31 Months
MGEX, a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO), reports February 2014 volume and open interest. Total Exchange volume ended at 204,343 contracts traded, the sixth best month in Exchange history and a 56 percent increase over February 2013.
***** The last of the Mohicans continues to do well.
OneChicago Announces Trading Volume For February 2014 – EFP February 2014 Volume Up 861% Compared With February 2013
OneChicago, LLC, an equity finance exchange, today announced February 2014 volume of 735,214.
***** Do “equity finance exchanges” really have volume? Isn’t there a more accurate name or metric?
VIX Futures Average Daily Volume Sets New Record In February
The CBOE Futures Exchange, LLC today reported that average daily volume (ADV) in futures on the CBOE Volatility Index and total exchange-wide ADV at CFE reached record levels in February 2014. Also during the month, the exchange launched trading of futures on the CBOE Short-Term Volatility Index.
***** The free donuts on the trading floor when the VIX sets a volume record seems to be working.
ICE U.K. NBP Natural Gas Futures Set Daily Volume Record
IntercontinentalExchange, a leading operator of global regulated futures exchanges, clearing houses and over-the-counter markets, announced today that ICE U.K. National Balancing Point Natural Gas futures achieved a daily volume record of 118,145 contracts (equivalent to 3.65 billion therms) on March 3, 2014.
***** Can someone tell me what “National Balancing Point” natural gas is?
Forex trading speeds up moves to computer platform
Daniel Schäfer and Delphine Strauss – FT.com
Tired of headlines about alleged trader misbehaviour, investment banking executives are accelerating longstanding efforts to save costs and become technology leaders by replacing humans with computers.
***** I did a trade and the confirmation said my counterparty was R2D2.
MarketsWiki Page of the Day
MarketsWiki Recent Updates
Companies, Organizations and Groups
47,420,945 pages viewed, 7,835 articles, 180,123 edits
HKEx to offer after-hours yuan futures trading from April 7
The Hong Kong Stock Exchange , the world’s fourth-largest exchange operator, said on Tuesday it would add yuan currency futures to after-hours trading from April 7.
SEC’s Gallagher accuses Fed of power grab over foreign brokers
The Federal Reserve’s tough new capital rules for foreign banks with U.S. operations constitute a power grab to oversee stock brokerages that could ultimately harm market liquidity, a top U.S. securities regulator said Monday.
BOE Seeks Derivatives Pact to Prevent a Repeat of Lehman Cascade
Ben Moshinsky – Bloomberg
The Bank of England is seeking a global pact among banks to suspend default clauses in some derivatives contracts during a crisis, in a bid to ward off bank death spirals that cascade through the financial system.
Bitcoin Loss Highlights Elusive Paths of Regulation
Can nearly $450 million go missing without a crime taking place? That is only one of the questions stemming from the collapse of the Bitcoin exchange Mt. Gox that present a host of challenges for governments worldwide that are struggling to regulate virtual currencies.
Cofco and Noble in joint venture talks
Jeremy Grant in Singapore and Lucy Hornby in Beijing – FT.com
China’s largest grain trader, China National Cereals, Oil and Foodstuffs Corp, is in talks with Singapore-listed Noble Group about forming a joint venture in sugar, soyabeans and wheat that would propel the Chinese group further towards the forefront of global agribusiness.
Low-Touch Share Of 2014 European Equity Trading Commission Wallet Will Exceed 40% For First Time, Says TABB
Part Two Of 7th Annual Buy-Side Research Shows Challenge To Bulge Bracket Banks’ Dominance Across Europe Amidst Change In Algorithm Selection Process
Cleartrade Exchange and China Beijing Equity Exchange sign accord
Singapore’s Cleartrade Exchange (CLTX) and Beijing-based China Beijing Equity Exchange (CBEX) have signed a memorandum of understanding, which agrees to share information and develop joint projects.
Europe Gas Storage Seen Enough for 45-Day Ukraine Supply Cut
Anna Shiryaevskaya – Bloomberg
Europe’s mildest winter since 2007 has left the region with enough natural gas in storage to cover any future disruption in flows from Ukraine for about 45 days.
FINRA Foundation Military Spouse Fellowship Application Period Open From March 3 – April 18
Now in its ninth year, the FINRA Investor Education Foundation’s Military Spouse Fellowship Program has opened the application process for its class of 2014 military spouses.
B.C. Securities Commission hosts Canucks Open Practice and launches online contest for Fraud Prevention Month
Exchanges & Trading Facilities
The Options Industry Council Announces February Options Volume Up 7 Percent
The Options Industry Council (OIC) announced today that 344,908,034 total options contracts were traded in February, which is up 7.47 percent compared to last year when 320,943,312 contracts were traded.
