John Lothian Newsletter: NYSE Euronext Plans New Derivatives Market For Retail Traders; Fears grow in Asia over US swaps rules; CFTC Deals Out Royal Pain

Apr 3, 2012

NYSE Euronext announces plans to start up a contract-for-difference electronic, web-based market in Europe. Asian banks and regulators are growing uneasy over the future of clearing business, given potential new US swap rules. The CFTC levels its sword of justice at Royal Bank of Canada, alleging a massive wash sale scheme. NYSE Liffe gets a new Chairman; the cocoa industry loses a veteran pod counter; and several banks announce significant shifts to their management structure. Lots of March volume statistics to peruse from exchanges around the world. Need more? The top box has a MarketsWiki.tv interview with Mary McHenry of the NFA.

Observations – Statistics – Commentary

Alan Whiting to succeed Hugh Freedberg as Chairman of NYSE Liffe
NYSE Liffe today announced that Alan Whiting will succeed Hugh Freedberg as the new non-executive Chairman of the company’s global derivatives business. Mr Whiting’s appointment will take effect from May 1, 2012. Mr Freedberg who previously served as CEO of NYSE Liffe from 1998 to 2009 is retiring from his role as Chairman, which he has held since 2009.
http://jlne.ws/Hb22S5

**** Congratulations to Hugh Freedberg on his retirement from Liffe. Mr. Freedburg was the real thing at Liffe, a great leader and true gentlemen. I wish him well. It was an honor and privilege to work with him in my role as editor and publisher of JLN.

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CME Group Acquires GreenX Holdings LLC
CME Group, the world’s leading and most diverse derivatives marketplace, today announced that it has acquired a 100% equity interest in GreenX Holdings LLC (GreenX Holdings), the parent company of Green Exchange LLC (GreenX), and is now the sole owner of the company.
http://jlne.ws/Hb25x1

**** Spokesman for the Green Exchange, Kermit the Frog said, “it is good to be green, all green.”

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March Is Record Setting Month at CBOE Futures Exchange
The CBOE Futures Exchange, LLC (CFE) today announced that March 2012 was the most-active trading month in CFE history as volume totaled 1,971,632 contracts, an increase of 85 percent from the 1,066,367 contracts traded in March 2011. Average daily volume (ADV) at CFE during March 2012 reached a new all-time high of 89,620 contracts, a gain of 93 percent from the 46,363 contracts traded per day a year ago. March’s record trading volume surpassed the previous high of 1,828,511 contracts traded in August 2011.
http://jlne.ws/Hb238m

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Eurex Sector Futures & Options – New Trading Records in March
The EURO STOXX Sector Futures have reached a new trading record with over 1.6 million contracts traded in March 2012. 1,475,000 contracted were traded in the EURO STOXX Banks Futures. The Open Interest is currently over 300,000 contracts. The options on the EURO STOXX Sector Indices also had a new trading record with 574,000 contracts traded in March (of which 567,000 contracts were traded in the EURO STOXX Banks Options).
http://jlne.ws/HMLSS4

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OCC Announces Cleared Contract Volume Declined 10% In March While Securities Lending Volume Rose 18%
http://jlne.ws/Hb25x3

**** Equity futures were up 44% for the month. This is the good news for OneChicago for the day. Below in the Lead Stories you will see the bad news in the RBC/CFTC story.

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The Options Industry Council Announces March Options Trading Volume Falls 10%
http://jlne.ws/Hb238s

**** Option volume going down is such unique news, we thought we would repeat it here.

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STREET MOVES: NYSE Clearer Names CEO, FXall Hires Technologist
By Jacob Bunge Of DOW JONES NEWSWIRES
Alexander Broderick will take over as chief executive of New York Portfolio Clearing, the clearinghouse venture co-owned by NYSE Euronext (NYX) and the Depository Trust & Clearing Corp., filling a gap left by the departure of former regulator Walt Lukken.
http://jlne.ws/Hb238v

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Mary McHenry

Mary McHenry of the National Futures Association Discusses the NFA’s CTA Marketing Policies
MarketsWiki.tv
Mary McHenry is senior manager of compliance at the National Futures Association (NFA). Among the NFA’s oversight responsibilities is the monitoring of the marketing and promotional activities by commodity trading advisors (CTAs). John Lothian News Editor-in-Chief Jim Kharouf spoke with McHenry about CTA promotional materials, some common mistakes made by CTAs with regard to the use of performance statistics, appropriate use of social media, and the NFA’s pre-review program.

