Swaps-trading platforms TeraExchange and Javelin Capital Markets are planning antitrust lawsuits alleging that banks threatened to cut off customers who tried to trade on their platforms, sources say. TeraExchange reportedly might file today and will name 12 banks, including Barclays, BNP Paribas, Citigroup and Credit Suisse, while Javelin's action is expected later.
Regulators are considering allowing banks an extended deadline of July 2016 to meet a Dodd-Frank Act requirement to separate portions of their swaps-trading business from their government-insured units, sources say.
Deals that resolve disputes with MF Global Holdings' U.K. affiliate should clear the way to step up cash payouts to clients and creditors, a bankruptcy trustee says. Trustee James Giddens announced that he had negotiated the two accords, which could lead to the return of $500 million to $600 million to the MF Global estate.
Remco Lenterman, head of the FIA European Principal Traders' Association, continues to challenge critics of high-frequency trading by touting the benefits of such strategies. "We make the market cheaper and more efficient for the end user," Lenterman says.
The last-minute pact to avert the "fiscal cliff" resulted in a boost for U.S. stock market futures Wednesday. Dow Jones industrial-average futures were up 1.6%, the Standard & Poor's 500 index's futures increased 1.9% and the Nasdaq 100 index's futures gained 2.2%.