Deficit Again Expected To Top $1 Trillion
WSJ.com
The federal budget deficit likely will top $1 trillion for the fourth consecutive year in fiscal 2012 as the economy continues to grow at a sluggish pace, the nonpartisan Congressional Budget Office predicted Tuesday
http://online.wsj.com/article/SB10001424052970204740904577194872392678482.html?mod=WSJ_hp_LEFTTopStories
Wall Street loosens ties with CME rival ELX
Ann Saphir - Reuters
The Wall Street powerhouses that founded ELX Futures LP to combat CME Group Inc 's virtual monopoly in Treasury futures are cutting their ownership stakes in the tiny exchange, where trading volumes were battered by last fall's failure of MF Global Holdings. "We're working on a new capital structure for ELX," its new chief executive, Rich Jaycobs, told Reuters on Monday, in his first public interview since taking the job on Jan 20.
http://jlne.ws/wiAa2Q
ICE to combine margins for CDS clearing
By Telis Demos in New York - Financial Times
The IntercontinentalExchange will begin allowing banks to combine the margin used to clear trades in single-name and indices of credit default swaps, but is still waiting on regulatory approval to allow banks’ customers to do so.
http://jlne.ws/xRDaUG
Banks set to double crisis loans from ECB
By Patrick Jenkins and David Oakley in London and Ralph Atkins in Frankfurt - Financial Times
European banks are preparing to tap the European Central Bank’s emergency funding scheme for up to twice as much as the ECB supplied in its debut E489bn auction last month, providing further evidence of the sector’s liquidity squeeze.
http://jlne.ws/xkGh0J
Citigroup's Coutts Said to Depart as Co-Chief of France Unit
BusinessWeek
Citigroup Inc.'s co-chief country officer and head of corporate and investment banking for France, Eric Coutts, left the company as the lender reduces staff, according to a person with knowledge of the matter.
http://jlne.ws/z6zvKw
Citigroup Said to Cut Bonuses in Investment Bank By About 30%
BusinessWeek
Citigroup Inc., the third-biggest U.S. lender by assets, cut 2011 bonuses in its investment banking division by about 30 percent on average amid slumping revenue, according to a person briefed on the matter.
http://jlne.ws/yvTA5x
Santander annual profit falls 35%
By Victor Mallet in Madrid - Financial Times
Net profit at Spain’s Santander, the eurozone’s biggest bank by market capitalisation, fell 35 per cent last year to E5.35bn from E8.18bn in 2010 as the Spanish property market collapse and the eurozone debt crisis continued to erode earnings.
http://jlne.ws/AvZIvM
FSA warns on Mifid review proposals
By Philip Stafford - Financial Times
Proposed European Union legislation to create a new type of trading venue could lead to “a significant withdrawal of liquidity” from the region’s largest off-exchange derivatives market, the UK regulator has warned.
http://jlne.ws/zmCHpw
Commerzbank Chief Defends Not Paying Past Bonuses
By JULIA WERDIGIER
LONDON — Martin Blessing, the chief executive of Commerzbank, said on Monday that he thought he had acted “honorably” when the bank decided not to pay 2008 bonuses to 104 investment bankers.
http://jlne.ws/wNnwoV
Freddie Mac: A mess, and likely to stay that way
CNN Money
It's not tough to find critics of Freddie Mac and Fannie Mae on either the right or the left. But there has been little progress made in rehabilitating the mortgage giants.
http://jlne.ws/y1123a
Selasa, 31 Januari 2012
Senin, 30 Januari 2012
Top Interest Rate Headlines 01-30-12: FRB: Senior Loan Officer Opinion Survey: Banks Saw “Somewhat Stronger” Demand For Loans From Businesses
FRB: Senior Loan Officer Opinion Survey: January 2012
The January 2012 Senior Loan Officer Opinion Survey on Bank Lending Practices addressed changes in the supply of, and demand for, bank loans to businesses and households over the past three months. The survey included three sets of special questions: the first set asked banks about lending to firms with European exposures; the second set asked banks about changes in their lending policies on commercial real estate (CRE) loans over the past year; and the third set asked banks about their outlook for credit quality in 2012. This summary is based on responses from 56 domestic banks and 23 U.S. branches and agencies of foreign banks.
http://jlne.ws/znUiip
Missing Funds at MF Global May Have 'Vaporized'
WSJ.com
Nearly three months after MF Global Holdings Ltd. collapsed, officials hunting for an estimated $1.2 billion in missing customer money increasingly believe that much of it might never be recovered, according to people familiar with the investigation.
http://jlne.ws/A4cy4k
Bernanke Beats Obama for Mortgage-Bond Investors
Mortgage-bond investors have been betting that Federal Reserve Chairman Ben S. Bernanke will do more to aid housing than President Barack Obama.
http://jlne.ws/A2ylmS
Sarkozy's modest financial tax has political aims
Reuters
French President Nicolas Sarkozy promised "shockwaves" with a unilateral tax on some financial transactions, but the modest levy his government outlined on Monday was viewed as a political gesture that will cause few market ructions.
http://jlne.ws/xsuwNx
ICE to Begin Portfolio Margining for Bank Credit Swap Trades
Bloomberg
Intercontinental Exchange Inc. (ICE), owner of the world’s largest credit-default swaps clearinghouse, said it received approval to lower its bank members’ cost to guarantee their proprietary positions.
http://jlne.ws/wk9Blb
States to decide this week on mortgage deal
Reuters
State and federal officials are close to a settlement with the largest U.S. banks over mortgage abuses, with states facing an end-of-the-week deadline to decide whether they will sign on, people close to the talks said.
http://jlne.ws/zN3qb7
ECB Opinion on CRD IV
http://bit.ly/zbOtIm
MF Global Said ‘Never Been Stronger’ a Week Before Failure
Bloomberg
A week before MF Global Holdings Ltd. collapsed, its chief financial officer told Standard & Poor’s in an e-mail that the futures broker had “never been stronger.”
http://jlne.ws/y5xs9d
EU leaders agree on permanent bailout fund
Reuters
EU leaders reached agreement at a summit on Monday on the introduction of a permanent euro zone bailout mechanism from July 2012, with a treaty governing the fund to be signed at a later date, three EU officials told Reuters.
http://jlne.ws/yj8T9D
SunGard Enhances Stream Fail Monitor for Mortgages and Agency Debt
Press Release
SunGard has enhanced its Stream Fail Monitor solution, part of its Stream suite of post-trade solutions, to help financial services firms comply with the expansion of the Treasury Market Practice Group (TMPG) penalties to apply to mortgages and agency debt fails.
http://jlne.ws/xo1izX
Spain seen heading for recession as economy shrinks
Reuters
Spain's economy looks set to slip into recession after contracting for the first time in two years in the last quarter of 2011, highlighting the challenge for EU leaders as they meet to find ways to boost growth while cutting budgets.
http://jlne.ws/xF4kGt
Fed Pulls Back the Curtain
Barron's
In a historic shift last week, the Federal Reserve removed all mystery about its plans for interest rates, declaring its intent to maintain the current "exceptionally low" target of near zero percent for the key federal-funds rate "at least through late 2014."
http://jlne.ws/ylfAbc
Citi Chairman Parsons Considers a Departure
WSJ.com
Richard D. Parsons, who as chairman of Citigroup Inc. helped steer the bank through its near-death experience in the financial crisis, is considering stepping down after three years in the post, said people familiar with the situation.
http://jlne.ws/xpzDpG
EU Leaders Hold Fiscal Talks
WSJ.com
European Union leaders gathered Monday to finalize accords on tighter fiscal discipline and a permanent bailout fund, even as a looming multibillion-euro debt-restructuring deal for Greece threatened to overshadow the talks.
http://jlne.ws/yo38W6
France cuts 2012 growth forecast
BBC
France has cut its growth forecast for this year to 0.5% from 1%, Prime Minister Francois Fillon has announced. The revision was made to "take into account the deterioration of the economic situation," he said.
http://jlne.ws/yW8OaM
The January 2012 Senior Loan Officer Opinion Survey on Bank Lending Practices addressed changes in the supply of, and demand for, bank loans to businesses and households over the past three months. The survey included three sets of special questions: the first set asked banks about lending to firms with European exposures; the second set asked banks about changes in their lending policies on commercial real estate (CRE) loans over the past year; and the third set asked banks about their outlook for credit quality in 2012. This summary is based on responses from 56 domestic banks and 23 U.S. branches and agencies of foreign banks.
http://jlne.ws/znUiip
Missing Funds at MF Global May Have 'Vaporized'
WSJ.com
Nearly three months after MF Global Holdings Ltd. collapsed, officials hunting for an estimated $1.2 billion in missing customer money increasingly believe that much of it might never be recovered, according to people familiar with the investigation.
http://jlne.ws/A4cy4k
Bernanke Beats Obama for Mortgage-Bond Investors
Mortgage-bond investors have been betting that Federal Reserve Chairman Ben S. Bernanke will do more to aid housing than President Barack Obama.
http://jlne.ws/A2ylmS
Sarkozy's modest financial tax has political aims
Reuters
French President Nicolas Sarkozy promised "shockwaves" with a unilateral tax on some financial transactions, but the modest levy his government outlined on Monday was viewed as a political gesture that will cause few market ructions.
http://jlne.ws/xsuwNx
ICE to Begin Portfolio Margining for Bank Credit Swap Trades
Bloomberg
Intercontinental Exchange Inc. (ICE), owner of the world’s largest credit-default swaps clearinghouse, said it received approval to lower its bank members’ cost to guarantee their proprietary positions.
http://jlne.ws/wk9Blb
States to decide this week on mortgage deal
Reuters
State and federal officials are close to a settlement with the largest U.S. banks over mortgage abuses, with states facing an end-of-the-week deadline to decide whether they will sign on, people close to the talks said.
http://jlne.ws/zN3qb7
ECB Opinion on CRD IV
http://bit.ly/zbOtIm
MF Global Said ‘Never Been Stronger’ a Week Before Failure
Bloomberg
A week before MF Global Holdings Ltd. collapsed, its chief financial officer told Standard & Poor’s in an e-mail that the futures broker had “never been stronger.”
http://jlne.ws/y5xs9d
EU leaders agree on permanent bailout fund
Reuters
EU leaders reached agreement at a summit on Monday on the introduction of a permanent euro zone bailout mechanism from July 2012, with a treaty governing the fund to be signed at a later date, three EU officials told Reuters.
http://jlne.ws/yj8T9D
SunGard Enhances Stream Fail Monitor for Mortgages and Agency Debt
Press Release
SunGard has enhanced its Stream Fail Monitor solution, part of its Stream suite of post-trade solutions, to help financial services firms comply with the expansion of the Treasury Market Practice Group (TMPG) penalties to apply to mortgages and agency debt fails.
http://jlne.ws/xo1izX
Spain seen heading for recession as economy shrinks
Reuters
Spain's economy looks set to slip into recession after contracting for the first time in two years in the last quarter of 2011, highlighting the challenge for EU leaders as they meet to find ways to boost growth while cutting budgets.
http://jlne.ws/xF4kGt
Fed Pulls Back the Curtain
Barron's
In a historic shift last week, the Federal Reserve removed all mystery about its plans for interest rates, declaring its intent to maintain the current "exceptionally low" target of near zero percent for the key federal-funds rate "at least through late 2014."
http://jlne.ws/ylfAbc
Citi Chairman Parsons Considers a Departure
WSJ.com
Richard D. Parsons, who as chairman of Citigroup Inc. helped steer the bank through its near-death experience in the financial crisis, is considering stepping down after three years in the post, said people familiar with the situation.
http://jlne.ws/xpzDpG
EU Leaders Hold Fiscal Talks
WSJ.com
European Union leaders gathered Monday to finalize accords on tighter fiscal discipline and a permanent bailout fund, even as a looming multibillion-euro debt-restructuring deal for Greece threatened to overshadow the talks.
http://jlne.ws/yo38W6
France cuts 2012 growth forecast
BBC
France has cut its growth forecast for this year to 0.5% from 1%, Prime Minister Francois Fillon has announced. The revision was made to "take into account the deterioration of the economic situation," he said.
http://jlne.ws/yW8OaM
Jumat, 27 Januari 2012
Top Interest Rate Headlines 01-27-2012: EU Plans Complaint on 'Volcker Rule'
EU Plans Complaint on 'Volcker Rule'
http://jlne.ws/ypXsdB
Germany wants Greece to relinquish budget controls
http://jlne.ws/AuT94a
Justice Department Unit Issues Subpoenas in Mortgage Fraud Inquiry
http://jlne.ws/wV3b2I
Basel III requirements will reduce corporate performance, say corporate treasurers
http://jlne.ws/yuvqH7
Lehman Says It May Give Creditors $8.1- $10.7B
http://jlne.ws/ysbAAl
Loans and Leases in Bank Credit
http://jlne.ws/xBN7nZ
Citi to Cut Bonuses in Investment Bank About 30%
http://jlne.ws/yxNIrZ
Fitch Downgrades Five Euro-Zone Members
http://jlne.ws/zYfijX
Federal task force to investigate mortgage crisis misconduct
http://jlne.ws/wuAOvH
Outsized Impact of Inventories on GDP Growth
http://jlne.ws/y4s84h
Spain announces budget reform as jobless rate soars above 5 million [Video]
http://jlne.ws/xXVOxc
Fed’s Dudley Sees Significant Impediments to Economic Growth
http://jlne.ws/wU3BYK
http://jlne.ws/ypXsdB
Germany wants Greece to relinquish budget controls
http://jlne.ws/AuT94a
Justice Department Unit Issues Subpoenas in Mortgage Fraud Inquiry
http://jlne.ws/wV3b2I
Basel III requirements will reduce corporate performance, say corporate treasurers
http://jlne.ws/yuvqH7
Lehman Says It May Give Creditors $8.1- $10.7B
http://jlne.ws/ysbAAl
Loans and Leases in Bank Credit
http://jlne.ws/xBN7nZ
Citi to Cut Bonuses in Investment Bank About 30%
http://jlne.ws/yxNIrZ
Fitch Downgrades Five Euro-Zone Members
http://jlne.ws/zYfijX
Federal task force to investigate mortgage crisis misconduct
http://jlne.ws/wuAOvH
Outsized Impact of Inventories on GDP Growth
http://jlne.ws/y4s84h
Spain announces budget reform as jobless rate soars above 5 million [Video]
http://jlne.ws/xXVOxc
Fed’s Dudley Sees Significant Impediments to Economic Growth
http://jlne.ws/wU3BYK
Kamis, 26 Januari 2012
January 26, 2012: Bernanke has finger on trigger for new bond buys [NEWSLETTER]
January 26, 2012
JLN Interest Rates - http://www.jlninterestrates.com
Conversation Starter
Deloitte Consumer Spending Index Ends 2011 on a Low Note; 2012 Outlook Suggests Contraction in Incomes, Future Spending
NEW YORK, Jan. 26, 2012 /PRNewswire/ -- Despite small improvements in three out of four components, the Deloitte Consumer Spending Index (Index) dipped slightly in December due to a decline in housing prices. The Index tracks consumer cash flow as an indicator of future consumer spending.
"Initial unemployment claims continued to decline in December, while real wages benefited from a decrease in energy prices," explained Carl Steidtmann, Deloitte's chief economist and author of the monthly Index. "This positive movement was not substantial enough to offset the continued pressure from the housing market, which has been the most significant drag on the Index for many months."
The Index, which comprises four components — tax burden, initial unemployment claims, real wages, and real home prices — fell to 1.86 from a reading of 1.93 the previous month.
"The New Year brings new demands on retailers," said Alison Paul, vice chairman and U.S. Retail & Distribution sector leader, Deloitte LLP. "In addition to a challenging economic climate, shifts in consumer behavior – from price consciousness to technology adoption – will force retailers to find new ways to remain relevant to their customers in 2012. Retailers should align talent, physical space, processes and technology in a way that moves the in-store environment from transactional to a complete and engaging brand experience."
Highlights of the Index include:
Tax Burden: The tax burden rose slightly to 11.09 percent as state and local governments increased taxes to cover budgetary shortfalls.
Initial Unemployment Claims: Claims moved lower in the most recent month to 396,250, falling below the 400,000 mark for the first time in seven months.
Real Wages: While down 2.1 percent from a year ago, real wages posted a small gain to $8.75 on falling energy prices.
Real Home Prices: Prices fell 5.72 percent from a year ago. Real home prices are now down to levels not seen since the middle of 2000.
Outlook for 2012
The ability for consumers to continue to spend at the rates seen in 2011 may be in question.
"Going forward, it is unlikely there will be another tax cut, and Social Security tax withholding may rise back to its previous level by March," said Steidtmann. "Another 150 basis point drop in savings is not likely, and while gas prices can always fall, the rising tensions in the Middle East would argue against such a drop."
Steidtmann contends that without income growth, spending will contract in a way that outpaces the decline in incomes.
About Deloitte's Retail & Distribution Practice
Deloitte is a leading presence in the retail and distribution industry, providing audit, consulting, enterprise risk management, financial advisory and tax services to 80 percent of the Fortune 500 retailers. With more than 1,400 professionals, Deloitte's Retail & Distribution practice delivers insights and solutions assisting retailers across all major subsectors including apparel, grocery, food and drug, wholesale and distribution and online address critical issues affecting their businesses. For more information about Deloitte's Retail & Distribution sector, please visit www.deloitte.com/us/retail-distribution.
As used in this document, "Deloitte" means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.
See the full Deloitte release here:
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Fed's Bernanke To Lead College Classes On Role Of Fed In Today's Economy
The Federal Reserve Board announced on Thursday that Chairman Ben S. Bernanke will deliver a series of lectures aimed at college students. Beginning on March 20, he will lead four classes on "The Federal Reserve and its Role in Today's Economy" as part of a course offered to undergraduates at the George Washington University School of Business. The class will feature a variety of speakers who will discuss central banking. Chairman Bernanke's lectures are scheduled for March 20, 22, 27 and 29 and will begin at 12:45 pm EDT.
