John Lothian Newsletter: ICE and Cetip Agree to Develop Brazilian Debt Trading Platform; CME’s Donohue likely to leave before annual meeting next month; Spanish economic crisis deepens

Apr 27, 2012

ICE and CETIP announce plans to create a bond trading platform for Brazil. CME’s departing CEO says actually, it looks like he’ll be leaving sooner than expected. Spain receives a rating downgrade and announces that unemployment is just a fraction under 25 percent of the workforce. In today’s top box, you’ll find two hefty “Five Minutes” interviews: one with Bart Mallon of Cole-Friedman, Mallon & Hunt talking about the JOBS act and hedge fund advertising; and one with new DTCC CEO Michael Bodson about his perspective on where things stand and where they’re headed.

Observations – Statistics – Commentary

Five Minutes with Bart Mallon, Cole-Frieman, Mallon & Hunt LLP: Hedge Fund Marketing and the JOBS Act
On April 5, 2012 President Obama signed into law the Jumpstart Our Business Startups Act (“JOBS Act”). Inserted into the Act were provisions on hedge fund marketing and accredited investor restrictions. John Lothian News Editor-at-Large Doug Ashburn spoke with Bart Mallon of Cole-Frieman, Mallon & Hunt LLP about the JOBS Act provisions, what they entail and how it will affect the hedge fund community.

Q: On April 5, 2012 President Obama signed into law the Jumpstart Our Business Startups Act (“JOBS Act”). Inserted into the Act were provisions on hedge fund marketing and accredited investor restrictions. What exactly do the provisions entail?

A: There is not actually any change in marketing provisions per se. What happened is the JOBS Act repealed earlier provisions in the securities laws which did not allow managers to have general solicitations with respect to their offerings. This essentially meant that managers could not solicit by advertising to the public through these private offerings and so managers really had to be careful when trying to grow the assets of their fund. One of the important things to note with respect to the provisions of the JOBS Act is that they can only market more freely if all of the investors of the fund are accredited investors. If they have non-accredited investors coming into the fund, then they cannot use these more liberal advertising means in order to solicit investors.

Q: Does this affect all types of fund structures?

A: For a 3(c)(1) fund structure, the accredited investor limit does not change. These managers are still limited to 99 individual investors. For 3(c)(7) funds, previously the limit was 499 investors. Now, that can be bumped up to 1999 investors. For 3(c)(7) funds, though, all investors must be qualified purchasers, which is actually a higher threshold than that of accredited investors.

Read the rest of the interview on MarketsReformWiki at http://jlne.ws/KejjLf

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JLN Interest Rates Newsletter: Five Minutes with Michael Bodson, CEO, DTCC
Michael Bodson is the chief operating officer, as well as the president and COO of the three Depository Trust & Clearing Corp. (DTCC) operating subsidiaries: The Depository Trust Company, National Securities Clearing Corporation and Fixed Income Clearing Corporation. On Apr. 23, it was announced that Bodson would succeed the retiring Donald F. Donahue as CEO of DTCC, effective July 1, 2012. Bodson will also become CEO of the three operating subsidiaries. Bodson talked this week with Douglas Ashburn, editor-at-large of John Lothian News and lead project manager for MarketsReformWiki; and JLN managing editor Christine Nielsen.

Q: The business and regulatory climate has changed considerably in the few years you have been with DTCC. Could you talk about what has happened?

A: The re-regulation of the industry has had far-reaching impact and plays to the strengths of the asset the industry has created in DTCC. It really leverages our capabilities in terms of processing, risk management, in data, and our network globally. The most obvious example is the global trade repository for swaps, which built on the warehouse we had done for credit default swaps. That acted as a backbone for the mandate to create the GTR system globally.

As the regulations continue to be rolled out and as the industry continues to analyze the impact, there will be more opportunities to leverage what we have in place. We are working closely with the industry in terms of understanding where we can add value and leverage the investments we have made. Lastly, being a central counterparty and risk manager, the appreciation for – not only ourselves, but all the CCPs in the world – how we help mitigate risk and how we bring stability to the financial market has gone up in appreciation tremendously. That also puts pressure on us in terms of how regulators and market participants will expect us to perform at a high level. That is the most important thing we do. Failure of a CCP would really cause a ripple effect in the entire financial infrastructure. They have raised the bar on our performance, and we have to act accordingly, and that is a challenge we are up to meeting.

