The John Lothian Newsletter Blog

November 2007 JLN Archives :: RE: November 30, 2007

Author: John Lothian Newsletter
Subject: Sette Vindicated, Reinstated; Complaint Dismissed
Posted: Wed Aug 20, 2008 8:09 am (GMT -5)
Topic Replies: 1

Sette Vindicated, Reinstated; Complaint Dismissed

On August 4, 2008, Michael J. Garcia, United States Attorney for the Southern District of New York, directed that the government dismiss a complaint against Vincent Sette (a/k/a Setteducate), Executive Vice President of Sales and Marketing for Great American Technologies, Inc. (GAT)

In documents filed with the court, the US Attorney�s office stated �[b]ased on a review of the evidence in the case and information pertaining to this defendant acquired subsequent to the filing of the indictment, the Government has concluded that further prosecution of Vincent Setteducate would not be in the interests of justice.�

On November 30, 2007, the US Attorney sought and obtained an indictment against Mr. Sette. Neither GAT nor any other persons, including past or present officers, board members, and employees, were named in the complaint.

As a result, Mr. Sette resigned his position as an officer of the corporation at GAT in order to focus on vigorously defending himself against the government�s allegations. The GAT Board of Directors reluctantly accepted his resignation, convinced that he was innocent.

Upon dismissal of the matter, GAT�s Board immediately reinstated Mr. Sette to his original position as Executive Vice President of Sales and Marketing.

Based on the US Attorney�s decision to dismiss the complaint against Mr. Sette in the interests of justice, Mr. Sette and GAT plan to seek a speedy resolution of the parallel action filed by the SEC in November 2007 and stayed since April 2008.
_________________
Regards,

John Lothian Newsletter

NYSE Euronext :: NYSE Letter rebutting the Nasdaq claims

Author: John Lothian Newsletter
Subject: NYSE Letter rebutting the Nasdaq claims
Posted: Mon Jul 21, 2008 8:32 am (GMT -5)
Topic Replies: 0

The most recent boasts by one of our competitors, NasdaqOMX, takes a turn from William Shakespeare�s �A Midsummer Night's Dream,� the romantic comedy that seeks to blend identities and blur the lines of fantasy and reality. For good reason, the competitor�s dramatic escapade calls for a real world response.

In the U.S., our dual-market structure of the New York Stock Exchange (NYSE) and NYSE ARCA makes us the dominant source of liquidity in NYSE-listed securities, especially in thinly traded issues. While there has been a decline in NYSE share of trading, it is worth noting that more than one-third of the world�s cash trading takes place on NYSE Euronext exchanges, making our exchange group the world�s largest and most influential. In June, we had traded more volume than Nasdaq in 99.4% of NYSE-listed stocks, 95.6% on the NYSE alone. Moreover:
� We dominate institutional trading with more than 13 times the block liquidity than Nasdaq;
� We set the NBBO nearly three times as often as Nasdaq, while NYSE alone set the NBBO twice as often;
� The NYSE�s quoted spreads are roughly one-third of Nasdaq's across all stocks and NYSE Arca is one-third less than Nasdaq;
� Our transaction costs are less expensive than Nasdaq, which is the most expensive venue in the U.S.

The exchange space is rapidly changing and the competition is fierce and intensifying�unfortunately, so is the rhetoric. The bigger story is not NYSE vs. Nasdaq. It�s about seismic technological, regulatory and structural changes�on a global scale. It�s about matters such as cross-border listings, new ways to access information, and off-exchange (TRF) and growing dark pool liquidity. It�s about our growing product and geographic diversity, and strengthening our position as the world�s leading exchange group and facilitator of liquidity. It�s about finding new and better ways to best serve one�s customers.

We maintain separate listing and trading venues to provide issuers, investors and our trading partners with greater choice--the high tech/high touch trading floor and fully electronic trading. NYSE Euronext exchanges remain the most liquid and efficient venue for the listing and trading of NYSE-listed securities; no other exchange manages market opens and closes, as well as periods of market stress and volatility, as well as the NYSE.

With respect to some of Nasdaq�s most recent claims:
� On Nasdaq�s assertion of having for the first time captured greater share of trading in NYSE-listed stocks, it is worth noting that they included their pre-market volume (prior to the NYSE open), did not include the post-close NYSE Crossing Session II, and totally ignored the NYSE Arca trading in NYSE-listed securities.

� Nasdaq is not the largest in U.S. trading. We remain the leader in trading NYSE listed securities in the U.S. by virtue of the combined trading on NYSE and NYSE Arca.
o Our U.S. trading activity is significantly higher than Nasdaq's in NYSE-listed securities�in June, our matched market share was 45.6%, 49.5% year-to-date;
o Nasdaq's share in trading its own listed stocks has steadily declined throughout the year, down to approximately 42% in June and less than 45% year-to-date;
 NYSE Arca trades approximately 16.1% of Nasdaq listed securities;
o For all U.S. equities trading in June, we accounted for 34.6% while Nasdaq accounted for 30.1%, making our marketplace the largest for U.S. trading.

� Nasdaq claims to have more listings than any other marketplace group, well, that�s simply wrong. As of end of June 2008, NYSE Euronext had nearly 4,500 listed issuers (includes NYSE, Euronext, NYSE Arca and Alternext; excludes inter-listed companies) compared with Nasdaq OMX's approximately 3,900 listed issuers; when we complete the acquisition of the American Stock Exchange, we will have more than more than 5,600 listed issuers.
o The global market cap for all NYSE Euronext listed issuers is approximately $28 trillion compared with Nasdaq OMX's $5.6 trillion;
o The market value of NYSE Euronext international listings exceeds $10 trillion, more nearly twice the size of Nasdaq OMX.

� A recent news release by Nasdaq OMX inaccurately claimed that Nasdaq OMX "Attracted More New Listings than Any Other U.S. Exchange" in the second quarter of 2008. In fact, in June 2008 alone, NYSE Euronext attracted 42 new listings - as many as Nasdaq during the entire second quarter. Some other points of interest:
o NYSE Euronext added 196 new listings during first half of 2008;
o NYSE Euronext is the global leader in IPO proceeds raised by operating companies in the first half of 2008--capital raised on NYSE Euronext markets totaled $28.3 billion, more than any exchange group in the world and 28 times the value raised by IPOs on Nasdaq OMX;
o So far this year, we have attracted more than 85% of qualified issuers on the NYSE, and our new listings represent 90% of the qualified proceeds raised.

In the U.S., our dual-market structure gives us the lead in both market share and market quality. Our strategy is to leverage the distinct strengths the NYSE and NYSE Arca for the benefit of our listed issuers, investors and broker/dealers. We provide a partnership based on superior brand, technology, products and services, regulation and standards.

We are reinventing our marketplace to make it an even stronger and more attractive listing and trading venue. In the months to come, we will further demonstrate the value of listing and trading in our marketplace. Underway are initiatives that will enhance execution speed, market information, price improvement, lower volatility, deepen liquidity, and broaden participation.

