John Lothian Newsletter: JPMorgan illegally let Lehman count customers’ funds as its own: CFTC; Fed’s Lacker Says Volcker Rule May Be ‘Impossible’ to Implement; Deutsche Börse closes First Quotation Board at end of year

Apr 5, 2012

The CFTC says that JPMorgan Chase allowed Lehman Brothers to consider customer funds as its own, so that LB could borrow more prior to its 2008 collapse.  The Richmond Fed’s Jeffrey Lacker says that the Volcker Rule may not be possible to put into practical practice. Deutsche Börse announces details about the closure of its First Quotation Board, scheduled for the end of 2012.  In today’s Top Box, there’s no shortage of stories on a pre-holiday issue:  NYSE Arca announces mini-option contracts; JLN Options’ Sarah Rudolph has an interview with Thomas McKeon of Clothier Springs Capital Management; and the most interesting man in the world makes headlines in Fontana.

Observations – Statistics – Commentary

Quick Notes.  Tomorrow is Good Friday.  There will be no JLN published tomorrow.  Today is Opening Day for the professional baseball season in Chicago with the Chicago Cubs opening today at Wrigley Field.  Expect some traders and brokers to be missing from their desks in the afternoon, or at least distracted.  There is always hope on Opening Day.

For those of you who celebrate it, have a blessed Easter Weekend.

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NYSE Arca Announces Plans to Introduce Mini-Options
Breaking news from yesterday’s JLN Options Newsletter
Pending approval by the Securities and Exchange Commission, NYSE Arca Options is pleased to introduce mini-options contracts on SPDR S&P 500 (SPY), Apple, Inc. (AAPL), SPDR Gold Trust (GLD), Google Inc. (GOOG), and Amazon.com Inc. (AMZN).

NYSE Arca Options is taking the concept of listing and trading parallel options products of reduced value and size on the same underlying security as are currently listed on key indices and applying it to other high priced underlying securities. High priced underlying securities may have relatively expensive options and even a small percentage move in the share price can mean a large movement in the value of the option in terms of absolute dollars. Issues are selected that are priced greater than $100 and are among the most actively traded issues with average daily volume (“ADV”) of at least 45,000 contracts over the previous three calendar months.

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Trading Technologies Appoints Rick Lane to EVP/CTO Post
Trading Technologies International, Inc. (TT), a leading global provider of software and solutions for professional derivatives traders, today announced the appointment of Rick Lane as EVP/CTO. In this role as chief technology officer, Mr. Lane leads the company’s global engineering, support and technology initiatives.
http://jlne.ws/HfZP7U

**** Look next week for a JLN video interview with TT’s new CTO.

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San Francisco 49ers Team Up With Hedge Fund Industry to Prevent Child Abuse
The San Francisco 49ers’ players, coaches, alumni, cheerleaders and team co-chairman John York will make a special appearance at the 11th Annual San Francisco “Open Your Heart to the Children” Benefit organized by Hedge Funds Care and the San Francisco 49ers Foundation.
http://jlne.ws/HfZP7Z

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JLN Options Newsletter: Five Minutes with Thomas McKeon, CFA, Principal at Clothier Springs Capital Management
Thomas McKeon spent 11 years as a market-maker and floor trader, trading options on the Philadelphia Stock Exchange, before switching to the portfolio management side of the business in 1995. He was previously co-founder, principal and chief investment officer at West Chester Capital Advisors in Pennsylvania, where he managed multi-million dollar equity portfolios for clients including the Pennsylvania Public School Employees’ Retirement System (PAPSERS), the West Chester Borough Police Pension, and Special Policeman’s Fund of North Miami (FL). He spoke with MarketsWiki’s Sarah Rudolph about the impetus for his move to portfolio management and using options on ETFs to enhance returns.

Q: You and Timothy Ringler are the principals of the company. Were you co-founders?

A: For all intents and purposes, yes. I registered as the sole proprietor and Timothy joined several months later.

