Rutschow argues BGC will badly miss revenues generated from ELX Futures, an exchange backed by Wall Street to battle CME Group (CME)'s dominance over the trading of Treasury futures, but which has seen volumes shrink "to an unsustainably low level," according to Rotschow. He also believes new regulations discouraging the use of over the counter derivatives will put a big dent in BGC's business as a broker of those products. The call has worked out well so far, with BGC shares falling nearly 16% since July 26, while the Financial Select Sector SPDR ETF has gained more than 10%.
Though Mayo, at 49, is just nine years older than Rutschow, he sounded like a proud papa bear writing about the analyst in an email from Hong Kong.
"Perhaps I've rubbed off!" Mayo wrote, adding that Rutschow "was the only analyst to have a negative rating on [now bankrupt] MF Global, and he went negative not long after the CEO Jon Corzine attended our conference at CLSA. So--yes--he is independent."
-- Written by Dan Freed in New York.Follow this writer on Twitter.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV