John Lothian Newsletter: CME to list iron ore futures on electronic trading platform; Investors "over-estimate" impact of OTC reforms; Rising Bank Profits Tempt a Push for Tougher Rules

Apr 18, 2013

CME Group plans to list its iron ore futures products on Globex beginning in May, in a bid to boost participation. OTC market rule changes aren’t bothering the wholesale participants nearly as much as investors, who are far gloomier about the expected loss of business. Bank earnings are rolling in and looking great, and with those cheerier skies come worries that regulators may see opportunities to inject more clouds. In today’s First Read, take a look at JLN’s latest video interview; this time, Raj Mahajan of Allston Trading talks high-frequency trading with Jim Kharouf. And John Lothian makes a guest appearance with an update and a charitable opportunity.

First Read

The Camp Proposal
Ed TillyCBOE
Recently, you may have read news accounts of the U.S. House Ways and Means Committee’s draft proposal (under the leadership of Committee Chairman Dave Camp – R-MI) to overhaul the entire tax code. The proposal is now included in President Obama’s 2014 budget.

The draft proposal addresses what we realize is a difficult and complex task of crafting comprehensive tax reform, but, as currently drafted, would radically revise the taxation of listed options. If the proposal becomes law in its current form, it would make the use of listed options much less attractive and would have devastating effects on the options industry and the customers it serves. The proposal also includes a repeal of the 60/40 tax treatment, which we have long opposed.

The Securities Market Coalition (made up of all U.S. options exchanges and the OCC) is working to inform Members of Congress about the implications of the draft. Our educational efforts focus on what we believe are unintended consequences of the draft proposal.

Below is a link to the House Ways and Means Financial Product Discussion Draft, which details the proposed tax changes. Also linked are two handouts from the Securities Market Coalition: one that addresses several key provisions in the Chairman’s discussion draft proposal and a second that outlines implications of the proposal. I encourage you to read them to determine the implications for you and your business.

House Ways and Means Financial Products Discussion Draft: jlne.ws/175qwL4 (pdf)

US Securities Markets Coalition Congressional Hand Out: jlne.ws/11gE588 (pdf)

Real-World Examples, Implications on Options: jlne.ws/ZzGxDy (PowerPoint)

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Raj Mahajan

Raj Mahajan, Allston Trading CEO, Talks HFT and the Business of Prop Trading
MarketsWiki.tv

Raj Mahajan took the reins at Allston Trading as CEO in September 2012 and has spent a good deal of his time looking at the issue of high frequency trading (HFT). Allston has been one of the proprietary trading firms who has been willing to publicly discuss HFT, regulation and the future of that form of trading. Mahajan spoke with JLN’s editor-in-chief Jim Kharouf about HFT as well as the business challenges and opportunities for prop firms.

Watch the video »

***ET: Another in an excellent series of interviews from MarketsWiki.tv. Recently, I had a meeting with Raj — one smart guy looking toward the future.

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Unequal options
Dan Barnes – FOW
According to a recent Tabb Group report high-frequency trading (HFT) is dominating US options trading, making technology adoption a key determinant of success. But with tight budgets, falling trading volumes and low volatility, keeping up with the pace of technology adoption is proving too much for many firms.
jlne.ws/15hF9wi

***ET: Options exchanges continue to balance the benefits of new and faster technologies and cost and impact of that new technology on the dedicated liquidity providers we rely on each day.

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IntercontinentalExchange Announces Launch of Russell 2000 Growth and Value Index Futures
IntercontinentalExchange, a leading operator of global markets and clearing houses, announced today it will introduce two new Russell Index futures contracts. The contracts will be based on the Russell 2000 Growth and Russell 2000 Value Indexes and will begin trading on April 22, 2013, subject to regulatory review.
jlne.ws/17oVo7q

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From the Rehab Center
By John J. Lothian
Getting 2 new knees may be one of the best things I have done in a long time. It has allowed me to get rid of painful arthritic knees. It has allowed me to take 6 weeks off to get my knees and surrounding muscles and tendons, and the rest of me, in much better shape than I have been in a long time. I can’t wait until I am even better to be able to enjoy the freedom and activity my new knees will bring me even more.

While there has been much fun made at my expense about losing a foot race to the fictional Eleanor Mandlebaum, I do confess that my slowness of foot did cause me some problems. In fact, I was out for a walk one day, moving along briskly when a police officer cited me for loitering.