Online viewing will be available to the public at www.ustream.tv/channel/federalreserve Leaving the Board. After the lectures, the Board will post transcripts and video recordings at www.federalreserve.gov.
-- Christine Nielsen
Lead Stories
Bernanke has finger on trigger for new bond buys
Reuters
The Federal Reserve has moved closer to embarking on a new round of its controversial money-pumping after the central bank and its chairman Ben Bernanke highlighted a grim outlook for the U.S. economy.
http://jlne.ws/wny4n3
FOMC statement from January 24-25 meeting
Reuters via Yahoo! News
WASHINGTON (Reuters) - Following is the Federal Open Market Committee's statement on interest rate policy issued at the close of its meeting on Wednesday: "Information received since the Federal Open Market Committee met in December suggests that the economy has been expanding moderately, notwithstanding some slowing in global growth.
http://jlne.ws/xXDxwd
The Fed acts without acting
The Economist
ONE truth that emerges clearly from the recent history of Federal Reserve monetary-policy action is that changing central bank policy goals is like steering the Titanic. You can see where the ship ought to go, and the captain himself might do his best to pilot it there, but the nature of the beast is that it simply won't turn on a dime. There are too many extremely cautious people influencing policy decisions and too much political and market scrutiny for that.
http://jlne.ws/y4s4aa
Fed on Hold Til Two Years After Mayan Apocalypse, Markets Cheer
Wall Street Journal Blogs
The Fed just extended its promise to keep rates low at least through late 2014.
http://jlne.ws/A4GoVq
**CN: This one was worth including just for the headline.
Bernanke shakes up central bank
By Robin Harding in Washington - Financial Times
Ben Bernanke’s road towards a more transparent US Federal Reserve was a long one, but he got there in the end. His tenure has been marked by momentous Fed meetings, and while this one may have lacked the drama of a weekend gathering to rescue the financial system, its long-term impact will not be less.
http://jlne.ws/zOT64i
The Fed experiments with imperfect tools
Mohamed El-Erian - Financial Times
Policy experimentation continues unabated in the US with the Federal Reserve launching on Wednesday a new initiative to influence market valuations and, through this, the outlook for the country’s economy. The Fed hopes to use greater transparency to mould expectations in a manner that promotes economic growth and price stability. But this new approach could also create confusion and even greater hesitancy on the part of healthy balance sheets to engage in productive investments.
http://jlne.ws/A3xM3q
Rate futures already say Fed rates low until 2014
Market Watch
NEW YORK (MarketWatch) -- Interest-rate futures traders have already shifted expectations for a rate increase from the Federal Reserve out to 2014, analysts said. That may dampen any market impact of a shift in policymakers' language in its policy statement released Wednesday after a two-day meeting.
http://jlne.ws/xlOsIF
Federal Reserve's transparency steps
Reuters via Yahoo! Finance
The Federal Reserve on Wednesday took a series of historic steps toward making the inner workings of its once-secretive rate-setting committee public.
http://jlne.ws/yN85Kt
Fed Rate Decision Welcome, but US Economy Shaky: CEOs
CNBC
The Federal Reserve's announcement on interest rates was welcomed by business leaders in Davos Thursday morning - but there is still nervousness about the future of the US economy.
http://jlne.ws/zdhEQs
Swonk, Broaddus on Fed Statement, QE3 Outlook
Bloomberg
Jan. 25 (Bloomberg) -- Diane Swonk, chief economist at Mesirow Financial Inc., and Alfred Broaddus, former president of the Federal Reserve Bank of Richmond, talk about today's Federal Open Market Committee policy statement and decision to specify a 2 percent goal for long-term inflation.
http://jlne.ws/wSPYAm
Geithner Says Obama Won’t Ask Him to Stay for Second Term
Bloomberg
Jan. 25 (Bloomberg) -- Treasury Secretary Timothy F. Geithner, the last remaining member of the Obama administration’s original economic team, said he doesn’t expect the president to ask him to stay in office if re-elected
http://jlne.ws/wnOZyI
Audit rips exec pay in bailouts
Detroit News
An audit released Tuesday criticized the U.S. Treasury Department's decision to allow firms that got large government bailouts to pay some executives cash salaries of more than $500,000 to keep them from quitting.
http://jlne.ws/zDmHb9
Taxpayers still owed $132.9B from bailout: report
Associated Press via Yahoo! Finance
A government watchdog says U.S. taxpayers are still owed $132.9 billion that companies haven't repaid from the financial bailout.
http://jlne.ws/x7ghhj
World Bank's action on Europe reflects fear of another global meltdown
Washington Post
The World Bank is moving to shore up economies in eastern Europe and central Asia as fear intensifies that problems in the euro area have begun spilling over to other parts of the world. The bank announced on Wednesday it would commit $27 billion to protect developing nations in the region from a western European crisis that has begun to undercut trade and investment.
http://jlne.ws/wzqkEL
Soros Promotes Crisis Plan for Europe
By ERIC PFANNER - NY Times
The billionaire investor George Soros said on Wednesday that it was possible Greece could be pushed out of the euro zone this year.
http://jlne.ws/xsziVf
Greek Debt Talks to Resume in Athens as Policy Makers Squabble
BusinessWeek
Talks on a debt swap to avert a Greek default resume today as international policy makers squabble over the mounting cost of the rescue.
http://jlne.ws/yUff34
Germany Approves Bank Bailout Bill
BY ANDREA THOMAS - WSJ
BERLIN—German lawmakers Thursday approved a bill to reactivate the country's bank bailout fund SoFFin to help banks weather the current debt crisis and improve their capital base.
http://jlne.ws/wWH9am
Illinois AG sues S&P over mortgage ratings
By Alejandra Cancino - Chicago Tribune
The nation's largest credit agency, Standard & Poor's, violated Illinois law when it assigned its highest credit rating to risky mortgage-backed investments in the years leading to the collapse of the housing market, Attorney General Lisa Madigan alleged Wednesday.
http://jlne.ws/ydp7RE
Old mortgages rise from the dead, haunt homeowners
In July 2009, Roy and Sheila Bowers refinanced the mortgage on their suburban ranch home in Topeka, Kansas. The couple wanted to take advantage of the low interest rates that were all the rage at the time.
http://jlne.ws/zhSAWb
**CN: An attorney with the National Consumer Law Center says record keeping on the part of the mortgage servicers is not to be trusted
U.S Economy Preferred by Investors in Global Poll on Markets
Bloomberg
Investors are turning increasingly bullish on U.S. markets as they declare its economy in better health than major rivals from Europe to Asia, according to the Bloomberg Global Poll.
http://jlne.ws/yKgR4F
Bank Tejarat Banned by U.S., EU in Move Stifling Iran Trade
BusinessWeek
The U.S. and European Union took steps to cut off from the international financial system Bank Tejarat, the last institution financing high-volume exports and imports between Iran and Europe.
http://jlne.ws/wNPuEe
Events
Treasury Futures: Using International Fixed-Income and Money Market Spreads
January 31, 2012
The IFM Instructs On Using Fixed Income And Money Market Spreads
http://jlne.ws/u7MgUK
National Association of Home Builders' Show
February 10, 2012
Special Session With Fed's Bernanke Open To All Registered Attendees
http://jlne.ws/tEcqjW
Retail Banking in Europe
March 13 and 14, 2012
Marketforce And The IEA’s 13th Annual Conference
http://jlne.ws/wNoXDO
Exchanges, Clearing Houses & MTFs
DTCC Names Mark Davies Vice President, Data Business Development
Press Release
NEW YORK & LONDON--(BUSINESS WIRE)-- The Depository Trust & Clearing Corporation (DTCC) announced today that it has named Mark Davies to the new position of vice president, Data Business Development, focusing on DTCC’s involvement in the Legal Entity Identifier (LEI) program in Europe.
http://jlne.ws/xiSlKD
Eurex and IFM announce joint educational initiative
Press Release
Eurex: Eurex Group and the Institute for Financial Markets (IFM) announced today that they have teamed up to offer a joint educational initiative. Both partners aim to bring IFM’s best-in-class derivatives education to Eurex Exchange members and potential clients as well as the general industry. One joint initiative will be the first-time offering of IFM’s well-respected courses in the form of webinars in English. A large subset of the webinars also will be available in Brazilian Portuguese. Members of the brokerage community will be involved to further extend customer outreach.
http://jlne.ws/y6EQPe
ELX Names Richard Jaycobs Chief Executive Officer
Marketwire
NEW YORK, NY--(Marketwire - Jan 20, 2012) - ELX Futures, L.P. (ELX), a leading electronic futures exchange, announced today that veteran futures industry executive Richard Jaycobs will succeed Neal Wolkoff as Chief Executive Officer of ELX.
http://jlne.ws/yxyLKt
Wolkoff Announces Plans to Depart ELX Effective April 30
Marketwire via Yahoo! Finance
NEW YORK, NY-- - Neal L. Wolkoff, Chief Executive Officer of ELX Futures, L.P. , today notified the ELX board of his resignation, effective April 30.
http://jlne.ws/yb1C87
CBOE Futures Exchange (CFE) to Launch Futures on Radar Logic 28-Day Real Estate
Press Release
http://jlne.ws/ybpaRd
GuavaTech Inc. Announces Presence in CME Group's Co-Location Facility
Press Release
Chicago January 25, 2012 – GuavaTech, Inc., a leading managed service provider specializing in customized IT solutions for proprietary trading firms, investment banks, hedge funds, broker/dealers, and FCM’s, today announced that it will begin offering proximity hosting and ultra-low latency connectivity solutions at the new CME Group data center located in Aurora, IL. CME Co-Location Services will launch live trading on January 29, 2012.
http://jlne.ws/AFqEEG
CME deal shows the problem with corporate tax breaks
Chicago Tribune
For several months, CME Group Inc., which owns the Chicago Mercantile Exchange and the Chicago Board of Trade, threatened to relocate outside of Illinois unless it received a specially tailored tax break from the state. The company got its wish when the Illinois Senate passed a bill last month that reduced the financial exchanges' tax bill by about $77 million.
http://jlne.ws/Al18Ah
NYSE Dream of Global Exchange Coming Apart on Derivatives Review
BusinessWeek
A decade-long march by market owners toward greater worldwide scope may be ending in Europe with antitrust regulators recommending against Deutsche Boerse AG's bid for NYSE Euronext.
http://jlne.ws/xiK4Ma
Firms & Banks
MF Global Clients May Lose in $700 Million Bankruptcy Fight
Kit Chellel - Bloomberg
MF Global Holding Ltd.'s clients may be the losers no matter who wins a $700 million dispute between bankruptcy administrators in London and New York that threatens the return of money locked in customer accounts.
http://jlne.ws/xJXvXz
Citigroup's Pandit Says Banks Have to Regain Public Trust
Bloomberg
Citigroup Inc. (C) Chief Executive Officer Vikram Pandit said banks need to start serving clients rather than themselves as the industry tries to rebuild public trust following the financial crisis.
http://jlne.ws/xfTZnI
Citigroup to Consider Further Cuts in Trading, Investment Bank
BusinessWeek
Citigroup Inc., the third-biggest U.S. bank, may make more spending cuts at its securities unit after an investment of almost $1 billion in the business last year failed to boost revenue.
http://jlne.ws/wGP6Ei
Barclays's Diamond Says Still Backs Universal Banking Model
BusinessWeek
Barclays Plc Chief Executive Officer Robert Diamond said he continues to believe in the "strength of the universal banking model" even as some regulators push lenders to split up businesses.
http://jlne.ws/zPlkGB
London Bankers Stay Put as Bonuses Wane
By JULIA WERDIGIER - NY Times
LONDON – The beginning of the year is usually a busy time for bankers and recruiters as many staffers wait to get their bonuses before setting off to a rival.
http://jlne.ws/y8Uybb
Morgan Stanley CEO Says Pay-Cut Complaints Would Be 'Naive'
BusinessWeek
Morgan Stanley Chairman and Chief Executive Officer James Gorman said employees understand why the investment bank had to cut pay, and those who don't grasp the reasoning need to adjust their attitude.
http://jlne.ws/xDaJLK
RBS Said to Be Nearing Sale of Hoare Govett Unit to Jefferies
BusinessWeek
Royal Bank of Scotland Group Plc, Britain's biggest state-owned lender, is nearing an agreement to sell its Hoare Govett corporate broking unit to Jefferies Group Inc., two people with knowledge of the talks said.
http://jlne.ws/wH9D4S
HSBC Seeks Buyer for Japan Retail Banking
BusinessWeek
HSBC Holdings Plc, Europe's largest bank, is seeking buyers for its Japanese consumer banking unit four years after starting the business, said three people familiar with the matter.
http://jlne.ws/yFcKtW
Cantor Fitzgerald & Co. Continues to Expand Its Credit Fixed Income Team
http://jlne.ws/xpDRub
Bank of America Mortgage Woes Lurk Behind Earnings
Forbes
Bank of America's (BAC) fourth-quarter earnings report showed the bank continuing to wrestle with mortgage-related headaches. First take, things look good. Bank of America?s mortgage banking unit earned $2.12 billion, versus an estimate of a $1.44 billion profit from Sandler O?Neill analyst Jeffrey Harte.
http://jlne.ws/xDVx3S
Regulators
Keith Smith Appointed Chairman of Los Angeles Branch Federal Reserve Board
Business Wire via Yahoo! Finance
The Federal Reserve Bank of San Francisco appointed Keith Smith chairman of the Los Angeles Branch board of directors, effective January 1, 2012.
http://jlne.ws/ymR9le
CFTC says customer-fund review comes up clean
Reuters via Yahoo! News
WASHINGTON (Reuters) - The futures regulator said on Wednesday that its spot check of major futures brokerages did not find any material breaches of protections for customer funds. The Commodity Futures Trading Commission conducted the sweep of the industry after the collapse of futures brokerage MF Global in late October.
http://jlne.ws/yfMezL
Global News
Swiss Regulator Steps Up Focus On Housing Market Boom -Survey
FOX Business
Switzerland's financial markets supervisor is stepping up its focus on the country's booming housing market to try and avoid a potential price bubble developing, it said Wednesday.
http://jlne.ws/xz8dPw
The Central Bank Of Myanmar Visits The Stock Exchange Of Thailand
Press Release
SET President Charamporn Jotikasthira welcomed an executive group of the Central Bank of Myanmar, led by Mr. Nay Aye – Deputy Governor of The Central Bank of Myanmar, on the occasion of visiting the SET’s office.
http://jlne.ws/xtwWBY
Brazil Rate Futures Yields Fall as Central Bank Signals Sub-10% Selic Rate
Bloomberg
Yields on Brazilian interest-rate futures contracts fell the most in four months after policy makers signaled they may cut the benchmark Selic rate to below 10 percent.
http://jlne.ws/xxRxoD
RBNZ Stays on Hold but Softens Rate Outlook
CNBC
New Zealand's central bank held its cash rate steady on Thursday, as expected, because of the European debt crisis and modest domestic demand, but added a dovish tone by softening its rate outlook.
http://jlne.ws/zpXPMB
Australian Core Inflation Quickens; Currency Gains as Rate-Cut Bets Pared
Bloomberg
Australia's core inflation rate accelerated above the middle of the central bank's 2 percent to 3 percent annual target range last quarter, prompting traders to pare bets on another interest-rate reduction next month.
http://jlne.ws/yZVGJD
Bank of England unanimously backed steady policy
Market Watch
FRANKFURT (MarketWatch) -- The Bank of England's nine-member Monetary Policy Committee unanimously backed the Jan. 12 decision to leave the central bank's key lending rate unchanged at 0.5% and to maintain its program of asset purchases at 275 billion pounds ($429.2 billion), according to minutes of the policy meeting released Wednesday.
http://jlne.ws/ABedy3
Czech central bank agrees on loan to IMF
Associated Press via Yahoo! News
The board of the Czech central bank has conditionally approved a loan to the International Monetary Fund as part of efforts to stabilize the European debt crisis.
http://jlne.ws/x1iTMB
Thai Central Bank Set To Cut Rates Further In Q2: Capital Economics
Nasdaq
http://jlne.ws/zlcIVN
Japan central bank downgrades growth forecast
Associated Press via Yahoo! News
Japan's central bank said Tuesday it expects the economy to shrink slightly during the fiscal year ending in March instead of expanding as it forecast earlier because of the overseas slowdown.
http://jlne.ws/wStgZy
India's Central Bank Lowers CRR To Infuse Liquidity
Nasdaq
http://jlne.ws/w5IN0S
Disclaimer: The John Lothian, Environmental Markets, JLN Metals, JLN Managed Futures, JLN Interest Rates, JLN Options and JLN FX newsletters and blogs and MarketsWiki are products of John J. Lothian & Company, Inc. The opinions expressed in these publications are strictly those of their respective editors. They are intended solely for informative purposes and are not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade in any commodities or securities herein named. Information is obtained from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Security futures are not suitable for all customers.
Futures and options trading involve risk. Past results are no indication of future performance.
Nothing on any John J. Lothian & Company site should be considered an endorsement by any sponsor of any web site or newsletter content.
Copyright 2011 John J. Lothian & Company, Inc. All Rights Reserved.
JLN Interest Rates - http://www.jlninterestrates.com
Conversation Starter
Deloitte Consumer Spending Index Ends 2011 on a Low Note; 2012 Outlook Suggests Contraction in Incomes, Future Spending
NEW YORK, Jan. 26, 2012 /PRNewswire/ -- Despite small improvements in three out of four components, the Deloitte Consumer Spending Index (Index) dipped slightly in December due to a decline in housing prices. The Index tracks consumer cash flow as an indicator of future consumer spending.
"Initial unemployment claims continued to decline in December, while real wages benefited from a decrease in energy prices," explained Carl Steidtmann, Deloitte's chief economist and author of the monthly Index. "This positive movement was not substantial enough to offset the continued pressure from the housing market, which has been the most significant drag on the Index for many months."
The Index, which comprises four components — tax burden, initial unemployment claims, real wages, and real home prices — fell to 1.86 from a reading of 1.93 the previous month.