CBOE Holdings Reports February Volume
CBOE Holdings, Inc. reported today that February trading volume for options contracts on Chicago Board Options Exchange and C2 Options Exchange and futures contracts on CBOE Futures Exchange totaled 113.51 million contracts. Average daily volume was nearly six million contracts, a 37-percent increase from February 2013 and a three-percent increase from January 2014.
Average Daily Volume Of 7.9 Million Contracts At Eurex Group In February
In February 2014, the international derivatives markets of Eurex Group recorded an average daily volume of 7.9 million contracts (Feb 2013: 8.7 million). Of those, 5.4 million were Eurex Exchange contracts (Feb 2013: 6.3 million), and 2.6 million contracts were traded at the U.S.-based International Securities Exchange (ISE) (Feb 2013: 2.7 million).
ISE Holdings Reports Business Activity for February 2014 | International Securities Exchange, LLC
ISE Holdings Reports Business Activity for February 2014. ISE and ISE Gemini reported a combined ADV of 2.6 million contracts.
Turnover At Deutsche Börse’s Cash Markets At 102.6 Billion Euros In February
Key figures SIX Swiss Exchange and SIX Structured Products Exchange: February 2014
NASDAQ OMX Nordic And Baltic Markets: Trading Statistics February 2014
The Spanish Stock Exchange Traded EUR50.9 Bn In February, Up 20% Year On Year – Fifth Consecutive Month Of Growth In Trading Volumes
February Statistics Report From The NASDAQ OMX Nordic Exchanges
Investor Activity On Warsaw Stock Exchange Markets February 2014
Boerse Stuttgart Generates Turnover Of More Than EUR 8 Billion In February
Growth In Debt Instrument Trading – Transaction Volume Up In Comparison With February 2013
Nordic Growth Market NGM AB: February Turnover Exceeds 4.9 Billion SEK (562 Million Euro) At NGM
Moscow Exchange’s Turnover Increases 40% YoY In February
IKang Healthcare of China Plans IPO on Nasdaq
Prudence Ho – MoneyBeat – WSJ
IKang Healthcare Group Inc., a privately held Chinese health-care services provider, is planning to raise up to US$150 million in an initial public offering on the Nasdaq stock market, in the latest Chinese company listing planned for the U.S.
Nasdaq Extends New Feed Tests
Max Bowie – WatersTechnology
Nasdaq OMX has delayed the end of beta testing for a suite of enhanced datafeeds by two weeks to ensure direct feed subscribers have adequate time to test the new versions.
The Santiago Stock Exchange And TSX Venture Exchange Enter Into Agreement That Will Lead To The Development Of A New Venture Market In Chile
CME Group Chief Financial Officer to Present at Raymond James Conference, March 4
MIAX Options Exchange: MIAX Options – Daylight Saving Time 2014
Hedge Funds & Managed Futures
Pimco raises $5.5bn to buy bank assets
Giles Turner – Financial News
Bond giant Pimco has raised $5.5 billion to buy bank assets in the US and Europe and has closed the fund to new investors, according to a person familiar with the fundraising.
Will Warren Buffett’s investment advice work for you?
In his most recent Berkshire Hathaway shareholder letter, the ever-folksy Warren Buffett sounds more like a personal finance guru than a financial mastermind, focusing on buy-and-hold investing and advocating indexing strategies.
Buffett fails to dispel investor angst over succession plan
Warren Buffett is seeking to reassure shareholders about how his Berkshire Hathaway Incs will perform in the decades after he steps down or dies, but remains as vague as ever about succession plans.
Hedge fund manager Dan Loeb scores 4.4 percent gain in February
Daniel Loeb scored strong gains in February in part because of a bump in the stock price of Dow Chemical Co, where the billionaire hedge fund manager is pressing for change.
Vanguard drops Armstrong Shaw from Windsor II fund
Vanguard Group Inc said on Monday it dropped Armstrong Shaw Associates as an adviser to its Windsor II fund and shifted assets to another firm of the well known multi-manager fund.
Algebris drafts in macro specialist as associate partner
Vivek Ahuja – Financial News
Algebris Investments, the hedge fund manager set up eight years ago by former Morgan Stanley European banks research head Davide Serra, has hired Stephen Hynes to provide dedicated analysis of macro themes in the financials sector in which the firm specialises.
Nine private equity founders share $2.5bn payday
Henny Sender – FT.com
The nine founders of the four big listed US private equity companies took home more than $2.5bn between them last year, with Apollo Global Management’s Leon Black alone receiving $546m.