We are fully committed to making our market centers the most competitive and most customer-friendly. We welcome your input and greatly appreciate the opportunity to serve you and your constituents. And while open to factually challenging the creative imagination of our competition, we promise to spare you the Shakespearean drama.
_________________
Regards,

John Lothian Newsletter

Regulatory News :: Bill Dudley Letter to CFTC Commission Walter Lukken

Author: John Lothian Newsletter
Subject: Bill Dudley Letter to CFTC Commission Walter Lukken
Posted: Thu Mar 06, 2008 5:30 pm (GMT -5)
Topic Replies: 0

Walter Lukken
Chairman
Commodity Futures Trading Commission
1155 21st Street, NW
Washington, DC 20581

Dear Chairman Lukken,

This first person narrative is intended to share a veteran (reads: "old guy) perspective with you brave souls, charged with the responsibility of protecting our futures markets. I hope it helps, for it is your effective oversight that ensures an efficient and fair means for the transference of risk and price discovery.

In the past month, we have seen the Dept of Treasury cast a friendly eye towards fungibility, read the Dept of Justice comment on the anti-competitive aspects of a vertically integrated futures exchanges, and witnessed the CME's recent ruling to liberalize "block trading." The opaque pricing tentacles of negotiated markets are being allowed to creep into the price transparent central market. You are "price discovery's" last line of defense.

Detour Ahead to the Past

In the land of the blind, the one eyed man is king.

Almost forty years ago, Uncle Sam publicly "recognized" the eighteen most active bank and non-bank bond dealers as "the primary dealers" in the market for U.S. government securities. Each primary dealer was responsible for bidding on and distributing newly issued U.S. debt instruments, and for making consistent two-sided markets in all issues. In exchange for this service to our country, the primary dealers were allowed to trade with the Federal Reserve, a public institution, whose reason for trading was usually to conduct monetary policy and not "to make a buck." Needless to say, the opportunity to trade with the world's deepest pocket public entity, whose reason for trading was something other than making a profit, had its advantages.

The primary dealers all traded independently so naturally one dealer's price would usually be higher or lower than another's. It was truly a "call around" or "negotiated market," where only the primary dealers knew the best price.but for their customers it was truly "the land of the blind." Why would we ever want to go back?

But I'm getting ahead of myself. Back then, things were slower, markets were smaller and while there were eighteen primary dealers, the bulk of the business was handled by Salomon Bros, First National City Bank, Discount Corp, Aubrey Lanston, First Boston, Halsey Stuart and New York Hanseatic.
Then Merrill Lynch joined "The Gang of Eight" with its acquisition of C.J.
Devine.and ME.

Ok, so even without me, Merrill probably would have made The Gang. But, I was a brand spanking, squeaky-clean, new Junior Executive Trainee with a navy blue suit, white socks and a pulse.tah dah! I had finished college, survived the Army, and landed in a chair located behind the right shoulder of my hero, Dennis - government securities arbitrageur extraordinaire.
Dennis sat me there because, "it's position where you can't get in my way.
You can't reach my @%&# phone. But you CAN get my coffee." And I have been in the government securities business; selling, managing, trading or getting someone's coffee ever since.

Depending on whom you ask, I have either thirty-eight years of experience.or just one year's experience thirty-eight times. Regardless, I do have a long and intimate historical perspective on the Wall Street dealer preference for "negotiated markets" versus the futures industry's preference for "auction markets." From that perspective, I am led to believe that if today's market regulators can look past all the posturing of concerned parties, and focus on the design and intent differences between these two models, they will decide the issues of internalization, "block trading," and fungibility to the benefit of the interest rate market, the vast majority of market participants and every U.S. tax payer. So if I may.

During the 70's, there wasn't a consolidated tape or central market where participants could see the last trade or a live bid/offer spread on any issue. Well, check that. there was the broker's screen, these were monitors maintained by inter-dealer brokers (Fundamental Brokers, RMJ and Garban), and used by primary dealers to keep each other appraised of the current best bids and offers, and to anonymously trade with one another. But these screens were strictly for the primary dealer's trading desk. Screens sat FACING the traders and AWAY from salesmen and their customers!

I learned a lot while peeking over Dennis' shoulder: the dollar measure of an .01 along the yield curve, the value of the dealer's edge and, "Dudley! 'Coffee regular' isn't black and a glazed cruller is not a @%&# donut!" Dennis also taught me the only @%&# adjective I would ever need in the bond business. So ok, maybe I was just one step up from .well, unemployed. But still, I got to sit on the right side of those screens!

We didn't want customers to know the inside market. You want to know where the market is trading? Call our trading desk and we'll tell you.
Consequently, customers frequently bought and sold bonds at prices that were worse than the best price available at the time of execution. Price was a mystery wrapped in secrecy and uncertainty.

Ok yes, that price uncertainty did tend to suppress trading volume and reduce liquidity. But on the good side, that uncertainty allowed us to trade the current issues on a 4/32nd spread, "off the run issues" for 1/4, and aged issues for up to �..sweeeeet. In fact, the only thing that was not "uncertain" was profit - dealer profit. And when Merrill went public in 1971, I think it was the first glimpse the financial community had of just how profitable. That first annual report graphically broke out profitability as a kind of bull shaped pie chart. Net interest income and profits from government trading were lumped together and commanded the bull's entire hindquarter and a good bit of the rib cage. To quote the world famous economist, Mel Brooks, "It's good to be da King."

And in this land of the blind, the primary dealer was the one-eyed king.

Unfortunately, fat profits invited competition and innovation. Competition came as the ranks of primary dealers bulged from 18 to over 40. But it was innovation that most changed the landscape. Bond broker Cantor Fitzgerald acquired Telerate in the mid 70's and broadcast its live trading screen beyond the shrouded primary dealers to virtually any customer who could pay the rent. For the first time, non-dealer market participants could see trades real-time and have access to a central and open market where they could compete for the best price.

True to their word, the primary dealers, who had always threatened that they would pull their business from any inter-dealer broker who gave the trading screen to a non-primary dealer, boycotted Cantor. At Merrill, we installed the Telerate screen on the trading desk - to see how the competing market was doing - but didn't post our markets. And we outlawed the installation of Telerate screens in any of our institutional sales offices.

"Hey, it's bad enough when customers know where the market is, but we sure don't want some salesman in a $1,500 suit and no underwear telling us, 'but George, they're offered a half tick cheaper on Telerate.'"

It didn't matter. The world had changed. Cantor was posting the bids and offers of hundreds of non-dealer customers who were transacting live on the screen. This open market transparency reduced price uncertainty, which encouraged the frequency and size of trade. The hundreds of participants became thousands and the expanding competition on price forced a narrowing of our precious bid/offer spread.Good Gawd, things couldn't get worse!!

