Five Minutes With Neal Wolkoff, chief executive officer of ELX Futures, L.P.
There was some excitement at the headquarters for ELX Futures L.P. over the weekend. The exchange - which was founded in 2007 and launched in 2009
and is backed by a consortium of founding partners comprising major global investment banks and market making firms - celebrated its second
anniversary. Neal Wolkoff, chief executive officer of ELX, took few minutes this week to talk about the occasion and the outlook at the
exchange at this juncture.
Q: There was an anniversary celebrated at ELX over the weekend. Could you tell me the significance of the occasion?
A: Our two-year anniversary was a big milestone. It cemented ELX’s place in the futures marketplace as a long-term competitor to the CME Group. I
was personally very proud of my team and the partners behind ELX. We still have much more to accomplish, but the past two years of working hard to
build an exchange from scratch has been remarkable and rewarding. We celebrated with an internal party for the staff. We take great pride in the
anniversary.
Q: Is ELX where you had anticipated it would be at this juncture? Why or why not.
A: When we launched, I wanted ELX to be a competitive alternative that offered lowered fees, state-of-the-art technology and attractive services for our
customers. I believe we achieved all of that.
Q: Which products have gained the most traction at the exchange thus far? Why do you think this is so?
A: U.S. Treasuries and Eurodollars both made their mark and we’re gaining market share and open interest. Do we want to launch new products?
That’s a definite yes.
Q: Is the goal at this point to take the lead in terms of market share for benchmark products such as the 30-year and Eurodollars, or is there another
goal? If there is another goal, what is the goal?
A: We would like to grow our market share on all our products, introduce new products and attract new customers and focus on gaining more
institutional clients. I think ELX is moving in the right direction and it would take very little to move us a remarkable amount forward.
There are going to be great synergies in terms of OTC and derivatives that would result in greater participation. It would make the client base
potentially larger and create opportunities for us.There has been unclear direction in the economy. Futures exchanges are important in strong economic
times as well as weak.
Q: Which products are undergoing more development?
A: European interest rates are undergoing more development. They have not been introduced yet at ELX. Our goals for the rest of this year are to really
create greater ties between ELX, our investors and the buy-side clients of our investors, and we think there are great opportunities for synergies in the
clearing of these products with European products. We haven’t launched yet, but we have it thoroughly in our plans to roll this product out.
Q: ELX has touted the technology it offers its customers as superior. Why is it superior to other offerings out there?
A: We use eSpeed technology that has been proven to be faster and more efficient. We’re very happy that our technology platform has been solid and
stable for the past two years and we are planning for even more advancements in our technology. The platform allows users to access cash and futures
simultaneously – without having to deal with the latency of trading separate markets. Over time, some OTC products will end up trading and looking more
exchange like. We certainly would want to be in the mix.
Q: What is your take on the current state of Dodd-Frank regulatory efforts? Do you anticipate any key changes in ELX's target areas?
A: Dodd-Frank won’t represent major change to exchanges and how we’ll be governed. We’re now fully regulated by the CFTC. It does impose some
additional rules on products and the like. There will be more synergies in OTC futures, more opportunities for cost savings. I do think the market will want
to have the kind of open access to clearing that Dodd-Frank promises.
Q: What can we expect in the future from ELX?
A: We plan to launch new products and new business initiatives to attract new customers.
-- Christine Nielsen
------------------------------------
MarketsWiki Questions: Exploring Financial Technology - an interactive video series and event on Oct. 6, 2011 in Chicago
Question 3 Now Available
Ahead of our MarketsWiki Questions: Exploring Financial Technology event in October, we're asking experts in the financial services industry seven questions and providing the best answers in an interactive video format. Question 3: Whose responsibility is risk management technology today, and what is the best solution for risk management?
http://jlne.ws/kbEq3v
| MarketsWiki Questions: Exploring Financial Technology | |
| Question 3 Interactive Video Now Available | |
 | |
| Ahead of our MarketsWiki Questions: Exploring Financial Technology event in October we're asking experts in the financial services industry seven questions and providing the best answers in an interactive video format. Question 3: Whose responsibility is risk management technology today – exchanges, firms, brokers – and what is the best solution for risk management? | |
 | Question 3 is sponsored by: |
Lead Stories
Raters Put U.S. on Notice
By DAMIAN PALETTA, CAROL E. LEE and MATT PHILLIPS, WSJ.com
Credit rating agencies moved closer to an unprecedented downgrade of the U.S. government's debt amid deteriorating talks in Washington, with President Barack Obama abruptly walking out of a key meeting Wednesday with Republicans seeking a deal to raise the federal borrowing limit.
http://jlne.ws/qfLROS
*CN: According to this article, a downgrade risks pushing interest rates higher, stock markets lower and disrupting global financial markets.
