John Lothian Newsletter: CFTC temporarily narrowing US persons definition for swaps; EU Deal Reached on Bank Supervisor; Thomson Reuters seeks to run new Libor

Dec 13, 2012

The CFTC agrees to back away from setting global swap rules, and will (so far) temporarily redefine new regulations to target US participants. After months of noise and other things commonly associated with elephants, the EU arrives at an agreementto consolidate eurozone banking control (mostly) under a single supervisor. Thomson Reuters joins the LIBOR Derby with a bid to take over administration of setting the international lending rate. In First Read today, check out the new interview with CME Group’s Sean Tully, who talks with JLN’s Doug Ashburn about the company’s new interest rate swap futures contract.

First Read

Newedge to lead the Way to Next Generation Clearing and Execution Model
Newedge, a global leader in multi-asset brokerage, execution and clearing, today announced it is considering a project to enhance its competitiveness in the new market environment and regulatory framework.
jlne.ws/XX4IPN

++++

Brodsky leaves a transformed CBOE
Crain’s Chicago Business
In 16-plus years, William Brodsky turned the small, member-run options organization into the world’s largest options exchange with a half-billion dollars in revenue.
jlne.ws/SWLMgS

**** He did very well.

++++

CBOE’s New CEO Tilly Pledges to Expand VIX Trading
Bloomberg
Edward Tilly, who will become chief executive officer of CBOE Holdings Inc. next year, said he will expand trading of the Chicago Board Options Exchange Volatility Index to drive growth at the biggest U.S. options market.
jlne.ws/SWLN48

**** Ed Tilly gets it.

++++

Sean Tully

CME Group’s Sean Tully Introduces Deliverable Interest Rate Swap Futures
MarketsWiki.tv

Sean Tully is the managing director of interest rate futures products for CME Group, the world’s largest derivatives exchange. He recently led the development and implementation of CME’s Deliverable Interest Rate Swap Futures, a new type of derivatives product that aims to offer interest rate swap exposure, combined with the liquidity, transparency and margin efficiency of a futures contract.

Tully is a 20-year veteran of the financial sector who, prior to joining CME Group in August 2011, led the fixed income trading group at German banking firm WestLB and, prior to that, spent over ten years as a derivatives trader with Citibank and Greenwich Capital. Tully spoke with John Lothian News Editor-at-Large Doug Ashburn about the new interest rate swap futures contracts, which launched on December 3, 2012.

Watch the video »

++++

The Biggest Risk on Wall Street – Still Rogue Traders, Not Rogue Computers
Andrew Waxman – Advanced Trading
As we digest the latest episode, this time Rochdale Securities, and before that UBS, it is worthwhile looking again at what investment banks can do to prevent and/or mitigate this threat. Specific risk mitigation activities are only one part of the solution, which is nothing less than a shift in company culture and objectives, and technology must play a vital role in that. First, firms need to continue to reshape their culture to reflect the change in business strategy in the post-Dodd Frank world. Management should serve notice to employees, senior and junior alike, that the days of rewarding unapproved risky trading activity are gone.
jlne.ws/1288oP1

**** Fear and greed rule human traders; stupid programming rules computers.

++++

In a Victory for Regulators, Judge Dismisses a Mutual Fund Lawsuit
BEN PROTESS – NYTimes.com
Wall Street suffered a rare courtroom loss on Wednesday after a federal judge sided with regulators who wanted to keep a closer eye on freewheeling derivatives trading.
jlne.ws/SWLN4c

**** There is one victory.

++++

New Restoring Customer Confidence Video
The fourth video in our Restoring Customer Confidence series deals with third-party custodians. Each week we will post a new idea answering the question – how do you restore customer confidence and bring traders back?

Restoring Customer Confidence More ideas»
Third-Party Custodians: Here, Hold On To This - Michael Markowitz Third-Party Custodians: Here, Hold On To This
MarketsWiki.tv

Futures customers are still wondering just how their money can stay protected in the case of a default by their broker. While some solutions are still in the concept stage, others are available right now. Horizon Cash Management’s Michael Markowitz explains the third-party custodian model, whereby customers set up and manage excess margin at a bank outside the brokerage firm. Third-party custodial arrangements are available now and could be one way to restore customer confidence.