Watch the video >

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OIC Announces Launch Of Redesigned Website
The Options Industry Council (OIC) today announced the launch of its redesigned website at www.OptionsEducation.org. The new website features completely updated design, improved navigation, an expanded strategies section, social media integration, and allows all visitors to register for access to additional industry-leading education, research and customized learning tools.
http://jlne.ws/Hb238C

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[Video] Wall Street & Washington
Clarke Camper – Inside the Beltway
Update on Volcker Rule; SEC policymaking activity, including high-frequency trading; cautionary words about the upcoming USA presidential election.
http://jlne.ws/Hb23oX

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Veteran forecaster Kilian to exit cocoa market
By Emiko Terazono in London – Financial Times
The man who could single-handedly move cocoa prices 10 per cent higher or lower in the space of a few seconds is retiring from the market. It’s not Anthony “Chocfinger” Ward, the hedge fund trader whose speculative bets were the talk of the cocoa market for years, but a much humbler figure.
http://jlne.ws/Hb25xe

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Investment banks wrestle with evolutionary squeeze
By Tony Jackson – Financial Times
Across the western world, the public rhetoric about bankers is proving oddly durable. They caused our troubles, but are not sharing them. We suffer privations, they get bonuses. That is somewhat behind events. Investment banking, at least, is in a slow-motion train wreck. The fact that some bankers are still in the buffet car squabbling over the last bottles of champagne is a distraction.
http://jlne.ws/Hb25xg

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JLN Managed Futures Newsletter

The Future Of Managed Futures
FINalternatives
Managed futures as an asset class has long been touted for generating the holy grail of all investment strategies: uncorrelated returns. The professional money managers known as commodity trading advisors who make up this roughly 30-year-old industry invest long and short across a wide variety of markets, trading strategies and time periods. But while managed futures have performed well over the past decade, there have been significant differences between the returns of individual CTAs.
http://jlne.ws/HQgXkw

**DA: Good primer on the spectrum of managed futures offerings and differences among managers and strategies. Finishes with a “look ahead” for the industry.

CTA Expo New York, April 19, 2012, NYMEX Building
CTA EXPO was created to help professional capital raisers and allocators identify futures trading talent and to promote investing in managed futures. In just over three years CTA EXPO has grown to offering one day conferences in New York, London, Chicago and Miami. Registrations have grown for our conference in Chicago from 140 in 2008 to 500 in 2011. View the program here:
http://jlne.ws/HfvlGl

**DA: CTA Expo NY has officially sold out. Frank and Bucky invite you to attend the London event June 28, Chicago on September 13, and, new this year, Miami on December 13.

Taking a Fresh Look at Equity Commodity Funds
Morningstar
Investors’ interest in commodities has exploded over the past 10 years. Whether they’re looking for diversification, an inflation hedge, or to speculate on rising prices, investors have plowed hundreds of billions of dollars into commodity-related offerings, both mutual funds and exchange-traded funds. A decade ago, commodity-related funds (at that time, only the open-end equity energy, precious metals, and natural resources categories existed) held just $10 billion in assets. Today, after gold has soared to $1,650 an ounce from $300 and oil has gone from less than $30 per barrel to north of $100, total assets in ETFs and open-end commodity-related funds hit an astonishing $320 billion in February.
http://jlne.ws/H9zSfd

**DA: “Three pipelines to commodity exposure” highlighted.

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MarketsWiki Page of the Day
Alexander “Sandy” Broderick
http://jlne.ws/H4Hufh

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MarketsWiki Recent Updates

People

Jon Dean; Richard Lane; William J. Brodsky; Phil Bellini; Alexander Broderick; Sandy Broderick

Companies, Organizations and Groups

North American Derivatives Exchange (Nadex); Thomson Reuters; New York Portfolio Clearing, LLC; Trading Technologies International

Miscellaneous

Upcoming Events

Statistics

21,384,945 pages viewed, 6,770 articles, 138,636 edits
MarketsWiki Statistics
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Lead Stories

NYSE Euronext Plans New Derivatives Market For Retail Traders
By Jacob Bunge Of DOW JONES NEWSWIRES
NYSE Euronext (NYX) aims to launch a new derivatives market in Europe next year that will allow individual investors to trade contracts linked to currencies, energy, metals and other markets, according to a senior executive. The Big Board parent intends to create an electronic, web-based market in so-called “contracts for difference,” futures-like products that have won a following among some retail traders in Europe and elsewhere.
http://jlne.ws/Hb25Nw

Fears grow in Asia over US swaps rules
By Paul J Davies and Jeremy Grant in Hong Kong – Financial Times
Asian banks and regulators are growing concerned about the potential impact of incoming US financial regulations on the markets for swaps and derivatives, which could stifle the ability of Asian clearinghouses to attract business.
http://jlne.ws/Hb25Nx