In Debt Watch, Next Shoe to Drop Could be Moody’s
By Damian Paletta, WSJ.com
Wall Street and foreign investors might finally begin paying attention to the scrum over deficit reduction in Washington this week. That’s because Moody’s Investors Service could put the U.S. government’s Aaa bond rating on review for a possible downgrade soon. Moody’s had warned on June 2 that a “review” could come by mid-July “if there were no progress on increasing the statutory debt limit.”
http://jlne.ws/rpi5WK
Treasury says new office to safeguard firms' data
By Jessica Holzer, MarketWatch
A new office within the U.S. Treasury Department will exercise its broad authority to collect data from the financial industry "responsibly" and will adopt the private sector's and the government's current best practices for ensuring it doesn't fall into the wrong hands, a top adviser to Treasury Secretary Timothy Geithner said in prepared testimony Thursday.
http://jlne.ws/qSuTnU
Obama: Social Security checks 'not guaranteed'
By Charles Riley, CNN Money
President Obama issued a broadside Tuesday in the debt ceiling debate, saying in a high-profile interview that he cannot ensure government benefits -- including Social Security -- will be paid if Congress fails to act.
http://jlne.ws/oIkIWF
Obama: Time to "eat our peas" and pass debt deal
By Stephanie Condon, CBS News
President Obama is still seeking the largest deficit reduction deal possible as part of a package deal to raise the debt ceiling, he said in a press conference today. "I continue to push congressional leaders for the largest possible deal," he said from the White House. "It is possible for us to construct a package that would be balanced, would share sacrifice [and] would involve both parties taking on their sacred cows."
http://jlne.ws/nHOzY7
Obama walks out of tense US debt meeting - aide
Reuters
President Barack Obama abruptly ended a tense budget meeting on Wednesday with U.S. Republican leaders by walking out of the room, a Republican aide familiar with the talks said. The aide said the session, the fourth in a row, was the most tense of the week as House of Representatives Speaker John Boehner, the top Republican in Congress, dismissed spending cuts offered by the White House as "gimmicks and accounting tricks."
http://jlne.ws/qhhuH4
Ron Paul (R-TX) says raising the debt limit 'negative' in long term [Video]
http://jlne.ws/ojCudb
Debt ceiling dynamics are bond bullish
By Warren Mosler, Credit Writedowns
Here’s my take:
A. They get a few trillion in long term cuts and maybe a few that kick in reasonably soon and extend the debt ceiling. This would help ensure aggregate demand stays low for long, which is bond friendly, and stocks muddle through in a range with slowing earnings growth but just enough top line growth to stay positive.
B. They don’t extend the debt ceiling...
http://jlne.ws/qmfwd9
Geithner: We need a debt ceiling deal this week
By Jennifer Liberto, CNN Money
Treasury Secretary Tim Geithner said Tuesday that he wants a deal to raise the debt ceiling and cut the budget by the end of this week -- or next week at the latest -- to give Congress enough time to turn the deal into law.
http://jlne.ws/nhCmo6
Geithner Doesn't View 14th Amendment As Way Around US Debt Limit -Official WSJ.com
By Tom Barkley Of DOW JONES NEWSWIRES
Treasury Secretary Timothy Geithner doesn't believe the 14th Amendment could provide a way to skirt the debt ceiling, and has never made such an argument, a Treasury official said Friday in response to a newspaper column. George Madison, Treasury's general counsel, sought to correct an assertion made by constitutional scholar Laurence Tribe in an opinion piece in Friday's edition of the New York Times that Geithner has suggested the constitutional amendment could be used to issue more debt if Congress refuses to raise the country's legal borrowing limit.
