Wed, Feb 21, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Opalesque Futures Intelligence

News Briefs: CME, Man Group, IAM, and more

Tuesday, February 10, 2009

NEWS BRIEFS

CME Reports Big Volume Changes

CME Group, the large futures exchange, says trading by members went down 21% from the third to the fourth quarter. It attributes the drop to extreme volatility in key contracts and normal seasonal slowdown as well as the credit crisis. Large hedge funds, one of the customer segments CME reported on, reduced trading volume by 32% and now account for 8% to 9% of the overall volume. But certain markets saw rapid growth in 2008, in particular E-minis, energy and metals products. Electronic trading continued to gain market share.

Man Group Offers AHL Notes

On January 26th Man Group Plc, the London-listed hedge fund firm, started to offer globally bonds linked to its futures trading program, AHL. The product, Man AHL Diversified Strategies Ltd, is available in US dollar and euro guaranteed bonds and as non-guaranteed income bonds. The guaranteed bonds come with a capital guarantee from Credit Suisse and target a higher capital return, while the income bonds pay a fixed annual coupon. The underlying AHL quantitative trading program returned 33.2% in 2008 and more than 20% annualized since its inception in 1996. Christoph Mller, Man Investments Global Head of Distribution, says Man AHL Diversified Strategies has the potential to achieve a low or even negative correlation to stocks and bonds and therefore reduce the volatility of a portfolio, whilst bringing an additional source of return.

Aussie Weather Contracts Start Trading Feb. 23

This month CME is expanding its temperature contracts to include the Australian cities of Melbourne, Sydney and Brisbane. CME director of alternative investment products, Felix Carabello, says they're working with a broad group of customers, including energy companies, retailers and municipalities, to develop weather derivatives. “Like our other temperature-based products, these Australian contracts enable industries that face business uncertainty as a result of unusually hot or cold temperatures to transfer their risk exposure to the capital markets," he said. The new listings, including Heating Degree Day and Cooling Degree Day contracts on both monthly and seasonal futures and options, are priced in Australian dollars. CME now offers temperature products for 45 cities and other derivatives on hurricanes, snowfall and frost.

IAM Starts CTA Fund of Funds

From FINalternatives: International Asset Management, a fund of hedge funds firm, has launched the IAM Trading Fund with more than US$100 million in capital. The fund will invest in a portfolio of commodity trading advisers, starting with 10 to 15 CTAs. FINalternatives quotes Morten Spenner, chief executive of IAM, saying that the strategy has ample capacity.

Dubai Contracts Go Electronic

The Dubai Mercantile Exchange Ltd., an energy futures and commodities exchange, completed the migration of its contracts to the CME Globex electronic trading platform where they became accessible for trading as of early February. This means the world's three crude oil benchmarks - WTI, Brent and Oman - will trade on the same platform. CME Group, through its acquisition of NYMEX, holds a 26% equity stake in DME. Other shareholders are a Dubai holding company called Tatweer, the Oman Investment Fund and a group of financial and energy companies including Goldman Sachs, Morgan Stanley, JP Morgan, Vitol, Shell, Concord and Casa Energy.



 
This article was published in Opalesque Futures Intelligence.
Opalesque Futures Intelligence
Opalesque Futures Intelligence
Opalesque Futures Intelligence
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Art & Motion launches collectible car alternative investment vehicle[more]

    Komfie Manalo, Opalesque Asia: Luxembourg-based Art & Motion has launched a new investment vehicle dedicated to vintage cars and exceptional high-quality vehicles as this collectible market has grown exponentially the turn of the centu

  2. Opalesque Exclusive: Global Sigma captures February's long-vol trade[more]

    Bailey McCann, Opalesque New York for New Managers: Florida-based Global Sigma rode February's volatility to new highs. The firm's AGSF strategy is up +2.8 percent through February 16 and +4.2 percent YTD a

  3. Institutional Investors - Hedge funds regain their appeal for a $57 billion asset manager, Private credit strategies in stratosphere[more]

    Hedge funds regain their appeal for a $57 billion asset manager From Bloomberg.com: With volatility back on the radar, one of the Nordic region's biggest asset managers is considering relying a bit more on hedge funds to help oversee his portfolio. Mikko Mursula, the chief investment off

  4. Investing - All aboard for hedge funds as trade tide lifts shipping, Hedge funds pile into Time Warner in bet on merger success[more]

    All aboard for hedge funds as trade tide lifts shipping From Reuters.com: Forced to abandon ship after mistiming their investments five years ago, hedge funds are venturing back in a bid to profit from growing global trade flows. Around 90 percent of traded goods by volume are tran

  5. Investing - Hedge funds turn short on tech just as stock rally takes off, After biggest short, speculators slash bearish US bond bets as supply deluge looms[more]

    Hedge funds turn short on tech just as stock rally takes off From Newsmax.com: A key group of investors has just missed out on the biggest tech-stock rally since 2014. Hedge funds and other large speculators turned net short on Nasdaq 100 Index futures for the first time in 21 months, ac