CFTC Deals Out Royal Pain
BY JEAN EAGLESHAM, JAMILA TRINDLE AND CAROLINE VAN HASSELT – WSJ
Royal Bank of Canada was accused by U.S. regulators of hundreds of millions of dollars in illegal futures trades with itself in order to reap tax benefits. In a federal-court lawsuit filed Monday in New York, the Commodity Futures Trading Commission alleged a “wash trading scheme of massive proportion” by Canada’s largest bank. From 2007 to 2010, officials at RBC coordinated with two subsidiaries on the purchase and sale of futures contracts that gave the right to sell stock later at certain prices, the CFTC alleged.
http://jlne.ws/Hb25NF

RBC Sued by U.S. Regulators Over Wash Trades Seeking Tax Benefit
By Silla Brush – Bloomberg
Royal Bank of Canada is being sued by U.S. regulators over claims that the Toronto-based lender engaged in a series of illegal futures trades worth hundreds of millions of dollars to garner tax benefits tied to equities.
http://jlne.ws/Hb23p9

Barnier hits out at lobbying ‘rearguard’
CNN
Europe’s most senior financial regulator has hit back at “rearguard lobbying” by the hedge fund and private equity industries, saying he “will not be intimidated” by an attempt to undermine a deal to regulate the industry for the first time.
http://jlne.ws/Hb2642

World Bank: An exercise of influence
By Alan Beattie – Financial Times
Conventional wisdom about the World Bank goes something like this: dominated by the US – which by convention nominates its president – the bank has spent decades financing huge dams and power plants in developing countries, and demanding privatisation and deregulation from their governments in return for loans. These days, that role has been challenged by the growth of private capital markets and the rising power and wealth of borrowers such as India and China, leaving the institution casting about for a strong purpose.
http://jlne.ws/Hb23Fw

Spain Faces Risks in Budget Refit
By JONATHAN HOUSE and SANTIAGO PÉREZ – WSJ
Spain’s high-risk budget overhaul, necessary to get its finances under control, could damage its economy and its standing in financial markets, Finance Minister Luis de Guindos said.
http://jlne.ws/Hb2646

Environmental Trading News

General Motors pulls funding from climate skeptic think tank Heartland
Guardian
General Motors, the world’s largest carmaker, has confirmed that it is pulling funding from the Heartland Institute, an ultra-conservative thinktank known for its scepticism about climate change.
http://jlne.ws/HPtpSN

Republicans for Environmental Protection rebrands
The Hill’s E2 Wire
Republicans for Environmental Protection is launching an image makeover aimed at emphasizing conservation. The group, which was founded in 1995, said Monday it is changing its name to ConservAmerica “to draw more recognition to the inherent connection between conservation and conservatism.”
http://jlne.ws/HCdCuP

Canada PM Harper: US Can’t Be Only Market For Canadian Energy
Dow Jones Newswires
Canadian Prime Minister Stephen Harper on Monday said that the U.S. can’t be the only market for his country’s energy, including crude from the oil sands of Alberta. Harper said the decision to delay construction of TransCanada Corp.’s (TRP, TRP.T) proposed Keystone XL pipeline shows the need for Canada to find other markets for energy exports.
http://jlne.ws/HDylNJ

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

NYSE Euronext Plans To Cut $250M In Expenses By End Of 2014
By Jacob Bunge Of DOW JONES NEWSWIRES
NYSE Euronext (NYX) unveiled a plan to save $250 million in annual expenses by the end of 2014 as the exchange company refocuses on its independent strategy after the European Union blocked its planned merger with Deutsche Boerse AG (DB1.XE, DBOEF).
http://jlne.ws/HaPTyu

IntercontinentalExchange Introduces Enhanced Execution and Order Management Tools
IntercontinentalExchange, a leading operator of regulated global futures exchanges, clearing houses and over-the-counter (OTC) markets, announced the successful release of WebICE version 12.600 as well as other ICE platform improvements, including additional support for customized trading strategies.
http://jlne.ws/Hb23VW

Nadex Responds to CFTC Decision of Political Event Contracts
Business Wire via Yahoo! News
Nadex is disappointed that the Commodity Futures Trading Commission (CFTC) rejected our political event contracts. While we will review the CFTC’s decision, we felt strongly that these products met all legal and regulatory criteria for listing, and that the public would benefit from having these products traded on a well-regulated exchange, rather than an unregulated offshore venue as currently is the case.
http://jlne.ws/Hb23W0

LSE set for majority stake in LCH.Clearnet
By Philip Stafford – Financial Times
The London Stock Exchange is poised to take a controlling stake in LCH.Clearnet, the Anglo-French clearing house, after it passed the approval threshold it needed from shareholders.
http://jlne.ws/Hb23W6

Maibaum Leaves EEX
The Managing Director Exchange and Senior Vice President Customer Relations Oliver Maibaum will leave European Energy Exchange (EEX) on his own request and resigns from all his offices at EEX Group with immediate effect.
http://jlne.ws/Hb23Wa

