Bloomberg News | Gold futures rose to a record for the ninth time since mid-September as the slumping dollar boosted demand for the precious metal as an alternative investment. Silver reached the highest price since 1980. Get the full story »
Filed under: Exchanges
Visit our Filed page for categories. To browse by specific topic, see our Inside page. For a list of companies covered on this site, visit our Companies page.
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 »
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 »
CFTC’s Gensler sees real-time swaps reports in year
The head of the U.S. futures regulator said Tuesday that mandatory real-time reporting of swaps trades, a key measure to promote market transparency, could begin as early as September 2011.
Gary Gensler, Chairman of the Commodity Futures Trading Commission, has been reluctant to provide details or a timetable for new rules to oversee the swaps markets until recently, but his latest remarks offered some early insight on the agency’s direction. 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 »
CME says ban on ELX rule not anti-competitive
CME Group Inc. told the Commodity Futures Trading Commission that CME’s ban on a type of trade that would help rival ELX Futures LP easily capture business from CME is not anti-competitive.
In a 70-page letter posted on the regulator’s website on Friday, CME asked the CFTC to reconsider its endorsement of so-called exchange for futures trades, or EFFs, repeating its view that there is no compelling reason for it to allow them. Get the full story »
Regulator: CME may need more compliance staff
CME Group Inc., the biggest U.S. operator of futures exchanges, may need to add more staff to adequately oversee its markets, regulators said on Wednesday after a review of CME’s enforcement activities.
CME should review its staff size, report to the Commodity Futures Trading Commission about what it found, and take ongoing steps to make sure staff is “increased appropriately when necessary” to handle more volume and any other relevant developments, the CFTC said after its review. Get the full story »
CME plans soft launch on interest-rate swaps
CME Group Inc., which operates one of the world’s biggest clearinghouses, is planning a soft launch for interest-rate swaps clearing by the end of 2010, its chief financial officer said Tuesday.
CME staffers are working daily with dealers and buy-side market participants to prepare for the launch, CME Chief Financial Officer Jamie Parisi said at a Barclays Capital conference for analysts and investors. Get the full story »
CBOE ‘fairly confident’ in changes to fee-cap plan
The head of CBOE Holdings Inc., the largest U.S. options exchange, said on Tuesday he is “fairly confident there is a reasonable chance” that the regulator will drop products listed on a single exchange from its fee-cap proposal. Get the full story »
CME inadvertently placed test orders Monday
U.S. derivatives exchange operator CME Group Inc. inadvertently placed dummy test orders into its active energy and metals markets on the CME Globex platform for about 6 minutes on Monday afternoon. Get the full story »
Russell 1000, ETFs added to ‘flash crash’ halts
The Securities and Exchange Commission adopted new rules Friday to expand the trading halts it implemented after the May 6 “flash crash” and to harmonize stock exchanges’ procedures for breaking erroneous trades. Get the full story »
BP booted from ethical investment index
BP Plc will be evicted from the FTSE4Good ethical investment index after its Gulf of Mexico oil spill, index compiler FTSE said Friday, as BP said it would delay its third-quarter results due to the challenges of accounting for spill costs.
FTSE said BP would be dropped from FTSE4Good, which many managers of ethical funds use to screen companies before including them in their portfolios, Sept. 18, citing a FTSE policy committee. Get the full story »
CBOE Futures Exchange launches first VIX options
CBOE Futures Exchange LLC said early on Thursday that it will launch its first weekly options on its volatility futures contract, which would expand the exchange’s portfolio of derivative contracts tied to market volatility. Get the full story »
Sep. 8, 2010 at 2:12 p.m.
Comments Off
Filed under: Exchanges, Government, Investigations, Markets, Regulations, Stock activity SEC looks at stub quote ban after flash crash
Regulators probing the stock market “flash crash” in May still have not uncovered a single cause but will point to “stub quotes” and other previously identified issues as having exacerbated the market’s dramatic drop, according to two sources familiar with the probe.
A third source said the Securities and Exchange Commission is still asking about a “smoking gun” that might explain the May 6 crash, when the Dow Jones industrial average plunged some 700 points before sharply recovering, all in about 20 minutes. Get the full story »
