IntercontinentalExchange (NYSE:ICE) , in accordance with the terms of its agreement with Intelligence Press, Inc. (IPI), ICE will have the exclusive right to license the natural gas indices published in the Natural Gas Intelligence (NGI) newsletters for exchange settlement and clearing beginning May 1, 2009.
ICE contracts referencing NGI indices and delivery points do not require modification as the exclusivity period takes effect. Market participants with existing positions benchmarked to NGI data who wish to maintain their positions may transfer open interest to ICE using ICE's block trade capabilities.
In March 2007, ICE entered into a purchase and leaseback agreement with IPI for the exclusive right to license the NGI indices. IPI continues to collect, aggregate and publish prices in the wholesale natural gas market. In addition to providing daily and monthly spot price discovery for the industry, NGI's indices are used by ICE and other licensees for daily and monthly settlement and clearing, particularly in the Canadian, Midwest and California natural gas markets.
Showing posts with label markets. Show all posts
Showing posts with label markets. Show all posts
Monday, 5 January 2009
Friday, 7 November 2008
Tradeweb Upgrades CDS Indices Marketplaces
Tradeweb, upgraded its marketplaces in the U.S. and Europe for Credit Default Swap Indices. As a result, clients will be able to view real-time composite prices, and efficiently execute and process trades for the major CDS indices. The U.S. market is live, with Europe expected to launch in January 2009.
This initiative supports the goals voiced by financial regulators in recent weeks by providing increased price transparency, a marketplace for electronic trading and connectivity to relevant third parties for electronic processing and legal confirmation of CDS index trades.
The new marketplaces will benefit institutional clients by:
-- Providing access to the liquidity of leading CDS dealers;
-- Displaying real-time, indicative composite two-way pricing for the major U.S. and European CDS indices;
-- Providing connectivity to key third parties, including DTCC Deriv/SERV (and the Trade Information Warehouse), and order management systems where relevant;
-- Maintaining a full audit trail on all trades;
-- Electronically capturing trade details in real-time, using the Tradeweb API messaging service;
-- Providing access to AccountNet, Tradeweb's leading derivatives account database to maintain accurate settlement instructions and deliver electronic allocations to dealers.
These CDS Index marketplaces offer a broad level of commitment from the major dealers, sophisticated new trading protocols for institutional clients and real-time pricing to provide a high degree of market transparency. They demonstrate Tradeweb's ability to evolve the electronic trading environment to meet changing market needs.
The markets will provide a new trading protocol, "Request-for-Market," in addition to enhanced "Request-for-Quote" functionality, pioneered by Tradeweb in the late-1990s. RFM allows a client to request a two-sided market and negotiate interactively with a single dealer, while RFQ allows clients to request a price from up to four dealers simultaneously.
"We have been working with the buy-side and supporting dealers for months to bring an enhanced electronic marketplace for trading CDS indices. Especially given the current market turmoil, we are confident that Tradeweb's inherent transparency and efficiency for OTC markets will provide a compelling trading mechanism for the market," said Lee Olesky, CEO of Tradeweb.
"As one of the leading CDS dealers, we are keen to provide solutions that allow our clients to trade more effectively. We support the growth of electronic trading as it provides for a more efficient marketplace and look forward to using Tradeweb as a distribution channel for better servicing our clients in the CDS market," said Eraj Shirvani, Head of European Credit at Credit Suisse and Chairman of the International Swaps and Derivatives Association.
"We are proud to support CDS index trading on the Tradeweb platform," said Rob Milam, Managing Director, Head of North American High Grade Credit Trading at J.P. Morgan. "It will allow us to expand our client service and provide another efficient trading and settlement process."
"We believe the liquidity that clients will find on Tradeweb will prove to be very compelling, and the capabilities for automated trade booking will benefit all market participants," said Brian Walter, Managing Director, Head of U.S. Credit Index Trading at UBS.
"Tradeweb has successfully introduced greater transparency and efficiency to the fixed income and derivatives markets over the past decade," said Vic Simone, Managing Director of Goldman Sachs and Chairman of Tradeweb. "It makes sense that they are leading the way in providing the same kind of benefits to the CDS market."
This initiative supports the goals voiced by financial regulators in recent weeks by providing increased price transparency, a marketplace for electronic trading and connectivity to relevant third parties for electronic processing and legal confirmation of CDS index trades.
The new marketplaces will benefit institutional clients by:
-- Providing access to the liquidity of leading CDS dealers;
-- Displaying real-time, indicative composite two-way pricing for the major U.S. and European CDS indices;
-- Providing connectivity to key third parties, including DTCC Deriv/SERV (and the Trade Information Warehouse), and order management systems where relevant;
-- Maintaining a full audit trail on all trades;
-- Electronically capturing trade details in real-time, using the Tradeweb API messaging service;
-- Providing access to AccountNet, Tradeweb's leading derivatives account database to maintain accurate settlement instructions and deliver electronic allocations to dealers.
These CDS Index marketplaces offer a broad level of commitment from the major dealers, sophisticated new trading protocols for institutional clients and real-time pricing to provide a high degree of market transparency. They demonstrate Tradeweb's ability to evolve the electronic trading environment to meet changing market needs.
The markets will provide a new trading protocol, "Request-for-Market," in addition to enhanced "Request-for-Quote" functionality, pioneered by Tradeweb in the late-1990s. RFM allows a client to request a two-sided market and negotiate interactively with a single dealer, while RFQ allows clients to request a price from up to four dealers simultaneously.
"We have been working with the buy-side and supporting dealers for months to bring an enhanced electronic marketplace for trading CDS indices. Especially given the current market turmoil, we are confident that Tradeweb's inherent transparency and efficiency for OTC markets will provide a compelling trading mechanism for the market," said Lee Olesky, CEO of Tradeweb.