Not a Real Jailbird

On a more serious note, answering the phone at home one day in a pain pill/rehab fog found me targeted by the Muscular Dystrophy Association to be part of their “Lock Up” in order to raise critical funds for MDA. Caught without a decent excuse, I agreed to volunteer to be an MDA “Jailbird.” In order to get me out of jail, I need your help raising the funds necessary to make bail.

I’m raising bail to help children and adults with muscle disease in my community who are supported by the vital work of the Muscular Dystrophy Association (MDA). I might not be able to rely on good behavior to get out so that’s why I need your help – I need you to donate to my bail! Just click here: jlne.ws/13igGad to make a secure donation – I know that together we’ll Make a Muscle and Make a Difference in the fight against muscle disease.

Looking for an Intern?

Last summer, Evan Fabry, my then Senior Patrol Leader of my Boy Scout Troop, worked for John J. Lothian & Company, Inc. as an intern. Evan, who is headed to the University of Illinois to study Engineering-Computer Science, is looking for a new challenging summer internship for this summer.

We had him build a mobile site for MarketsWiki last year, which was a pretty good accomplishment for a then 17 year old. He is one smart kid, looking for a challenge for the summer.

If you would be interested in hiring Evan for this summer, please contact me and I will connect you with him.

Thank You

Thank you to all who have sent email, cards and even gift baskets during my absence. While I will still be officially out on my leave of absence until May, I have made a couple of trips to the office to clean up loose ends.

Thank you to my great staff for all their hard work, especially guest editor herder Jon Matte and getting-funnier-every-day Editor-in-Chief Jim Kharouf. Or maybe it is just the pain pills why Jim seems funnier.

Thank you to my guest editors. You have raised my spirits and delivered great commentary to the JLN readership. You have given the JLN team and the industry a boost when we knee-ded it the most (pun courtesy of Andy Yemma).

I hope to see or interact with you all again soon.

~John J. Lothian

***ET: Jim, who is this John Lothian character?

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Let’s Sue Wall Street: SEC’s Aguilar
Forbes
In searching for a better way of policing Wall Street, SEC commissioner Luis Aguilar is onto something: Let investors sue their advisers the way they could sue their doctors for malpractice.
jlne.ws/15hF9wm

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Central Bankers Say They Are Flying Blind
Financial Times via CNBC
Growing concern at the International Monetary Fund over the long-term side-effects of interest rates close to zero came as some of the leading figures in central banking conceded they were flying blind when steering their economies.
jlne.ws/15hF9wp

***ET: Flying blind and running on empty

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Special Report: The battle for the Swiss soul
Reuters via Yahoo! News
It has come to this: Swiss banks, under pressure from countries such as the United States, France and Germany, have been giving up their secrets, in some cases handing foreign tax authorities the names of their account holders. To avoid being blacklisted by the Organization for Economic Cooperation and Development, the Swiss government has agreed to share more information with foreign authorities hunting tax cheats.
jlne.ws/15hFb7l

***ET: This is the first time I’ve heard of bankers being on the same footing as priests.

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Watchdogs monitor derivatives overhaul
Philip Stafford and Brooke Masters – FT.com
Global securities and payments regulators have begun monitoring their national counterparts to ensure key principles that underpin legislation overhauling financial markets are fully applied.
jlne.ws/15hFb7o

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Markets Insight: Wake up to the Twitter effect on markets
Gillian Tett – FT.com
How does crowd psychology affect financial returns? That is a question economists have been pondering ever since traders first huddled in physical trading pits, dealing floors or around computer screens. And this week the issue has become doubly relevant, given how markets in gold – or even Bitcoins – have gyrated. But now some data scientists are jumping into the fray as well.
jlne.ws/15hFcrO

***ET: This look at social media and trading inspires a shameless plug, almost my last of the week. People think of social media as fun and fluff, but our social media traffic is dominated by active market participants looking for actionable real-time trading info. We were thrilled this week to launch www.CBOEoptionshub.com — a one-stop options and volatility forum for active market participants.