NZX: Resignation Of Officer – Pat O’Shannassy
http://jlne.ws/Hb23Wb

Australia’s ASX May Extend Trading Hours
CNBC
The Australian Securities Exchange said on Tuesday it may extend its trading hours and ease restrictions for small resources companies in a bid to attract Asian investors and capitalise on Australia’s strong resources sector.
http://jlne.ws/Hb24cs

CBOE Holdings Reports March 2012 Trading Volume
CBOE Holdings, Inc. today reported that March trading volume for options on the Chicago Board Options Exchange (CBOE) and C2 Options Exchange (C2), combined, totaled 106.65 million contracts. March’s average daily volume (ADV) was 4.85 million contracts, even with March 2011 ADV and down five percent from February 2012 ADV of 5.08 million contracts. Futures trading on CBOE Futures Exchange (CFE), home of CBOE Volatility Index futures, set a new all-time monthly volume record of nearly two million contracts in March.
http://jlne.ws/Hb24ct

Average daily volume of 10.1 million contracts at Eurex Group in March
In March 2012, the international derivatives exchanges of Eurex Group recorded an average daily volume of 10.1 million contracts (March 2011: 11.8 million). Of those, 7.4 million were Eurex Exchange contracts (March 2011: 8.7 million), and 2.7 million contracts (March 2011: 3.1 million) were traded at the U.S.-based International Securities Exchange (ISE). In total, 163.1 million contracts were traded at Eurex Exchange and 58.9 million at the ISE.
http://jlne.ws/Hb264j

BOX Price Improvement Activity Increases in March
In the month of March, price improved contracts on BOX Options Exchange (“BOX”) averaged 310,495 per day, which represented a 12% increase over the same period last year. Overall average daily trading volume on BOX in the month of March was 636,391 contracts, which represented a 47% increase over the same period last year.
http://jlne.ws/Hb24cw

ISE Reports Business Activity for March 2012
The International Securities Exchange (ISE) today reported average daily volume of 2.7 million contracts in March 2012. This represents a decrease of 12.7% compared to March 2011. Total options volume for the month was 58.9 million contracts. ISE was the second largest U.S. equity options exchange in March with market share of 18.3%*.
http://jlne.ws/Hb26kD

109 billion euros turned over on Xetra in March
Order book turnover on Xetra and the Xetra Frankfurt specialist trading stood at E115.2 billion in March – a decrease by 23 percent year-on-year (March 2011: E150.0 billion). Of the E115.2 billion, E109.4 billion were attributable to Xetra – a decrease by 23 percent y-o-y (March 2011: E141.6 billion). E5.9 billion were attributable to the Xetra Frankfurt specialist trading, a 30 percent decrease y-o-y (March 2011: E8.4 billion). Order book turnover on Tradegate Exchange* totalled approximately E3.5 billion in March.
http://jlne.ws/Hb26kH

KCBT HRW Wheat Futures & Options Open Interest Increases Over Last Month
The Kansas City Board of Trade during the month of March saw open interest in the Hard Red Winter Wheat futures contract, the wheat options and the exchange as a whole increase over open interest at the end of February.
http://jlne.ws/Hb26kP

MGEX Reports Open Interest Growth – March Futures And Options Trading Volume
http://jlne.ws/Hb26B4

OneChicago Announces Trading Volumes For March 2012
* First quarter volume increased 49%, year-over-year, to more than 1.2 million contracts
* Blocks in March 2012 were up a strong 70% year-over-year, compared to March 2011
http://jlne.ws/Hb24sU

BATS Global Markets Reports BYX Market Share Record; BATS Chi-X Europe Remains #1 in Europe
BATS Global Markets (BATS), a leading operator of securities markets in the U.S. and Europe, today reported that the BATS BYX Exchange marked its best month on record with 2.6% market share in March while BATS’ overall U.S. equities market share remained steady month-over-month, coming in at 10.9%.
http://jlne.ws/Hkehue

Key figures SIX Swiss Exchange and Scoach Switzerland: March 2012
A total of 2,902,422 transactions were conducted on SIX Swiss Exchange and Scoach Switzerland in March 2012. This corresponds to a month-on-month increase of 4.7%. The number of trades rose particularly sharply in the equities incl. funds + ETSFs + ETPs and ETFs segments. Overall trading turnover came to CHF 85.0 billion, down 4.4% on February 2012.
http://jlne.ws/Hb26B9