"As one of the leading CDS dealers, we are keen to provide solutions that allow our clients to trade more effectively. We support the growth of electronic trading as it provides for a more efficient marketplace and look forward to using Tradeweb as a distribution channel for better servicing our clients in the CDS market," said Eraj Shirvani, Head of European Credit at Credit Suisse and Chairman of the International Swaps and Derivatives Association.
"We are proud to support CDS index trading on the Tradeweb platform," said Rob Milam, Managing Director, Head of North American High Grade Credit Trading at J.P. Morgan. "It will allow us to expand our client service and provide another efficient trading and settlement process."
"We believe the liquidity that clients will find on Tradeweb will prove to be very compelling, and the capabilities for automated trade booking will benefit all market participants," said Brian Walter, Managing Director, Head of U.S. Credit Index Trading at UBS.
"Tradeweb has successfully introduced greater transparency and efficiency to the fixed income and derivatives markets over the past decade," said Vic Simone, Managing Director of Goldman Sachs and Chairman of Tradeweb. "It makes sense that they are leading the way in providing the same kind of benefits to the CDS market."
Thursday, 30 October 2008
Tradeweb
Tradeweb is a leading over-the-counter, multi-asset class online marketplace, and a pioneer in the development of electronic trading and trade processing. The company provides services in the fixed income, derivative, and equity markets to clients in more than 50 countries. Since 1998, Tradeweb has operated a global trading network, which harnesses the distribution of the major investment banks with over 2,000 institutional clients. With its expansion into the equity markets, Tradeweb is leveraging AutEx, the industry leader for 40 years in providing indications of interests, and Tradeweb Routing Network, a global FIX network with more than 7,000 connections to over 750 firms. Tradeweb is owned by Thomson Reuters and nine leading global dealers.
NYSE and SunGard
The NYSE, a subsidiary of NYSE Euronext (NYX), is providing market data, news and alerting capabilities for NYSE listed companies through its NYSE Market Access Center(SM) using data management solutions jointly developed with SunGard. NYSE's Market Access Center Alerts provide real-time access to trading information and news driving today's dynamic markets. The service uses SunGard's Fame real-time data feed, charting and reporting capabilities, news management system and a new complex alerting system to deliver results to issuers' wireless devices. SunGard also provided consulting services including project management, requirements analysis, and change management; integration expertise in terms of connectivity and ASP delivery, user acceptance testing and final launch.
Joseph Mecane, executive vice president of NYSE Euronext, said, "NYSE's market information tools are a key component of our value proposition to listed companies and this is a significant enhancement to our growing suite of services. We chose SunGard as our partner due to its experience and expertise which has helped us to launch NYSE Market Access Center Alerts. With Fame, we are able to deliver relevant, complex alerting to busy investor relations and chief financial officers with the flexibility to incorporate additional data sources in the future."
For NYSE, SunGard's Fame delivers results based on real-time pricing data from North American exchanges and news from Dow Jones Newswires to NYSE's issuers' desktops and wireless devices. Fame's new complex alerting capability goes beyond 'new news' and 'limit quote' alerts to provide customizable alarm triggers and delivery. It maps news to the movement of prices and volumes on securities and, as customized by the user, provides updates on stock rating changes, earnings announcements, merger and acquisition activity and companies added or removed from major indices. Fame's market data, news and alerting capabilities provided to NYSE are fully hosted by SunGard, helping NYSE reduce maintenance and support, ensure 24/7 availability, and meet time-to-market objectives on new offerings.
Developed using SunGard's Common Services Architecture (CSA)*, Fame can be deployed as an end-to-end data management solution or as individual components for real-time and time series market data, historical financial data management, desktop solutions, data delivery via HTML, XML or dynamic Java-based content, analytical modelling tools, and managed data services.
Janet Crowley, general manager of SunGard's Fame business unit, said, "SunGard's financial data solutions provide a solid foundation for NYSE's expanded service offerings and sustained leadership in market intelligence services. Through consolidated feeds and flexible delivery methods, SunGard helps NYSE to focus on enhancing the end-user experience by providing timely, unique and customized information, and actionable alerts based on a meaningful combination of market events."
Joseph Mecane, executive vice president of NYSE Euronext, said, "NYSE's market information tools are a key component of our value proposition to listed companies and this is a significant enhancement to our growing suite of services. We chose SunGard as our partner due to its experience and expertise which has helped us to launch NYSE Market Access Center Alerts. With Fame, we are able to deliver relevant, complex alerting to busy investor relations and chief financial officers with the flexibility to incorporate additional data sources in the future."
For NYSE, SunGard's Fame delivers results based on real-time pricing data from North American exchanges and news from Dow Jones Newswires to NYSE's issuers' desktops and wireless devices. Fame's new complex alerting capability goes beyond 'new news' and 'limit quote' alerts to provide customizable alarm triggers and delivery. It maps news to the movement of prices and volumes on securities and, as customized by the user, provides updates on stock rating changes, earnings announcements, merger and acquisition activity and companies added or removed from major indices. Fame's market data, news and alerting capabilities provided to NYSE are fully hosted by SunGard, helping NYSE reduce maintenance and support, ensure 24/7 availability, and meet time-to-market objectives on new offerings.
Developed using SunGard's Common Services Architecture (CSA)*, Fame can be deployed as an end-to-end data management solution or as individual components for real-time and time series market data, historical financial data management, desktop solutions, data delivery via HTML, XML or dynamic Java-based content, analytical modelling tools, and managed data services.
Janet Crowley, general manager of SunGard's Fame business unit, said, "SunGard's financial data solutions provide a solid foundation for NYSE's expanded service offerings and sustained leadership in market intelligence services. Through consolidated feeds and flexible delivery methods, SunGard helps NYSE to focus on enhancing the end-user experience by providing timely, unique and customized information, and actionable alerts based on a meaningful combination of market events."