Ooops, things got worse! The futures market ushered in its financial instruments contracts on treasury bills and treasury bonds in 1977. These contracts with their ease of access to both the long and short side of the market appealed to a broad spectrum of investors, traders and interest rate risk managers. Virtually tens of thousands entered the government securities arena through the futures market, employing a variety of strategies and competing on one parameter: PRICE. No one could pay more than the lowest offer, or sell bellow the highest bid. There was just one price - even for kings.

In a matter of weeks, this intense and open competition for price narrowed the bid/offer spread on treasury futures contracts from 4/32 to1/32nd. And since futures are a basis substitute for treasury issues, basis traders effectively narrowed the cash bond spread as well. And everyone was happy.
well, nearly everyone. Remember, this reduction in transaction expense enjoyed by most market participants was funded from the 4/32 spread the primary dealers had owned in the land of the blind.

And ever since then, the one-eyed king has fought to redirect the flow of their customer business away from the transparency of a central auction market, towards translucence and ultimately the darkness of a negotiated market. The primary dealers formed BrokerTec Futures and joined the chorus at Eurex (son of BrokerTec), not because these new exchanges lowered transaction cost (in fact their fees were higher), but because they allowed "block trading" and the opportunity for dealers to take the other side of their customer trades.

To date, every new exchange in the U.S. that has attached the negotiated market's legacy of darkness to its exchange rules, has failed. So dealer firms are now taking the route that if they can't get the futures market participants to do business on an exchange that allows "block trading" or supports internalization, they will lobby regulators to mandate rule changes that force U.S. futures exchanges to allow dealer firms to function as if our "central auction market" was in fact, a "negotiated market." That's like the Cobra being allowed to redefine the rules of engagement with the Mongoose. "You see Mr. Regulator that mongoose there has four legs and I don't have any. What say, you make this fight more competitive by cutting off his legs?"

Today's weapon of choice in the war against transparency is "fungibility."
Fungibility (a word I suspect was lifted from the Latin "to fudge" and the Greek "to take giant nibbles") would allow a futures contract - say in treasury notes or stock indices - to be executed on the floor of any futures exchange. The dealer community plans to open a new exchange here in the U.S. to compete for financial futures contracts. Dealers and their spear carrier - the Futures Industry Association - speak with passion as to the competitive advantages that customers would enjoy if market regulators would mandate a single central clearing organization and "fungibility."

Then wouldn't life be grand! The primary dealers could send their customers' orders to the "New Dealer Exchange" - where they execute more rhythm chords on air guitars than futures contracts - or the son of BrokerTec, or a crater on the surface of the moon. Afterwards, the executed order would be cleared at a central clearing organization. Hey, wait a sec!

Wouldn't the old BOTCC be the perfect clearing organization? It hasn't cleared much more than its throat since dealer firms hijacked it. They
could really use the work.

The proponents of fungibility point to the customer savings resulting from a "centralized" clearing organization to deflect your attention away from the price fragmenting effects of trading the same contract on different exchanges. The fact is "central clearing" and "fungibility" need not travel together like two nuns joined at the hip. They should be measured on their individual merits.

Most market participants would probably agree that the pursuit of centralized clearing offers the very real potential for reductions in staff, cross-margin savings and reduced fees. But when the one eyed king offers up the gift of centralized clearing, it is a Trojan horse that secretly contains the demon of fungibility and the death of transparency. His passion for inter-exchange competition is a smoke screen and no more the central theme of market enhancement than the characters, Rosencrantz and Guildenstern, are central to the theme of Hamlet.

The core value in any financial transaction is the bid offer spread - is now, and always will be. One contract in bond futures represents a $100,000 notional value in treasury bonds. That contract executed on the CME will cost a nickel to clear, and total CME fees average less than 60 cents a contract. Well, what if the contract was fungible and could be executed on the "New Dealer Exchange," the N.D.E.? Will the competitive forces unleashed by the pent up horde of NDE air-guitarists drive that clearing fee of a nickel down to four cents or a penny? The exchange fee a dime? Get a grip. Let's see.is the one-eyed king moving his customer's order to the NDE to save a dime in exchange fees? Or is he looking to take the other side of that customer's order and bring the $31.25 bid/offer spread to his own bottom line, without the interference of competition or hazard of risk?

But what's the harm, you might ask? So what if bond dealers trade against their customer orders on the New Dealer Exchange? The dealers will probably give the customer the same price he would have gotten on the dominant exchange, unless it is a "block trade" (which could result in the customer getting a worse price than the exchange). And so what if the dealer got the edge instead of the central market participants? Why not just let the customer, or his advocate the broker/dealer (did I say advocate?), decide on which exchange he wants to execute his order? Maybe he's a Goldman stock holder?

At risk of belaboring the point, the reason we have such tight bid offer spreads in Eurodollar and Treasury futures contracts is because trading volume has amassed in one central market - on price information. This is where the rubber meets the road. The trade and price are illuminated for all to see and nothing trades behind the market's back. In this central auction market all participants are paying their price information into the market, and for that we all receive complete price information. Allow the one-eyed King to route business away from the central market, so that he can trade against his customer orders, and the value of immediate price information is being denied to all market participants except the two engaged in the off exchange trade.

Everyone wants accurate price information. It's a fundamental input to any investing, trading or hedging strategy. But still, we would like our information to be just a little better than yours. Well, it just doesn't work that way! Only when we all pay in and transact every trade in the light of day do we all get accurate price information and the best price.

Look down the road just a bit. What if we allow one group of market participants to route business away from the central market? What happens to those disenfranchised thousands of central market participants who are driving price to its sharp focus and deep liquidity? We would have a situation where a market participant has taken a risk by making a market-improving bid on price, and is first in line of all bidders. What happens to him and our prized myriad of competing market participants when we allow a dealer to pirate a customer's order to another exchange, so that he can step in front of the bid queue and grab the other side of his customer's order without risk or competition?

The answer is as obvious as Dolly Parton. As business is routed away from those who compete to those who don't, the disenfranchised participants who take risk, making markets but don't get rewarded with the trade, will eventually leave the uneven playing field. And as they leave, our precious bid/offer spread will widen, and once again, be defined by the one-eyed man in the land of the blind. Are those the primary dealers I hear humming the Hallelujah chorus in the background?

Granted, the strategic weapons of internalization, "block trading," and fungibility will require a change in the law before they can become active agents of the dark side. But tactical weapons in the war against transparency are in place and being used today. I note with interest the recent reports that regulatory agencies are examining the activities of repo traders at several dealers, for trading patterns that would evidence market manipulation. I think it speaks volumes that the manager of one primary dealer repo desks resigned or took leave of absence just days after senior management was contacted by regulators. Regulators who merely sought to discuss the unusual price movement in the cheapest to deliver two-year treasury note.

"Whether it's in the back seat of a Chevy, or at the desk of a government securities dealer, manipulation is most successfully conducted in the dark."
I can't remember who said that, but it's why these investigations should also examine the primary dealers' hand in forcing repo brokers to black out the repo screens of their non-dealer customers.