"The New Year brings new demands on retailers," said Alison Paul, vice chairman and U.S. Retail & Distribution sector leader, Deloitte LLP. "In addition to a challenging economic climate, shifts in consumer behavior – from price consciousness to technology adoption – will force retailers to find new ways to remain relevant to their customers in 2012. Retailers should align talent, physical space, processes and technology in a way that moves the in-store environment from transactional to a complete and engaging brand experience."
Highlights of the Index include:
Tax Burden: The tax burden rose slightly to 11.09 percent as state and local governments increased taxes to cover budgetary shortfalls.
Initial Unemployment Claims: Claims moved lower in the most recent month to 396,250, falling below the 400,000 mark for the first time in seven months.
Real Wages: While down 2.1 percent from a year ago, real wages posted a small gain to $8.75 on falling energy prices.
Real Home Prices: Prices fell 5.72 percent from a year ago. Real home prices are now down to levels not seen since the middle of 2000.
Outlook for 2012
The ability for consumers to continue to spend at the rates seen in 2011 may be in question.
"Going forward, it is unlikely there will be another tax cut, and Social Security tax withholding may rise back to its previous level by March," said Steidtmann. "Another 150 basis point drop in savings is not likely, and while gas prices can always fall, the rising tensions in the Middle East would argue against such a drop."
Steidtmann contends that without income growth, spending will contract in a way that outpaces the decline in incomes.
About Deloitte's Retail & Distribution Practice
Deloitte is a leading presence in the retail and distribution industry, providing audit, consulting, enterprise risk management, financial advisory and tax services to 80 percent of the Fortune 500 retailers. With more than 1,400 professionals, Deloitte's Retail & Distribution practice delivers insights and solutions assisting retailers across all major subsectors including apparel, grocery, food and drug, wholesale and distribution and online address critical issues affecting their businesses. For more information about Deloitte's Retail & Distribution sector, please visit www.deloitte.com/us/retail-distribution.
As used in this document, "Deloitte" means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.
See the full Deloitte release here:
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Fed's Bernanke To Lead College Classes On Role Of Fed In Today's Economy
The Federal Reserve Board announced on Thursday that Chairman Ben S. Bernanke will deliver a series of lectures aimed at college students. Beginning on March 20, he will lead four classes on "The Federal Reserve and its Role in Today's Economy" as part of a course offered to undergraduates at the George Washington University School of Business. The class will feature a variety of speakers who will discuss central banking. Chairman Bernanke's lectures are scheduled for March 20, 22, 27 and 29 and will begin at 12:45 pm EDT.
Online viewing will be available to the public at www.ustream.tv/channel/federalreserve Leaving the Board. After the lectures, the Board will post transcripts and video recordings at www.federalreserve.gov.
-- Christine Nielsen
Lead Stories
Bernanke has finger on trigger for new bond buys
Reuters
The Federal Reserve has moved closer to embarking on a new round of its controversial money-pumping after the central bank and its chairman Ben Bernanke highlighted a grim outlook for the U.S. economy.
http://jlne.ws/wny4n3
FOMC statement from January 24-25 meeting
Reuters via Yahoo! News
WASHINGTON (Reuters) - Following is the Federal Open Market Committee's statement on interest rate policy issued at the close of its meeting on Wednesday: "Information received since the Federal Open Market Committee met in December suggests that the economy has been expanding moderately, notwithstanding some slowing in global growth.
http://jlne.ws/xXDxwd
The Fed acts without acting
The Economist
ONE truth that emerges clearly from the recent history of Federal Reserve monetary-policy action is that changing central bank policy goals is like steering the Titanic. You can see where the ship ought to go, and the captain himself might do his best to pilot it there, but the nature of the beast is that it simply won't turn on a dime. There are too many extremely cautious people influencing policy decisions and too much political and market scrutiny for that.
http://jlne.ws/y4s4aa
Fed on Hold Til Two Years After Mayan Apocalypse, Markets Cheer
Wall Street Journal Blogs
The Fed just extended its promise to keep rates low at least through late 2014.
http://jlne.ws/A4GoVq
**CN: This one was worth including just for the headline.
Bernanke shakes up central bank
By Robin Harding in Washington - Financial Times
Ben Bernanke’s road towards a more transparent US Federal Reserve was a long one, but he got there in the end. His tenure has been marked by momentous Fed meetings, and while this one may have lacked the drama of a weekend gathering to rescue the financial system, its long-term impact will not be less.
http://jlne.ws/zOT64i
The Fed experiments with imperfect tools
Mohamed El-Erian - Financial Times
Policy experimentation continues unabated in the US with the Federal Reserve launching on Wednesday a new initiative to influence market valuations and, through this, the outlook for the country’s economy. The Fed hopes to use greater transparency to mould expectations in a manner that promotes economic growth and price stability. But this new approach could also create confusion and even greater hesitancy on the part of healthy balance sheets to engage in productive investments.
http://jlne.ws/A3xM3q
Rate futures already say Fed rates low until 2014
Market Watch
NEW YORK (MarketWatch) -- Interest-rate futures traders have already shifted expectations for a rate increase from the Federal Reserve out to 2014, analysts said. That may dampen any market impact of a shift in policymakers' language in its policy statement released Wednesday after a two-day meeting.
http://jlne.ws/xlOsIF
Federal Reserve's transparency steps
Reuters via Yahoo! Finance
The Federal Reserve on Wednesday took a series of historic steps toward making the inner workings of its once-secretive rate-setting committee public.
http://jlne.ws/yN85Kt
Fed Rate Decision Welcome, but US Economy Shaky: CEOs
CNBC
The Federal Reserve's announcement on interest rates was welcomed by business leaders in Davos Thursday morning - but there is still nervousness about the future of the US economy.
http://jlne.ws/zdhEQs
Swonk, Broaddus on Fed Statement, QE3 Outlook
Bloomberg
Jan. 25 (Bloomberg) -- Diane Swonk, chief economist at Mesirow Financial Inc., and Alfred Broaddus, former president of the Federal Reserve Bank of Richmond, talk about today's Federal Open Market Committee policy statement and decision to specify a 2 percent goal for long-term inflation.
http://jlne.ws/wSPYAm
Geithner Says Obama Won’t Ask Him to Stay for Second Term
Bloomberg
Jan. 25 (Bloomberg) -- Treasury Secretary Timothy F. Geithner, the last remaining member of the Obama administration’s original economic team, said he doesn’t expect the president to ask him to stay in office if re-elected
http://jlne.ws/wnOZyI
Audit rips exec pay in bailouts
Detroit News
An audit released Tuesday criticized the U.S. Treasury Department's decision to allow firms that got large government bailouts to pay some executives cash salaries of more than $500,000 to keep them from quitting.
http://jlne.ws/zDmHb9
Taxpayers still owed $132.9B from bailout: report
Associated Press via Yahoo! Finance
A government watchdog says U.S. taxpayers are still owed $132.9 billion that companies haven't repaid from the financial bailout.
http://jlne.ws/x7ghhj
World Bank's action on Europe reflects fear of another global meltdown
Washington Post
The World Bank is moving to shore up economies in eastern Europe and central Asia as fear intensifies that problems in the euro area have begun spilling over to other parts of the world. The bank announced on Wednesday it would commit $27 billion to protect developing nations in the region from a western European crisis that has begun to undercut trade and investment.
http://jlne.ws/wzqkEL
Soros Promotes Crisis Plan for Europe
By ERIC PFANNER - NY Times
The billionaire investor George Soros said on Wednesday that it was possible Greece could be pushed out of the euro zone this year.
http://jlne.ws/xsziVf
Greek Debt Talks to Resume in Athens as Policy Makers Squabble
BusinessWeek
Talks on a debt swap to avert a Greek default resume today as international policy makers squabble over the mounting cost of the rescue.
http://jlne.ws/yUff34
Germany Approves Bank Bailout Bill
BY ANDREA THOMAS - WSJ
BERLIN—German lawmakers Thursday approved a bill to reactivate the country's bank bailout fund SoFFin to help banks weather the current debt crisis and improve their capital base.
http://jlne.ws/wWH9am
Illinois AG sues S&P over mortgage ratings
By Alejandra Cancino - Chicago Tribune
The nation's largest credit agency, Standard & Poor's, violated Illinois law when it assigned its highest credit rating to risky mortgage-backed investments in the years leading to the collapse of the housing market, Attorney General Lisa Madigan alleged Wednesday.
http://jlne.ws/ydp7RE
Old mortgages rise from the dead, haunt homeowners
In July 2009, Roy and Sheila Bowers refinanced the mortgage on their suburban ranch home in Topeka, Kansas. The couple wanted to take advantage of the low interest rates that were all the rage at the time.
http://jlne.ws/zhSAWb
**CN: An attorney with the National Consumer Law Center says record keeping on the part of the mortgage servicers is not to be trusted
U.S Economy Preferred by Investors in Global Poll on Markets
Bloomberg
Investors are turning increasingly bullish on U.S. markets as they declare its economy in better health than major rivals from Europe to Asia, according to the Bloomberg Global Poll.
http://jlne.ws/yKgR4F
Bank Tejarat Banned by U.S., EU in Move Stifling Iran Trade
BusinessWeek
The U.S. and European Union took steps to cut off from the international financial system Bank Tejarat, the last institution financing high-volume exports and imports between Iran and Europe.
http://jlne.ws/wNPuEe
Events
Treasury Futures: Using International Fixed-Income and Money Market Spreads
January 31, 2012
The IFM Instructs On Using Fixed Income And Money Market Spreads
http://jlne.ws/u7MgUK
National Association of Home Builders' Show
February 10, 2012
Special Session With Fed's Bernanke Open To All Registered Attendees
http://jlne.ws/tEcqjW
Retail Banking in Europe
March 13 and 14, 2012
Marketforce And The IEA’s 13th Annual Conference
http://jlne.ws/wNoXDO
Exchanges, Clearing Houses & MTFs
DTCC Names Mark Davies Vice President, Data Business Development
Press Release
NEW YORK & LONDON--(BUSINESS WIRE)-- The Depository Trust & Clearing Corporation (DTCC) announced today that it has named Mark Davies to the new position of vice president, Data Business Development, focusing on DTCC’s involvement in the Legal Entity Identifier (LEI) program in Europe.
http://jlne.ws/xiSlKD
Eurex and IFM announce joint educational initiative
Press Release
Eurex: Eurex Group and the Institute for Financial Markets (IFM) announced today that they have teamed up to offer a joint educational initiative. Both partners aim to bring IFM’s best-in-class derivatives education to Eurex Exchange members and potential clients as well as the general industry. One joint initiative will be the first-time offering of IFM’s well-respected courses in the form of webinars in English. A large subset of the webinars also will be available in Brazilian Portuguese. Members of the brokerage community will be involved to further extend customer outreach.
http://jlne.ws/y6EQPe
ELX Names Richard Jaycobs Chief Executive Officer
Marketwire
NEW YORK, NY--(Marketwire - Jan 20, 2012) - ELX Futures, L.P. (ELX), a leading electronic futures exchange, announced today that veteran futures industry executive Richard Jaycobs will succeed Neal Wolkoff as Chief Executive Officer of ELX.
http://jlne.ws/yxyLKt
Wolkoff Announces Plans to Depart ELX Effective April 30
Marketwire via Yahoo! Finance
NEW YORK, NY-- - Neal L. Wolkoff, Chief Executive Officer of ELX Futures, L.P. , today notified the ELX board of his resignation, effective April 30.
http://jlne.ws/yb1C87
CBOE Futures Exchange (CFE) to Launch Futures on Radar Logic 28-Day Real Estate
Press Release
http://jlne.ws/ybpaRd
GuavaTech Inc. Announces Presence in CME Group's Co-Location Facility
Press Release
Chicago January 25, 2012 – GuavaTech, Inc., a leading managed service provider specializing in customized IT solutions for proprietary trading firms, investment banks, hedge funds, broker/dealers, and FCM’s, today announced that it will begin offering proximity hosting and ultra-low latency connectivity solutions at the new CME Group data center located in Aurora, IL. CME Co-Location Services will launch live trading on January 29, 2012.
http://jlne.ws/AFqEEG
CME deal shows the problem with corporate tax breaks
Chicago Tribune
For several months, CME Group Inc., which owns the Chicago Mercantile Exchange and the Chicago Board of Trade, threatened to relocate outside of Illinois unless it received a specially tailored tax break from the state. The company got its wish when the Illinois Senate passed a bill last month that reduced the financial exchanges' tax bill by about $77 million.
http://jlne.ws/Al18Ah
NYSE Dream of Global Exchange Coming Apart on Derivatives Review
BusinessWeek
A decade-long march by market owners toward greater worldwide scope may be ending in Europe with antitrust regulators recommending against Deutsche Boerse AG's bid for NYSE Euronext.
http://jlne.ws/xiK4Ma
Firms & Banks
MF Global Clients May Lose in $700 Million Bankruptcy Fight
Kit Chellel - Bloomberg
MF Global Holding Ltd.'s clients may be the losers no matter who wins a $700 million dispute between bankruptcy administrators in London and New York that threatens the return of money locked in customer accounts.
http://jlne.ws/xJXvXz
Citigroup's Pandit Says Banks Have to Regain Public Trust
Bloomberg
Citigroup Inc. (C) Chief Executive Officer Vikram Pandit said banks need to start serving clients rather than themselves as the industry tries to rebuild public trust following the financial crisis.
http://jlne.ws/xfTZnI
Citigroup to Consider Further Cuts in Trading, Investment Bank
BusinessWeek
Citigroup Inc., the third-biggest U.S. bank, may make more spending cuts at its securities unit after an investment of almost $1 billion in the business last year failed to boost revenue.
http://jlne.ws/wGP6Ei
Barclays's Diamond Says Still Backs Universal Banking Model
BusinessWeek
Barclays Plc Chief Executive Officer Robert Diamond said he continues to believe in the "strength of the universal banking model" even as some regulators push lenders to split up businesses.
http://jlne.ws/zPlkGB
London Bankers Stay Put as Bonuses Wane
By JULIA WERDIGIER - NY Times
LONDON – The beginning of the year is usually a busy time for bankers and recruiters as many staffers wait to get their bonuses before setting off to a rival.
http://jlne.ws/y8Uybb
Morgan Stanley CEO Says Pay-Cut Complaints Would Be 'Naive'
BusinessWeek
Morgan Stanley Chairman and Chief Executive Officer James Gorman said employees understand why the investment bank had to cut pay, and those who don't grasp the reasoning need to adjust their attitude.
http://jlne.ws/xDaJLK
RBS Said to Be Nearing Sale of Hoare Govett Unit to Jefferies
BusinessWeek
Royal Bank of Scotland Group Plc, Britain's biggest state-owned lender, is nearing an agreement to sell its Hoare Govett corporate broking unit to Jefferies Group Inc., two people with knowledge of the talks said.
http://jlne.ws/wH9D4S
HSBC Seeks Buyer for Japan Retail Banking
BusinessWeek
HSBC Holdings Plc, Europe's largest bank, is seeking buyers for its Japanese consumer banking unit four years after starting the business, said three people familiar with the matter.
http://jlne.ws/yFcKtW
Cantor Fitzgerald & Co. Continues to Expand Its Credit Fixed Income Team
http://jlne.ws/xpDRub
Bank of America Mortgage Woes Lurk Behind Earnings
Forbes
Bank of America's (BAC) fourth-quarter earnings report showed the bank continuing to wrestle with mortgage-related headaches. First take, things look good. Bank of America?s mortgage banking unit earned $2.12 billion, versus an estimate of a $1.44 billion profit from Sandler O?Neill analyst Jeffrey Harte.
http://jlne.ws/xDVx3S
Regulators
Keith Smith Appointed Chairman of Los Angeles Branch Federal Reserve Board
Business Wire via Yahoo! Finance
The Federal Reserve Bank of San Francisco appointed Keith Smith chairman of the Los Angeles Branch board of directors, effective January 1, 2012.
http://jlne.ws/ymR9le
CFTC says customer-fund review comes up clean
Reuters via Yahoo! News
WASHINGTON (Reuters) - The futures regulator said on Wednesday that its spot check of major futures brokerages did not find any material breaches of protections for customer funds. The Commodity Futures Trading Commission conducted the sweep of the industry after the collapse of futures brokerage MF Global in late October.
http://jlne.ws/yfMezL
Global News
Swiss Regulator Steps Up Focus On Housing Market Boom -Survey
FOX Business
Switzerland's financial markets supervisor is stepping up its focus on the country's booming housing market to try and avoid a potential price bubble developing, it said Wednesday.
http://jlne.ws/xz8dPw
The Central Bank Of Myanmar Visits The Stock Exchange Of Thailand
Press Release
SET President Charamporn Jotikasthira welcomed an executive group of the Central Bank of Myanmar, led by Mr. Nay Aye – Deputy Governor of The Central Bank of Myanmar, on the occasion of visiting the SET’s office.
http://jlne.ws/xtwWBY
Brazil Rate Futures Yields Fall as Central Bank Signals Sub-10% Selic Rate
Bloomberg
Yields on Brazilian interest-rate futures contracts fell the most in four months after policy makers signaled they may cut the benchmark Selic rate to below 10 percent.
http://jlne.ws/xxRxoD
RBNZ Stays on Hold but Softens Rate Outlook
CNBC
New Zealand's central bank held its cash rate steady on Thursday, as expected, because of the European debt crisis and modest domestic demand, but added a dovish tone by softening its rate outlook.
http://jlne.ws/zpXPMB
Australian Core Inflation Quickens; Currency Gains as Rate-Cut Bets Pared
Bloomberg
Australia's core inflation rate accelerated above the middle of the central bank's 2 percent to 3 percent annual target range last quarter, prompting traders to pare bets on another interest-rate reduction next month.
http://jlne.ws/yZVGJD
Bank of England unanimously backed steady policy
Market Watch
FRANKFURT (MarketWatch) -- The Bank of England's nine-member Monetary Policy Committee unanimously backed the Jan. 12 decision to leave the central bank's key lending rate unchanged at 0.5% and to maintain its program of asset purchases at 275 billion pounds ($429.2 billion), according to minutes of the policy meeting released Wednesday.
http://jlne.ws/ABedy3
Czech central bank agrees on loan to IMF
Associated Press via Yahoo! News
The board of the Czech central bank has conditionally approved a loan to the International Monetary Fund as part of efforts to stabilize the European debt crisis.
http://jlne.ws/x1iTMB
Thai Central Bank Set To Cut Rates Further In Q2: Capital Economics
Nasdaq
http://jlne.ws/zlcIVN
Japan central bank downgrades growth forecast
Associated Press via Yahoo! News
Japan's central bank said Tuesday it expects the economy to shrink slightly during the fiscal year ending in March instead of expanding as it forecast earlier because of the overseas slowdown.
http://jlne.ws/wStgZy
India's Central Bank Lowers CRR To Infuse Liquidity
Nasdaq
http://jlne.ws/w5IN0S
Disclaimer: The John Lothian, Environmental Markets, JLN Metals, JLN Managed Futures, JLN Interest Rates, JLN Options and JLN FX newsletters and blogs and MarketsWiki are products of John J. Lothian & Company, Inc. The opinions expressed in these publications are strictly those of their respective editors. They are intended solely for informative purposes and are not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade in any commodities or securities herein named. Information is obtained from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Security futures are not suitable for all customers.
