Just Floored: Who Says Jeff Sprecher hates open outcry?
Jim Kharouf – John Lothian News (Rerun from last Friday in case you missed it.)
Open outcry is still alive and well in New York.
The New York Stock Exchange opened a new trading floor for the NYSE Amex options market this week, a completely renovated space that also houses: NYSE’s US cash equities, ICE Futures US members, NYSE Arca’s customer service and the NYSE/ICE’s national operations center.
The 7,000-square-foot space, with 22-foot ceilings, has been renamed “The Buttonwood Room,” a tip of the cap to the origins of the NYSE, and a shift away from the room’s less than flattering name of “The Garage,” as it was called when it originally opened in 1922. It’s also a new home for AMEX, which had been relegated to a low-ceilinged area called the Blue Room, off to the side after the NYSE purchased AMEX. The space now has 352 positions and features five specialist firms, 12 floor market maker firms and eight floor brokerage firms.
Small-time traders drive Southeast Asia futures volumes
Jeremy Grant, FT
High in a building in central Kuala Lumpur, not far from the twin Petronas Towers that dominate the Malaysian capital’s skyline, staff at Oriental Pacific Futures are busy broking futures for some of the group’s roughly 1,000 clients.
***** Treat the small traders well and you will have a good ecosystem for all traders.
U.S. Says Russian Spy Ring Sought NYSE, Sanction Secrets
By Andrew Harris and Bob Van Voris, Bloomberg
Three Russians charged by the U.S. with espionage allegedly sought secrets tied to the New York Stock Exchange and U.S. economic sanctions on Russia, even while one bemoaned his tedious job’s lack of a James Bond flair.
***** The NYSE’s secrets are all well known.
If the Russians Want to Know About HFT, They Don’t Need Spies
Attorney General Holder today announced espionage charges against three Russians, one of whom was arrested today in New York. Two were Russian diplomatic officials, and the third-the one arrested-was an employ of a Russian bank, reported to be Vneshekonombank. The FBI had the men under surveillance since 2012.
***** Nice to see the Streetwise Professor back after his site was hacked by the Russians.
Blizzard’s Snow Dump From NYC to Boston Reduced by Forecasters
By Esmé E. Deprez and Henry Goldman, Bloomberg
The New York region lurched back to life after a storm advertised as a potentially life-threatening blizzard ended up as a mundane winter snowfall.
****** Who knew forecasters could be wrong. Better safe than sorry is the story.
You Can Thank Computers If You’re Trading Stocks During Blizzard
By Annabelle Ju, Bloomberg
Stock traders can thank computers if they have to work tomorrow in New York. Back when the business of buying and selling stocks depended on human traders gathering in the same physical location — the New York Stock Exchange in lower Manhattan, for instance — a major snowstorm could snarl commutes so badly that exchanges had to shut.
***** Thank you endless racks of computers.
The Health Risks of Shoveling Snow; With a Blizzard Forecast, Shoveling Wet, Heavy Snow Is a Lot of Exercise; Push, Don’t Lift
by Sumathi Reddy. WSJ
Shoveling your way out of a snowstorm is actually a big workout. And that means that shoveling large amounts of heavy, wet snow—such as the snowfall currently descending on the Northeast—can pose significant health risks, particularly with heart and back strain.
***** Let’s be careful out there.
CBOE Risk Management Conference March 4 – 6, 2015
Top Institutional Derivatives and Volatility Traders to Gather in California for 31st Annual CBOE RMC. The Chicago Board Options Exchange® (CBOE®) and CBOE Futures Exchange (CFE®) will host the 31st annual CBOE Risk Management Conference (RMC), from Wednesday, March 4 through Friday, March 6, 2015, at the Park Hyatt Aviara in Carlsbad, California.
***** The conference is during my birthday. Should I go?
US DARK POOLS: ROSENBLATT’S 2014 YEAR IN REVIEW and OUTLOOK FOR 2015
Join us for a webinar on Jan 29, 2015 at 1:00 PM EST.
***** A don’t miss webinar from the very smart people over at Rosenblatt Securities.
MarketsWiki Page of the Day
Allston Trading, LLC
MarketsWiki Recent Updates
Companies, Organizations and Groups
57,763,611 pages viewed, 8,139 articles, 188,997 edits
ICE to change Isdafix calculation
Philip Stafford, FT
Intercontinental Exchange will next month switch the way it calculates Isdafix in a bid to bolster market confidence in one of the key benchmarks for the interest rate swaps market.