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Northern Trust to workers: Confine social media to your own time
Becky Yerak – Chicago Tribune
Even Northern Trust Corp., the conservatively run, 123-year-old Chicago financial services provider that prides itself on low turnover, needs to remind employees that social media is something to be done on their personal time.
jlne.ws/15hFbnK

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Webinar: The Growth of Alternative Financing and the Fate of Capital Markets
Tuesday, May 7, 2013; 11:00 AM – 12:00 PM EDT
Capital markets are struggling. Stock exchanges are associated more with rapid-fire trading than with facilitating capital formation. Meanwhile, banks are reducing their lending activities in order to comply with increased capital requirements. This webinar explores the reasons why traditional markets are failing and the emerging market models, such as crowdfunding and initial bond offerings (IBOs), that promise to fill this gap.
jlne.ws/112KMsG

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DTN 2013 Crop Outlook Seminar, April 24, 2:30pm, Chicago
This year is expected to be a critical one for agriculture, with challenges to long-term demand in the corn market. Please join DTN Senior Analyst Darin Newsom, DTN Senior Ag Meterologist Bryce Anderson and CME Group’s Susan Sutherland, at 2:30 pm on Wednesday, April 24 at the CBOT Building, 141 W. Jackson, Chicago. Cocktail reception immediately following.
jlne.ws/100aA6s

***ET: If Eddie Murphy and Dan Ackroyd are presenting, I’ll be there.

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Celebrate the launch of Keyboard Trader for CQG Integrated Client
Keyboard Trader is hosting an event at its offices on Wednesday, May 22nd 4pm-8pm to celebrate the launch of Keyboard Trader for CQG Integrated Client and other product developments. Come by for a fun evening of drinks and appetizers. Maybe even get in a game of ping pong. Know any traders that might like to come? Invite them too.
Sign up here: jlne.ws/15hq6mo
jlne.ws/15hq6mo

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MarketsWiki

MarketsWiki Page of the Day
Warsaw Stock Exchange
jlne.ws/a0Pzwy

MarketsWiki Recent Updates

People

Jim Swartwout; James Bullard

Companies, Organizations and Groups

Warsaw Stock Exchange; Bloomberg; Bloomberg Tradebook, LLC; SunGard Data Systems; Scila AB

Miscellaneous

Upcoming Events

Statistics

38,112,041 pages viewed, 7,453 articles, 156,903 edits
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Lead Stories

CME to list iron ore futures on electronic trading platform
Reuters via Yahoo! Finance
CME Group will list its iron ore futures contracts on its electronic platform from May, the exchange operator said on Wednesday, hoping to boost liquidity in a derivatives market dominated by the Singapore Exchange.
jlne.ws/15hFcrV

Investors ‘over-estimate’ impact of OTC reforms
Matt Turner – Financial News
Fears over the likely impact of the restructuring of over-the-counter markets on fixed income revenues could be overblown, according to new research by Morgan Stanley and Oliver Wyman. In their annual report on the state of the wholesale banking industry, Morgan Stanley and Oliver Wyman estimated a 3% to 7% decline in fixed income sales and trading revenues, which is far less pessimistic than investors who expect double this figure
jlne.ws/15hFbnN

Rising Bank Profits Tempt a Push for Tougher Rules
PETER EAVIS – NYTimes.com
Banks have been reporting steady growth in earnings since soon after the financial crisis. With the latest reports rolling in, analysts think the banks’ first-quarter profits will be their best ever. But as welcome as such profits are to the banks, they may also become a source of discomfort.
jlne.ws/15hFcs1

Barclays investment bank boss Ricci to leave
Reuters
Barclays said its investment banking boss, Rich Ricci, will step down this month and retire from the UK bank in June, following months of speculation that he would leave after the arrival of new Chief Executive Antony Jenkins.
jlne.ws/15hFbnR

[Video] CFTC Is Looking at Gold, Silver Moves, Chilton Says
Bloomberg
April 17 — Bart Chilton, a commissioner at the U.S. Commodity Futures Trading Commission, talks about commodities trades and market regulations. He speaks with Erik Schatzker and Sara Eisen on Bloomberg Television’s “Market Makers.”
jlne.ws/15hFbnU

Goldman: Now Hedging Bets on Regulation, Not Just Markets
Katy Burne – WSJ
Even when Goldman whines a little, it’s hedged. On Goldman Sachs Group Inc.’s earnings call Tuesday, CFO Harvey Schwartz chimed in on a recent industry complaint: that federal rule proposals are giving futures markets an advantage over derivatives called swaps, which are more-lucrative for dealers to sell.
jlne.ws/17pfVbT

