Nasdaq OMX plans to introduce contracts of steel on its futures exchange, with help from the World Steel Exchange. CME Group makes its own plans for new contracts, eyeing two new crude oil products by year’s end. Exchange operator Deutsche Börse is the combo breaker today, announcing not new contracts, but a new technology and service division.

Clearing company DTCC files a lawsuit, taking aim at regulator CFTC for creating a rules it says inappropriately favors competitor CME Group. Exchange CBOE suffers its second (though this time more limited) operational fault in a week. Hedge funds, struggling to find a decent place to sit and be profitable for a while, look to Japan for the first time in a while as economic policy shifts there make the country more intriguing.

FIA Principal Traders Group Responds to Wall Street Journal Article Alleging “Loophole” at CME

 Washington, D.C.—May 1, 2013—The Futures Industry Association Principal Traders Group issued the following response to an article in today’s Wall Street Journal alleging that high-frequency traders are taking advantage of a “loophole” in the CME Group’s market data systems.

 “We were surprised and disappointed at the misleading article published today by the Wall Street Journal. The article has taken an inherent feature of all markets out of context, grossly distorted its significance, and created a false impression that the CME’s markets are fundamentally unfair. In our view, exchanges should be commended for reducing the latency and variability in their trading systems, which leads to better market quality and lower trading costs.

Federal regulators, in a report that was prepared before yesterday, outline technology and platform risks as being significant to the health of the financial system. Yesterday, CBOE became the latest of many companies to highlight that trading on electronic systems is not 100 percent guaranteed. In the energy sector exchanges CME Group and ICE prepare to go head-to-head with new biofuels contracts.

Exchange CME Group announces the creation of a smaller and more retail-oriented 1K ounce silver contract. The London Stock Exchange continues to elbow its way toward the front of the ETF volume line in Europe. Singapore Exchange is taking a deeper look at last week’s trading delay to guard against future problems.

CME Group plans to list its iron ore futures products on Globex beginning in May, in a bid to boost participation. OTC market rule changes aren’t bothering the wholesale participants nearly as much as investors, who are far gloomier about the expected loss of business. Bank earnings are rolling in and looking great, and with those cheerier skies come worries that regulators may see opportunities to inject more clouds. In today’s First Read, take a look at JLN’s latest video interview; this time, Raj Mahajan of Allston Trading talks high-frequency trading with Jim Kharouf. And John Lothian makes a guest appearance with an update and a charitable opportunity.

Hong Kong Exchanges starts extended trading hours in some of their products, in a bid to capture increased volume from global participants. The government of France is calling on some of its largest banks to take a stake in the possible Euronext spinoff. CME Group considers Chile as a possible copper warehouse location, as the exchange’s copper contract accumulates more market share.

CME Group and Nasdaq OMX plan to launch a new wireless data service in May that will create a data link for high-frequency traders between Chicago and New York. In Europe, the launch date for Nasdaq’s new NLX market is pushed back as UK regulators continue to evaluate the clearing side of the venture. Tokyo Commodity Exchange plans to add the world’s first liquefied natural gas futures contract to its product list within the next two years… at which time we’ll find out if it really turned out to be a world first. This week, JLN welcomes Veronica Augustsson and team from Cinnober Financial Technology as guest editors of the John Lothian Newsletter.

ICE Clear Credit tosses plans to start single-name credit-default swap clearing after an SEC policy change caused heartburn on the buyside. Yesterday’s mini-option debut produced “respectable” volume across multiple venues. CME Group turns on the lights for its London interest rate swaps clearing service.

CME Group is considering listing trading products of alliance partners alongside its own in its new London trading venue. The head of Hong Kong Exchanges expects China to have open markets and a floating currency within five years. Following the implementation of a financial transaction tax, Italy notes a significant decline in trading volume.