In this video, a simple animation and interview with Markowitz help explain the third-party custodian model.

Watch the video »

This video is sponsored by:
Lasalletech

+++++

About the Restoring Customer Confidence video series
In the aftermath of the MF Global collapse, fraud at Peregrine Financial Group and high profile high-frequency trading shocks, John Lothian News asks – how do you restore customer confidence and bring traders back?

The Restoring Customer Confidence video series answers that question by exploring potential solutions using expert interviews and simple animations.

John Lothian News interviewed more than a dozen professionals in the industry to get their ideas and solutions. As these ideas become practice, or as new concepts are adopted by the industry, we will continue to add them to the site.

Visit the video series page on MarketsWiki.tv over the next several weeks for new ideas and solutions.

++++

Dark matter
Steve Grob – Fidessa
In cosmology, dark matter is a type of matter that the boffins reckon accounts for a large part of the total mass of the universe. It cannot be seen and neither emits nor absorbs light. And yet it is estimated to account for over 80% of the total universe – so, pretty important then. In European equities trading the rise of dark pools has created a similar enigma.
jlne.ws/SWLMxb

**** Steve Grob is always a good read.

++++

Positional plays in European indexes
Galen Stops – FOW
The European equity derivatives market got interesting this month with news that Nasdaq OMX was to acquire a stake in Dutch platform The Order Machine and Liffe launching new contracts on the Turkish IMKB 30 Index. The stage is set for an interesting 2013 in the sector.
jlne.ws/SWLMxf

**** I love the smell of competition in the morning….

++++

Hedge Fund Business Expenses Exceed $14 Billion Globally: Citi Prime Finance Survey
Business Wire via Yahoo! Finance
It takes at least $250 million in assets for a hedge fund to be self-sustaining on its management fees alone, while the largest hedge fund firms incur significant additional costs
jlne.ws/SWLN4g

++++

The Trade: When Wall Street Investors Favor Performance Over Ethics
New York Times
Another former employee of SAC Capital Advisors has been accused of insider trading, but investors don’t seem to mind, as they continue to put money into the hedge fund in search of great returns.
jlne.ws/SWLN4j

**** And the news is?

++++

‘Gamification’ looks to make work fun
Paul Taylor – FT.com
“Gamification” may sound like a new way to waste time, but proponents of the technique, which involves using strategies pioneered in popular games to drive customer and employee behaviour, claim it also delivers serious results. In particular, they claim that it can help companies and other organisations accelerate digital transformation projects by engaging, rewarding and motivating employees and customers.
jlne.ws/SWLN4m

**** This is followed by “Loserifcation”

++++

The sticks and carrots of a banking union
David Keohane | FT Alphaville
We have a banking union, kinda, sorta. After another marathon summit that stretched into the early hours of Thursday morning — with four hours apparently devoted to overcoming the differences between Paris and Berlin — a classic euro-fudge left everyone feeling relatively satisfied.
jlne.ws/SWLN4o

++++

MarketsWiki.tv


James Sinclair

MarketFactory CEO James Sinclair Explores Trends in Foreign Exchange Market Structure
MarketsWiki.tv

James Sinclair is CEO and co-founder of MarketFactory, a financial technology company that provides feed handlers to the forex market. The company’s FX Aggregator product is a single API that connects to all sources of liquidity in the foreign exchange market, including ECNs, banks, brokers and futures exchanges. Sinclair has been a foreign exchange market expert for over 25 years, having spent several years as head of research and strategy at EBS, both before and after its 2006 acquisition by ICAP. He also spent 12 years as a vice president of Asia/Pacific at Citibank. Sinclair spoke with John Lothian News Editor at Large Doug Ashburn about several FX market structure trends, including volume as measured by CLS, the relation between volume and volatility, the rise of the electronic options platform, and what sets foreign exchange apart from other asset classes. He closes with an optimistic look at some of the new platforms, suggesting there is a lot more there than meets the eye.