Tuesday, 14 October 2008
Knight Capital Derivatives Platform
Knight Capital Group, Inc. (NASDAQ:NITE) today introduced NetDelta(TM), an electronic settlement platform for the credit derivatives market. NetDelta addresses market infrastructure inefficiencies and underlying risks inherent in OTC derivatives by providing buy- and sell-side firms with comprehensive, real-time solutions for entering, maintaining and exiting new positions. NetDelta will also be able to reduce counterparty risk for existing positions in the near future.
"NetDelta was designed to address unnecessary counterparty risk, balance sheet inefficiencies, settlement lags, valuation issues and a lack of liquidity," said Lucio Biase, Managing Director, NetDelta, LLC. "NetDelta provides the automation and infrastructure the $54.6 trillion credit derivatives market needs."
The NetDelta solution benefits traders, prime brokerages, risk managers, controllers and settlement groups. It is applicable to new trades and will soon be applicable to existing positions in a firm's portfolio as well. The NetDelta offering also addresses many of the key principles recently set forth by the Operations Management Group (OMG) and President's Working Group (PWG) - both of which aim to instill a clear, functional and well-designed infrastructure that can meet the needs of the OTC derivatives markets.
"We are excited to bring NetDelta to the OTC derivatives markets in these challenging times," said Thomas M. Joyce, Chairman and Chief Executive Officer, Knight Capital Group. "We believe NetDelta is an ideal solution for the entire lifecycle of credit derivative trades. Importantly, the NetDelta solution supports the credit derivative market makers who are so vital to the health of the market."
The platform's modular technology allows for simple integration into existing trading platforms, settlement services and reporting engines. In addressing market infrastructure and legacy issues, the NetDelta solution renders unwinds and novations obsolete for positions cleared on NetDelta. NetDelta also allows for greater transparency of the value of each position without disclosing pivotal market making data. At present, NetDelta is internally beta testing the platform and in the process of onboarding clients.
"NetDelta was designed to address unnecessary counterparty risk, balance sheet inefficiencies, settlement lags, valuation issues and a lack of liquidity," said Lucio Biase, Managing Director, NetDelta, LLC. "NetDelta provides the automation and infrastructure the $54.6 trillion credit derivatives market needs."
The NetDelta solution benefits traders, prime brokerages, risk managers, controllers and settlement groups. It is applicable to new trades and will soon be applicable to existing positions in a firm's portfolio as well. The NetDelta offering also addresses many of the key principles recently set forth by the Operations Management Group (OMG) and President's Working Group (PWG) - both of which aim to instill a clear, functional and well-designed infrastructure that can meet the needs of the OTC derivatives markets.
"We are excited to bring NetDelta to the OTC derivatives markets in these challenging times," said Thomas M. Joyce, Chairman and Chief Executive Officer, Knight Capital Group. "We believe NetDelta is an ideal solution for the entire lifecycle of credit derivative trades. Importantly, the NetDelta solution supports the credit derivative market makers who are so vital to the health of the market."
The platform's modular technology allows for simple integration into existing trading platforms, settlement services and reporting engines. In addressing market infrastructure and legacy issues, the NetDelta solution renders unwinds and novations obsolete for positions cleared on NetDelta. NetDelta also allows for greater transparency of the value of each position without disclosing pivotal market making data. At present, NetDelta is internally beta testing the platform and in the process of onboarding clients.
National Stock Exchange Connectivity and Portware
National Stock Exchange, Inc. (NSX(R)) today announced that it has opened another line of connectivity to its marketplace through Portware, enabling Portware's diverse customer base to gain immediate and direct access to NSX's markets. Portware is a leading provider of multi-asset, automated and algorithmic trading software and solutions to the global securities marketplace.
"Through NSX's connectivity with Portware, both buy-side and sell-side customers will be able to take advantage of NSX's liquidity, low latency, and highly competitive pricing," said James Kearney, NSX Senior Vice President, Business Development and Client Relations. "NSX will continue to add these key connections for its customers as we remain committed to meeting the needs of the marketplace."
Eric Goldberg, CEO, Portware, adds: "Portware provides clients with unparalleled access to trading destinations worldwide. The NSX represents a valuable addition to the 300 plus destinations available via Portware, and I am sure that our clients will benefit greatly from this partnership."
"Through NSX's connectivity with Portware, both buy-side and sell-side customers will be able to take advantage of NSX's liquidity, low latency, and highly competitive pricing," said James Kearney, NSX Senior Vice President, Business Development and Client Relations. "NSX will continue to add these key connections for its customers as we remain committed to meeting the needs of the marketplace."
Eric Goldberg, CEO, Portware, adds: "Portware provides clients with unparalleled access to trading destinations worldwide. The NSX represents a valuable addition to the 300 plus destinations available via Portware, and I am sure that our clients will benefit greatly from this partnership."
Friday, 10 October 2008
CME and Reuters to Close FXMarketSpace
CME Group and Thomson Reuters today announced that they will take steps necessary to close FXMarketSpace, the 50/50 joint venture company they introduced in May 2006. All trading on the platform will be suspended at the close of business on 17 October, 2008. During the coming months, CME Group and Thomson Reuters will work closely with FXMarketSpace to ensure an orderly wind down of existing business operations.
Both CME Group's FX futures business and Thomson Reuters FX Spot Matching services continue to reflect strong growth in their respective product lines. CME Group and Thomson Reuters remain committed to offering innovative solutions to the rapidly-growing OTC FX market, and the two companies will explore working together to pursue clearing and operational efficiencies for their customers.
Both CME Group's FX futures business and Thomson Reuters FX Spot Matching services continue to reflect strong growth in their respective product lines. CME Group and Thomson Reuters remain committed to offering innovative solutions to the rapidly-growing OTC FX market, and the two companies will explore working together to pursue clearing and operational efficiencies for their customers.