http://jlne.ws/p1Blt5
‘Double Eagle’ Gold Fight Recalls Last U.S. Default
By Pham-Duy Nguyen, Bloomberg
The 10 rare Double Eagle gold coins at the heart of a federal trial in Philadelphia are remnants of the last U.S. government default, almost eight decades before the current stalemate in Congress over raising the debt limit.
http://jlne.ws/omXLOm
FRB: Press Release--Minutes of the Federal Open Market Committee, June 21-22, 2011--July 12, 2011
The Federal Reserve Board and the Federal Open Market Committee on Tuesday released the attached minutes of the Committee meeting held on June 21-22, 2011. A summary of economic projections made by Federal Reserve Board members and Reserve Bank presidents for the June 21-22, 2011 meeting is also included as an addendum to these minutes.
http://jlne.ws/r24GRJ
Fed minutes: some ready to ease if recovery lags
Reuters
Some Federal Reserve officials are ready to provide more monetary policy easing if the recovery is too sluggish to cut the lofty unemployment rate and if inflation eases as expected, minutes of their June meeting released on Tuesday show.
http://jlne.ws/p6iJmF
Bernanke Faces Lawmakers for Second Day
BY JEFFREY SPARSHOTT, MICHAEL R. CRITTENDEN AND JON HILSENRATH, WSJ.com
Federal Reserve Chairman Ben Bernanke said Thursday that the central bank wasn't ready yet to take additional steps to boost the economy, acknowledging that the outlook for the recovery remains uncertain.
http://jlne.ws/pMR0Gu
Bernanke repeats Fed to act if recovery stumbles
Reuters
Federal Reserve Chairman Ben Bernanke warned Congress on Thursday that overzealous cuts to government spending could derail an already fragile recovery and said a U.S. debt default could wreak financial havoc.
http://jlne.ws/pHJEyd
Bernanke Says Fed Could Act, but Doesn’t Indicate It Will
Federal Reserve Chairman Ben Bernanke noted in his testimony that the central bank could act if needed, but didn’t offer any indication that it planned to do so any time soon.
http://jlne.ws/qhf107
Bernanke Says Fed Would Consider New Stimulus Effort
By BINYAMIN APPELBAUM, The New York Times
The Federal Reserve chairman, Ben S. Bernanke, gave a subdued account of the economy’s health Wednesday, saying that he expected the economy to grow at a moderate pace during the rest of the year, with unemployment declining “only gradually.”
http://jlne.ws/oSHPMI
Bernanke, Semiannual Monetary Policy Report to the Congress--July 12, 2011
Chairman Ben S. Bernanke
Semiannual Monetary Policy Report to the Congress
Before the Committee on Financial Services, U.S. House of Representatives, Washington, D.C.
July 13, 2011
Chairman Bachus, Ranking Member Frank, and other members of the Committee, I am pleased to present the Federal Reserve's semiannual Monetary Policy Report to the Congress (PDF). I will begin with a discussion of current economic conditions and the outlook and then turn to monetary policy...
http://jlne.ws/nrwECc
Bernanke Not Yet Ready to Step In
BY JEFFREY SPARSHOTT, MICHAEL R. CRITTENDEN AND JON HILSENRATH, WSJ.com
http://jlne.ws/pGBrVN
Gold hits record high on Bernanke, euro worries
Reuters
Gold surged to a record near $1,590 an ounce on Wednesday as the possibility of more Federal Reserve stimulus coupled with Europe's deepening debt crisis fueled bullion's longest winning streak in five years.
http://ow.ly/5DE9M
Fitch Slashes Greece Ratings 4 Notches On Absence Of Aid
WSJ.com
Fitch Ratings slashed Greece's issuer default ratings four notches deeper into junk territory, saying the move reflected the absence of a new, fully funded and credible European Union/International Monetary aid program.
http://jlne.ws/psUmn2
IMF says Greece must move faster, sees deeper slump
Reuters
The International Monetary Fund (IMF) said on Wednesday that Greece's economy would contract more than previously expected and debt would soar even more despite far-reaching deficit-cutting measures.
http://jlne.ws/piOsLV
Strauss-Kahn won't negotiate, says New York lawyer
Reuters
Former IMF chief Dominique Strauss-Kahn will not plead guilty to minor charges or cut a deal in the sexual assault case against him in New York, his lawyer said in remarks published Thursday.