U.S. regulators should study oil slump -CFTC official
By Tom Polansek, Reuters
U.S. futures market regulators should review the sharp drop in crude oil prices to gain a better understanding of the slide as they pursue rules to crack down on speculation in commodities, a top official said on Monday.
CME Group to launch euro-denominated cocoa contract
CME Europe said on Tuesday it planned to launch a euro-denominated cocoa futures contract on March 30, just days before rival ICE Futures Europe introduces a similar contract.
Bernie Sanders is rattling Wall Street’s cage
By EricGarcia, MarketWatch
Sen. Bernie Sanders plans on using his new position on the Senate Budget Committee to take on too-big-to-fail Wall Street banks.
Warren named to top Dem spot on Banking panel
By Peter Schroeder, The Hill
Sen. Elizabeth Warren (D-Mass.) is climbing the ranks of the Senate Banking Committee, and will now be the top Democrat on a key subcommittee.
OpenBondX Transforms Electronic Fixed Income Markets with “All-to-All” System and Hybrid Trading Protocol
Alternative Trading System (ATS) upstart OpenBondX, LLC plans to radically improve electronic bond trading with its imminent launch in Q1, 2015.
Russians accused of spying in New York
Gina Chon in Washington, FT
A Russian bank employee and two Russian government officials have been charged with being part of a spy ring in New York City aimed at gathering intelligence on US sanctions against Russia and US efforts to develop alternative energy resources.
Aramco Says Saudis Won’t ‘Singlehandedly’ Balance Oil Market
By Anthony DiPaola and Glen Carey, Bloomberg
Saudi Arabia won’t balance global crude markets on its own even as prices fall “too low for everybody” and threaten the investment needed to meet long-term demand, the head of Saudi Arabian Oil Co. said.
U.K. Lawmakers Reject Fracking Moratorium, Accept Safeguards
By Alex Morales, Bloomberg
U.K. lawmakers rejected a proposal to ban hydraulic fracturing for shale gas and oil for at least 18 months.
Pork Prices Drop as Hog Herds Recover; More Pigs Come to Market a Year After Epidemic Hit Supplies; ‘Just a Lot of Pork’
By Kelsey Gee, WSJ
Bacon lovers breathe easy: the hog shortage that sent prices to new highs is over.
The Morning Risk Report: Look for Sanctions “Black Boxes”
By Rachel Louise Ensign, Wall Street Journal
Banks’ compliance with U.S. sanctions has been closely scrutinized in recent years. Now a top sanctions official is signaling that other kinds of financial-services firms may be next in line.
5 Ways We’ll Make Futures Trading More Retail Friendly
Have you noticed the level of innovation in retail stock and options trading these days? We’re trading from apps. We’re trading for free. We’re letting robots manage our portfolios. We’re getting trading ideas from algorithms.
CFTC to allow foreign introducing brokers
Futures & Options World
The Commodity Futures Trading Commission has granted unlimited no-action relief to foreign introducing brokers (IBs) regarding net capital and financial reporting requirements.
The relief permits foreign domiciled IBs to file audited and unaudited accounts using local accounting standards in lieu of US accounting principles or international financial reporting standards.
S.E.C. Has Yet to Set Rule on Tricky Ratio of C.E.O.’s Pay to Workers’
By Andrew Ross Sorkin, NY Times
Last week, we learned that Timothy D. Cook, Apple’s chief executive, was paid $9.2 million for 2014. Jamie Dimon of JPMorgan Chase made $20 million. The Starbucks chief Howard Schultz took home $21.5 million. And Viacom said that its chief, Philippe Dauman, received $44.3 million.
CFTC approves Bursa Malaysia as registered FBOT
Participants located in the US can now directly access CME GLOBEX to trade on Bursa Malaysia Derivatives products.