Q: And that challenge will be your main focus going forward with DTCC?

A: In anything we do, we can’t lose sight of what we handle on a day-to-day basis. We handle 100 million transactions. If we go down, the markets don’t function, and we understand that is a major obligation and responsibility. So, we can’t fall in love with any new opportunity and lose sight that what we do on a day-to-day basis is critical to the functioning of the world’s largest market.

For the rest of the interview, visit MarketsWiki at http://jlne.ws/I7fA2y

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TradeTech Beat: An introspective industry
By Philip Stafford – Financial Times
Barclays did their best this week in London to inject a slice of glamour to TradeTech, the trading technology industry’s annual conference, by displaying the Premier League trophy. But the silver and gold pot, bedecked with the red, white and black ribbons of Manchester United, was not enough. The mood among the 2,000 delegates was subdued and lifting it might have been beyond even United manager Sir Alex Ferguson’s legendary powers of motivation.
http://jlne.ws/I7fzM9

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IntercontinentalExchange and Cetip Enter Agreement to Develop Brazilian Debt Trading Platform
IntercontinentalExchange, a leading operator of global regulated futures exchanges, clearing houses and over-the-counter (OTC) markets, today announced the completion of an agreement with Cetip, S.A. to develop and deliver a new fixed income trading platform to be offered by Cetip for Brazilian corporate and government bonds.
http://jlne.ws/I7fzMf

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CME’s Carey Seen Taking Seat On BM&FBovespa Board
By Jacob Bunge Of DOW JONES NEWSWIRES
CME Group Inc. aims to put director Charles Carey into the futures-exchange group’s seat on the board of Brazilian exchange company BM&FBovespa SA upon the retirement of CME CEO Craig Donohue, who currently holds the spot. Carey, previously chairman of the Chicago Board of Trade ahead of that market’s 2007 merger with the Chicago Mercantile Exchange, has visited Brazil for years and has worked to develop commodities markets linked to Latin America’s biggest economy. “Charlie has good relationships not only within the government of Brazil, but BM&FBovespa, and he was a natural fit to fill Craig’s slot,” said Terry Duffy, CME’s executive chairman, in an interview Thursday.

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NYSE Euronext Board of Directors Accepts Resignation of Ricardo Salgado
NYSE Euronext announced today that its Board accepted the resignation of Ricardo Salgado from the Company’s Board of Directors. Mr. Salgado tendered his resignation pursuant to NYSE Euronext bylaws after he did not receive a majority of votes cast for reelection at today’s annual meeting of NYSE Euronext shareholders.
http://jlne.ws/I7fA2I

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After Quiet Years, British Regulator Gets Tough on Abuses
By MARK SCOTT – NY Times
Britain’s securities regulator once had a reputation for taking a light-touch approach to regulation. No longer. The regulator, the Financial Services Authority, is acting instead more and more like a heavy, conducting predawn raids and bringing a rising number of cases for insider trading and other market abuses.
http://jlne.ws/I7fA2L

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U.S. options exchanges sound alarm on new tax rules
Reuters via Yahoo! Finance
Options exchanges and other financial players worried about proposed new tax rules on U.S. dividend tax withholding for foreign investors will vent their objections at a public hearing held by the U.S. Internal Revenue Service on Friday.
http://jlne.ws/I7fAj0

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Investors turn heat on Man chief
By Sam Jones and Kate Burgess in London – Financial Times
Leading shareholders of Man Group, Europe’s biggest hedge fund manager, have warned Peter Clarke, chief executive, he must revive the company’s fortunes in the coming months or face calls to step down.
http://jlne.ws/I7fAjb

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MarketsWiki Page of the Day
Gary Anderson
http://jlne.ws/IqWC6k

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MarketsWiki Recent Updates

People
Michael Bodson; Andrew T. Brandman; Chris Gale; Douglas Ashburn; Bart Mallon; Gary Anderson

Companies, Organizations and Groups
CAIA Association; Dubai Gold and Commodities Exchange

Miscellaneous
Five Minutes with Michael Bodson, CEO, DTCC; Chartered Alternative Investment Analyst; Accredited investor