Watch the video »

JLN Metals


JLN Metals Interview: Kris Monaco, head of new product development at the International Securities Exchange (ISE)

The International Securities Exchange (ISE) recently announced its partnership with PureFunds in the launch of three new exchange traded funds (ETF), the PureFunds ISE Diamond/Gemstone ETF (NYSEARCA:GEM), the PureFunds ISE Mining Service ETF (NYSEARCA:MSXX), and the PureFunds ISE Junior Silver ETF (NYSEARCA:SILJ). All three ETFs track proprietary indexes developed by the ISE and are listed on NYSEArca. Kris Monaco took some time to speak with JLN Metals editor Sarah Rudolph about the characteristics and uses of these new products.

Q: How and why did ISE develop these indexes in conjunction with the PureFunds ETFs?

A: ISE developed the indexes over the past few months, after PureFunds approached us. They had interesting ideas in equity-only exposure to mining and hard assets.

When ISE became active in the ETF industry it was mostly by creating indexes that were equity-based in hard assets and natural resources, for example the First Trust ISE Revere Natural Gas ETF (NYSEARCA: FCG) is not natural gas futures but rather the companies exploring and producing natural gas. That was our first niche in ETF industry. We had success and recognition in those indexes, which became the basis for ETFs and ETNs.

When we were approached by PureFunds to design the indexes, it seemed like a good fit because that’s where we have experience. To date, we’ve developed over 30 ISE indexes, some of which are actually quite difficult to design. In this case, we first establish the purest possible definition of that space and then we start our research almost as if we were equity research analysts, calling IR teams if we have to and getting revenue segment numbers.

Though two of these sectors are widely tracked, we were being a bit more specific in the case of silver. We did not put every silver miner into the index, only junior miners – small-cap silver companies. With the Diamond/Gemstone index we’re really focusing on companies that have most of their revenue exposure to diamonds and gemstones.

It requires quite a bit of research and modeling to put a portfolio together that can be investable and tradable. Our Index Methodology Guides for each of the indexes include why a particular company was deemed to be in that space and how they are weighted in the index – in essence, the influence a company has at times of rebalancing. In this case we give more influence to companies with more exposure to the defined theme. We create factors that determine which is a pure play and which is a non-pure play and try to come up with the most investable portfolio.

For the rest of the interview, visit the JLN Metals blog at jlne.ws/RpAR0F

MarketsWiki

MarketsWiki Page of the Day
Charles L. Evans
jlne.ws/b8KDxV

MarketsWiki Recent Updates

People

Elizabeth Warren; Charles L. Evans; Alex McDonald; Shawn Bernardo; Chris Ferreri; Julian Harding; J. Christopher Giancarlo; Henry G. Stebbins; William J. Brodsky; Edward T. Tilly

Companies, Organizations and Groups

Wholesale Markets Brokers Association

Products

Miscellaneous

Evans Rule; Interest rate swaps; Fiscal cliff

Statistics

32,169,966 pages viewed, 7,283 articles, 151,139 edits
MarketsWiki Statistics

Lead Stories

CFTC temporarily narrowing US persons definition for swaps
Dow Jones Newswires
The US is set to yield some ground to foreign regulators who have complained that efforts to rein in complex derivatives at the center of the financial crisis have gone too far. The Commodity Futures Trading Commission is working on a set of rules to boost disclosure in the swaps market, where financial institutions and companies trade risks related to everything from debt defaults to the fluctuations of interest rates and currencies.
jlne.ws/SWLN4r

EU Deal Reached on Bank Supervisor
GABRIELE STEINHAUSER And LAURENCE NORMAN – WSJ.com
European Union finance ministers reached a landmark deal early Thursday that would bring many of the continent’s banks under a single supervisor, in what governments hope will be a major step toward resolving their three-year-old debt crisis.
jlne.ws/SWLMNF

Thomson Reuters seeks to run new Libor
Philip Stafford and Caroline Binham in London – FT.com
Thomson Reuters, the data provider responsible for the administration of Libor, wants to run a toughened new system after being assured by UK regulators that it is not being investigated over attempts to rig global interest rates. It is set to join its main rival Bloomberg among the bidders to operate the new system.
jlne.ws/SWLNkH

