CBOE Holdings Inc, which runs the Chicago Board Options Exchange, said on Thursday that second-quarter profit fell 11%. Net income fell to $24.9 million, or 27 cents a share, from $28.1 million, or 31 a share, a year earlier. Results from the latest quarter include certain one-time expenses, including for index options litigation. Get the full story »
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CME Group CEO sees no need for new acquisitions
CME Group. CEO Craig Donohue appeared to rule out growth by acquisition on Thursday, and said excess cash would be returned to shareholders as soon as next year. Get the full story »
CME Group’s profit jumps 22%
CME Group Inc.’s second-quarter earnings rose 22 percent, and adjusted results topped analysts’ forecasts, as the world’s biggest operator of derivatives exchanges again benefited from increased volume. Get the full story »
CFTC approves CME’s Green Exchange
CME Group Inc.’s Green Exchange LLC won regulatory approval as a designated contract market on Friday, adding a fourth regulated exchange to CME’s stable. Get the full story »
Eris Exchange to launch on June 26
The Eris Exchange, a new platform backed by proprietary trading groups, on Thursday introduced interest rate swap futures contracts as its initial product group ahead of a planned launch July 26.
The venture is working to recruit customers, and will open its doors to clients and futures brokerages next week, according to a release.
Eris, backed by firms including Getco LLC and DRW Holdings, is an effort by private trading firms to break into the market for over-the-counter derivatives, long the dominion of the biggest Wall Street banks. Get the full story »
Trading in OTC interest-rate swaps set to start
Five Chicago trading firms will soon start an exchange to handle trading of over-the-counter interest rate swaps, according to a person familiar with the matter.
Getco LLC, DRW Holding, Infinium Capital Management, Chicago Trading Co. and Nico Holdings LLC received approval for a so-called exempt board of trade from the Commodity Futures Trading Commission several months ago, the source said. Get the full story »
SEC still unclear on cause of flash crash
U.S. regulators are still trying to ferret out what caused the Dow Jones industrial average to mysteriously drop nearly 700 points in minutes before sharply recovering, the chairman of the Securities and Exchange Commission said Friday. More than two months after the market briefly crashed in May, market regulators are still exploring a number of theories, including an imbalance between buyers and sellers.
“What we clearly understand are what the exacerbating factors were,” SEC chief Mary Schapiro told Reuters in an interview on the sidelines of a conference in Chicago on corporate governance, “like different trading conventions in different marketplaces, liquidity replenishment points, self-help, banded orders.” Get the full story »
CBOE keeps exclusive rights to index options
An Illinois state judge handed CBOE Holdings Inc. a decisive victory on Thursday that cemented the exchange operator’s right to exclusively list index options.
Cook County Circuit Court Judge William Maki barred rival International Securities Exchange from trading index options on U.S. stock benchmarks such as the Standard & Poor’s 500 index . Get the full story »
CME Group plans interest-rate clearing in 2010
CME Group Inc, which runs the world’s biggest clearinghouse for futures contracts, plans to start clearing over-the-counter interest-rate contracts in 2010, an executive said on Wednesday.
A sweeping financial regulatory reform bill that won passage this month in the House will require trading and clearing of a swath of derivatives currently traded away from regulated exchanges. CME is among several clearinghouses that aim to take advantage of the new requirements. Get the full story »
KKR to be listed on NYSE next week; IPO soon
KKR & Co. said Tuesday that it will begin trading on the New York Stock Exchange on July 15 and revealed the multi-million-dollar paychecks its famous founders took home last year.
The private-equity firm, which will trade under the symbol KKR, is switching listing venues from NYSE Euronext Amsterdam. European shareholders’ stakes will be converted into NYSE-listed common units. A separate stock offering also is planned at some point after the listing, but it is unlikely to take place on the same date unless market conditions improve. Get the full story »
BioSante added to Russell 3000
BioSante Pharmaceuticals Inc. said today it has been added to the broad-market Russell 3000 Index as part of Russell Investments’ recent reconstitution of its comprehensive set of U.S. and global equity indexes after market close Friday. Get the full story »
Lawmakers reach a deal on financial reform
House Financial Services Committee Chairman Barney Frank (D-Mass.) talks with a group including Rep. Spencer Bachus (R-Ala.), left, during a recess from a committee conference on Wall Street reform. (Jonathan Ernst/Reuters)
Ending more than two weeks of often-contentious negotiations, House and Senate lawmakers reached agreement early Friday on the most far-reaching rewrite of financial rules since the Great Depression.
The final details, including creation of an agency to protect consumers in the financial marketplace and new regulations to reduce risk-taking by large banks and limit their trading of complex derivatives, were hashed out in a marathon 20-hour session that began Thursday morning.
Lawmakers on a joint conference committee labored until dawn reconciling House and Senate versions of the legislation in time for President Obama to brief foreign leaders on the completed deal at a major economic summit in Canada starting Friday.
Get the full story »
Federal Signal moved to S&P SmallCap 600 index
Standard & Poor’s S&P said it will move Oak Brook-based Federal Signal Corp. to its SmallCap 600 index from the MidCap 400 index after the close of trading June 30. Federal Signal has a market capitalization of less than $380 million, making it more representative of the small cap space, S&P said in a statement. Get the full story »
U.S. House’s tougher clearing rules a ‘win’ for CME
The U.S. House of Representatives team negotiating derivatives reforms is attempting to tighten a debated loophole that would allow some companies to avoid new rules for the $615 trillion over-the-counter market, according to a document obtained Wednesday.
House negotiators offered a new approach to the so-called “end-user exemption” provided to manufacturers and other non-financial companies who want to avoid the extra costs associated with clearing and trading swaps — one of 110 changes proposed to the derivatives section of the bill as a Thursday deadline looms. Get the full story »