NewsWatch: Europe faces threat of full-fledged depression
Market Watch
“Depression” might not be the word usually used to describe the euro-zone economy, but it may become increasingly appropriate as hopes for a recovery give way to fears of an extended and destructive downturn that policy makers seem unable to halt.
jlne.ws/15hFbnY

Bundesbank Chief Weidmann Says Europe Recovery Could Take Decade
BRIAN BLACKSTONE and MATTHEW KARNITSCHNIG – WSJ.com
Germany’s top central banker warned that Europe’s debt crisis would take as much as a decade to overcome, adding that a lasting solution would only come once politicians stopped relying on the European Central Bank and pushed through far-reaching structural overhauls.
jlne.ws/15hFcs7

China is repeating Japan’s economic mistakes
Satyajit Das – MarketWatch
Despite a history of conflict and competition, China and Japan share development models. But if it is not careful, China may also share Japan’s economic fate.
jlne.ws/15hFcIn

Regulatory

SEC to Move Past Financial Crisis Cases Under New Chairman White
Bloomberg
Mary Jo White, the first former prosecutor to serve as chairman of the U.S. Securities and Exchange Commission, has pledged to run a “bold and unrelenting” enforcement program at the agency charged with regulating Wall Street.
jlne.ws/15hFcIp

Fed’s Stein Favors Staying the Course on Regulation
Wall Street Journal Blogs
A Fed official rejected proposals to cap the size of the nation’s largest financial firms and instead urged policy makers to stick to the current regulatory process, ratcheting up certain rules if necessary.
jlne.ws/15hFbnZ

Mexico Financial Reform Seen Improving Credit Data, Collections
Dow Jones
Mexico is likely to create a universal credit bureau that adds information from government lenders and nonregulated entities to existing data from commercial banks as it seeks to increase access to financial services, Standard & Poor’s said in a report Wednesday.
jlne.ws/15hFcIs

Go directly to jail; do not pass go; do not collect your bonus
David Thomas – Financial News
Labour MP and shadow business secretary Chuka Umunna has told a conference in London’s Canary Wharf that custodial sentences are “one of the best ways we can affect a culture change” in financial industry.
jlne.ws/15hFcIx

Speech By SEC Chairman Mary Jo White: Opening Remarks At SEC Roundtable On Fixed Income Markets
jlne.ws/15hFcIB

Examining Investment Advisers: The Challenge Continues By SEC Commissioner Elisse B. Walter
jlne.ws/15hFbo3

[ASIC] Maintaining a healthy SMSF sector: Improving the quality of advice
jlne.ws/15hFbEg

Alberta Securities Commission Announces Appointment Of Three New Commission Members
jlne.ws/15hFbEh

CPSS And IOSCO Monitor The Implementation Of The PFMIs
jlne.ws/15hFcYS

Exchanges & Trading Facilities

NYSE Technologies Launches Consolidated Feed for Level 1 Market Data
NYSE Technologies, the commercial technology division of NYSE Euronext, today announced the launch of NYSE BQT (Best Quote & Trades), a consolidated XDP feed that provides a real-time, unified view of Level 1 market data, including Best Bid/Offer and Last Sale information for the NYSE, NYSE Arca, and NYSE MKT exchanges including NASDAQ issues traded on NYSE Arca and NYSE MKT. NYSE BQT is a more flexible and affordable alternative to the range of expensive Level 1 market data offerings currently available.
jlne.ws/15hFcYT

Brazil’s Market Surveillance Project Goes Live Across All Markets at BM&FBOVESPA
The NASDAQ OMX Group, BM&FBOVESPA, the Brazilian Securities, Commodities and Futures (BVMF3) Exchange, and BM&FBOVESPA Market Supervision (BSM), have announced the official go-live of NASDAQ OMX’s SMARTS Integrity market surveillance platform across Brazil’s equities, commodities and futures. BM&FBOVESPA’s Equities market has been working with SMARTS since 2011, and now the Commodities and Futures markets will be monitored on the PUMA Trading System platform.
jlne.ws/15hFcYZ

