John Lothian Newsletter: NYSE exec says exchanges moving closer to “kill switch”; LSE Said to Cut LCH.Clearnet Bid by 30pct; Knight Takes Higher Price in Getco Sacrificing Virtu Cash

Dec 19, 2012

A NYSE official says that regulators and exchanges are nearing agreement on how to implement a shutdown mechanism for runaway trading software. Following a requirement for LCH.Clearnet to significantly increase its capital, London Stock Exchange has reduced its acquisition bid. Broker Knight Capital evaluates suitors and selects Getco’s bid for acquisition. In First Read today, take a look at our new video interview with Allan Schoenberg of CME Group, as he explains how CME Group increasingly utilizes social media as a content distribution platform to discuss market issues with customers, partners and other stakeholders.

First Read

New Restoring Customer Confidence Video

The fifth video in our Restoring Customer Confidence series deals with broker ratings. 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»
James Gellert

Ratings: How Does Your Broker Rate?
MarketsWiki.tv

If you knew the financial health of your futures broker, would that help you decide which firm to work with? James Gellert, President and CEO of Rapid Ratings, says futures broker ratings could make for more informed retail and professional investors. Gellert explains how ratings of public brokers and voluntary ratings of private brokers would provide transparency for the FCM community and its customers. Rapid Ratings uses dozens of financial ratios, based on audited financial reports, to provide a score for each firm.

In this video, a simple animation and interview with Gellert help explain broker ratings.

Watch the video »

This video is sponsored by:
Lasalletech

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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.

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Allan Schoenberg

Allan Schoenberg on the Evolution of CME Group’s Social Media Strategy
MarketsWiki.tv

Allan Schoenberg, Executive Director of Corporate Communications at CME Group, highlights new social media initiatives and describes how their social media strategy has evolved since they first created a Facebook page five years ago. In this conversation with JLN Publisher John Lothian, he explains how CME Group increasingly utilizes social media as a content distribution platform to discuss market issues with customers, partners and other stakeholders.

Schoenberg cites relationships with BM&FBOVESPA, MexDer, Dubai Mercantile Exchange and exchange partners in Asia that help CME Group distribute regional, language specific content to unique international audiences. Specifically, CME Group has used Weibo.com (a Chinese language micro-blogging site) and Youku (a Chinese language video sharing site) to initiate discussions with potential financial market participants in China.

Schoenberg contrasts Twitter’s broad appeal with StockTwit’s ability to focus conversations on specific topics and products. He also discusses how CME Group has leveraged their historical exchange photos and research images to create image based stories on Pinterest over the last year.

Watch the video »

**** Allan Schoenberg of the CME Group was on vacation when this video was shot, so it should not be held against him that he looked like Shaggy from Scooby Doo.

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FOW Names NYSE Liffe U.S. DTCC GCF Repo Index Futures as ‘Interest Rate Contract of the Year’
NYSE Liffe U.S., the innovative U.S. futures exchange of NYSE Euronext is proud to announce that its new futures contracts based on the DTCC GCF Repo Index were named ‘New Contract of the Year’ in Interest Rates by Futures and Options Week (FOW) Magazine at the 2012 FOW International Awards in London. Additionally, GCF Repo Index futures traded a new record of more than 8,600 contracts with open interest approaching 52,000 on Monday, Dec. 17.
jlne.ws/UzDitQ

***** See our video about the GCF futures from June at jlne.ws/M388oM

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CQG and Phillip Futures Expand Asia-Pacific Trading Access
CQG, Inc. and Singapore-based Phillip Futures Pte Ltd. today announced their partnership to make CQG’s high-performance trading front-end platforms available to Asia-Pacific traders.
jlne.ws/Ykg7tg

**** Phillip Futures are our neighbor across the hall, until we move offices on Saturday. More on this tomorrow.

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GFI Group Inc.: GFI FENICS develops reporting capabilities for new OTC derivatives regs in Japan
GFI Group Inc. is pleased to announce that GFI FENICS has developed an automated data report generator for FENICS Professional users in Japan to meet new Japanese regulatory reform requirements.
jlne.ws/Ykg9RW