Monday, 6 October 2008
Markets Crash Around The World
Today has been another crazy day on the markets. On Wall Street the Dow Jones closed 363.35 points or 3.5% at 9,962. Although a massive shock, that was a remarkable recovery having seen the index be on target for a jaw-dropping record of 800 points, beating last weeks 777 point drop.
The broader S&P 500 also fell by 3.8%.
Gloom shifted from American banks to Europe with the disjointed and messy response from the continent's governments. The U.S. Government in the shape of the Federal Reserve. would significantly expand the amount of money it made available to major banks. The Fed will now lend up to $900 billion in credit. The sheer size of the new figure, they hope will reassure the markets.
London, did not recover from its own massive fall off a cliff. The Flagship FTSE 100 fell by 391 points or 7.85%. This represents the largest ever points drop and the third largest in percentage terms since its launch in 1987.
The broader S&P 500 also fell by 3.8%.
Gloom shifted from American banks to Europe with the disjointed and messy response from the continent's governments. The U.S. Government in the shape of the Federal Reserve. would significantly expand the amount of money it made available to major banks. The Fed will now lend up to $900 billion in credit. The sheer size of the new figure, they hope will reassure the markets.
London, did not recover from its own massive fall off a cliff. The Flagship FTSE 100 fell by 391 points or 7.85%. This represents the largest ever points drop and the third largest in percentage terms since its launch in 1987.
Monday, 29 September 2008
Shock Defeat for Bailout In House of Representatives
House Votes Down $700bn Bailout
The US House of Representatives has voted by 228 to 205 down the $700bn bailout agreed over the weekend. Two-thirds of Republicans and 95 Democrats rejected the deal.
A massive drop in the Dow Jones ensued with a 778 point decline. After the close the percentage was 7.7%. The S&P 500 suffered its biggest percentage drop since Black Monday in 1987.
The FTSE dropped 270 points or 5.3%.
Other Market Moves
Three governments, the Dutch, Belgian and Luxembourg pumped €11bn into Fortis bank. Fortis for its part will have to sell its stake in the ABN Ambro bank.
French bank Dexis has become the latest target of speculators. Dexia handles a lot of the finance for local government. The French government made the now obligatory statement tha the bank would not be allowed to fail.
Wachovia, another bank under attack has been swallowed by Citigroup in a government backed deal..
The UK government is nationalising the Bradford and Bingley bank. Spanish banking giant Santander is to take the savings business and branch network.
The US House of Representatives has voted by 228 to 205 down the $700bn bailout agreed over the weekend. Two-thirds of Republicans and 95 Democrats rejected the deal.
A massive drop in the Dow Jones ensued with a 778 point decline. After the close the percentage was 7.7%. The S&P 500 suffered its biggest percentage drop since Black Monday in 1987.
The FTSE dropped 270 points or 5.3%.
Other Market Moves
Three governments, the Dutch, Belgian and Luxembourg pumped €11bn into Fortis bank. Fortis for its part will have to sell its stake in the ABN Ambro bank.
French bank Dexis has become the latest target of speculators. Dexia handles a lot of the finance for local government. The French government made the now obligatory statement tha the bank would not be allowed to fail.
Wachovia, another bank under attack has been swallowed by Citigroup in a government backed deal..
The UK government is nationalising the Bradford and Bingley bank. Spanish banking giant Santander is to take the savings business and branch network.
Friday, 26 September 2008
Barclays Makes Entrance on NYSE
Barclays Capital announced today that following its acquisition of various assets of Lehman Brothers, it has opened as a market maker on the floor of the New York Stock Exchange (NYSE).
Barclays Capital will now act as a market maker for more than 400 NYSE-listed issues including 300 operating companies. In addition, it has employed the staff and taken over the technology of Lehman Brothers MarketMakers.
"Barclays Capital is a recognized leader in global finance, and we are extremely pleased to welcome them as NYSE Specialists," said Larry Leibowitz, Group Executive Vice President, Head of U.S. Markets and Global Technology, NYSE Euronext.
"We are delighted to have opened as a market maker on the NYSE so quickly after Lehman Brothers' bankruptcy," said Bill White, Head of Barclays Capital market maker business. "I would like to thank the NYSE and other regulators who have worked with us tirelessly to allow us to open today. We look forward to working with our clients and other market makers to provide clear, orderly and transparent pricing."
Specialists differentiate the NYSE market and contribute to the exchange's superior market quality and liquidity, and are integral in times of unusual market stress and volatility. In addition to Barclays, NYSE Designated Market Makers include: Banc of America Specialist; Bear Wagner Specialists LLC; LaBranche & Co. LLC; Spear, Leeds & Kellogg Specialists LLC; and Kellogg Specialist Group.
Barclays Capital will now act as a market maker for more than 400 NYSE-listed issues including 300 operating companies. In addition, it has employed the staff and taken over the technology of Lehman Brothers MarketMakers.
"Barclays Capital is a recognized leader in global finance, and we are extremely pleased to welcome them as NYSE Specialists," said Larry Leibowitz, Group Executive Vice President, Head of U.S. Markets and Global Technology, NYSE Euronext.
"We are delighted to have opened as a market maker on the NYSE so quickly after Lehman Brothers' bankruptcy," said Bill White, Head of Barclays Capital market maker business. "I would like to thank the NYSE and other regulators who have worked with us tirelessly to allow us to open today. We look forward to working with our clients and other market makers to provide clear, orderly and transparent pricing."
Specialists differentiate the NYSE market and contribute to the exchange's superior market quality and liquidity, and are integral in times of unusual market stress and volatility. In addition to Barclays, NYSE Designated Market Makers include: Banc of America Specialist; Bear Wagner Specialists LLC; LaBranche & Co. LLC; Spear, Leeds & Kellogg Specialists LLC; and Kellogg Specialist Group.
Monday, 22 September 2008
Turquoise Launched Formally
Turquoise, the pan-European equity trading platform backed by nine of Europe's leading investment banks, was officially launched at an 'Opening Bell' ceremony by Peter Gibbs, Chairman and Eli Lederman, Chief Executive in the Turquoise offices at 8am this morning.