Bursa Malaysia Berhad “Bursa Malaysia) has announced that Bursa Malaysia Derivatives Berhad (BMD) has been granted registration as a Foreign Board of Trade (FBOT) by the U.S. Commodity Futures Trading Commission (CFTC) pursuant to Section 4(b)(1) of the Commodity Exchange Act and Part 48 of the CFTC’s regulations. An Order of Registration has been issued by the CFTC to BMD on 22 January 2015 in Washington D.C. With this Order, BMD may now permit identified members and other participants located in the U.S. to enter trades directly into its electronic order entry and trade matching system on CME GLOBEX to trade BMD products.
CFTC Announces Membership of the Energy and Environmental Markets Advisory Committee
U.S. Commodity Futures Trading Commission (CFTC) Commissioner J. Christopher Giancarlo, sponsor of the Energy and Environmental Markets Advisory Committee (EEMAC), announced today the members and associate members of the EEMAC.
CFTC’s Giancarlo attacks Dodd-Frank
Futures & Options World
US Commodity Futures Trading Commissioner Chris Giancarlo has criticised the Dodd-Frank Act and highlighted five key problems with the controversial market reform.
Giancarlo, a former senior manager at broker GFI Group before being sworn in as CFTC commissioner in June, said he supports the three principles of Dodd-Frank: central clearing, swaps reporting and regulated swaps execution.
Ag committee chairman wants thorough evaluation of SNAP
By Jerry Hagstrom, Agweek
House Agriculture Committee Chairman Michael Conaway, R-Texas, told reporters on Jan. 22 that his plans to undertake a “full-scale review” of the Supplemental Nutrition Assistance Program without “prejudging the outcome” could be altered if he receives budget instructions from leadership before that review is finished.
FCA introduces additional protection for consumers ahead of pension freedoms
The Financial Conduct Authority (FCA) has today written to the Chief Executive Officers (CEOs) of pension providers to outline plans to introduce additional protection for those accessing their defined contribution (DC) pension pot from April.
Self-Regulatory Organization (SRO) Rulemaking and National Market System (NMS) Plans
ISE: Notice of Designation of Longer Period for Commission Action on Proposed Rule Change to Modify the Opening Process (Release No. 34-74126; File No. SR-ISE-2014-24; January 23, 2015)
NASDAQ OMX BX: Order Approving Proposed Rule Change Relating to Directed Market Makers (Release No. 34-74129; File No. SR-BX-2014-049; January 23, 2015)
NYSE: Notice of Filing and Immediate Effectiveness of Proposed Rule Change Establishing the NYSE Integrated Feed Data Feed (Release No. 34-74128; File No. SR-NYSE-2015-03; January 23, 2015)
NYSEMKT: Notice of Filing and Immediate Effectiveness of Proposed Rule Change Establishing the NYSE MKT Integrated Feed Data Feed (Release No. 34-74127; File No. SR-NYSEMKT-2015-06; January 23, 2015)
Phlx: Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to MNX and NDX (Release No. 34-74125; File No. SR-Phlx-2015-05; January 23, 2015); see also Exhibit 5
Due to system maintenance, the following systems will not be available beginning at 8:00 p.m. CT on Friday, January 30 through 8:00 p.m. CT on Sunday, February 1: Online Registration System, BASIC Data Entry, Security Futures Products Training, Online Payments, Online Arbitration Claims, Arbitrator Profile, Arbitrator Training, Employment Application and Profile System, and all Electronic Filings including EasyFile, Exemptions, Questionnaire, and Disclosure Documents. We apologize for any inconvenience.
Extension of deadline for FCM CCO Annual Reports for fiscal years ending on or before Jan. 31, 2015
NFA requires each FCM for which it is the DSRO to provide NFA with a copy of its CCO Annual Report required under CFTC Regulation 3.3. The purpose of this Notice is to remind FCMs that the under CFTC No Action Letter 14-154 (Dec. 22, 2014), any firm with a fiscal year ending on or before Jan. 31, 2015 has 90 days from the firm’s fiscal year end to file this year’s report. http://jlne.ws/1Jzr9j4
Exchanges & Trading Facilities
ICE Benchmark Administration Introduces New Calculation Methodology for ISDAFIX from February 16, 2015
Intercontinental Exchange (NYSE: ICE), the leading global network of exchanges and clearing houses, today announced that ICE Benchmark Administration (IBA) will introduce a new calculation methodology for ISDAFIX from February 16, 2015.
