New York Fed to Sell Maiden Lane II Assets in Competitive Process over Time
Press Release
March 30, 2011
The Federal Reserve today announced that it has declined American International Group’s (AIG) offer to purchase all of the assets in Maiden Lane II LLC (MLII).
After careful review, the Federal Reserve Bank of New York (New York Fed) and the Board of Governors of the Federal Reserve System (Board) judged that the public interest in maximizing returns from any sale and promoting financial stability would be better served by an alternative approach to realizing value that is also more consistent with normal market practice.
In light of improved conditions in the secondary market for non-agency residential mortgage backed securities (RMBS), and a high level of interest by investors, the Federal Reserve believes that conditions are right for ML II to begin more extensive asset sales while taking appropriate care at all times to avoid market disruption. In light of this decision, the New York Fed has changed the investment management objective for ML II consistent with such sales.
The New York Fed, through its investment manager, BlackRock Solutions will dispose of the securities in the ML II portfolio individually and in segments over time as market conditions warrant through a competitive sales process. There will be no fixed timeframe for the sales and at each stage the Federal Reserve will only transact if the best available bid represents good value for the public.
Offering the Maiden Lane securities for sale individually and in segments rather than as a single block will give a larger set of investors opportunity to bid for the assets. The Federal Reserve believes that this will maximize sale proceeds while also reducing the likelihood that any one institution ends up with concentrated exposure to these assets.
BlackRock Solutions will offer the securities for sale using the standard bid list process in the secondary market for RMBS securities. The bid list process involves marketing a list of securities from the portfolio via multiple broker dealers to obtain the best available price for each security.
Over time, the Federal Reserve will also entertain investor inquiries to acquire specific parcels of securities where these offer superior value, though no such bid will be accepted without being put into competition with other interested investors. In such cases, investors may submit offers for parcels of securities directly (without necessarily going through a dealer.)
BlackRock Solutions is expected to circulate the first bid list sale early next week. Inquiries relating to the sales process can be made at ML2inquiries@blackrock.com. In keeping with the Federal Reserve’s commitment to enhanced transparency information will be released as soon as is practicable, while preserving the effectiveness of the asset disposition process.
The New York Fed already publishes on its website a list of all the securities in its portfolio. In order to allow the public to track progress on asset dispositions, the New York Fed will provide monthly updates on portfolio holdings and a list of the securities sold within the prior month. In addition, it will provide quarterly updates on total proceeds from sales, and the total amount purchased by each counterparty. Finally, the New York Fed will provide further details regarding these transactions, including an account showing the acquirer and the price paid for each individual security three months after the last asset is sold, ensuring timely accountability without jeopardizing the ability to generate maximum sale proceeds for the public.
For more information visit Maiden Lane II LLC, including the most recent holdings report as of February 28th, 2011, vist http://www.newyorkfed.org//markets/maidenlane.html#maidenlane2
Contact:
Jack Gutt
(212) 720-6142
(646) 720-6142
jack.gutt@ny.frb.org
Rabu, 30 Maret 2011
Top Interest Rate Headlines 03-30-11: Hoenig Blames Fed for Higher Commodity Prices, Urges Tightening
Hoenig Blames Fed for Higher Commodity Prices, Urges Tightening
By Vivien Lou Chen, Bloomberg BusinessWeek
The Federal Reserve’s “highly accommodative” monetary policy is partly to blame for rapidly increasing global commodity prices, said Kansas City Fed President Thomas Hoenig, who called on colleagues to raise the benchmark interest rate toward 1 percent soon.
http://jlne.ws/gTDX3x
Euro Area Monetary And Financial Statistics 2011
This data quality report is a contribution to the ECB’s Statistics Quality Framework.1 Euro area monetary and financial statistics (MFS) have been published with a high level of quality for more than a decade.
http://jlne.ws/igYWzG
Hedge fund returns won't save public pensions
Posted by Katie Benner. CNNMoney/Fortune
State pension funds are putting more of their money into higher risk investments like hedge funds, private equity, real estate, and commodities. But it won't fix their problems.
http://jlne.ws/fg0Y88
UK a risk to worldwide financial stability
Will Henley, GFS News
The UK is a threat to worldwide financial stability due to its hostility to short selling curbs and inaction on tax havens, according to a new study
http://jlne.ws/gxGMcR
Dallas Fed releases exchange rate indexes for all 50 states
Dallas Fed
Real Trade-Weighted Value of the Dollar: In the fourth quarter 2010 issue of Southwest Economy, Dallas Fed researchers introduced new measures of real trade-weighted exchange rates for each of the 50 U.S. states. These indexes calculate the inflation-adjusted value of the U.S. dollar against the currencies of countries with which the state trades. The real exchange rates are aggregated across countries for each state using the average export share to the country over the period from 1997 to 2009. The indexes should allow analysts to more precisely identify the exchange rate movements that most affect demand for a state’s exports.
http://ow.ly/4pz7L
IMF queries derivatives reform effectiveness
By Aline van Duyn, Financial Times
New regulations aiming to reform the vast derivatives markets may fail to remove systemic risks or prevent the need for another taxpayer bail-out of the financial system, according to a research paper published by the International Monetary Fund. The reforms, which shift derivatives to clearing houses in an effort to dilute the impact of a default of a large dealer, could result in more risks for the financial system and alternative policies such as a tax on banks’ derivatives liabilities should be considered, the IMF paper said.
http://jlne.ws/gZSmYV
HSBC chairman calls for ‘systemic’ list of banks
By Sharlene Goff and Patrick Jenkins, Financial Times
Regulators should include more than 80 banks in their list of global financial institutions of systemic importance that need tighter regulation and higher capital requirements, Douglas Flint, chairman of HSBC, has urged.
http://jlne.ws/hmUQiL
Bond dealers sceptical about eurozone plans
By David Oakley, Financial Times
It will not happen for more than two years. But moves to create an orderly process for eurozone sovereign defaults are already threatening a total shutdown of the peripheral bond markets.
http://jlne.ws/gmauaa
FDIC Proposes Rule to Tie Banks to Mortgage Risk
By BEN PROTESS, NY Times
Federal regulators, seeking to outlaw a leading cause of the financial crisis, voted on Tuesday to propose new rules that would prohibit Wall Street banks from selling packages of risky mortgages to investors without holding onto a stake in the loans.
http://jlne.ws/gHEOFi
ISDA: OTC Derivatives Market Is $401 Tln, Not $583 Tln Per BIS
By Katy Burne, DOW JONES NEWSWIRES
The International Swaps and Derivatives Association said Tuesday that the true size of the global over-the-counter derivatives market is closer to $401 trillion, not the $583 trillion estimate given by the Bank for International Settlements late last year.
http://jlne.ws/fcsIE8
Banks Saved $25 Billion By Under-Serving Delinquent Mortgages
Forbes
The consumer protection agency developed by the Obama administration in the aftermath of the financial crisis is already stirring Wall Street's pot.
http://jlne.ws/fIRNwz
UBS names new European research chief
eFinancial News
UBS has appointed a highly-ranked building and construction analyst to lead its research division in Europe, following the promotion of former head Nick Pink to run equities earlier this month.
http://jlne.ws/dRaIn8
RBS chief warns against over-regulation
Independent
Royal Bank of Scotland's chief executive, Stephen Hester, has warned that over-regulation threatens his bank's recovery.
http://jlne.ws/hTxxAb
Few Lehman creditors want court to consider their restructuring
Reuters
Few creditors of Lehman Brothers Holdings want the court to consider their alternate restructuring plan when the bankrupt investment bank's own proposal comes up for voting in June, court documents show.
http://jlne.ws/gFVu27
Australian Central Bank Adds Twitter to Armory
By Geoffrey Rogow, WSJ
The Reserve Bank of Australia on Wednesday added Twitter to its armory of communications as the surging Australian dollar and resources boom put more global focus on the machinations of the Pacific nation’s central bank.
http://jlne.ws/esW6n6
By Vivien Lou Chen, Bloomberg BusinessWeek
The Federal Reserve’s “highly accommodative” monetary policy is partly to blame for rapidly increasing global commodity prices, said Kansas City Fed President Thomas Hoenig, who called on colleagues to raise the benchmark interest rate toward 1 percent soon.
http://jlne.ws/gTDX3x
Euro Area Monetary And Financial Statistics 2011
This data quality report is a contribution to the ECB’s Statistics Quality Framework.1 Euro area monetary and financial statistics (MFS) have been published with a high level of quality for more than a decade.
http://jlne.ws/igYWzG
Hedge fund returns won't save public pensions
Posted by Katie Benner. CNNMoney/Fortune
State pension funds are putting more of their money into higher risk investments like hedge funds, private equity, real estate, and commodities. But it won't fix their problems.
http://jlne.ws/fg0Y88
UK a risk to worldwide financial stability
Will Henley, GFS News
The UK is a threat to worldwide financial stability due to its hostility to short selling curbs and inaction on tax havens, according to a new study
http://jlne.ws/gxGMcR
Dallas Fed releases exchange rate indexes for all 50 states
Dallas Fed
Real Trade-Weighted Value of the Dollar: In the fourth quarter 2010 issue of Southwest Economy, Dallas Fed researchers introduced new measures of real trade-weighted exchange rates for each of the 50 U.S. states. These indexes calculate the inflation-adjusted value of the U.S. dollar against the currencies of countries with which the state trades. The real exchange rates are aggregated across countries for each state using the average export share to the country over the period from 1997 to 2009. The indexes should allow analysts to more precisely identify the exchange rate movements that most affect demand for a state’s exports.
http://ow.ly/4pz7L
IMF queries derivatives reform effectiveness
By Aline van Duyn, Financial Times
New regulations aiming to reform the vast derivatives markets may fail to remove systemic risks or prevent the need for another taxpayer bail-out of the financial system, according to a research paper published by the International Monetary Fund. The reforms, which shift derivatives to clearing houses in an effort to dilute the impact of a default of a large dealer, could result in more risks for the financial system and alternative policies such as a tax on banks’ derivatives liabilities should be considered, the IMF paper said.
http://jlne.ws/gZSmYV
HSBC chairman calls for ‘systemic’ list of banks
By Sharlene Goff and Patrick Jenkins, Financial Times
Regulators should include more than 80 banks in their list of global financial institutions of systemic importance that need tighter regulation and higher capital requirements, Douglas Flint, chairman of HSBC, has urged.
http://jlne.ws/hmUQiL
Bond dealers sceptical about eurozone plans
By David Oakley, Financial Times
It will not happen for more than two years. But moves to create an orderly process for eurozone sovereign defaults are already threatening a total shutdown of the peripheral bond markets.
http://jlne.ws/gmauaa
FDIC Proposes Rule to Tie Banks to Mortgage Risk
By BEN PROTESS, NY Times
Federal regulators, seeking to outlaw a leading cause of the financial crisis, voted on Tuesday to propose new rules that would prohibit Wall Street banks from selling packages of risky mortgages to investors without holding onto a stake in the loans.
http://jlne.ws/gHEOFi
ISDA: OTC Derivatives Market Is $401 Tln, Not $583 Tln Per BIS
By Katy Burne, DOW JONES NEWSWIRES
The International Swaps and Derivatives Association said Tuesday that the true size of the global over-the-counter derivatives market is closer to $401 trillion, not the $583 trillion estimate given by the Bank for International Settlements late last year.
http://jlne.ws/fcsIE8
Banks Saved $25 Billion By Under-Serving Delinquent Mortgages
Forbes
The consumer protection agency developed by the Obama administration in the aftermath of the financial crisis is already stirring Wall Street's pot.
http://jlne.ws/fIRNwz
UBS names new European research chief
eFinancial News
UBS has appointed a highly-ranked building and construction analyst to lead its research division in Europe, following the promotion of former head Nick Pink to run equities earlier this month.
http://jlne.ws/dRaIn8
RBS chief warns against over-regulation
Independent
Royal Bank of Scotland's chief executive, Stephen Hester, has warned that over-regulation threatens his bank's recovery.
http://jlne.ws/hTxxAb
Few Lehman creditors want court to consider their restructuring
Reuters
Few creditors of Lehman Brothers Holdings want the court to consider their alternate restructuring plan when the bankrupt investment bank's own proposal comes up for voting in June, court documents show.
http://jlne.ws/gFVu27
Australian Central Bank Adds Twitter to Armory
By Geoffrey Rogow, WSJ
The Reserve Bank of Australia on Wednesday added Twitter to its armory of communications as the surging Australian dollar and resources boom put more global focus on the machinations of the Pacific nation’s central bank.
http://jlne.ws/esW6n6
Selasa, 29 Maret 2011
Top Interest Rate Headlines 03-29-11: Will the Proposed Banking Settlement Have Unintended Consequences?
Will the Proposed Banking Settlement Have Unintended Consequences?
By Joseph R. Mason and Hal J. Singer, Harvard Business Review
Today's news is full of details regarding the settlement talks between the largest mortgage servicers and government officials, including the Treasury Department and some state attorneys general. Such a settlement must be carefully crafted if it is to avoid making the housing markets worse. An important part of that task is facing the true costs and consequences of a major new principal reduction program.
http://jlne.ws/fdY5Q5
U.S. regulators define safe home loan
By Dave Clarke, Reuters
U.S. lenders would have to offer mortgages with at least a 20 percent down payment if they want to repackage the loan to sell to other investors without keeping some of the risk on their books, according to a proposal U.S. bank regulators endorsed on Tuesday.
http://jlne.ws/hxChFz
Fed's Bullard: could trim bond buying by $100 billion
By Jan Lopatka and Michael Winfrey, Reuters
St. Louis Federal Reserve chief James Bullard urged the U.S. central bank on Tuesday to begin reversing its campaign of monetary easing, saying it could trim its $600 billion bond-buying program by $100 billion.
http://jlne.ws/gryMaY
Alan Greenspan: Dodd-Frank fails to meet test of our times
FT.com
The US regulatory agencies will in the coming months be bedevilled by unanticipated adverse outcomes as they translate the Dodd-Frank Act’s broad set of principles into a couple of hundred detailed regulations. The act’s underlying premise is that much of what occurred in the market place leading up to the Lehman Brothers bankruptcy was excess (hardly controversial) and that its causes would be readily addressed by this wide-ranging statute (questionable).
http://jlne.ws/hqVddx
U.S. regulators define safe home loan
By Dave Clarke, Reuters
U.S. lenders would have to offer mortgages with at least a 20 percent down payment if they want to repackage the loan to sell to other investors without keeping some of the risk on their books, according to a proposal U.S. bank regulators endorsed on Tuesday.
http://jlne.ws/htYh0z
Bullard in Prague: QE experience shows monetary policy can be eased aggressively even w/ near-zero rate
Federal Reserve Bank of St. Louis
On Tuesday, Federal Reserve Bank of St. Louis President James Bullard delivered remarks titled “U.S. Monetary Policy: Recent Developments” as part of a central bankers panel discussion at the 19th European Banking and Financial Forum in Prague...
http://bit.ly/hhCRtT
Standard & Poor's downgrades Greece, Portugal
By Andrei Khalip and Ingrid Melander Andrei Khalip And Ingrid Melander, Reuters
Standard & Poor's downgraded Greece and Portugal on Tuesday, citing risks that the countries' debts to a new European bailout fund would be repaid before bond investors, sending their borrowing costs sharply higher.
http://jlne.ws/g5RfGO
Bankers pleased with ‘skin in the game’ rule
By Ronald D. Orol, MarketWatch
Bankers were mostly pleased with a long-awaited proposal on mortgages from federal regulators Tuesday because it exempts, for now, banks from a key rule if they sell loans to Fannie Mae and Freddie Mac.
http://jlne.ws/e5PGq2
FDIC set to endorse risk-retention rule
By Dave Clarke, Chicago Tribune
U.S. lenders would have to offer mortgages with at least a 20 percent down payment if they want to repackage the loan to sell to other investors without keeping some of the risk on their books, according to a proposal U.S. bank regulators endorsed on Tuesday.
http://jlne.ws/dWmRAE
A Look at Case-Shiller, by Metro Area
By Phil Izzo, WSJ.com
The S&P/Case-Shiller Composite 20-city home price index, a broad gauge of U.S. home prices, posted a 1% drop in January from a month earlier and fell 3.1% from a year earlier, as the housing market faced a new round of trouble.
http://jlne.ws/dIGdsy
Nouriel Roubini's 10 Big Risks To The US Economy
By Joe Weisenthal, Business Insider
In a note to clients of RGE Monitor, Nouriel Roubini listed 10 downside risks to the global economy...
http://jlne.ws/etbEgn
Spain's Caja Madrid to get 188 mln euros from Mapfre
Reuters
Spanish savings bank Caja Madrid will receive 188 million euros ($265.4 million) from the dissolution of its cross-shareholding pact with Mapfre (MAP.MC), the Spanish insurance company said on Tuesday.
http://jlne.ws/epB2qy
Dying Banks Kept Alive Show Secrets Fed's Data Will Reveal for First Time
Bloomberg
By Craig Torres and Bob Ivry, Bloomberg
U.S. regulators closed Chicago- based Park National Bank in October 2009 when it owed $345 million to one of the lowest-cost lenders in town: the Federal Reserve’s discount window. Park National had been a constant customer at the window for more than 18 months before it failed, records show.
http://jlne.ws/hJsMNh
NYSE, ELX Make Gains In CME's Eurodollar Stronghold
By Jacob Bunge, DOW JONES NEWSWIRES
NYSE Euronext (NYX) had become the leading rival to CME Group Inc. (CME) in the rate-futures market by the end of last week though the Chicago company's two challengers mustered a share of just 3.6% between them, according to data released Monday. The NYSE Liffe U.S. arm of the transatlantic exchange operator traded more than 60,000 Eurodollar futures on Mar. 25 as it completed its first week of trading, overtaking the record haul of nearly 42,000 at ELX Futures LP, which launched the product last June.