http://jlne.ws/nboVsi
SIFMA: Housing finance reform in U.S., including the future of GSEs, will be addressed separately from Dodd-Frank Act
Overall housing finance reform in the U.S., including the future of the GSEs, will be addressed separately from the Dodd-Frank Act. The term securitization refers to the process of converting assets with predictable cashflows into securities that can be bought and sold in financial markets. In other words, securitization allows financial institutions to bundle and convert illiquid cashflow-producing assets held on their balance sheets, such as individual mortgage loans or credit card receivables, into liquid securities.
http://jlne.ws/oE8cMt
Is China’s Economy Finally Slowing Down?
Forbes
Although the Chinese economy continues to grow at a pace that far exceeds its Western counterparts, there are signs that inflation fighting measures by the Chinese government may be having an impact.
http://jlne.ws/nW8HDZ
Tentative Outright Treasury Operation Schedule - Federal Reserve Bank of New York
The Desk's tentative outright Treasury operation schedules for the purchases associated with the $600 billion purchase program announced by the FOMC on November 3, 2010 and for the purchases associated with the reinvestment of principal payments from agency debt and agency MBS announced by the FOMC on August 10, 2010.
http://jlne.ws/hp922J
CFTC’s Chilton Says ‘Cheetah’ Traders Must Register for Business
By Silla Brush, Bloomberg
U.S. regulators should require that high-frequency and algorithmic traders register with authorities before they enter financial markets, said Bart Chilton, member of the U.S. Commodity Futures Trading Commission. The traders, which Chilton calls “cheetahs”, should be “confined” and subject to testing and a pre-trading accreditation process, Chilton said in a speech prepared for a Washington conference held today by the American Soybean Association.
http://jlne.ws/pNijq8
Authorities could bail out banks again, S and P says
By Tom Braithwaite in New York, Financial Times
Officials fighting the next financial crisis may again bail out banks using the public purse, S&P has said, in an opinion that casts doubt on one of the fundamental tenets of US financial reform.
http://jlne.ws/pgdqwa
Sovereign CDS Index Activity Jumps As European Crisis Widens
By Katy Burne Of DOW JONES NEWSWIRES
Trading activity on a derivatives index that tracks the cost of protecting debt issued by 15 European sovereigns jumped Monday to its second-highest level ever after investors shunned Italian government bonds, stoking fears of contagion spreading from the still-unresolved Greek debt crisis.
http://jlne.ws/qR6z8e
Swaps Rules Will Help Market Grow $40.7 Trillion, Citigroup Says
By Matthew Leising, Bloomberg
The market for interest-rate and credit-default swaps will grow more than 10 percent to $435 trillion by 2013 as oversight of over-the-counter derivatives improves price transparency and cuts trading risk, according to Citigroup Inc.
http://jlne.ws/rpOI5s
**CN: Wow.
Dodd-Frank Financial-Overhaul Law Debated At US Senate Hearing
By Jessica Holzer, Of DOW JONES NEWSWIRES
With the Dodd-Frank financial-overhaul law set to turn one-year old next week, witnesses and lawmakers at a U.S. Senate hearing debated the law's effect on investors.
http://jlne.ws/pz6Fk2
Barney Frank Says Dodd-Frank Is “Holding Up Well”
By Melanie Waddell, AdvisorOne
As the one-year anniversary of passage of the Dodd-Frank Act nears, Rep. Barney Frank, D-Mass., expressed his views on Monday about how the law he co-authored with former Democratic Senator Christopher Dodd is being implemented.
http://jlne.ws/pPk7mi
Regulator strengthens enforcement authority
Risk.net
The Commodity Futures Trading Commission (CFTC) passed a final rule to expand its anti-manipulation powers under the Dodd-Frank Wall Street Reform and...
http://jlne.ws/qPMd43
Consumer Financial Protection Bureau Outlines Bank Supervision Approach
Press Release
The Consumer Financial Protection Bureau (CFPB) today outlined the agency’s approach to supervising large depository institutions to ensure compliance with federal consumer financial protection laws – a supervisory process that will begin on July 21, 2011.