MarketAxess to Host Conference Call Announcing 2013 First Quarter Results
Business Wire via Yahoo! Finance
MarketAxess Holdings Inc., the operator of a leading electronic trading platform for U.S. and European high-grade corporate bonds, emerging markets bonds and other types of fixed-income securities, will announce its 2013 first quarter results on Wednesday, April 24, 2013 before the financial markets open.
jlne.ws/15hFcZ1

Data Fee for CBOE BBO Data Feed
jlne.ws/15hFbEk

March 2013 FIF Market Share And Market Dynamics Reports – Executive Summary
jlne.ws/15hFbEm

FIF Capacity Statistics For March 2013:
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Luxembourg Stock Exchange Annual General Meeting
jlne.ws/15hFdfn

Irish Stock Exchange: Strong Performance Across Equity And Bond Markets
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Hedge Funds & Managed Futures

Advisers Find Rougher Road Out of Fund Firm
KIRSTEN GRIND – WSJ.com
Peter Kraus is trying unusually hard to keep clients from walking out on AllianceBernstein Holding. The New York company he leads has filed an increasing number of lawsuits against financial advisers who left and allegedly tried to take their clients with them.
jlne.ws/15hFbEp

Schroders hires replacement for ex-Buxton fund
Sarah Krouse – Financial News
Schroders has hired a new manager for its key Schroder UK Alpha Plus Fund, which was managed by well-known stock picker Richard Buxton before he announced plans last month to depart the firm for a role at Old Mutual.
jlne.ws/15hFdft

Third Point’s Loeb cancels appearance in face of protest
Reuters via Yahoo! Finance
Billionaire hedge fund manager Daniel Loeb has canceled plans to speak at an investor conference in Washington D.C. on Thursday after certain pension funds threatened to confront him at the event.
jlne.ws/15hFdfv

Buffett Mocking Gold Sidesteps Slump As He Bets on Stocks
Bloomberg
Investors including hedge-fund manager John Paulson faced losses this week as gold suffered its biggest rout in three decades. Warren Buffett told them there were better places to put their money.
jlne.ws/15hFdfx

Crowdfunding Everything From Solar Panels to Veronica Mars
National Journal via Yahoo! News
For those wary of traditional banks after the 2008 financial crisis, there’s another option: lending and borrowing online through crowdfunding platforms. These companies act as financial intermediaries, gathering small amounts of money from large numbers of lenders, investors, or donors to fund a given cause or project.
jlne.ws/15hFdfA

TIAA-CREF Launches International Opportunities Fund
Business Wire via Yahoo! Finance
TIAA-CREF, a leading financial services provider, today announced the launch of the TIAA-CREF International Opportunities Fund, the company’s first actively managed mutual fund focused on international stocks in both developed and emerging markets.
jlne.ws/15hFdfB

Calamos Releases Quarterly Global Economic Review and Outlook April 2013
jlne.ws/15hFbEv

Convergent Wealth Advisors Marks Five Consecutive Years In The Barron’s Top 100
Convergent Wealth Advisors announced its inclusion on the Barron’s 2013 ranking of the Top 100 Financial Advisors. This accolade is Convergent’s fifth consecutive appearance on the list, which includes both top independent advisory firms and large wirehouses.
jlne.ws/15hFbEx

Banks & Brokers

Mortgage Relief Checks Go Out, Only to Bounce
JESSICA SILVER-GREENBERG and BEN PROTESS – NYTimes.com
When the bank account is running dry and the mortgage payment is coming due, the phrase “insufficient funds” is the last thing you want to hear. Now imagine hearing those two words when trying to cash a long-awaited check from the same bank that foreclosed on you.
jlne.ws/15hFbEz

Rosengren Says Banks Owning Broker Units Need More Capital
Joshua Zumbrun & Craig Torres – Bloomberg
Boston Federal Reserve President Eric Rosengren said banks should hold more capital if they own a broker-dealer unit because such businesses pose greater risks during periods of financial stress.
jlne.ws/15hFbUM

Deutsche Bank’s Dunbar to Depart After 16 Years at Firm
Bloomberg
Ivor Dunbar, who oversaw Deutsche Bank AG ’s relationships with its largest corporate finance clients, is leaving after 16 years at Germany’s biggest bank.
jlne.ws/15hFbUR

Deutsche Bank Names Weber-Rey Chief Governance Officer
Bloomberg
Deutsche Bank AG , continental Europe’s biggest bank by assets, hired Daniela Weber-Rey from law firm Clifford Chance LLP to be chief governance officer and deputy global head of compliance.
jlne.ws/15hFbUS