Wall Street ready for ‘business as usual’ as storm wanes
By John McCrank, Reuters
Wall Street geared up for a regular securities trading session on Tuesday as a snow storm that effectively shut down New York City was downgraded from a blizzard to a winter storm in the immediate metro area.
Wall Street left with skeleton crews down as blizzard bears down
Stock exchanges including Intercontinental Exchange Inc’s New York Stock Exchange unit, Nasdaq OMX Group, and BATS Global Markets said their exchanges were expected to stay open for normal operating hours Monday and Tuesday.
CME Group Announces Six New Additional European Natural Gas Contracts on CME Europe
CME Group, the world’s leading and most diverse derivatives market place, announced today the launch of six new additional European Natural Gas cleared future contracts on CME Europe, adding to the four physically delivered and eight financially settled contracts which launched and began trading on Monday 19 January 2015.
CME Group Announces the Launch of Cocoa Futures on CME Europe
CME Group, the world’s leading and most diverse derivatives marketplace, today announced the launch of a physically delivered and a financially settled cocoa futures contract. The launch of a cocoa futures contract for physical delivery will represent CME Group’s first entry into deliverable soft commodities. These contracts will be listed on CME Group’s European exchange, CME Europe, for first trade date on 30 March, 2015. Both contracts are authorised and approved by the United Kingdom (UK) Financial Conduct Authority.
CME Group Notices
Additional Margin File- New Release
CME Group Delivery Dates for February 2015
Amendments to Last Trading Day and Expiration Day Rules for Seven (7) International Coal Futures and Options Contracts
EEX to launch exchange trading in Spanish, Swiss and Nordic Power Futures
From 15 February, 2015, the European Energy Exchange (EEX) will launch exchange trading in power futures for the Spanish, Swiss and Nordic market area, which are only available for Trade Registration at present. The available products comprise month, quarter and year maturities for the countries specified. In addition, calendar weeks can also be traded on the Spanish Power Spot Market.
SGX partners Clearbridge Accelerator to facilitate fund raising for entrepreneurs and SMEs
Singapore Exchange (SGX) is partnering Clearbridge Accelerator Pte Ltd (CBA) to develop a capital-raising platform for entrepreneurs and small and medium-sized enterprises (SMEs) in Asia.
Hedge Funds & Managed Futures
Bill Ackman now among the ‘most successful’ hedgies of all time
By Michelle Celarier, NY Post
Bill Ackman, whose Pershing Square Capital made $4.5 billion for its investors last year, jumped onto the list of the Top 20 most successful hedge-fund managers of all time, according to an annual ranking out recently.
Is troubled hedgie Steve Cohen getting back in the SAC?
By Michelle Celarier, NY Post
Former hedge-fund kingpin Steve Cohen may eventually be able to manage outside money again, according to a report.
Oil Slide Bites Private Equity as Carlyle Seen Leading Decline
By Devin Banerjee, Bloomberg
Private equity firms, which made record profits in the past two years, are preparing to share the cost of their forays into the U.S. oil business.
Synthetic CDO volumes double amid hunt for yield
Christopher Thompson, Capital Markets Correspondent, FT
Yield-starved European investors are helping to drive a resurgence of structured credit securities that were blamed for worsening the global financial crisis six years ago.
Netherlands Increases Gold Holdings for First Time Since ’98
By Glenys Sim and Phoebe Sedgman, Bloomberg
The Netherlands added to its gold reserves for the first time since 1998 as the ninth-biggest holder boosted assets to the highest in seven years, while Russia bought for a ninth month, International Monetary Fund data show.
German Probe Finds No Signs of Manipulation in Gold Market
By Shane Strowmatt and Nicholas Comfort, Bloomberg
Germany’s financial regulator BaFin has found no evidence to support allegations of manipulation in the gold market or that currency exchange rates were systematically rigged, according to its head of banking supervision.
Banks & Brokers
Saxo Faces Legal Battles With Clients After Franc Shock
By Frances Schwartzkopff, Bloomberg
Saxo Bank A/S says it’s bracing itself for lawsuits from some clients who are unhappy with its efforts to have them cover losses on their Swiss franc accounts after the bank repriced trades retroactively.