Swaps Reform Shouldn’t Mimic Futures Market Rules, ISDA Says
By Matthew Leising and Shannon D. Harrington, Bloomberg
U.S. regulators writing rules to oversee the $583 trillion privately negotiated swaps market for the first time shouldn’t seek to impose the same restrictions they enforce on exchange-traded futures, an industry group said.The International Swaps and Derivatives Association proposed changes to Commodity Futures Trading Commission and Securities and Exchange Commission plans that will create so- called swap-execution facilities. The trading systems should be allowed to limit participants, have flexibility in how many investors see price quotes and not rely on “non-analogous” markets like futures for guidance, the New York-based group said in a paper released today.
ISDA: SEF Rules Should Provide Greater Choice, Access and Liquidity to OTC Derivatives Market Participants
Press Release
NEW YORK, Tuesday, March 29, 2011 – In a paper published today, the International Swaps and Derivatives Association, Inc. (ISDA) outlined its views on the role, impact and optimal structure for Swap Execution Facilities (SEFs*) in the global over-the-counter (OTC) derivatives markets.
http://jlne.ws/gMflSV
Regulators to vote on mortgage securities rules: report
Reuters
Banks will be forced to keep some risk when they securitize all but the most conservatively written mortgages under rules that regulators are expected to vote on Tuesday, the New York Times reported on Monday.
http://jlne.ws/dGk0Vk
Bank Bonuses Said to Get Scrutiny From European Regulator After Complaints
Bloomberg
The European Union's top financial regulator will review this year's bonus awards following criticism of large payouts for bank executives, two people with knowledge of the situation said.
http://jlne.ws/gDHnPh
Lloyds Hires JPMorgan, Citigroup for Sale of 600 Branches
BusinessWeek
Lloyds Banking Group Plc, Britain's biggest mortgage lender, said it hired Citigroup Inc. and JPMorgan Chase & Co. to oversee the sale of 600 branches as required by European Union regulators.
http://jlne.ws/fI9t1C
Nomura US investment bank head quits
By Michiyo Nakamoto, Financial Times
Nomura has replaced its head of investment banking in the US, in the latest management change to hit the Tokyo-based banking group, as it struggles to make its mark in the North American market.
http://jlne.ws/ep8pTG
By Joseph R. Mason and Hal J. Singer, Harvard Business Review
Today's news is full of details regarding the settlement talks between the largest mortgage servicers and government officials, including the Treasury Department and some state attorneys general. Such a settlement must be carefully crafted if it is to avoid making the housing markets worse. An important part of that task is facing the true costs and consequences of a major new principal reduction program.
http://jlne.ws/fdY5Q5
U.S. regulators define safe home loan
By Dave Clarke, Reuters
U.S. lenders would have to offer mortgages with at least a 20 percent down payment if they want to repackage the loan to sell to other investors without keeping some of the risk on their books, according to a proposal U.S. bank regulators endorsed on Tuesday.
http://jlne.ws/hxChFz
Fed's Bullard: could trim bond buying by $100 billion
By Jan Lopatka and Michael Winfrey, Reuters
St. Louis Federal Reserve chief James Bullard urged the U.S. central bank on Tuesday to begin reversing its campaign of monetary easing, saying it could trim its $600 billion bond-buying program by $100 billion.
http://jlne.ws/gryMaY
Alan Greenspan: Dodd-Frank fails to meet test of our times
FT.com
The US regulatory agencies will in the coming months be bedevilled by unanticipated adverse outcomes as they translate the Dodd-Frank Act’s broad set of principles into a couple of hundred detailed regulations. The act’s underlying premise is that much of what occurred in the market place leading up to the Lehman Brothers bankruptcy was excess (hardly controversial) and that its causes would be readily addressed by this wide-ranging statute (questionable).
http://jlne.ws/hqVddx
U.S. regulators define safe home loan
By Dave Clarke, Reuters
U.S. lenders would have to offer mortgages with at least a 20 percent down payment if they want to repackage the loan to sell to other investors without keeping some of the risk on their books, according to a proposal U.S. bank regulators endorsed on Tuesday.
http://jlne.ws/htYh0z
Bullard in Prague: QE experience shows monetary policy can be eased aggressively even w/ near-zero rate
Federal Reserve Bank of St. Louis
On Tuesday, Federal Reserve Bank of St. Louis President James Bullard delivered remarks titled “U.S. Monetary Policy: Recent Developments” as part of a central bankers panel discussion at the 19th European Banking and Financial Forum in Prague...
http://bit.ly/hhCRtT
Standard & Poor's downgrades Greece, Portugal
By Andrei Khalip and Ingrid Melander Andrei Khalip And Ingrid Melander, Reuters
Standard & Poor's downgraded Greece and Portugal on Tuesday, citing risks that the countries' debts to a new European bailout fund would be repaid before bond investors, sending their borrowing costs sharply higher.
http://jlne.ws/g5RfGO
Bankers pleased with ‘skin in the game’ rule
By Ronald D. Orol, MarketWatch
Bankers were mostly pleased with a long-awaited proposal on mortgages from federal regulators Tuesday because it exempts, for now, banks from a key rule if they sell loans to Fannie Mae and Freddie Mac.
http://jlne.ws/e5PGq2
FDIC set to endorse risk-retention rule
By Dave Clarke, Chicago Tribune
U.S. lenders would have to offer mortgages with at least a 20 percent down payment if they want to repackage the loan to sell to other investors without keeping some of the risk on their books, according to a proposal U.S. bank regulators endorsed on Tuesday.
http://jlne.ws/dWmRAE
A Look at Case-Shiller, by Metro Area
By Phil Izzo, WSJ.com
The S&P/Case-Shiller Composite 20-city home price index, a broad gauge of U.S. home prices, posted a 1% drop in January from a month earlier and fell 3.1% from a year earlier, as the housing market faced a new round of trouble.
http://jlne.ws/dIGdsy
Nouriel Roubini's 10 Big Risks To The US Economy
By Joe Weisenthal, Business Insider
In a note to clients of RGE Monitor, Nouriel Roubini listed 10 downside risks to the global economy...
http://jlne.ws/etbEgn
Spain's Caja Madrid to get 188 mln euros from Mapfre
Reuters
Spanish savings bank Caja Madrid will receive 188 million euros ($265.4 million) from the dissolution of its cross-shareholding pact with Mapfre (MAP.MC), the Spanish insurance company said on Tuesday.
http://jlne.ws/epB2qy
Dying Banks Kept Alive Show Secrets Fed's Data Will Reveal for First Time
Bloomberg
By Craig Torres and Bob Ivry, Bloomberg
U.S. regulators closed Chicago- based Park National Bank in October 2009 when it owed $345 million to one of the lowest-cost lenders in town: the Federal Reserve’s discount window. Park National had been a constant customer at the window for more than 18 months before it failed, records show.
http://jlne.ws/hJsMNh
NYSE, ELX Make Gains In CME's Eurodollar Stronghold
By Jacob Bunge, DOW JONES NEWSWIRES
NYSE Euronext (NYX) had become the leading rival to CME Group Inc. (CME) in the rate-futures market by the end of last week though the Chicago company's two challengers mustered a share of just 3.6% between them, according to data released Monday. The NYSE Liffe U.S. arm of the transatlantic exchange operator traded more than 60,000 Eurodollar futures on Mar. 25 as it completed its first week of trading, overtaking the record haul of nearly 42,000 at ELX Futures LP, which launched the product last June.
Swaps Reform Shouldn’t Mimic Futures Market Rules, ISDA Says
By Matthew Leising and Shannon D. Harrington, Bloomberg
U.S. regulators writing rules to oversee the $583 trillion privately negotiated swaps market for the first time shouldn’t seek to impose the same restrictions they enforce on exchange-traded futures, an industry group said.The International Swaps and Derivatives Association proposed changes to Commodity Futures Trading Commission and Securities and Exchange Commission plans that will create so- called swap-execution facilities. The trading systems should be allowed to limit participants, have flexibility in how many investors see price quotes and not rely on “non-analogous” markets like futures for guidance, the New York-based group said in a paper released today.
ISDA: SEF Rules Should Provide Greater Choice, Access and Liquidity to OTC Derivatives Market Participants
Press Release
NEW YORK, Tuesday, March 29, 2011 – In a paper published today, the International Swaps and Derivatives Association, Inc. (ISDA) outlined its views on the role, impact and optimal structure for Swap Execution Facilities (SEFs*) in the global over-the-counter (OTC) derivatives markets.
http://jlne.ws/gMflSV
Regulators to vote on mortgage securities rules: report
Reuters
Banks will be forced to keep some risk when they securitize all but the most conservatively written mortgages under rules that regulators are expected to vote on Tuesday, the New York Times reported on Monday.
http://jlne.ws/dGk0Vk
Bank Bonuses Said to Get Scrutiny From European Regulator After Complaints
Bloomberg
The European Union's top financial regulator will review this year's bonus awards following criticism of large payouts for bank executives, two people with knowledge of the situation said.
http://jlne.ws/gDHnPh
Lloyds Hires JPMorgan, Citigroup for Sale of 600 Branches
BusinessWeek
Lloyds Banking Group Plc, Britain's biggest mortgage lender, said it hired Citigroup Inc. and JPMorgan Chase & Co. to oversee the sale of 600 branches as required by European Union regulators.
http://jlne.ws/fI9t1C
Nomura US investment bank head quits
By Michiyo Nakamoto, Financial Times
Nomura has replaced its head of investment banking in the US, in the latest management change to hit the Tokyo-based banking group, as it struggles to make its mark in the North American market.
http://jlne.ws/ep8pTG
ISDA: SEF Rules Should Provide Greater Choice, Access and Liquidity to OTC Derivatives Market Participants
Link to MarketsReformWiki Swap Execution Facilities Regulation White Papers here.
Press Release
NEW YORK, Tuesday, March 29, 2011 – In a paper published today, the International Swaps and Derivatives Association, Inc. (ISDA) outlined its views on the role, impact and optimal structure for Swap Execution Facilities (SEFs*) in the global over-the-counter (OTC) derivatives markets.
Core SEF Principles
ISDA believes that SEFs can play a positive role in the over-the-counter derivatives market by strengthening its infrastructure, helping prevent insider trading and other market abuse, and increasing transparency and access for smaller participants. To achieve this potential and become an effective marketplace, SEFs need to offer derivative users broad choice in trade execution at very low cost. SEFs should be structured to, among other things
· Provide maximum choice in trade execution to market participants;
· Provide pre- and post-trade transparency while maintaining liquidity;
· Have reasonable, tailored and product specific block trade exemptions that reflect the risk of a transaction instead of a “one size fits all” approach;
· Grant access to a broad range of qualified market participants. Access rules should be objective and applied impartially;
· Be flexible enough to allow business models to evolve over time;
· Products required to be traded in SEFs should be limited to liquid, mature products;
· Rules should not be simply imported from other, fundamentally different markets but should take into account the liquidity, average trade size and average trade frequency of the derivative products and the relative sophistication of the market participants.
It is also essential that individual SEFs are not discriminated against by central clearing organizations in terms of access and pricing.
Financial Market Structures and Trading
In the paper, ISDA also noted the substantial differences between various segments of the financial markets and how trading has evolved in them. The exchange-traded futures market is characterized by a broad range of trading customers (including retail customers) meeting margin requirements to transact a small number of highly standardized contracts in relatively small amounts. As a result, liquidity in exchange-traded markets is relatively continuous in character.
By contrast, the number of potential buyers and sellers in the OTC derivatives markets is relatively small. Active participants are sophisticated institutions who extract very competitive pricing from multiple dealers. Trading is comprised of a wide array of less-standardized products. Trades are typically much larger in size and much less frequent. Liquidity levels are highly variable and depend, to a very large extent, on a dealer making prices for clients.
..
Different structures have also emerged for other market segments. This includes trading in U.S. Treasuries, arguably one of the most liquid financial instruments in existence. A large portion of trading in the so-called "on-the-run" Treasuries, those most recently issued and most liquid, is conducted on electronic trading platforms. A substantial portion of trading in older, "off-the-run" Treasuries is still done through wholesale brokers and directly between dealers. There is no requirement that any trades be made entirely on electronic platforms.
Review of Current Regulatory Proposals
ISDA believes that regulatory proposals mandating the use of SEFs for derivatives trading should be based on the core principles outlined in the paper and the structure of the OTC derivatives markets. In its paper, the Association suggests several areas for improvement:
Determining whether a derivatives product is available for trading by a SEF: The CFTC proposes to delegate this responsibility to the SEF and further proposes that if one SEF has made such a determination, all SEFs would be required to treat the swap as made available for trading.
The proposed rule does not, however, set out any specific criteria to determine whether a derivative product has the liquidity to trade. The CFTC should state that a contract subject to mandatory clearing does not automatically make it available for trading and that the contract must also meet minimum liquidity and standardization characteristics.
Press Release
NEW YORK, Tuesday, March 29, 2011 – In a paper published today, the International Swaps and Derivatives Association, Inc. (ISDA) outlined its views on the role, impact and optimal structure for Swap Execution Facilities (SEFs*) in the global over-the-counter (OTC) derivatives markets.
Core SEF Principles
ISDA believes that SEFs can play a positive role in the over-the-counter derivatives market by strengthening its infrastructure, helping prevent insider trading and other market abuse, and increasing transparency and access for smaller participants. To achieve this potential and become an effective marketplace, SEFs need to offer derivative users broad choice in trade execution at very low cost. SEFs should be structured to, among other things
· Provide maximum choice in trade execution to market participants;
· Provide pre- and post-trade transparency while maintaining liquidity;
· Have reasonable, tailored and product specific block trade exemptions that reflect the risk of a transaction instead of a “one size fits all” approach;
· Grant access to a broad range of qualified market participants. Access rules should be objective and applied impartially;
· Be flexible enough to allow business models to evolve over time;
· Products required to be traded in SEFs should be limited to liquid, mature products;
· Rules should not be simply imported from other, fundamentally different markets but should take into account the liquidity, average trade size and average trade frequency of the derivative products and the relative sophistication of the market participants.
It is also essential that individual SEFs are not discriminated against by central clearing organizations in terms of access and pricing.
Financial Market Structures and Trading
In the paper, ISDA also noted the substantial differences between various segments of the financial markets and how trading has evolved in them. The exchange-traded futures market is characterized by a broad range of trading customers (including retail customers) meeting margin requirements to transact a small number of highly standardized contracts in relatively small amounts. As a result, liquidity in exchange-traded markets is relatively continuous in character.
By contrast, the number of potential buyers and sellers in the OTC derivatives markets is relatively small. Active participants are sophisticated institutions who extract very competitive pricing from multiple dealers. Trading is comprised of a wide array of less-standardized products. Trades are typically much larger in size and much less frequent. Liquidity levels are highly variable and depend, to a very large extent, on a dealer making prices for clients.
..
Different structures have also emerged for other market segments. This includes trading in U.S. Treasuries, arguably one of the most liquid financial instruments in existence. A large portion of trading in the so-called "on-the-run" Treasuries, those most recently issued and most liquid, is conducted on electronic trading platforms. A substantial portion of trading in older, "off-the-run" Treasuries is still done through wholesale brokers and directly between dealers. There is no requirement that any trades be made entirely on electronic platforms.
Review of Current Regulatory Proposals
ISDA believes that regulatory proposals mandating the use of SEFs for derivatives trading should be based on the core principles outlined in the paper and the structure of the OTC derivatives markets. In its paper, the Association suggests several areas for improvement:
Determining whether a derivatives product is available for trading by a SEF: The CFTC proposes to delegate this responsibility to the SEF and further proposes that if one SEF has made such a determination, all SEFs would be required to treat the swap as made available for trading.
The proposed rule does not, however, set out any specific criteria to determine whether a derivative product has the liquidity to trade. The CFTC should state that a contract subject to mandatory clearing does not automatically make it available for trading and that the contract must also meet minimum liquidity and standardization characteristics.