Collateral Need May Reach $6.7 Trillion for Banks, Swaps Users
Matthew Leising – Bloomberg
As much as $6.7 trillion in additional collateral may be needed to satisfy new bank capital rules and swaps-clearing mandates, according to securities- industry consultant Finadium LLC.
jlne.ws/SWLNkL

Deutsche Bank: Top Executives Fitschen, Krause Being Investigated in Tax Case
Dow Jones
Deutsche Bank AG said Wednesday that co-Chief Executive Juergen Fitschen and Chief Financial Officer Stefan Krause, both executive board members, are among those under investigation in an inquiry into suspected tax fraud, because the two executives signed off on the bank’s 2009 value-added-tax declaration.
jlne.ws/SWLNkO

HSBC: How Simple Became Complicated, and costly
Reuters via Yahoo! News
LONDON – HSBC takes its name from its roots as the Hongkong and Shanghai Banking Corporation, but there has long been a joke inside and outside the firm that the name stands for “How Simple Became Complicated”. That complexity in part explains how the London-based bank ended up with the biggest fine ever imposed on a financial firm by U.S. regulators on Tuesday – an eye-watering $1.9 billion – after a lengthy U.S. probe showed sweeping problems at the bank.
jlne.ws/SWLNkR

Rigged Libor With Police Nearby Shows Flaw of Light Touch
Bloomberg
Every morning, from his desk by the bathroom at the far end of Royal Bank of Scotland Group Plc’s trading floor overlooking London’s Liverpool Street station, Paul White punched a series of numbers into his computer.
jlne.ws/SWLMNN

The Libor conundrum: How the world throws out the rate used around the world
Washington Post
In a year rife with banking scandals, none quite rivaled the intrigue or magnitude of the alleged ma­nipu­la­tion of the global interest rate known as Libor. London-based Barclays set off a firestorm in June when it admitted to scheming to rig the benchmark that affects everything from mortgage rates to municipal bonds to credit cards around the world. Nearly half of the bank’s C-suite resigned.
jlne.ws/SWLMNO

Mysterious man behind bid for Knight Capital
CNN Money
Vincent Viola, CEO of Virtu Financial, wants to take Knight Capital private in a deal that would remove transparency from one of the market’s largest trading hubs.
jlne.ws/SWLNkX

Is Poland Europe’s next economic powerhouse?
MSNBC
WARSAW, Poland — Foreign companies flock to invest. Its balance sheet is the envy of Europe. Top university programs crank out graduates whom everyone wants to hire. Such is the current reputation of Poland, which has continued to grow during the global financial crisis as neighboring countries decline.
jlne.ws/SWLNBa

Regulatory

U.S. CFTC to Face Critics of Swaps Market Rules
Bloomberg
U.S. Commodity Futures Trading Commission rules were opposed by congressional lawmakers and parts of the derivatives industry for helping exchange-traded futures and threatening the viability of over-the-counter swaps.
jlne.ws/VAqVNo

Judge Dismisses Challenge To CFTC Mutual Fund Rule
MarketWatch
A federal district court on Wednesday rejected a challenge to a Commodity Futures Trading Commission rule requiring mutual fund companies that trade in commodities to register with the agency.
jlne.ws/SWLPJm

SEC Chief of Staff Joins Exodus
Dow Jones
The Securities and Exchange Commission said that its chief of staff, Didem A. Nisanci, will leave the agency at the end of the week, when SEC Chairman Mary Schapiro is making her exit.
jlne.ws/SWLNBh

Mixed reaction for EU’s new governance plan
Mark Cobley – Financial News
London fund managers – even those who specialise in corporate governance and socially-responsible investing – have given a mixed reaction to plans from the European Commission to toughen up company law, including a proposal to make voting disclosure compulsory for fund managers.
jlne.ws/SWLNBk

John Davidson Joins FINRA Board Of Governors
The Financial Industry Regulatory Authority (FINRA) today announced that Carol Anthony (John) Davidson, retired Senior Vice President, Controller and Chief Accounting Officer of Tyco International, will join FINRA’s Board of Governors. Mr. Davidson, who will begin his term on Jan. 1, fills the seat vacated by Ellyn Brown.
jlne.ws/SWLPJt