Statistics
22,540,378 pages viewed, 6,835 articles, 139,573 edits
MarketsWiki Statistics

Lead Stories

IntercontinentalExchange and Cetip Enter Agreement to Develop Brazilian Debt Trading Platform
IntercontinentalExchange, a leading operator of global regulated futures exchanges, clearing houses and over-the-counter (OTC) markets, today announced the completion of an agreement with Cetip, S.A. to develop and deliver a new fixed income trading platform to be offered by Cetip for Brazilian corporate and government bonds.
http://jlne.ws/IbT0qq

CME’s Donohue likely to leave before annual meeting next month
Reuters
CME Group CEO Craig Donohue, who was to hand the reins to current President Phupinder Gill at the end of the year, said the transition process was going exceptionally well and would be completed “very soon.”
http://jlne.ws/I7fAjh

Spanish economic crisis deepens
By Victor Mallet in Madrid – Financial Times
Spain’s unemployment rate rose to almost one in four, according to data released on Friday, amid a deepening economic crisis marked by another sovereign credit downgrade from Standard & Poor’s.
http://jlne.ws/I7fAzD

Moody’s is set to stick it to Wall St.
Crain’s New York Business
The banking market is anything but stable, research shows, giving Moody’s plenty of reason to lower the boom.
http://jlne.ws/I7fzvt

Financial regulators take aim at repo trading activities
By Brooke Masters and David Oakley in London – Financial Times
Opaque securities lending and repurchase markets are potential threats to stability and can exacerbate cyclical downturns, global regulators warned on Thursday. The Financial Stability Board, in their first report on the sector, said the markets pose a particular risk when collateral is poorly managed and subject to repeated reuse.
http://jlne.ws/I7fAzF

Ireland warns of risk to planned bond sale
By Jamie Smyth in Dublin and David Oakley in London – Financial Times
Dublin has warned that a plan to re-enter international bond markets this summer could be disrupted if the Irish electorate rejects Europe’s fiscal treaty in a referendum next month.
http://jlne.ws/I7fAQ3

Obama ‘confused’ about energy trading, says CME
By Hal Weitzman in Chicago – Financial Times
CME Group, the US’s biggest futures exchange operator, attacked a White House plan to raise margin requirements in energy trading markets, saying President Barack Obama was “confused” on the issue and the measure would have no effect on prices.
http://jlne.ws/I7fCr6

Elections Shift Tone on Euro
By STEPHEN FIDLER – WSJ
The political complexion of the euro zone is changing. Countries are peeling away from the German-led coalition promoting the austerity agenda that has so far dominated the euro zone’s approach to its debt crisis.
http://jlne.ws/I7fCra

Environmental Trading News

Large Trader Requirements For GreenX ERU Futures And Option Contracts
In connection with the launch of the GreenX Emission Reduction Unit (ERU) Futures and Option contracts on trade date April 30, 2012 (see GreenX Participant Notice # NP-2012-06 dated March 28, 2012), please note below the corresponding all month/any one month accountability levels, expiration month position limits, reportable levels and aggregation allocation (GreenX Rule 535) for the new contracts.
http://jlne.ws/I7fCrd

Citi to Purchase 1.17 Million Tonnes of Carbon Credits in Innovative Microfinance Deal
Press Release
In a deal that combines microloans in Mongolia with the sale of carbon credits on the European Union Emissions Trading Scheme (EU ETS), Citi’s London-based Environmental Products Trading and Origination team, working with Citi Microfinance, has agreed to purchase 1.17 million metric tonnes of carbon credits over the next seven years from Seattle-based social enterprise MicroEnergy Credits. The carbon credits will be generated by capturing reductions of greenhouse gas emissions following the installation of more efficient household insulation and heating fixtures in Ulaanbaatar, the capital and largest city in Mongolia. The purchase and installation of the fixtures will be funded through microloans from Mongolia’s XacBank.
http://jlne.ws/K2ITqN

**JK – From Microloans to carbon credits.

Mexican climate bill ‘part of ETS trend’
Environmental Finance
The passage of a historic climate bill in Mexico last week is fresh evidence of the trend for countries to introduce emissions trading, said a leading NGO.
http://jlne.ws/JK2XMV

For more environmental trading news, subscribe to the Environmental Markets version of the John Lothian Newsletter edited by Jim Kharouf.
Visit http://www.jlnenvironmental.comto subscribe.