The ringing of the Turquoise Bell, cast nearby at the Whitechapel Bell Foundry - Britain's oldest continuously operated manufacturing company - heralds Turquoise's formal opening. The bell symbolises the traditional values of reliability and integrity that have characterised successful exchanges through history, and informs the market that while Turquoise operates the most sophisticated modern technology it recognises its role at the centre of capital markets.
Over the last five weeks, Turquoise has added stocks and countries in a planned, deliberate process to ensure its orderly adoption by members and its integration with other components of market infrastructure. The formal opening today represents the end of this rollout, and the start of a new phase in the development of the Turquoise market. Turquoise's unique market model offers valuable liquidity to traders of small orders at high frequency and dark orders in institutional size.
The ringing of the Turquoise Bell, cast nearby at the Whitechapel Bell Foundry - Britain's oldest continuously operated manufacturing company - heralds Turquoise's formal opening. The bell symbolises the traditional values of reliability and integrity that have characterised successful exchanges through history, and informs the market that while Turquoise operates the most sophisticated modern technology it recognises its role at the centre of capital markets.
Over the last five weeks, Turquoise has added stocks and countries in a planned, deliberate process to ensure its orderly adoption by members and its integration with other components of market infrastructure. The formal opening today represents the end of this rollout, and the start of a new phase in the development of the Turquoise market. Turquoise's unique market model offers valuable liquidity to traders of small orders at high frequency and dark orders in institutional size.
Bailout Euphoria Fades
Euphoria in the financial markets about Hank Paulson's plan to buy toxic debts faded today with the Dow Jones falling 372 points or 3.27%. The S&P 500 dropped 3.8%.
The bailout has to be ratified by Congress where it has been met with incredulity and a desire to load up the legislation with additional items. Help for subprime mortgage holders and regulation on executive bonus are seen as hot items by many Democrats.
In other markets the oil price spiked to close $16 up at more than $!30.
Bank of America, Citigroup, Merrill Lynch and Wachovia all traded lower as investors continued to shun financials. Morgan Stanley kept above water following Mitsubishi UFJ taking a stake.
Goldman Sachs and Morgan Stanley both made the historic decision to become bank holding companies. This enables the banks to take deposits and have access to Federal funds.
The bailout has to be ratified by Congress where it has been met with incredulity and a desire to load up the legislation with additional items. Help for subprime mortgage holders and regulation on executive bonus are seen as hot items by many Democrats.
In other markets the oil price spiked to close $16 up at more than $!30.
Bank of America, Citigroup, Merrill Lynch and Wachovia all traded lower as investors continued to shun financials. Morgan Stanley kept above water following Mitsubishi UFJ taking a stake.
Goldman Sachs and Morgan Stanley both made the historic decision to become bank holding companies. This enables the banks to take deposits and have access to Federal funds.
Exegy, Inc., a public website that tracks real-time market data rates every second of every trading day.
Called MarketDataPeaks.com (http://www.marketdatapeaks.com/), the new site provides a minute-by-minute account of the aggregated volume of market data messages across major North American exchanges. The site highlights the peaks from the current day as well as historic peaks.
"This site is designed to provide unique information on peaks in market data to the financial community -- trading firms, exchanges and regulators," says Jeff Wells, V.P., Product Management at Exegy. "It will help executives stay on top of market data issues and plan for the future."
The historic data will be captured and included in the Financial Information Forum's capacity statistics as part of the organization's collaborative efforts to address issues that impact financial technology operations and development in light of rapid changes occurring in the marketplace.
"We look forward to giving our members insight into market data peaks based on Exegy's aggregated feed data," says Manisha Kimmel, Executive Director of FIF. "Including this unique data as part of the FIF Market Data Capacity Working Group discussions will allow us to further assist our members in planning and provisioning for market data growth."
All data are processed and updated through a single Exegy Ticker Plant in a New York City colocation facility managed by Xasax Corporation. Xasax is a Vendor of Record and Service Bureau, providing end-to-end trading system infrastructure for smaller hedge funds, proprietary trading desks, and financial service providers.
MarketDataPeaks.com features the total number of messages that occur simultaneously in any given second across all live data feeds including NYSE/SIAC, NASDAQ, OPRA, ARCA, BATS and Direct Edge, both Level 1 and 2. The graph displays the highest one-second peak that occurs in each minute. The graph on the site's home page automatically updates every minute.
Called MarketDataPeaks.com (http://www.marketdatapeaks.com/), the new site provides a minute-by-minute account of the aggregated volume of market data messages across major North American exchanges. The site highlights the peaks from the current day as well as historic peaks.
"This site is designed to provide unique information on peaks in market data to the financial community -- trading firms, exchanges and regulators," says Jeff Wells, V.P., Product Management at Exegy. "It will help executives stay on top of market data issues and plan for the future."
The historic data will be captured and included in the Financial Information Forum's capacity statistics as part of the organization's collaborative efforts to address issues that impact financial technology operations and development in light of rapid changes occurring in the marketplace.
"We look forward to giving our members insight into market data peaks based on Exegy's aggregated feed data," says Manisha Kimmel, Executive Director of FIF. "Including this unique data as part of the FIF Market Data Capacity Working Group discussions will allow us to further assist our members in planning and provisioning for market data growth."
All data are processed and updated through a single Exegy Ticker Plant in a New York City colocation facility managed by Xasax Corporation. Xasax is a Vendor of Record and Service Bureau, providing end-to-end trading system infrastructure for smaller hedge funds, proprietary trading desks, and financial service providers.
MarketDataPeaks.com features the total number of messages that occur simultaneously in any given second across all live data feeds including NYSE/SIAC, NASDAQ, OPRA, ARCA, BATS and Direct Edge, both Level 1 and 2. The graph displays the highest one-second peak that occurs in each minute. The graph on the site's home page automatically updates every minute.