We can hear the one-eyed king, "Hey, if we can't deny non-dealers access to the brokers' trading screens, let's do the next best thing. Let's keep them from seeing the market screens for overnight and term financing rates on specific government issues. You know, it's not the easiest transaction to squeeze a particular security, but if we can keep the pigeons in the dark while we are setting up our squeeze, then we'll bag the lot of them by their shorts.no pun intended."

Fact is, I know a bit about this; in early 2004 the largest of the three repo brokers pulled their screens from our partnership. A month later so did the other two. Now, undoubtedly there are brighter curve traders out there. Mere pups, with tighter synapses and access to computers more sophisticated than my Commodore 64 or Atari Super Pong. And perhaps they can price the curve using "Fung shui" without so much as a backward glance at repo rates? But I can't. And so the one-eyed king had effectively put, at least, one competitor on the sidelines.

Turns out, I am not alone. I hear regularly from former associates at
larger hedge funds and money managers, of how their own screens have been turned off as the cyclops works his way up the food chain. Unlike me, those traders are saddled with a strong work ethic and the curse of youth, so they continue to trade, but with diminished results for their clients. Yes, I asked. and, no they don't want me mentioning their names and possibly upsetting existing trading relationships.bunch a sissies. However, ALL of them would be willing to talk to any regulatory agency that wishes to know about their experience. Go ahead call my bluff.

In summary, the issues of internalization, "block trading," fungibility are all designed by proponents of the "negotiated market." Their goal is to allow dealers to trade against their customer orders, insulated from the price improving forces of competition. Should these issues become part of the futures market landscape, they promise to degrade the equitable principles of fair trade, neuter the "central auction" and its power of a single best price, and irreparably injure investors, taxpayers and the public interest.

During my forty years, it seems that our securities or futures market regulators have consistently sought to enact and enforce regulation designed to promote competition, lower cost and improve liquidity. And so I expect that the Trojan horse offered us by the negotiated market will remain outside the central auction market's gate. However, if we are about to change our priorities, detour back to yesterday and return to the land of the blind, where price is cloaked in mystery and the one-eyed man is once again king.hmmmm???.

Hey Dennis, is it still 'Regular' with one sugar?

Sincerely,

Bill Dudley,
Former Institutional Bond Salesman, Merrill Lynch Former Member of Advisory Board to the Chairman Merrill Lynch, GSI Former Financial Futures Dept. Manager, Paine Webber Former Partner, Kidder Peabody, Inc.
Former Board Member, National Futures Assn.
_________________
Regards,

John Lothian Newsletter

CME Group :: Will CME Close the Nymex deal within the 30 day deadline?

Author: John Lothian Newsletter
Subject: Will CME Close the Nymex deal within the 30 day deadline?
Posted: Wed Feb 20, 2008 6:41 pm (GMT -5)
Topic Replies: 0

Take this poll. Will the CME close the Nymex deal by the time their 30-day exclusive negotiating period expires?
_________________
Regards,

John Lothian Newsletter

CME Group :: Jack Shelley, Family Written Obituary

Author: John Lothian Newsletter
Subject: Jack Shelley, Family Written Obituary
Posted: Wed Jan 02, 2008 2:21 pm (GMT -5)
Topic Replies: 0

Daniel John �Jack� Shelley was taken unto the Lord 29 December, 2007 at the age of 80 years old. He passed at the Eisenhower Medical center in Rancho Mirage CA. Jack was born 27 September 1927 to Daniel Brennan Shelley, a Postal Clerk and semi-professional Jazz drummer, and Martha Eiden Shelley, who proudly chose the title of housewife.
He grew up on the North Side of Chicago with his sisters Nancy and Mary. He attended Saint George High School where he played Basketball and Football. During the summers of his High School years he worked as a lifeguard on the Chicago lakefront. These were the years of World War Two and he would often regale you with the tales of the Navy pilots practicing their take-offs and landings on the side-wheel carries Sable and Wolverine. It was the fascination with the Navy that drove him to enlist in 1946 and to serve again during the Korean conflict.

Jack started out wanting to be a dentist but a summer intern position with Merrill-Lynch brought him to the Chicago Board of Trade. After his second Navy tour he returned to the board, ultimately becoming a full member in May of 1952. He bought and sold wheat for the Cargill and Continental Grain companies for 53 years, becoming the longest serving member of the Board of Trade. His career was marked by the first grain trades with the old Soviet Union and with China and culminated as the largest trader of wheat on the floor of the Chicago Board of Trade.

Jack was a garrulous adventurer who loved skiing, scuba-diving, and piloting many different types of aircraft. He would recount tales of skiing in Europe and America with instructors who would later gain fame in the sport. He truly enjoyed being a pilot because it gave him the opportunity to share the experience of soaring through the sky with whomever he was sharing the cockpit with.

He had a selfless nature and would help anyone who asked. His efforts with the American Foreign Student program brought teenagers from 50 foreign countries to the U.S. to experience what a normal life was like in America. He enjoyed nothing more than having a large group of people at his home, providing excellent food and conversation, whether they be his son�s classmates or the extended family in town for his parent�s fiftieth wedding anniversary. His most favorite deed was to take photographs of people having fun doing the most ordinary of things.

Jack�s love of golf led to retirement at the Rancho La Quinta Country Club in La Quinta CA in 1995. He was a devoted parishioner to the St Francis of Assisi Cathedral in La Quinta. Even in retirement , he enjoyed attending Career Days at Amelia Earhardt Elementary School, sharing with his granddaughter�s classmates his work experiences and the unique hand signals used in the grain trade.

Daniel John �Jack� Shelley is survived by his wife Betty Farmer Shelley, the light of his life.

He is also survived by his sister, Mary Carroll and the children who lovingly called him �father�: Matthew Shelley, Ann Shelley Prosser, Paul Shelley, Jeff Moran, Bing Farmer, Matthew Farmer, Andrew Farmer, Katherine Farmer Quintana and eleven wonderful grandchildren. Funeral services will be held at Saint Francis of Assisi Cathedral in La Quinta, California at 12:30 on the 4th of January, 2008. The family has requested that in lieu of flowers donations be made to the charity of your choice.
_________________
Regards,

John Lothian Newsletter

December 2007 JLN Archives :: December 6, 2007

Author: John Lothian Newsletter
Subject: December 6, 2007
Posted: Thu Dec 06, 2007 4:48 pm (GMT -5)
Topic Replies: 0

December 6, 2007
ISSN 1935-4851
www.johnlothiannewsletter.com

Observations - Statistics - Commentary

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Lead Stories

NYMEX Confirms To Launch Carbon Emissions Trading In Weeks
LONDON -(Dow Jones)- The New York Mercantile Exchange will announce a plan to launch carbon emissions trading in the coming weeks, a NYMEX spokeswoman confirmed Thursday.
This follows reports Wednesday, citing NYMEX Chairman Richard Schaeffer saying NYMEX was in the advanced stages of launching a global plan for emissions trading.
http://www.nasdaq.com/aspxcontent/NewsStory.aspx?cpath=20071206%5cACQDJON200712061239DOWJONESDJONLINE001013.htm&