Exchange & ECN News

CME’s CEO Transition Moves Up As Profit Slumps 42%
By Mia Lamar and Jacob Bunge Of DOW JONES NEWSWIRES
A “formal handoff” of chief executive duties at CME Group Inc. (CME) is expected to take place before the futures exchange company’s annual shareholder meeting next month, current CEO Craig Donohue said Thursday.
http://jlne.ws/KfcIjR

ICE Futures US: Change to USDX and Currency Pair Futures Contract Last Trading Day Rules Re: Bank Holidays
http://jlne.ws/I7fB6F

Deutsche Börse weighs investor payouts
By Telis Demos in New York – Financial Times
Deutsche Börse said it may increase its payout to investors, as profits slipped 32 per cent in the first quarter from a year ago because of pressures on trading volumes.
http://jlne.ws/I7fCHD

Deutsche Börse: Stable sales revenue in Q1/2012 despite weak capital market environment
Deutsche Börse AG published its figures for the first quarter of 2012 on Thursday. At E552.4 million, the Group’s sales revenue remained virtually stable despite reduced activity on the financial markets. This was mainly due to the full acquisition of Eurex from the Swiss exchange organisation SIX Group. The Group’s operating costs rose to E248.6 million and include exceptional items amounting to E22.9 million, like costs for the prohibited merger with NYSE Euronext, and higher scheduled investments in growth initiatives. Therewith, operating costs are in line with the full year guidance. Earnings per share, adjusted for exceptional cost items and a financial expense from the valuation of the share component of the agreement with SIX Group, amounted to E1.01 in the first quarter of 2012.
http://jlne.ws/I7fB6N

NYSE CEO: Disappointed to Lose Facebook, But We Are Kind of Old
By Chris Dieterich and David Benoit – WSJ
NYSE Euronext CEO Duncan Niederauer says he was “very disappointed” to lose the coveted Facebook listing to rival Nasdaq, at the exchange operator’s annual shareholder meeting.
http://jlne.ws/JEGIda

83% Of The NASDAQ-100 Utilize NASDAQ OMX Corporate Solutions Products
NASDAQ OMX Corporate Solutions announced today that in the first quarter of 2012, 363 new clients were driving their IR, PR and governance efforts with NASDAQ OMX Corporate Solutions’ leading suite of services.
http://jlne.ws/I7fBn5

BME APPROVES THE DISTRIBUTION OF E81 MILLION IN DIVIDENDS
BME’s General Shareholders Meeting, which was held today in Madrid, agreed to pay an extraordinary dividend of E31 million – or E0.372 per share. This, combined with the E50 million final dividend (a gross E0.6 per share) it will distribute and added to the interim dividend against 2011, paid out in September and December last year, total E164 million (a total dividend of E1.972 per share), the same dividend as last year.
http://jlne.ws/I7fBna

Warsaw Stock Exchange Promotes Foreign Issuers Among Investors
The 2nd WSE International Companies’ Forum organised by the Warsaw Stock Exchange took place at the Hyatt Regency Warsaw on 26 April 2012. The partners of the event were Bank Zachodni WBK, Dom Maklerski Citi Handlowy, Ipopema Securities SA, and Wood & Company. The event media partners were TVN CNBC, Parkiet, and TOK FM.
http://jlne.ws/I7fBnh

BTG Pactual Begins Trading Units At BM&FBOVESPA – Start Of Trading Of Units of BTG Pactual At BM&FBOVESPA
http://jlne.ws/I7fDeF

CBOE Holdings, Inc. 2011 Annual Report
http://jlne.ws/I7fBDE

CME Group Clearing Advisory
Delisted NYMEX Crude Oil Backwardation/Contango (B/C) Index and NYMEX Crude Oil MACI Index
http://jlne.ws/JeTYiV

NYSE Euronext welcomes BTG Pactual to its European market
http://jlne.ws/I7fBDF

Restrictions on Transactions in Hitachi Ltd.
http://jlne.ws/I7fDeP

Order Origin Code Requirements (Revised)
http://jlne.ws/I9pVKx

Program Trading Averaged 30.7 Percent of NYSE Volume during Apr. 16-20
http://jlne.ws/I7fBU7