THE SPANISH STOCK EXCHANGE TRADED E61.30 BILLION IN MARCH, UP 34% FROM THE PREVIOUS MONTH
The trading volume for the first quarter totaled E176.93 billion; The number of trades in March came in at 4 million, up 17% from February; In March trading in BME’s Derivatives market reached a record high for both 2012 and 2011, at 9.7 million contracts. Trading in Options on stocks also posted a record high; New issues in the Corporate Debt market reached E53.64 billion, the highest volume recorded so far in 2012 and in the whole year 2011
http://jlne.ws/Hb24sZ

Boerse Berlin: Stable Development In Q1/2012
http://jlne.ws/Hb24t0

Boerse Stuttgart Achieves Monthly Turnover Of EUR 9.1 Billion – Securitised Derivatives And Investment Funds Up/ Bond Trading Remains At High Level
http://jlne.ws/Hb24t5

Trading On The Warsaw Stock Exchange Group Markets: March 2012
http://jlne.ws/Hb24t8

[NASDAQ OMX Nordic/Baltic] Trading Statistics March 2012
http://jlne.ws/Hb26RK

Strengthening Australia’s Equity Capital Markets: ASX Proposals and Consultation
http://jlne.ws/Hb24td

Prevention of Sales Tax Fraud in Power and Gas Trading: EEX welcomes Legislative Amendments in France and the Netherlands
http://jlne.ws/Hb2789

Banks, Brokers & Dark Pools

ICAP Expands Soft Commodities Team
ICAP Corporates LLC, the commodity futures and options trading arm of the world’s leading interdealer broker ICAP plc, announces the expansion of its soft commodities group to include a full-service cotton broking team. The three principals of VIP Commodities, Ltd., the leading global cotton options broker, have joined ICAP and will offer execution services in the open outcry pit, electronic, voiced blocks, and over-the-counter markets.
http://jlne.ws/Hb24JD

Retirement of John H. Bryan and Lois D. Juliber from Goldman Sachs Board of Directors and Appointment of New Lead Director and New Audit Committee Chair
John H. Bryan will not stand for re-election at the Company’s 2012 Annual Meeting of Shareholders consistent with the Company’s retirement policy under its Corporate Governance Guidelines. Mr. Bryan has been a director and a member of each of the standing committees of the Board since November 1999; in addition, he serves as our Lead Director and as Chair of the Board’s Corporate Governance and Nominating Committee.
http://jlne.ws/Hb278l

Bank of America Sued in N.Y. Over Mortgage-Backed Securities
Bloomberg
Bank of America Corp. was sued by Bank Hapoalim BM (POLI) and Principal Life Insurance Co. for fraud and breach of contract over the sale of almost $960 million worth of mortgage-backed securities.
http://jlne.ws/Hb278n

Federal Reserve exec calls for breakup of ‘behemoth’ banks
Journal Inquirer
Dismantling the country’s largest banks may be the best way to assure that the nation’s economy can move ahead, Dallas Federal Reserve Bank executives say in a recent report.
http://jlne.ws/Hb27oC

Euroclear Bank Efficiently Swaps 30% Of Foreigner-Held Greek Debt
http://jlne.ws/Hb27oK

A Top London Banker at JPMorgan Chase Resigns
By MARK SCOTT – NY Times
One of the top bankers at JPMorgan Chase in London resigned on Tuesday. Ian Hannam, JPMorgan’s global chairman of equity capital markets, left the bank after British financial regulators fined him for disclosing inside information.
http://jlne.ws/Hb250b

UBS reshuffles U.S., Europe teams
Reuters via Yahoo! News
UBS AG named several executives to senior positions in the United States and Europe, in the latest move by the Swiss bank to rebuild its business after a massive trading scandal and departures by scores of bankers in recent years. UBS said on Monday it had formed two new executive committees, one each in the United States and Europe.
http://jlne.ws/Hb250c

Wells Fargo Launches Abbot Downing Brand to Serve Ultra High Net Worth Market
Business Wire via Yahoo! News
Wells Fargo & Company officially launched its Abbot Downing brand today to serve ultra high net worth clients, their foundations and endowments. Abbot Downing, with $32.9 billion in client assets, is part of the company’s Wealth, Brokerage and Retirement group, one of the largest U.S. wealth managers, with $1.3 trillion in client assets.
http://jlne.ws/Hb25gt

UBS’ McCann Names Americas Executive Committee
Wall Street Journal Blogs
UBS Americas Chief Executive Robert McCann announced a new executive committee Monday, naming five members to a leadership group in charge of helping him more closely integrate the firm’s three business lines and boost market share in the region.
http://jlne.ws/Hb25gx

UBS Pays Brokers Top Dollar To Join Wealth Management Unit
Forbes
UBS is literally rewriting the time-tested formula of “If you can’t beat them, join them.” The largest Swiss bank clearly believes “If you can’t beat them, employ them.”
http://jlne.ws/Hb25gz