THE 'BANKRUPT' PLAN FOR SUBPRIME RESCUE
By PAUL THARP
As the political tangle thickens over who'll help cash-strapped homeowners fight foreclosures, Congress is floating a new fix of its own - in old-fashioned bankruptcy courts. The House and...more >
http://www.nypost.com/seven/12062007/business/the_bankrupt_plan_for_subprime_rescue_798600.htm

**** �We are from the government and we are here to help.�

House prices seen falling 30 pct
By Julie Haviv
NEW YORK (Reuters) - Housing markets from Punta Gorda, Florida, to Stockton, California, will crash and suffer price drops of more than 30 percent before the housing crisis is over, a report from Moody's Economy.com said on Thursday. On a national level, the housing market recession will continue through early 2009, said the report, co-authored by Mark Zandi, chief economist, and Celia Chen, director of housing economics. The report paints a worsening picture of the hard-hit housing sector, which is in the midst of its worst downturn since World War II.
http://news.yahoo.com/s/nm/20071206/bs_nm/usa_economy_housing_dc;_ylt=Ag0sCmNO3t3vdF2GBSX3lDkDW7oF

**** Thank goodness I am long 1 house and short the MrMansion my wife wants.

A Movie and Protesters Single Out Henry Kravis
By ANDREW ROSS SORKIN
The reaction against the wealth created by private equity funds has become part of a populist movement.
Bells will be ringing, and carolers will be greeting the Upper East Side neighbors of Henry Kravis this morning. It may be Christmastime, but the revelers are not there to embrace the holiday. They will be outside the apartment of Mr. Kravis, a founder of the buyout firm Kohlberg Kravis Roberts, for a sidewalk screening of the first of a series of short films crusading against private equity firms. Passers-by can catch the film on high-technology sandwich boards being worn by protesters. The movie, �The War on Greed, Starring the Homes of Henry Kravis,� is a tongue-in-cheek story � think �Lifestyles of the Rich and Famous� meets �Roger & Me� � detailing Mr. Kravis�s homes and lifestyle, juxtaposed against the homes and incomes of working families.
http://www.nytimes.com/2007/12/06/business/06equity.html?ref=business

Flaherty to introduce legislation for common securities regulator
Model will favour UK-style principles-based regulation
http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=42269&IdSection=8&cat=8

UK rejects Italian calls for single EU regulator
Victoria Pennington
Alistair Darling categorically rejects the idea of a single financial regulator for Europe
http://www.opriskandcompliance.com/public/showPage.html?page=661438

Wary of Risk, Bankers Sold Shaky Mortgage Debt
As the subprime loan crisis deepens, Wall Street firms are increasingly coming under scrutiny for their role in selling risky mortgage-related securities to investors. Many of the home loans tied to these investments quickly defaulted, resulting in billions of dollars of losses for investors. At the same time, The New York Times says, many of the companies that sold these securities, concerned about a looming meltdown in the housing market, protected themselves from losses.
http://dealbook.blogs.nytimes.com/2007/12/06/wary-of-risk-bankers-sold-shaky-mortgage-debt/

Commodity investor sophistication increasing, says Barclays Capital
A survey of 150 Barclays Capital clients has found that half expect to have more than a 10% exposure to commodities in their portfolios, a threefold increase from a similar poll carried out in 2005.
http://www.energyrisk.com/public/showPage.html?page=661788

Sentinel execs: Dismiss lawsuit
Filing says trustee lacks standing to recover $350 million
Top executives of Northbrook-based money manager Sentinel Management Group Inc. have asked a court to throw out a $350 million lawsuit filed against them in the firm's bankruptcy case, saying Sentinel's court-appointed trustee lacks standing to recover money for the firm's customers.
http://www.chicagotribune.com/business/chi-thu_sentinel_1206dec06,0,3777104.story

Deutsche B�rse Commodities Enters Commodities Trading Market
Joint venture formed with seven well-known partners/ Trading of first product �Xetra-Gold� scheduled for 14 December/ Aim to offer innovative commodities securitizations
http://deutsche-boerse.com/dbag/dispatch/en/listcontent/gdb_navigation/press/10_Latest_Press_Releases/Content_Files/13_press/December_2007/pm_news_xetra_gold_061207.htm

Francioni Appointed CEO of Deutsche B�rse for a Further Five Years
http://deutsche-boerse.com/dbag/dispatch/en/listcontent/gdb_navigation/press/10_Latest_Press_Releases/Content_Files/13_press/December_2007/pm_news_francioni_061207.htm

BSE feels the jitters as NSE ramps up F&O segment
MUMBAI: The National Stock Exchange�s (NSE) move to steadily expand the list of securities eligible for futures and options (F&O) trading is giving a fresh headache to its arch rival, the Bombay Stock Exchange (BSE).
http://economictimes.indiatimes.com/Analysis/BSE_feels_the_jitters_as_NSE_ramps_up_FO_segment/articleshow/2598961.cms

Dubai Mercantile Exchange marks first six months with more new trading records in November
The Dubai Mercantile Exchange Limited (DME) today reported further trading records in November as the Exchange marked its first six months with continued steady growth.
http://www.ameinfo.com/140948.html

DUBAI MERCANTILE EXCHANGE MARKS FIRST SIX MONTHS WITH MORE NEW TRADING RECORDS IN NOVEMBER
Steady Growth Continues As Volume, Open Interest and Physical Delivery Hit New Highs
Dubai � 6 December, 2007: The Dubai Mercantile Exchange Limited (DME) today reported further trading records in November as the Exchange marked its first six months with continued steady growth. The DME�s benchmark Oman Crude Oil Futures Contract traded a total of 42,658 contracts during November, beating the previous record of 39,885 set the month before. Average daily volume was 2,027, up from 1,734 in October. Since the DME, the Middle East�s first energy futures and commodities exchange, launched on 1 June 2007 exchange-wide trading has reached a total of 196,131 contracts by the close of November trading. The DME has also seen active trading of its Oman contract as far out as December 2009.