Warsaw Stock Exchange Amends The Standard Specification Of Currency Futures Contracts
http://jlne.ws/I7fBU9

Banks, Brokers & Dark Pools

GFI Group Inc. Announces First Quarter 2012 Results; Declares Quarterly Cash Dividend
PR Newswire via Yahoo! Finance
GAAP net revenues were $226.6 million for the first quarter of 2012, a decrease of 0.4% from $227.5 million in the first quarter of 2011. On a non-GAAP basis, net revenues decreased 3.4% to $226.4 million from $234.5 million in the first quarter of 2011. Brokerage revenues for the first quarter of 2012 declined 5.0% to $207.2 million compared with $218.0 million in the first quarter of 2011.
http://jlne.ws/I7fBUe

Nomura Sees 86% Jump in Profit
BY ATSUKO FUKASE – WSJ
Nomura Holdings Inc. said its net profit jumped 86% on year in the January-March period largely thanks to a strong performance at its trading business and investment trust sales.
http://jlne.ws/I7fDvn

Macquarie Expects Recovery After Profit Falls
Bloomberg
Macquarie Group Ltd. (MQG) , Australia ‘s largest investment bank, said it’s relying on cost cuts to revive earnings after a slump in trading income and dealmaking dragged full-year net income to an eight-year low.
http://jlne.ws/I7fCaA

Barclays admits failure over pay awards
By Patrick Jenkins, Banking Editor – Financial TImes
Barclays began its annual general meeting at the Royal Festival Hall in London on Friday with investors expecting a fiery gathering focused on the pay awards of its senior executives. In his opening speech, Marcus Agius, the chairman, admitted the bank had not done enough to communicate with shareholders about the controversial pay evels at the top of the group.
http://jlne.ws/I7fCaD

Barclays slumps to loss before shareholder showdown
AFP via Yahoo! News
Barclays sank into the red in the first quarter on massive exceptional charges, it said on Thursday as it prepared to face a shareholder backlash over high executive pay.
http://jlne.ws/I7fDLH

Delayed deals cut Evercore earnings
By Tracy Alloway in New York – Financial Times
Evercore, the independent investment bank, posted disappointing earnings for the first quarter after three big deals failed to close and expenses crept higher.
http://jlne.ws/I7fCaT

Goldman Sachs Banker in California Said to Be Target
Bloomberg
Goldman Sachs Group Inc. (GS) banker Matthew Korenberg in California is under investigation for insider-trading related to Galleon Group LLC co-founder Raj Rajaratnam, a person familiar with the matter said.
http://jlne.ws/I7fF6j

Morgan Stanley Smith Barney Announces Launch of Investing with Impact Platform
Morgan Stanley Smith Barney today announced the launch of a new investment platform designed to help clients align their financial goals and their personal values. The Investing with Impact Platform offers clients and Financial Advisors a broad range of investment options.
http://jlne.ws/I7fF6q

Another UBS Banker Leaves in London
Wall Street Journal Blogs
In the latest spin of the revolving door on Wall Street and the City of London, Roland Phillips is leaving UBS, where he has been head of European consumer and retail investment banking, for Centerview Partners.
http://jlne.ws/I7fE2l

BlackRock Said Hiring UBS’s Cook for Capital Markets Team
Bloomberg
Edward Cook, the banker who ran European equity syndication at UBS AG (UBSN) , is joining BlackRock Inc. (BLK) , the largest money manager , to work at its new capital markets team in London, said three people with knowledge of the matter.
http://jlne.ws/I7fFmT

DealBook: Europe’s Debt Woes Weigh on Bank Earnings
New York Times
Deutsche Bank of Germany and Banco Santander of Spain reported a drop in profit in the first quarter, and the chief executive of Barclays warned of an “unpredictable” environment.
http://jlne.ws/I7fFmW

Barclays Unfazed by Deals Dip in Southeast Asia Banking Push
Bloomberg
Barclays Plc (BARC) , undeterred by a drop in equity offerings in Southeast Asia last year, is expanding its investment bank in the region even as local rivals like CIMB Group Holdings Ltd. step up competition for deals.
http://jlne.ws/I7fEiO

European Central Bank: Setback For Financial Integration In 2011
http://jlne.ws/I7fEiX

