Wall Street Letter Volume XLV Issue 16 - Page 3

NEWS 16 – 22 MAY 2013 POST-TRADE Published by Pageant Media London Thavies Inn House London EC1N 2HA T +44 (0) 20 7832 6500 F +44 (0) 20 7832 6501 EDITORIAL Jeanene Timberlake Managing editor +1 212 268 4910 j.timberlake@pageantmedia.com Ryan Gorman Reporter +1 212 268 4900 r.gorman@pageantmedia.com Gwyn Roberts Group head of content +44 (0) 20 7832 6623 g.roberts@pageantmedia.com Indira Peters-DiDio Data manager +1 212 268 4919 i.peters@pageantmedia.com PRODUCTION Claudia Honerjager Head of production c.honerjager@ pageantmedia.com New York 240 W 37th St. Suite 302, NY 10018 T +1 212 268 4919 F +1 212 268 4999 COMMERCIAL Lucy Guest Group commercial manager +44 (0) 20 7832 6615 l.guest@pageantmedia.com Stefano Giacoia Content Sales Manager +44 (0) 20 7832 6587 s.giacoia@pageantmedia.com EVENTS Beth Hall Head of events +44 (0) 20 7832 6576 b.hall@pageantmedia.com DISTRIBUTION Fay Muddle Circulation manager +44 (0) 20 7832 6524 f.muddle@pageantmedia.com PAGEANT MEDIA Charlie Kerr Chief executive Printed by The Manson Group Market should consider Bloomberg suit serious David Weiss, senior analyst at the Aite Group, said the market shouldn’t dismiss a lawsuit by Bloomberg against the Commodities and Futures Trading Commission over swaps rules. Bloomberg said last month it is suing the CFTC over new rules establishing different liquidity holding periods for swaps and futures against swaps, which Bloomberg counsel asserted during a press call on the suite is anti-competitive and creates an uneven playing field. During CME Group’s earnings call on May 2, Kim Taylor, president at CME Clearing, said the CFTC rule that requires firms to have enough margin for a five-day settlement period for swaps, versus a one-day margin requirement for swap futures, is considered a best practice internationally and as such a reduction in the margin requirement wouldn’t make that much difference. But Weiss said Bloomberg’s point is valid and that while all settlement periods shouldn’t be reduced to one day, products with similar risk profiles should have the same margin requirement. He also pointed out it took quite a bit of provocation to push Bloomberg to the point of litigation. “One can’t ignore a firm like Bloomberg suddenly deciding to litigate – they don’t do that every day,” Weiss added. The company, which has said it plans to apply to operate as a swaps execution facility, hired Eugene Scalia, partner at Gibson, Dunn & Crutcher, and former New York Governor Mario Cuomo, of counsel in the Corporate and Financial Services Department and the Litigation Department of Willkie Farr & Gallagher, to represent it. Weiss said Bloomberg’s choice of attorneys shows it expects to make a change with the suit. EXCHANGES & ATSs NYSE to further derivatives outreach, products NYSE Euronext is planning a meeting to educate investors on the use of options, according to Steve Crutchfield, executive vice president, head of US options, who spoke to WSL in an interview. The exchange 03 Sub-editor Eleanor Stanley Sub-editor Luke Tuchscherer Sub-editor 01 CONTINUED... ISSN# 726-98790 © 2013 Pageant Media Ltd. All rights reserved. COPYRIGHT NOTICE: No part of this publication may be copied, photocopied or duplicated in any form or by any means without Pageant Media’s prior written consent. Copying of this publication is in violation of the Federal Copyright Law (17 UM ???????????Y?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????e?????()Q???????)?????????????????????????)]10?MQIP?1QQH((???????()Q???????????????????????????????????????????????????????U?????????????????????????????????????????????????????????????????()-?????????????????????????????????????????????????????????????????????????????????????????9M`????????????????????????????????????????????????????????????????????????????????Q???????????????????????????????9Mc?e????????q???????????t???????????????????????????????????????????????????????????????????????-???????????????Q??????????????????????????????????????????????????????????????????????????????????????????????????????????????M????()-????????????????????????????????????????????Q????????????????????????????????????????????????]????????????????????????????????????????????????????????????????-??????????e???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????qe??????????????????????????????????????????????????????????????????m???????t??t?-????????????????q]??????????????????????????????????????????????????t((