Monday, 15 September 2008
IntercontinentalExchange Claims No Lehman Exposure
IntercontinentalExchange (NYSE:ICE) , an operator of global regulated exchanges and over-the- counter (OTC) markets, confirmed that Lehman Brothers continues to meet all obligations at its U.S. futures clearinghouse.
ICE Clear U.S. has conducted an analysis of Lehman's financial position as a clearing member of ICE Clear U.S.(TM), and has concluded that it continues to meet all obligations. ICE and Creditex also said that receivables relating to Lehman are immaterial.
ICE Clear U.S. has conducted an analysis of Lehman's financial position as a clearing member of ICE Clear U.S.(TM), and has concluded that it continues to meet all obligations. ICE and Creditex also said that receivables relating to Lehman are immaterial.
Thursday, 11 September 2008
Babson Capital Management Award
Babson Capital Management has been named 2008 Best Cash CDO Manager by Creditflux magazine, the second straight year it has earned the recognition despite drastically different market conditions.
Creditflux, based in London, is a leading information source worldwide for the credit derivatives and structured-credit markets, publishing a monthly newsletter, online daily news and a comprehensive database of collateralized debt obligations. The magazine uses comprehensive data analysis exclusively to determine its honorees, and the award is based purely on quantitative performance metrics. More than 300 CDOs were submitted for recognition this year. The magazine's inaugural awards were issued in September 2007.
"We are delighted to be named Best Cash CDO Manager for the second year in a row. It is a great honor and recognizes the hard work by the many skilled individuals within Babson Capital," said Thomas Finke, President of Babson Capital. "The recognition for our overall performance versus our peers speaks for the quality and consistency across our firm."
"It has been a difficult 12 months since the last awards," Creditflux noted in its August issue when nominees were announced. "New CDO issuance has plummeted ... But, as these finalists show, this has not prevented many managers [from] providing strong returns for their investors ... Asset managers are looking to the future, and are eager to show the world just how good their track record is."
The nominations for individual awards included the Duchess V CLO, nominated as Best European cash CLO - seasoned, and Duchess VI CLO, nominated as Best European cash CLO - recent, both managed by Babson Capital Europe, a subsidiary of Babson Capital based in London. The Babson CLO 2007-I, managed by the U.S. Bank Loan Team in Charlotte, N.C., was nominated as Best Cash CLO - recent.
For the Best Cash CDO Manager award, all deals that a firm had under management were compared with its peers. Through its CDO/CLO businesses in Springfield, Mass., and Charlotte and Babson Capital Europe, the firm manages more than $22 billion in 57 CDOs as of June 30, 2008.
Creditflux, based in London, is a leading information source worldwide for the credit derivatives and structured-credit markets, publishing a monthly newsletter, online daily news and a comprehensive database of collateralized debt obligations. The magazine uses comprehensive data analysis exclusively to determine its honorees, and the award is based purely on quantitative performance metrics. More than 300 CDOs were submitted for recognition this year. The magazine's inaugural awards were issued in September 2007.
"We are delighted to be named Best Cash CDO Manager for the second year in a row. It is a great honor and recognizes the hard work by the many skilled individuals within Babson Capital," said Thomas Finke, President of Babson Capital. "The recognition for our overall performance versus our peers speaks for the quality and consistency across our firm."
"It has been a difficult 12 months since the last awards," Creditflux noted in its August issue when nominees were announced. "New CDO issuance has plummeted ... But, as these finalists show, this has not prevented many managers [from] providing strong returns for their investors ... Asset managers are looking to the future, and are eager to show the world just how good their track record is."
The nominations for individual awards included the Duchess V CLO, nominated as Best European cash CLO - seasoned, and Duchess VI CLO, nominated as Best European cash CLO - recent, both managed by Babson Capital Europe, a subsidiary of Babson Capital based in London. The Babson CLO 2007-I, managed by the U.S. Bank Loan Team in Charlotte, N.C., was nominated as Best Cash CLO - recent.
For the Best Cash CDO Manager award, all deals that a firm had under management were compared with its peers. Through its CDO/CLO businesses in Springfield, Mass., and Charlotte and Babson Capital Europe, the firm manages more than $22 billion in 57 CDOs as of June 30, 2008.
Tuesday, 9 September 2008
Trading Metrics
Trading Metrics (TM) Inc. is a privately held company with venture-backed funding from VantagePoint Partners. The company was founded to help brokers build and deploy latency tracking systems. In 2007, Trading Metrics accepted venture funding to expand its offerings and to address the requirements of the Capital Market sector for a software platform that is quickly deployed, easily expandable and globally available. In 2008, Trading Metrics launched two products: Trading Latency Metrics (TM) to track the speed of trade handling and executions, and Market Latency Metrics(TM) to detect latency in Market Data and data distribution systems. Market Latency Metrics is resold worldwide by Reuters(TM) who markets the solution as Reuters Latency Monitor.
Friday, 4 April 2008
Trading Glossary
aMembers or their customers.
3
Floor Trader
Also known as a "local". Exchange member who only trades for his own account.
Futures
All contracts covering purchase and sale of financial instruments or physical commodities for future delivery on a commodity futures exchange.
3
GAAP
Generally Accepted Accounting Principles.
Hedge
Strategy to limit investment loss by effecting a transaction which offsets an existing position.
Holder
Purchaser of an option
IFRS
International Financial Reporting Standards
IFRS 3
Accounting standard for "business combinations" or Merger and Acquisitions transactions. First standard written jointly by International Accounting Standards Board and the U.S. Financial Accounting Standards Board.
Initial Performance Bond
Also known as "Initial Margin". Funds required when a futures position is opened.
Integrity and Ethics
Reside under the Control Environment. The senior management need to set the tone for the company. Whilst they might be considered "soft" and "intangible" concepts, they affect the design, administration and monitoring of
Negative examples of integrity and ethics are the infamous Enron and WorldCom scandals.
A positive example is BP which sets a high bar for ethical behaviour by employees. To back this policy up they make mention of it and its effectiveness in financial reports.
In-the-money
Occurs if the strike price of a call option is less than the market price of the underlying security. For put options the strike price has to be higher than the market price of the underlying security for it to be in-the money.p>Intrinsic Value
Amount by which an option is in-the-money.
ISDA
International Swaps and Derivatives Association
LTCM
Long Term Capital Management
Margin Requirement for Options
Amount an uncovered (naked) option writer is required to deposit and maintain to cover a position. Calculated
Market Order
Order for immediate execution given to a broker to buy or sell at the best obtainable price.
Mark-To-Market
Daily adjustment of margin accounts to reflect profit and loss.
MD&A
Management's Disclosure and Analysis
Mezzanine
When applied to finance refers to moderate risk or mid level.
Minimum Price Fluctuation
Smallest increment of price movement possible in trading a given contract. It is also referred to as "lead month".
MUST
Multi-Underlying Structured Trade
NASPP
National Association of Stock Plan Professionals
Nearby
Nearest active trading month of a futures or options on futures contract.
NYSE
New York Stock Exchange
Offer
Price at which an investor is willing to sell a futures or options contract. Offset buying if one has sold, or selling if one has bought, a futures or options on futures contract.
Omgeo
Vendor of post-execution trade management solutions.
Omgeo TradeSuite
US trade confirmation service from Omgeo
Open Interest
Total number of futures or options on futures contracts that have not yet been offset or fulfilled by delivery. An indicator of the depth or liquidity of a market (the ability to buy or sell at or near a given price) and of the
Private Equity Intelligence
Research group specialising in the private equity arena.
Private File Creator
Private File Creator from Accuity allows users to create and maintain personalized lists of relevant business entities for use in their enhanced due diligence and Know Your Customer programs.
Prodiance
Provider of enterprise spreadsheet management
Public Company Accounting Oversight Board
Organization set up under Sarbanes-Oxley Act 2002 to regulate auditing of public companies and auditors.
Quantifi
provider of analytics and risk management solutions for the global credit markets.
Regulation FD
Regulation Fair Disclosure
Rule enforced by the SEC requiring U.S. to make available to the public that they make to securities analysts. If the disclosure is intentional the release has to be simultaneous. Unintentional
Repo
The practice of loaning out shares in return for cash.
Risk Assessment
One of five components of internal control according to the COSO Internal Control Framework
Risks faced by the company have to be recognized. Objectives have to be set, integrated into the value-chain. To achieve the objectives, risks have to be identified, analyzed and develop methods to manage them.
Rule 13a-15 (e)
SEC rule which defines Disclosure Controls and Procedures.
Rule 13a-15 (f)
SEC rule which defines Internal Control over Financial Reporting
SCSE
Society of Corporate Compliance and Ethics
SEC
Securities and Exchange Commission.
SOX
Shorthand for Sarbanes-Oxley.
Structured Notes
Derivatives-linked bonds designed to deliver high returns over a fixed period.
Synthetic Collateralised Debt Obligations
Repackaged portfolios of credit derivatives.
TOCOM
Tokyo Commodity Exchange
TS2
System proprosed by the ECB for a single securities settlements across the Eurozone.
TSE
Tokyo Stock Exchange
Tuesday, 1 April 2008
Trading Glossary
ABCDS
A credit default swap based on an Asset-Backed Security itself based on relatively risky home equity loans (U.S.) In effect a type of insurance against default on the underlying ABS.
ABCP
Taiwan: Asset-Backed Commercial Paper
AICPA
American Institute of Certified Public Accountants
Alpha
Hedge Funds: the incremental return above the market that a manager generates.
American-Style Option
Option contract which can be excercised at any time between the purchase date and the expiration date. Most commonly exchange-traded option in the U.S.
Arbitrage
Simultaneous sale and purchase of identical or equivalent financial instruments or commodity futures to benefit from a discrepancy in their prices.
Assignment
Receipt of an exercise notice by an option writer (seller) that obligates him to sell (in the case of a call) or purchase (in the case of a put) the underlying security at the specified strike price.
At-the-money
Occurs if the strike price of the option is equal to the market price of underlying security.
Back-months
Futures or options on futures months being traded that are furthest from expiration.
BaFin
Germany: financial regulator
Bank Of England
UK Central Bank
Bear
Person who believes prices will move lower
Bear Market
Market in which prices are moving lower.
Beta
Hedge Funds: market exposure
Bid
Price that market participants are willing to pay.
Bull
Person who believes prices will move higher
Bull Market
Market in which prices are moving higher.
Buy on Close
Buy at the end of a trading session at a price within the closing range.
Buy on Opening
Buy at the beginning of a trading session at a price within the opening range.
Call
An option contract giving the holder the right to buy the underlying security at a specified price for a certain, fixed period of time.
Capped-Style Option
Option with an established profit cap. The cap price is equal to the option's strike price plus a cap interval for a call option or the strike price minus a cap interval for a put option. Exercised automatically when the underlying security closes above or below the cap price, depending on whether it is a call or a put.
CEO
Chief Executive Officer
CFO
Chief Financial Officer
CII
Council of Institutional Investors
CIO
Chief Investment Officer
Close
End of trading session period. Also called the Closing Range. The official close is designated as the high and low prices or bids and offers recorded during the period.
Closing Purchase
Transaction entered into to reduce or eliminate a short position in a given series of options.
Commission
One off fee brokerage fee to a customer when a futures or options on futures position is liquidated either by offset or delivery.
Contract
1) Unit of trading for a financial or commodity future.
2) Bilateral agreement between buyer and seller (parties) of a futures or options on futures transaction. Defined by the exchange.
Contract Month
The month in which futures contracts may be satisfied by making or accepting delivery.