Russell hires top talent to manage index growth
Horowitz to expand client service capability
TACOMA, Wash. � In an effort to manage the increasing usage of Russell Indexes as the equity benchmarks of choice, Russell Investments has hired Dorsey Horowitz to serve as client executive on its New York-based team. Horowitz previously managed the global client service team for MSCI Barra, which also is based in New York. �Dorsey brings a wealth of knowledge and experience to our team,� said Lori Richards, director, Russell Index Client Service. �Her skills, particularly in product enhancement and development as well as ETF strategies, are highly regarded.�

RTS to be First ISV to Deliver The Bond Buyer's RapiData Digital Economic Data Feed
FRANKFURT, Germany and CHICAGO, Dec. 5 /PRNewswire/ -- RTS Realtime Systems Group (RTS), a leading independent software vendor (ISV), today announced an agreement with The Bond Buyer's RapiData to become the first ISV to provide its users with direct access to RapiData's new low latency digital economic data feed.
http://www.forbes.com/prnewswire/feeds/prnewswire/2007/12/05/prnewswire200712050730PR_NEWS_USPR_____CLW008.html

Environmental Trading News

Ethanol Lobbyists Begin Drive to Use Richer Blend
By MATTHEW L. WALD
Ethanol advocates began a push Wednesday to allow ordinary cars to run on blends of 20 or 30 percent ethanol, compared with 10 percent currently.
http://www.nytimes.com/2007/12/06/business/06ethanol.html?ref=business

EEX and Eurex Launch CO2 Trading Cooperation
EEX order book open for Eurex participants
http://deutsche-boerse.com/dbag/dispatch/en/listcontent/gdb_navigation/press/10_Latest_Press_Releases/Content_Files/13_press/December_2007/pm_news_eex-eurex_061207.htm
http://www.eex.com/en/Press%20Room/Press%20Release/press/27588
http://www.eurexchange.com/about/press/press_543_en.html

EEX: Margin Parameters for Cooperation Product F2PE
http://www.eurexchange.com/download/documents/circulars/cf2572007e.pdf

Barclays index taps carbon trading
Barclays Capital will launch on Thursday a new investment benchmark to tap into the rapidly maturing carbon trading market.
http://news.yahoo.com/s/ft/20071206/bs_ft/fto120520072058026964;_ylt=Akar0RJd9x80s8LL_8CAMWr2ULEF

For more environmental trading news, subscribe to the Environmental Markets version of the John Lothian Newsletter edited by Jim Kharouf.
Click here to subscribe: jimkharouf-request@johnlothiannewsletter.com?subject=subscribe

Exchange & ECN News

Does The Closing Bell Toll For The NYSE Floor?
By David Weidner
NEW YORK (Dow Jones) -- An important symbol of American capitalism, the New York Stock Exchange trading floor, could be gone in a matter of months. There is ample evidence of its demise. Its two main participants, specialists and floor brokers, have seen their ranks thin to skeletal proportions. Three of the exchange's five trading floors have closed.
http://www.nasdaq.com/aspxcontent/NewsStory.aspx?cpath=20071205%5cACQDJON200712052355DOWJONESDJONLINE001054.htm&

eSpeed to Webcast December 13, 2007 Annual Meeting of Shareholders
NEW YORK----eSpeed, Inc. , a leading developer of electronic marketplaces and related trading technology for the global capital markets, today announced that it will webcast its Annual Meeting of Stockholders.
http://biz.yahoo.com/bw/071206/20071206005907.html?.v=1

American Stock Exchange and Victoria Bay Asset Management Launch United States 12 Month Oil Fund
http://money.cnn.com/news/newsfeeds/articles/prnewswire/NYTH08906122007-1.htm

Nymex chair: No talks with NYSE Euronext
Nymex Holdings, Inc., parent company of the New York Mercantile Exchange Inc., isn't in merger talks with NYSE Euronext Inc., Nymex Chairman Richard Schaeffer said Wednesday.
http://www.businessweek.com/ap/financialnews/D8TBF1781.htm

Borsa Italiana Monthly Key Figures - November 2007
http://www.mondovisione.com/index.cfm?section=news&action=detail&id=71262

Instruments in Cash Market CCP - Amendments
http://www.eurexchange.com/download/documents/circulars/cfni1102007e.pdf

PHLX Announces November Volume
http://www.phlx.com/news/pr2007/07pr120607.htm

SGX INTRODUCES NEW WATCH-LIST FOR MAINBOARD COMPANIES TO HEIGHTEN MARKET TRANSPARENCY
http://info.sgx.com/webnewscentre.nsf/bcb6f015b16e5258482569a7001af139/48256838002f07b1482573a900357b7b?OpenDocument

2008 Special Olympics Canada National Winter Games Opens the Market
Special Olympians Stephanie Rowe and Brian Bell opened the market today. TSX Group Inc. has pledged $100,000 to sponsor the 2008 Special Olympics Canada (SOC) National Winter Games. The 7th SOC National Winter Games will take place in Quebec City from February 26th to March 1st in conjunction with Quebec City�s 400th anniversary. For more information, please visit www.osquebec2008.com.

Toronto Stock Exchange Stats for the Month of November 2007
http://www.tsx.com/en/news_events/news_releases/12-6-2007_TSX-MonthlyStatsNov2007.html

Top 20 Largest Consolidated Short Position Report - November 30, 2007
http://www.tsx.com/en/news_events/news_releases/12-5-2007_TSX-ShortReportNov30-07.html

Abbreviated Processing Schedule
http://www.cboe.org/publish/InfoCir/IC07-196.pdf

Ability to Quote 1-up Markets During Hybrid Opening System ("HOSS") Rotations
http://www.cboe.org/publish/RegCir/RG07-132.pdf

Regulatory News

The SEC News Digest
The SEC News Digest provides daily information on recent Commission actions, including enforcement proceedings, rule filings, policy statements, and upcoming Commission meetings.
http://www.sec.gov/news/digest/2007/dig120507.htm

Beware of investment scams
FBI says consumers need to know risks of financial deals promising high returns
http://www.thestate.com/business/story/249722.html

Thinking Outside the Cox
With the departure of the S.E.C.'s enforcement division's deputy director and the clock ticking on the chairman, people are starting to think about the agency's future.
http://biz.yahoo.com/portfolio/071205/dcrac4e12dfecc423253c448c31ea98a8dd.html?.v=3

London's Financial Markets and the FSA's approach to financial regulation
Speech by Verena Ross, Director, Strategy & Risk, FSA
http://www.fsa.gov.uk/pages/Library/Communication/Speeches/2007/1204_vr.shtml

Speech � Assistant Secretary Ryan on the Reassessment of Risk in the Capital Markets
The following is a speech by Assistant Secretary for Financial Markets Anthony W. Ryan at the Euromoney Euro Fixed Income Forum.
http://www.garp.com/resources/newsfeed.asp?Category=6&MyFile=2007-12-06-15697.html

CFTC Seeks Public Comment on Exemption Requests from ICE Clear U.S., Inc. and ICE Futures U.S. Involving Certain Coffee, Sugar, and Cocoa Swaps
Washington, DC � The Commodity Futures Trading Commission (CFTC) is requesting public comment on two requests submitted by ICE Clear U.S., Inc. (ICE Clear), a registered derivatives clearing organization, and one request submitted by ICE Futures U.S. (ICE Futures), a designated contract market.
http://www.cftc.gov/newsroom/generalpressreleases/2007/pr5419-07.html

IDA expels Graydon Elliott Capital
http://www.investmentexecutive.com/client/en/News/DetailNews.asp?id=42219&IdSection=8&cat=8&BImageCI=1