UBS Chief Strategist Hirakawa, Three Tokyo Analysts Leave Firm
Bloomberg
UBS AG (UBSN) said Tokyo-based chief equity strategist Shoji Hirakawa has left the company along with three analysts covering electronics, media and insurance companies.
http://jlne.ws/Hb27Fh

Barclays Names Lehman Veteran Wieseneck to New Strategy Role
Bloomberg
Barclays Plc (BARC) named Larry Wieseneck to a new role of chief strategy officer for corporate and investment banking and said John Langley and Joe McGrath will take over the capital markets unit that Wieseneck ran.
http://jlne.ws/Hb25gG

Rocky Start for Marriage of Brokers
BY SUZANNE KAPNER – WSJ
After Citigroup Inc. and Morgan Stanley announced plans to combine their brokerage units in January 2009, James Dunaway, a longtime customer of Citigroup’s Smith Barney, was told by his broker that a major technology upgrade would soon make it easier for him to check the performance of his investments. Three years later, Mr. Dunaway is still waiting.
http://jlne.ws/Hb27VI

Fiserv to Release First Quarter Earnings Results on May 1, 2012
http://jlne.ws/Hb28cf

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

Fed Amends Proposal On Non-Bank Financial Companies
By Jamila Trindle, Of DOW JONES NEWSWIRES
The Federal Reserve said Monday that it was seeking comment on change to the definition of a non-bank financial company in regards to new Dodd-Frank regulations.
http://jlne.ws/Hb28ch

Banks’ Glass-Steagall Walls Quietly Rebuilt
Forbes
During the Occupy protests last fall, it was not unusual to see signs urging the return of the 1933 Glass-Steagall Act. But according to panelists at the Securities Traders Association of New York on Thursday, the landmark Depression-era law that separated commercial banks, securities firms and insurance companies, undone in 1999 by legislation known as the Gramm Leach Bliley Act, is now effectively back on the books.
http://jlne.ws/Hb27VP

SEC’s risk monitors home in on boards
By Kara Scannell and Tom Braithwaite in New York – Financial Times
The Securities and Exchange Commission has held meetings about risk management with directors at Goldman Sachs and several other financial groups in an attempt to increase accountability at board level.
http://jlne.ws/Hb2aRj

SEC Sues Two Executives in Texas to Recover Bonuses and Stock Profits Received During Accounting Fraud
The Securities and Exchange Commission today sued two former executives at an Austin, Texas-based surgical products manufacturer to recover bonus compensation and stock sale profits they received during an accounting fraud at the company.
http://jlne.ws/Hb2aRo

Mining banker faces market abuse fine
By Brooke Masters, Javier Blas and Ben Fenton in London – Financial Times
Ian Hannam, the JPMorgan Cazenove investment banker who changed the shape of the FTSE 100 by bringing emerging markets commodities groups to London, resigned on Tuesday morning in order to contest a Financial Services Authority decision to fine him £450,000 for market abuse.
http://jlne.ws/Hb2aRr

CFTC to Ban ‘Political Futures’ Contracts: Chilton
CNBC
They might be fun to take part in at the office, but “death pools,” or bets on political races – including the possibility of assassinations – won’t be allowed by the Commodities Futures Trading Commission, Commissioner Bart Chilton told CNBC Monday.
http://jlne.ws/Hb2aRx

ESMA Publishes The Responses Received To The Consultation On ESMA Guidelines For The Regulatory Framework For ETFs And Other UCITS Issues
http://jlne.ws/Hb2aRA

ESMA Publishes An Update To The Q&A On Transparency
http://jlne.ws/Hb28Jf

ISDA Welcomes the English Court of Appeal’s Decision to Uphold ISDA Master Agreement in LBIE Judgment
The International Swaps and Derivatives Association, Inc. (ISDA) welcomes the Court of Appeal’s judgment handed down today in the appeal case of Lomas and others v JFB Firth Rixson, Inc and others.
http://jlne.ws/HTucUt

Ownership rights and ASIC’s regulatory agenda
http://jlne.ws/Hb28Jk

ASIC checks information contained in annual compliance certificates
http://jlne.ws/Hb28ZJ

ASIC provides direction on market structure reforms
http://jlne.ws/Hb28ZO

B.C. Securities Commission Criminal Investigations Team and Vancouver Police arrest Vancouver man for fraud and illegal sale of securities
http://jlne.ws/Hb28ZW

Former Kellogg Partners Head Floor Broker Wins High Profile Employee Bonus Dispute
Forbes
On Wall Street, they say that your word is your bond and a handshake’s as good as a written contract. Yeah, sure. Except when you wind up in court.
http://jlne.ws/Hb29gc