Senin, 28 Maret 2011
Top Interest Rate Headlines 03-28-11: Fed’s Lockhart Maintains Net Positive Economic Outlook
Fed’s Lockhart Maintains Net Positive Economic Outlook
By Carrick Mollenkamp, WSJ.com
Housing remains weak and consumers will pay close attention to higher gas costs even as other components of the economy are improving, said Dennis Lockhart, president of the Federal Reserve Bank of Atlanta.
http://jlne.ws/e9HTzV
Portuguese debt soars to record level
ANDREI KHALIP, Reuters
Portugal’s President decided on Monday to call a council of state on March 31 to consider when to hold a snap election as the country’s bond yields spiked to record highs on political uncertainty after the prime minister resigned.
http://jlne.ws/eLeUo1
Irish bank stress tests due later this week
FT.com
The evolving regulatory probe into the rate at which Libor was charged amid the crisis; bank capital and the investors mounting concerns that regulators are asking banks to hold too much capital; Ireland - Irish bank stress tests are due later this week, we predict what they might reveal.
http://jlne.ws/fLIjoT
Joseph Stiglitz: Bowles-Simpson plan will slow economic growth
By Charles Riley, CNNMoney.com
Nobel economics laureate Joseph Stiglitz issued a harsh indictment of the Bowles-Simpson deficit reduction proposal Monday, arguing the plan would slow economic growth and lead to a weaker America.
http://jlne.ws/fudc9B
The “Great” Recession in Canada: ...- 2011- Speeches- Publications and Research- Bank of Canada
Remarks by Jean Boivin, Deputy Governor of the Bank of Canada, Montréal CFA Society, Montréal, Quebec, March 28, 2011
I am very pleased to be able to deliver this speech today to the Montréal CFA Society – my first speech in Quebec as a Deputy Governor of the Bank of Canada. As active stakeholders in the Quebec and Canadian economies, you are at the centre of the economic life of the country. Thus, I don’t have to tell you that the past few years have been challenging...
http://jlne.ws/gMbVQx
GAO: Implementing Dodd-Frank Could Cost $2.9 Billion
By Victoria McGrane, WSJ.com
Implementing last year’s financial overhaul law could cost the federal government as much as $2.9 billion over five years, according to a summary of a coming Government Accountability Office report obtained by the Journal.
http://jlne.ws/ekxfqP
U.S. Consumer Spending Rose 0.7% in February
The New York Times/ Reuters
Consumer spending rose for an eighth straight month in February as households tapped savings to cover higher food and energy prices.
http://jlne.ws/ig5H20
US muni bond demand slips into big freeze
By Nicole Bullock, FT.com
A feared meltdown has yet to materialise. Instead, the US municipal bond market, blighted by concern that struggling states and cities could default on their obligations, has gone into a deep freeze.
http://jlne.ws/eGzpJ1
U.S. Treasury Futures Begin Trading on NYSE Liffe U.S. Today
Eurodollar Futures Traded Nearly 190,000 Contracts in the First Week-
New York, March 28, 2011 – NYSE Liffe U.S., the U.S. futures exchange of NYSE Euronext (NYX), today announced the immediate availability of 2-year, 5-year and 10-year U.S. Treasury futures along with U.S. Bond and Ultra Bond futures contracts. These products complement the successful Eurodollar contract that debuted on March 21 with 189,484 contracts traded on NYSE Liffe U.S. in the first week. By utilizing the revolutionary new clearinghouse, New York Portfolio Clearing (NYPC), customers trading any of these interest rate futures products will benefit from the combined value of trading on NYSE Liffe U.S. coupled with the “one-pot” margining power of NYPC.
http://jlne.ws/ij2Dy6
Bernanke braves the Fed-bashers
By Clive Crook, Financial Times
Ben Bernanke, chairman of the Federal Reserve, chose an interesting moment to announce, as he did last week, that the Fed will depart from tradition and start holding quarterly news conferences. The first is scheduled to follow the next meeting of the Federal Open Market Committee on April 27. The Fed chief will not be short of things to discuss.
http://jlne.ws/hgns1y
Three new retail bond listings in two weeks
Press Release
London Stock Exchange Group today welcomes the listing of a new bond to its Order book for Retail Bonds (ORB), the third such product to be launched on the platform in the last two weeks. The bond, issued by Lloyds TSB is also the fifth to be launched specifically for ORB so far this year.
http://jlne.ws/gHSVNe
Note to Banks: It’s Not 2006 Anymore
By GRETCHEN MORGENSON, NY Times
NOSTALGIA is running high on Wall Street for the days when junk mortgage underwriting and opaque derivatives trading juiced bank profits. As regulators continue to devise the machinery of the Dodd-Frank regulatory reform law, major financial institutions are working overtime in Washington to bring the good times back again. Unfortunately for taxpayers, some of these efforts are gaining traction, particularly regarding the regulation of derivatives and mortgages.
http://jlne.ws/ienpPf
Big retirement market luring banks
Worcester Telegram & Gazette
Retirement savings in the U.S. may swell to $4 trillion over the next four years and the nation's largest banks are angling for a bigger share of that money.
http://jlne.ws/fgUW7t
Irish Banks Edge Closer to Stress Test Results
By CHRIS V. NICHOLSON, NY Times
Ireland’s troubled banks may need up to 23 billion euros more to meet their capital requirements after the results of the stress tests are released by the Irish central bank on Thursday, Irish newspapers have reported.
http://jlne.ws/dKgUoA
Regions moves to 14th largest American bank
Mobile Press-Register
Regions Financial Group is now the 14th largest bank in the United States by assets, according to SNL Financial, a financial analysis firm based in Charlottesville, Va. The Birmingham-based owner of Regions Bank moved up one spot on the list,...
http://jlne.ws/f08ryK
US credit card groups target the wealthy
By Suzanne Kapner in New York - Financial Times
Credit card companies are offering a number of incentives to attract wealthy customers as they seek to reduce exposure to the increasingly indebted low-income borrowers.
http://jlne.ws/gDYxOE
FSA widens insider trading net to derivatives market
eFinancial News
The FSA has reportedly begun investigating the use of credit default swaps as a vehicle for insider trading, requesting information about the possibility of using the derivatives to carry out market abuse in the first instance of a crackdown on insider trading in these types of products.
http://jlne.ws/dE0sIT
Northern Trust to buy Citadel unit
Chicago Tribune
By Dow Jones Newswires Posted today at 6:01 a.m. Chicago-based Northern Trust Corp. has agreed to buy hedge fund manager Citadel LLC's fund administration business, Omnium LLC, a person familiar with the situation said Thursday. The value of the deal was not known.
http://jlne.ws/hgU6vD
By Carrick Mollenkamp, WSJ.com
Housing remains weak and consumers will pay close attention to higher gas costs even as other components of the economy are improving, said Dennis Lockhart, president of the Federal Reserve Bank of Atlanta.
http://jlne.ws/e9HTzV
Portuguese debt soars to record level
ANDREI KHALIP, Reuters
Portugal’s President decided on Monday to call a council of state on March 31 to consider when to hold a snap election as the country’s bond yields spiked to record highs on political uncertainty after the prime minister resigned.
http://jlne.ws/eLeUo1
Irish bank stress tests due later this week
FT.com
The evolving regulatory probe into the rate at which Libor was charged amid the crisis; bank capital and the investors mounting concerns that regulators are asking banks to hold too much capital; Ireland - Irish bank stress tests are due later this week, we predict what they might reveal.
http://jlne.ws/fLIjoT
Joseph Stiglitz: Bowles-Simpson plan will slow economic growth
By Charles Riley, CNNMoney.com
Nobel economics laureate Joseph Stiglitz issued a harsh indictment of the Bowles-Simpson deficit reduction proposal Monday, arguing the plan would slow economic growth and lead to a weaker America.
http://jlne.ws/fudc9B
The “Great” Recession in Canada: ...- 2011- Speeches- Publications and Research- Bank of Canada
Remarks by Jean Boivin, Deputy Governor of the Bank of Canada, Montréal CFA Society, Montréal, Quebec, March 28, 2011
I am very pleased to be able to deliver this speech today to the Montréal CFA Society – my first speech in Quebec as a Deputy Governor of the Bank of Canada. As active stakeholders in the Quebec and Canadian economies, you are at the centre of the economic life of the country. Thus, I don’t have to tell you that the past few years have been challenging...
http://jlne.ws/gMbVQx
GAO: Implementing Dodd-Frank Could Cost $2.9 Billion
By Victoria McGrane, WSJ.com
Implementing last year’s financial overhaul law could cost the federal government as much as $2.9 billion over five years, according to a summary of a coming Government Accountability Office report obtained by the Journal.
http://jlne.ws/ekxfqP
U.S. Consumer Spending Rose 0.7% in February
The New York Times/ Reuters
Consumer spending rose for an eighth straight month in February as households tapped savings to cover higher food and energy prices.
http://jlne.ws/ig5H20
US muni bond demand slips into big freeze
By Nicole Bullock, FT.com
A feared meltdown has yet to materialise. Instead, the US municipal bond market, blighted by concern that struggling states and cities could default on their obligations, has gone into a deep freeze.
http://jlne.ws/eGzpJ1
U.S. Treasury Futures Begin Trading on NYSE Liffe U.S. Today
Eurodollar Futures Traded Nearly 190,000 Contracts in the First Week-
New York, March 28, 2011 – NYSE Liffe U.S., the U.S. futures exchange of NYSE Euronext (NYX), today announced the immediate availability of 2-year, 5-year and 10-year U.S. Treasury futures along with U.S. Bond and Ultra Bond futures contracts. These products complement the successful Eurodollar contract that debuted on March 21 with 189,484 contracts traded on NYSE Liffe U.S. in the first week. By utilizing the revolutionary new clearinghouse, New York Portfolio Clearing (NYPC), customers trading any of these interest rate futures products will benefit from the combined value of trading on NYSE Liffe U.S. coupled with the “one-pot” margining power of NYPC.
http://jlne.ws/ij2Dy6
Bernanke braves the Fed-bashers
By Clive Crook, Financial Times
Ben Bernanke, chairman of the Federal Reserve, chose an interesting moment to announce, as he did last week, that the Fed will depart from tradition and start holding quarterly news conferences. The first is scheduled to follow the next meeting of the Federal Open Market Committee on April 27. The Fed chief will not be short of things to discuss.
http://jlne.ws/hgns1y
Three new retail bond listings in two weeks
Press Release
London Stock Exchange Group today welcomes the listing of a new bond to its Order book for Retail Bonds (ORB), the third such product to be launched on the platform in the last two weeks. The bond, issued by Lloyds TSB is also the fifth to be launched specifically for ORB so far this year.
http://jlne.ws/gHSVNe
Note to Banks: It’s Not 2006 Anymore
By GRETCHEN MORGENSON, NY Times
NOSTALGIA is running high on Wall Street for the days when junk mortgage underwriting and opaque derivatives trading juiced bank profits. As regulators continue to devise the machinery of the Dodd-Frank regulatory reform law, major financial institutions are working overtime in Washington to bring the good times back again. Unfortunately for taxpayers, some of these efforts are gaining traction, particularly regarding the regulation of derivatives and mortgages.
http://jlne.ws/ienpPf
Big retirement market luring banks
Worcester Telegram & Gazette
Retirement savings in the U.S. may swell to $4 trillion over the next four years and the nation's largest banks are angling for a bigger share of that money.
http://jlne.ws/fgUW7t
Irish Banks Edge Closer to Stress Test Results
By CHRIS V. NICHOLSON, NY Times
Ireland’s troubled banks may need up to 23 billion euros more to meet their capital requirements after the results of the stress tests are released by the Irish central bank on Thursday, Irish newspapers have reported.
http://jlne.ws/dKgUoA
Regions moves to 14th largest American bank
Mobile Press-Register
Regions Financial Group is now the 14th largest bank in the United States by assets, according to SNL Financial, a financial analysis firm based in Charlottesville, Va. The Birmingham-based owner of Regions Bank moved up one spot on the list,...
http://jlne.ws/f08ryK
US credit card groups target the wealthy
By Suzanne Kapner in New York - Financial Times
Credit card companies are offering a number of incentives to attract wealthy customers as they seek to reduce exposure to the increasingly indebted low-income borrowers.
http://jlne.ws/gDYxOE
FSA widens insider trading net to derivatives market
eFinancial News
The FSA has reportedly begun investigating the use of credit default swaps as a vehicle for insider trading, requesting information about the possibility of using the derivatives to carry out market abuse in the first instance of a crackdown on insider trading in these types of products.
http://jlne.ws/dE0sIT
Northern Trust to buy Citadel unit
Chicago Tribune
By Dow Jones Newswires Posted today at 6:01 a.m. Chicago-based Northern Trust Corp. has agreed to buy hedge fund manager Citadel LLC's fund administration business, Omnium LLC, a person familiar with the situation said Thursday. The value of the deal was not known.
http://jlne.ws/hgU6vD
U.S. Treasury Futures Begin Trading on NYSE Liffe U.S.
Press Release
New York, March 28, 2011 – NYSE Liffe U.S., the U.S. futures exchange of NYSE Euronext (NYX), today announced the immediate availability of 2-year, 5-year and 10-year U.S. Treasury futures along with U.S. Bond and Ultra Bond futures contracts. These products complement the successful Eurodollar contract that debuted on March 21 with 189,484 contracts traded on NYSE Liffe U.S. in the first week. By utilizing the revolutionary new clearing house, New York Portfolio Clearing (NYPC), customers trading any of these interest rate futures products will benefit from the combined value of trading on NYSE Liffe U.S. coupled with the “one-pot” margining power of NYPC.
“Today, we are extremely pleased to offer Treasury interest rate futures to customers of NYSE Liffe U.S. Through the capital efficiency of the NYPC’s ‘one pot’ margin methodology and it’s unique automated delivery protocol, these Treasury futures represent a clear advancement in our customer’s ability to manage risk and optimize their use of capital,” said Thomas F. Callahan, CEO, NYSE Liffe U.S. “We are grateful for the strong level of support we have received from our customers to date and we sincerely thank them for their partnership in building a competitive new choice in the U.S. futures market.”
Interest-rate futures traded on NYSE Liffe U.S. will benefit from the unique capital efficiencies of NYPC’s ‘one-pot’ margining which, for the first time ever, assesses margin across fixed income asset classes based on the actual risk of a clearing member’s portfolio. Additionally, all U.S. Treasury futures traded on NYSE Liffe U.S. will benefit from an innovative, streamlined delivery process allowing for the seamless netting of futures and cash securities. These innovations provide unique benefits to global futures market participants by reducing the cost, complexity and risk inherent in the traditional trading and clearing model.
NYSE Liffe U.S. is a global, multi-asset class futures exchange. In addition to liquid mini-sized gold and silver futures, NYSE Liffe U.S. will become the sole U.S. exchange for MSCI-based index futures products on June 17, 2011. On or before this date, futures on two of MSCI's most widely tracked global benchmarks, MSCI Emerging Markets and MSCI EAFE, will cease trading on CME and migrate to NYSE Liffe U.S.
About NYPC
NYPC is a joint venture of The Depository Trust and Clearing Corporation (DTCC) and NYSE
Euronext created to deliver unique capital efficiencies to the market by netting and reducing risks between a clearing member’s portfolio of cash bonds and derivatives. It will also provide important operational efficiencies to its clearing members, including the “locked-in” trade delivery process that allows expiring futures to be seamlessly submitted to the Fixed Income Clearing Corporation (FICC) subsidiary of DTCC for physical delivery. In 2010, FICC cleared and settled transactions valued at average of about $4.6 trillion daily.
About NYSE Liffe U.S.
In March 2010, the exchange sold a substantial minority ownership stake to six leading market participants, Citadel Securities, DRW Ventures LLC (an affiliate of DRW Trading Group), GETCO, Goldman Sachs, Morgan Stanley and UBS. NYSE Liffe U.S. utilizes the proven LIFFE CONNECT® trading platform designed and maintained by NYSE Technologies that matched nearly 4.7 million contracts per day in 2010 on the NYSE Liffe European markets. Offering a range of global connectivity options, NYSE Liffe U.S. enables its members to efficiently transact on the platform in a highly cost-effective manner while also utilizing other NYSE Euronext exchanges with unique pricing incentives and simplified access.
For more information on NYSE Liffe U.S., please visit: www.nyse.com/nyseliffeus
New York, March 28, 2011 – NYSE Liffe U.S., the U.S. futures exchange of NYSE Euronext (NYX), today announced the immediate availability of 2-year, 5-year and 10-year U.S. Treasury futures along with U.S. Bond and Ultra Bond futures contracts. These products complement the successful Eurodollar contract that debuted on March 21 with 189,484 contracts traded on NYSE Liffe U.S. in the first week. By utilizing the revolutionary new clearing house, New York Portfolio Clearing (NYPC), customers trading any of these interest rate futures products will benefit from the combined value of trading on NYSE Liffe U.S. coupled with the “one-pot” margining power of NYPC.
“Today, we are extremely pleased to offer Treasury interest rate futures to customers of NYSE Liffe U.S. Through the capital efficiency of the NYPC’s ‘one pot’ margin methodology and it’s unique automated delivery protocol, these Treasury futures represent a clear advancement in our customer’s ability to manage risk and optimize their use of capital,” said Thomas F. Callahan, CEO, NYSE Liffe U.S. “We are grateful for the strong level of support we have received from our customers to date and we sincerely thank them for their partnership in building a competitive new choice in the U.S. futures market.”
Interest-rate futures traded on NYSE Liffe U.S. will benefit from the unique capital efficiencies of NYPC’s ‘one-pot’ margining which, for the first time ever, assesses margin across fixed income asset classes based on the actual risk of a clearing member’s portfolio. Additionally, all U.S. Treasury futures traded on NYSE Liffe U.S. will benefit from an innovative, streamlined delivery process allowing for the seamless netting of futures and cash securities. These innovations provide unique benefits to global futures market participants by reducing the cost, complexity and risk inherent in the traditional trading and clearing model.
NYSE Liffe U.S. is a global, multi-asset class futures exchange. In addition to liquid mini-sized gold and silver futures, NYSE Liffe U.S. will become the sole U.S. exchange for MSCI-based index futures products on June 17, 2011. On or before this date, futures on two of MSCI's most widely tracked global benchmarks, MSCI Emerging Markets and MSCI EAFE, will cease trading on CME and migrate to NYSE Liffe U.S.
About NYPC
NYPC is a joint venture of The Depository Trust and Clearing Corporation (DTCC) and NYSE
Euronext created to deliver unique capital efficiencies to the market by netting and reducing risks between a clearing member’s portfolio of cash bonds and derivatives. It will also provide important operational efficiencies to its clearing members, including the “locked-in” trade delivery process that allows expiring futures to be seamlessly submitted to the Fixed Income Clearing Corporation (FICC) subsidiary of DTCC for physical delivery. In 2010, FICC cleared and settled transactions valued at average of about $4.6 trillion daily.
About NYSE Liffe U.S.
In March 2010, the exchange sold a substantial minority ownership stake to six leading market participants, Citadel Securities, DRW Ventures LLC (an affiliate of DRW Trading Group), GETCO, Goldman Sachs, Morgan Stanley and UBS. NYSE Liffe U.S. utilizes the proven LIFFE CONNECT® trading platform designed and maintained by NYSE Technologies that matched nearly 4.7 million contracts per day in 2010 on the NYSE Liffe European markets. Offering a range of global connectivity options, NYSE Liffe U.S. enables its members to efficiently transact on the platform in a highly cost-effective manner while also utilizing other NYSE Euronext exchanges with unique pricing incentives and simplified access.