Testimony Before The U.S. House Financial Services Subcommittee On Capital Markets and Government Sponsored Enterprises, Washington, DC, CFTC Chairman Gary Gensler
jlne.ws/SWLNBt

Eleven EU Countries Get Parliament’s All Clear For A Financial Transaction Tax
jlne.ws/SWLPJv

WMBAA’s Giancarlo Testifies on Dodd-Frank Implementation
jlne.ws/SWLPJw

European Commission: Council Agreement On The Single Supervisory Mechanism – Statement By President Barroso
jlne.ws/SWLPJy

Opening Statement – By Steven Maijoor, ESMA Chair, At The ESMA Investor Day In Paris
jlne.ws/SWLNRO

ASIC releases key FOFA guidance
jlne.ws/SWLNRQ

ASIC chooses next generation market surveillance system
jlne.ws/SWLNRS

[ASIC] Response to submissions on revised financial requirements for electricity derivative issuers
jlne.ws/SWLNRU

Exchanges & Trading Facilities

Deutsche Börse improves connectivity to event trading application for Asian traders
Market Data & Analytics is now offering direct connectivity to AlphaFlash Trader in a data center in Sydney. This significantly improves the speed of data transmission for AlphaFlash Trader clients in the Asia-Pacific region. AlphaFlash Trader connectivity is now available in Chicago, London and Sydney.
jlne.ws/SWLNRY

CBOE’s longtime CEO Brodsky to step down in May
Ann Saphir and Doris Frankel – Reuters
William Brodsky, who transformed CBOE Holdings Inc from a member-owned exchange into a for-profit company best known as the home of Wall Street’s favorite fear index, has unexpectedly announced he will step down as chief executive in May.
jlne.ws/SWLO8c

UPDATE: CBOE’s Brodsky To Step Down In May, Succeeded By Tilly
Jacob Bunge – WSJ.com
William Brodsky, chief executive of the Chicago Board Options Exchange, plans to step down from that role in May, clearing the way for the exchange’s president, Edward Tilly, to take over as CEO, according to an announcement from CBOE Wednesday.
jlne.ws/SWLO8d

LMEswaps Win Industry Award
The London Metal Exchange (LME) won the FOW award for best new metals product of the year with its LMEswaps contracts. LMEswaps, launched in February, have traded 15,511 lots so far this year, the equivalent of $775 million.
jlne.ws/SWLPZZ

Nasdaq to Buy Thomson Reuters Units for $390 Million
Bloomberg
Nasdaq OMX Group Inc. agreed to buy Thomson Reuters Corp. units that provide investor and public relations and multimedia services for $390 million in cash as the second-largest U.S. equity exchange seeks to diversify.
jlne.ws/SWLO8j

Toronto Stock Exchange Data Issue
TMX Group advises that it is currently experiencing difficulties with its TL1 datafeed. Trading on Toronto Stock Exchange is unaffected, however data on securities with symbols beginning A-L is not being disseminated on the TL1 feed. The S&P index data has been affected. All level 2 feeds and binary level 1 feeds are not impacted. Technology staff are investigating. Additional updates will be provided.
jlne.ws/SWLQ04

Toronto Stock Exchange Data Issue Resolved
TMX Group advises that it has resolved the datafeed issue experienced this morning with its TL1 datafeed for A-L symbols. All Toronto Stock Exchange data is now up to date and operating normally.
jlne.ws/SWLQ05

Luxembourg Stock Exchange Lists First Bonds From European Stability Mechanism
jlne.ws/SWLQgo

NZX Amendments To Christmas Trading Hours And The Final Settlement Price Calculation Method
jlne.ws/SWLO8p

TSX Trading List Leaders By Volume And By Values – November 2012
jlne.ws/SWLQgw

Hedge Funds & Managed Futures

CLO Issuance Hits Post-Crisis High
Katy Burne –
The market for bonds backed by high-yield loans is at full tilt again. Issuance of collateralized loan obligations–loans made to “junk” rated companies that have been packaged up and sold to investors in pieces–has reached a post-crisis high in the U.S., according to data from the Royal Bank of Scotland.
jlne.ws/SWLOoJ