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OptionsCity City News, December 2012
In this issue: Algo Store and developer community expands around Freeway; CEO Hazem Dawani is named in Crain’s Chicago Business “40 Under 40” list, and be sure to vote for OptionsCity in the Energy Risk Magazine Software Survey. In our blog, Kim Pike breaks down the CBOE’s LOVOL Index and Freddy Guime discusses the latest Java happenings. Trading veteran Marc Eisenberg shares his favorite Metro features in our Minute Media video. January 24-26, OptionsCity will be attending the Security Trader Association of Chicago’s (STAC) 87th Annual Mid-Winter Meeting, and save the date for our customer appreciation party on January 23rd.
jlne.ws/Ykg7JE

**** I was under 40 once, but then I played the 5th hole on the course.

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Clearinghouses Face BOE Spot Checks on Risk-Management Practices
Ben Moshinsky & Jennifer Ryan – Bloomberg
Clearinghouses face unannounced reviews into how they manage risks when the Bank of England takes over as financial supervisor next year. Clearinghouses, which act as central counterparties in derivatives transactions, will also have to show that bonuses for senior management don’t prioritize “revenues, market share and profit over systemic risk-management objectives,” the central bank said in a report on its website.
jlne.ws/Ykga8j

***** Just don’t spot check me after my pasta lunch.

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DTCC opens data centre in Singapore
Jeremy Grant in Singapore – FT.com
Asia took its first step towards establishing a trade repository for off-exchange derivatives as The Depository Trust & Clearing Corporation, the US-based post-trade group, said it had opened a data centre in Singapore.
jlne.ws/Ykg7JQ

**** Jeremy Grant would like a date center opened in Singapore.

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An American-Made Business Model Has Less Success Overseas
STEVEN M. DAVIDOFF – NYTimes.com
For years, the titans of finance have held out the promise that they could export their business model overseas and mint billions in the process. Yet, there are increasing signs that global deal-making was always a myth.
jlne.ws/Ykg808

**** I am a Glenbrook South Titan of Finance and that is no myth.

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S&P’s Greek Upgrade Could Mean More Diverse Investment in 2013
David Cottle – WSJ
For the euro zone’s guardians, the year is ending in a fashion they could scarcely have hoped for when it began. Back then, talk of a euro breakup was perhaps more mainstream that it had ever been. Once the preserve of Anglo-Saxon curmudgeons and unreconstructed Friedmanites–stopped clocks who have always hated the entire project–eurogeddon was suddenly, even urgently, investable. That Greece would have to leave the bloc was pretty close to a certainty. And once the exit door was kicked open, well…
jlne.ws/Ykga8r

**** We need more scary words in this story.

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MF Global Court Cases Dispute Letters’ Credit
DAN STRUMPF – WSJ.com
Thousands of former MF Global Holdings Ltd. customers still don’t have a chunk of their money more than a year after the brokerage firm’s collapse. But some of its big clients largely avoided similar losses, thanks to arrangements struck with the firm before its demise.
jlne.ws/Ykga8t

***** A letter of credit is as good as cash, except when the party does not want to pay.

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India Adds Sensex Appeal
SHEFALI ANAND And ASHUTOSH JOSHI – WSJ.com
International money managers are loading up on Indian stocks, propelling the country’s market to new highs even as domestic investors remain on the sidelines.
jlne.ws/Ykga8v

**** I had Sensex Appeal, but it has faded as I became older.

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Europe’s tale of two wheat contracts
Emiko Terazono – FT.com
The year has been one of the tale of two European wheat contracts – and the influence of one country: Russia.
jlne.ws/Ykg809

**** I am a Soft Red kind of guy myself.

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More companies fail transparency test
Paul Hodkinson – Financial News
More private equity-backed companies have failed to comply with the industry’s transparency code than in previous years, according to the latest report on adherence to the UK Walker guidelines.
jlne.ws/Ykg80d

***** You can see right through this story.

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JLN Forex

The forex markets – 2012 review and 2013 outlook
By: Dean Popplewell, chief currency strategist and Alfonso Esparza, senior currency strategist, OANDA

As the foreign exchange community winds down a typically eventful year, investors are already looking ahead to 2013. In 2012, central banks exerted control over their balance sheets which led to limited volatility and decreased opportunities. The global economy is expected to strengthen somewhat as the effects of last year’s global liquidity injections finally move from the “financial arena” to the real economy. Most analysts expect even the modest upticks in economic growth intersecting with still-accommodative monetary policies to provide support for other asset classes like global equities.