For more information on NYSE Liffe U.S., please visit: www.nyse.com/nyseliffeus
Jumat, 25 Maret 2011
Top Interest Rate Headlines 03-25-11: Europe's High-Yield Bond Market Grows
Europe's High-Yield Bond Market Grows
BY MICHAEL ANEIRO, WSJ.com
As European banks gird for more stringent regulation, lower-rated companies that have long depended on banks for funding—most recently Phones 4u and Swissport—are increasingly turning to the bond market instead.
http://jlne.ws/fyEGep
Eyes Open, WaMu Still Failed
By FLOYD NORRIS, NY Times
In the crazy days of 2005 and 2006, when home prices were soaring and mortgage underwriting standards were crumbling, it took foresight and judgment to see that it was all a bubble. As it happens, there was a bank chief executive whose internal forecasts now seem prescient. “I have never seen such a high-risk housing market,” he wrote to the bank’s chief risk officer in 2005. A year later he forecast the housing market would be “weak for quite some time as we unwind the speculative bubble.”
http://jlne.ws/ecB9Ra
Whatever You Do, Just Don't Steal From Goldman Sachs
By DAVID WEIDNER - WSJ
Sergey Aleynikov is a criminal, a convicted thief. He belongs behind bars. He was found guilty of stealing a proprietary computer program from Goldman Sachs Group Inc. He stole it on his last day of work. He tried to cover his tracks, encrypting the file transfer, deleting the program he used to steal it. Prosecutors said Mr. Aleynikov had been stealing code for the two years he worked at Goldman as a programmer. But Mr. Aleynikov's case is problematic, especially the way it ended.
http://jlne.ws/eCiun9
Swap-Trade Platforms Triggered by Dodd-Frank Are Considered at CBOE, NYSE
Nina Mehta, Bloomberg
CBOE Holdings Inc. (CBOE) and NYSE Euronext may create venues for derivatives that now trade over the counter to capitalize on proposed rules designed to bring more transparency to the $583 trillion market.
http://jlne.ws/hfRDwk
CFTC Swaps Rule on Trading Partners Too Restrictive, Users Say
By Matthew Leising, Bloomberg
A Commodity Futures Trading Commission proposal to require that prices for any swap trade must be offered by at least five market participants is too restrictive, according to industry users and executives. The CFTC rule would affect how so-called swap-execution facilities are allowed to operate for derivatives trades that are to be processed by a clearinghouse. The Securities and Exchange Commission has suggested an easier mandate, proposing that only one participant in the market needs to offer a price for any trade.
http://jlne.ws/eWfHop
Spanish cajas in talks with hedge funds
By Miles Johnson and Victor Mallet in Madrid, Financial Times
Some of the world’s largest hedge funds and private equity groups have held talks with Spain’s troubled savings banks as they rush to secure E15bn ($21.3bn) in new capital to avoid a state bail-out.
http://jlne.ws/fWruWg
Portugal downgraded for second time
By Peter Wise in Lisbon, Financial Times
Standard & Poor’s has cut Portugal’s credit rating by two notches, warning that the country’s political crisis heightened the risk that it would be unable to refinance its debt.
http://jlne.ws/hvyZom
Barclays at centre of Libor inquiry
By Brooke Masters and Megan Murphy in London, Financial Times
Barclays is emerging as a key focus of the US and UK regulatory probe into alleged rigging of benchmark interbank lending rates that are the reference point for $350,000bn in financial products, people familiar with the investigation said.
http://jlne.ws/eGzJFB
US banks in ‘cash for keys’ foreclosure talks
By Tom Braithwaite in Washington and Francesco Guerrera, Suzanne Kapner and Justin Baer in New York, Financial Times
The five biggest US mortgage servicers were told this week at a private meeting with regulators to consider paying delinquent borrowers up to $21,000 each as part of a broader settlement of the foreclosure crisis .
http://jlne.ws/ftTSkv
EU agrees eurozone fund financing
By Peter Spiegel in Brussels, Financial Times
Angela Merkel, the German chancellor, convinced her European counterparts to restructure a new E500bn eurozone bail-out fund so that members will not have to pay cash into the system so quickly.
http://jlne.ws/hz5VI4
S.&P. Warns About ‘Excessive’ Bank Dividends
By BEN PROTESS, NY Times
Standard & Poor’s issued a warning on Thursday to big banks itching to increase their dividends: proceed with caution.
http://jlne.ws/gtrCWh
Ana Botin Faces Her Biggest Test at Santander
BusinessWeek
As CEO of the U.K. unit, she must pull off an IPO and repair the bank's customer service reputation
http://jlne.ws/gEbYVC
George Osborne 'to sell off RBS and Lloyds'
Evening Standard
George Osborne is set to start selling off shares in largely-nationalised banks in time to offer pre-election tax cuts, it was claimed today.
http://jlne.ws/fQOvk2
Jefferies Said to Add UBS, Morgan Stanley Fixed-Income Traders
By Lisa Abramowicz and Shannon D. Harrington, Bloomberg
March 25 (Bloomberg) -- Jefferies Group Inc. hired four corporate debt traders from UBS AG, Morgan Stanley and Deutsche Bank AG as the investment bank expands in fixed-income amid record issuance. Richard Roche, a bond trader, David Murphy, a debt salesman, both from Morgan Stanley, were among those hired, according to people familiar with the moves. Jefferies also hired Tim Sullivan, a former UBS credit trader, and Sean George, from Deutsche Bank, said the people, who declined to be identified because the changes haven’t been publicly announced.
FSA confirms final rules for auditors’ client assets reports
Press Release
The Financial Services Authority (FSA) has today confirmed rules to improve the quality and consistency of auditors’ client assets reports.
http://jlne.ws/f24JG9
BY MICHAEL ANEIRO, WSJ.com
As European banks gird for more stringent regulation, lower-rated companies that have long depended on banks for funding—most recently Phones 4u and Swissport—are increasingly turning to the bond market instead.
http://jlne.ws/fyEGep
Eyes Open, WaMu Still Failed
By FLOYD NORRIS, NY Times
In the crazy days of 2005 and 2006, when home prices were soaring and mortgage underwriting standards were crumbling, it took foresight and judgment to see that it was all a bubble. As it happens, there was a bank chief executive whose internal forecasts now seem prescient. “I have never seen such a high-risk housing market,” he wrote to the bank’s chief risk officer in 2005. A year later he forecast the housing market would be “weak for quite some time as we unwind the speculative bubble.”
http://jlne.ws/ecB9Ra
Whatever You Do, Just Don't Steal From Goldman Sachs
By DAVID WEIDNER - WSJ
Sergey Aleynikov is a criminal, a convicted thief. He belongs behind bars. He was found guilty of stealing a proprietary computer program from Goldman Sachs Group Inc. He stole it on his last day of work. He tried to cover his tracks, encrypting the file transfer, deleting the program he used to steal it. Prosecutors said Mr. Aleynikov had been stealing code for the two years he worked at Goldman as a programmer. But Mr. Aleynikov's case is problematic, especially the way it ended.
http://jlne.ws/eCiun9
Swap-Trade Platforms Triggered by Dodd-Frank Are Considered at CBOE, NYSE
Nina Mehta, Bloomberg
CBOE Holdings Inc. (CBOE) and NYSE Euronext may create venues for derivatives that now trade over the counter to capitalize on proposed rules designed to bring more transparency to the $583 trillion market.
http://jlne.ws/hfRDwk
CFTC Swaps Rule on Trading Partners Too Restrictive, Users Say
By Matthew Leising, Bloomberg
A Commodity Futures Trading Commission proposal to require that prices for any swap trade must be offered by at least five market participants is too restrictive, according to industry users and executives. The CFTC rule would affect how so-called swap-execution facilities are allowed to operate for derivatives trades that are to be processed by a clearinghouse. The Securities and Exchange Commission has suggested an easier mandate, proposing that only one participant in the market needs to offer a price for any trade.
http://jlne.ws/eWfHop
Spanish cajas in talks with hedge funds
By Miles Johnson and Victor Mallet in Madrid, Financial Times
Some of the world’s largest hedge funds and private equity groups have held talks with Spain’s troubled savings banks as they rush to secure E15bn ($21.3bn) in new capital to avoid a state bail-out.
http://jlne.ws/fWruWg
Portugal downgraded for second time
By Peter Wise in Lisbon, Financial Times
Standard & Poor’s has cut Portugal’s credit rating by two notches, warning that the country’s political crisis heightened the risk that it would be unable to refinance its debt.
http://jlne.ws/hvyZom
Barclays at centre of Libor inquiry
By Brooke Masters and Megan Murphy in London, Financial Times
Barclays is emerging as a key focus of the US and UK regulatory probe into alleged rigging of benchmark interbank lending rates that are the reference point for $350,000bn in financial products, people familiar with the investigation said.
http://jlne.ws/eGzJFB
US banks in ‘cash for keys’ foreclosure talks
By Tom Braithwaite in Washington and Francesco Guerrera, Suzanne Kapner and Justin Baer in New York, Financial Times
The five biggest US mortgage servicers were told this week at a private meeting with regulators to consider paying delinquent borrowers up to $21,000 each as part of a broader settlement of the foreclosure crisis .
http://jlne.ws/ftTSkv
EU agrees eurozone fund financing
By Peter Spiegel in Brussels, Financial Times
Angela Merkel, the German chancellor, convinced her European counterparts to restructure a new E500bn eurozone bail-out fund so that members will not have to pay cash into the system so quickly.
http://jlne.ws/hz5VI4
S.&P. Warns About ‘Excessive’ Bank Dividends
By BEN PROTESS, NY Times
Standard & Poor’s issued a warning on Thursday to big banks itching to increase their dividends: proceed with caution.
http://jlne.ws/gtrCWh
Ana Botin Faces Her Biggest Test at Santander
BusinessWeek
As CEO of the U.K. unit, she must pull off an IPO and repair the bank's customer service reputation
http://jlne.ws/gEbYVC
George Osborne 'to sell off RBS and Lloyds'
Evening Standard
George Osborne is set to start selling off shares in largely-nationalised banks in time to offer pre-election tax cuts, it was claimed today.
http://jlne.ws/fQOvk2
Jefferies Said to Add UBS, Morgan Stanley Fixed-Income Traders
By Lisa Abramowicz and Shannon D. Harrington, Bloomberg
March 25 (Bloomberg) -- Jefferies Group Inc. hired four corporate debt traders from UBS AG, Morgan Stanley and Deutsche Bank AG as the investment bank expands in fixed-income amid record issuance. Richard Roche, a bond trader, David Murphy, a debt salesman, both from Morgan Stanley, were among those hired, according to people familiar with the moves. Jefferies also hired Tim Sullivan, a former UBS credit trader, and Sean George, from Deutsche Bank, said the people, who declined to be identified because the changes haven’t been publicly announced.
FSA confirms final rules for auditors’ client assets reports
Press Release
The Financial Services Authority (FSA) has today confirmed rules to improve the quality and consistency of auditors’ client assets reports.
http://jlne.ws/f24JG9
Rabu, 23 Maret 2011
Top Interest Rate Headlines 03-23-11: South Africa to Join BRIC
South Africa to Join BRIC
WPR
South Africa will become a member of the Brazil, Russia, India and China (BRIC) group at the group's meeting in China next month. Though South Africa's economy is significantly smaller than the four BRIC nations, it represents 40 percent of sub-Saharan Africa's economy. The group will also discuss creating a formal structure and secretariat to better facilitate cooperation between members.
http://jlne.ws/gDc2QQ
BBH's Schoenfeld Likes Munis, Corporate Bonds, Shuns Treasurys
Jeffrey Schoenfeld, a top fixed-income executive at Brown Brothers Harriman, is stocking up on municipal debt and on high-quality corporate bonds on the view that riskier debt will perform well as the Federal Reserve keeps monetary policy accomodative for longer than many expect.
http://jlne.ws/ejG1zT
New rules help smaller banks: Bernanke
MARTIN CRUTSINGER, The Globe And Mail
U.S. Federal Reserve Chairman Ben Bernanke told a group of executives from smaller banks Wednesday that the financial overhaul will level the playing field for them with the industry's giants.
http://jlne.ws/equDhU
U.S. Targets Banks Over Credit Union Bond Losses
BY LIZ RAPPAPORT, WSJ.com
Federal regulators are blaming Wall Street's biggest firms for the collapse of five institutions at the heart of the nation's credit-union industry and are seeking to recoup tens of billions of dollars in losses on securities that doomed the five.
http://jlne.ws/ee2pUc
Access to Capital: Fueling Business Growth and Job Creation
By: Aneesh Chopra, U.S. Department of the Treasury
I had the pleasure yesterday of sitting down with nearly 100 leading entrepreneurs, investors, underwriters, academics, and fund managers—including Chuck Newhall, the legendary co-Founder of one of the Nation’s most prestigious venture capital firms, New Enterprise Associates—at the Treasury Department’s Access to Capital Conference. The event was one of a number of creative forums the Administration has held to generate new, actionable ideas to ensure that small businesses have the resources to achieve high growth.
http://jlne.ws/i9Ixet
New home sales break record low set last August
CNN Money
New home sales fell 16.9% in February, to the lowest level since the government began keeping records in 1963, as the reeling housing market failed to generate any momentum.
http://jlne.ws/hTbWk4
IFR: Canada eyes covered bond law to boost mortgage funding
By Aimee Donnellan, Reuters
Canada is poised to establish a new legal framework for covered bonds, which will make it simpler for the country's biggest banks to access the most efficient form of mortgage funding in its domestic market, sources said.
http://jlne.ws/ha7PHV
CME takes page from ICE on credit swaps
CME Group Inc will split the pool of money backing credit default swaps from CME's main guarantee fund, a top CME executive told Reuters, taking a page from rival IntercontinentalExchange Inc in a bid to revamp a stalled swaps clearing effort.
http://jlne.ws/hC3Gzt
NYSE Liffe U.S. Trades 1.3% of CME Group Eurodollar Futures
By Matthew Leising, Bloomberg
NYSE Euronext (NYX)’s U.S. futures market traded 20,336 Eurodollar contracts today, the second day of the new offering, as it seeks to take on CME Group Inc. (CME), the world’s largest futures exchange. NYSE Liffe U.S. and its partner New York Portfolio Clearing are offering investors margin offsets to target CME Group’s 98 percent share of U.S. futures trading. Chicago-based CME Group has said it would offer the same type of margin reduction between futures and cash Treasury positions by the end of the month. Eurodollar futures have historically been one of CME Group’s most-traded interest-rate products.
http://jlne.ws/e4hUwP
CFTC's Gensler-financial system still uncertain
Reuters
WASHINGTON - Preventing another financial crisis similar to the one that shook the markets in 2008 requires a global effort and cannot be done by one nation alone, the head of the U.S. Commodity Futures Trading Commission said on Tuesday.
http://jlne.ws/eggGPo
International Monetary And Financial Committee Selects Tharman Shanmugaratnam As New Chairman
Press Release
The members of the International Monetary and Financial Committee (IMFC), the policy advisory committee of the International Monetary Fund (IMF), have selected Mr. Tharman Shanmugaratnam, Minister for Finance of Singapore, as Chairman of the Committee. Minister Tharman succeeds Dr. Youssef Boutros-Ghali, Egypt’s former Minister of Finance, who resigned on February 4, 2011.
http://jlne.ws/i2QPVb
4 Wall Street Banks Still Dominate Derivatives Trade
By BEN PROTESS - NY Times
A few select titans of Wall Street continue to dominate the banking industry’s role in derivatives trading, according to a report issued by the Office of the Comptroller of the Currency. The nation’s four largest banks — JPMorgan Chase, Citigroup, Bank of America and Goldman Sachs — hold nearly 95 percent of the industry’s total exposure to derivatives contracts, the report found.
http://jlne.ws/fdhASX
Fed Rejects BofA’s Dividend Plan
By DEALBOOK, NY Times
Bank of America revealed on Wednesday that the Federal Reserve had rejected the bank’s plan to increase its dividend in the second half of 2011. The government raised its objections as part of the second round of stress tests, the results of which came out on Friday.
http://jlne.ws/epto1t
UBS denies speculation about sale of US wealth unit
eFinancial News
UBS on Monday rejected media speculation that it plans to sell its Wealth Management Americas business.
http://jlne.ws/giAk9p
Markit Launches Sovereign CDS Index On Latin America
By Katy Burne Of DOW JONES NEWSWIRES
Bond and derivatives pricing service Markit on Tuesday launched an index tracking credit default swaps on Latin America sovereign debt.
http://jlne.ws/eAXjUb
WPR
South Africa will become a member of the Brazil, Russia, India and China (BRIC) group at the group's meeting in China next month. Though South Africa's economy is significantly smaller than the four BRIC nations, it represents 40 percent of sub-Saharan Africa's economy. The group will also discuss creating a formal structure and secretariat to better facilitate cooperation between members.
http://jlne.ws/gDc2QQ
BBH's Schoenfeld Likes Munis, Corporate Bonds, Shuns Treasurys
Jeffrey Schoenfeld, a top fixed-income executive at Brown Brothers Harriman, is stocking up on municipal debt and on high-quality corporate bonds on the view that riskier debt will perform well as the Federal Reserve keeps monetary policy accomodative for longer than many expect.
http://jlne.ws/ejG1zT
New rules help smaller banks: Bernanke
MARTIN CRUTSINGER, The Globe And Mail
U.S. Federal Reserve Chairman Ben Bernanke told a group of executives from smaller banks Wednesday that the financial overhaul will level the playing field for them with the industry's giants.
http://jlne.ws/equDhU
U.S. Targets Banks Over Credit Union Bond Losses
BY LIZ RAPPAPORT, WSJ.com
Federal regulators are blaming Wall Street's biggest firms for the collapse of five institutions at the heart of the nation's credit-union industry and are seeking to recoup tens of billions of dollars in losses on securities that doomed the five.
http://jlne.ws/ee2pUc
Access to Capital: Fueling Business Growth and Job Creation
By: Aneesh Chopra, U.S. Department of the Treasury
I had the pleasure yesterday of sitting down with nearly 100 leading entrepreneurs, investors, underwriters, academics, and fund managers—including Chuck Newhall, the legendary co-Founder of one of the Nation’s most prestigious venture capital firms, New Enterprise Associates—at the Treasury Department’s Access to Capital Conference. The event was one of a number of creative forums the Administration has held to generate new, actionable ideas to ensure that small businesses have the resources to achieve high growth.
http://jlne.ws/i9Ixet
New home sales break record low set last August
CNN Money
New home sales fell 16.9% in February, to the lowest level since the government began keeping records in 1963, as the reeling housing market failed to generate any momentum.
http://jlne.ws/hTbWk4
IFR: Canada eyes covered bond law to boost mortgage funding
By Aimee Donnellan, Reuters
Canada is poised to establish a new legal framework for covered bonds, which will make it simpler for the country's biggest banks to access the most efficient form of mortgage funding in its domestic market, sources said.