The Rise of Sovereign Business: Gauer Distinguished Lecture in Law and Policy at the American Enterprise Institute Legal Center for the Public Interest by Chairman Christopher Cox, Washington, DC
http://www.sec.gov/news/speech/2007/spch120507cc.htm

CFTC Revokes the Introducing Broker Registrations of Next Financial Services Unlimited and New World Trading
http://www.cftc.gov/newsroom/enforcementpressreleases/2007/pr5418-07.html

Hamilton Williams LLC
http://www.nfa.futures.org/basicnet/Case.aspx?entityid=0358241&case=07BCC00015&contrib=NFA

NFA takes emergency enforcement action against California forex firm, Forex Liquidity LLC
http://www.nfa.futures.org/news/newsRel.asp?ArticleID=2027

Forex Liquidity LLC
http://www.nfa.futures.org/basicnet/Case.aspx?entityid=0362216&case=07MRA00013&contrib=NFA

Tradeco Clearing Group LLC
http://www.nfa.futures.org/basicnet/Case.aspx?entityid=0359745&case=07BCC00031&contrib=NFA

Christ Investment Service LLC and Molly Lau
http://www.nfa.futures.org/basicnet/Case.aspx?entityid=0362827&case=07BCC00032&contrib=NFA
http://www.nfa.futures.org/basicnet/Case.aspx?entityid=0367137&case=07BCC00032&contrib=NFA

Mansur Capital Corporation
http://www.nfa.futures.org/basicnet/Case.aspx?entityid=0317517&case=07BCC00039&contrib=NFA

SEC's Office of Interactive Disclosure Urges Public Comment as Interactive Data Moves Closer to Reality for Investors
http://www.sec.gov/news/press/2007/2007-253.htm

John Loesch Named Deputy Director in SEC's Office of Investor Education and Advocacy
http://www.sec.gov/news/press/2007/2007-252.htm

Investments - Indexes - Managed Futures - Managed Funds

Thomas H. Lee Partners Raises $8.1 Billion LBO Fund (Update2)
Dec. 5 (Bloomberg) -- Thomas H. Lee Partners LP raised $8.1 billion for leveraged buyouts, a sign that investors expect LBOs to rebound after financing for the biggest deals dried up.
http://www.bloomberg.com/apps/news?pid=20601103&sid=aVk1wYjgPlpE

Industry Risk � A New Model For Pension Fund Management
UK pension plan sponsors have begun to construct the investment framework through which they will manage existing final salary plans down to zero over the next generation while ransitioning employees to defined contribution structures.
http://www.garp.com/resources/newsfeed.asp?Category=6&MyFile=2007-12-06-15701.html

SIVs 'Super Fund' May Be Scaled Back
The $100 billion "super fund" aimed at helping SIVs may be scaled back due to a low interest from the plan's beneficiaries.
http://online.wsj.com/article/SB119690966259515416.html?mod=hps_us_whats_news

Florida Investment Fund Reopens
Florida reopened a state-run investment pool that was frozen last week to avoid a run among nervous investors. Investors promptly withdrew $1.2 billion.
http://online.wsj.com/article/SB119695297263815812.html?mod=hps_us_whats_news

Synthetic CDO AAA tranches a bargain for the braveReuters Thursday December 6 2007
By Jane Baird
LONDON, Dec 6 (Reuters) - The top slices of some collateralised debt obligations (CDOs) are a bargain, credit strategists say, but suitable only for investors with the balance sheet and stomach to weather potential mark-to-market losses. This opportunity in triple-A tranches of the investment-grade synthetic CDO market has been open for weeks thanks to the credit crisis and may be available for weeks to come. Few investors are able to seize it.
http://www.guardian.co.uk/feedarticle?id=7131673

Merrill Lynch braced for �up to $12bn� debt write-down
WALL Street giant Merrill Lynch could write off as much as $12bn (�5.8bn, e8.2bn) in bad debts relating to the continuing sub-prime loans crisis during the fourth quarter, according to City analysis. Fears are growing that Merrill Lynch, which ousted chairman and chief executive Stan O�Neal in October after a third-quarter write-down of $8.4bn, will be hit hard during the final three months.
http://www.thebusiness.co.uk/the-magazine/news/388321/merrill-lynch-braced-for-up-to-and3612bn-debt-writedown.thtml

November 2007 Performance Review Of The Dow Jones Hedge Fund Strategy Benchmarks - A Monthly Report From Dow Jones Indexes On The Performance Of The Dow Jones Hedge Fund Strategy Benchmarks
http://www.mondovisione.com/index.cfm?section=news&action=detail&id=71254

Asking for 401(k) advice can be good investment of your time
http://www.chicagotribune.com/business/chi-thu_smart_1206dec06,0,2363951.story

The Hot Money's on Cheaper Oil
After months of betting on an increase in oil prices, some speculators now see a new downward trend
http://www.businessweek.com/bwdaily/dnflash/content/dec2007/db2007125_087321.htm?chan=top+news_top+news+index_businessweek+exclusives

California's Orange County funds in focus
California's Orange County had invested more than $419m in structured investment vehicles that were at risk of being downgraded, Chriss Street, its treasurer, said.
http://news.yahoo.com/s/ft/20071205/bs_ft/fto120520071643016918;_ylt=ApCtC0VhK.oWxyR289hDFjz2ULEF

Florida state fund to reopen for withdrawals: WSJ
NEW YORK (Reuters) - A subprime-stricken $14 billion investment pool for local governments in Florida will allow withdrawals for the first time in a week starting on Thursday, The Wall Street Journal reported.
http://news.yahoo.com/s/nm/20071206/bs_nm/florida_fund_withdrawals_dc;_ylt=AhO4ItxuULDllUx5IVwPR06573QA

SIV super fund may be half planned size: WSJ
NEW YORK (Reuters) - The three U.S. banks assembling a super fund aimed at alleviating the global credit crunch are scaling back its size due to a lack of interest from the financial firms it's supposed to help, the Wall Street Journal said in its online edition, citing sources familiar with the matter.
http://news.yahoo.com/s/nm/20071206/bs_nm/sivfund_support_dc;_ylt=AuXaCevLPQg.UiCCHgFs4uW573QA

Reports

Briefing.com Economic Calendar
http://www.briefing.com/Investor/Public/MarketAnalysis/Calendars/EconomicCalendar.htm

USDA Today
http://www.nass.usda.gov/Publications/index.asp

Event Calendar
The CBOT Event Calendar provides a list of current US and global events for the upcoming year.
http://www.cbot.com/cbot/calendar/month

CBOE Events Calendar
http://www.cboe.com/AboutCBOE/EventCalendar.aspx

Economic Release Calendar
The Economic Release Calendar (PDF) is a schedule of government, academic and industry economic releases, provided as a service to CME customers.
http://www.cme.com/files/economicreleasecalendar.pdf