http://jlne.ws/qYE1b7
Fed Data Cruncher Finds No New Normal
By Vivien Lou Chen, Bloomberg
Mary Daly holds up two charts containing 33 bars that all point down. They show eight industries getting hit equally hard after the 18-month recession ended in June 2009, suggesting that much of the past two years’ high unemployment is broad-based and should dissipate as the economy improves.
http://ow.ly/5Cm36
Ex Fed Reserve's Kohn: US Monetary Policy Isn't A Currency War
WSJ.com
Adjustments to the global economy should take place through exchange-rate fluctuations, rather than different inflation rates, former U.S. Federal Reserve vice-president Donald Kohn said Friday.
http://jlne.ws/nwRbNv
New Docs Show Goldman Tapped Fed Program For $15 Billion Loan In '08
Forbes.com
Data obtained by Bloomberg News through the Freedom of Information Act by revealed that Goldman Sachs borrowed $15 billion from the Federal Reserve in late 2008.
http://jlne.ws/nv8cS5
Dodd-Frank Sparks Anxiety Issues
By Joan Quigley - The Bond Buyer
One year after the enactment of a sweeping financial reform law, municipal market participants say the overhaul has created an environment of uncertainty, not dramatic change.
http://jlne.ws/qbArnd
Events
Credit Risk in Emerging Markets
August 1, 2011
www.theIFM.org
Making Sense of Credit Default Swaps
August 10, 2011
www.theIFM.org
FIA Treasury & Rates Forum
September 14, 2011
FIA Program On Growing Role Of Treasury Futures - New York City
http://jlne.ws/fQFQXP
Economic News
Retail Sales Creep Up; Unemployment Claims Edge Lower
By Bill Chappell, NPR
In better numbers than the market had been expecting, retail and food service sales were up in June, according to the Commerce Department. Seasonally adjusted sales were up 0.1 percent. That's a rebound from May, when sales fell by the same amount.
http://jlne.ws/o2kZrv
U.S. Import Prices Fall for First Time in a Year
By Alex Kowalski, Bloomberg
Prices of goods imported into the U.S. dropped in June for the first time in a year as oil and food expenses retreated.
http://jlne.ws/oU1FwK
U.S. trade deficit expanded 15.1 percent to $50.2 billion in May
Federal Reserve Bank of Cleveland
The U.S. trade deficit expanded 15.1 percent to $50.2 billion in May, dropping by $6.6 billion from $43.6 billion in April. Imports increased $5.6 billion to $225.1 billion, while exports declined $0.9 billion to $174.9 billion.
http://jlne.ws/p5JqjA
Job openings flat in May, a sign of slow hiring
Associated Press
The number of U.S. job postings didn't increase in May, a sign that hiring is unlikely to pick up this summer.
http://jlne.ws/qGRkMl
Exchanges, Clearing Houses & MTFs
DTCC Appoints Bari Jane Wolfe Head Of Regulatory Relations
WSJ.com
The Depository Trust and Clearing Corp. said Tuesday it has hired Bari Jane Wolfe in a newly created head of regulatory relations role.
http://jlne.ws/pBki6T
DTCC Names Adam Wysota Chief Technology Officer
The Depository Trust and Clearing Corporation (DTCC) announced today that Adam Wysota, an information technology veteran with
more than 20 years of experience in the field, joined the organization on July 5 as managing director and chief technology officer.
http://jlne.ws/oqER4D
MarketAxess Releases Next Generation Trading Platform With Enhanced Support for CDS Trading Under Dodd-Frank
Press Release
MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a leading electronic trading platform for U.S. and European high-grade corporate bonds, emerging markets bonds and other fixed income securities, today announced the launch of an enhanced institutional credit trading system that includes significant additional functionality for credit default swap (CDS) trading. With this release, MarketAxess now has much of the core technology needed to meet the anticipated regulatory requirements for registration as a swap execution facility (SEF) and security-based swap execution facility (SB SEF) under the Dodd-Frank Act in the U.S.
http://jlne.ws/oXHpbs
DJ MarketAxess Bond Trading Platform Beefs Up CDS Capabilities
By Katy Burne, Dow Jones Newswires
MarketAxess Holdings Inc. introduced a suite of enhancements to its electronic bond-trading platform Monday that will allow traders of credit default swaps to compare prices from multiple dealers at once and trade more efficiently. The move comes as market participants prepare for a sweeping regulatory overhaul of privately traded, or "over the counter" derivatives. The final rules stemming from the U.S. Dodd-Frank Act, passed last summer, are expected to be ready later this year and to be implemented sometime in 2012.