http://jlne.ws/ha7PHV
CME takes page from ICE on credit swaps
CME Group Inc will split the pool of money backing credit default swaps from CME's main guarantee fund, a top CME executive told Reuters, taking a page from rival IntercontinentalExchange Inc in a bid to revamp a stalled swaps clearing effort.
http://jlne.ws/hC3Gzt
NYSE Liffe U.S. Trades 1.3% of CME Group Eurodollar Futures
By Matthew Leising, Bloomberg
NYSE Euronext (NYX)’s U.S. futures market traded 20,336 Eurodollar contracts today, the second day of the new offering, as it seeks to take on CME Group Inc. (CME), the world’s largest futures exchange. NYSE Liffe U.S. and its partner New York Portfolio Clearing are offering investors margin offsets to target CME Group’s 98 percent share of U.S. futures trading. Chicago-based CME Group has said it would offer the same type of margin reduction between futures and cash Treasury positions by the end of the month. Eurodollar futures have historically been one of CME Group’s most-traded interest-rate products.
http://jlne.ws/e4hUwP
CFTC's Gensler-financial system still uncertain
Reuters
WASHINGTON - Preventing another financial crisis similar to the one that shook the markets in 2008 requires a global effort and cannot be done by one nation alone, the head of the U.S. Commodity Futures Trading Commission said on Tuesday.
http://jlne.ws/eggGPo
International Monetary And Financial Committee Selects Tharman Shanmugaratnam As New Chairman
Press Release
The members of the International Monetary and Financial Committee (IMFC), the policy advisory committee of the International Monetary Fund (IMF), have selected Mr. Tharman Shanmugaratnam, Minister for Finance of Singapore, as Chairman of the Committee. Minister Tharman succeeds Dr. Youssef Boutros-Ghali, Egypt’s former Minister of Finance, who resigned on February 4, 2011.
http://jlne.ws/i2QPVb
4 Wall Street Banks Still Dominate Derivatives Trade
By BEN PROTESS - NY Times
A few select titans of Wall Street continue to dominate the banking industry’s role in derivatives trading, according to a report issued by the Office of the Comptroller of the Currency. The nation’s four largest banks — JPMorgan Chase, Citigroup, Bank of America and Goldman Sachs — hold nearly 95 percent of the industry’s total exposure to derivatives contracts, the report found.
http://jlne.ws/fdhASX
Fed Rejects BofA’s Dividend Plan
By DEALBOOK, NY Times
Bank of America revealed on Wednesday that the Federal Reserve had rejected the bank’s plan to increase its dividend in the second half of 2011. The government raised its objections as part of the second round of stress tests, the results of which came out on Friday.
http://jlne.ws/epto1t
UBS denies speculation about sale of US wealth unit
eFinancial News
UBS on Monday rejected media speculation that it plans to sell its Wealth Management Americas business.
http://jlne.ws/giAk9p
Markit Launches Sovereign CDS Index On Latin America
By Katy Burne Of DOW JONES NEWSWIRES
Bond and derivatives pricing service Markit on Tuesday launched an index tracking credit default swaps on Latin America sovereign debt.
http://jlne.ws/eAXjUb
Selasa, 22 Maret 2011
Top Interest Rate Headlines 03-22-11: Treasury’s TARP Investment Chief to Step Down
Treasury’s TARP Investment Chief to Step Down
By MICHAEL J. DE LA MERCED - NY Times
David N. Miller, the chief investment officer of the Treasury Department’s bailout program, is planning on leaving the government at the end of the month to return to the private sector.
http://jlne.ws/gO747S
Higher Inflation Expectations Are Spreading
By Kathleen Madigan, WSJ.com
The Federal Reserve expects higher price pressures to be “transitory.” But other economic players aren’t so sure. A new survey of finance professionals done by J.P. Morgan shows core inflation expectations are rising around the world.
http://jlne.ws/gekA7A
Fed says 2010 payment to government sets record
Martin Crutsinge, Associated Press
The Federal Reserve is paying a record $79.3 billion to the U.S. government after the central bank earned a record amount of money last year from programs aimed at boosting the economy. The Fed says its payment to the Treasury Department for 2010 is 67 percent higher than $47.4 billion it paid in 2009, the previous record.
http://jlne.ws/dHJa8d
Federal Reserve System publishes annual financial statements
Bloomberg News
Michael Oxley, the former congressman who co-wrote the Sarbanes-Oxley Act of 2002, has registered as a lobbyist for the Financial Industry Regulatory Authority to promote self-regulation of investment advisors.
http://jlne.ws/e65LV2
Michael Oxley Registers To Lobby For FINRA To Regulate RIAs
advisors4advisors
Having given his name to Sarbanes-Oxley, Michael Oxley, now a lawyer in private practice, has filed as a lobbyist on behalf of FINRA in order to plead that regulator's case in Congress for taking over RIA supervision.
http://jlne.ws/fzZBXY
Fed’s Fisher Opposes Extension of QE2
By Brian Blackstone and Nina Koeppen, WSJ.com
U.S. Federal Reserve Bank of Dallas President Richard Fisher said he is likely to be among the first Fed officials to press for tighter monetary policy when the time comes, warning that inflationary pressures are building.
http://jlne.ws/eqQ85L
Fed's Fisher: U.S. debt situation at tipping point
By Marc Jones and Sakari Suoninen, Reuters
The U.S. debt situation is at a "tipping point," Dallas Federal Reserve Bank President Richard Fisher said on Tuesday, and urged the U.S. central bank to refrain from any further stimulus measures.
http://jlne.ws/fyolLE
Banks' use of ECB lending facilities
Reuters
Commercial bank borrowing from the European Central Bank has been high in countries most affected by the sovereign debt crisis for
several months.
http://jlne.ws/gwpFL1
U.S. home prices dip in January -- FHFA
U.S. Federal Housing Finance Agency home price index
Reuters
http://jlne.ws/eNUe4P
UK inflation revives talk of early interest rate rise
By David Milliken and Christina Fincher, Reuters
British inflation surged to a 28-month high of 4.4 percent last month, reviving speculation that the Bank of England will not wait much longer to raise interest rates.
http://jlne.ws/emBrB8
BNY Mellon ups dividend, to buy back shares
By Wallace Witkowski, MarketWatch
New York Mellon Corp.said Tuesday that its board raised the quarterly dividend to 13 cents a share from 9 cents a share. The dividend is payable May 10 to shareholders as of April 29. Also, Bank of New York Mellon said it plans to buy back $1.3 billion in common shares in 2011
http://jlne.ws/ebNbLf
Standard & Poor's Global Credit Portal
The outlook for Hong Kong banks is stable despite the increased risk due to the surge in lending in the past 15 months, according to an article Standard & Poor's Ratings Services published today.
http://jlne.ws/fIsoMe
US: $0.180B reverse repo-2 days 2009-12-11 NYFed temporary open market operations
To implement monetary policy, short-term repurchase and reverse repurchase agreements are used to temporarily affect the size of the Federal Reserve System's portfolio and influence day-to-day trading in the federal funds market.
http://jlne.ws/hHKI8r
Creditex Expands Electronic CDS Trading in North America
Press Release
NEW YORK, March 22, 2011 /PRNewswire/ -- IntercontinentalExchange (NYSE: ICE), a leading operator of global futures exchanges, over-the-counter (OTC) markets and clearing houses, announced that Creditex, a wholly-owned subsidiary of ICE and a global leader in interdealer trade execution for credit derivatives, has expanded its electronic trading capabilities and products for credit default swaps (CDS) for the North American market. With the addition of key indexes, the Creditex RealTime electronic platform began executing trades for the most liquid Investment Grade (IG) and High Yield (HY) series of CDX indexes on March 7, 2011. Since the introduction, over 80% of the CDX index trades arranged by Creditex have been executed on the Creditex RealTime platform.
http://jlne.ws/fXbx4s
Corporate 'Relationship Banking' Threatened by New Rule
By Daniel Indiviglio - The Atlantic
Since the financial crisis, the once-intense battle between full-service mega-banks like Citigroup and JPMorgan and traditional investment banks like Goldman Sachs and Morgan Stanley has become less relevant. When every bank is struggling to survive, two groups competing for dominance seems less relevant. But now that the industry has mostly healed, the war wages on. This week, we learn of a new twist that could dramatically help the investment banks: a new rule is being considered that would threaten corporate "relationship banking."
http://jlne.ws/haddgg
U.S. Treasury To Begin Orderly Wind Down Of Its $142 Billion Mortgage-Backed Securities Portfolio
Press Release
Treasury Will Authorize Sale Of Up To $10 Billion In Agency-Guaranteed Mortgage-Backed Securities Per Month - Part Of Continued Wind Down Of Holdings Acquired As Part Of The Financial Stabilization Actions In 2008 And 2009 To Help Combat The Financial Crisis
http://jlne.ws/hrUgzy
Barclays considers bid for US securities
By Justin Baer and Helen Thomas in New York - Financial Times
Barclays is among a group of investors weighing a rival bid for a portfolio of mortgage-backed securities that has already drawn a $15.7bn offer from AIG, people familiar with the matter said.
http://jlne.ws/dLdRIR
Shadow banks: A real problem for regulators
By Brooke Masters - Financial Times
Now that regulators have moved to impose tougher capital and liquidity requirements on banks, attention is turning to other sources of systemic risk, especially fast-growing entities muscling in on bank business that have escaped the same level of scrutiny.
http://jlne.ws/ij5AkR
An App For That? Five Ways Banks Could Learn From Apple's iPad
By DAVID WEIDNER - WSJ
The line for the iPad 2 at Apple's White Plains, N.Y., store stretched around the third level of the mall. The line blocked restaurants, Anthropologie and Brooks Brothers stores. Security guards had to keep the escalator exits clear. Meanwhile, the nation's banks are getting attention by covertly raising fees charged to customers who use their automated teller machines: a whopping $5 in some cases.
http://jlne.ws/elxVCi
Deutsche Bank Loses German Top Court Case Over 'Spread Ladder' Swap Sales
Bloomberg
Deutsche Bank AG (DBK) , Germany 's biggest bank, lost a ruling over an interest-rate swap in the first case over sales of the products to companies and local governments heard at the country's highest civil court.
http://jlne.ws/i6X5ro
Ex-UBS Banker Poteroba Gets 22 Months for Insider Trading
BusinessWeek
Igor Poteroba, a former UBS AG investment banker who pleaded guilty to insider trading, was sentenced to 22 months in prison.
http://jlne.ws/g9W5Su
By MICHAEL J. DE LA MERCED - NY Times
David N. Miller, the chief investment officer of the Treasury Department’s bailout program, is planning on leaving the government at the end of the month to return to the private sector.
http://jlne.ws/gO747S
Higher Inflation Expectations Are Spreading
By Kathleen Madigan, WSJ.com
The Federal Reserve expects higher price pressures to be “transitory.” But other economic players aren’t so sure. A new survey of finance professionals done by J.P. Morgan shows core inflation expectations are rising around the world.
http://jlne.ws/gekA7A
Fed says 2010 payment to government sets record
Martin Crutsinge, Associated Press
The Federal Reserve is paying a record $79.3 billion to the U.S. government after the central bank earned a record amount of money last year from programs aimed at boosting the economy. The Fed says its payment to the Treasury Department for 2010 is 67 percent higher than $47.4 billion it paid in 2009, the previous record.
http://jlne.ws/dHJa8d
Federal Reserve System publishes annual financial statements
Bloomberg News
Michael Oxley, the former congressman who co-wrote the Sarbanes-Oxley Act of 2002, has registered as a lobbyist for the Financial Industry Regulatory Authority to promote self-regulation of investment advisors.
http://jlne.ws/e65LV2
Michael Oxley Registers To Lobby For FINRA To Regulate RIAs
advisors4advisors
Having given his name to Sarbanes-Oxley, Michael Oxley, now a lawyer in private practice, has filed as a lobbyist on behalf of FINRA in order to plead that regulator's case in Congress for taking over RIA supervision.
http://jlne.ws/fzZBXY
Fed’s Fisher Opposes Extension of QE2
By Brian Blackstone and Nina Koeppen, WSJ.com
U.S. Federal Reserve Bank of Dallas President Richard Fisher said he is likely to be among the first Fed officials to press for tighter monetary policy when the time comes, warning that inflationary pressures are building.
http://jlne.ws/eqQ85L
Fed's Fisher: U.S. debt situation at tipping point
By Marc Jones and Sakari Suoninen, Reuters
The U.S. debt situation is at a "tipping point," Dallas Federal Reserve Bank President Richard Fisher said on Tuesday, and urged the U.S. central bank to refrain from any further stimulus measures.
http://jlne.ws/fyolLE
Banks' use of ECB lending facilities
Reuters
Commercial bank borrowing from the European Central Bank has been high in countries most affected by the sovereign debt crisis for
several months.
http://jlne.ws/gwpFL1
U.S. home prices dip in January -- FHFA
U.S. Federal Housing Finance Agency home price index
Reuters
http://jlne.ws/eNUe4P
UK inflation revives talk of early interest rate rise
By David Milliken and Christina Fincher, Reuters
British inflation surged to a 28-month high of 4.4 percent last month, reviving speculation that the Bank of England will not wait much longer to raise interest rates.
http://jlne.ws/emBrB8
BNY Mellon ups dividend, to buy back shares
By Wallace Witkowski, MarketWatch
New York Mellon Corp.said Tuesday that its board raised the quarterly dividend to 13 cents a share from 9 cents a share. The dividend is payable May 10 to shareholders as of April 29. Also, Bank of New York Mellon said it plans to buy back $1.3 billion in common shares in 2011
http://jlne.ws/ebNbLf
Standard & Poor's Global Credit Portal
The outlook for Hong Kong banks is stable despite the increased risk due to the surge in lending in the past 15 months, according to an article Standard & Poor's Ratings Services published today.
http://jlne.ws/fIsoMe
US: $0.180B reverse repo-2 days 2009-12-11 NYFed temporary open market operations
To implement monetary policy, short-term repurchase and reverse repurchase agreements are used to temporarily affect the size of the Federal Reserve System's portfolio and influence day-to-day trading in the federal funds market.
http://jlne.ws/hHKI8r
Creditex Expands Electronic CDS Trading in North America
Press Release
NEW YORK, March 22, 2011 /PRNewswire/ -- IntercontinentalExchange (NYSE: ICE), a leading operator of global futures exchanges, over-the-counter (OTC) markets and clearing houses, announced that Creditex, a wholly-owned subsidiary of ICE and a global leader in interdealer trade execution for credit derivatives, has expanded its electronic trading capabilities and products for credit default swaps (CDS) for the North American market. With the addition of key indexes, the Creditex RealTime electronic platform began executing trades for the most liquid Investment Grade (IG) and High Yield (HY) series of CDX indexes on March 7, 2011. Since the introduction, over 80% of the CDX index trades arranged by Creditex have been executed on the Creditex RealTime platform.
http://jlne.ws/fXbx4s
Corporate 'Relationship Banking' Threatened by New Rule
By Daniel Indiviglio - The Atlantic
Since the financial crisis, the once-intense battle between full-service mega-banks like Citigroup and JPMorgan and traditional investment banks like Goldman Sachs and Morgan Stanley has become less relevant. When every bank is struggling to survive, two groups competing for dominance seems less relevant. But now that the industry has mostly healed, the war wages on. This week, we learn of a new twist that could dramatically help the investment banks: a new rule is being considered that would threaten corporate "relationship banking."
http://jlne.ws/haddgg
U.S. Treasury To Begin Orderly Wind Down Of Its $142 Billion Mortgage-Backed Securities Portfolio
Press Release
Treasury Will Authorize Sale Of Up To $10 Billion In Agency-Guaranteed Mortgage-Backed Securities Per Month - Part Of Continued Wind Down Of Holdings Acquired As Part Of The Financial Stabilization Actions In 2008 And 2009 To Help Combat The Financial Crisis
http://jlne.ws/hrUgzy
Barclays considers bid for US securities
By Justin Baer and Helen Thomas in New York - Financial Times
Barclays is among a group of investors weighing a rival bid for a portfolio of mortgage-backed securities that has already drawn a $15.7bn offer from AIG, people familiar with the matter said.
http://jlne.ws/dLdRIR
Shadow banks: A real problem for regulators
By Brooke Masters - Financial Times
Now that regulators have moved to impose tougher capital and liquidity requirements on banks, attention is turning to other sources of systemic risk, especially fast-growing entities muscling in on bank business that have escaped the same level of scrutiny.
http://jlne.ws/ij5AkR
An App For That? Five Ways Banks Could Learn From Apple's iPad
By DAVID WEIDNER - WSJ
The line for the iPad 2 at Apple's White Plains, N.Y., store stretched around the third level of the mall. The line blocked restaurants, Anthropologie and Brooks Brothers stores. Security guards had to keep the escalator exits clear. Meanwhile, the nation's banks are getting attention by covertly raising fees charged to customers who use their automated teller machines: a whopping $5 in some cases.
http://jlne.ws/elxVCi
Deutsche Bank Loses German Top Court Case Over 'Spread Ladder' Swap Sales
Bloomberg
Deutsche Bank AG (DBK) , Germany 's biggest bank, lost a ruling over an interest-rate swap in the first case over sales of the products to companies and local governments heard at the country's highest civil court.
http://jlne.ws/i6X5ro
Ex-UBS Banker Poteroba Gets 22 Months for Insider Trading
BusinessWeek
Igor Poteroba, a former UBS AG investment banker who pleaded guilty to insider trading, was sentenced to 22 months in prison.
http://jlne.ws/g9W5Su
Senin, 21 Maret 2011
March 21, 2011: Special Report - NYSE Liffe U.S. Launches Eurodollars
NYSE Liffe U.S. Brings the Competition - Video
NYSE Liffe & NYPC produced a video for a Futures Industry Association International Conference Information Xchange presentation on Thursday. Click here to view the video.
"We have had very tight markets, most in half ticks, through the first five years and we are very happy with that for our first morning of trading."
~Eric Ryan, director of media relations at NYSE Euronext
Five Minutes With Thomas F. Callahan
NYSE Liffe U.S., the U.S. futures exchange of NYSE Euronext (NYX), Monday launched Eurodollar futures products to coincide with the launch of New York Portfolio Clearing (NYPC), a new clearing joint venture with The Depository Trust & Clearing Corporation (DTCC). Thomas F. Callahan, CEO, NYSE Liffe U.S. answered some questions about the launch for John J. Lothian & Co. Senior Editor/Producer Christine Nielsen.
1) How would you describe the first day of trading in NYSE Liffe U.S.’ Eurodollar futures contracts? What were the volume and open interest levels? Are these levels what you’d expected? Why or why not? What do you expect to see in coming days with the contracts?
TC: Our first day of trading was a great success and exactly as we expected. The goal for today was to verify the integrity of our systems by having a high percentage of our customers execute a number of small trades on NYSE Liffe U.S. then clear them through NYPC.
Remember, in addition to launching a new series of contracts on our exchange, we launched a new, highly innovative clearing house in New York Portfolio Clearing as well. Our customers’ objective today was to verify that all systems were fully functional, from execution through to clearing. I am pleased to report that we had an extremely high participation rate from our customers, and all NYSE Liffe U.S. and NYPC systems worked as expected.
Additionally, we had tight, tradable markets in the first five years of the Eurodollar curve throughout the trading day, and volume was around 4,000. This level of displayed liquidity on our very first trading day should give the market confidence in our ability to attract liquidity. Additional customers will be entering our market daily, which puts us in a strong position to begin steadily increasing volumes. We are very appreciative of our customers’ day-one support and we look forward to working in partnership with them to build our market in the months and years to come.
2) I know you will be introducing 2-year, 5-year and 10-year U.S. Treasury futures along with U.S. bond and Ultra bond futures products on March 28. How will this impact your IR product offering and your business overall?
TC: We are staging the launch of Treasury futures one week after the launch of Eurodollars in order to reduce operational risk. Our view has always been that volumes should begin to increase significantly once the full suite of interest rate products are live on our exchange. We believe that the combined trading and clearing offering that we debuted today has a unique value proposition for customers and we hope they’ll give us an opportunity to prove its effectiveness over the next few weeks.
3) And you are planning to list Eurodollar and Treasury options soon? Why and when?
TC: Our objective is to launch options on Eurodollar and U.S. Treasury futures in Q3 2011. The NYPC Risk team is currently building the capability to process options within the single-pot-margin methodology, so our options will benefit from the same capital efficiency as our futures. Liffe CONNECT has world class option functionality, developed to support the European STIR markets that trade on NYSE Liffe in Europe such as Euribor and Short Sterling. We will leverage this functionality heavily for our U.S. options launch and we believe that our ability to utilize the best of NYSE Euronext’s global markets will provide exceptional benefits to our customers.
4) What type of feedback have you gotten from users of the IR market so far?
TC: Customers are excited that our systems worked properly and that our first day of trading and clearing was a success. Now that our platform has been verified in the live environment, our customers are excited to begin prudently increasing their level of activity as their confidence in the integrity of our platform builds.
Again, we have worked closely with our partners at DTCC, the team at NYPC, and of course the firms themselves to coordinate today’s cross-platform launch. Customers have heard about our plans to create new capital and operational efficiencies in the market, but now they can see it for themselves in their own portfolios using their own systems. We are very excited to introduce this value chain to them and see them put it to the test.
5) Is there anything about the launch of Eurodollar futures that has surprised you? If so, what?
TC: Since we began this project, I have been continually surprised at the high level of commitment from our partners, customers and market makers. A large number of them were with us at 7:16 pm EST last night for the open, and were quoting aggressively and trading throughout the evening. We are extremely grateful for their strong level of support from our customers in launching a new market.
6) You noted in a previous interview that as of this month you will have spent two years preparing to launch your offering. In the process, you built two new companies, two separate partnerships and a brand new clearinghouse. What’s the next step?
TC: We need to build credible market share in our core products - Eurodollars and U.S. Treasuries. We need to successfully launch options on these products. We need to expand NYPC’s margin efficiencies to include customer positions. We need to continue to innovate in terms of new products, both at the exchange and the clearing level. We realize the challenges and we are addressing all of them thoughtfully and systematically.
Also, away from interest rates, we have a high profile migration of equity index futures on MSCI Emerging Markets and MSCI EAFE coming up in June. It is a huge coup for us to take these benchmark indices away from the CME and bring them into the NYSE Liffe U.S. family. Our equity team is working hard with customers to ensure a smooth migration of this open interest from CME to NYSE Liffe U.S.
7) What do you see as your exchange’s greatest strengths in these products at this point? What do you see as your greatest weaknesses?
TC: Our greatest strength is in our innovation and, in our partnerships. We have innovated at a level the market has never seen before from a start up exchange. For example, we have innovated in terms of capital efficiency at NYPC, and in terms of improved delivery protocols for U.S. Treasury futures. We have built an amazing network of partnerships at every level of our business, from our equity partners, to DTCC, to our market makers. In terms of weaknesses, we are a small, hungry, start up exchange. We still have a lot to prove, but we expect in the coming weeks and months that we may surprise a few of our skeptics.
We are committed to our innovative new model and to building lasting value for our customers. We will continue to find ways to build a better exchange and to redefine the trading and clearing paradigm in terms of efficiency, risk management and customer service.
8) What is the status of the exchange of futures for futures rule? Do you feel it is necessary for your effort to succeed? Why or why not?
TC: Although we allow EFFs, I am dubious that an EFF rule, even if the regulators mandate its adoption by all exchanges, would advance competition in any meaningful way. It might make it slightly easier for certain customers to move open interest into NYPC, which would be helpful. Beyond that, I would be really surprised if customers began actively moving OI between multiple clearinghouses by paying an EFF market maker. It is just too operationally tedious, too expensive, and too risky.
Specifications: NYSE Liffe U.S. EURODOLLAR FUTURES
Contract specs for NYSE Liffe U.S. Two-Year U.S. Treasury Note Futures, Five-Year U.S. Treasury Note Futures, 10-Year U.S. Treasury Note Futures, U.S. Treasury Bond Futures and Ultra U.S. Treasury Bond Futures
http://jlne.ws/frfbBA
NYSE Liffe U.S. to Launch Interest Rate Futures on March 21 and March 28
Press Release 3/2/2011 NYSE Euronext
http://jlne.ws/i0dVwm
NYPC Announces Initial Clearing Members for March 21st Launch
Press Release 3/16/2011
NEW YORK--(BUSINESS WIRE)-- New York Portfolio Clearing, LLC (NYPC) announced today that its board has approved the first of its clearing members:
* Advantage Futures LLC
* Barclays Capital Inc.
* GETCO, LLC
* Goldman Sachs & Co.
* MF Global Inc.
* Morgan Stanley & Co., Incorporated
* Newedge USA, LLC
* Ronin Capital, LLC
* Rosenthal Collins Group, LLC
* UBS Securities, LLC
http://jlne.ws/fPMAda
NYSE Liffe U.S.- Exchange of Futures for Futures
http://www.nyseliffeus.com/sites/liffeus.nyx.com/files/08-2011.pdf
NYSE Liffe U.S. - Appointment of Designated Market Makers in Interest Rate Futures
http://www.nyseliffeus.com/sites/liffeus.nyx.com/files/07-2011_0.pdf
Change in Margin Rates - March 18, 2011
http://jlne.ws/dWeX2b
NYSE Euronext Puts First U.S. Rate-Futures Trades On The Books
A new front in the battle for the biggest U.S. futures market was joined late Sunday as NYSE Euronext (NYX) recorded the first transactions on a new platform designed to compete with sector heavyweight CME Group Inc. (CME).
ttp://jlne.ws/gyZnww
NYSE Liffe & NYPC produced a video for a Futures Industry Association International Conference Information Xchange presentation on Thursday. Click here to view the video.
"We have had very tight markets, most in half ticks, through the first five years and we are very happy with that for our first morning of trading."
~Eric Ryan, director of media relations at NYSE Euronext
Five Minutes With Thomas F. Callahan
NYSE Liffe U.S., the U.S. futures exchange of NYSE Euronext (NYX), Monday launched Eurodollar futures products to coincide with the launch of New York Portfolio Clearing (NYPC), a new clearing joint venture with The Depository Trust & Clearing Corporation (DTCC). Thomas F. Callahan, CEO, NYSE Liffe U.S. answered some questions about the launch for John J. Lothian & Co. Senior Editor/Producer Christine Nielsen.
1) How would you describe the first day of trading in NYSE Liffe U.S.’ Eurodollar futures contracts? What were the volume and open interest levels? Are these levels what you’d expected? Why or why not? What do you expect to see in coming days with the contracts?
TC: Our first day of trading was a great success and exactly as we expected. The goal for today was to verify the integrity of our systems by having a high percentage of our customers execute a number of small trades on NYSE Liffe U.S. then clear them through NYPC.
Remember, in addition to launching a new series of contracts on our exchange, we launched a new, highly innovative clearing house in New York Portfolio Clearing as well. Our customers’ objective today was to verify that all systems were fully functional, from execution through to clearing. I am pleased to report that we had an extremely high participation rate from our customers, and all NYSE Liffe U.S. and NYPC systems worked as expected.
Additionally, we had tight, tradable markets in the first five years of the Eurodollar curve throughout the trading day, and volume was around 4,000. This level of displayed liquidity on our very first trading day should give the market confidence in our ability to attract liquidity. Additional customers will be entering our market daily, which puts us in a strong position to begin steadily increasing volumes. We are very appreciative of our customers’ day-one support and we look forward to working in partnership with them to build our market in the months and years to come.
2) I know you will be introducing 2-year, 5-year and 10-year U.S. Treasury futures along with U.S. bond and Ultra bond futures products on March 28. How will this impact your IR product offering and your business overall?
TC: We are staging the launch of Treasury futures one week after the launch of Eurodollars in order to reduce operational risk. Our view has always been that volumes should begin to increase significantly once the full suite of interest rate products are live on our exchange. We believe that the combined trading and clearing offering that we debuted today has a unique value proposition for customers and we hope they’ll give us an opportunity to prove its effectiveness over the next few weeks.
3) And you are planning to list Eurodollar and Treasury options soon? Why and when?
TC: Our objective is to launch options on Eurodollar and U.S. Treasury futures in Q3 2011. The NYPC Risk team is currently building the capability to process options within the single-pot-margin methodology, so our options will benefit from the same capital efficiency as our futures. Liffe CONNECT has world class option functionality, developed to support the European STIR markets that trade on NYSE Liffe in Europe such as Euribor and Short Sterling. We will leverage this functionality heavily for our U.S. options launch and we believe that our ability to utilize the best of NYSE Euronext’s global markets will provide exceptional benefits to our customers.
4) What type of feedback have you gotten from users of the IR market so far?
TC: Customers are excited that our systems worked properly and that our first day of trading and clearing was a success. Now that our platform has been verified in the live environment, our customers are excited to begin prudently increasing their level of activity as their confidence in the integrity of our platform builds.
Again, we have worked closely with our partners at DTCC, the team at NYPC, and of course the firms themselves to coordinate today’s cross-platform launch. Customers have heard about our plans to create new capital and operational efficiencies in the market, but now they can see it for themselves in their own portfolios using their own systems. We are very excited to introduce this value chain to them and see them put it to the test.
5) Is there anything about the launch of Eurodollar futures that has surprised you? If so, what?
TC: Since we began this project, I have been continually surprised at the high level of commitment from our partners, customers and market makers. A large number of them were with us at 7:16 pm EST last night for the open, and were quoting aggressively and trading throughout the evening. We are extremely grateful for their strong level of support from our customers in launching a new market.
6) You noted in a previous interview that as of this month you will have spent two years preparing to launch your offering. In the process, you built two new companies, two separate partnerships and a brand new clearinghouse. What’s the next step?
TC: We need to build credible market share in our core products - Eurodollars and U.S. Treasuries. We need to successfully launch options on these products. We need to expand NYPC’s margin efficiencies to include customer positions. We need to continue to innovate in terms of new products, both at the exchange and the clearing level. We realize the challenges and we are addressing all of them thoughtfully and systematically.
Also, away from interest rates, we have a high profile migration of equity index futures on MSCI Emerging Markets and MSCI EAFE coming up in June. It is a huge coup for us to take these benchmark indices away from the CME and bring them into the NYSE Liffe U.S. family. Our equity team is working hard with customers to ensure a smooth migration of this open interest from CME to NYSE Liffe U.S.
7) What do you see as your exchange’s greatest strengths in these products at this point? What do you see as your greatest weaknesses?
TC: Our greatest strength is in our innovation and, in our partnerships. We have innovated at a level the market has never seen before from a start up exchange. For example, we have innovated in terms of capital efficiency at NYPC, and in terms of improved delivery protocols for U.S. Treasury futures. We have built an amazing network of partnerships at every level of our business, from our equity partners, to DTCC, to our market makers. In terms of weaknesses, we are a small, hungry, start up exchange. We still have a lot to prove, but we expect in the coming weeks and months that we may surprise a few of our skeptics.
We are committed to our innovative new model and to building lasting value for our customers. We will continue to find ways to build a better exchange and to redefine the trading and clearing paradigm in terms of efficiency, risk management and customer service.
8) What is the status of the exchange of futures for futures rule? Do you feel it is necessary for your effort to succeed? Why or why not?
TC: Although we allow EFFs, I am dubious that an EFF rule, even if the regulators mandate its adoption by all exchanges, would advance competition in any meaningful way. It might make it slightly easier for certain customers to move open interest into NYPC, which would be helpful. Beyond that, I would be really surprised if customers began actively moving OI between multiple clearinghouses by paying an EFF market maker. It is just too operationally tedious, too expensive, and too risky.
Specifications: NYSE Liffe U.S. EURODOLLAR FUTURES
- Ticker Symbol ED (Exchange Code: V)
- Trading Hours 6:16pm – 4:00pm (day + 1) Central Time, Sunday – Friday, Daily Settlement to occur at 2:00pm Central Time.
- Trade Unit Eurodollar Time Deposit having a principal value of USD $1,000,000 with a three month maturity.
- Quotation Quoted in IMM Three-Month LIBOR index points or 100 minus the rate on an annual basis over a 360 day year (e.g., a rate of 2.5% shall be quoted as 97.50). 1 basis point = .01 = $25.
- Tick Size One-quarter of one basis point (0.0025 = $6.25 per contract) in the nearest expiring contract month; One-half of one basis point (0.005 = $12.50 per contract) in all other contract months.
- The “new” front-month contract begins trading in 0.0025 increments on the same Trade Date as the Last Trading Day of the expiring “old” front-month contract.
- Contract Expiration Months Mar, Jun, Sep, Dec, extending out 5 years and 1 additional quarterly expiration (total of 21 contracts) plus the two nearest serial expirations (months that are not in the Mar, Jun, Sep, Dec quarterly cycle).
- Last Trading Day The second London bank business day prior to the third Wednesday of the contract expiry month. Trading in the expiring contract closes at 11:00am London Time on the last trading day.
- *Settlement Method Expiring contracts are cash settled to 100 minus the British Bankers’ Association survey of 3-month U.S. Dollar LIBOR on the last trading day. Final settlement price will be rounded to four decimal places, equal to 1/10,000 of a percent, or $0.25 per contract.
- Position Limits and Reportable Thresholds None
- Block Trade Thresholds 4,000 lots including all legs of an available strategy market.I am dubious that an EFF rule, even if the regulators mandate its adoption, would advance competition in any meaningful way.
Contract specs for NYSE Liffe U.S. Two-Year U.S. Treasury Note Futures, Five-Year U.S. Treasury Note Futures, 10-Year U.S. Treasury Note Futures, U.S. Treasury Bond Futures and Ultra U.S. Treasury Bond Futures
http://jlne.ws/frfbBA
NYSE Liffe U.S. to Launch Interest Rate Futures on March 21 and March 28
Press Release 3/2/2011 NYSE Euronext
- Eurodollar Futures Debut on NYSE Liffe U.S. March 21, U.S. Treasury Futures on March 28-
- Bringing Innovation, Competition and Unique Value to Global Futures Market Participants-
- New York, March 2, 2011 – NYSE Liffe U.S., the U.S. futures exchange of NYSE Euronext (NYX), today announced launch dates for U.S. Treasury and Eurodollar futures products to coincide with the launch of New York Portfolio Clearing (NYPC), the innovative new clearing joint venture with The Depository Trust
http://jlne.ws/i0dVwm
NYPC Announces Initial Clearing Members for March 21st Launch
Press Release 3/16/2011
NEW YORK--(BUSINESS WIRE)-- New York Portfolio Clearing, LLC (NYPC) announced today that its board has approved the first of its clearing members:
* Advantage Futures LLC
* Barclays Capital Inc.
* GETCO, LLC
* Goldman Sachs & Co.
* MF Global Inc.
* Morgan Stanley & Co., Incorporated
* Newedge USA, LLC
* Ronin Capital, LLC
* Rosenthal Collins Group, LLC
* UBS Securities, LLC
http://jlne.ws/fPMAda
NYSE Liffe U.S.- Exchange of Futures for Futures
http://www.nyseliffeus.com/sites/liffeus.nyx.com/files/08-2011.pdf
NYSE Liffe U.S. - Appointment of Designated Market Makers in Interest Rate Futures
http://www.nyseliffeus.com/sites/liffeus.nyx.com/files/07-2011_0.pdf
Change in Margin Rates - March 18, 2011
http://jlne.ws/dWeX2b
NYSE Euronext Puts First U.S. Rate-Futures Trades On The Books
A new front in the battle for the biggest U.S. futures market was joined late Sunday as NYSE Euronext (NYX) recorded the first transactions on a new platform designed to compete with sector heavyweight CME Group Inc. (CME).
ttp://jlne.ws/gyZnww
Five Minutes With Thomas F. Callahan of NYSE Liffe US
NYSE Liffe U.S., the U.S. futures exchange of NYSE Euronext (NYX), Monday launched Eurodollar futures products to coincide with the launch of New York Portfolio Clearing (NYPC), a new clearing joint venture with The Depository Trust & Clearing Corporation (DTCC). Thomas F. Callahan, CEO, NYSE Liffe U.S. answered some questions about the launch for John J. Lothian & Co. Senior Editor/Producer Christine Nielsen.