Q: According to your website, you started the business in 2004 after seeing two studies that found that “a simple strategy of matching a long position in the S&P 500 with its call option outperformed the long-only S&P 500 in the long run.” [The Clothier Springs web site mentions a study by Robert Whaley of Vanderbilt University and Ibbotson Associates, as well as a 2006 Callan study that reached the same conclusion.] At that time, was it difficult to convince anyone that hedging with options was a good strategy?

A: It’s still difficult to convince anyone it’s a good idea. A lot of the investment world is mystified by options. The only time they hear about options is when something bad happens in the news, like Orange County blowing up [in 1994]. But options are just a risk management tool that can be used to speculate and expand risk or to hedge and reduce risk. We saw the studies that some consulting firms were putting out, and the more I looked at the data I realized that these were legitimate superior return sets, both from a risk and return standpoint. Better returns and/or less risk, or both, is a desirable portfolio objective.

Q: Your company uses the Spider ETF (SPDR S&P 500) [the largest ETF by market cap] in a buy-write strategy. Are there other ETFs you use?

A: Right now we have nine different marketed composites: a large cap US, small cap US, put-write, large cap, hedge roll, developed emerging and global market strategy. US Large Cap Buy-Write, US Large Cap Buy-Write -out of the money, US Large Cap Put-Write, US Large Cap Buy-Write-weekly cycle, US Small Cap Buy-Write, Developed Markets Buy-Write, Emerging Markets Buy-Write and Global Multi-Strategy Buy-Write. We are doing it all on a rules-based protocol – taking a cue from the CBOE protocols for their options-based benchmarks, the BXM, BXY, BXR and PUT. Building portfolios with those rules-based protocols lets us eliminate the negative aspects of short term decisions, market timing and other injurious tactical activities. We believe that when you take away the human element, you have a winning proposition – and the data says so. This is essentially the thesis for passive investing. We are using traditional long market exposures accomplished through ETFs – SPYs, IWMs MDYs, etc, all hedged with a near term call or put option on that underlying ETF.

For the rest of the interview and deeper coverage of the options sector, visit the JLN Options website at http://jlne.ws/HeJtfR

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I Give Up: What Did RBC Do To Tick Off the CFTC?
By Matt Levine – Dealbreaker.com
Okay one more from the recent CFTC trilogy: what is up with RBC? Is it the strangest of them all? I’m pretty sure I haven’t earned the right to have an opinion on that, or even a theory, but I have some questions. One is: what was the scam here?
http://jlne.ws/HZ14Me

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Jamie Dimon: Lobbying is good, Washington is bad
CNN Money
JPMorgan Chase CEO Jamie Dimon defended his bank’s lobbying practices on Wednesday, writing in his annual letter to shareholders that the firm’s activities are wholly appropriate and that ham-handed government officials are slowing down the recovery.
http://jlne.ws/HfZRww

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Looking for the Next Generation in Private Equity
By PETER LATTMAN – NY Times
Over the last few decades, a handful of deal makers have reigned over the private equity industry, wielding vast influence over Wall Street and, more broadly, the world economy. Now in their 60s and billionaires several times over, these men – Stephen A. Schwarzman of the Blackstone Group, Henry R. Kravis of Kohlberg Kravis Roberts & Company, David M. Rubenstein of the Carlyle Group and Leon D. Black of the Apollo Management Group, chief among them – are surely ready to pass the baton to the next generation.
http://jlne.ws/HfZPor

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City is right to crack whip on market abuse
By John Gapper – Financial Times
My respect for the City of London’s enforcers has gone up a notch with their decision to impose a £450,000 fine on Ian Hannam, a senior banker at JPMorgan Cazenove and a pivotal figure in the commodities and mining boom that has transformed both London and the FTSE 100 index.
http://jlne.ws/HfZPoi

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Rhode Island’s fiscal reforms offer hope
By Gillian Tett – Financial Times
A few weeks ago, I wrote a column lamenting the dismal state of America’s local public sector pensions system. For with some $3,000bn (or more) of unfunded liabilities, the maths looks truly alarming – particularly given the gridlock besetting so much of the American political machine. But what my column did not address, for reasons of space, was what might fix these woes.
http://jlne.ws/HfZRMT

“First, any government that wants to tackle fiscal woes has to ‘leave behind all the emotions, politics and rhetoric’, to focus ruthlessly ‘on the math and facts, to come up with a solution’, she says; technocrats, not grandstanding idealists, are required.”

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“99% Citizen Tax Enforcers” Continue “Tax Bill” Deliveries at Bank of America Branches
A group of protesters calling themselves the “99 Percent Tax Enforcers” attempted to give a “tax bill” to CME Chairman Emeritus Leo Melamed at Northwestern University to pass along to CME Chair Terrance Duffy at a ribbon cutting ceremony Melamed was at. They also handed out posters claiming that Duffy is wanted for tax dodging.
http://jlne.ws/Hd7fNW

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Trustee Kenny, Judge Jensen Earn Reelection
Village of Fontana incumbent Trustee Patrick Kenny and Municipal Court Judge David C. Jensen earned reelection at the Presidential Preference and 2012 Spring Election Tuesday, April 3, 2012. Also winning election to Trustee positions were Rick Pappas and Derek D’Auria.
http://jlne.ws/HfZPop

**** The most interesting man in the world re-elected to Fontana Village Board.

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JLN Interest Rates Newsletter

Funded Status of U.S. Pensions Rises More than Three Percentage Points in March, According to BNY Mellon
The best quarter for U.S. equity markets in a decade helped to drive the funded status of the typical U.S. corporate pension plan in March 3.6 percentage points higher to 79.8 percent, according to BNY Mellon Asset Management. U.S. stocks have now risen for six consecutive months.
http://jlne.ws/HUuOtJ

Federal Reserve tones down talk of more stimulus
Reuters via Yahoo! News
Federal Reserve policymakers have backed away from the need for another round of monetary stimulus as the U.S. economy gradually improves. Minutes of the central bank’s meeting published on Tuesday showed only two of the policy-setting Federal Open Market Committee’s 10 voting members saw the case for additional monetary stimulus.
http://jlne.ws/HgbPb4

Ben Bernanke’s Paper Dollar Embodies Systemic Risk
Forbes
Ben Bernanke ignores completely that the ever growing need for heroic interventions by the Fed is itself being created by the paper dollar system he celebrates.
http://jlne.ws/Hmh5v9

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MarketsWiki Page of the Day
Segregated funds
http://jlne.ws/HhLp9x

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MarketsWiki Recent Updates

People

Patrick J. Kenny; Diane Garnick; Alan Whiting; Steve Kosanovich

Companies, Organizations and Groups

OptionsCity Software Inc.

Miscellaneous

Upcoming Events; Segregated funds

Statistics

21,485,467 pages viewed, 6,771 articles, 138,723 edits
MarketsWiki Statistics
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Lead Stories

Regulators: JPMorgan illegally let Lehman Bros. count customers’ funds as its own
David S. Hilzenrath – Washington Post
JPMorgan Chase illegally allowed Lehman Brothers, the investment bank whose 2008 bankruptcy brought the financial system to the brink of collapse, to count customers’ money as its own, according to federal regulators.
http://jlne.ws/HfZRMY

Fed’s Lacker Says Volcker Rule May Be ‘Impossible’ to Implement
By Craig Torres and Cheyenne Hopkins – Bloomberg
Federal Reserve Bank of Richmond President Jeffrey Lacker said a U.S. law restricting proprietary trading at banks and scheduled for enactment in July may be “impossible” to implement.
http://jlne.ws/I4JC4Z

Deutsche Börse closes First Quotation Board at end of year
Xetra/FWB: Deutsche Börse today announced the planned rule changes for the Open Market and the current schedule for closing the First Quotation Board. Following close collaboration between Deutsche Börse, the stock exchange regulator of the state of Hesse and the Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht) and consultation with market participants, the First Quotation Board, in its current form, will be closed on 15 December 2012. As already announced in February, the First Quotation Board, as the segment with the lowest transparency requirements, has experienced suspected cases of market manipulation multiple times.
http://jlne.ws/HfZRN1

Wall Street Examines Fine Print in a Bill for Start-Ups
By SUSANNE CRAIG and BEN PROTESS – NY Times
Wall Street is examining whether it will benefit from a little-known section of a broad new law that President Obama is expected to sign on Thursday. Provisions tucked into the so-called JOBS Act, or the Jumpstart Our Business Startups, will roll back some major securities regulations and parts of a landmark legal settlement struck almost a decade ago.
http://jlne.ws/HfZRN3

Analysis – New BoE watchdog’s untested weapons face bank battle
Reuters via Yahoo! News
The Financial Policy Committee, tasked with fighting off the next financial crisis, first faces a battle to convince Britain’s banks that its untested weapons will do more good than harm.
http://jlne.ws/HfZRN6

Spain’s Borrowing Costs Soar
BY TOMMY STUBBINGTON AND NEELABH CHATURVEDI – Financial Times
Spain continued to find itself in the market’s cross hairs Thursday, as mounting concerns over the economy sparked a sharp slide in the country’s bonds and led to an evaporation of the effect of the European Central Bank’s generous cash injection.
http://jlne.ws/HfZPEK

My pitch to build a brave new World Bank
By José Antonio Ocampo
The World Bank has evolved since its creation in 1944 into the primary multilateral agency pursuing balanced, inclusive and peaceful development for all countries. The world has made progress in this regard, but too many people in the developing world still live in poverty, countries have made very uneven progress and the gap between developing and developed countries remains unacceptably big.
http://jlne.ws/HfZPEN

Environmental Trading News

Oil, biofuel companies evolve into uneasy ‘frenemies’
Reuters
Rapid growth in the U.S. biofuels markets has often pitted oil companies against small start-ups seeking a toehold in the gasoline markets, despite the need for both sides to work together, according to industry experts.
http://jlne.ws/HpD2pA

BP hires new emissions chief
Point Carbon
Oil major BP has hired a new global head of emissions, two sources at the London-headquartered firm told Point Carbon News on Wednesday.
http://jlne.ws/I1sBbE

Shell Weighs Natural Gas-to-Diesel Processing Facility for Louisiana
Wall Street Journal
Royal Dutch Shell RDSA -1.36% PLC is considering building a giant plant in Louisiana that would convert natural gas into diesel fuel, several people familiar with the company’s plans said.
http://jlne.ws/HfRNMx

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

Exchange & ECN News

LME Team Meeting With Bidders In London This Week, Next
By Andrea Hotter Of DOW JONES NEWSWIRES
Meetings between London Metal Exchange executives and the four shortlisted bidders for the exchange have been taking place over the past few weeks as due diligence for its potential sale continues, including a round of one-day expert sessions being held this week and next, according to people close to the bidding process. Individual meetings are being held with representatives from CME Group Inc. (CME), IntercontinentalExchange Inc. (ICE), Hong Kong Exchanges and Clearing Ltd. (0388.HK) and NYSE Liffe, the London-headquartered derivatives arm of NYSE Euronext (NYX), the people told Dow Jones Newswires Wednesday.

CME Group to Tighten Oversight of Futures Firms
BY JACOB BUNGE – Dow Jones
CME Group Inc. will tighten scrutiny of futures firms in the wake of the MF Global collapse, focusing on the way in which they safeguard customer funds. The breakdown in segregating customer and broker funds at MF Global dealt a severe blow to the futures industry’s credibility and revealed failures in a system that had been the bedrock of industry oversight for decades.
http://jlne.ws/HfZS3n

NYSE Euronext and CF&B Communication launch 7th Smallcap Event
NYSE Euronext (NYX) and CF&B Communication today announced that the 7th annual Smallcap Event will take place on April 12 and 13 at the Hotel Pullman Tour Eiffel in Paris. This high-profile forum will bring together businesses and investors – some 80 companies with up to E500 million market capitalisation that are listed on NYSE Euronext’s European market, and around 180 investors from the euro zone.
http://jlne.ws/HfZS3o

The Irish Stock Exchange Monthly Statistics – March 2012
http://jlne.ws/HfZS3q

EEX Trading Results in March
In March 2012, the total trading volume on the Natural Gas Market of the European Energy Exchange (EEX) amounted to 6,757,679 MWh (March 2011: 5,591,169 MWh).
http://jlne.ws/HfZS3r

CME Group Clearing Advisory
IMPORTANT: Portfolio Margining for Eris Exchange and CME Interest Rate Futures to Begin Monday, April 16, 2012
http://jlne.ws/HfZPEV

ASX Compliance Monthly Activity Report – March 2012
http://jlne.ws/HfZPF1

ASX Group Monthly Activity Report – March 2012
http://jlne.ws/HfZPVh

Top 20 Largest Consolidated Short Position Report – March 31, 2012
http://jlne.ws/HfZPVj

Green Exchange Holiday Hours For Good Friday
http://jlne.ws/HfZPVk

New Zealand’s Financial Markets Authority Welcomes Bridgecorp Verdicts
http://jlne.ws/HfZS3t

NZX Derivatives Market Hours
http://jlne.ws/HfZPVl

Bermuda Stock Exchange Market Holiday
http://jlne.ws/HfZPVo

Banks, Brokers & Dark Pools

Total ICAP Electronic Broking Volumes on BrokerTec and EBS Platforms for March increases 3% month-on-month; decreases 11% year-on-year
ICAP, the world’s leading interdealer broker, announces today that average daily volumes on the BrokerTec and EBS platforms for March were US$749.5bn, an increase of 3% month-on-month. For the month, year-on-year, there was a decrease of 11% as market conditions remained subdued.
http://jlne.ws/HfZS3C

Morgan Stanley tries to stave off ratings cut
By Tracy Alloway in New York – Financial Times
James Gorman, Morgan Stanley’s chief executive, has been in discussions with Moody’s in an attempt to maintain its credit ratings and stave off a downgrade that could diminish the bank’s ability to buy the rest of Citigroup brokerage Smith Barney, according to people familiar with the matter.
http://jlne.ws/HfZPVt

Bank of America Ranked Second “Greenest Bank” Globally by Bloomberg Markets Magazine
Business Wire via Yahoo! Finance
Bank of America ranked second overall among the world’s top financial institutions and was the highest ranked U.S.-based global financial company in the recently released Bloomberg Markets magazine’s “Greenest Banks” report.
http://jlne.ws/HfZSjW

Goldman Sachs Names Three to Lead Credit Sales and Trading Units
Bloomberg
Goldman Sachs Group Inc. (GS) named Bryan Mix global head of loan trading, and Jonathan Meltzer and John Shaffer, co-heads of New York credit sales, following changes to the bank’s leveraged finance group.
http://jlne.ws/HfZQbQ

Dimon Takes On Regulatory Hurdles In Annual JPMorgan Letter
Forbes
Bank boss warns of unintended consequences from slew of new regulations.
http://jlne.ws/HfZSjX

Here’s How Jamie Dimon Explained JP Morgan’s Part In Nationwide Robo-signing In His Annual Shareholder Letter
Business Insider
In Jamie Dimon’s annual letter to shareholders , he talks about JP Morgan’s part in all of that. Essentially it was “not our finest hour,” he said, but at least JPM wasn’t as bad as other banks (even their subprime mortgages performed better than theirs).
http://jlne.ws/HfZSk1

Japan Upper House Rejects BOJ Nominee
By TAKASHI NAKAMICHI
The upper house of Japan’s parliament on Thursday voted down the government’s candidate for the central bank’s interest-rate-setting policy board, looking instead for someone more supportive of further monetary easing.
http://jlne.ws/HfZQbX

MF Global U.K. Staff Seek $62 Million in Bonus, Severance
By Kit Chellel – Bloomberg
Employees of MF Global Holdings Ltd (MF).’s U.K. unit are seeking 39 million pounds ($62 million) of unpaid bonuses, severance pay and pension contributions from the collapsed broker’s administrator KPMG LLP.
http://jlne.ws/HfZSk9

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 JPMorgan Chase Bank, N.A. to Pay a $20 Million Civil Monetary Penalty to Settle CFTC Charges of Unlawfully Handling Customer Segregated Funds
Press Release
http://jlne.ws/H8JUcP