Firms & Banks
ICAP appoints Deutsche Bank executive as COO
By Alex MacDonald, MarketWatch
U.K. based brokerage firm ICAP PLC (IAP.LN) said Monday that Mark Price will join the firm as group chief operating officer from Oct. 3, subject to regulatory approval.
http://jlne.ws/oMNVAd
MTS Launches Electronic Market For UK Government Bonds
Press Release
MTS, Europe’s premier facilitator for the electronic fixed income market, announced today that it has launched an electronic market for UK government bonds, or Gilts.
http://jlne.ws/r61Xgr
Morgan Stanley Could Be Next Wall Street Giant to Cut Staff
FOX Business
Exclusive : Morgan is planning for a large round of job cuts that would go beyond brokers to include traders and possibly investment bankers.
http://jlne.ws/nIImd8
Citigroup moves closer to credit card U-turn
By Justin Baer in New York - Financial Times
Citigroup is leaning toward keeping its private-label credit card arm, reversing course on a $41bn business the bank had marked for disposal in the wake of the financial crisis, people familiar with the matter said.
http://jlne.ws/oZ52l3
Troubled Bank Of America Still World's Biggest Wealth Manager
Forbes via Yahoo! News
Despite all the bad news that Bank of America has been faced with since 2008 the U.S. bank is still on top of the world on the private banking front.
http://jlne.ws/riKFjX
BofA Again Faces Capital Conundrum
By DAVID REILLY, WSJ.com
During the financial crisis, investors constantly fretted over bank capital. Now, Bank of America again faces questions over its ability to withstand losses as it struggles with mortgage problems.
http://jlne.ws/pTJcsI
Regulators
ECB and World Bank call for exemptions from US derivatives rules
Risk.net
The World Bank and the European Central Bank (ECB) have called on the US Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission...
http://jlne.ws/ntDXcS
ECB: Statement by the EC, ECB, and IMF on the Review Mission to Ireland
Staff teams from the European Commission (EC), European Central Bank (ECB), and International Monetary Fund (IMF) visited Dublin during July 6-14 for the regular quarterly review of the government’s economic programme. The objectives of the programme are to address financial sector weaknesses and to put Ireland’s economy on the path of sustainable growth, sound public finances, and job creation, while protecting the poor and most vulnerable. The teams’ assessment is that the program remains on track and is well financed. The authorities have continued to steadfastly implement program policies. Tensions in sovereign bond markets have escalated during the visit, but programme financing is cushioning the impact of this shock on the Irish economy and public finances. Continued strong policy implementation will be important to limit potential contagion effects...
http://jlne.ws/q3khkB
Philadelphia Fed Appoints Kori Ann Connelly Assistant Vice President and Counsel
Press Release
The Federal Reserve Bank of Philadelphia today announced the appointment of Kori Ann Connelly to assistant vice president and counsel. She will provide legal support primarily to the Human Resources, Financial Management Services, and Law Enforcement departments. She will also administer the Bank's insurance program.
http://jlne.ws/nTn3ha
EU Sees Risks to Financial Stability, Girds for Banks Failing Stress Tests
Bloomberg
The risks to financial stability from analysts using European Union stress-test data to conduct their own exams on banks "should not be underestimated," according to a confidential document prepared by EU officials.
http://jlne.ws/puRINp
IMF Managing Director Christine Lagarde Proposes Appointment Of Mr. David Lipton As First Deputy Managing Director And Mr. Min Zhu As Deputy Managing Director
Press Release
http://jlne.ws/pDdAJV
Statement From U.S. Treasury Secretary Geithner On The Appointment Of David Lipton To Be IMF First Deputy Managing Director
Press Release
http://jlne.ws/r41tOr
China secures key IMF role under Lagarde
By Alan Beattie in Washington, Financial Times
Zhu Min, former deputy governor of the Chinese central bank, was on Tuesday appointed to the top management of the International Monetary Fund, a signal of China’s growing power in the global economy.
http://jlne.ws/pyZr7x
Martin J. Gruenberg To Be Nominated By Obama For FDIC Chairman
President Barack Obama said Friday that he will nominate Martin J. Gruenberg to become chairman of the Federal Deposit Insurance Corp.