Futures and options trading involve risk. Past results are no indication of future performance.
Nothing on any John J. Lothian & Company site should be considered an endorsement by any sponsor of any web site or newsletter content.
Copyright 2011 John J. Lothian & Company, Inc. All Rights Reserved.
Rabu, 25 Januari 2012
Top Interest Rate Headlines 01-25-2012: Bernanke Says Fed Pondering Further Stimulus
Bernanke says Fed pondering further stimulus
Reuters
Federal Reserve Chairman Ben Bernanke said on Wednesday the central bank was ready to offer the economy additional stimulus after it announced interest rates would likely remain near zero until at least late 2014.
http://jlne.ws/z97Uic
Tim Geithner Won't Stay On If Obama Wins Second Term: Report
Huffington Post
Barack Obama won't ask Timothy Geithner to stay on as Treasury Secretary if the president wins reelection, Geithner told Bloomberg TV's Trish Regan Wednesday.
http://jlne.ws/wOaZwg
Bernanke says Fed pondering further stimulus
Yahoo! News
Federal Reserve Chairman Ben Bernanke said on Wednesday the central bank was ready to offer the economy additional stimulus after it announced interest rates would likely remain near zero until at least late 2014.
http://jlne.ws/z97Uic
CFTC Releases Results of Limited Reviews of Futures Commission Merchants
Press Release
The Commodity Futures Trading Commission (CFTC or Commission) today released findings of limited reviews of futures commission merchants (FCMs) to assess compliance with requirements to segregate customer funds pursuant to Section 4d of the Commodity Exchange Act (ACT). The limited reviews also covered the FCMs’ obligation to set aside in secured accounts funds deposited by customers for trading on foreign boards of trade under Section 4(b) of the Act and Part 30 of the Commission’s regulations. As of the review date for each FCM, all of the FCMs were in compliance with the segregation or Part 30 secured amount requirements.
http://jlne.ws/wlTODg
Merkel: Germany Ready to Transfer More Power to Europe
WSJ.com
German Chancellor Angela Merkel, sharply criticized for her government's prescriptions of austerity as a cure for the euro zone's sovereign-debt crisis, said labor-market reforms and greater European integration also were needed to correct flaws in the makeup of the common currency.
http://jlne.ws/xoohUi
Merkel says 'big rethink needed'
BBC
Germany's Chancellor Angela Merkel has told the World Economic Forum that a "big rethink" is needed in the eurozone within the global economy.
http://jlne.ws/xJy16Q
Federal Reserve Board and Federal Open Market Committee release economic projections from Jan 24-25 FOMC meeting
http://jlne.ws/zuXPrs
Barbara Rehm: Fed s Low-Rate Strategy May Come at a High Cost
American Banker
The central bank has held the federal funds rate near zero for over three years and intends to keep it there. Negative consequences are inevitable and policymakers ability to manage them far from certain.
http://jlne.ws/yURArv
Federal Open Market Committee Statement - Jan. 25, 2012
http://jlne.ws/wKabJg
Reuters
Federal Reserve Chairman Ben Bernanke said on Wednesday the central bank was ready to offer the economy additional stimulus after it announced interest rates would likely remain near zero until at least late 2014.
http://jlne.ws/z97Uic
Tim Geithner Won't Stay On If Obama Wins Second Term: Report
Huffington Post
Barack Obama won't ask Timothy Geithner to stay on as Treasury Secretary if the president wins reelection, Geithner told Bloomberg TV's Trish Regan Wednesday.
http://jlne.ws/wOaZwg
Bernanke says Fed pondering further stimulus
Yahoo! News
Federal Reserve Chairman Ben Bernanke said on Wednesday the central bank was ready to offer the economy additional stimulus after it announced interest rates would likely remain near zero until at least late 2014.
http://jlne.ws/z97Uic
CFTC Releases Results of Limited Reviews of Futures Commission Merchants
Press Release
The Commodity Futures Trading Commission (CFTC or Commission) today released findings of limited reviews of futures commission merchants (FCMs) to assess compliance with requirements to segregate customer funds pursuant to Section 4d of the Commodity Exchange Act (ACT). The limited reviews also covered the FCMs’ obligation to set aside in secured accounts funds deposited by customers for trading on foreign boards of trade under Section 4(b) of the Act and Part 30 of the Commission’s regulations. As of the review date for each FCM, all of the FCMs were in compliance with the segregation or Part 30 secured amount requirements.
http://jlne.ws/wlTODg
Merkel: Germany Ready to Transfer More Power to Europe
WSJ.com
German Chancellor Angela Merkel, sharply criticized for her government's prescriptions of austerity as a cure for the euro zone's sovereign-debt crisis, said labor-market reforms and greater European integration also were needed to correct flaws in the makeup of the common currency.
http://jlne.ws/xoohUi
Merkel says 'big rethink needed'
BBC
Germany's Chancellor Angela Merkel has told the World Economic Forum that a "big rethink" is needed in the eurozone within the global economy.
http://jlne.ws/xJy16Q
Federal Reserve Board and Federal Open Market Committee release economic projections from Jan 24-25 FOMC meeting
http://jlne.ws/zuXPrs
Barbara Rehm: Fed s Low-Rate Strategy May Come at a High Cost
American Banker
The central bank has held the federal funds rate near zero for over three years and intends to keep it there. Negative consequences are inevitable and policymakers ability to manage them far from certain.
http://jlne.ws/yURArv
Federal Open Market Committee Statement - Jan. 25, 2012
http://jlne.ws/wKabJg
Federal Open Market Committee Statement - Jan. 25, 2012
Press Release
Release Date: January 25, 2012
For immediate release
Information received since the Federal Open Market Committee met in December suggests that the economy has been expanding moderately, notwithstanding some slowing in global growth. While indicators point to some further improvement in overall labor market conditions, the unemployment rate remains elevated. Household spending has continued to advance, but growth in business fixed investment has slowed, and the housing sector remains depressed. Inflation has been subdued in recent months, and longer-term inflation expectations have remained stable.
Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee expects economic growth over coming quarters to be modest and consequently anticipates that the unemployment rate will decline only gradually toward levels that the Committee judges to be consistent with its dual mandate. Strains in global financial markets continue to pose significant downside risks to the economic outlook. The Committee also anticipates that over coming quarters, inflation will run at levels at or below those consistent with the Committee's dual mandate.
To support a stronger economic recovery and to help ensure that inflation, over time, is at levels consistent with the dual mandate, the Committee expects to maintain a highly accommodative stance for monetary policy. In particular, the Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that economic conditions--including low rates of resource utilization and a subdued outlook for inflation over the medium run--are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014.
The Committee also decided to continue its program to extend the average maturity of its holdings of securities as announced in September. The Committee is maintaining its existing policies of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction. The Committee will regularly review the size and composition of its securities holdings and is prepared to adjust those holdings as appropriate to promote a stronger economic recovery in a context of price stability.
Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; Elizabeth A. Duke; Dennis P. Lockhart; Sandra Pianalto; Sarah Bloom Raskin; Daniel K. Tarullo; John C. Williams; and Janet L. Yellen. Voting against the action was Jeffrey M. Lacker, who preferred to omit the description of the time period over which economic conditions are likely to warrant exceptionally low levels of the federal funds rate.
2012 Monetary Policy Releases
Last update: January 25, 2012
Release Date: January 25, 2012
For immediate release
Information received since the Federal Open Market Committee met in December suggests that the economy has been expanding moderately, notwithstanding some slowing in global growth. While indicators point to some further improvement in overall labor market conditions, the unemployment rate remains elevated. Household spending has continued to advance, but growth in business fixed investment has slowed, and the housing sector remains depressed. Inflation has been subdued in recent months, and longer-term inflation expectations have remained stable.
Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee expects economic growth over coming quarters to be modest and consequently anticipates that the unemployment rate will decline only gradually toward levels that the Committee judges to be consistent with its dual mandate. Strains in global financial markets continue to pose significant downside risks to the economic outlook. The Committee also anticipates that over coming quarters, inflation will run at levels at or below those consistent with the Committee's dual mandate.
To support a stronger economic recovery and to help ensure that inflation, over time, is at levels consistent with the dual mandate, the Committee expects to maintain a highly accommodative stance for monetary policy. In particular, the Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that economic conditions--including low rates of resource utilization and a subdued outlook for inflation over the medium run--are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014.
The Committee also decided to continue its program to extend the average maturity of its holdings of securities as announced in September. The Committee is maintaining its existing policies of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction. The Committee will regularly review the size and composition of its securities holdings and is prepared to adjust those holdings as appropriate to promote a stronger economic recovery in a context of price stability.
Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; Elizabeth A. Duke; Dennis P. Lockhart; Sandra Pianalto; Sarah Bloom Raskin; Daniel K. Tarullo; John C. Williams; and Janet L. Yellen. Voting against the action was Jeffrey M. Lacker, who preferred to omit the description of the time period over which economic conditions are likely to warrant exceptionally low levels of the federal funds rate.
2012 Monetary Policy Releases
Last update: January 25, 2012
Selasa, 24 Januari 2012
Top Interest Rate Headlines 01-24-12: CME Group Talks Interest Rate Highlights From 2011
[Video] CME Group's global head of interest rate products talks about highlights from 2011 http://t.co/zMGhrZGK
Corzine Is Sued Under Racketeering Law by MF Global’s Commodity Customers
By Linda Sandler - Bloomberg
Jon Corzine, MF Global Holdings Ltd.’s former chief executive officer, was sued under U.S. racketeering law by commodity customers alleging he and other executives “unlawfully” took money from their accounts and failed to segregate their money as the law requires.
http://jlne.ws/x9pXRG
Super-Rich Play Snow Polo as Igloo Agitators Heckle Davos Elite
BusinessWeek
Europe's rich and famous faced tough decisions as they assembled at a chic Swiss ski resort this weekend: whether to drink Taittinger or whisky-infused hot chocolate, and which piglet to back in the afternoon race.
http://jlne.ws/A7gnGH
EU's Barnier says will stick to bank capital plan
Reuters via Yahoo! News
LONDON (Reuters) - Michel Barnier, European Commissioner in charge of financial regulation, said on Monday that he would stick strictly to a timetable already agreed for implementing stricter Basel III bank capital requirements.
http://jlne.ws/wE5rNj
Bold thoughts needed to stem banker exodus
By Tom Braithwaite - Financial Times
Kenneth Griffin, the head of Citadel, has a pile of CVs equivalent to half the population of Pittsburgh. Some 150,000 potential recruits are in the hedge fund’s “talent database”, he revealed last week in a letter to investors.
http://jlne.ws/yP5bEL
European Parliament To Scrutinize Credit Rating Agencies' Work And Sovereign Debt Ratings
Press Release
http://jlne.ws/yrTXdC
Fannie, Freddie writedowns too costly: Regulator
Reuters
The regulator for Fannie Mae and Freddie Mac told lawmakers that forcing the two mortgage firms to write down loan principal would require more than $100 billion in fresh taxpayer funds.
http://jlne.ws/wJ6Dtq
Dealers frustrated by SG's refusal to clear CDS
By Christopher Whittall - IFR
LONDON, Jan 23 (IFR) - The refusal by Societe Generale to clear eligible credit default swaps through a central counterparty is frustrating some market participants.
http://jlne.ws/y52KJP
Pandit Pariah No More as U.S. Bankers Gain Ascendancy at Davos
Bloomberg
Citigroup Inc. (C) 's Vikram Pandit, leader of the U.S. bank that took the most government aid in the financial crisis and that has the worst stock performance over the past decade, is ready for a starring role at Davos.
http://jlne.ws/zdw4j1
JPMorgan Sued by John Hancock Over Mortgage Securities
Bloomberg
JPMorgan Chase & Co. was sued by Manulife Financial Corp.'s John Hancock Life Insurance unit, which accused the bank of fraud in connection with the sale of residential mortgage-backed securities.
http://jlne.ws/xvoljH
Corzine Is Sued Under Racketeering Law by MF Global’s Commodity Customers
By Linda Sandler - Bloomberg
Jon Corzine, MF Global Holdings Ltd.’s former chief executive officer, was sued under U.S. racketeering law by commodity customers alleging he and other executives “unlawfully” took money from their accounts and failed to segregate their money as the law requires.
http://jlne.ws/x9pXRG
Super-Rich Play Snow Polo as Igloo Agitators Heckle Davos Elite
BusinessWeek
Europe's rich and famous faced tough decisions as they assembled at a chic Swiss ski resort this weekend: whether to drink Taittinger or whisky-infused hot chocolate, and which piglet to back in the afternoon race.
http://jlne.ws/A7gnGH
EU's Barnier says will stick to bank capital plan
Reuters via Yahoo! News
LONDON (Reuters) - Michel Barnier, European Commissioner in charge of financial regulation, said on Monday that he would stick strictly to a timetable already agreed for implementing stricter Basel III bank capital requirements.
http://jlne.ws/wE5rNj
Bold thoughts needed to stem banker exodus
By Tom Braithwaite - Financial Times
Kenneth Griffin, the head of Citadel, has a pile of CVs equivalent to half the population of Pittsburgh. Some 150,000 potential recruits are in the hedge fund’s “talent database”, he revealed last week in a letter to investors.
http://jlne.ws/yP5bEL
European Parliament To Scrutinize Credit Rating Agencies' Work And Sovereign Debt Ratings
Press Release
http://jlne.ws/yrTXdC
Fannie, Freddie writedowns too costly: Regulator
Reuters
The regulator for Fannie Mae and Freddie Mac told lawmakers that forcing the two mortgage firms to write down loan principal would require more than $100 billion in fresh taxpayer funds.
http://jlne.ws/wJ6Dtq
Dealers frustrated by SG's refusal to clear CDS
By Christopher Whittall - IFR
LONDON, Jan 23 (IFR) - The refusal by Societe Generale to clear eligible credit default swaps through a central counterparty is frustrating some market participants.
http://jlne.ws/y52KJP
Pandit Pariah No More as U.S. Bankers Gain Ascendancy at Davos
Bloomberg
Citigroup Inc. (C) 's Vikram Pandit, leader of the U.S. bank that took the most government aid in the financial crisis and that has the worst stock performance over the past decade, is ready for a starring role at Davos.
http://jlne.ws/zdw4j1
JPMorgan Sued by John Hancock Over Mortgage Securities
Bloomberg
JPMorgan Chase & Co. was sued by Manulife Financial Corp.'s John Hancock Life Insurance unit, which accused the bank of fraud in connection with the sale of residential mortgage-backed securities.
http://jlne.ws/xvoljH
Senin, 23 Januari 2012
Top Interest Rate Headlines 01-23-2012: Europe Heads to Davos Surprising Doomsayers
Europe Heads to Davos Surprising Doomsayers
Bloomberg
European leaders heading to the home of Thomas Mann’s Magic Mountain sanatorium are surprising credit-ratings companies, and the economists who agree with them, as the consensus predicts another year of trauma for the euro area.
http://jlne.ws/zyHeUu
S&P Downgrades Eurozone Sovereign Debt
CME Group
Standard & Poor's announced that it had downgraded the long-term sovereign debt credit ratings of nine European countries on January 13, 2012. This action was predicated on the view that policy initiatives taken by European policymakers in recent weeks may be insufficient to fully address ongoing systemic stresses in the Eurozone. S&P further rated the outlook, of 14 of the 16 Eurozone sovereign entities as "negative."
http://jlne.ws/z7dngM
Big Banks Killed in 4Q Mortgage Results
American Banker
The big banks' mortgage woes keep piling up, in a backlog that is likely to drag down their profits — and a broader housing recovery — for the foreseeable future.
http://jlne.ws/y7K49F
Australia Economy Still Strong, but China Crucial: Rudd
CNBC
Despite soft economic data out of Australia in recent weeks, the country’s Foreign Minister and Former Prime Minister, Kevin Rudd, tells CNBC the economy remains on solid footing as a result of robust fundamentals and strong growth out of top trading partner China.
http://jlne.ws/yMP7AE
Chinese economy to see significant slowdown in 2012, Nouriel Roubini says
Financial Post
China’s economy will slow in 2012, prompting policy makers to reduce interest rates and loosen lending restrictions, said Nouriel Roubini, the economist who predicted the 2008 financial crisis.
http://jlne.ws/xNVPoy
IMF's Lagarde calls for larger 'firewall' in Europe
CNN Money
The director of the International Monetary Fund said Monday that Europe needs a stronger financial firewall to stop the spread of debt contagion in the eurozone.
http://jlne.ws/AF5JJ4
What’s behind Republican attacks on the Fed
MarketWatch
The Federal Reserve has been working for months on improving its communication with financial markets. But the central bank does not seem to speak the same language as one key group — Republican primary voters.
http://jlne.ws/z7vEt2
Fears Grow for Portuguese Economy
WSJ.com
Investors, economists and politicians are increasingly concerned that Portugal will need a second bailout as fears mount that it won't be able to return to markets for financing next year.
http://jlne.ws/wPOVUB
MarkitServ starts interest rate derivative trade data feed to DTCC repository
Press Release
MarkitSERV, the most widely used electronic trade processing service for OTC derivative transactions, today announced that it is now transmitting confirmed trade records to the Depository Trust and Clearing Corporation's (DTCC) new Global Trade Repository (GTR) for over-the-counter (OTC) interest rate derivatives.
http://jlne.ws/y5uCXV
Number of the Week: When Will Fed Raise Rates?