FINRA Hearing Panel Fines David Lerner Associates $2.3 Million for Selling Municipal Bonds, CMOs to Retail Customers at Unfair Prices, and for Supervisory Violations
The Financial Industry Regulatory Authority (FINRA) announced today that a FINRA hearing panel ruled that Long Island-based David Lerner Associates, Inc. (DLA) charged excessive markups on municipal bond and collateralized mortgage obligation (CMO) transactions over a two-year period, causing the firm’s retail customers to pay unfairly high prices and receive lower yields than they otherwise would have received.
http://jlne.ws/HfZQsh

[NFA] Enforcement and Registration Actions Gem International Commodities LLC and Christine Stankoff
http://jlne.ws/HiuWWe

Judge blasts SFO over Tchenguiz case
By Ed Hammond, Property Correspondent – Financial Times
A High Court judge has rebuked the Serious Fraud Office for “sheer incompetence” after the watchdog admitted it had “no clear record” of the information it used to obtain search warrants against property tycoon Vincent Tchenguiz.
http://jlne.ws/HfZSAs

**** SFO = Serious Fraud Office

Father and Daughter Sentenced for Lying to SEC
For conspiring to obstruct an investigation of the Securities and Exchange Commission, Nasser V. Hamedani and Sholeh A. Hamedani were sentenced yesterday to 25 months and 20 months, respectively, in prison, United States Attorney Melinda Haag announced. They were also ordered to perform a total of 1,750 hours of community service as part of their two-year terms of supervised release.
http://jlne.ws/HPl9Xu

ESMA Announces A Vacancy For An IT Project Manager
http://jlne.ws/HfZQsk

ESMA Publishes The Responses Received To The Joint Discussion Paper On EMIR
http://jlne.ws/HfZSAu

ASIC and TIO launch Indigenous audio posters
http://jlne.ws/HfZSAB

Statement on Hancock Prospecting
http://jlne.ws/HfZSAF

[BCSC] Former financial planner receives permanent market ban for role in Notary Trust Fund Investment
http://jlne.ws/HfZQsu

BCSC Executive Director’s Bulletin: Securities regulator alleges that former notary public committed $83 million fraud
http://jlne.ws/HfZSQV

New Zealand’s Financial Markets Authority Publishes Revised Draft Guidance On Effective Disclosure
http://jlne.ws/HfZSQZ

Investments – Indexes – Managed Futures – Managed Funds

Pressure on black box hedge funds after missing first-quarter rally
By Laurence Fletcher – Reuters
Some of Europe’s biggest computer-driven hedge funds have failed to profit from the stock market’s rebound in 2012, once again frustrating investors in a sector that has sucked in tens of billions of dollars in assets in the wake of the credit crisis.
http://jlne.ws/HfZQIQ

Paulson funds claw back lost ground
By Dan McCrum in New York – Financial Times
John Paulson made large gains betting on mergers and acquisitions in the first quarter of 2012, but also saw losses on gold miners, in a mixed performance for his hedge funds as he attempts to recover from the struggles of last year.
http://jlne.ws/HfZSR7

Rothschild to merge British and French assets – FT
Reuters via Yahoo! News
LONDON (Reuters) – The Rothschild banking dynasty is to fully merge its operations in France and Britain under one holding company, the Financial Times reported on Thursday. The newspaper said the family aims to boost regulatory capital at a time when the investment-banking industry is fighting to adapt to tougher regulation and economic slowdown in Europe. …
http://jlne.ws/HfZT7r

ICMA Publishes 2012 Legal Opinions On Master Repo Agreement For Over 60 Jurisdictions
Press Release
The International Capital Market Association (ICMA), the leading trade association for the international capital market, has today published the 2012 legal opinions on the Global Master Repurchase Agreement (GMRA), the standard agreement used for international repo transactions, together with the Guidance Notes and specific annexes to the GMRA 2011.
http://jlne.ws/HfZQJ5

