Tag: CME


“Hound of Hounslow” Faces the Kennel

In what is being seen as a surprise move, Navinder Singh Sarao, the UK-based day trader accused by US authorities of spoofing markets and contributing to the May 2010 flash crash in US equities, has pleaded guilty in a US court appearance following his extradition from the UK.
Sarao, nicknamed the “hound of Hounslow” because he operated at times from a bedroom in his parents’ house in that London suburb, was extradited after being accused of making almost $40 million by entering large bids and offers against his intended trading direction on CME stock futures.

CME Widens Price Fluctuation Bands Ahead of US Poll

CME Group has issued an advisory stating that its Global Command Centre (GCC) has taken “emergency action” ahead of this week’s US election by widening the price fluctuation bands on interest rate futures contracts traded on CME and Chicago Board of Trade (CBOT), which is part of the CME Group.
CME says the temporary modification of the price fluctuation limits is a precautionary measure “to ensure fair and orderly trading in these products based on the material likelihood of a marked increase in price volatility expected to result from the General Election vote in the United States to be held of November 8, 2016”.??

More Mixed News from FX Platforms

CME, EBS and FXSpotStream have all released October volume data, and, as was the case with the first group to report, the news is very mixed.
EBS says FX volume averaged $83.8 billion in October, 3% higher than September’s $81.7 billion and a fraction higher than October 2015’s $83.1 billion.
Meanwhile the outlook was gloomier at CME Group where the Merc reported average daily turnover of 771,000 contracts in FX products, 5% higher than October 2015 but down 20.4% on September’s data. Profit & Loss estimates ADV at CME in FX products to be $88 billion in notional value across futures and options on futures.
It was a different picture at FXSpotStream, however, where the platform registered $17.1 billion ADV, up 24.5% from October 2015 and also up 10.3% month-on month.

Who Are The Potential Buyers of Nex?

There was a fair amount of chatter about the future of Icap (soon to become ‘Nex’) at the recent Profit & Loss Forex Network Chicago conference, with much of it centering around likely purchasers of the company once it sells its global wholesale broking and information business (IGBB) to Tullett Prebon.
“The other broader question hanging around the firm as it transitions into Nex is whether [CEO Michael] Spencer is priming the new entity for a sale,” Profit & Loss noted in an article published prior to the conference last month.
It seems that many of the attendees of Forex Network Chicago had, in their own minds at least, decided that the answer to this question was that the firm is indeed up for sale. The speculation then turned to who would be interested and able to buy the firm.

Duco Streamlines Fee Processes for CME Members

Duco Technologies will offer its data control and reconciliation services to CME Group members starting January 2017, the two firms announced.

The launch follows a six-month trial period with a limited number of futures commission merchants (FCMs).

Duco’s service is designed to enable CME member firms to simplify processes around fee structures without investing in infrastructure or IT resources.

CME chief commercial officer Bryan Durkin comments: “We’re pleased to offer our member firms an innovative solution to help streamline their current fee processes. Duco’s service will reduce manual work, drive efficiency and ensure accuracy between parties.”

Latest Platform Volumes Show Mixed Performance

The latest batch of monthly volumes to be reported by the multibank FX platforms are more mixed, after Hotspot, FastMatch and Gain GTX all posted month-on-month and year-on-year increases in their September volumes earlier this week.

Although volumes on EBS, FXSpotStream and CME Group all recovered from August – when trading volumes were significantly down across the board – activity on the first two of these platforms was down year-on-year, while CME posted only a marginal increase in comparison to September 2015.

And Finally…

Just about 10 months ago the deal was announced to sell Icap’s voice business to Tullett Prebon and at that time, in this column, I suggested that a consequence of that deal would be an easier path for anyone looking to buy Icap’s electronic business, subsequently revealed to be named Nex.
Obviously I cited an exchange as the most likely buyer and it seems, if the headlines of last week are anything to go by, that the pieces are being moved into place. Moving pieces is, however, very different to an actual deal – what are the chances of that?

Platforms Suffer Mense Horribilis

Most FX major trading venues will be glad to see the back of August – following the downbeat results from FastMatch and Hotspot, four other venues have reported a decline in volumes – two registering historic lows and a third the lowest in seven years. The numbers add up to a horrible month for the platforms and, by association, for the wider foreign exchange industry as activity levels continue to dive following June’s Brexit-inspired spike, most will be hoping for a forex rebound in September.

CME to Add Contract Months for MXN/USD Options

CME Group plans to list additional contract months for the options on its MXN/USD futures contract on Globex. Effective September 11 2016, for trade date September 12 2016, CME will list nine additional contract months for these options. The exchange group already lists three contract months for this contract on Globex and 12 contract months […]