Miscellaneous News

Credit Risk - Survival of the Fittest
The survival-of-the-fittest maxim Darwin spent a lifetime preaching applies to nearly everything. The world of finance is no different.
http://www.garp.com/resources/newsfeed.asp?Category=6&MyFile=2007-12-06-15702.html

WAMU CLOSING BROKER
By RODDY BOYD
The brokerage unit of West Coast banking giant Washington Mutual appears to be on the verge of closing, according to a number of sources on Wall Street. WaMu Capital Corp., a mortgage-backed...
http://www.nypost.com/seven/12062007/business/wamu_closing_broker_45521.htm

Doctoroff Is Leaving Bloomberg Administration
Daniel L. Doctoroff, one of the mayor�s closest advisers since 2002, will leave his post at the end of this year to become the president of Bloomberg L.P.
http://cityroom.blogs.nytimes.com/2007/12/06/doctoroff-is-leaving-bloomberg-administration/index.html?ref=business

Penson Worldwide, Inc. Board Authorizes Additional $12.5 Million for Common Stock Buyback Program
DALLAS, Dec 06, 2007 (BUSINESS WIRE) -- PNSN | charts | news | PowerRating -- Penson Worldwide, Inc. (NASDAQ: PNSN), a leading provider of execution, clearing and technology services for global financial markets, announced today that its Board of Directors has authorized the expenditure of up to an additional $12.5 million to buy back Company common stock, bringing its total buyback authorization since July 2007 to $37.5 million.
http://www.tradingmarkets.com/.site/news/Stock%20News/890367/

Deutsche's Ackermann told Citi's Rubin: Nein
Mark off Deutsche Bank AG CEO Josef Ackermann as another banker who refused the corner office suite at troubled Citigroup Inc. Ackermann becomes the second European to reportedly turn down an "offer" for the position Chuck Prince left last month. Citigroup chair Robert Rubin reportedly made an informal offer last month to Royal Bank of Scotland Group plc's CEO, Sir Fred Goodwin, according to reports in the British press.
http://dealscape.thedealblogs.com/2007/12/deutsches_ackermann_told_citis.php

AIG Details Its Credit Situation
By LAVONNE KUYKENDALL
CHICAGO -- American International Group's direct residential mortgage- backed securities investments dropped in book value by about 2%, or between $1.7 billion and $1.8 billion, in the fourth quarter through November, said the insurer's investment chief Wednesday. But the change does not reflect a significant downturn for the company's investment portfolio, he said.
http://online.wsj.com/article/SB119687565174414605.html?mod=googlenews_wsj

With Blackstone, Worries Old and New
By KAREN RICHARDSON
Pity the poor Blackstone shareholder. Investors who bought shares of Blackstone Group LP from its initial public offering in June and held on to them have seen the stock price fall more than 30%. Old worries such as little disclosure about its investments; limited rights for its shareholders compared with its fund investors, or limited partners; and tax risk have weighed on Blackstone. And that has been compounded by the recent deal-chilling credit crunch.
http://online.wsj.com/article/SB119681909085713807.html?mod=googlenews_wsj

Euroclear Bank To Implement Substantial Fee Reductions In 2008
http://www.mondovisione.com/index.cfm?section=news&action=detail&id=71253

Cargill partners with Wildlife Conservation Society on global animal health, food security
http://www.cargill.com/news/news_releases/071204_wcspartnership.htm#TopOfPage

Hungarian independent financial service provider, Concorde Securities, to offer Direct Market Access to Budapest exchange via GL TRADE�s proprietary network
http://www.gltrade.fr/gltcom/jsp/index.jsp

Countrywide Enters 7-year Deal with Rolfe & Nolan Inc. for Back and Middle Office
http://www.rolfeandnolan.com/default.aspx.locid-0fdnew08m.Lang-EN.htm.RefLocID-0fd019009

AlphaMetrix, LLC Announces Heidi M. Rauh, former Executive Director and Senior Counsel with UBS Securities LLC, to Join Firm as General Counsel.
Heidi possesses formidable expertise in alternative investments
Chicago, IL (PRWEB) December 6, 2007 -- AlphaMetrix, LLC (www.alphametrix.com) today announced Heidi M. Rauh is joining the firm as General Counsel and the newest addition to its highly specialized team. Ms. Rauh most recently served as Executive Director and Senior Counsel, responsible for the Exchange Traded Derivatives Legal Department within UBS. She will move to AlphaMetrix in December 2007. Aleks Kins, founder and president of AlphaMetrix, announced the appointment.
http://www.prweb.com/releases/2007/12/prweb574537.htm

RCG and Farms Technology Announce Connection of Dynamic Pricing Platfom to RCG Onyx� API
http://www.rcgdirect.com/Common/Docs/RCG%20Farms%20Technology%20release.pdf

RBS sees writedowns of $2.6 billion
LONDON - Royal Bank of Scotland Group PLC shares jumped almost 8 percent Thursday after the bank reported a smaller writedown related to the U.S. subprime lending crisis than had been anticipated and said it would beat analyst expectations for full-year profits.
http://news.yahoo.com/s/ap/20071206/ap_on_bi_ge/britain_royal_bank_of_scotland;_ylt=Ak5SjglRMTalTfcsXHeDN6tu24cA

N.C. tries to get hay to cattle farmers
RALEIGH, N.C. - Gov. Mike Easley is urging North Carolina residents to redouble water conservation efforts through the holiday season, and officials will buy bales of hay for struggling farmers.
http://news.yahoo.com/s/ap/20071206/ap_on_bi_ge/farm_scene;_ylt=Ao8FiTdbdyX89Mr0D0Bt9Rpu24cA

Britain ready to nationalise Northern Rock if rescue bid fails: report
LONDON (AFP) - The British government has prepared emergency legislation to nationalise the distressed Northern Rock bank if a rescue falls through, a newspaper report said on Wednesday.
http://news.yahoo.com/s/afp/20071205/bs_afp/britainbankinglawcompanynationalisationnorthernrock_071205134455;_ylt=AlPli0Qm5q4.qbqRUvKRjVKmOrgF

Second benign year of gains for reinsurers
Hedge funds that have piled billions of dollars into reinsurance are poised for a second year of bumper returns after the 2007 hurricane season passed without a vicious windstorm striking US shores.
http://news.yahoo.com/s/ft/20071206/bs_ft/fto120520072143346970;_ylt=Au9PKzv5pxUQ_lCDIWiZDVn2ULEF

RBS allays worst fears before Bush mortgage plan
LONDON (Reuters) - Britain's second-biggest bank said it suffered less damage than widely feared from the global credit crisis as investors waited on Thursday for the detail of a rescue plan for U.S. homeowners from President George W. Bush.
http://news.yahoo.com/s/nm/20071206/bs_nm/economy_credit_dc;_ylt=ArrcgvewYP2qrxag1epMiJOyBhIF

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Futures Brokerage - Business Intelligence

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