Deutsche Bank to Cap Executive Pay
Dow Jones
Deutsche Bank AG is capping its top executive pay in 2013 at just less than 10 million euros amid a broader political debate in Europe on how to rein in executive compensation.
jlne.ws/15hFbUV

Bank of America says wealth unit posts best results since 2009 Merrill merger
Reuters via Yahoo! News
By Ashley Lau – Bank of America Corp’s global wealth and investment management division, largely composed of its Merrill Lynch retail operations, was a bright spot for the No. 2 U.S. bank, which reported lower-than-expected overall results on Wednesday.
jlne.ws/15hFdvW

BofA’s Trading ‘May Not Roar’ as Much as Rivals, Moynihan Says
Bloomberg
Bank of America Corp.’s trading operations may underperform other firms sometimes because the second-biggest U.S. lender takes less risk, Chief Executive Officer Brian T. Moynihan said.
jlne.ws/15hFdvZ

BofA Hires Ex-Goldman Partner Rizzo for M&A Post -FT
Dow Jones
Bank of America Merrill Lynch has hired former Goldman Sachs Group partner and head of European financial institutions Luigi Rizzo to lead its mergers and acquisitions business in Europe, the Middle East and Africa, The Financial Times reported Wednesday, citing a bank memo.
jlne.ws/15hFcbi

Bank of America’s Countrywide in record $500 million mortgage settlement
Reuters via Yahoo! News
By Jonathan Stempel – Bank of America Corp has reached a record $500 million settlement with investors who claimed they were misled by its Countrywide unit into buying risky mortgage debt.
jlne.ws/15hFcbj

Knight executives took pay cuts for 2012
Dow Jones Newswires
Senior executives of Knight Capital took pay cuts for 2012 after the firm suffered a $461m trading loss that led to its sale to a rival.
jlne.ws/15hFdw4

Clearing & Settlement

CME Group Clearing Advisory: FECPlus FIXML 5.0 Production Deployment Weekend Details
jlne.ws/15hFcbo

CME Clearing – Performance Bond Requirements: New CBOT Inter Exchange Spread- Effective Thursday, April 18, 2013
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Indexes & Products

Diminished Interest In Gold ETFs Indicates Gold Will Still Struggle
Forbes
Gold appears to be attracting some buyers after starting the week with massive losses; however, some analysts said it could be difficult for the gold prices to regain their momentum as interest wanes in exchange-traded funds.
jlne.ws/15hFcbu

STOXX Introduces 3D Printing Index
jlne.ws/15hFdwa

Technology

SunGard Launches Valdi Trading Analytics To Help Improve Trading Profitability
SunGard is expanding its Valdi suite of trading solutions with the introduction of Valdi Trading Analytics (VTA). SunGard’s VTA is a global offering that brings real-time trade execution performance and financial analytics to the front office, helping financial services firms operate smarter and achieve competitive advantage by improving trading profitability and better managing firm-wide trading expense reconciliation.
jlne.ws/15hFcbz

Linear Investments selects TradingScreen’s TradePrime
TradingScreen, the provider of liquidity, trading, and investment technology via SaaS, has announced that UK-based investment management firm Linear Investments, has selected TradePrime, its front-office solution, which includes execution management, order management, compliance, risk, multi-prime broker and administrator connectivity, for hedge funds, all delivered through the cloud.
jlne.ws/15hFcbB

Julia Bronson Joins Liquid Holdings Group as Executive Vice President of Liquid Prime Services
Liquid Holdings Group, LLC, a provider of SaaS-enabled trading, risk and fund accounting systems for the financial services community, today announced the addition of financial services industry veteran and former Goldman Sachs senior executive Julia Bronson as Executive Vice President of Liquid Prime Services.
jlne.ws/15hFdwb

KVH Expands Information Delivery Platform Business In Asia Pacific
Launching Two New Data Centers In Singapore And Hong Kong, And Broadening Cloud Platform Capabilities Across 10 Sites In Asia And Europe
jlne.ws/15hFdMo

S&P Capital IQ’s Real Time Solutions Announces Advanced Genetic Algorithm Capabilities
jlne.ws/15hFf6Y