1) How would you describe the first day of trading in NYSE Liffe U.S.’ Eurodollar futures contracts? What were the volume and open interest levels? Are these levels what you’d expected? Why or why not? What do you expect to see in coming days with the contracts?
TC: Our first day of trading was a great success and exactly as we expected. The goal for today was to verify the integrity of our systems by having a high percentage of our customers execute a number of small trades on NYSE Liffe U.S. then clear them through NYPC.
Remember, in addition to launching a new series of contracts on our exchange, we launched a new, highly innovative clearing house in New York Portfolio Clearing as well. Our customers’ objective today was to verify that all systems were fully functional, from execution through to clearing. I am pleased to report that we had an extremely high participation rate from our customers, and all NYSE Liffe U.S. and NYPC systems worked as expected.
Additionally, we had tight, tradable markets in the first five years of the Eurodollar curve throughout the trading day, and volume was around 4,000. This level of displayed liquidity on our very first trading day should give the market confidence in our ability to attract liquidity. Additional customers will be entering our market daily, which puts us in a strong position to begin steadily increasing volumes. We are very appreciative of our customers’ day-one support and we look forward to working in partnership with them to build our market in the months and years to come.
2) I know you will be introducing 2-year, 5-year and 10-year U.S. Treasury futures along with U.S. bond and Ultra bond futures products on March 28. How will this impact your IR product offering and your business overall?
TC: We are staging the launch of Treasury futures one week after the launch of Eurodollars in order to reduce operational risk. Our view has always been that volumes should begin to increase significantly once the full suite of interest rate products are live on our exchange. We believe that the combined trading and clearing offering that we debuted today has a unique value proposition for customers and we hope they’ll give us an opportunity to prove its effectiveness over the next few weeks.
3) And you are planning to list Eurodollar and Treasury options soon? Why and when?
TC: Our objective is to launch options on Eurodollar and U.S. Treasury futures in Q3 2011. The NYPC Risk team is currently building the capability to process options within the single-pot-margin methodology, so our options will benefit from the same capital efficiency as our futures. Liffe CONNECT has world class option functionality, developed to support the European STIR markets that trade on NYSE Liffe in Europe such as Euribor and Short Sterling. We will leverage this functionality heavily for our U.S. options launch and we believe that our ability to utilize the best of NYSE Euronext’s global markets will provide exceptional benefits to our customers.
4) What type of feedback have you gotten from users of the IR market so far?
TC: Customers are excited that our systems worked properly and that our first day of trading and clearing was a success. Now that our platform has been verified in the live environment, our customers are excited to begin prudently increasing their level of activity as their confidence in the integrity of our platform builds.
Again, we have worked closely with our partners at DTCC, the team at NYPC, and of course the firms themselves to coordinate today’s cross-platform launch. Customers have heard about our plans to create new capital and operational efficiencies in the market, but now they can see it for themselves in their own portfolios using their own systems. We are very excited to introduce this value chain to them and see them put it to the test.
5) Is there anything about the launch of Eurodollar futures that has surprised you? If so, what?
TC: Since we began this project, I have been continually surprised at the high level of commitment from our partners, customers and market makers. A large number of them were with us at 7:16 pm EST last night for the open, and were quoting aggressively and trading throughout the evening. We are extremely grateful for their strong level of support from our customers in launching a new market.
6) You noted in a previous interview that as of this month you will have spent two years preparing to launch your offering. In the process, you built two new companies, two separate partnerships and a brand new clearinghouse. What’s the next step?
TC: We need to build credible market share in our core products - Eurodollars and U.S. Treasuries. We need to successfully launch options on these products. We need to expand NYPC’s margin efficiencies to include customer positions. We need to continue to innovate in terms of new products, both at the exchange and the clearing level. We realize the challenges and we are addressing all of them thoughtfully and systematically.
Also, away from interest rates, we have a high profile migration of equity index futures on MSCI Emerging Markets and MSCI EAFE coming up in June. It is a huge coup for us to take these benchmark indices away from the CME and bring them into the NYSE Liffe U.S. family. Our equity team is working hard with customers to ensure a smooth migration of this open interest from CME to NYSE Liffe U.S.
7) What do you see as your exchange’s greatest strengths in these products at this point? What do you see as your greatest weaknesses?
TC: Our greatest strength is in our innovation and, in our partnerships. We have innovated at a level the market has never seen before from a start up exchange. For example, we have innovated in terms of capital efficiency at NYPC, and in terms of improved delivery protocols for U.S. Treasury futures. We have built an amazing network of partnerships at every level of our business, from our equity partners, to DTCC, to our market makers. In terms of weaknesses, we are a small, hungry, start up exchange. We still have a lot to prove, but we expect in the coming weeks and months that we may surprise a few of our skeptics.
We are committed to our innovative new model and to building lasting value for our customers. We will continue to find ways to build a better exchange and to redefine the trading and clearing paradigm in terms of efficiency, risk management and customer service.
8) What is the status of the exchange of futures for futures rule? Do you feel it is necessary for your effort to succeed? Why or why not?
TC: Although we allow EFFs, I am dubious that an EFF rule, even if the regulators mandate its adoption by all exchanges, would advance competition in any meaningful way. It might make it slightly easier for certain customers to move open interest into NYPC, which would be helpful. Beyond that, I would be really surprised if customers began actively moving OI between multiple clearinghouses by paying an EFF market maker. It is just too operationally tedious, too expensive, and too risky.
1) How would you describe the first day of trading in NYSE Liffe U.S.’ Eurodollar futures contracts? What were the volume and open interest levels? Are these levels what you’d expected? Why or why not? What do you expect to see in coming days with the contracts?
TC: Our first day of trading was a great success and exactly as we expected. The goal for today was to verify the integrity of our systems by having a high percentage of our customers execute a number of small trades on NYSE Liffe U.S. then clear them through NYPC.
Remember, in addition to launching a new series of contracts on our exchange, we launched a new, highly innovative clearing house in New York Portfolio Clearing as well. Our customers’ objective today was to verify that all systems were fully functional, from execution through to clearing. I am pleased to report that we had an extremely high participation rate from our customers, and all NYSE Liffe U.S. and NYPC systems worked as expected.
Additionally, we had tight, tradable markets in the first five years of the Eurodollar curve throughout the trading day, and volume was around 4,000. This level of displayed liquidity on our very first trading day should give the market confidence in our ability to attract liquidity. Additional customers will be entering our market daily, which puts us in a strong position to begin steadily increasing volumes. We are very appreciative of our customers’ day-one support and we look forward to working in partnership with them to build our market in the months and years to come.
2) I know you will be introducing 2-year, 5-year and 10-year U.S. Treasury futures along with U.S. bond and Ultra bond futures products on March 28. How will this impact your IR product offering and your business overall?
TC: We are staging the launch of Treasury futures one week after the launch of Eurodollars in order to reduce operational risk. Our view has always been that volumes should begin to increase significantly once the full suite of interest rate products are live on our exchange. We believe that the combined trading and clearing offering that we debuted today has a unique value proposition for customers and we hope they’ll give us an opportunity to prove its effectiveness over the next few weeks.
3) And you are planning to list Eurodollar and Treasury options soon? Why and when?
TC: Our objective is to launch options on Eurodollar and U.S. Treasury futures in Q3 2011. The NYPC Risk team is currently building the capability to process options within the single-pot-margin methodology, so our options will benefit from the same capital efficiency as our futures. Liffe CONNECT has world class option functionality, developed to support the European STIR markets that trade on NYSE Liffe in Europe such as Euribor and Short Sterling. We will leverage this functionality heavily for our U.S. options launch and we believe that our ability to utilize the best of NYSE Euronext’s global markets will provide exceptional benefits to our customers.
4) What type of feedback have you gotten from users of the IR market so far?
TC: Customers are excited that our systems worked properly and that our first day of trading and clearing was a success. Now that our platform has been verified in the live environment, our customers are excited to begin prudently increasing their level of activity as their confidence in the integrity of our platform builds.
Again, we have worked closely with our partners at DTCC, the team at NYPC, and of course the firms themselves to coordinate today’s cross-platform launch. Customers have heard about our plans to create new capital and operational efficiencies in the market, but now they can see it for themselves in their own portfolios using their own systems. We are very excited to introduce this value chain to them and see them put it to the test.
5) Is there anything about the launch of Eurodollar futures that has surprised you? If so, what?
TC: Since we began this project, I have been continually surprised at the high level of commitment from our partners, customers and market makers. A large number of them were with us at 7:16 pm EST last night for the open, and were quoting aggressively and trading throughout the evening. We are extremely grateful for their strong level of support from our customers in launching a new market.
6) You noted in a previous interview that as of this month you will have spent two years preparing to launch your offering. In the process, you built two new companies, two separate partnerships and a brand new clearinghouse. What’s the next step?
TC: We need to build credible market share in our core products - Eurodollars and U.S. Treasuries. We need to successfully launch options on these products. We need to expand NYPC’s margin efficiencies to include customer positions. We need to continue to innovate in terms of new products, both at the exchange and the clearing level. We realize the challenges and we are addressing all of them thoughtfully and systematically.
Also, away from interest rates, we have a high profile migration of equity index futures on MSCI Emerging Markets and MSCI EAFE coming up in June. It is a huge coup for us to take these benchmark indices away from the CME and bring them into the NYSE Liffe U.S. family. Our equity team is working hard with customers to ensure a smooth migration of this open interest from CME to NYSE Liffe U.S.
7) What do you see as your exchange’s greatest strengths in these products at this point? What do you see as your greatest weaknesses?
TC: Our greatest strength is in our innovation and, in our partnerships. We have innovated at a level the market has never seen before from a start up exchange. For example, we have innovated in terms of capital efficiency at NYPC, and in terms of improved delivery protocols for U.S. Treasury futures. We have built an amazing network of partnerships at every level of our business, from our equity partners, to DTCC, to our market makers. In terms of weaknesses, we are a small, hungry, start up exchange. We still have a lot to prove, but we expect in the coming weeks and months that we may surprise a few of our skeptics.
We are committed to our innovative new model and to building lasting value for our customers. We will continue to find ways to build a better exchange and to redefine the trading and clearing paradigm in terms of efficiency, risk management and customer service.
8) What is the status of the exchange of futures for futures rule? Do you feel it is necessary for your effort to succeed? Why or why not?
TC: Although we allow EFFs, I am dubious that an EFF rule, even if the regulators mandate its adoption by all exchanges, would advance competition in any meaningful way. It might make it slightly easier for certain customers to move open interest into NYPC, which would be helpful. Beyond that, I would be really surprised if customers began actively moving OI between multiple clearinghouses by paying an EFF market maker. It is just too operationally tedious, too expensive, and too risky.
Top Interest Rate Headlines 03-21-11: U.S. Treasury To Sell Toxic Assets
U.S. Treasury to sell toxic assets
By MARTIN CRUTSINGER, The Globe And Mail
The Treasury Department announced Monday that it will begin selling its remaining $142-billion in holdings of mortgage-backed securities purchased during the financial crisis.
http://jlne.ws/hPPe5K
Midwest Economy: Interpreting the Midwest Economy Index
By Scott Brave, Senior Business Economist Federal Reserve Bank of Chicago
On March 31, 2011, the Chicago Fed will begin releasing on a monthly basis an index designed to measure growth in nonfarm business activity in the Seventh Federal Reserve District states of Illinois, Indiana, Iowa, Michigan, and Wisconsin. This monthly index, called the Midwest Economy Index (MEI), will serve as a regional counterpart to the Chicago Fed’s National Activity Index (CFNAI), available here, and allow for a comparison of national and regional growth trends.
http://jlne.ws/gMMUX0
E.U. Finance Ministers Set Terms for New Bailout Fund
By STEPHEN CASTLE, the New York Times
European finance ministers agreed Monday on how to increase the lending power of a future bailout fund for debt-strapped nations that use the euro.
http://jlne.ws/hJPRNo
Fed to release data on crisis loans to Wall Street banks
By Jennifer Liberto, CNNMoney
The Federal Reserve Board will release data on emergency loans made to Wall Street banks and others during the height of the financial crisis, after the Supreme Court refused Monday to side with banks who want the details kept secret.
http://jlne.ws/hd1kkp
NYSE Euronext Puts First U.S. Rate-Futures Trades On The Books
By Jacob Bunge, Of DOW JONES NEWSWIRES
A new front in the battle for the biggest U.S. futures market was joined late Sunday as NYSE Euronext (NYX) recorded the first transactions on a new platform designed to compete with sector heavyweight CME Group Inc. (CME).
http://jlne.ws/gyZnww
Lehman sues Citibank to recover over US$1.3bil
NEW YORK: The trustee overseeing the liquidation of Lehman Brothers Holdings' broker-dealer has sued Citibank to recover more than US$1.3bil in cash and other assets.
http://jlne.ws/ePNKhI
Trichet Says Rate Increase 'Possible'
BY NINA KOEPPEN AND BRIAN BLACKSTONE
European Central Bank President Jean-Claude Trichet on Monday signaled the ECB is likely to increase interest rates as soon as next month, saying he has "nothing to add" to the ECB's policy statement on March 3, when the central bank warned that "strong vigilance" was needed on inflation.
http://jlne.ws/fdmJYr
Why Is the Fed Letting Big Banks Boost Dividends?
By ABIGAIL FIELD
The news hit Friday that the Federal Reserve is allowing big banks to pay sharply higher dividends. I don't understand how the Fed justified that decision. And not just because the results of the so-called "stress tests" are secret.
http://jlne.ws/g2Ios1
New York Fed Launches "Liberty Street Economics" Research Blog
Federal Reserve Bank of New York
Press Release
NEW YORK – The Federal Reserve Bank of New York today launched Liberty Street Economics, a new research blog that offers commentary on current economic topics, including macroeconomic developments, financial markets and trends in the Second Federal Reserve District. Liberty Street Economics is a platform for members of the New York Fed’s Research and Statistics Group to share their individual analysis and insight on current issues and to engage in a direct dialogue with a broad online audience.
http://jlne.ws/hlbm8u
US house prices fall to lowest level for nine years
BBC News
A report on US house sales has said that prices fell by 5.2% in February to their lowest in almost nine years.
http://jlne.ws/fkBdCy
ECB’s Trichet sticks with inflation warning
The Globe And Mail
European Central Bank chief Jean-Claude Trichet is sticking with his stern inflation warnings that indicate an interest rate increase could come as early as next month — despite the market turmoil triggered by Japan's disasters.
http://jlne.ws/gtw2p7
Analysis: CFTC prescribing the wrong medicine
By Ann Saphir and Jonathan Spicer - Reuters
BOCA RATON, Florida (Reuters) - Top futures regulator Gary Gensler is acting a bit too much like his counterpart Mary Schapiro at the Securities and Exchange Commission -- and it's making people nervous.
http://jlne.ws/hA6qbw
NYSE Euronext Puts First US Rate-Futures Trades On The Books
By Jacob Bunge, Of DOW JONES NEWSWIRES
A new front in the battle for the biggest U.S. futures market was joined late Sunday as NYSE Euronext (NYX) recorded the first transactions on a new platform designed to compete with sector heavyweight CME Group Inc. (CME).
http://jlne.ws/dS1Xxd
Too-Big-to-Fail Banks in U.S. Grew After Crisis, Study Shows
By Cady North - Bloomberg
The largest U.S. banks have grown larger since the financial crisis, and the number of “too-big-to- fail” banks will increase by 40 percent over the next 15 years, according to data compiled by Bloomberg. The Dodd-Frank law, which requires more oversight of too- big-to-fail firms, would prohibit the largest banks from merging with one another, an unprecedented power granted to regulators.
http://jlne.ws/i7ucky
US banks face fresh scrutiny on lending
By Helen Thomas in New York - Financial Times
US banks could be forced to disclose when they give clients below-market rates on loans as a part of their efforts to secure further business, under rules being considered by accounting regulators.
http://jlne.ws/h2Pc59
Fed Must Release Loan Data as High Court Rejects Appeal
By Greg Stohr and Bob Ivry - Bloomberg
The Federal Reserve must disclose details of emergency loans it made to banks in 2008, after the U.S. Supreme Court rejected an industry appeal that aimed to shield the records from public view.
http://jlne.ws/gQ6cZY
Goldman Sachs to Redeem Preferred Stock Issued to Berkshire Hathaway
Press Release
New York, March 18, 2011 -- The Goldman Sachs Group, Inc. (NYSE: GS) today announced that the Federal Reserve has concluded that it has no objection to Goldman Sachs’ proposed 2011 capital actions, which include the redemption in full of the 50,000 shares of the Company’s 10% Cumulative Perpetual Preferred Stock, Series G (Preferred Shares) held by Berkshire Hathaway Inc. and certain of its subsidiaries (collectively, Berkshire Hathaway), the repurchase of outstanding common stock and a potential increase in our quarterly common stock dividend.
http://jlne.ws/fIOgtK
No Goldman smoking gun to hit Draghi's ECB hopes
GMA News
ROME/LONDON - Critics of Mario Draghi may have few arguments to block his chances of becoming Europe's top central banker other than just mentioning the fact that he worked at Goldman Sachs for a number of years.
http://jlne.ws/e6dBfY
RBS profits propped up by US investment banking arm
eFinancial News
Royal Bank of Scotland, the UK bank that is majority-owned by taxpayers, relied on a mortgage-trading unit in the US for nearly half of the profits made by its global banking and markets division last year, according to figures released by the bank.
http://jlne.ws/fQcymk
HSBC Was Told About Madoff 'Fraud Risks' in Two KPMG Reports
BusinessWeek
HSBC Holdings Plc, Europe's biggest lender, was warned twice by auditors that entrusting as much as $8 billion in client funds to Bernard Madoff opened it up to "fraud and operational risks."
http://jlne.ws/gJG0iH
Paulson & Co. fund hit by quake-fueled market drop
Market Watch
A fund run by Paulson & Co., the third-largest U.S. hedge fund firm, was hit by the big market selloff this week in the wake of Japan's earthquake. Paulson has run funds on Societe Generale's Lyxor managed-account platform for many years. One of those vehicles, known as Paulson Advantage Fund Limited, was down 6.14% this month, as of March 15, according to a Lyxor ...
http://jlne.ws/hnyxhK
By MARTIN CRUTSINGER, The Globe And Mail
The Treasury Department announced Monday that it will begin selling its remaining $142-billion in holdings of mortgage-backed securities purchased during the financial crisis.
http://jlne.ws/hPPe5K
Midwest Economy: Interpreting the Midwest Economy Index
By Scott Brave, Senior Business Economist Federal Reserve Bank of Chicago
On March 31, 2011, the Chicago Fed will begin releasing on a monthly basis an index designed to measure growth in nonfarm business activity in the Seventh Federal Reserve District states of Illinois, Indiana, Iowa, Michigan, and Wisconsin. This monthly index, called the Midwest Economy Index (MEI), will serve as a regional counterpart to the Chicago Fed’s National Activity Index (CFNAI), available here, and allow for a comparison of national and regional growth trends.
http://jlne.ws/gMMUX0
E.U. Finance Ministers Set Terms for New Bailout Fund
By STEPHEN CASTLE, the New York Times
European finance ministers agreed Monday on how to increase the lending power of a future bailout fund for debt-strapped nations that use the euro.
http://jlne.ws/hJPRNo
Fed to release data on crisis loans to Wall Street banks
By Jennifer Liberto, CNNMoney
The Federal Reserve Board will release data on emergency loans made to Wall Street banks and others during the height of the financial crisis, after the Supreme Court refused Monday to side with banks who want the details kept secret.
http://jlne.ws/hd1kkp
NYSE Euronext Puts First U.S. Rate-Futures Trades On The Books
By Jacob Bunge, Of DOW JONES NEWSWIRES
A new front in the battle for the biggest U.S. futures market was joined late Sunday as NYSE Euronext (NYX) recorded the first transactions on a new platform designed to compete with sector heavyweight CME Group Inc. (CME).
http://jlne.ws/gyZnww
Lehman sues Citibank to recover over US$1.3bil
NEW YORK: The trustee overseeing the liquidation of Lehman Brothers Holdings' broker-dealer has sued Citibank to recover more than US$1.3bil in cash and other assets.
http://jlne.ws/ePNKhI
Trichet Says Rate Increase 'Possible'
BY NINA KOEPPEN AND BRIAN BLACKSTONE
European Central Bank President Jean-Claude Trichet on Monday signaled the ECB is likely to increase interest rates as soon as next month, saying he has "nothing to add" to the ECB's policy statement on March 3, when the central bank warned that "strong vigilance" was needed on inflation.
http://jlne.ws/fdmJYr
Why Is the Fed Letting Big Banks Boost Dividends?
