Futures exchange operator CME Group Inc. on Thursday struck a deal to buy Elysian Systems Ltd., a London company that provides trading systems for over-the-counter derivatives. Get the full story »
Inside these posts: Derivatives
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CME more optimistic on CFTC position limits
The top U.S. futures exchanges expressed confidence that a revised plan to clamp down on commodities market speculation will not unduly burden the market.
The comments on Wednesday by the chief executives of IntercontinentalExchange and CME Group were more optimistic than in the past, when exchanges, banks and other market participants sharply criticized the U.S. Commodity Futures Trading Commission’s plan. Get the full story »
SEC proposes rules for swap dealers
U.S. regulators introduced proposals on Friday that will determine which companies will be forced to hold more cash in order to trade in the lucrative over-the-counter derivatives market. Get the full story »
After setbacks, CME chief stakes out new ground
Craig Donohue. (Yoshikazu Tsuno/AFP/Getty Images)
Bruised by two big setbacks this year, the CME’s Craig Donohue is staking out new ground in a landscape ripped up and reseeded by the financial crisis.
CME Group Inc., the world’s largest operator of derivatives exchanges, was an obvious beneficiary of the crisis as regulators clamped down on over-the-counter swaps markets blamed for the 2007-2009 crisis.
But Chief Executive Donohue’s early attempts to clear credit derivatives and on another front, to block limits on speculative commodities trades, have stumbled. Get the full story »
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 »
CFTC’s Sommers: Position limit rule likely for Dec.
The U.S. futures regulator is unlikely to unveil its new proposal to limit speculative positions until December, a top official of the Commodity Futures Trading Commission told Reuters on Wednesday. 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 »
Tighter derivatives rules gain headway in U.S.
The first global crackdown on the $615 trillion derivatives market gained momentum on Tuesday as U.S. regulators unveiled a new tool to police fraud and European officials urged tighter controls.
Moving to rein in vast, only loosely-regulated markets that were blamed for contributing to the 2007-2008 financial crisis, the U.S. Commodity Futures Trading Commission laid out plans to foil traders who seek to manipulate prices or defraud investors. Get the full story »
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 »
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 »
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 »
CME Group’s August average volume up 15%
Derivatives exchange operator CME Group Inc. said Thursday its August volume averaged 11.7 million contracts per day, a 15 percent increase from a year ago.
Total volume was 258 million contracts, with 82 percent traded electronically.
CME’s OTC business may get overhaul
CME Group Inc’s profitable over-the-counter clearing operations may be headed for an overhaul.
The Commodity Futures Trading Commission is putting pressure on the giant exchange operator to change the way its ClearPort unit handles OTC swaps, two people familiar with recent discussions said.
CME treats many of the OTC swaps — which are bilaterally matched away from the exchange — like its exchange-traded futures, a popular feature that has allowed investors to cross-margin, and thus save money on, the two products for years. The treatment requires CFTC approval. Get the full story »
Trading in OTC interest-rate swaps set to start
Five Chicago trading firms will soon start an exchange to handle trading of over-the-counter interest rate swaps, according to a person familiar with the matter.
Getco LLC, DRW Holding, Infinium Capital Management, Chicago Trading Co. and Nico Holdings LLC received approval for a so-called exempt board of trade from the Commodity Futures Trading Commission several months ago, the source said. Get the full story »