Goldman Sachs Head of Energy Research Leaves for Bridgewater
Dow Jones
Goldman Sachs Group Inc.’s head of energy research, David Greely, is joining Bridgewater Associates LP as a portfolio strategist, the hedge fund confirmed.
jlne.ws/SWLQgA

Bank of Japan’s Unlimited Loans Seen Open to Use by Hedge Funds
Bloomberg
The Bank of Japan plans to avoid restricting where money ultimately flows from its program of unlimited lending to banks, meaning cash could go to companies including hedge funds , people familiar with the central bank’s discussions said.
jlne.ws/SWLQgB

Regiment Hedge-Fund Founder Tim Peterson to Step Down in 2014
Bloomberg
Tim Peterson, who founded the $7 billion Regiment Capital Advisors LLC in 1999 after a decade at Harvard University’s endowment, plans to step down from day-to- day management of the hedge fund in mid-2014.
jlne.ws/SWLOoQ

Threadneedle appoints CEO
Mike Foster – Financial News
Threadneedle Investments has made Campbell Fleming, its former head of distribution, its new chief executive.
jlne.ws/SWLQwS

Harvard Hires Ex-Hedge-Fund Manager Bhatia in Expansion
Bloomberg
Harvard Management Co., which oversees the endowment of the world’s richest university with $30.7 billion, hired Sanjiv Bhatia and three other portfolio managers as it expands it stock markets team.
jlne.ws/SWLQwX

Texas Pension Manager Paid $1 Million Trails Peers Who Make Less
Bloomberg
Britt Harris arrived at the Teacher Retirement System of Texas in 2006 from the world’s biggest hedge fund with a mandate to improve the pension’s performance. He also brought a Wall Street attitude about pay.
jlne.ws/SWLOoT

GrainCorp Rejects Revised Archer Daniels Bid
MARK SCOTT – NYTimes.com
GrainCorp of Australia rejected a $2.9 billion revised takeover offer from the Archer Daniels Midland Company on Thursday, saying the bid undervalued the company.
jlne.ws/SWLOoY

BlackRock Says it Favors Italian, Spanish Debt Over Bunds
Bloomberg
BlackRock Inc. , the world’s biggest fund manager with $3.67 trillion in assets, said it favors Italian and Spanish debt over bonds from so-called core countries such as Germany.
jlne.ws/SWLQx2

Federal Reserve Board And Federal Open Market Committee Release Economic Projections From The December 11-12 FOMC Meeting
jlne.ws/SWLOoZ

Banks & Brokers

Instinet adds multi-strategy functionality to Plazma CMS platform
Instinet Incorporated, an independent, global agency-only broker, today announced the launch of an enhanced version of Plazma, its global, broker-neutral, multi-asset commission management platform.
jlne.ws/SWLQx7

Lloyd Blankfein Interviewed at The New York Times DealBook Conference
In an interview with Andrew Ross Sorkin, editor-at-large of The New York Times DealBook, Goldman Sachs Chairman and CEO Lloyd Blankfein discussed the “fiscal cliff”, the current state of the financial industry, and the global economy.
jlne.ws/SWLOFi

Barclays Is Set to Join Cost-Cutting Crowd
DAVID ENRICH And DANA CIMILLUCA – WSJ.com
Barclays PLC plans to eliminate as many as 2,000 jobs in its investment bank as part of a broad restructuring of the company, according to people familiar with the bank’s plans, becoming the latest entry in a global banking cost-cutting spree.
jlne.ws/SWLOFr

HSBC to spend $700m vetting clients
CNN
HSBC will spend $700m on a global “know your customer” programme, as part of a 26-point plan agreed with US regulators to settle money laundering and sanctions breaches.
jlne.ws/SWLQNo

Banking’s Really Bad Day
Rana Foroohar | TIME.com
Four years on from the financial crisis, new banking scandals still seem to break out every few months. But this week has been particularly bad for the industry.
jlne.ws/SWLOVO

Goldman’s Rothesay signs 2012’s biggest pensions deal
Mark Cobley – Financial News
Rothesay Life, the pensions buyout insurance subsidiary of Goldman Sachs, has signed 2012’s biggest pensions buy-in with the Merchant Navy Officers’ Pension Fund, as well as a second deal with GM, as a quiet year for these deals draws to a close with a final flourish.
jlne.ws/SWLQNt