FSB Publishes Interim Report On Securities Lending And Repos
http://jlne.ws/I7fEzg

Regulatory News

The SEC News Digest
The SEC News Digest provides daily information on recent Commission actions, including enforcement proceedings, rule filings, policy statements, and upcoming Commission meetings.
http://www.sec.gov/news/digest.shtml

CFTC Orders Texas-based PassThrough Investments, LLC, and its Principals, Stephen Brantley and Dwayne Bryant Dawson, to Pay over $1.1 Million in Sanctions to Settle CFTC Charges of Fraud in Operating a Forex Trading Pool
The U.S. Commodity Futures Trading Commission (CFTC) today issued an order settling charges that PassThrough Investments, LLC (PTI) (aka PassThrough Investments Group, LLC), and its principals, Stephen Brantley and Dwayne Bryant Dawson, all of Spring, Texas, fraudulently solicited and accepted at least $2.6 million from at least 60 members of the public to participate in an off-exchange foreign currency (forex) pool that traded on a leveraged or margined basis.
http://jlne.ws/I7fFTW

CFTC Settles Action against Florida Resident Ghassan Tawachi for Fraud and Misappropriation
The U.S. Commodity Futures Trading Commission (CFTC) today filed and simultaneously settled charges that Ghassan Tawachi of Coral Gables, Fla., defrauded customers through sales of his software trading systems by falsely claiming expertise as a successful professional trader and by misappropriating $40,000 from one customer. Tawachi is a registered Commodity Trading Advisor.
http://jlne.ws/I7fFU0

Exillon Energy plc fined £292,950 for listing rule breaches
The Financial Services Authority (FSA) has fined Exillon Energy plc (Exillon) £292,950 for failing to identify around £930,000 of payments to its former Chairman and beneficiary of the major shareholder as related party transactions, and failing to disclose them to the FSA in a timely manner.
http://jlne.ws/I7fGam

Ex-Amaranth Trader Backed by CFTC in $30 Million FERC Case
Bloomberg
The CFTC in a filing yesterday in the U.S. Court of Appeals in Washington said FERC lacks authority to punish Brian Hunter for allegedly manipulating the natural-gas futures market in 2006.
http://jlne.ws/I7fGar

Judge won’t dismiss CFTC oil manipulation case
Business Insurance
A U.S. judge denied a motion to dismiss the U.S. Commodity Futures Trading Commission’s lawsuit against Arcadia Petroleum Ltd. and Parnon Energy Inc. on Thursday, saying the regulator had ‘plausibly alleged’ the traders manipulated oil prices in 2008.
http://jlne.ws/I7fEPM

IOSCO Consults On Principles Of Liquidity Risk Management For Collective Investment Schemes
The Technical Committee of the International Organization of Securities Commissions has published the consultation report Principles of Liquidity Risk Management for Collective Investment Schemes, which outlines a set of principles against which both the industry and regulators can assess the quality of regulation and industry practices relating to liquidity risk management for collective investment schemes (CIS).
http://jlne.ws/I7fGat

ESMA Chair Steven Maijoor Speaks At The ECB High Level Conference
http://jlne.ws/I7fEQ2

ESMA Submits A Comment Letter To EFRAG On Business Combinations Under Common Control
http://jlne.ws/I7fHLs

CSA provides guidance to improve compliance of disclosure requirements related to prospectus exemptions
http://jlne.ws/I7fGaC

SEC starts probe of Chesapeake CEO’s well stakes
Reuters via Yahoo! News
The Securities and Exchange Commission has opened an informal inquiry into Chesapeake Energy Corp’s controversial program that granted Chief Executive Aubrey McClendon a share in each of the natural gas producer’s wells, a source familiar with the matter said on Thursday.
http://jlne.ws/I7fGqQ

Investments – Indexes – Managed Futures – Managed Funds

Facing New Regulations and Stakeholder Demands, Asset Management Industry Nears a Turning Point, According to PwC Report
PR Newswire via Yahoo! Finance
The challenges facing the asset management industry, including volatile markets, global regulatory reform and stakeholder demands for greater transparency, have been building for many years. Several of these changes, such as the implementation of new regulations, are accelerating and could make the remainder of 2012 a turning point for many companies, compelling them to take transformational steps to improve their competitiveness, according to a new PwC report, Top Issues Facing Asset Managers.
http://jlne.ws/I7fGqY