[Video] Fed’s Lacker `Complacent’ on Stimulus, Cookson Says
Bloomberg
April 5 (Bloomberg) — Richard Cookson, global chief investment officer at Citi Private Bank, a unit of Citigroup Inc., talks about the prospect of further quantitative easing by the Federal Reserve and the outlook for the U.S. economy.
http://jlne.ws/HfZT7C

New Mexico Hires 5 Outside Investment Firms
By Dan Boyd / Albuquerque Journal
The State Investment Council has approved the hiring of five outside firms to manage what is expected to be about $5 billion in U.S. investments, aiming to minimize its exposure to stock market volatility.
http://jlne.ws/HfZT7F

Aiming High, Pension Funds Bet Wrong
It’s Your Money / Time
How many times must we learn that slow and steady wins the race? It was true 2,600 years ago, when Aesop told the story of the Tortoise and the Hare. It’s true today, when pension fund managers are piling into exotic investments in search of better returns—only to find that their performance winds up lagging peers content to plod along with plain old stocks and bonds.
http://jlne.ws/HfZTED

Is the physical oil market really easing?
By Javier Blas, Commodities Editor – Financial Times
The question weighing on the minds of traders in Geneva, London and Houston is whether the physical oil market is truly easing.
http://jlne.ws/HfZTnX

Dow Jones-UBS Commodity Indexes March 2012 Performance Report
http://jlne.ws/HfZTo1

Dow Jones Indexes To License Four New European Forecasted Dividend Plus Indexes As The Basis For UniCcredit Tracker Certificates
http://jlne.ws/HfZTo4

ETF Global Insight – Findings For ETFs/ETPs Listed Globally For Q1 2012
http://jlne.ws/HfZTo7

ETF Global Insight – Findings For ETFs/ETPs Listed In Europe For Q1 2012
http://jlne.ws/HfZTob

ETF Global Insight – Findings For ETFs/ETPs Listed In United States For Q1 2012
http://jlne.ws/HfZTUY

The Asia Dow Gained 12.28% In 2012’s First Quarter Despite 2.10% Slide In March, According To Dow Jones Indexes
http://jlne.ws/HfZTUZ

STOXX Limited Announces Changes To The Index Universe Definiton For Chinese Shares – STOXX Americas 600 Index To Be Renamed
http://jlne.ws/HfZWjC

Dow Jones Islamic Market Titans 100 Index Closed Up 1.19% In March
http://jlne.ws/HfZWjH

The Europe Dow Finished Up 7.07% In 2012’s First Quarter, Despite 2.11% Slide In March, According To Dow Jones Indexes
http://jlne.ws/HfZWjK

Technology News

Thomson Reuters Commits to Elektron Services in Hong Kong Stock Exchange Co-Location Facility
Thomson Reuters has confirmed plans to launch an Elektron co-location service for the Hong Kong Exchange (HKEx) in order to meet the increasingly strong demand from financial institutions for fast and cost-effective access to this important financial market. Thomson Reuters customers will be able to co-locate their trading applications within the data centre, reducing latency and improving the speed at which they execute trades.
http://jlne.ws/HfZWjP

Equinix Enables Unitas Global to Expand Footprint in Asia
Asia Etrading
Equinix, Inc. a provider of global data center services, announced April 5 that Unitas Global, the world’s first and leading managed infrastructure service provider, has selected Platform Equinix in Singapore and Sydney, Australia to support its global business expansion plans. The deployment will allow the company to securely reach cloud service providers and enterprise customers operating in Equinix data centers across the Asia-Pacific region.
http://jlne.ws/HfZTV9

Screenshot: RTS Quarterly Newsletter, Q1 2012
http://jlne.ws/HfZTVb

Rapid Addition Partners With LatAm FIX Specialist Extol
http://jlne.ws/HfZWAd

Media News

One-fifth of U.S. adults read e-books as market booms, survey finds
By Ian Simpson – Reuters
One in five American adults read an electronic book in the last year, as gift-giving sped the shift away from the printed page, a Pew Research Center survey showed on Wednesday.
http://jlne.ws/HfZUbv

