The head of the largest U.S. options exchange said a regulator report falls short of explaining what happened in the May “flash crash,” adding to skepticism that has grown since it was released October 1. Get the full story »
CME Group
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CME rival gets capital injection, eyes U.S. swaps
ELX Futures said on Thursday its stakeholders recently injected “many millions of dollars” into the small U.S. Treasury futures exchange to help it expand to incorporate over-the-counter swaps and other products.
Neal Wolkoff, chief executive of the year-and-a-half-old market which is trying to take on futures giant CME Group Inc., said they did this in the last 10 days. He called it “a generous amount of money,” but did not say how much. Get the full story »
Cupcake diplomacy? CFTC chief touts ties with SEC
Commodity Futures Trading Commission Chairman Gary Gensler says he’s so close to his counterpart at the Securities and Exchange Commmision that SEC Chief Mary Schapiro gave him a treat a couple weeks back.
“Mary and I talk often,” he told a crowd at the Futures Industry Association’s annual meeting in Chicago. “It was my birthday a few weeks ago. She made me cupcakes. They were good cupcakes too, and they were homemade!”
Schapiro and Gensler have taken great pains to publicly show they are working together instead of feuding over turf, as their agencies historically often did. Get the full story »
CME Group 3Q profit up, in line with Street view
CME Group Inc., the world’s biggest futures exchange operator, said third-quarter profit rose in line with Wall Street expectations, as an increase in trading helped buoy the bottom line.
Net income jumped 21 percent to $244 million, or $3.66 per share, from $202 million, or $3.04 a share, in the year-earlier quarter. Revenue rose 13 percent to $733 million, as trading increased 14 percent. Get the full story »
CME to trade on-the-run Treasury futures contracts
From Bloomberg News | Futures market CME Group Inc. will start trading on-the-run Treasury futures contracts next week that will provide investors exposure to benchmark 2-, 5- and 10-year notes.
CME begins clearing interest rate swaps
CME Group Inc. said on Monday that it had begun clearing interest rate swaps, the largest of the over-the-counter derivatives markets that lawmakers are forcing through more transparent venues.
The giant futures exchange operator named as participants in the clearinghouse five buyside firms, including Fannie Mae, Freddie Mac and PIMCO, and 10 dealers, including Goldman Sachs Group Inc. and JPMorgan Chase and Co. Get the full story »
Russia, CME talk about regional wheat market
Russia is exploring the creation of a regional wheat futures market and this month held talks with senior executives at CME Group Inc., according to a senior official at the Chicago-based exchange operator.
The planned venture would add another global platform for trading alongside Chicago and Paris, serving the fast-growing “bread basket” of Russia, Ukraine and Kazakhstan, which has become an increasingly important source of European food imports. Get the full story »
CME to start trading new rainfall contracts Nov. 1
CME Group Inc. said on Thursday it would launch a new set of rainfall futures and options contracts for traders looking to hedge risk in the agricultural commodities markets.
The new contracts, which will be based on the amount of rainfall in cities such as Chicago, Des Moines, Iowa, New York and the Dallas-Fort Worth area, will start trading on Nov. 1, CME Group said in a statement. Get the full story »
SEC votes on plan to police swaps, derivatives
The top U.S. securities regulator Wednesday took its first stab at policing the $615 trillion over-the-counter derivatives market with a plan to mitigate conflicts of interests at venues that will handle the swaps.
The Securities and Exchange Commission voted 5-0 to propose ownership limits on the swaps trading venues and clearinghouses, which will assume the risk if one party defaults. Get the full story »
Futures traders see no Fed rate hike until 2012
U.S. short-term interest rate futures traders are pricing in little chance the Federal Reserve will start raising interest rates until 2012, after a government report showed the U.S. economy lost more jobs than expected in September.
Traders are pricing in zero chance of an increase in the target rate for overnight lending between banks until December 2011, and are not pricing in a better-than-even chance of an increase until the first quarter of 2012, trading in Fed funds futures at CME Group Inc.’s Chicago Board of Trade shows. Get the full story »
CME Group daily trading volume up in September
CME Group Inc.’s daily trading volume rose in September and the third quarter as a whole, the exchange operator said, continuing a trend of growth. Get the full story »
Report detailing May 6 ‘market failure’ expected this week
As the Securities and Exchange Commission finalizes its report on the May 6 “flash crash,” it is being forced to confront the fallout of its own decisions — which Wall Street sought and cheered — that ushered in an era of fast trading dispersed across dozens of venues.
As recently as this spring, many were applauding the speed, lower costs and competitive nature of the U.S. stock market that largely grew out of a series of policy and technology changes over a decade. “Who could argue that competition was a bad thing . . . and that faster trades would be a bad thing?” asks Joseph Saluzzi, co-head of trading at broker Themis Trading.
But the flash crash, he says, shows there have been “huge, unintended consequences.” Get the full story »
Stock ‘flash crash’ sparked by heavy orders
A surge in quote traffic immediately followed by heavy sales of key securities may have sparked the “flash crash” on U.S. stock markets on May 6, a firm that has provided key insights into that day’s events said on Monday.
The sale of $125 million worth of Chicago Mercantile Exchange S&P500 stock index e-mini futures contracts at 2:42 p.m. on May 6, followed 25 microseconds later by the sale of more than $100 million worth of popular exchange-traded funds (ETFs) appears to have triggered the sell-off, datafeed vendor Nanex LLC said. Get the full story »
CME to offer gold, oil volatility contracts in Q4
CME Group Inc., the biggest U.S. operator of futures exchanges, will offer contracts tied to anticipated price swings in gold and oil starting in the fourth quarter, the exchange said on Tuesday. Get the full story »
Tighter rules for market makers post-’flash crash’
U.S. stock exchanges proposed tighter rules for stock “market makers” Friday meant to ensure they provide more useful liquidity in stressful times such as the May “flash crash.” Get the full story »