Covered Call Option Writing
Trading strategy involving simultaneously selling call options and owning an equivalent position in the underlying security. The reverse is to sells a put option and shorting the underlying security.
Day Order
Order placed for execution within one trading session. Automatically cancelled if it can not be executed within the day.
Day Trading
Within one day establishing and liquidating the same position or positions. No positions should be established at the days end.
Deferred
Back Months
Delivery
Tender and receipt of an actual commodity or financial instrument, or cash in settlement of a futures contract.
Derivative Security
Financial security whose value is determined in part from an another security's (the underlying security) value and characteristic.
Dow Joines Industrial Average
US Index made up of 30 picked stocks. Weighted by share price
EAI
Enhanced Analytics Initiative
ECB
European Central Bank
EPS
Earnings Per Share
Equity Options
Options on shares of an individual common stock.
ERFRAG
European Financial Reporting Advisory Group
ERM
Enterprise Risk Management
ETF
Exchange-Traded Fund
European-style Options
Option contracts that can only be exercised during a specified period of time just prior to their expiration.
Exercise Settlement Amount
Difference between the exercise price of the option and the exercise settlement value of the index on the day an exercise notice is tendered , multiplied by the index multiplier.
Expiration Cycle
The dates on which options on an underlying security expire. A given option is assigned to one of three cycles, January, February or March.
Expiration Date
Date on which an option and the right to exercise it, cease to exist.
FASAC
Financial Accounting Standards Advisory Council
FASB
Financial Accounting Standards Board
Financial Accounting Standards Advisory Council
Overseer of the Financial Accounting Standards Board.
Financial Reporting
Defined by the COSO Framework as:-
The preparation of reliable published financial statements, including interim and condensed financial statements and selected financial data derived from such statements, such as earnings releases, reported publicly.
Financial Supervisory Commission
Taiwan: financial regulator
Floor Broker
Licensed member of an Exchange, who is paid a fee for executing orders for Clearing Members or their customers.
Floor Trader
Also known as a "local". Exchange member who only trades for his own account.
Futures
All contracts covering purchase and sale of financial instruments or physical commodities for future delivery on a commodity futures exchange.
3
GAAP
Generally Accepted Accounting Principles.
Hedge
Strategy to limit investment loss by effecting a transaction which offsets an existing position.
Holder
Purchaser of an option
IFRS
International Financial Reporting Standards
IFRS 3
Accounting standard for "business combinations" or Merger and Acquisitions transactions. First standard written jointly by International Accounting Standards Board and the U.S. Financial Accounting Standards Board.
Initial Performance Bond
Also known as "Initial Margin". Funds required when a futures position is opened.
Integrity and Ethics
Reside under the Control Environment. The senior management need to set the tone for the company. Whilst they might be considered "soft" and "intangible" concepts, they affect the design, administration and monitoring of other internal controls. According to COSO, the actions of management is more important than having them written down.
Negative examples of integrity and ethics are the infamous Enron and WorldCom scandals.
A positive example is BP which sets a high bar for ethical behaviour by employees. To back this policy up they make mention of it and its effectiveness in financial reports.
In-the-money
Occurs if the strike price of a call option is less than the market price of the underlying security. For put options the strike price has to be higher than the market price of the underlying security for it to be in-the money.
Intrinsic Value
Amount by which an option is in-the-money.
ISDA
International Swaps and Derivatives Association
LTCM
Long Term Capital Management
Margin Requirement for Options
Amount an uncovered (naked) option writer is required to deposit and maintain to cover a position. Calculated
Market Order
Order for immediate execution given to a broker to buy or sell at the best obtainable price.
Mark-To-Market
Daily adjustment of margin accounts to reflect profit and loss.
MD&A
Management's Disclosure and Analysis
Mezzanine
When applied to finance refers to moderate risk or mid level.
Minimum Price Fluctuation
Smallest increment of price movement possible in trading a given contract. It is also referred to as "lead month".
NASPP
National Association of Stock Plan Professionals
Nearby
Nearest active trading month of a futures or options on futures contract.
NYSE
New York Stock Exchange
Offer
Price at which an investor is willing to sell a futures or options contract. Offset buying if one has sold, or selling if one has bought, a futures or options on futures contract.
Open Interest
Total number of futures or options on futures contracts that have not yet been offset or fulfilled by delivery. An indicator of the depth or liquidity of a market (the ability to buy or sell at or near a given price) and of the use of a market for risk and/or asset management.
Private Equity Intelligence
Research group specialising in the private equity arena.
Public Company Accounting Oversight Board
Organization set up under Sarbanes-Oxley Act 2002 to regulate auditing of public companies and auditors.
Regulation FD
Regulation Fair Disclosure
Rule enforced by the SEC requiring U.S. to make available to the public that they make to securities analysts. If the disclosure is intentional the release has to be simultaneous. Unintentional disclosure has to be made available to the public within 24 hours.
Repo
The practice of loaning out shares in return for cash.
Risk Assessment
One of five components of internal control according to the COSO Internal Control Framework
Risks faced by the company have to be recognized. Objectives have to be set, integrated into the value-chain. To achieve the objectives, risks have to be identified, analyzed and develop methods to manage them.
Rule 13a-15 (e)
SEC rule which defines Disclosure Controls and Procedures.
Rule 13a-15 (f)
SEC rule which defines Internal Control over Financial Reporting
SCSE
Society of Corporate Compliance and Ethics
SEC
Securities and Exchange Commission.
SOX
Shorthand for Sarbanes-Oxley.
Structured Notes
Derivatives-linked bonds designed to deliver high returns over a fixed period.
Synthetic Collateralised Debt Obligations
Repackaged portfolios of credit derivatives.
TOCOM
Tokyo Commodity Exchange
TS2
System proprosed by the ECB for a single securities settlements across the Eurozone.
TSE
Tokyo Stock Exchange
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