Banks & Brokers
Wilbur Ross, Fairfax to sell 6 pct of Bank of Ireland shares
Two of Bank of Ireland’s largest shareholders, Wilbur Ross and Fairfax Financial, began selling a 6.4 percent share in the country’s largest lender on Tuesday, the placing’s bookrunner Deutsche Bank said.
U.S. regulators seeking data on banks’ attempts to slim down
U.S. regulators are encouraging mega-banks to simplify their operations and they plan to compile data to track the financial firms’ progress, an official with the U.S. Office of the Comptroller of the Currency (OCC) said on Monday.
Morgan Stanley Invites You to Meet…M1KE
Katie Martin – MoneyBeat – WSJ
Proof, as if it were needed, that financial markets have an unhealthy obsession with acronyms: Morgan Stanley’s rates strategists have sent out a jaunty note asking “Have you met M1KE”?
Julius Baer chief Boris Collardi takes 12% pay cut
James Shotter in Zürich – FT.com
Julius Baer cut the pay of its chief executive by 12 per cent in 2013, as it sought to placate shareholders who voted against the Swiss private bank’s remuneration report at last year’s annual meeting.
MahiFX Launches MFX Compass e-FX Suite for Banks
MahiFX Ltd, the foreign exchange technology provider, today announced the launch of ‘MFX Compass’, the most comprehensive and advanced electronic FX trading technology and support framework for banks and brokerages.
Peter Oppenheimer Joins Goldman Sachs Board of Directors
Major Banks Join Forces With SWIFT To Manage KYC Compliance Challenges
Bank Of America Merrill Lynch, Citi, Commerzbank, JPMorgan, Societe Generale And Standard Chartered Will Work With SWIFT To Build A KYC Registry For The Industry
Tullet Prebon says FY revenue falls 6 percent
British interdealer broker Tullett Prebon said full year revenue fell 6 percent, just behind analysts’ expectations, as low market volatility dampened market activity and new regulations for derivatives created uncertainty for clients.
Clearing & Settlement
OCC Announces Cleared Contract Volume In February Rose 8%
OCC announced today that total cleared volume in February reached 350,507,077 contracts, an 8 percent increase from the February 2013 volume of 325,237,351 contracts. OCC’s year-to-date total cleared contract volume is up 8 percent in 2014 with 746,102,697 contracts.
Korea trading error prompts global clearing house review
Viren Vaghela – Risk.net
After HanMag Securities caused $45 million of losses in December by submitting a series of incorrect trades at Korea Exchange’s (KRX) listed derivatives service, triggering the use of non-defaulting members’ default funds under KRX’s rules, the Futures Industry Association (FIA) plans to review the waterfall structure at every clearing house globally.
N2EX Clearing And Operations To transfer From NASDAQ OMX To Nord Pool Spot
BNY Mellon CSD Approved By The Luxembourg Stock Exchange As A Recognized Securities Settlement System
SIX will introduce T+2 settlement for Switzerland starting 6 October 2014
Indexes & Products
S&P DJI to review planned changes to Google weightings
Standard & Poor’s Dow Jones Indices on Monday said it will review whether its planned changes to Google Inc’s weightings in widely used market indexes could hurt investors, and took the unusual step of asking worried index fund managers to address the potential costs.
Short-Term VIX Soars on Ukraine Fears
Kaitlyn Kiernan – MoneyBeat – WSJ
Investors are preparing for a rocky week ahead, but the market’s so-called fear gauge shows they don’t see volatility sticking around long.
Correction – Component Change Made In STOXX Eastern Europe 50 Index
TT Awarded “Best Trading and Execution Technology” at the Inaugural CTA Intelligence Service Awards
Trading Technologies International, Inc., a global provider of high-performance professional trading software, received the award for “Best Trading and Execution Technology” at the inaugural CTA Intelligence Services Awards in New York last Thursday.
SunGard Named Best Options Trading Platform Vendor and Best Broker-Dealer for Algorithms in Wall Street Letter Institutional Trading Awards
SunGard has been named “Best Options Trading Platform Vendor” and “Best Broker-Dealer – Algorithms” in the 2014 Wall Street Letter Institutional Trading Awards for its Front Arena solution and Fox River Execution Solutions, respectively.
Perseus Leads Wireless Trading
Perseus Telecom, a leading provider of high-speed global connectivity, High Precision Time and Market-to-Market networks announced today four wireless routes in London are now available for trading with Perseus.