But how many more “questionable assets” can policymakers absorb on their balance sheets? Last year this provided sustained downward pressure on volatility and led to tighter trading ranges. In 2013, expect investors to seek out more risk to sustain high returns, which will lead to change in the self-investment process. The market should expect future investing to reflect the intensity of credit and political risk in high-yielding assets. The US output gap and labor market will again come under intense scrutiny. Can policymakers initiate the fiscal tightening required to make budgets work in the medium term without undermining the ongoing present activity?

For the complete commentary, go to: jlne.ws/V23nAi

MarketsWiki

MarketsWiki Page of the Day
Mark Pumfrey
jlne.ws/ZKMBx2

MarketsWiki Recent Updates

People

John Boehner; Mark Pumfrey; James H. Gellert

Companies, Organizations and Groups

Rapid Ratings International; Optionshop; NASDAQ OMX Group, Inc.; London Metal Exchange

Statistics

32,435,330 pages viewed, 7,292 articles, 151,336 edits
MarketsWiki Statistics

Lead Stories

NYSE exec says exchanges moving closer to “kill switch”
Sarah N. Lynch and John McCrank – Reuters
U.S. regulators and exchanges are getting closer to a framework for a “kill switch” that could be used to shut down trading before software glitches get out of control and wreak havoc on markets, a top exchange official said on Tuesday.
jlne.ws/VOR3UX

LSE Said to Cut LCH.Clearnet Bid by 30% on Capital Rules
Nandini Sukumar – Bloomberg
London Stock Exchange Group Plc (LSE) cut its bid for a majority stake in LCH.Clearnet Group Ltd. by 30 percent after European regulators forced the clearinghouse to boost capital, three people with knowledge of the matter said.
jlne.ws/YkgaoU

Knight Takes Higher Price in Getco Sacrificing Virtu Cash
Stephanie Ruhle, Zachary R. Mider & Nina Mehta – Bloomberg
Knight Capital Group Inc. (KCG)’s decision to pursue a takeover by Getco LLC gives its shareholders, mostly Wall Street firms, an opportunity for stock appreciation while surrendering the certainty of cash.
jlne.ws/R3Wp1J

Former CLS chief joins Ice Clear Europe board
Tom Osborn – Financial News
The former chief executive of CLS Bank, the world’s largest provider of foreign exchange settlement services, has joined the board of Ice Clear Europe, as the clearinghouse gears up to roll out its new currency clearing service in the New Year.
jlne.ws/Ykg80r

Spotlight swings to interdealer brokers
Brooke Masters and Philip Stafford in London and James Shotter in Zürich – FT.com
The UBS Libor settlement swings the spotlight on to the role of interdealer brokers in the burgeoning scandal, alleging that employees at these institutions actively “colluded” with rate-fixing efforts – and were handsomely rewarded for it.
jlne.ws/YkgaoV

EC to publish AIFMD rules today
William Hutchings – Financial News
The European Commission is set to publish the much-awaited, detailed rules implementing the Alternative Investment Fund Managers Directive this morning, giving the private equity, hedge funds, real estate and other parts of the asset management industry just over six months before they are due to start coming into effect.
jlne.ws/Ykgap0

UBS admits fraud in $1.5 billion Libor rigging settlement
Katharina Bart and Tom Miles – Reuters
Swiss bank UBS was hit with a $1.5 billion bill and admitted to fraud on Wednesday in order to settle charges of manipulating global benchmark interest rates.
jlne.ws/Ykgap2

Vienna exchange seeks HFTs
Michelle Price – Financial News
The chief executive of Austria’s stock exchange has said the bourse is on the hunt for more high-speed liquidity providers after signing-up US trading powerhouse Virtu Financial in September
jlne.ws/Ykgap5

France to Require BNP Paribas, SocGen to Wall Off Prop Trading
Bloomberg
French Finance Minister Pierre Moscovici is set to submit to the cabinet today a bill designed to force the country’s largest banks to fence off proprietary trading activities in dedicated units.
jlne.ws/YkgaFl

Moody’s set to tighten sovereign debt rating methodology
Farah Khalique – Financial News
Rating agency Moody’s is proposing refining its sovereign bond rating methodology to give greater importance to default and event risk, at a time when European politicians are trying to reduce the number of sovereign debt ratings and their impact on markets.
jlne.ws/Ykg8gU