Investments – Indexes – Managed Futures – Managed Funds

Wall Street Revamps Muni Swaps
BY KATY BURNE – Dow Jones
The spike in municipal defaults that some observers forecast for last year never materialized, but that isn’t stopping Wall Street from trying to stoke interest in derivatives designed to protect against cities and states not honoring their financial obligations. The efforts, spearheaded by dealer banks like Citigroup Inc. and Goldman Sachs Group Inc., come as pockets of the muni market are showing signs of distress and as traditional bond insurers struggle to bounce back from blows they sustained in the financial crisis.
http://jlne.ws/Hb2box

Changing of the Guard for Hedge Funds
Susan Kalla – Forbes
The dynamics of the hedge fund industry are changing and so are the managers. The days of expert networks, massive fund inflows and controlled trading are history. Hedge funds are seeing outflows compared with other investments, like high frequency trading funds and ETFs with lower fees. For the traders at mediocre hedge funds, it’s exit time.
http://jlne.ws/Hb29gf

New rate index aims to challenge Libor
Reuters via Yahoo! Finance
A new index that shows European banks’ cost to borrow dollars is set to challenge the benchmark status of Libor, which is the subject of a global probe over whether banks manipulate it. On Monday, Euribor-EBF, whose members are national banking associations in the European Union and has set the Euro Interbank Offered Rate (Euribor) since 1999, launched its dollar Euribor fixings in response to demand from European banks.
http://jlne.ws/Hb29gn

New EDHEC-Risk Survey Reveals The Investment Management Opinions Of Sovereign Wealth Funds
http://jlne.ws/Hb29gp

Markit Buys Data Explorers, Adding Information on Stock Lending
By Nandini Sukumar – Bloomberg
Markit Group Ltd. bought Data Explorers, which collects and sells information on securities lending, from private-equity firm Bowmark Capital LLP.
http://jlne.ws/Hb2bEV

JPMorgan Tightens Grip on Bonds as Sales Surge: Credit Markets
By Matthew Leising – Bloomberg
JPMorgan Chase & Co. is tightening its grip on the global corporate bond market, taking share from Citigroup Inc. and Bank of America Corp. and topping all underwriters as companies sold a record $1.17 trillion of debt.
http://jlne.ws/Hb2bEW

Fink Finds Fund Assets Aren’t Enough in BlackRock Bid for Clout
Bloomberg
Laurence D. Fink, who built BlackRock Inc. (BLK) into the world’s biggest asset manager, now is seeking to increase the firm’s clout beyond Wall Street to the wider public.
http://jlne.ws/Hb29wK

NYPC Names Sandy Broderick As Chief Executive Officer – Joins At A Time Of Growth And Great Opportunity For NYPC – Experienced Industry Professional With Over 20 Years In Global Derivatives Trading
Press Release
http://jlne.ws/Hb2bF2

CalPERS Director Of Corporate Governance Elected To Board Of Institutional Investor Group
http://jlne.ws/Hb2bF9

OptionMetrics Extends Licensing of Its Ivy DB Europe Options Database to Academic Institutions
Business Wire via Yahoo! News
OptionMetrics, the financial industry’s premier provider of accurate and complete historical options price data and analytics, today announced it is extending the licensing of its Ivy DB Europe service to universities.
http://jlne.ws/Hb2bVm

Four new iShares equity index ETFs launched on Xetra
http://jlne.ws/Hb2bVq

Express Scripts Inc. To Join The Global Dow – Dow Jones Health Care Titans 30 Index Adds Celgene Corp.
http://jlne.ws/Hb29Nh

STOXX Monthly Index Report – March 2012 In Review
http://jlne.ws/Hb29Nm

Technology News

OpenGamma Unveils Revolutionary Open Source Analytics and Risk Management Platform
OpenGamma, creators of the first open source analytics and risk management platform for the financial services industry, today announced availability of the OpenGamma Platform 1.0. The Platform offers a completely open architecture to deliver unprecedented transparency and improve the quality, accuracy and real-time availability of the critical trading and risk analytics required by today’s front-office traders, quants and risk managers.
http://jlne.ws/Hb2bVw

SunGard Enhances Protegent’s Insider Trading and Conflict Detection Capabilities
SunGard is helping firms monitor for insider trading and more effectively manage compliance across regulatory and geographic borders with the latest release of its Protegent Personal Trading Assistant (PTA) solution
http://jlne.ws/Hb29Nr

Natixis Global Asset Management Unveils First-of-Its-Kind Program to Manage Market Volatility and Enhance Diversification
Business Wire via Yahoo! Finance
Natixis Global Asset Management today officially unveiled its new Durable Portfolio Construction platform to help individual investors, financial advisors and institutional investors worldwide address growing concerns about risk and market volatility in global markets.
http://jlne.ws/Hb2bVB