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

Reforming China’s capital account
Financial Times
Rather than turning into a “lame duck”, China’s government seems to have become proactive. Months before a landmark change of leadership, Beijing has speeded up its plans to open up its capital account. Beijing’s steps are still largely symbolic. But they show that the reformist agenda is at least firmly on the table.
http://jlne.ws/HfZWAg

SGX Derivatives Trading Grows
http://jlne.ws/HfZUbA

SGX welcomes KGI Futures as New Member
Singapore Exchange (SGX) announced today that Taiwan-based KGI Futures Co., Ltd has joined its derivatives market as a new Trading Member.
http://jlne.ws/HfZWAm

Osaka Securities Exchange: About Open Interest For Nikkei 225 Options – Exceeding 3 Million Units
http://jlne.ws/HfZWAo

Frontier Markets

BSE starts search for new chief executive
By James Crabtree – Financial Times
India’s Bombay Stock Exchange is beginning a search for fresh leadership after Madhu Kannan, its chief executive, left unexpectedly to join Tata Group. The process of forming a search committee to identify a successor will be led by Subramaniam Ramadorai, the bourse chairman and a widely respected Indian business figure who joined the exchange in 2010, insiders said.
http://jlne.ws/HfZWQE

Oman Crude Futures Volumes Rise 57 Percent in First Quarter
By Anthony DiPaola – Bloomberg
The Dubai Mercantile Exchange, which started trading Oman crude futures in 2007, said average daily volume for the contract rose 57 percent in the first three months of this year.
http://jlne.ws/HQZgFT

Dubai Mercantile Exchange Reaches Three Billion Barrels Traded Since Launch In Another Record Trading Month
http://jlne.ws/HfZWQJ

FirstRand’s RMB to Sell Stocks, May Cut Staff Numbers
Bloomberg
The investment-banking unit of FirstRand Ltd. (FSR) , South Africa ‘s second-biggest financial-services company, will sell all of its stakes in publicly traded stocks and may cut staff to boost returns for shareholders.
http://jlne.ws/HfZUbD

Myanmar: Opening up
By Gwen Robinson – Financial Times
Reform promises opportunities for overseas investors – but locals and neighbours alike are wary
http://jlne.ws/HfZUbG

Research and Markets: Cameroon Infrastructure Report Q1 2012 – Growth and Employment Strategy’ Aims To Average 5.5% GDP Growth Per Year Over The 2010-2020 Period
http://jlne.ws/HfZWQR

MetaTrader 5 Trading Platform Certified on GBOT
ThomasNet
MetaQuotes Software Corp. is glad to announce the successful certification of its MetaTrader 5 Trading Platform on the Global Board Of Trade (GBOT), the first international multi-asset Exchange in Mauritius. The platform has met all the technical requirements specified by GBOT and MetaQuotes has been granted ISV (independent software vendor) status by the exchange.
http://jlne.ws/HfZWQT

Closure Of Bursa Malaysia Berhad – Market Holiday
http://jlne.ws/HfZWQW

Miscellaneous News

Working With A Wall Street Recruiter To Find That Dream Brokerage Job
Forbes
Since the onset of the Great Recession, I have received many telephone calls and emails from Wall Street professionals asking if I know of anyone hiring. For long periods of time from 2009 through 2011, my answer was “No.” Firms were going out of business. The big names were absorbed by bank holding companies with attendant layoffs. Trading desks were closed. Entire business lines were no longer viable.
http://jlne.ws/HfZUs0

For Gates-Like Wealth, Look Beyond Wall Street
By ANDREW ROSS SORKIN – NY Times
Get out your smallest violin. It is harder than ever to become one of the world’s wealthiest individuals by working on Wall Street.
http://jlne.ws/HfZUs2

Insider Trading Riddle: Why Do the Rich Risk It?
By PETER J. HENNING – NY Times
The question seems to arise time and again: why would the rich jeopardize their wealth by committing an illegal act like insider trading? Some of the most prominent cases of illegal insider dealings have involved very wealthy people who made very little in profit from such trades when compared with their overall net worth.
http://jlne.ws/HfZX7b

John Lothian Newsletter

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