Inside these posts: Derivatives

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Nasdaq, ICE make rival bid for NYSE Euronext

Nasdaq OMX and IntercontinentalExchange on Friday announced a joint $11.3 billion bid to buy the parent company of the New York Stock Exchange, topping an offer by Germany’s Deutsche Boerse. Get the full story »

White House vetting Senate aide for CFTC spot

The White House is considering nominating Mark Wetjen, an aide to Senate Majority Leader Harry Reid, for a top job at the Commodity Futures Trading Commission, The Financial Times reported on Friday. Get the full story »

Options Clearing Corp. changes name to OCC

From Bloomberg | Chicago-based Options Clearing Corp. changed its name to OCC, according to a statement from the group which clears and settles all trading of U.S. exchange-listed equity derivatives contracts.

CME senior exec confident about U.S. position

The proposed combination of Europe’s biggest futures markets will do little to help NYSE Euronext and Deutsche Boerse AG compete against CME Group Inc. in the U.S., a senior CME executive said Tuesday.

“Putting together their pools of liquidity doesn’t really create competitive advantages for them,” said Jamie Parisi, chief financial officer for the Chicago-based exchange company, speaking at an event hosted by Raymond James. Get the full story »

NYSE to launch direct challenge to CME March 21

NYSE Euronext will launch its long-awaited challenge to CME Group’s lucrative interest rate futures franchise on March 21, the exchange operator said on Wednesday.

The launch highlights the importance of the derivatives business to the operator of the world’s best known stock exchange, which agreed last month to be taken over by Germany’s Deutsche Boerse AG. The combination would dominate European futures trading, even as the NYSE tries to win a foothold in U.S futures, where CME is the biggest player. Get the full story »

CME to offer margining plan for rates, Treasuries

CME Group Inc. on Monday unveiled a cross-margining plan that would help customers trading both interest rate and Treasury futures, as the world’s largest derivatives exchange prepares for more competition.

The move by the Chicago Mercantile Exchange parent to create a new clearing membership class comes weeks before rival NYSE Euronext is expected to launch a similar cross-margining platform. Get the full story »

Nasdaq, ICE consider bid on NYSE

Nasdaq OMX and IntercontinentalExchange are in talks to team up on a possible bid for NYSE Euronext, in an attempt to break up the Big Board’s deal with Deutsche Boerse, the New York Times’ Dealbook reported on Friday. Get the full story »

Regulator: Swap trading venues may miss deadline

Swaps trading venues, a centerpiece of legislation overhauling derivatives, may need to be phased in later than planned because many will miss an October 15 deadline for meeting self-policing requirements, a Chicago-based regulator said.

The potential delay, flagged late Tuesday by National Futures Association President Daniel Roth in comments to a group of Chicago trading executives, represents a potential new setback as regulators rush to write rules for the sweeping Wall Street reform, known as the Dodd-Frank act, that was passed last summer. Get the full story »

CME’s Duffy rejects CFTC user fee proposal

CME Group Inc. Executive Chairman Terry Duffy said a plan to allow U.S. futures regulators to charge user fees would harm U.S. exchanges trying to compete globally.

The proposal “could put us at the biggest disadvantage we’ve ever seen,” Duffy told reporters after a hearing in Washington. Get the full story »

CME Group says it’s focusing on ‘organic growth’

CME Group's offices at 30 S. Wacker Drive in Chicago, Feb 14, 2011. (Nancy Stone/Chicago Tribune)

CME Group Inc. said it remains committed to “organic growth” in derivatives trade, following speculation that the Chicago company may launch a rival bid for NYSE Euronext.

CME, one of the world’s largest operators of futures and options markets, was reported Monday to be exploring a possible offer for the Big Board parent, which is in advanced merger talks with Germany’s Deutsche Börse AG, with Nasdaq OMX Group Inc. as a potential partner in such a deal.

NYSE Euronext owns the NYSE Liffe derivatives market, which is strong in Europe. Get the full story »

CBOE architect Edmund O’Connor dies

Edmund O'Connor, third from left, then CBOE's vice chairman, at bell-ringing ceremony to mark the opening of the CBOE's second trading floor in 1974. (Courtesy CBOE)

Edmund O’Connor, the architect of the Chicago Board Options Exchange and for decades a major figure in Chicago’s derivatives-trading community, died early Monday. Get the full story »

CME prepays $420 million loan, saves $3 million

Derivatives exchange operator CME Group Inc. said Thursday it has paid off a $420 million loan to complete the refinancing of a three-year debt agreement.

The original credit and term loan agreement, due to mature in August, was replaced with a $1 billion revolving credit agreement with an expiration of January 2014. Get the full story »

CME sees jump in swaps clearing later this year

CME Group, which began clearing interest-rate swaps in October, expects a jump in business this year after a U.S. legislative mandate on clearing goes into effect, a CME executive said on Monday. Get the full story »

Has New York won the derivatives power struggle?

From Forbes | A New York Times article this weekend about how a “secretive banking elite,” as the headline put it, rules the derivatives trade. The story details how a secret cabal of bankers meet regularly with and control the risk committee at ICE Trust, part of the IntercontinentalExchange.

That came as no surprise to Forbes investment writer Emily Lambert. But what was even more interesting to her was the story’s description of the influence the dealers have at CME Group, the exchange company run by Chairman Terrence Duffy and Chief Executive Craig Donohue — indicating that in the long-running derivatives power struggle between New Yorkers and Chicagoans, the New Yorkers have won. Get the full story>>

SEC extending ‘circuit breakers’ for 4 months

Federal regulators are extending, for four months, the curbs put in after the May 6 market plunge that briefly halt trading of some stocks that make big price swings. Get the full story »