IPC Selected for HKEx Hosting Services Founding Member Program
http://jlne.ws/Hb2a3L

Media News

SEC conducting preliminary Groupon probe
The Securities and Exchange Commission is looking into Groupon Inc.’s revision of its financial results, according to a report in the Wall Street Journal.
http://jlne.ws/Hb2cbX

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

[TFX] About temporary suspension of trading (arised on 3.April)
Trading for Interest Rate Futures Cortracts was suspended from 9:36 (JST)due to a failure in the Trading System. Trading resumed at 10:45 (JST)
http://jlne.ws/Hb2a3T

SGX securities market starts dual currency trading
Singapore Exchange’s (SGX) securities market today successfully began dual currency trading. Hutchison Port Holdings Trust (HPHT), the world’s first publicly traded container port business trust, is the first listed security to launch dual currency units on SGX by adding a S$ counter to their US$ counter. It saw healthy trading of its S$ counter, totalling S$4.13 million in its first day of trading. Its US$ counter traded US$16.01 million.
http://jlne.ws/Hb2a3X

China may allow more overseas investment: central bank head
Reuters via Yahoo! News
China may loosen overseas investment rules for private investors, the country’s central bank chief said on Tuesday, less than a week after the government gave the go-ahead for pilot financial reforms in a coastal city.
http://jlne.ws/Hb2css

[TSE] Trading Conditions (Outlook & Initial Figures) Fiscal Year 2011
http://jlne.ws/Hb2a43

Tokyo Commodity Exchange Announced Rolling Update Of Midterm Management Plan
http://jlne.ws/Hb2cIW

Dalian Commodity Exchange: Notice On Charging 2012 Membership Fees
http://jlne.ws/Hb2akz

Frontier Markets

FMC to cut position limits in some agri commodity futures
By Siddesh Mayenkar – Reuters
The Forward Markets Commission (FMC), India’s commodity market regulator, plans to cut the number of contracts any member can hold in agricultural commodities in line with production estimates to curb excessive speculation, its head said on Monday, a week after banning guar futures trading.
http://jlne.ws/Hb2aAO

India regulator approves bourse listings, sets conditions
Reuters
India’s stock market regulator will allow domestic stock bourses to list subject to certain conditions, including limits on ownership so that 51 percent of each exchange is held by the public.
http://jlne.ws/Hb2cJ6

Johannesburg bourse eyes African listings
AFP via Yahoo! News
South Africa’s Johannesburg Stock Exchange (JSE) on Monday announced a new strategy to attract listings from African firms after the Treasury lifted restrictions on foreign companies.
http://jlne.ws/Hb2cJb

Qatar driving rapid progress in global clean energy sector
After experiencing an extraordinary transformation over the past two decades, Qatar is now focusing on long-term goals built on the values of sustainable development. By capitalising on its abundant resources and working in collaboration with entities such as the US Department of Energy (DOE) and the Spanish Research Centre for Energy, Environment and Technology (CIEMAT), the nation has significantly expanded its clean energy research; in turn enhancing its knowledge-based economy.

Myanmar starts new currency regime
AFP via Yahoo! News
Myanmar on Monday began a managed flotation of its currency, overhauling its complex exchange rate system in the new government’s most radical economic reform yet in a bid to lure investors.
http://jlne.ws/Hb2cJc

Myanmar’s Exchange Rates Mean More Than Election Results
Bloomberg
The parliamentary election wins of Aung San Suu Kyi and her party weren’t necessarily the best news out of Myanmar in the past week.
http://jlne.ws/Hb2cZt

Brazil should embrace a freer market
By Komal Sri-Kumar – Financial Times
Guido Mantega, Brazil’s finance minister, was in fighting spirit in a recent Financial Times interview. The government was “not going to just sit by and watch while other countries devalue their currencies to give them a competitive advantage,” he said. Mr Mantega believes that the European Central Bank’s longer-term refinancing operations and the Federal Reserve’s quantitative easing measures since the financial crisis have been designed to weaken the euro and the dollar.
http://jlne.ws/Hb2cZx

IMF gives Sri Lanka $427 million loan
AFP via Yahoo! News
The International Monetary Fund on Monday approved a $427 million loan for Sri Lanka, hoping to shore up government coffers that have been ravaged by a massive trade deficit.
http://jlne.ws/Hb2dwz

Dubai Financial Market: Trading Overview Of Fiscal Year 2011 (April 2011 – March 2012) & March 2012
http://jlne.ws/Hb2cZJ

Miscellaneous News

More CEOs won pay raises in 2011
Reuters
The take-home pay of U.S. chief executives grew at least 10 percent in 2011, propelled largely by a stock market rally, according to consultants’ estimates.
http://jlne.ws/Hb2dfY

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