Louisiana Pensions Should Have Thought Twice About Calling Hedge Fund Their “Best Deal”
Forbes
Looks like the Louisiana Firefighters’ Retirement System, the Municipal Employees’ Retirement System and the New Orleans Firefighters’ Pension and Relief Fund may have lost almost $100 million that the three public funds invested in a New York hedge fund run by Fletcher Asset Management. A judge in the Cayman Islands, where the fund is registered, ruled recently that the flagship fund was “very doubtfully solvent” and should be liquidated.
http://jlne.ws/I7fHLJ

GLG Hong Kong Managers Said to Plan Own Asia Hedge Fund
Bloomberg
Kelvin Woo and Joe Zhang are leaving GLG Partners Inc., the London-based hedge fund bought by Man Group Plc (EMG) in 2010, to set up their own Asia-focused macro hedge fund, said four people with knowledge of the matter.
http://jlne.ws/I7fI21

Vulpes gets Tudor investment in new equity funds
Reuters via Yahoo! Finance
A company of Tudor Group, controlled by hedge fund veteran Paul Tudor Jones, will invest in a new set of funds to be launched by Singapore-based Vulpes Investment Management.
http://jlne.ws/I7fGHC

Nasdaq Pokes Mutual Funds
BY BEN LEVISOHN – WSJ
A decision by Nasdaq OMX Group Inc. to speed up Facebook Inc.’s inclusion in the Nasdaq-100 index is forcing money managers to rethink their investing strategies ahead of the social-networking company’s public offering.
http://jlne.ws/I7fGXT

Bond Insurers Remain Scarred From Financial Crisis, Moody’s Says
By Matthew Leising – Bloomberg
Bond insurers are still struggling with losses tied to the financial crisis and have seen institutional investors discount the value of their guarantees, according to Moody’s Investors Service. The absence of issuance of structured finance deals and a 5.2 percent rate of protection for municipal bonds has reduced business opportunities for MBIA Corp., Assured Guaranty Corp. and other bond insurers, Helen Remeza, a Moody’s analyst in New York, wrote in a report today.

Mad Cow Case Announcement Prompts U.S. Futures Regulator Inquiry
By Silla Brush and Alan Bjerga – Bloomberg
The Commodity Futures Trading Commission, the main U.S. derivatives regulator, is reviewing the release of information about the first domestic case of mad cow disease in six years.
http://jlne.ws/I7fGY1

U.S. Treasury Secretary Highlights Modernization Of Chinese Financial Sector As A Key Priority, Notes Progress On Exchange Rate Appreciation
In Remarks To San Francisco’s Commonwealth Club Ahead Of Upcoming U.S.-China Strategic And Economic Dialogue, Geithner Outlines Progress Made, Challenges Ahead For Economic Relationship With China
http://jlne.ws/I7fIyY

Invesco Reports Results for Three Months Ended March 31, 2012
http://jlne.ws/I7fIz9

Prudential Short Duration High Yield Fund, Inc. Raises $699 Million
http://jlne.ws/I7fIzc

UBS Launches ETRACS Exchange Traded Note Providing Exposure Across Commodities and Across Their Respective Futures …
http://jlne.ws/I7fHez

State Street Global Advisors Launches Actively Managed SPDR ETFs
http://jlne.ws/I7fHuX

Technology News

NYSE Technologies Expands FIX Order Routing Service with Dedicated Regional to Global Connectivity
NYSE Technologies, the commercial technology unit of NYSE Euronext, today announced the global expansion of its Capital Markets Community Platform and FIX order routing technology to include regional routing capabilities, enabling local trading within participating regions. Available now, these enhancements offer NYSE Technologies customers in Europe and Asia the option to trade exclusively within their local markets while having the option to utilize NYSE Technologies extensive global network and trading community on an as needed basis.
http://jlne.ws/I7fIPN

Equinix To Build Third Data Center In Greater Miami Area – New Data Center Will Improve Access To Commercial Centers Of Latin America
http://jlne.ws/I7fJ64