Enforcement

Federal Court Orders North Carolina Residents Timothy Bailey and Michael Hudspeth, and their Company, PMC Strategy, LLC, to Pay over $1.8 Million for Fraud in Foreign Currency Ponzi Scheme
The U.S. Commodity Futures Trading Commission (CFTC) today announced that it obtained federal court orders requiring Defendants Timothy Bailey of Monroe, North Carolina, Michael Hudspeth, formerly of Statesville, North Carolina, and their company, PMC Strategy, LLC (PMC), to pay over $1.8 million for solicitation fraud and misappropriation in connection with an off-exchange foreign currency (forex) Ponzi scheme that solicited at least $669,000 from more than 22 individuals
jlne.ws/15hFdMp

Federal Court in Florida Orders Michael Alcocer and His Panama-based Company, InovaTrade, Inc., to Pay More than $38 Million in Foreign Currency Fraud Action
The U.S. Commodity Futures Trading Commission (CFTC) today announced that it obtained a federal court Order requiring Defendants Michael Alcocer (a U.S. citizen) and his company, InovaTrade, Inc., formerly of Miami and Orlando, Florida and later Panama City, Panama, to pay, jointly and severally, restitution of over $9.6 million and a civil monetary penalty of more than $28.8 million.
jlne.ws/15hFf6Z

During fraud trial, MICG investors say they didn’t know how hedge fund worked
Daily Press
One after another, former MICG Investment Management LLC investors said they didn’t understand what they were getting into when they put money into a highly touted hedge fund run by the firm’s CEO Jeffrey A. Martinovich.
jlne.ws/15hFf70

UK’s Financial Conduct Authority Charges Eight Men In Relation To Land Banking
jlne.ws/15hFdMz

[ASIC] Former broker convicted of insider trading
jlne.ws/15hFdMA

[ASIC] Former director sentenced for insider trading
jlne.ws/15hFdME

ASIC cancels Flowers Financial Management Pty Limited’s licence
jlne.ws/15hFdMG

Finansinspektionen (FI) Swedish Financial Supervisory Authority: Investment Firms Will Pay Administrative Fines For Deficiencies In Advising Activities
jlne.ws/15hFe2Y

Environmental & Energy

Harvard Don Tells EU Kill Grants to Save Carbon
Bloomberg
Europe may have to change course to save the world’s biggest carbon market after an unprecedented plunge in pollution-permit prices, according to a pioneer of so- called cap-and-trade systems designed to help the environment.
jlne.ws/17pIc23

Carbon trading: Below junk status
The Economist
EUROPE’S flagship environmental policy has just been holed below the water line. On April 16th the European Parliament voted by 334 to 315 to reject proposals which (its supporters claimed) were needed to save the emissions-trading system (ETS) from collapse. Carbon prices promptly fell 40% (see chart). Some environmentalists fear that the whole edifice of European climate policy could start to crumble.
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If Carbon Markets Can’t Work in Europe, Can They Work Anywhere?
Time
America may be a bit of a mess when it comes to climate policy—though that mess has been surprisingly effective in reducing carbon emissions in recent years—but environmentalists could always look across the Atlantic Ocean to Europe, where greens are green, cars are small and global warming actually matters.
jlne.ws/174ODcB

Asia-Pacific

Singapore Government in Discussions with Association on Setting Up Gold Fix
CLEMENTINE WALLOP – WSJ.com
The Singapore government is in discussions with the Singapore Bullion Market Association about launching a gold fix in the city-state, according to people with knowledge of the talks.
jlne.ws/15hFe30

Thai Bourse Gold Futures Trading Prices Align With Global Market
jlne.ws/15hFf75

SGX Welcomes GDS Global To Catalist
jlne.ws/15hFf79

[OSE] ETF/ETN Monthly Report for March 2013
jlne.ws/15hFe34

Frontier Markets

Malaysia Attracts Blank-Check IPOs
Jason Ng – WSJ
Malaysia, home to some of the biggest initial public offerings in Asia last year, now has a new kind of company seeking listin
jlne.ws/15hFe36

DGCX Daily Volumes Cross 100,000 Contracts Mark
jlne.ws/100h6dq

ADX Appoints Mohammad Al Muhairi To Head CSD
jlne.ws/15hFe38

Bursa Malaysia Registers Patami Of Rm38.2 Million In First Quarter Of 2013
jlne.ws/15hFf7a

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