WSJ.com
The number of months the Federal Reserve has kept rates near zero. The Federal Reserve gives its latest signal next week on when it plans to raise rates from historic lows. The only thing we know for sure is that it won’t be any time soon.
http://jlne.ws/wKdaly
Economists see growth slowing, recession risk falling
USA Today
The U.S. economy's growth will slow this year after a blast of stronger growth in late 2011, leaving the 8.5% unemployment rate about where it is now on Election Day, according to USA TODAY's quarterly survey of economists.
http://jlne.ws/A4CFu7
MOODY'S: Odds Of A Greek Debt Default Disaster And Exit From The Euro Are On The Rise
Business Insider
Moody's downgraded five Greek covered bond transactions today, amid ongoing tensions over private sector involvement in an orderly default that needs to take place by late March.
http://jlne.ws/yQk1F6
Goldman: U.S. Data May Look Better Than They Are
Bloomberg
A decline in unemployment and pickup in manufacturing point to accelerating U.S. growth. Some economists say the numbers may not be as good as they look.
http://jlne.ws/yDjT6n
Bloomberg
European leaders heading to the home of Thomas Mann’s Magic Mountain sanatorium are surprising credit-ratings companies, and the economists who agree with them, as the consensus predicts another year of trauma for the euro area.
http://jlne.ws/zyHeUu
S&P Downgrades Eurozone Sovereign Debt
CME Group
Standard & Poor's announced that it had downgraded the long-term sovereign debt credit ratings of nine European countries on January 13, 2012. This action was predicated on the view that policy initiatives taken by European policymakers in recent weeks may be insufficient to fully address ongoing systemic stresses in the Eurozone. S&P further rated the outlook, of 14 of the 16 Eurozone sovereign entities as "negative."
http://jlne.ws/z7dngM
Big Banks Killed in 4Q Mortgage Results
American Banker
The big banks' mortgage woes keep piling up, in a backlog that is likely to drag down their profits — and a broader housing recovery — for the foreseeable future.
http://jlne.ws/y7K49F
Australia Economy Still Strong, but China Crucial: Rudd
CNBC
Despite soft economic data out of Australia in recent weeks, the country’s Foreign Minister and Former Prime Minister, Kevin Rudd, tells CNBC the economy remains on solid footing as a result of robust fundamentals and strong growth out of top trading partner China.
http://jlne.ws/yMP7AE
Chinese economy to see significant slowdown in 2012, Nouriel Roubini says
Financial Post
China’s economy will slow in 2012, prompting policy makers to reduce interest rates and loosen lending restrictions, said Nouriel Roubini, the economist who predicted the 2008 financial crisis.
http://jlne.ws/xNVPoy
IMF's Lagarde calls for larger 'firewall' in Europe
CNN Money
The director of the International Monetary Fund said Monday that Europe needs a stronger financial firewall to stop the spread of debt contagion in the eurozone.
http://jlne.ws/AF5JJ4
What’s behind Republican attacks on the Fed
MarketWatch
The Federal Reserve has been working for months on improving its communication with financial markets. But the central bank does not seem to speak the same language as one key group — Republican primary voters.
http://jlne.ws/z7vEt2
Fears Grow for Portuguese Economy
WSJ.com
Investors, economists and politicians are increasingly concerned that Portugal will need a second bailout as fears mount that it won't be able to return to markets for financing next year.
http://jlne.ws/wPOVUB
MarkitServ starts interest rate derivative trade data feed to DTCC repository
Press Release
MarkitSERV, the most widely used electronic trade processing service for OTC derivative transactions, today announced that it is now transmitting confirmed trade records to the Depository Trust and Clearing Corporation's (DTCC) new Global Trade Repository (GTR) for over-the-counter (OTC) interest rate derivatives.
http://jlne.ws/y5uCXV
Number of the Week: When Will Fed Raise Rates?
WSJ.com
The number of months the Federal Reserve has kept rates near zero. The Federal Reserve gives its latest signal next week on when it plans to raise rates from historic lows. The only thing we know for sure is that it won’t be any time soon.
http://jlne.ws/wKdaly
Economists see growth slowing, recession risk falling
USA Today
The U.S. economy's growth will slow this year after a blast of stronger growth in late 2011, leaving the 8.5% unemployment rate about where it is now on Election Day, according to USA TODAY's quarterly survey of economists.
http://jlne.ws/A4CFu7
MOODY'S: Odds Of A Greek Debt Default Disaster And Exit From The Euro Are On The Rise
Business Insider
Moody's downgraded five Greek covered bond transactions today, amid ongoing tensions over private sector involvement in an orderly default that needs to take place by late March.
http://jlne.ws/yQk1F6
Goldman: U.S. Data May Look Better Than They Are
Bloomberg
A decline in unemployment and pickup in manufacturing point to accelerating U.S. growth. Some economists say the numbers may not be as good as they look.
http://jlne.ws/yDjT6n
Jumat, 20 Januari 2012
Top Interest Rate Headlines 01-20-2012: Fed Details How It Will Release Rate Forecasts
Fed Details How It Will Release Rate Forecasts
http://jlne.ws/xzrEx4
Fed Hones Communications Strategy
http://jlne.ws/yC3Srg
Greece, creditors close in on debt cut deal
http://jlne.ws/AlkhiV
South African Reserve Bank Holds Repo Rate at 5.50%
http://jlne.ws/xFdSwJ
Chances of a recession this year dropping, according to chartered accountants
http://jlne.ws/wRqFy5
Euro Not in Doubt, Says E.U. Markets Chief
http://jlne.ws/ww8yxJ
Fed Details How It Will Release Rate Forecasts
http://jlne.ws/xzrEx4
Swiss SNB Jordan Plans To Keep, Defend CHF1.20 Floor Vs Euro
http://jlne.ws/y5c73l
CreditSuisse Beats Goldman Sachs for N.Y. Fed's AIG Bonds
http://jlne.ws/xhaH20
http://jlne.ws/xzrEx4
Fed Hones Communications Strategy
http://jlne.ws/yC3Srg
Greece, creditors close in on debt cut deal
http://jlne.ws/AlkhiV
South African Reserve Bank Holds Repo Rate at 5.50%
http://jlne.ws/xFdSwJ
Chances of a recession this year dropping, according to chartered accountants
http://jlne.ws/wRqFy5
Euro Not in Doubt, Says E.U. Markets Chief
http://jlne.ws/ww8yxJ
Fed Details How It Will Release Rate Forecasts
http://jlne.ws/xzrEx4
Swiss SNB Jordan Plans To Keep, Defend CHF1.20 Floor Vs Euro
http://jlne.ws/y5c73l
CreditSuisse Beats Goldman Sachs for N.Y. Fed's AIG Bonds
http://jlne.ws/xhaH20
ELX NAMES RICHARD JAYCOBS CHIEF EXECUTIVE OFFICER
New York, January 20, 2012 – ELX Futures, L.P. (ELX), a leading electronic futures exchange, announced today that veteran futures industry executive Richard Jaycobs will succeed Neal Wolkoff as Chief Executive Officer of ELX.
Mr. Jaycobs, a 25-year veteran of the futures and derivatives industry, has served as President of the Cantor Exchange, a CFTC-regulated exchange committed to providing the market with innovative products in entertainment, weather, and news events. Earlier, he served as CEO of the Chicago-based Clearing Corporation (formerly the Board of Trade Clearing Corporation), CEO of onExchange, and Managing Director at the New York Cotton Exchange.
ELX launched in July 2009 to establish a faster, more efficient, competitive alternative for global market participants trading future contracts. ELX’s founding firms include leading financial institutions, dealers, trading firms and a major electronic and voice broker and technology provider: Bank of America Merrill Lynch, BGC Partners, Barclays Capital, Breakwater/Peak6, Deutsche Bank, Citi, Morgan Stanley, Goldman Sachs, Credit Suisse, RBS, J.P. Morgan, and Getco.
Using BGC Partners’ proven eSpeed electronic trading platform, and focused on providing low-cost execution, competition and liquidity in the interest rate futures marketplace, ELX currently offers US Treasury Futures (2, 5, and 10-year notes and 30-year and ultra long-term bonds) and Eurodollar Futures. ELX enables market arbitrage, both outright and spread execution, and cash/futures basis trading through multiple front ends with an ultra-fast matching engine.
Mr. Jaycobs said, “ELX has firmly established a liquid market and a diverse customer base for interest rate futures, and I am excited about the challenge and opportunity to continue offering futures market participants a compelling fee structure, superior services and robust technology.”
###
About ELX Futures
ELX Futures, L.P. is a fully electronic exchange founded by leading global financial institutions with the goal of bringing the benefits of cost-efficiency, liquidity, market continuity and enhanced speed to all market participants. For information and news about ELX, visit www.elxfutures.com or email info@elxfutures.com. Clearing services are provided by the Options Clearing Corporation (OCC), the world’s largest equity derivatives clearing organization. For more information about OCC, visit www.theocc.com. ELX market data is available through Bloomberg, Thomson Reuters, CQG and BGC Market Data.
Mr. Jaycobs, a 25-year veteran of the futures and derivatives industry, has served as President of the Cantor Exchange, a CFTC-regulated exchange committed to providing the market with innovative products in entertainment, weather, and news events. Earlier, he served as CEO of the Chicago-based Clearing Corporation (formerly the Board of Trade Clearing Corporation), CEO of onExchange, and Managing Director at the New York Cotton Exchange.
ELX launched in July 2009 to establish a faster, more efficient, competitive alternative for global market participants trading future contracts. ELX’s founding firms include leading financial institutions, dealers, trading firms and a major electronic and voice broker and technology provider: Bank of America Merrill Lynch, BGC Partners, Barclays Capital, Breakwater/Peak6, Deutsche Bank, Citi, Morgan Stanley, Goldman Sachs, Credit Suisse, RBS, J.P. Morgan, and Getco.
Using BGC Partners’ proven eSpeed electronic trading platform, and focused on providing low-cost execution, competition and liquidity in the interest rate futures marketplace, ELX currently offers US Treasury Futures (2, 5, and 10-year notes and 30-year and ultra long-term bonds) and Eurodollar Futures. ELX enables market arbitrage, both outright and spread execution, and cash/futures basis trading through multiple front ends with an ultra-fast matching engine.
Mr. Jaycobs said, “ELX has firmly established a liquid market and a diverse customer base for interest rate futures, and I am excited about the challenge and opportunity to continue offering futures market participants a compelling fee structure, superior services and robust technology.”
###
About ELX Futures
ELX Futures, L.P. is a fully electronic exchange founded by leading global financial institutions with the goal of bringing the benefits of cost-efficiency, liquidity, market continuity and enhanced speed to all market participants. For information and news about ELX, visit www.elxfutures.com or email info@elxfutures.com. Clearing services are provided by the Options Clearing Corporation (OCC), the world’s largest equity derivatives clearing organization. For more information about OCC, visit www.theocc.com. ELX market data is available through Bloomberg, Thomson Reuters, CQG and BGC Market Data.
ELX CEO Wolkoff Announces Plans To Leave Exchange Apr. 30
WOLKOFF ANNOUNCES PLANS TO DEPART ELX EFFECTIVE APRIL 30
New York, January 20, 2011 – Neal L. Wolkoff, Chief Executive Officer of ELX Futures, L.P. (ELX), today notified the ELX board of his resignation, effective April 30.
ELX, a leading electronic futures exchange offering market competition in U.S. Treasury and Eurodollar futures contracts, launched on July 10, 2009 to establish a faster, more efficient competitive alternative for global market participants trading futures.
Wolkoff, who has been CEO of ELX since launch, previously served as chairman and CEO of the American Stock Exchange and was the Chief Operating Officer in a 20-year career at the New York Mercantile Exchange.
Wolkoff said, “ELX presented an exciting opportunity for me to guide strategy, tactics, and operations of a financial institution from before its launch and I am very proud of the inroads we have been able to achieve in providing a competitive market. At this point, I am ready for new challenges and opportunities.”
###
About ELX Futures
ELX Futures, L.P. is a fully electronic alternative exchange founded by leading global financial institutions with the goal of bringing the benefits of enhanced speed, liquidity and cost-efficiency to all market participants. For information and news about ELX, visit www.elxfutures.com or email us at info@elxfutures.com.
New York, January 20, 2011 – Neal L. Wolkoff, Chief Executive Officer of ELX Futures, L.P. (ELX), today notified the ELX board of his resignation, effective April 30.
ELX, a leading electronic futures exchange offering market competition in U.S. Treasury and Eurodollar futures contracts, launched on July 10, 2009 to establish a faster, more efficient competitive alternative for global market participants trading futures.
Wolkoff, who has been CEO of ELX since launch, previously served as chairman and CEO of the American Stock Exchange and was the Chief Operating Officer in a 20-year career at the New York Mercantile Exchange.
Wolkoff said, “ELX presented an exciting opportunity for me to guide strategy, tactics, and operations of a financial institution from before its launch and I am very proud of the inroads we have been able to achieve in providing a competitive market. At this point, I am ready for new challenges and opportunities.”
###
About ELX Futures
ELX Futures, L.P. is a fully electronic alternative exchange founded by leading global financial institutions with the goal of bringing the benefits of enhanced speed, liquidity and cost-efficiency to all market participants. For information and news about ELX, visit www.elxfutures.com or email us at info@elxfutures.com.
Kamis, 19 Januari 2012
January 19, 2012: EU's Bailout Fund Capacity Can Be Adjusted By Governors-Draft [NEWSLETTER]
January 19, 2012
JLN Interest Rates - http://www.jlninterestrates.com
Conversation Starters
Federal Reserve: Inflation Dashboard
By Cindy Ivanac-Lillig
Check out the updates to the Atlanta Fed's inflation dashboard. It visually depicts where inflation is in the context of a longer term trend. As you drill down into the component parts, you get a flavor for not only which direction the indicators are moving, but how similar indicators relate to one another.
See the Fed's Inflation Dashboard here.
----------------
Press Release: National Futures Association begins accepting registration applications from swap dealers and major swap participants
January 19, Chicago - National Futures Association (NFA) announced today that it has begun accepting applications from swap dealers (SDs) and major swap participants (MSPs) pursuant to the recent final registration rules and delegation of authority order that were approved by the Commodity Futures Trading Commission (CFTC) on January 11.
The CFTC's final rules require all SDs and MSPs to be registered with the Commission and become members of a registered futures association. NFA is currently the only such organization. Applying for registration will not be mandatory until the CFTC finalizes its rules defining SDs, MSPs and swaps and they become effective. However, persons who believe that they are SDs or MSPs may apply for registration before then.
The SDs and MSPs applying for registration will be granted provisional registration while the CFTC continues the process of finalizing rules defining compliance requirements under section 4s of the Commodity Exchange Act.
The CFTC has previously authorized NFA to conduct a full range of registration functions with regard to futures commission merchants, commodity pool operators, commodity trading advisors, introducing brokers, leverage transaction merchants, floor brokers, floor traders and retail foreign exchange dealers.
"Over the years, NFA has developed a comprehensive electronic online registration system," said NFA President Dan Roth, "and during the past few months we have enhanced the system to accommodate these two new registration categories."
NFA has developed a new section of its website (www.nfa.futures.org) to provide information and guidance to SDs and MSPs, and NFA will update its website over time to provide further regulatory and registration information.
Individuals can also direct their questions to NFA's Information Center at (312) 781-1410 or (800) 621-3570 between the hours of 8:00 a.m. and 5:00 p.m. CT, Monday through Friday.
NFA is the premier independent provider of innovative and efficient regulatory programs that safeguard the integrity of the futures markets.
**CN: Note: Edward Dasso, vice president of market regulation for the NFA, has talked with JLNIR about applications from swap dealers and major swap participants. Watch for his comments in an upcoming JLNIR video piece about the evolution of the interest rates markets.
-------------
Press Release: 2011 World Federation of Exchanges (WFE) Market Highlights: 2011 equity volumes remained stable despite a fall in market capitalization. Derivatives, bonds, ETFs, and securitized derivatives continued to grow strongly
Total turnover value remained stable in 2011 at USD 63 tn despite a sharp decrease of the global market capitalization (-13.6% at USD 47 tn). High volatility and global uncertainty created from the sovereign debt crisis affected volumes all year through and made August 2011 the most active month in terms of trading value, a highly unusual annual peak for markets.
Despite overall unfavorable conditions for primary markets in several regions, WFE members increased their total listings by 1.7% totaling 45 953 companies listed.
Total number of trades decreased by 6.4% at 112 tn. This trend combined with the stability of turnover value led to a small increase in the average size of transaction which was USD 8 700 in 2011.
The high volatility and lack of confidence that affected financial markets globally probably drove the needs of hedging as derivatives contracts traded grew by 8.9%.
WFE members continued to diversify their products range as other products such as bonds, ETFs, and securitized derivatives all had solid growth in 2011.
See the full WFE release here.
