Most Clicked FIA SmartBrief Stories


1. Open-outcry futures trading in Chicago to end 167-year run

FIA SmartBrief | Jul 06, 2015

Most of CME Group's open-outcry futures trading will end today. Pit trading has been overtaken by electronic venues to the point where the pits at Chicago Mercantile Exchange account for just 1% of overall volume. PBS (07/04) Chicago Sun-Times (free registration) (07/04) Reuters (07/06)


2. Commodities brokers face mounting challenges

FIA SmartBrief | Jul 02, 2015

Making a profit is increasingly challenging for commodities brokers who are paying more to comply with new rules, strengthen cybersecurity defenses and keep up with other demands. The number of futures commission merchants was 74 as of Jan. 1, compared with 93 last year and 154 before the financial crisis, according to the Commodity Futures Trading Commission. Reuters (07/01)


3. Chicago's commodity traders shift from pits to booths

FIA SmartBrief | Jul 02, 2015

CME Group's closure next week of most open-outcry futures trading in Chicago will likely prod some traders to quit as their work on the floor is replaced by keyboard strokes and a computer. Others, however, will shift to self-contained trading stations, which have replaced the booths where phone orders previously were taken. MarketWatch (07/01) Reuters (07/01)


4. Leap second passes with minor issues

FIA SmartBrief | Jul 02, 2015

Market participants were concerned an additional second Tuesday would cause havoc, but it passed relatively smoothly. Futures markets endured only minor issues, according to FIA. Some exchanges avoided the leap second, set at 8 p.m. Eastern, by opening late or closing early. Others, including exchanges in Japan and Australia, traded through the extra second and saw few issues. CNN (06/30) Bloomberg (06/30) The Wall Street Journal (tiered subscription model) (07/01)


5. Flow Traders plans to sell up to 40% of firm in IPO

FIA SmartBrief | Jul 01, 2015

Flow Traders, a high-frequency-trading company in Amsterdam, said its initial public offering could value the firm as high as €1.72 billion. "The level of interest we have seen in the investment community so far is very encouraging," said co-CEO Dennis Dijkstra. Financial Times (tiered subscription model) (06/30) The New York Times (tiered subscription model) (06/30) Reuters (06/30)


6. "Flash crash" continues to stymie regulators

FIA SmartBrief | Jul 01, 2015

The Securities and Exchange Commission launched the Equity Markets Structure Advisory Committee in mid-May to discuss the "flash crash" of May 2010 and try to determine what caused the incident and what can be done to prevent a repeat. Regulators have come up with possible causes, but critics have been quick to dismiss them. MarketWatch (06/30)


7. Goldman fined for 2013 options trading error

FIA SmartBrief | Jul 01, 2015

Goldman Sachs Group did not admit wrongdoing but will pay a US$7 million fine to the U.S. Securities and Exchange Commission over an options trading mistake that roiled markets in August 2013. The error sent out 16,000 mistaken options orders to different exchanges, leading to the execution of 1.5 million options contracts even though Goldman tried to cancel the orders. Bloomberg (06/30) FOW magazine online (subscription required) (06/30) Reuters (06/30)


8. Greek default not expected to trigger CDS payout

FIA SmartBrief | Jul 01, 2015

Greece's failure to repay the International Monetary Fund is unlikely to prompt a payout on credit default swaps covering the nation's debt, traders and analysts say. However, Greece could default on upcoming payments. "The country does not have sufficient liquidity to make bilateral and external debt payments [this] month, and that constitutes default and will trigger CDS contracts," said Louis Gargour, chief investment officer of LNG Capital. Bloomberg (07/01)


9. Nasdaq exec sees strong futures competition with CME, ICE

FIA SmartBrief | Jul 01, 2015

As Nasdaq Futures establishes its operations and enlists members, it has the model to compete with CME Group's Nymex and the Intercontinental Exchange, said Hans-Ole Jochumsen of Nasdaq. A partnership with OCC to clear natural gas, crude oil and power futures contracts at 4 cents per side and its use of the Nasdaq trading engine, GENIUM INET, could help keep down trading costs. John Lothian Newsletter (06/29)


10. EPTA wants capital-rules exemption for proprietary traders

FIA SmartBrief | Jul 06, 2015

The FIA European Principal Traders Association has called for Europe's capital-requirements regulation to feature a revised definition of "local firm" that will allow an exemption for proprietary traders. Financial Times (tiered subscription model) (07/02) FOW magazine online (subscription required) (07/03)




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