Perseus Bakes Low-Latency London Microwave Network
Max Bowie – WatersTechnology
New York-based fiber and microwave network provider Perseus Telecom has built a series of wireless microwave networks connecting key datacenters in and around London to provide market makers and latency-sensitive traders with ultra-low latency connectivity to support market making and arbitrage trading in the equities, derivatives and foreign exchange markets.
Latency At The Speed Of Light?
Becca Lipman – Wall Street & Technology
McKay Brothers, a provider of specialty microwave telecom services to the low-latency trading space, announced it bettered its lowest known latency connecting Aurora, IL and Secaucus, NJ to 8.15 milliseconds. The company is ahead of schedule to reduce roundtrip latency to 8.12 ms on its Aurora-Secaucus path in the second quarter.
Securities Industry Luminary Howard Edelstein Joins Algomi As Strategic Advisor – Edelstein’s Involvement An Indicator Of Strong Momentum Behind Algomi
Environmental & Energy
For Storing Electricity, Utilities Push New Technologies
Cassandra Sweet and Rebecca Smith – The Wall Street Journal
From backyard tinkerers to big corporations, inventors have been struggling to find a way to store solar, wind and other renewable energy so it can furnish electricity when the sun doesn’t shine or the wind doesn’t blow.
Now California is offering businesses a big incentive for success—contracts that the utility industry estimates could total as much as $3 billion for successful, large-scale electricity-storage systems.
**JK – It is a momentous and rare occassion when The Wall Street Journal covers energies other than coal, oil or natural gas. Till next year, WSJ.
Report: UK “not acting alone” with climate legislation
James Murray – Business Green
The global reach of legislative efforts to tackle climate change will again be highlighted today with the publication of a new report assessing how the UK’s climate change policy landscape, and in particular its fourth carbon budget, compares with action in other countries.
**JK – Leading can be a lonely experience.
Russian-Ukrainian Conflict Spilling Beyond Borders And Into Natural Gas Markets
Ken Silverstein – Forbes
The Russian and Ukrainian conflict is about freedom — not just to political expression but also to explore new economic ties with the western world, which includes finding additional access to lucrative natural gas supplies.
**JK – If they say it ain’t about the gas, it’s about the gas.
Impasse over closing auction plan for Hong Kong stock exchange
South China Morning Post
Local brokers are adamantly opposed to a reinstatement of the closing auction system by Hong Kong Exchanges and Clearing, but international institutional investors want the system back.
HKEx to Enhance its RMB Currency Futures with After-hours Trading and Other Changes
Hong Kong Exchanges and Clearing Limited will add renminbi currency futures – the world’s first deliverable RMB currency futures – to after-hours trading from 7 April this year. On the same day, HKEx will also introduce the fourth calendar quarter to the product’s contract months and add more calendar spreads.
Singapore Overtakes Tokyo as World’s Costliest City, EIU Says
Sharon Chen – Bloomberg
Singapore leapt five spots to top a global ranking of the most expensive cities as a stronger currency and price increases made it costlier to live in the island nation, according to the Economist Intelligence Unit.
Presentation by HKEx Chief Executive Charles Li at HKEx Group Annual Media Luncheon
HKEx on Market Integrity Initiatives
[OSE] Handling of Rules Developing Rules in Connection with Derivatives Market Integration, etc.
HKEx Warns The Public Of Misdirection To HKEx’s Website
Thai Bourse Supports Investment In Social Enterprise
Dalian Commodity Exchange: Sino-Agri Tongyong, Zhejiang Jiuxin Chemical Get 1st Two PP Futures Orders
Dalian Commodity Exchange: Q & A On Listing Of PP Futures
Dalian Commodity Exchange Holds “Forum On Listing Of PP Futures And Plastics Futures Serving Real Economy” – Unremittingly Enriching And Improving Petrochemical Futures In The Year Of Horse
Russia and the dead BRIC thesis
James Saft | Reuters
Sometimes it takes a slap in the face to make you realize a long-cherished belief is long dead. Russia’s power move in Ukraine is the slap and the so-called BRICs (Brazil, Russia, India and China) as an investment concept is the (now very much dead) belief.
BGC Partners And The DMCC Announce Partnership To Market A Sharia-Compliant Commodity Murabaha Mechanism
DMCC welcomes BGC as its first brokerage partner on the DMCC Tradeflow platform, bringing innovation and efficiency to the trading of Commodity Murabaha and to further promote Dubai as a hub for Islamic finance
Dalian Commodity Exchange, DGCX Congratulate Each Other For The Listing Of PP Futures
Nigerian Stock Exchange Set To Slash Transaction Costs By Over N 1bn
Results Of Dubai Financial Market AGM