Jefferies’s Exceptionalism
ANTONY CURRIE – NYTimes.com
Full-year earnings from Jefferies put Wall Street’s dilemma in a nutshell. The wannabe bulge-bracket investment bank posted record revenue of almost $3 billion for its fiscal year to Nov. 30. But the top line didn’t translate into bumper profits: the firm’s $282 million of net income equates to a paltry 8.2 percent return on equity. Its chief executive, Richard Handler, like bosses of larger rivals, wants to improve on that. He has a couple of tricks up his sleeve – but others don’t.
jlne.ws/Ykg8xc

Regulatory

Exchanges High-Speed Strategies Draw Heat From Investors
SCOTT PATTERSON – WSJ.com
A regulatory investigation into whether stock exchanges have given unfair advantages to high-speed traders has sparked complaints against the exchanges, fueling a broader debate about how the market operates and is regulated.
jlne.ws/YkgaFs

SEC Said to Weigh Ex-CFTC Enforcement Chief as General Counsel
Bloomberg
Securities and Exchange Commission Chairman Elisse Walter may hire as her top lawyer a former enforcement director from the main U.S. derivatives regulator.
jlne.ws/Ykg8xl

CFTC Issues Interim Final Rules Regarding Business Conduct and Documentation Requirements for Swap Dealers and Major Swap Participants
The Commodity Futures Trading Commission (CFTC) today approved interim final rules for swap dealers and major swap participants who would otherwise be required to comply with certain business conduct and documentation requirements found in provisions of subpart F, subpart H, and subpart I to part 23 of the Commission’s Regulations.
jlne.ws/YkgaFz

CFTC’s Division of Swap Dealer and Intermediary Oversight Issues No-Action Letter on the Obligation of Swap Dealers and Major Swap Participants to Provide the Pre-Trade Mid-Market Mark for Certain Credit Default Swaps and Interest Rate Swaps
The Commodity Futures Trading Commission’s (CFTC) Division of Swap Dealer and Intermediary Oversight (DSIO) today issued a no-action letter that provides swap dealers and major swap participants with relief from the requirement to disclose the pre-trade mid-market mark to counterparties in certain credit default swaps and interest rate swaps that are identified in the no-action letter (Covered Derivative Transactions).
jlne.ws/Ykg8NG

CFTC’s Division of Swap Dealer and Intermediary Oversight Issues Time-Limited No-Action Relief Regarding the Treatment of Swap Transactions on Natural Gas Exchange for Purposes of Making Calculations Under the Swap Dealer Definition
The Commodity Futures Trading Commission’s (CFTC) Division of Swap Dealer and Intermediary Oversight (DSIO) today issued a time-limited no-action letter that provides relief for swaps transacted on Natural Gas Exchange (NGX), with respect to the treatment of such swaps in the calculation of a person’s aggregate gross notional amount of swap dealing activity.
jlne.ws/YkgaVP

British lawmakers to rubber-stamp bank reform
Reuters via Yahoo! Finance
Britain will get the go-ahead to force banks to shield their routine retail operations from riskier investment banking activities when lawmakers announce the conclusions of an inquiry into banking reform on Friday.
jlne.ws/Ykg8NM

“Enforcement Priorities In The Alternative Space” By Bruce Karpati, Chief, SEC Enforcement Division’s Asset Management Unit, Before The Regulatory Compliance Association, New York, N.Y.
jlne.ws/YkgaVT

New Zealand’s Financial Markets Authority AFA Update: Issue # 9
jlne.ws/Ykg8NS

Exchanges & Trading Facilities

CME Group Announces the Expansion of its Currency Product Suite with the Addition of Indian Rupee FX Futures Contracts
CME Group, the world’s leading and most diverse derivatives marketplace and the owner of the largest regulated market for foreign exchange, today announced the launch of new foreign exchange (FX) futures contracts based on the Indian Rupee (INR). The target launch date for these contracts is for a trade date of Monday, January 28, 2013. INR futures will be listed on and subject to the rules and regulations of CME, pending regulatory approval.
jlne.ws/YkgaW6