Deutsche Bank Frankfurt Headquarters Raided in CO2 Trades Probe
Bloomberg
Deutsche Bank AG ’s Frankfurt headquarters were searched today by dozens of police and prosecutors, in what the company said is part of a two-year-old tax-fraud probe linked to the sale of carbon-emission certificates.
jlne.ws/VBIFIg

Deutsche Bank to Pay $49 Million to Ex-Client, Judge Says
Bloomberg
Deutsche Bank AG was ordered by a Singapore court to pay $49 million to former client Chang Tse Wen in a dispute over losses on investments tied to Citigroup Inc. shares.
jlne.ws/SWLQNA

TradeStation Announces Launch of Technical Analysis and Trading Blog
TradeStation, a Monex Group company and an award-winning broker-dealer and futures commission merchant, today announced the launch of its new Technical Analysis and Trading Blog, a new online resource designed to keep traders up to date with market trends and action.
jlne.ws/SWLQNF

Clearing & Settlement

LCH.Clearnet takes on ASX in clearing
Philip Stafford – FT.com
LCH.Clearnet, the transatlantic clearing house, is set to compete with the Australian Stock Exchange (ASX) after announcing plans to set up an interest rate swap clearing service for the country’s domestic banks.
jlne.ws/SWLR3Z

Four of five largest Australian banks look to clear with LCH
Risk.net
LCH.Clearnet is expanding its clearing offering to domestic Australian banks but is not looking to set up a local clearing house in Australia, it says.
jlne.ws/SWLR42

OCC Announces Two Officer Promotions
OCC announced today the promotion of two officers. Alan Grigoletto to Vice President, OIC Education from Director, OIC Education. Cindy James to Vice President, Human Resources from Director, Human Resources.
jlne.ws/SWLR46

DTCC Moves To Reduce Risk In Processing Of Money Market Instruments
jlne.ws/SWLPck

DTCC Weekly Credit Default Swaps Data Tables – Week Ending December 7, 2012
jlne.ws/SWLR49

Indexes & Products

NYSE Says JPMorgan Units Will Have a Fire Wall on Copper ETF
Maria Kolesnikova – Bloomberg
JPMorgan Chase & Co. (JPM) will put a fire wall between its proposed exchange-traded fund backed by copper and its metals trading operations, according to a filing with the U.S. Securities and Exchange Commission.
jlne.ws/SWLR4a

Oslo Børs: Changes To The Composition Of The OBX Index From 21 December
jlne.ws/SWLRkp

TUI Travel To Join FTSE 100 Index
jlne.ws/SWLRkq

FTSE Italia Index Series Quarterly Review December 2012
jlne.ws/SWLPcy

Technology

Harbert Management Corporation Selects SunGard’s Investran for Fund Administration and Investor Reporting
Harbert Management Corporation (HMC) has selected SunGard’s Investran for automation of its alternative investment funds across real estate, venture, mezzanine capital, private equity, independent power, and Australian private equity.
jlne.ws/SWLPsN

SuperDerivatives to launch real-time cloud-based market data platform DGX
SuperDerivatives, the leading provider of derivatives data and analytics, will launch its new real-time cash and derivatives market data platform DGX on 12/12/12.
jlne.ws/SWLPsS

Paladyne Gains Momentum with Stand-Alone Order Management System
Paladyne Systems, Inc., a Broadridge Financial Solutions, Inc. Company and leading provider of next generation investment management solutions, today announced it has lifted out its order management system for hedge funds, asset managers and prime brokers, as a stand-alone product.
jlne.ws/SWLPsV

Enforcement

Hedge Fund Manager to Pay $44 Million for Illegal Trading in Chinese Bank Stocks
The Securities and Exchange Commission today charged the manager of two New York-based hedge funds with conducting a pair of trading schemes involving Chinese bank stocks and making $16.7 million in illicit profits. He and his firms have agreed to pay $44 million to settle the SEC’s charges.
jlne.ws/SWLRkA