Gruenberg would succeed Sheila Bair, who plans to end her five-year term as one of the nation's top banking regulators on July 8. Bair was a holdover from the Bush administration and one of several regulators who helped shape the federal response to the 2008 financial crisis.
http://jlne.ws/nrBVaA
GOP bicker with FDIC over small bank capital, economic recovery
MarketWatch
While most of Washington is focusing on the disappointing U.S. employment report for June that stunned investors and confused economists, a group of lawmakers and regulators spent Friday arguing over whether community banks should be required to hold more or less capital and what the buffers mean for jobs and economic stability. The target of a group of Republican lawmakers in a House committee is the Federal Deposit Insurance Corp. and its team of examiners supervising community banks.
http://jlne.ws/nRVi2s
Global News
Berlusconi pledges to accelerate budget measures
Associated Press
Italian Premier Silvio Berlusconi says the government will bring forward the timetable it has for a raft of austerity measures, designed to prevent the eurozone's third biggest economy from getting embroiled in a debt crisis that has already seen three countries get bailouts.
http://jlne.ws/r2Ahxm
Bank Indonesia Keeps Rate Steady; Flags Tamer Inflation
BY JOKO HARIYANTO AND I MADE SENTANA, WSJ.com
Bank Indonesia on Tuesday kept its benchmark interest rate unchanged at 6.75% after inflation fell to its lowest level in a year in June, saying it expects consumer prices for the full year to rise at a slower rate than it previously projected.
http://jlne.ws/nisT0f
Wall Street Systems extends Central Bank solution to National Bank of Romania
Wall Street Systems (Wallstreet), the global provider of treasury, trading and settlement solutions and services, today announces the signing of the National Bank of Romania (NBR) for efficient reserve management, asset management and monetary policy execution.
http://jlne.ws/oZlzR2
China to Halt Tightening Campaign
BY TOM ORLIK, WSJ.com
When it comes to China's monetary policy, it makes sense to distinguish what the government should do from what it probably will do.
http://jlne.ws/pL3KB4
European Sovereign CDS Prices Hit Record High
By Art Patnaude and Carol Dean, DOW JONES NEWSWIRES
Default insurance costs for Ireland continued the move to an all-time high Monday amid expectations of a ratings downgrade, although Italy remained in the spotlight.
http://jlne.ws/rsm269
Raising interest rates will reduce consumer confidence
Mozo, Friday 08 July 2011
If the Reserve Bank of Australia (RBA) raises interest rates soon, the effect could be a downturn in consumer confidence, according to building materials manufacturer CSR. Earlier this week, the RBA opted to keep the cash rate at the 4.75 per cent level set in November 2010, marking the eighth consecutive month in which there was no change.
Rob Sindel, managing director of CSR, observed that the current economic climate is "quite uncertain", reports the Australian.
http://jlne.ws/qdAzuS
Three-Month Euribor At Two-Year High As ECB Raises Rates
WSJ.com
By Neelabh Chaturvedi Of DOW JONES NEWSWIRES
The cost of borrowing euros for three months in the interbank market rose to a new two-year high Friday, a day after the European Central Bank raised its key interest rate for the second time this year. The three-month Euro Interbank Offered Rate, also known as Euribor, was fixed at 1.593%, up from 1.583%.The spread between the three-month Euribor and the three-month Euro Overnight Index Average rate, also known as Eonia, widened to 24.1 basis points from 22.5 basis points. http://jlne.ws/pqbbs8
UK banks say ring-fencing plans flawed and costly
Reuters UK Focus via Yahoo! UK & Ireland Finance
Britain's top lenders said proposals to make them ring-fence their retail banking arms from their investment banks had major flaws and would be far too costly.
http://jlne.ws/oHVOgB
IMF report on Greece displays familiar balancing act
By Alan Beattie in Washington, Financial Times
Wednesday’s report on Greece by the International Monetary Fund, which helped unlock its latest tranche of rescue lending, shows the fund in a familiar balancing act – on this occasion complicated by its junior role in the rescue programmes in western Europe.
http://jlne.ws/nQw3wp
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