Goldman Sachs profit on disputed LIA trades back in focus
Jane Croft, FT
Goldman Sachs is estimated to have made $82m profit on nine disputed trades which are at the heart of a $1bn lawsuit brought against it by the Libyan Investment Authority — rather than the $350m which has been previously claimed, according to people familiar with the case.
Clearing & Settlement
Isda outlines proposals for clearing recovery
Futures & Options World
The International Swaps and Derivatives Association (Isda) has outlined a proposed framework for central counterparty (CCP) recovery and continuity. The trade association, which represents the world’s top banks, released its position paper on CCP recovery and continuity on Monday, outlining a framework for recovery and the tools that can be used to re-establish a matched book.
Indexes & Products
S&P Dow Jones Planning ‘Aggressive’ Expansion of Bond Indexes
Matt Robinson – Bloomberg
S&P Dow Jones Indices LLC is planning an “aggressive” expansion of its fixed-income index business, saying it’s tapping into demand for benchmarks not controlled by bond dealers.
A new group of indexes will cover more than 20,000 individual securities with the goal of issuing thousands of maturity- and sector-based benchmarks, according to a company statement. The measures will track passive investment strategies and actively managed benchmarks. S&P Dow Jones Indices, which licenses the Standard & Poor’s 500 Index, announced multiple new benchmarks Monday, including the S&P U.S. Aggregate Bond Index, which tracks the performance of investment-grade U.S. debt.
Factor ETFs Foster MSCI Indexing Ascent
While MSCI already enjoys an advantageous position in the ETF market, that position is being further enhanced by the growth of factor-driven funds, or those ETFs that focus on investment factors such as momentum, quality and value.
Real Estate’s Big Debut
S&P Dow Jones Indices and MSCI Inc. announced in November that they plan to move stock exchange-listed Equity REITs and other listed real estate companies from the Financials Sector into a new 11th headline Real Estate Sector within the Global Industry Classification Standard (GICS). The move marks a major step in the growth and recognition of REIT-based real estate investment, according to industry observers.
Igor, how do these ETFs work?
On May 21 2013, an unnamed “Russian state-owned news organization” wanted to question more about the NYSE.
Smart-Beta, Small-Cap ETFs Could Outperform
When picking out small-capitalization stock exposure, exchange traded fund investors may be better of with funds based on alternative indices that weed out weaker companies.
Fintech start-ups compete for enrollment in MasterCard Start Path program
MasterCard is set to hold its fourth Innovation Award event in Israel February 16-17, where the best fintech start-ups will have a chance to present their technology to MasterCard Labs before the winner heads in Dublin to compete for the grand prize of enrollment in MasterCard’s new Start Path accelerator.
TransferWise hits $1bn milestone as London FinTech startups attract more cash
Confidence in London’s financial technology startup community, and indeed its wider startup sector, was understandably at an all time high yesterday as another of the City’s rising tech stars completed a funding round reaching a $1bn valuation.
The Man Behind IBM’s Cloud-Based Campaign; Robert LeBlanc, a Big Blue Veteran, to Oversee Businesses Generating About $7 Billion Annually
By Don Clark
Facing an uphill battle to boost revenue, International Business Machines Corp. is mounting a high-stakes campaign to become a top player in cloud services. Now that push has a new point man.
CFTC Orders Florida Resident Anthony Lauria and His Company Gold Coast Bullion, Inc. to Pay More than $9.6 Million in Restitution and a Civil Monetary Penalty in Off-Exchange Precious Metals Fraud
The U.S. Commodity Futures Trading Commission (CFTC) today entered an Order filing and simultaneously settling charges against Anthony Lauria and his company, Gold Coast Bullion, Inc. (GCB), operating out of Fort Lauderdale, Florida, for engaging in illegal, off-exchange precious metals transactions, for committing fraud in connection with those illegal transactions, and for operating GCB as an unregistered Futures Commission Merchant (FCM).
Environmental & Energy
Mr. President, World’s Worst Air Took 6 Hours Off Your Life
By Natalie Obiko Pearson, Bloomberg
U.S. President Barack Obama could lose roughly 6 hours from his expected lifespan after spending three days in India’s capital inhaling the world’s most toxic air.
Oil Trades Near 6-Year Low as OPEC Fails to Turn Focus From Glut
By Rupert Rowling, Bloomberg
Oil traded near the lowest in almost six years in New York as OPEC’s warning that prices may surge without new investment in production failed to shift the market’s focus from more immediate signs of a supply glut.