SEC Charges New Jersey-Based Consultant to Chinese Reverse Merger Companies with Violating Securities Laws
The Securities and Exchange Commission today charged a New Jersey-based consultant with violating securities laws and defrauding some investors while helping Chinese companies gain access to the U.S. capital markets.
jlne.ws/SWLRkB

[FSA] Directors of Black and White Group Limited fined and banned for widespread mortgage and PPI failings
jlne.ws/SWLPt2

Environmental & Energy

Asia-Pacific

Chinese Banks’ Battle for Deposits Spurs Concerns
LINGLING WEI And DINNY MCMAHON – WSJ.com
To boost their deposit levels ahead of an expected year-end regulatory review, Chinese banks have recently accelerated their sales of high-yield investment products to customers, raising new concerns about the financial system and spurring the government to step up its oversight of the products.
jlne.ws/SWLRkF

Tokyo Loses Out as Foreign Banks Refocus
CNBC
Standard Chartered has welcomed Japan’s wealthy over the years at its stylishly decorated branch in central Tokyo. But the bank is closing the branch next spring and pulling out of the priority banking business in Japan, the latest in a growing line of foreign banks that are shrinking their operations in the world’s third-largest economy.
jlne.ws/SWLRkG

Press Conference By Ikko Nakatsuka, Japan’s Minister For Financial Services
jlne.ws/SWLPt3

Tokyo Stock Exchange: ING Bank N.V To List Largest Yen-Denominated Foreign Bond Of 2012 On TOKYO PRO-BOND Market With Value Of JPY 175.9 Billion
jlne.ws/SWLRkH

HKEx: Exchange Publishes Consultation Conclusions On Board Diversity
jlne.ws/SWLSot

Public Consultations On Regulatory Proposals Remain Top Of Hong Kong Securities And Futures Commission’s Agenda
jlne.ws/SWLSou

Gui Minjie Of The China Securities Regulatory Commission: Continue To Promote Shanghai Stock Exchange’s Legal Construction
jlne.ws/SWLRAU

Osaka Securities Exchange-FX Trading Schedule From Christmas To Beginning Of The Year
jlne.ws/SWLRAW

Tokyo Grain Exchange Wins FOW Award For International 2012 New Agricultural Contract Of The Year For Rice Futures
jlne.ws/SWLRAX

3rd Shanghai Stock Exchange Legal Forum Unveiled In Shanghai
jlne.ws/SWLRAY

Frontier Markets

DME named “Exchange of the Year” at FOW International Awards
DME (Dubai Mercantile Exchange) has been named the “Exchange of the Year” for Australasia and Middle East & Africa by leading industry publication FOW. DME beat off stiff competition from the other Dubai-based exchange, DGCX, to win the coveted title, in what organisers described as a unanimous decision:
jlne.ws/SWLRAZ

PMEX board of directors appoints new chairman
The News International
Shazad G Dada has been elected as the new chairman of the board of Pakistan Mercantile Exchange (PMEX), according to a statement.
jlne.ws/SWLRB2

Bursa Malaysia Selects NASDAQ OMX To Power Its Trading Platform
Bursa Malaysia Bhd has selected NASDAQ OMX Group, Inc to power its securities market trading through the latter’s industry leading technology, X-Stream INET.
jlne.ws/SWLRB4

CIMB Says RBS to Help Regain Top Arranger Spot: Islamic Finance
Bloomberg
CIMB Group Holdings Bhd. plans to take advantage of its purchase of Royal Bank of Scotland Group Plc’s Asian operations to regain its position as the world’s top sukuk arranger after slipping to second place in 2012.
jlne.ws/SWLRB7

ITG Expands POSIT To Malaysia – Brings Global Block Liquidity Coverage To 28 Markets
jlne.ws/SWLSoI

Abu Dhabi Securities Exchange Adopts Pre-Closing Session Call Auction
jlne.ws/SWLRBc

The Egyptian Exchange (EGX) Monthly Statistical Report November 2012
jlne.ws/SWLSoK

John Lothian Newsletter

We visit more than 100 websites daily for financial news (Would YOU do that?)

“John Lothian and Company… our industry intelligence.”

Rick Lane

CEO, Trading Technologies

Past JLN Newsletters

Pin It on Pinterest

Share This Story