By ABIGAIL FIELD
The news hit Friday that the Federal Reserve is allowing big banks to pay sharply higher dividends. I don't understand how the Fed justified that decision. And not just because the results of the so-called "stress tests" are secret.
http://jlne.ws/g2Ios1
New York Fed Launches "Liberty Street Economics" Research Blog
Federal Reserve Bank of New York
Press Release
NEW YORK – The Federal Reserve Bank of New York today launched Liberty Street Economics, a new research blog that offers commentary on current economic topics, including macroeconomic developments, financial markets and trends in the Second Federal Reserve District. Liberty Street Economics is a platform for members of the New York Fed’s Research and Statistics Group to share their individual analysis and insight on current issues and to engage in a direct dialogue with a broad online audience.
http://jlne.ws/hlbm8u
US house prices fall to lowest level for nine years
BBC News
A report on US house sales has said that prices fell by 5.2% in February to their lowest in almost nine years.
http://jlne.ws/fkBdCy
ECB’s Trichet sticks with inflation warning
The Globe And Mail
European Central Bank chief Jean-Claude Trichet is sticking with his stern inflation warnings that indicate an interest rate increase could come as early as next month — despite the market turmoil triggered by Japan's disasters.
http://jlne.ws/gtw2p7
Analysis: CFTC prescribing the wrong medicine
By Ann Saphir and Jonathan Spicer - Reuters
BOCA RATON, Florida (Reuters) - Top futures regulator Gary Gensler is acting a bit too much like his counterpart Mary Schapiro at the Securities and Exchange Commission -- and it's making people nervous.
http://jlne.ws/hA6qbw
NYSE Euronext Puts First US Rate-Futures Trades On The Books
By Jacob Bunge, Of DOW JONES NEWSWIRES
A new front in the battle for the biggest U.S. futures market was joined late Sunday as NYSE Euronext (NYX) recorded the first transactions on a new platform designed to compete with sector heavyweight CME Group Inc. (CME).
http://jlne.ws/dS1Xxd
Too-Big-to-Fail Banks in U.S. Grew After Crisis, Study Shows
By Cady North - Bloomberg
The largest U.S. banks have grown larger since the financial crisis, and the number of “too-big-to- fail” banks will increase by 40 percent over the next 15 years, according to data compiled by Bloomberg. The Dodd-Frank law, which requires more oversight of too- big-to-fail firms, would prohibit the largest banks from merging with one another, an unprecedented power granted to regulators.
http://jlne.ws/i7ucky
US banks face fresh scrutiny on lending
By Helen Thomas in New York - Financial Times
US banks could be forced to disclose when they give clients below-market rates on loans as a part of their efforts to secure further business, under rules being considered by accounting regulators.
http://jlne.ws/h2Pc59
Fed Must Release Loan Data as High Court Rejects Appeal
By Greg Stohr and Bob Ivry - Bloomberg
The Federal Reserve must disclose details of emergency loans it made to banks in 2008, after the U.S. Supreme Court rejected an industry appeal that aimed to shield the records from public view.
http://jlne.ws/gQ6cZY
Goldman Sachs to Redeem Preferred Stock Issued to Berkshire Hathaway
Press Release
New York, March 18, 2011 -- The Goldman Sachs Group, Inc. (NYSE: GS) today announced that the Federal Reserve has concluded that it has no objection to Goldman Sachs’ proposed 2011 capital actions, which include the redemption in full of the 50,000 shares of the Company’s 10% Cumulative Perpetual Preferred Stock, Series G (Preferred Shares) held by Berkshire Hathaway Inc. and certain of its subsidiaries (collectively, Berkshire Hathaway), the repurchase of outstanding common stock and a potential increase in our quarterly common stock dividend.
http://jlne.ws/fIOgtK
No Goldman smoking gun to hit Draghi's ECB hopes
GMA News
ROME/LONDON - Critics of Mario Draghi may have few arguments to block his chances of becoming Europe's top central banker other than just mentioning the fact that he worked at Goldman Sachs for a number of years.
http://jlne.ws/e6dBfY
RBS profits propped up by US investment banking arm
eFinancial News
Royal Bank of Scotland, the UK bank that is majority-owned by taxpayers, relied on a mortgage-trading unit in the US for nearly half of the profits made by its global banking and markets division last year, according to figures released by the bank.
http://jlne.ws/fQcymk
HSBC Was Told About Madoff 'Fraud Risks' in Two KPMG Reports
BusinessWeek
HSBC Holdings Plc, Europe's biggest lender, was warned twice by auditors that entrusting as much as $8 billion in client funds to Bernard Madoff opened it up to "fraud and operational risks."
http://jlne.ws/gJG0iH
Paulson & Co. fund hit by quake-fueled market drop
Market Watch
A fund run by Paulson & Co., the third-largest U.S. hedge fund firm, was hit by the big market selloff this week in the wake of Japan's earthquake. Paulson has run funds on Societe Generale's Lyxor managed-account platform for many years. One of those vehicles, known as Paulson Advantage Fund Limited, was down 6.14% this month, as of March 15, according to a Lyxor ...
http://jlne.ws/hnyxhK
Jumat, 18 Maret 2011
Top Interest Rate Headlines 03-18-11: Federal Reserve Completes Comprehensive Capital Analysis And Review
Federal Reserve Completes Comprehensive Capital Analysis And Review
The Federal Reserve on Friday announced it has completed the Comprehensive Capital Analysis and Review (CCAR), its cross-institution study of the capital plans of the 19 largest U.S. bank holding companies.
http://jlne.ws/dG7aT5
Fed: Comprehensive Capital Analysis and Review: Objectives and Overview
The Comprehensive Capital Analysis and Review (CCAR) involved the Federal Reserve’s forward
looking evaluation of the internal capital planning processes of large, complex bank holding companies and their proposals to undertake capital actions in 2011, such as increasing dividend payments or repurchasing or redeeming stock...
http://jlne.ws/hIyXGq
Mesirow CEO Tyree dies after cancer battle
By: Lorene Yue, Chicago Business
James Tyree, the chairman and chief executive officer of Mesirow Financial Holdings Inc., died Wednesday afternoon, five months after being diagnosed with stomach cancer.
http://jlne.ws/hZysEF
Issuance Of High-Yield Bonds Plummets As Global Turmoil Continues
By Anusha Shrivastava, Of DOW JONES NEWSWIRES
High-yield corporate bond issuance has plummeted as turmoil in the Middle East and Japan continues: About $7 billion of junk bonds have sold over the last two weeks, according to data provider Dealogic, down 40% from the last two weeks of February and almost 60% from the two weeks before that.
http://jlne.ws/dViWvT
Ireland Said to Weigh Allowing Banks to Set Up Asset Warehouse
By Joe Brennan, Bloomberg
Irish authorities are considering allowing the country’s debt-laden lenders to set up a company to warehouse more than 60 billion euros ($84.8 billion) of loans that would be wound down or sold over time, according to three people familiar with the matter.
http://jlne.ws/eZo5Kf
Ex-Treasury Official Barr Not Interested in Consumer Bureau Job
By Carter Dougherty
Michael S. Barr, the former U.S. Treasury Department assistant secretary for financial institutions, said he isn’t interested in becoming director of the new Consumer Financial Protection Bureau.
http://jlne.ws/eIc5s5
Ex-Goldman director sues US SEC over Galleon case
By Martha Graybow, Reuters
A former Goldman Sachs Group Inc (GS.N) director accused of leaking confidential boardroom information has sued U.S. regulators, saying they are trying to unfairly deprive him of a jury trial.
http://jlne.ws/ieLEJh
Capital One will not raise Q1 dividend
Reuters
Capital One Financial Corp (COF.N) will not raise its dividend from 5 cents per share for the first quarter of 2011, the bank and credit card lender said on Friday.
http://jlne.ws/hcfRnD
Dividend Hikes Day!: Let's Not Get Too Excited Here
By Matt Phillips, WSJ.com
As part of our cherished role as market curmudgeon, we feel it’s incumbent on us here at MarketBeat to throw our customary wet blanket over the excitement about dividend day. (Wells Fargo, U.S. Bancorp, J.P. Morgan Chase and Cisco all announced payout plans.)
http://jlne.ws/gTEWeP
Bank Levy, Sovereign-Debt Risk, Stress Tests: Compliance
Europe’s debt crisis won’t be resolved until a number of country’s restructure their debt and clean up their banks’ balance sheets, Citigroup Inc. Chief Economist Willem Buiter.
http://jlne.ws/ev2Jou
Draghi Backed by Hedge Fund Managers to Become ECB Chief
Bloomberg BusinessWeek
Italy’s Mario Draghi should succeed Jean-Claude Trichet as president of the European Central Bank when the incumbent’s term ends in October, a panel of hedge fund managers said.
http://jlne.ws/gdiIip
EU Debt Crisis Won’t End Without Debt Restructuring, Buiter Says
By Mark Deen and Maryam Nemazee, Bloomberg
Europe’s debt crisis won’t be resolved until a number of country’s restructure their debt and clean up their banks’ balance sheets, Citigroup Inc. Chief Economist Willem Buiter.
http://jlne.ws/eTm1ki
FRB Dallas: World Economic Activity Picks Up
Global economic growth remained strong in fourth quarter 2010 and into this year. In advanced economies, slack is beginning to lessen as evidenced by falling unemployment rates and increasing inflation. Rising commodity prices are the main risk to global growth. High food prices are causing inflationary concerns to build among emerging economies.
http://jlne.ws/gxBeVd
Freddie Mac and Fannie Mae 2011 note calendar
Reuters
The following are scheduled sales announcement dates
for potential Freddie Mac (FMCC.OB) reference, Fannie Mae (FNMA.OB)
benchmark notes for 2011.
http://jlne.ws/hBId65
Federal Reserve Completes Comprehensive Capital Analysis And Review
The Federal Reserve on Friday announced it has completed the Comprehensive Capital Analysis and Review (CCAR), its cross-institution study of the capital plans of the 19 largest U.S. bank holding companies.
http://jlne.ws/dG7aT5
Latest Updates on Fukushima Nuclear Crisis in Japan
WSJ.com
The accident at the Fukushima plant now ranks alongside the 1979 accident at Three Mile Island in terms of scale, Japan’s nuclear-safety agency said Friday. The agency raised the accident rating to level five from four after considering the suspected extent of damage to fuel at the plant’s reactors.
http://jlne.ws/hp3i5g
The Federal Reserve on Friday announced it has completed the Comprehensive Capital Analysis and Review (CCAR), its cross-institution study of the capital plans of the 19 largest U.S. bank holding companies.
http://jlne.ws/dG7aT5
Fed: Comprehensive Capital Analysis and Review: Objectives and Overview
The Comprehensive Capital Analysis and Review (CCAR) involved the Federal Reserve’s forward
looking evaluation of the internal capital planning processes of large, complex bank holding companies and their proposals to undertake capital actions in 2011, such as increasing dividend payments or repurchasing or redeeming stock...
http://jlne.ws/hIyXGq
Mesirow CEO Tyree dies after cancer battle
By: Lorene Yue, Chicago Business
James Tyree, the chairman and chief executive officer of Mesirow Financial Holdings Inc., died Wednesday afternoon, five months after being diagnosed with stomach cancer.
http://jlne.ws/hZysEF
Issuance Of High-Yield Bonds Plummets As Global Turmoil Continues
By Anusha Shrivastava, Of DOW JONES NEWSWIRES
High-yield corporate bond issuance has plummeted as turmoil in the Middle East and Japan continues: About $7 billion of junk bonds have sold over the last two weeks, according to data provider Dealogic, down 40% from the last two weeks of February and almost 60% from the two weeks before that.
http://jlne.ws/dViWvT
Ireland Said to Weigh Allowing Banks to Set Up Asset Warehouse
By Joe Brennan, Bloomberg
Irish authorities are considering allowing the country’s debt-laden lenders to set up a company to warehouse more than 60 billion euros ($84.8 billion) of loans that would be wound down or sold over time, according to three people familiar with the matter.
http://jlne.ws/eZo5Kf
Ex-Treasury Official Barr Not Interested in Consumer Bureau Job
By Carter Dougherty
Michael S. Barr, the former U.S. Treasury Department assistant secretary for financial institutions, said he isn’t interested in becoming director of the new Consumer Financial Protection Bureau.
http://jlne.ws/eIc5s5
Ex-Goldman director sues US SEC over Galleon case
By Martha Graybow, Reuters
A former Goldman Sachs Group Inc (GS.N) director accused of leaking confidential boardroom information has sued U.S. regulators, saying they are trying to unfairly deprive him of a jury trial.
http://jlne.ws/ieLEJh
Capital One will not raise Q1 dividend
Reuters
Capital One Financial Corp (COF.N) will not raise its dividend from 5 cents per share for the first quarter of 2011, the bank and credit card lender said on Friday.
http://jlne.ws/hcfRnD
Dividend Hikes Day!: Let's Not Get Too Excited Here
By Matt Phillips, WSJ.com
As part of our cherished role as market curmudgeon, we feel it’s incumbent on us here at MarketBeat to throw our customary wet blanket over the excitement about dividend day. (Wells Fargo, U.S. Bancorp, J.P. Morgan Chase and Cisco all announced payout plans.)
http://jlne.ws/gTEWeP
Bank Levy, Sovereign-Debt Risk, Stress Tests: Compliance
Europe’s debt crisis won’t be resolved until a number of country’s restructure their debt and clean up their banks’ balance sheets, Citigroup Inc. Chief Economist Willem Buiter.
http://jlne.ws/ev2Jou
Draghi Backed by Hedge Fund Managers to Become ECB Chief
Bloomberg BusinessWeek
Italy’s Mario Draghi should succeed Jean-Claude Trichet as president of the European Central Bank when the incumbent’s term ends in October, a panel of hedge fund managers said.
http://jlne.ws/gdiIip
EU Debt Crisis Won’t End Without Debt Restructuring, Buiter Says
By Mark Deen and Maryam Nemazee, Bloomberg
Europe’s debt crisis won’t be resolved until a number of country’s restructure their debt and clean up their banks’ balance sheets, Citigroup Inc. Chief Economist Willem Buiter.
http://jlne.ws/eTm1ki
FRB Dallas: World Economic Activity Picks Up
Global economic growth remained strong in fourth quarter 2010 and into this year. In advanced economies, slack is beginning to lessen as evidenced by falling unemployment rates and increasing inflation. Rising commodity prices are the main risk to global growth. High food prices are causing inflationary concerns to build among emerging economies.
http://jlne.ws/gxBeVd
Freddie Mac and Fannie Mae 2011 note calendar
Reuters
The following are scheduled sales announcement dates
for potential Freddie Mac (FMCC.OB) reference, Fannie Mae (FNMA.OB)
benchmark notes for 2011.
http://jlne.ws/hBId65
Federal Reserve Completes Comprehensive Capital Analysis And Review
The Federal Reserve on Friday announced it has completed the Comprehensive Capital Analysis and Review (CCAR), its cross-institution study of the capital plans of the 19 largest U.S. bank holding companies.
http://jlne.ws/dG7aT5
Latest Updates on Fukushima Nuclear Crisis in Japan
WSJ.com
The accident at the Fukushima plant now ranks alongside the 1979 accident at Three Mile Island in terms of scale, Japan’s nuclear-safety agency said Friday. The agency raised the accident rating to level five from four after considering the suspected extent of damage to fuel at the plant’s reactors.
http://jlne.ws/hp3i5g