On climate change, ‘not a scientist’ not enough for some U.S. Republicans
By Valerie Volcovici and Amanda Becker, Reuters
Rick Perry’s farewell speech to the Texas legislature listed the accomplishments expected from an outgoing Republican governor of the country’s largest oil-producing state. But his Jan. 15 speech also did something less predictable: touting his environmental record, from lowering Texas’ carbon emissions to turning the state into a global leader in wind energy production.
Goldman Sachs’s Cohn Says Oil Prices May Hit $30 in Extended Slump
By Elizabeth Dexheimer, Bloomberg
Oil prices will probably continue to decline and could reach as low as $30 a barrel, according to Gary Cohn, president of Goldman Sachs Group Inc.
OPEC’s El-Badri: $200 Oil Possible If There’s Lack of Investment
By Grant Smith, Bloomberg
OPEC’s secretary-general said oil prices as high as $200 a barrel are possible if producers fail to invest in new supply.
What Clampdown? China Margin Traders Boost Debt to Record
By Kyoungwha Kim, Bloomberg
It didn’t take long for the flood of borrowed money to come pouring back into Chinese stocks.
UBS Says Wealthy Asians Are Abandoning Australian Dollars
By Netty Ismailm, Bloomberg
Asia’s wealthy are falling out of love with the Aussie dollar as record-low yields and sustained declines persuade them to look elsewhere, according to UBS Group AG. (UBSG)
SPAN Parameter file which will be applicable from February 2, 2015xls
Japan Commodity Clearing House
Thai Bourse Welcomes Land And Houses Group To “Banker-To-Broker” Project To Boost Quality Investor Base
The Stock Exchange of Thailand (SET), has today welcomed Land and Houses Bank pcl and Land and Houses Securities pcl to SET’s Banker-to-Broker project. It focuses on developing capabilities of financial employees on wealth management, in order to increase SET’s quality investors’ base via more than 120 Land and Houses Bank’s branches nationwide.
Al-Mansoori Stresses the Importance of Disclosure and Transparency for Investors and the Financial Market
Qatar Stock Exchange
Mr. Rashid bin Ali Al-Mansoori, CEO of Qatar Stock Exchange, stressed the importance of disclosure and transparency in the financial market and considered them a vital necessity on which investors build their investment decisions. Al-Mansoori depicted transparency and adequate disclosure as a key element in the success of any financial market to gain the confidence of both individuals and institutional investors.
Dubai Displaces Heathrow as Busiest International Air Hub
By Deena Kamel Yousef, Bloomberg
Dubai ended London Heathrow airport’s decades of dominance as the world’s top international air hub last year, buoyed by surging passenger numbers at local carrier Emirates with its record-breaking fleet of wide-body jets.
Thai Junta Unloading Mountain of Rice Amid World Surplus
By Supunnabul Suwannakij, Bloomberg
In a government building outside Bangkok, along the murky Chao Phraya River, Thailand’s ruling junta is preparing to unload a mountain of rice on an already oversupplied world. And there’s more on the way.
Saudi Stock Market to Open to Foreigners as Planned
By Zahra Hankir and Deema Almashabi, Bloomberg
Saudi Arabia said it’s on track to open the Arab world’s biggest stock market to foreigners in the first half of the year, confirming no change of policy since a new monarch ascended to the throne following King Abdullah’s death.
Exit Order in respect of Gauhati Stock Exchange (GSE) Limited
Moscow Exchange To Increase Price Tick For Certain FX Market Instruments
Effective 2 February Moscow Exchange will increase the price tick for USD/RUB, EUR/RUB and GBP/RUB FX spot instruments to RUB 0.001 from the current tick size of RUB 0.0005.
Should you take financial advice from a celebrity?
ByStan Haithcock, MarketWatch
Celebrity endorsements are nothing new when selling to the masses, so it’s no surprise that financial products are the next category to attempt to piggyback off pop culture.
Bloomberg Shakes Up Newsroom Side of His Company
By RAVI SOMAIYAJAN, NY Times
Things have changed at Bloomberg since its founder, Michael R. Bloomberg, returned to the office.