Equinix Reports First Quarter 2012 Results
Reported Revenues Of $452.2 Million, A 5% Increase Over The Previous Quarter And A 25% Increase Over The Same Quarter Last Year – Increased Full Year 2012 Revenue Guidance To Greater Than $1,890.0 Million And Increased 2012 Adjusted EBITDA Guidance To Greater Than $860.0 Million
http://jlne.ws/I7fKH9

Media News

Constant Contact Announces First Quarter 2012 Financial Results
Business Wire via Yahoo! Finance
Constant Contact, Inc., the trusted marketing advisor to more than half a million small organizations worldwide, today announced its financial results for the first quarter ended March 31, 2012.
http://jlne.ws/I7fJ6h

Reports

Briefing.com Economic Calendar
http://www.briefing.com/Investor/Public/MarketAnalysis/Calendars/EconomicCalendar.htm

USDA Today
http://www.nass.usda.gov/Publications/index.asp

CBOE Events Calendar
http://www.cboe.com/AboutCBOE/EventCalendar.aspx

Economic Release Calendar
The Economic Release Calendar (PDF) is a schedule of government, academic and industry economic releases, provided as a service to CME customers.
http://www.cmegroup.com/tools-information/calendars/

Asia-Pacific News

US presses China to open to foreign investment
AFP via Yahoo! News
The US on Thursday urged China to open its markets to foreign investors as “aggressively” as Beijing has spread its own economic influence into other countries.
http://jlne.ws/I7fJmC

Bank of America Appoints New China Head
Wall Street Journal Blogs
Bank of America Merrill Lynch has appointed Charles Alexander as interim head of its China operations, according to an internal memo seen by Deal Journal.
http://jlne.ws/I7fJmK

Jim Rogers Identifies The Biggest Mistake China Is Making Right Now
Business Insider via Yahoo! Finance
And his thoughts on the October transition of power.
http://jlne.ws/I7fJmO

Asia Faces Stronger Growth, But Further Rebalancing Critical, Says IMF’s Asia-Pacific Regional Economic Outlook
http://jlne.ws/I7fKXQ

SGX welcomes Global Premium Hotels to Mainboard
http://jlne.ws/I7fLed

Tokyo Stock Exchange: New ETFs Included In Real-Time Dissemination Of “TSE Indicative NAV”
http://jlne.ws/I7fJTE

Tokyo Grain Exchange: Non-GMO Soybeans Delisted
http://jlne.ws/I7fJTL

HKFE Announces Revised Margins For Futures Contracts
http://jlne.ws/I7fLuF

Hong Kong’s Securities And Futures Commission Secures Short Selling Convictions
http://jlne.ws/I7fLuI

Frontier Markets

Dubai exchange hires second CEO in six months
David Thomas – Financial News
The Dubai Gold and Commodities Exchange has hired a former Goldman Sachs executive director as its new chief executive, just six months after the post was last filled.
http://jlne.ws/I7fKaa

Strife-Torn Nigeria Is an Investment Magnet
BusinessWeek
The oil state attracts foreign capital despite terror attacks
http://jlne.ws/I7fKah

Mark Mobius: Despite All The Progress, Myanmar Still Faces A Big Hurdle In 2015
Business Insider
Myanmar, once known as Burma, has democracy standing on its doorstep.
http://jlne.ws/I7fN5M

World Bank looks anew at Myanmar, debt and data key
Reuters via Yahoo! News
The pace and scope of the World Bank’s re-engagement with Myanmar’s reform-minded government will depend on settling the country’s unpaid debts and getting accurate economic data, a senior bank official said on Thursday.
http://jlne.ws/I7fM1G

A farewell to superpowers
Salon.com
Goldman Sachs — via economist Jim O’Neill — invented the concept of a rising new bloc on the planet: BRICS (Brazil, Russia, India, China, South Africa). Some cynics couldn’t help calling it the “Bloody Ridiculous Investment Concept.” Not really. Goldman now expects the BRICS countries to account for almost 40 percent percent of global gross domestic product (GDP) by 2050
http://jlne.ws/I7fM1J

Kenyan banks eye solid earnings despite high rates
Reuters via Yahoo! News
Kenya Commercial Bank (KCB) and Equity Bank predicted strong profits this year after a resilient performance in the first quarter in the face of high interest rates and inflation.
http://jlne.ws/I7fNmi

MCX Weekly Market Report April 20, 2012 – April 26, 2012
http://jlne.ws/I7fNmr

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