By John McCrank and Luke Jeffs, Reuters | December 21, 2012
IntercontinentalExchange's $8.2 billion takeover of New York Stock Exchange owner NYSE Euronext allows it to tap into a dramatic expansion of demand for clearing financial derivatives expected next year.
Goldman Sachs Group Inc said on
Tuesday the bank's senior management had never "seriously"
looked at spinning off all or part of its commodities business,
as the bank faces tougher regulations that restrict its trading.
High-frequency trading shops are having a difficult time in the current marketplace, as trading volumes remain extremely low. This week, Eladian closed its doors due to the weak market. Who will be next?
Bank dealers will lose 20 percent of their trading revenues when mandatory clearing of OTC derivatives begins, but they can recoup these lost revenues through "collateral optimization," contends Sungard's Daniel Parker.
Peregrine Financial Group's bankruptcy
trustee is seeking court approval to distribute $123 million to
former customers of the futures brokerage, the first they would
see of their funds since Peregrine's collapse in mid-July.
The California Public Employees'
Retirement System (CalPERS) lost 11 percent investing in
commodity derivatives in the last financial year, according to a
performance report published on Monday, making it the second
worst-performing asset class in the portfolio.
A CFTC panel agreed on the urgency of developing a technological solution for verification of funds in customer segregated accounts, but one industry veteran, warned not to wait until everything is perfect.
Wall Street’s take on ethics and the downfall of PFGBest dominated financial news this week, while the CFTC finally approved rules for derivatives trading and HSBC admitted that for years it had done next to nothing to prevent money laundering.