Lead Stories
EU's Bailout Fund Capacity Can Be Adjusted By Governors-Draft
Reuters
The combined capacity of the euro zone's permanent and temporary bailout funds will remain at 500 billion euros for now, but will be reviewed in March and may be raised by the permanent fund's board of governors once it is operational, according to a draft treaty obtained by Reuters on Thursday.
http://jlne.ws/xWcP7Q
ECB's Draghi in Confident Mood
Reuters
European Central Bank President Mario Draghi said Thursday he is "confident" that "the overall situation for the euro will look much better in 2012," as many euro-zone states address their fiscal and structural deficits.
http://jlne.ws/y4mJZQ
Eastern Europe May Need Funding Deal to Avert Credit Drought
BusinessWeek
Eastern Europe may require funds from the International Monetary Fund and other international lenders to pre-empt a banking crisis and a shortage of credit in the region's economies as western banks pare assets.
http://jlne.ws/yJ2Emu
Speech: CFTC Gensler testifies to Congress on Volker rule
Futures Magazine
http://jlne.ws/xmc69i
Volcker Rule Regulators Resist Lawmakers Calls to Scrap Proposal
Bloomberg
U.S. regulators, responding to criticism of their Volcker rule proposal, told lawmakers they will refine plans for the ban on banks' proprietary trading while resisting calls to scrap the measure and start over.
http://jlne.ws/yTUH5A
Fed seeks to allay Volcker rule concerns
By Shahien Nasiripour in Washington - Financial Times
The US Federal Reserve has sought to allay lawmakers’ fears of mass job losses and reduced market liquidity as a result of a proposed rule aimed at banning banks from trading for their own account.
http://jlne.ws/yNPKuj
Fed: Volcker rule complicates market liquidity
Market Watch
WASHINGTON (MarketWatch) -A top Federal Reserve official on Wednesday acknowledged that the distinction between prohibited profit-making speculative proprietary trading and permissible market-making, liquidity-injecting trades can be difficult to draw, all of which complicates the implementation of the Volcker Rule.
http://jlne.ws/Ah29eU
Fed Transcripts Underscore Government's Shortcomings
Forbes
Despite all its expertise and resources, the Fed failed to foresee the housing collapse. It is silly to believe that government can protect us from future systemic risk.
http://jlne.ws/AcDxL9
Fed pushes for government action to help revive housing
The Washington Times
Top Federal Reserve officials are prodding the White House and Congress to take more aggressive action to stop the free-fall in the housing market, warning that the U.S. economy will remain sluggish and vulnerable and will not fully recover until housing returns to better health.
http://jlne.ws/yQEwqQ
Fed Officials Open to Additional Easing as They Monitor Risks to Economy
Bloomberg via Yahoo! Finance
Federal Reserve officials are staying open to further monetary easing this year as they monitor risks that threaten to move the economy further away from their mandate for stable prices and full employment.
http://jlne.ws/wIWgEC
The Case for Quantitative Easing
The Motley Fool
It seems increasingly likely that the Fed will initiate another round of quantitative easing. Is this the right thing to do?
http://jlne.ws/yjB3Tn
Computer programmer from Federal Reserve Bank of New York facing charges he stole computer code valued at near $10 mln
CBS News
(CBS/AP/Reuters) NEW YORK - A computer programmer who worked at the Federal Reserve Bank of New York is facing charges he stole computer code valued at nearly $10 million and used for his own computer training business.
http://jlne.ws/AugYsP
IMF requests $500bn for bail-out loans
By Alan Beattie in Washington and Peter Spiegel in Brussels - Financial Times
The International Monetary Fund has asked its member countries for an extra $500bn in firepower to combat the world’s spreading fiscal emergencies, which it estimates will generate demand for bail-out loans totalling $1tn over the next two years.
http://jlne.ws/A5x1sI
Franc Test Looms for Jordan in Race to Replace Hildebrand
BusinessWeek
Thomas Jordan's first test as interim president of Switzerland's central bank will be to prove he can defend the four-month old cap on the franc as well as its chief architect did.
http://jlne.ws/wiqyL2
New Chief of S&P Defends Its Moves
BY JEANNETTE NEUMANN - WSJ
Doug Peterson, the new president of Standard & Poor's Ratings Services, defended the firm's downgrades of U.S. and European sovereign bonds, rebuffing criticism the ratings company had become more aggressive following the financial crisis.
http://jlne.ws/AyAWQs
US custodian banks hit by shift into cash
By Telis Demos and Dan McCrum in New York - Financial Times
Global custodian banks have adopted a defensive position as fund managers and large institutions shift into cash and ultra-safe assets, putting pressure on the banks’ ability to generate income.
http://jlne.ws/yYrdbh
World Bank warns on risk of global recession
WKBT La Crosse
The World Bank Wednesday slashed its 2012 growth forecasts for both emerging and developing economies from its estimates of only six months ago, and warned the world is on the cusp of a new global recession that could be as bad as the crisis four years ago.
http://jlne.ws/xkYuiS
Obama Said to Consider Nominating Summers as World Bank Chief
BusinessWeek
President Barack Obama may put his mark on the World Bank by nominating Lawrence Summers, his former National Economic Council director, to lead the bank when Robert Zoellick's term expires later this year, according to two people familiar with the matter.
http://jlne.ws/xXTAA7
In MF Global, JPMorgan again at center of a financial failure
By Carrick Mollenkamp, Lauren Tara LaCapra and Matthew Goldstein - Reuters
(Reuters) - In late October, as MF Global Holdings Ltd teetered toward bankruptcy, Jon Corzine phoned his close-knit circle of Wall Street friends for help. His firm, facing demands from customers and other firms for cash, needed to sell billions of dollars in securities to raise the money. As the week progressed, MF Global executives came to believe that JPMorgan Chase & Co., one of MF Global's primary bankers and a middleman moving that cash, was dragging its feet in forwarding the funds.
http://jlne.ws/yd2Tvg
MF Global Commodity Customers Must Be Paid First, CFTC Says
By Linda Sandler
Jan. 18 (Bloomberg) -- MF Global Inc. commodity customers must be paid before all other claimants, including the bankrupt parent company, according to the Commodity Futures Trading Commission. Court papers by the trustee for MF Global Holdings Ltd., Louis Freeh, contain “errors and misstatements of law” in arguing that commodity laws, which require that customers be “made whole” first, don’t apply to brokerage liquidations, the regulator said in a court filing today.
http://jlne.ws/AyGBGM
New Laws Possible In Wake of MF Global's Demise
By BEN PROTESS - NY Times
Lawmakers are considering new policies aimed at preventing a repeat of the MF Global debacle, in which the futures brokerage firm misused an estimated $1.2 billion in customer money as it collapsed.
http://jlne.ws/yWcatt
Foreign holdings of US Treasurys hits record high
Washington Examiner
MARTIN CRUTSINGER AP Economics Writer WASHINGTON Foreign demand for U.S. Treasury debt rose in November to the highest level ever, even as China trimmed its purchases for a second straight month. The Treasury Department says total foreign holdings increased 1.7 percent in November to $4.75 trillion.
http://jlne.ws/yjpfzU
U.S TIC Flows
International Business Times
The U.S Department of the Treasury released this morning the latest estimates of its Treasury International Capital Flows, where Net Long-term TIC flows increased to $48.6 billion in November, from a revised -$39.6 Billion in October.
http://jlne.ws/zHArIx
**CN: This represented a miss of median estimates of $50.0 for November.
Fannie Fees Fail to Offset Record Low Lending Rates: Mortgages
BusinessWeek
Ben S. Bernanke's success in pushing mortgage rates to record lows is enabling Congress to fund last month's payroll tax cut extension by siphoning money from Fannie Mae and Freddie Mac, while homebuyers still benefit from the cheapest borrowing costs in history.
http://jlne.ws/wM05Sp
Exchange-Traded Junk Funds Roil Bond Market as Retirees Jump In
BusinessWeek
Funds that give everyone from retirees to institutional money managers easier access to junk bonds are fueling the biggest price swings in more than two years after their buying power surged 10-fold.
http://jlne.ws/xv9cAP
Events
Fixed Income Markets 2012
January 24, 2012
Tabb Forum Looks At Changes Ahead And Staying Ahead In Fixed Incomes
http://jlne.ws/snQ3VO
RiskVal Demonstrates Live Eris Exchange Markets
January 25 - Online
Thirty minute webinar
http://jlne.ws/wXufot
Treasury Futures: Using International Fixed-Income and Money Market Spreads
January 31, 2012
The IFM Instructs On Using Fixed Income And Money Market Spreads
http://jlne.ws/u7MgUK
National Association of Home Builders' Show
February 10, 2012
Special Session With Fed's Bernanke Open To All Registered Attendees
http://jlne.ws/tEcqjW
Retail Banking in Europe
March 13 and 14, 2012
Marketforce And The IEA’s 13th Annual Conference
http://jlne.ws/wNoXDO
Economic News
January 2012 Business Outlook Survey - Indicators Suggest Continued Growth - Philadelphia Fed
Results from the Business Outlook Survey suggest that regional manufacturing activity continued to expand at a moderate pace in January. All of the broad indicators remained positive this month, and firms continued to report increases in employment. Firms polled reported higher input prices this month, with a notable share of firms reporting price increases for their own manufactured goods. The survey's broad indicators of future activity improved again this month.
http://jlne.ws/zUQntU
Jobless claims near 4-year low, inflation muted
Reuters via Yahoo! Finance
The number of Americans filing for new jobless benefits dropped to a near four-year low last week, pointing to some building up of momentum in the labor market and the economy.
http://jlne.ws/wu8sB3
U.S. Housing Starts Dropped More Than Forecast in December
BusinessWeek
Builders began work on fewer houses than forecast in December, capping the worst year on record for single-family home construction and signaling recovery in the industry will take time.
http://jlne.ws/x6xynV
Exchanges, Clearing Houses & MTFs
ERIS EXCHANGE TO DISTRIBUTE MARKET DATA THROUGH CME GROUP
CHICAGO, January 19, 2012 – Eris Exchange, a US-based futures exchange announced today they have reached an agreement to distribute market data from the Eris SwapBookTM electronic trading platform through the CME Market Data Platform, commencing in March 2012. Distributing market data for its innovative Interest Rate Swap Futures contract through CME Group provides Eris Exchange access to hundreds of thousands of subscribers in 150 countries via CME Group’s eleven global telecommunications hubs.
http://jlne.ws/wKxHn1
NYSE Euronext Named Workplace Leader in Personal Finance Education
Business Wire
NEW YORK--(BUSINESS WIRE)--NYSE Euronext (NYX) is one of nine U.S. organizations that have been honored with the first award for excellence in workplace financial education, which recognizes innovative programs that teach employees how to make better personal financial decisions.
http://jlne.ws/ADbKf6
Firms & Banks
TeraExchange Appoints Former Fannie/Freddie Regulator Martha "Marti" Tirinnanzi to Head Washington, D.C. Office
SUMMIT, N.J. & WASHINGTON, Jan. 19, 2012 -- /PRNewswire/ -- TeraExchange (www.TeraExchange.com), an independent, transparent marketplace for swaps and other OTC cleared derivatives scheduled to launch in Q1, appointed Marti Tirinnanzi as Senior Vice President of Business Development and head of the firm's Washington, D.C. office.
http://jlne.ws/zdqkxa
RBS Says Former Singapore Trader Sought to Manipulate Libor
BusinessWeek
Royal Bank of Scotland Group Plc said it did nothing wrong when it fired a former Singapore trader because he sought to manipulate London interbank offered rates to boost his own profits.
http://jlne.ws/xfbR2o
Bank of America reverses loss and earns $2 billion
Associated Press/USA Today
Bank of America made $2 billion in the last three months of last year, reversing a loss from a year earlier. It offset legal expenses over mortgages and losses in its investment banking business by selling debt and its stake in a Chinese bank.
http://jlne.ws/wXMHL4
Regulators
Federal Reserve Bank appoints Barrera
San Antonio Express-News
Federal Reserve Bank appoints Barrera express-news Copyright 2012 express-news. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Published 10:46 a.m., Tuesday, January 10, 2012 Accion Texas Inc. President and CEO Janie Barrera has been appointed to the board of the Federal Reserve Bank of Dallas' San Antonio branch.
http://jlne.ws/wIK5IR
Federal Reserve Board Names Jon Faust Special Adviser
Nasdaq
http://jlne.ws/w4Nz5O
Global News
France to Sell Up to EU9.5 Billion in Debt After Losing AAA
BusinessWeek
France will seek to raise as much as 9.5 billion euros ($12.8 billion) today in its first sale of medium and long-term debt after it lost the top credit rating at Standard & Poor's.
http://jlne.ws/Aitf3p
Chinese Officials Said to Weigh Easing Constraints on Banks
BusinessWeek
China is allowing the nation's five biggest banks to increase first-quarter lending and weighing a plan to relax capital requirements as economic growth cools.
http://jlne.ws/AoncRf
Brazil Cuts Interest Rate to 10.5% to Shield Economy From European Crisis
Bloomberg
Brazil's central bank cut borrowing costs by half a point for a fourth straight policy meeting, continuing a cycle of monetary easing it began in August to shield the world's second-largest emerging market from the European debt crisis.
http://jlne.ws/yT6AUL
Australia Jobs Fall in December, Zero Growth for 2011
CNBC
Australian employment suffered a surprise fall of 29,300 jobs in December for a subdued end to a year that saw zero jobs growth, adding to the case for further cuts in interest rates and knocking the local dollar lower.
http://jlne.ws/y64qdU
Australia Home-Loan Approvals Gain in November on Rate Cut
BusinessWeek
Australian home-loan approvals rose in November for an eighth straight month as buyers responded to the central bank's first interest-rate reduction in two years.
http://jlne.ws/A1qGhd
Bank of Korea Chief Kim Says Rates Still 'Accommodative'
BusinessWeek
Bank of Korea Governor Kim Choong Soo said that South Korea's interest rates are still below policy makers' desired level and that discrepancy cannot be left for long.
http://jlne.ws/AgtepK
Disclaimer: The John Lothian, Environmental Markets, JLN Metals, JLN Managed Futures, JLN Interest Rates, JLN Options and JLN FX newsletters and blogs and MarketsWiki are products of John J. Lothian & Company, Inc. The opinions expressed in these publications are strictly those of their respective editors. They are intended solely for informative purposes and are not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade in any commodities or securities herein named. Information is obtained from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Security futures are not suitable for all customers.
Futures and options trading involve risk. Past results are no indication of future performance.
Nothing on any John J. Lothian & Company site should be considered an endorsement by any sponsor of any web site or newsletter content.
Copyright 2011 John J. Lothian & Company, Inc. All Rights Reserved.
JLN Interest Rates - http://www.jlninterestrates.com
Conversation Starters
Federal Reserve: Inflation Dashboard
By Cindy Ivanac-Lillig
Check out the updates to the Atlanta Fed's inflation dashboard. It visually depicts where inflation is in the context of a longer term trend. As you drill down into the component parts, you get a flavor for not only which direction the indicators are moving, but how similar indicators relate to one another.
See the Fed's Inflation Dashboard here.
----------------
Press Release: National Futures Association begins accepting registration applications from swap dealers and major swap participants
January 19, Chicago - National Futures Association (NFA) announced today that it has begun accepting applications from swap dealers (SDs) and major swap participants (MSPs) pursuant to the recent final registration rules and delegation of authority order that were approved by the Commodity Futures Trading Commission (CFTC) on January 11.
The CFTC's final rules require all SDs and MSPs to be registered with the Commission and become members of a registered futures association. NFA is currently the only such organization. Applying for registration will not be mandatory until the CFTC finalizes its rules defining SDs, MSPs and swaps and they become effective. However, persons who believe that they are SDs or MSPs may apply for registration before then.
The SDs and MSPs applying for registration will be granted provisional registration while the CFTC continues the process of finalizing rules defining compliance requirements under section 4s of the Commodity Exchange Act.
The CFTC has previously authorized NFA to conduct a full range of registration functions with regard to futures commission merchants, commodity pool operators, commodity trading advisors, introducing brokers, leverage transaction merchants, floor brokers, floor traders and retail foreign exchange dealers.
"Over the years, NFA has developed a comprehensive electronic online registration system," said NFA President Dan Roth, "and during the past few months we have enhanced the system to accommodate these two new registration categories."
NFA has developed a new section of its website (www.nfa.futures.org) to provide information and guidance to SDs and MSPs, and NFA will update its website over time to provide further regulatory and registration information.
Individuals can also direct their questions to NFA's Information Center at (312) 781-1410 or (800) 621-3570 between the hours of 8:00 a.m. and 5:00 p.m. CT, Monday through Friday.
NFA is the premier independent provider of innovative and efficient regulatory programs that safeguard the integrity of the futures markets.
**CN: Note: Edward Dasso, vice president of market regulation for the NFA, has talked with JLNIR about applications from swap dealers and major swap participants. Watch for his comments in an upcoming JLNIR video piece about the evolution of the interest rates markets.
-------------
Press Release: 2011 World Federation of Exchanges (WFE) Market Highlights: 2011 equity volumes remained stable despite a fall in market capitalization. Derivatives, bonds, ETFs, and securitized derivatives continued to grow strongly
Total turnover value remained stable in 2011 at USD 63 tn despite a sharp decrease of the global market capitalization (-13.6% at USD 47 tn). High volatility and global uncertainty created from the sovereign debt crisis affected volumes all year through and made August 2011 the most active month in terms of trading value, a highly unusual annual peak for markets.
Despite overall unfavorable conditions for primary markets in several regions, WFE members increased their total listings by 1.7% totaling 45 953 companies listed.
Total number of trades decreased by 6.4% at 112 tn. This trend combined with the stability of turnover value led to a small increase in the average size of transaction which was USD 8 700 in 2011.
The high volatility and lack of confidence that affected financial markets globally probably drove the needs of hedging as derivatives contracts traded grew by 8.9%.
WFE members continued to diversify their products range as other products such as bonds, ETFs, and securitized derivatives all had solid growth in 2011.
See the full WFE release here.
Lead Stories
EU's Bailout Fund Capacity Can Be Adjusted By Governors-Draft
Reuters
The combined capacity of the euro zone's permanent and temporary bailout funds will remain at 500 billion euros for now, but will be reviewed in March and may be raised by the permanent fund's board of governors once it is operational, according to a draft treaty obtained by Reuters on Thursday.
http://jlne.ws/xWcP7Q
ECB's Draghi in Confident Mood
Reuters
European Central Bank President Mario Draghi said Thursday he is "confident" that "the overall situation for the euro will look much better in 2012," as many euro-zone states address their fiscal and structural deficits.
http://jlne.ws/y4mJZQ
Eastern Europe May Need Funding Deal to Avert Credit Drought
BusinessWeek
Eastern Europe may require funds from the International Monetary Fund and other international lenders to pre-empt a banking crisis and a shortage of credit in the region's economies as western banks pare assets.
http://jlne.ws/yJ2Emu
Speech: CFTC Gensler testifies to Congress on Volker rule
Futures Magazine
http://jlne.ws/xmc69i
Volcker Rule Regulators Resist Lawmakers Calls to Scrap Proposal
Bloomberg
U.S. regulators, responding to criticism of their Volcker rule proposal, told lawmakers they will refine plans for the ban on banks' proprietary trading while resisting calls to scrap the measure and start over.
http://jlne.ws/yTUH5A
Fed seeks to allay Volcker rule concerns
By Shahien Nasiripour in Washington - Financial Times
The US Federal Reserve has sought to allay lawmakers’ fears of mass job losses and reduced market liquidity as a result of a proposed rule aimed at banning banks from trading for their own account.
http://jlne.ws/yNPKuj
Fed: Volcker rule complicates market liquidity
Market Watch
WASHINGTON (MarketWatch) -A top Federal Reserve official on Wednesday acknowledged that the distinction between prohibited profit-making speculative proprietary trading and permissible market-making, liquidity-injecting trades can be difficult to draw, all of which complicates the implementation of the Volcker Rule.
http://jlne.ws/Ah29eU
Fed Transcripts Underscore Government's Shortcomings
Forbes
Despite all its expertise and resources, the Fed failed to foresee the housing collapse. It is silly to believe that government can protect us from future systemic risk.
http://jlne.ws/AcDxL9
Fed pushes for government action to help revive housing
The Washington Times
Top Federal Reserve officials are prodding the White House and Congress to take more aggressive action to stop the free-fall in the housing market, warning that the U.S. economy will remain sluggish and vulnerable and will not fully recover until housing returns to better health.
http://jlne.ws/yQEwqQ
Fed Officials Open to Additional Easing as They Monitor Risks to Economy
Bloomberg via Yahoo! Finance
Federal Reserve officials are staying open to further monetary easing this year as they monitor risks that threaten to move the economy further away from their mandate for stable prices and full employment.
http://jlne.ws/wIWgEC
The Case for Quantitative Easing
The Motley Fool
It seems increasingly likely that the Fed will initiate another round of quantitative easing. Is this the right thing to do?
http://jlne.ws/yjB3Tn
Computer programmer from Federal Reserve Bank of New York facing charges he stole computer code valued at near $10 mln
CBS News
(CBS/AP/Reuters) NEW YORK - A computer programmer who worked at the Federal Reserve Bank of New York is facing charges he stole computer code valued at nearly $10 million and used for his own computer training business.
http://jlne.ws/AugYsP
IMF requests $500bn for bail-out loans
By Alan Beattie in Washington and Peter Spiegel in Brussels - Financial Times
The International Monetary Fund has asked its member countries for an extra $500bn in firepower to combat the world’s spreading fiscal emergencies, which it estimates will generate demand for bail-out loans totalling $1tn over the next two years.
http://jlne.ws/A5x1sI
Franc Test Looms for Jordan in Race to Replace Hildebrand
BusinessWeek
Thomas Jordan's first test as interim president of Switzerland's central bank will be to prove he can defend the four-month old cap on the franc as well as its chief architect did.
http://jlne.ws/wiqyL2
New Chief of S&P Defends Its Moves
BY JEANNETTE NEUMANN - WSJ
Doug Peterson, the new president of Standard & Poor's Ratings Services, defended the firm's downgrades of U.S. and European sovereign bonds, rebuffing criticism the ratings company had become more aggressive following the financial crisis.
http://jlne.ws/AyAWQs
US custodian banks hit by shift into cash
By Telis Demos and Dan McCrum in New York - Financial Times
Global custodian banks have adopted a defensive position as fund managers and large institutions shift into cash and ultra-safe assets, putting pressure on the banks’ ability to generate income.
http://jlne.ws/yYrdbh
World Bank warns on risk of global recession
WKBT La Crosse
The World Bank Wednesday slashed its 2012 growth forecasts for both emerging and developing economies from its estimates of only six months ago, and warned the world is on the cusp of a new global recession that could be as bad as the crisis four years ago.
http://jlne.ws/xkYuiS
Obama Said to Consider Nominating Summers as World Bank Chief
BusinessWeek
President Barack Obama may put his mark on the World Bank by nominating Lawrence Summers, his former National Economic Council director, to lead the bank when Robert Zoellick's term expires later this year, according to two people familiar with the matter.
http://jlne.ws/xXTAA7
In MF Global, JPMorgan again at center of a financial failure
By Carrick Mollenkamp, Lauren Tara LaCapra and Matthew Goldstein - Reuters
(Reuters) - In late October, as MF Global Holdings Ltd teetered toward bankruptcy, Jon Corzine phoned his close-knit circle of Wall Street friends for help. His firm, facing demands from customers and other firms for cash, needed to sell billions of dollars in securities to raise the money. As the week progressed, MF Global executives came to believe that JPMorgan Chase & Co., one of MF Global's primary bankers and a middleman moving that cash, was dragging its feet in forwarding the funds.
http://jlne.ws/yd2Tvg
MF Global Commodity Customers Must Be Paid First, CFTC Says
By Linda Sandler
Jan. 18 (Bloomberg) -- MF Global Inc. commodity customers must be paid before all other claimants, including the bankrupt parent company, according to the Commodity Futures Trading Commission. Court papers by the trustee for MF Global Holdings Ltd., Louis Freeh, contain “errors and misstatements of law” in arguing that commodity laws, which require that customers be “made whole” first, don’t apply to brokerage liquidations, the regulator said in a court filing today.
http://jlne.ws/AyGBGM
New Laws Possible In Wake of MF Global's Demise
By BEN PROTESS - NY Times
Lawmakers are considering new policies aimed at preventing a repeat of the MF Global debacle, in which the futures brokerage firm misused an estimated $1.2 billion in customer money as it collapsed.
http://jlne.ws/yWcatt
Foreign holdings of US Treasurys hits record high
Washington Examiner
MARTIN CRUTSINGER AP Economics Writer WASHINGTON Foreign demand for U.S. Treasury debt rose in November to the highest level ever, even as China trimmed its purchases for a second straight month. The Treasury Department says total foreign holdings increased 1.7 percent in November to $4.75 trillion.
http://jlne.ws/yjpfzU
U.S TIC Flows
International Business Times
The U.S Department of the Treasury released this morning the latest estimates of its Treasury International Capital Flows, where Net Long-term TIC flows increased to $48.6 billion in November, from a revised -$39.6 Billion in October.
http://jlne.ws/zHArIx
**CN: This represented a miss of median estimates of $50.0 for November.
Fannie Fees Fail to Offset Record Low Lending Rates: Mortgages
BusinessWeek
Ben S. Bernanke's success in pushing mortgage rates to record lows is enabling Congress to fund last month's payroll tax cut extension by siphoning money from Fannie Mae and Freddie Mac, while homebuyers still benefit from the cheapest borrowing costs in history.
http://jlne.ws/wM05Sp
Exchange-Traded Junk Funds Roil Bond Market as Retirees Jump In
BusinessWeek
Funds that give everyone from retirees to institutional money managers easier access to junk bonds are fueling the biggest price swings in more than two years after their buying power surged 10-fold.
http://jlne.ws/xv9cAP
Events
Fixed Income Markets 2012
January 24, 2012
Tabb Forum Looks At Changes Ahead And Staying Ahead In Fixed Incomes
http://jlne.ws/snQ3VO
RiskVal Demonstrates Live Eris Exchange Markets
January 25 - Online
Thirty minute webinar
http://jlne.ws/wXufot
Treasury Futures: Using International Fixed-Income and Money Market Spreads
January 31, 2012
The IFM Instructs On Using Fixed Income And Money Market Spreads
http://jlne.ws/u7MgUK
National Association of Home Builders' Show
February 10, 2012
Special Session With Fed's Bernanke Open To All Registered Attendees
http://jlne.ws/tEcqjW
Retail Banking in Europe
March 13 and 14, 2012
Marketforce And The IEA’s 13th Annual Conference
http://jlne.ws/wNoXDO
Economic News
January 2012 Business Outlook Survey - Indicators Suggest Continued Growth - Philadelphia Fed
Results from the Business Outlook Survey suggest that regional manufacturing activity continued to expand at a moderate pace in January. All of the broad indicators remained positive this month, and firms continued to report increases in employment. Firms polled reported higher input prices this month, with a notable share of firms reporting price increases for their own manufactured goods. The survey's broad indicators of future activity improved again this month.
http://jlne.ws/zUQntU
Jobless claims near 4-year low, inflation muted
Reuters via Yahoo! Finance
The number of Americans filing for new jobless benefits dropped to a near four-year low last week, pointing to some building up of momentum in the labor market and the economy.
http://jlne.ws/wu8sB3
U.S. Housing Starts Dropped More Than Forecast in December
BusinessWeek
Builders began work on fewer houses than forecast in December, capping the worst year on record for single-family home construction and signaling recovery in the industry will take time.
http://jlne.ws/x6xynV
Exchanges, Clearing Houses & MTFs
ERIS EXCHANGE TO DISTRIBUTE MARKET DATA THROUGH CME GROUP
CHICAGO, January 19, 2012 – Eris Exchange, a US-based futures exchange announced today they have reached an agreement to distribute market data from the Eris SwapBookTM electronic trading platform through the CME Market Data Platform, commencing in March 2012. Distributing market data for its innovative Interest Rate Swap Futures contract through CME Group provides Eris Exchange access to hundreds of thousands of subscribers in 150 countries via CME Group’s eleven global telecommunications hubs.
http://jlne.ws/wKxHn1
NYSE Euronext Named Workplace Leader in Personal Finance Education
Business Wire
NEW YORK--(BUSINESS WIRE)--NYSE Euronext (NYX) is one of nine U.S. organizations that have been honored with the first award for excellence in workplace financial education, which recognizes innovative programs that teach employees how to make better personal financial decisions.
http://jlne.ws/ADbKf6
Firms & Banks
TeraExchange Appoints Former Fannie/Freddie Regulator Martha "Marti" Tirinnanzi to Head Washington, D.C. Office
SUMMIT, N.J. & WASHINGTON, Jan. 19, 2012 -- /PRNewswire/ -- TeraExchange (www.TeraExchange.com), an independent, transparent marketplace for swaps and other OTC cleared derivatives scheduled to launch in Q1, appointed Marti Tirinnanzi as Senior Vice President of Business Development and head of the firm's Washington, D.C. office.
http://jlne.ws/zdqkxa
RBS Says Former Singapore Trader Sought to Manipulate Libor
BusinessWeek
Royal Bank of Scotland Group Plc said it did nothing wrong when it fired a former Singapore trader because he sought to manipulate London interbank offered rates to boost his own profits.
http://jlne.ws/xfbR2o
Bank of America reverses loss and earns $2 billion
Associated Press/USA Today
Bank of America made $2 billion in the last three months of last year, reversing a loss from a year earlier. It offset legal expenses over mortgages and losses in its investment banking business by selling debt and its stake in a Chinese bank.
http://jlne.ws/wXMHL4
Regulators
Federal Reserve Bank appoints Barrera
San Antonio Express-News
Federal Reserve Bank appoints Barrera express-news Copyright 2012 express-news. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Published 10:46 a.m., Tuesday, January 10, 2012 Accion Texas Inc. President and CEO Janie Barrera has been appointed to the board of the Federal Reserve Bank of Dallas' San Antonio branch.
http://jlne.ws/wIK5IR
Federal Reserve Board Names Jon Faust Special Adviser
Nasdaq
http://jlne.ws/w4Nz5O
Global News
France to Sell Up to EU9.5 Billion in Debt After Losing AAA
BusinessWeek
France will seek to raise as much as 9.5 billion euros ($12.8 billion) today in its first sale of medium and long-term debt after it lost the top credit rating at Standard & Poor's.
http://jlne.ws/Aitf3p
Chinese Officials Said to Weigh Easing Constraints on Banks
BusinessWeek
China is allowing the nation's five biggest banks to increase first-quarter lending and weighing a plan to relax capital requirements as economic growth cools.
http://jlne.ws/AoncRf
Brazil Cuts Interest Rate to 10.5% to Shield Economy From European Crisis
Bloomberg
Brazil's central bank cut borrowing costs by half a point for a fourth straight policy meeting, continuing a cycle of monetary easing it began in August to shield the world's second-largest emerging market from the European debt crisis.
http://jlne.ws/yT6AUL
Australia Jobs Fall in December, Zero Growth for 2011
CNBC
Australian employment suffered a surprise fall of 29,300 jobs in December for a subdued end to a year that saw zero jobs growth, adding to the case for further cuts in interest rates and knocking the local dollar lower.
http://jlne.ws/y64qdU
Australia Home-Loan Approvals Gain in November on Rate Cut
BusinessWeek
Australian home-loan approvals rose in November for an eighth straight month as buyers responded to the central bank's first interest-rate reduction in two years.
http://jlne.ws/A1qGhd
Bank of Korea Chief Kim Says Rates Still 'Accommodative'
BusinessWeek
Bank of Korea Governor Kim Choong Soo said that South Korea's interest rates are still below policy makers' desired level and that discrepancy cannot be left for long.
http://jlne.ws/AgtepK
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National Futures Association begins accepting registration applications from swap dealers and major swap participants
National Futures Association
For Immediate Release
For More Information Contact:
Larry Dyekman (312) 781-1372, ldyekman@nfa.futures.org Karen Wuertz (312) 781-1335, kwuertz@nfa.futures.org
National Futures Association begins accepting registration applications from swap dealers and major swap participants
January 19, Chicago - National Futures Association (NFA) announced today that it has begun accepting applications from swap dealers (SDs) and major swap participants (MSPs) pursuant to the recent final registration rules and delegation of authority order that were approved by the Commodity Futures Trading Commission (CFTC) on January 11.
The CFTC's final rules require all SDs and MSPs to be registered with the Commission and become members of a registered futures association. NFA is currently the only such organization. Applying for registration will not be mandatory until the CFTC finalizes its rules defining SDs, MSPs and swaps and they become effective. However, persons who believe that they are SDs or MSPs may apply for registration before then.
The SDs and MSPs applying for registration will be granted provisional registration while the CFTC continues the process of finalizing rules defining compliance requirements under section 4s of the Commodity Exchange Act.
The CFTC has previously authorized NFA to conduct a full range of registration functions with regard to futures commission merchants, commodity pool operators, commodity trading advisors, introducing brokers, leverage transaction merchants, floor brokers, floor traders and retail foreign exchange dealers.
"Over the years, NFA has developed a comprehensive electronic online registration system," said NFA President Dan Roth, "and during the past few months we have enhanced the system to accommodate these two new registration categories."
NFA has developed a new section of its website (www.nfa.futures.org) to provide information and guidance to SDs and MSPs, and NFA will update its website over time to provide further regulatory and registration information.
Individuals can also direct their questions to NFA's Information Center at (312) 781-1410 or (800) 621-3570 between the hours of 8:00 a.m. and 5:00 p.m. CT, Monday through Friday.
Related Links
New Swaps Section on NFA's Website
http://www.nfa.futures.org/NFA-swaps-information/index.HTML
NFA is the premier independent provider of innovative and efficient regulatory programs that safeguard the integrity of the futures markets.
For Immediate Release
For More Information Contact:
Larry Dyekman (312) 781-1372, ldyekman@nfa.futures.org Karen Wuertz (312) 781-1335, kwuertz@nfa.futures.org
National Futures Association begins accepting registration applications from swap dealers and major swap participants
January 19, Chicago - National Futures Association (NFA) announced today that it has begun accepting applications from swap dealers (SDs) and major swap participants (MSPs) pursuant to the recent final registration rules and delegation of authority order that were approved by the Commodity Futures Trading Commission (CFTC) on January 11.
The CFTC's final rules require all SDs and MSPs to be registered with the Commission and become members of a registered futures association. NFA is currently the only such organization. Applying for registration will not be mandatory until the CFTC finalizes its rules defining SDs, MSPs and swaps and they become effective. However, persons who believe that they are SDs or MSPs may apply for registration before then.
The SDs and MSPs applying for registration will be granted provisional registration while the CFTC continues the process of finalizing rules defining compliance requirements under section 4s of the Commodity Exchange Act.
The CFTC has previously authorized NFA to conduct a full range of registration functions with regard to futures commission merchants, commodity pool operators, commodity trading advisors, introducing brokers, leverage transaction merchants, floor brokers, floor traders and retail foreign exchange dealers.
"Over the years, NFA has developed a comprehensive electronic online registration system," said NFA President Dan Roth, "and during the past few months we have enhanced the system to accommodate these two new registration categories."
NFA has developed a new section of its website (www.nfa.futures.org) to provide information and guidance to SDs and MSPs, and NFA will update its website over time to provide further regulatory and registration information.
Individuals can also direct their questions to NFA's Information Center at (312) 781-1410 or (800) 621-3570 between the hours of 8:00 a.m. and 5:00 p.m. CT, Monday through Friday.
Related Links
New Swaps Section on NFA's Website
http://www.nfa.futures.org/NFA-swaps-information/index.HTML
NFA is the premier independent provider of innovative and efficient regulatory programs that safeguard the integrity of the futures markets.
