CBOE and DRW Trading are working on a futures product that works like an OTC swap, with the goal of providing swap dealers with an alternate way (and alternate regulations) for working with swaps. The MF Global trustee says that at this point, they pretty much know where the money went, but they’re not sure how much of it they can get back. If that’s not enough MF Global news for you, you’ll also find comments from Jill Sommers of the CFTC; an update on trading in bankuptcy debt payments; and Louis Freeh says just kidding, we’re not really going to pay bonuses to the execs who are wrapping up the company. CME Group and FINRA say they’re working on a way to work more closely together in the future.

by Sarah Rudolph 

In what he said was his last speech as president of the Futures Industry Association, John Damgard was optimistic that Republicans would dominate both the Senate and the House in the next election, but not that they would be able to undo any of the provisions of the Dodd-Frank legislation to which they object.

Damgard told the Union League Club of Chicago that he expects the House to remain Republican and even gain a few more seats, and that the Senate will likely pick up four to six Republican seats. 

“The recent redistricting has guaranteed Republicans control of the House for the next 10 years,” he said. Odds are stacked against the Democrats, as super PACs are focused on supporting Republican House members, and the Republicans have stymied the Democrats with the Supercommittee, he added.

By John J. Lothian

When someone robs a bank and gets away with the money, they have something fungible (cash) and easily hid. While the authorities may be able to trace the serial numbers on the bills as they start to show up in circulation, there are no other official records for the physical bills to be traced.

The MF Global situation is different. Money is missing, like in a bank robbery, but the money all moved into and out of MF Global’s bank accounts where there are all kinds of physical and virtual records to trace the whereabouts and the end location of said funds.

There is a rational expectation that exchange regulators, market regulators, bank regulators, FBI investigators and Congressional investigators ought to be able to follow this chain of banking records to trace/discover where the money is. In fact, if they can’t, then this is a stinging indictment of our banking and brokerage system and God help us all.

The latest news on the MF Global bankruptcy and fallout, published in the John Lothian Newsletter (subscribe here) the morning of December 19, 2011.

In the wake of the MF Global bankruptcy, John Lothian Newsletter has created a special section on JohnLothianNewsletter.com devoted to news, information and commentary. The section features archived news stories featured in the John Lothian Newsletter, analysis and breaking news. Check regularly for updates. See the MF Global news section here.

CFTC Commissioner Jill Sommers says she knows where MF Global’s money went; she’s just waiting to hear whether it went there legally.  Javelin and CME Group announce that they’re clearing interest rate swaps in less than two seconds.  The SEC comes under fire once again for being hesitant to initiate major prosecutions of alleged financial wrongdoers.  In today’s top box, you’ll find an interview with George Pannekoek, the CEO of the Intellectual Property Exchange International.

The latest news on the MF Global bankruptcy and fallout, published in the John Lothian Newsletter (subscribe here) the morning of December 14, 2011.

In the wake of the MF Global bankruptcy, John Lothian Newsletter has created a special section on JohnLothianNewsletter.com devoted to news, information and commentary. The section features archived news stories featured in the John Lothian Newsletter, analysis and breaking news. Check regularly for updates. See the MF Global news section here.

For more on the U.S. Senate Committee on Agriculture’s MF Global investigation testimony, click here.

Video of today’s hearings, plus links to written testimony. View as one video here.

MF Global Investors (Panel I):

Featuring customers affected by the financial firm MF Global’s bankruptcy:

• Roger Hupfer, Grain Elevator Operator, Freeland Bean & Grain, Inc. (View written testimony – PDF)
• Jeffrey Hainline, President, Advanced Trading, Inc. (View written testimony – PDF)
• Dean Tofteland, Farmer in Luverne, MN (View written testimony – PDF)
• C.J. Blew, Farm/Rancher, Chairman of the Board, Board Director, Mid Kansas Cooperative Association, Board of CHS, Inc. (View written testimony – PDF)

Link to video.

This special report from the John Lothian Newsletter (subscribe here) includes the latest from the MF Global collapse, and the House Agriculture Committee meeting in which former MF Global CEO Jon Corzine made his first public appearance since leaving the firm several days after it filed for bankruptcy on October 31.

In the wake of the MF Global bankruptcy, John Lothian Newsletter has created a special section on JohnLothianNewsletter.com devoted to news, information and commentary. The section features archived news stories featured in the John Lothian Newsletter, analysis and breaking news. Check regularly for updates. See the MF Global news section here.

Robert Pickel is appointed CEO of ISDA. OCC announces options trading has exceeded 4 billion contracts for the first time. The CFTC announces Jill Sommers will lead the MF Global investigation, news JLN broke three days earlier.

The latest news on the MF Global bankruptcy and fallout, published in the John Lothian Newsletter the morning of November 11, 2011.

In the wake of the MF Global bankruptcy, John Lothian Newsletter has created a special section on JohnLothianNewsletter.com devoted to news, information and commentary. The section features archived news stories featured in the John Lothian Newsletter, analysis and breaking news. Check regularly for updates. See the MF Global news section here.