Rabu, 18 Januari 2012
Top Interest Rate Headlines 01-18-2012: US Not Interested In Boosting IMF
US not interested in boosting IMF
http://jlne.ws/xq5ztJ
SEC Clears NYSE Deal, but EU Block Lurks
http://jlne.ws/wyypVp
Price Holdings, Inc. is Pleased to Announce that Ron Mark Has Been Named Director of Risk and Business Development
http://jlne.ws/yj1IdT
Goldman Sachs Profit Drops 58%
http://jlne.ws/A5BT7L
CFTC Gensler testifies to Congress on Volker rule
http://jlne.ws/z1EdXQ
SIFMA Calls for Significant Changes to Current Volcker Rule Proposal at Congressional Hearing
http://jlne.ws/AdOqJ1
Britain: Unemployment reaches 17 year high of 8.4 percent
http://jlne.ws/zMGRJC
IMF Seeks Additional $500 Billion
http://jlne.ws/xcEtzs
Industrial production up 0.4% in Dec after having fallen 0.3% in Nov Industrial Production and Capacity Utilization
http://jlne.ws/yPaM9B
Statement by IMF's Lagarde Following Executive Board Discussion on the Adequacy of Fund Resources
http://jlne.ws/wxbb48
Stanford Professor Becomes Latest To Caution Against Volcker Rule
http://jlne.ws/yUt4rC
Home builders more optimistic as economic outlook improves
http://jlne.ws/xOcddX
Nomura's Ashley to Head Fixed Income as Lehman Bankers Quit
http://jlne.ws/w1DNRI
http://jlne.ws/xq5ztJ
SEC Clears NYSE Deal, but EU Block Lurks
http://jlne.ws/wyypVp
Price Holdings, Inc. is Pleased to Announce that Ron Mark Has Been Named Director of Risk and Business Development
http://jlne.ws/yj1IdT
Goldman Sachs Profit Drops 58%
http://jlne.ws/A5BT7L
CFTC Gensler testifies to Congress on Volker rule
http://jlne.ws/z1EdXQ
SIFMA Calls for Significant Changes to Current Volcker Rule Proposal at Congressional Hearing
http://jlne.ws/AdOqJ1
Britain: Unemployment reaches 17 year high of 8.4 percent
http://jlne.ws/zMGRJC
IMF Seeks Additional $500 Billion
http://jlne.ws/xcEtzs
Industrial production up 0.4% in Dec after having fallen 0.3% in Nov Industrial Production and Capacity Utilization
http://jlne.ws/yPaM9B
Statement by IMF's Lagarde Following Executive Board Discussion on the Adequacy of Fund Resources
http://jlne.ws/wxbb48
Stanford Professor Becomes Latest To Caution Against Volcker Rule
http://jlne.ws/yUt4rC
Home builders more optimistic as economic outlook improves
http://jlne.ws/xOcddX
Nomura's Ashley to Head Fixed Income as Lehman Bankers Quit
http://jlne.ws/w1DNRI
Selasa, 17 Januari 2012
Top Interest Rate Headlines 01-17-12: Debt-Limit Debate Returns to Congress
Debt-Limit Debate Returns to Congress
Congress will joust over a symbolic vote on the U.S. debt limit this week while a decision on whether to extend $3 trillion in tax cuts into 2013 probably will wait until after the November election.
http://www.bloomberg.com/news/2012-01-17/debt-limit-debate-to-return-to-congress-while-budget-decisions-will-wait.html
Icap hires Treasury official to regulatory role
By Jeremy Grant - Financial Times
Icap has hired senior UK Treasury civil servant Hannah Gurga to a new European regulatory advisory post at the world’s largest interdealer broker.
http://jlne.ws/AysMTs
MF Global Probe Focuses on Back Office
BY AARON LUCCHETTI, JULIE STEINBERG AND MIKE SPECTOR - WSJ
Investigators on the hunt for an estimated $1.2 billion in customer money missing since MF Global Holdings Ltd. collapsed are zeroing in on the securities firm's back-office operations in Chicago, people familiar with the situation said.
http://jlne.ws/xf5Hsu
S&P downgrades eurozone bail-out fund
By Joshua Chaffin in Brussels and Quentin Peel in Berlin - Financial Times
Standard & Poor’s on Monday stripped the eurozone’s bail-out fund of its AAA credit rating, potentially constraining its ability to contain the region’s debt crisis and focusing attention on efforts to create a more robust successor.
http://jlne.ws/xTiLAQ
Royal Bank of Scotland sells aviation business
Associated Press via Yahoo! News
Taxpayer-owned Royal Bank of Scotland says it will sell off its aircraft leasing division to Japan's Sumitomo Mitsui Financial Group.
http://jlne.ws/yLo6Xu
Goldman Sachs Said to Offer Bid for New York Fed's AIG Assets
BusinessWeek
Goldman Sachs Group Inc. approached the Federal Reserve Bank of New York with a bid for a block of the mortgage bonds assumed from American International Group Inc., prompting the central bank to weigh an auction of the debt, three people familiar with the matter said.
http://jlne.ws/yJeMDa
Icap hires Treasury official to regulatory role
By Jeremy Grant - Financial Times
Icap has hired senior UK Treasury civil servant Hannah Gurga to a new European regulatory advisory post at the world’s largest interdealer broker.
http://jlne.ws/AysMTs
MF Global Probe Focuses on Back Office
BY AARON LUCCHETTI, JULIE STEINBERG AND MIKE SPECTOR - WSJ
Investigators on the hunt for an estimated $1.2 billion in customer money missing since MF Global Holdings Ltd. collapsed are zeroing in on the securities firm's back-office operations in Chicago, people familiar with the situation said.
http://jlne.ws/xf5Hsu
S&P downgrades eurozone bail-out fund
By Joshua Chaffin in Brussels and Quentin Peel in Berlin - Financial Times
Standard & Poor’s on Monday stripped the eurozone’s bail-out fund of its AAA credit rating, potentially constraining its ability to contain the region’s debt crisis and focusing attention on efforts to create a more robust successor.
http://jlne.ws/xTiLAQ
Royal Bank of Scotland sells aviation business
Associated Press via Yahoo! News
Taxpayer-owned Royal Bank of Scotland says it will sell off its aircraft leasing division to Japan's Sumitomo Mitsui Financial Group.
http://jlne.ws/yLo6Xu
Goldman Sachs Said to Offer Bid for New York Fed's AIG Assets
BusinessWeek
Goldman Sachs Group Inc. approached the Federal Reserve Bank of New York with a bid for a block of the mortgage bonds assumed from American International Group Inc., prompting the central bank to weigh an auction of the debt, three people familiar with the matter said.
http://jlne.ws/yJeMDa
Congress will joust over a symbolic vote on the U.S. debt limit this week while a decision on whether to extend $3 trillion in tax cuts into 2013 probably will wait until after the November election.
http://www.bloomberg.com/news/2012-01-17/debt-limit-debate-to-return-to-congress-while-budget-decisions-will-wait.html
Icap hires Treasury official to regulatory role
By Jeremy Grant - Financial Times
Icap has hired senior UK Treasury civil servant Hannah Gurga to a new European regulatory advisory post at the world’s largest interdealer broker.
http://jlne.ws/AysMTs
MF Global Probe Focuses on Back Office
BY AARON LUCCHETTI, JULIE STEINBERG AND MIKE SPECTOR - WSJ
Investigators on the hunt for an estimated $1.2 billion in customer money missing since MF Global Holdings Ltd. collapsed are zeroing in on the securities firm's back-office operations in Chicago, people familiar with the situation said.
http://jlne.ws/xf5Hsu
S&P downgrades eurozone bail-out fund
By Joshua Chaffin in Brussels and Quentin Peel in Berlin - Financial Times
Standard & Poor’s on Monday stripped the eurozone’s bail-out fund of its AAA credit rating, potentially constraining its ability to contain the region’s debt crisis and focusing attention on efforts to create a more robust successor.
http://jlne.ws/xTiLAQ
Royal Bank of Scotland sells aviation business
Associated Press via Yahoo! News
Taxpayer-owned Royal Bank of Scotland says it will sell off its aircraft leasing division to Japan's Sumitomo Mitsui Financial Group.
http://jlne.ws/yLo6Xu
Goldman Sachs Said to Offer Bid for New York Fed's AIG Assets
BusinessWeek
Goldman Sachs Group Inc. approached the Federal Reserve Bank of New York with a bid for a block of the mortgage bonds assumed from American International Group Inc., prompting the central bank to weigh an auction of the debt, three people familiar with the matter said.
http://jlne.ws/yJeMDa
Icap hires Treasury official to regulatory role
By Jeremy Grant - Financial Times
Icap has hired senior UK Treasury civil servant Hannah Gurga to a new European regulatory advisory post at the world’s largest interdealer broker.
http://jlne.ws/AysMTs
MF Global Probe Focuses on Back Office
BY AARON LUCCHETTI, JULIE STEINBERG AND MIKE SPECTOR - WSJ
Investigators on the hunt for an estimated $1.2 billion in customer money missing since MF Global Holdings Ltd. collapsed are zeroing in on the securities firm's back-office operations in Chicago, people familiar with the situation said.
http://jlne.ws/xf5Hsu
S&P downgrades eurozone bail-out fund
By Joshua Chaffin in Brussels and Quentin Peel in Berlin - Financial Times
Standard & Poor’s on Monday stripped the eurozone’s bail-out fund of its AAA credit rating, potentially constraining its ability to contain the region’s debt crisis and focusing attention on efforts to create a more robust successor.
http://jlne.ws/xTiLAQ
Royal Bank of Scotland sells aviation business
Associated Press via Yahoo! News
Taxpayer-owned Royal Bank of Scotland says it will sell off its aircraft leasing division to Japan's Sumitomo Mitsui Financial Group.
http://jlne.ws/yLo6Xu
Goldman Sachs Said to Offer Bid for New York Fed's AIG Assets
BusinessWeek
Goldman Sachs Group Inc. approached the Federal Reserve Bank of New York with a bid for a block of the mortgage bonds assumed from American International Group Inc., prompting the central bank to weigh an auction of the debt, three people familiar with the matter said.
http://jlne.ws/yJeMDa
Jumat, 13 Januari 2012
Top Interest Rate Headlines 01-13-2012: It's Official, S&P Downgrades France To AA+; Leaves Germany Alone
It's Official, S&P Downgrades France To AA+; Leaves Germany Alone
The worst-kept secret on Wall Street was officially confirmed after the close Friday, when Standard & Poor’s downgraded its sovereign debt rating on France to AA+ from AAA. Spain and Italy saw their ratings cut two notches, while Germany’s AAA rating was left unchanged.
Widely-anticipated since the ratings agency put most of the 17 eurozone countries under review in December, France’s downgrade Friday puts its rating in line with that of the U.S., which S&P cut in August.
http://jlne.ws/zUjIzY
Germany's Schaeuble: We Shouldn't Overrate Assessment Of Ratings Agencies
WSJ.com
German Finance Minister Wolfgang Schaeuble Friday downplayed the significance a possible downgrade by Standard & Poor's.
http://jlne.ws/xgpS1S
On Friday 13th, Euro Zone May Again Slay the U.S. Consumer
Just as U.S. consumers feel better about the economy, Bam! Europe flares up again. Friday was all about mixed signals on the outlook.
WSJ.com
http://jlne.ws/wlr5JJ
S&P will not cut Ireland's credit rating sources
Reuters
Ratings agency Standard & Poor's will not downgrade Ireland's credit rating in a euro zone-wide move expected later on Friday, two senior Irish officials told Reuters.
http://jlne.ws/wRo96G
Fed’s Lacker: Not Central Bank’s Role to Intervene in Housing Market
WSJ.com
Federal Reserve Bank of Richmond President Jeffrey Lacker Friday said it’s not the central bank’s role to intervene in the housing market, comments that put him at odds with colleagues calling for broader efforts to aid the ailing market.
http://jlne.ws/zjNvOj
Sarkozy holds emergency meeting with cabinet
Reuters
French President Nicolas Sarkozy met with senior cabinet officials at his office in an emergency meeting on Friday as reports circulated that France may be about to lose its triple-A credit rating with ratings agency Standard & Poor's.
http://jlne.ws/AfEt8w
Play-by-play coverage on S&P downgrade issue
The Guardian
As well as being downgraded tonight, France has been warned that it faces "at least a one-in-three" chance of being downgraded again this year, or in 2013.
http://jlne.ws/zKL4Dd
Bullard: Stabilization Policy Should Be Left To Monetary Auth
The Federal Reserve is better suited for stabilizing the economy against "aggregate shocks" than the fiscal authority, in part, because the political makeup of the fiscal authority is not well suited for the timely, subtle reactions necessary, St. Louis Federal Reserve President James Bullard argued in an economic paper
http://jlne.ws/zV9itB
Greek bond swap talks appear close to collapse
Associated Press
Crucial negotiations between the Greek government and its private creditors on a bond swap deal needed to avoid default appeared close to collapse Friday, with representatives of the bondholders saying they had been "paused for reflection."
http://jlne.ws/zdxFHm
France will be degraded by one notch by S & P
Les Echos
Standard & Poor's downgraded the rating a notch from France, and maintained its negative outlook. Eight other countries in the euro zone have deteriorated. Germany, the Netherlands, Luxembourg and Finland keep them their AAA. For Baroin, the Minister of Finance, "it's not good news" but it is "not a disaster."
http://jlne.ws/AiFHAt
Obama to Propose Merging Agencies
WSJ.com
President Barack Obama on Friday proposed merging six agencies that focus on trade and commerce into one new department, following through on a promise he made a year ago.
http://jlne.ws/xkR2bn
Government Edges Toward Debt Ceiling
WSJ.com
The White House notified Congress on Thursday that the government was near its $15.194 trillion borrowing limit, ushering in the debut of procedural theater in which the debt limit will ultimately be raised even if Congress votes against it.
http://jlne.ws/yUeuJR
S&P rumoured to be on verge of mass eurozone downgrade
Wealth Manager
Standard & Poor's ratings agency has downgraded France according to French television channels. Earlier, a senior eurozone source said that S&P was set to downgrade several eurozone countries later on Friday, although Germany would not be one of them, Reuters reported.
http://jlne.ws/xEKiq3
Performance Bond Requirements: Interest Rate Outrights
http://jlne.ws/yznsyh
The worst-kept secret on Wall Street was officially confirmed after the close Friday, when Standard & Poor’s downgraded its sovereign debt rating on France to AA+ from AAA. Spain and Italy saw their ratings cut two notches, while Germany’s AAA rating was left unchanged.
Widely-anticipated since the ratings agency put most of the 17 eurozone countries under review in December, France’s downgrade Friday puts its rating in line with that of the U.S., which S&P cut in August.
http://jlne.ws/zUjIzY
Germany's Schaeuble: We Shouldn't Overrate Assessment Of Ratings Agencies
WSJ.com
German Finance Minister Wolfgang Schaeuble Friday downplayed the significance a possible downgrade by Standard & Poor's.
http://jlne.ws/xgpS1S
On Friday 13th, Euro Zone May Again Slay the U.S. Consumer
Just as U.S. consumers feel better about the economy, Bam! Europe flares up again. Friday was all about mixed signals on the outlook.
WSJ.com
http://jlne.ws/wlr5JJ
S&P will not cut Ireland's credit rating sources
Reuters
Ratings agency Standard & Poor's will not downgrade Ireland's credit rating in a euro zone-wide move expected later on Friday, two senior Irish officials told Reuters.
http://jlne.ws/wRo96G
Fed’s Lacker: Not Central Bank’s Role to Intervene in Housing Market
WSJ.com
Federal Reserve Bank of Richmond President Jeffrey Lacker Friday said it’s not the central bank’s role to intervene in the housing market, comments that put him at odds with colleagues calling for broader efforts to aid the ailing market.
http://jlne.ws/zjNvOj
Sarkozy holds emergency meeting with cabinet
Reuters
French President Nicolas Sarkozy met with senior cabinet officials at his office in an emergency meeting on Friday as reports circulated that France may be about to lose its triple-A credit rating with ratings agency Standard & Poor's.
http://jlne.ws/AfEt8w
Play-by-play coverage on S&P downgrade issue
The Guardian
As well as being downgraded tonight, France has been warned that it faces "at least a one-in-three" chance of being downgraded again this year, or in 2013.
http://jlne.ws/zKL4Dd
Bullard: Stabilization Policy Should Be Left To Monetary Auth
The Federal Reserve is better suited for stabilizing the economy against "aggregate shocks" than the fiscal authority, in part, because the political makeup of the fiscal authority is not well suited for the timely, subtle reactions necessary, St. Louis Federal Reserve President James Bullard argued in an economic paper
http://jlne.ws/zV9itB
Greek bond swap talks appear close to collapse
Associated Press
Crucial negotiations between the Greek government and its private creditors on a bond swap deal needed to avoid default appeared close to collapse Friday, with representatives of the bondholders saying they had been "paused for reflection."
http://jlne.ws/zdxFHm
France will be degraded by one notch by S & P
Les Echos
Standard & Poor's downgraded the rating a notch from France, and maintained its negative outlook. Eight other countries in the euro zone have deteriorated. Germany, the Netherlands, Luxembourg and Finland keep them their AAA. For Baroin, the Minister of Finance, "it's not good news" but it is "not a disaster."
http://jlne.ws/AiFHAt
Obama to Propose Merging Agencies
WSJ.com
President Barack Obama on Friday proposed merging six agencies that focus on trade and commerce into one new department, following through on a promise he made a year ago.
http://jlne.ws/xkR2bn
Government Edges Toward Debt Ceiling
WSJ.com
The White House notified Congress on Thursday that the government was near its $15.194 trillion borrowing limit, ushering in the debut of procedural theater in which the debt limit will ultimately be raised even if Congress votes against it.
http://jlne.ws/yUeuJR
S&P rumoured to be on verge of mass eurozone downgrade
Wealth Manager
Standard & Poor's ratings agency has downgraded France according to French television channels. Earlier, a senior eurozone source said that S&P was set to downgrade several eurozone countries later on Friday, although Germany would not be one of them, Reuters reported.
http://jlne.ws/xEKiq3
Performance Bond Requirements: Interest Rate Outrights
http://jlne.ws/yznsyh