CFTC Releases Rule Enforcement Review Of ICE Futures US
The Division found that the Exchange maintains an adequate disciplinary program. The Exchange has the authority to investigate potential rule violations, prosecute cases, and discipline members who are found to have violated Exchange rules. The Division found that the Exchange maintains a small but highly experienced staff in its Compliance Department (Compliance). The Division believes that the number of Compliance personnel was sufficient for enforcement purposes during the target period.
jlne.ws/Ykgbcm

NASDAQ OMX Nordic introduces clearing of interest rate swaps
NASDAQ OMX Nordic has announced the clearing of SEK denominated interest rate swaps for end client trades in the Nordic market in February 2013. This will provide the entire market with a clearing solution for standardized SEK denominated interest rate swaps.
jlne.ws/Ykgbcp

Bolsas Y Mercados Espaneoles Socdad Hldg : BME and AFI win a contract from the Algerian government to create a Public Debt market
The consortium formed by BME and AFI has been awarded a contract by the Algerian government to create an electronic Public Debt platform. The contract entails the training of the personnel who will be in charge of the functioning and maintenance of the platform and was signed by the Algerian Ministry of Finance’s General Directorate of the Treasury and the said consortium.
jlne.ws/YkgbJm

TOM MTF Trades 2nd Millionth Contract
TOM MTF is proud to announce that after trading our first millionth option contract on 10 October 2012, today only 2 months later it has traded its second millionth option contract! Volumes, market shares and open interest on TOM MTF are increasing every day. TOM MTF looks forward to the next milestones of trading 5 and 10 mio contracts.
jlne.ws/YkgbJw

November 2012 FIF Market Share And Market Dynamics Reports – Executive Summary
jlne.ws/YkgbcD

FIF Capacity Statistics For November 2012 РFour New Record Peaks: Deutsche Boerse CEF Core Total, SIAC OPRA, Deutsche B̦rse CEF Core Eurex and BATS Options MCASTPITCH AGG
jlne.ws/YkgbJy

Corporate Board Member and Equilar to Host Educational Forum for Compensation Committee Members Public Company Directors to Convene on Pressing Compensation Issues for 2013
jlne.ws/Ykgbt0

BM&FBOVESPA: Fifty More Companies Publish Sustainability Reports, Or Explain Why Not – Exchange’s Report Or Explain Initiative Eases Investors’ Access To Information About Listed Companies’ Business And Sustainability
jlne.ws/Ykgbt6

Nordic Growth Market NGM AB: NGM Welcomes Societe Generale As Member Of The Exchange
The Swedish exchange Nordic Growth Market (NGM) today announces that Societe Generale has become a trading member of NGM. Societe Generale is expected to commence trading as of today, December 19.
jlne.ws/Ykgeox

Market Cap Segment Review At NASDAQ OMX Nordic exchanges
jlne.ws/YkgbZX

Trading Hours On Nzx.com
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Irish Stock Exchange Statistics November 2012
Please click
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Irish Stock Exchange Statistics Q3 2012
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Hedge Funds & Managed Futures

Hedge fund trades that made top grade
Sam Jones and Dan McCrum – FT.com
Hedge funds have struggled through another bracing year. The average manager has made just 4.9 per cent in the past 11 months, according to Hedge Fund Research – hardly the kind of eye-watering returns the industry is known for, or charges for. Amid the disappointment, though, some trades have paid off.
jlne.ws/Ykgcgu

Nimble multi-strats draw capital
Dan McCrum and Sam Jones – FT.com
Instead of chasing the best possible trade each year, many investors are turning to a more pedestrian alternative: the large diversified “multi-strat”.
jlne.ws/YkgcgE

Wells Fargo invests in hedge fund firm Rock Creek
Associated Press via Yahoo! News
Wells Fargo & Co. said Tuesday that it has acquired a minority stake in a hedge fund firm, Rock Creek Group, as it seeks to give customers more investment options.
jlne.ws/YkgeoO

Thames River falls short of incentive targets
Sarah Krouse – Financial News
Thames River Capital has failed to meet performance targets set as part of a management incentive plan formed when the firm was acquired by F&C Asset Management, and is not expected to meet future goals, the firm said in its latest results.
jlne.ws/YkgeF4

A new recipe for currency friction
John Plender – FT.com
Growth now firmly trumps inflation in the central banking lexicon. What was already pretty clear is beyond dispute following the Federal Reserve’s new commitment to keep interest rates close to zero until US unemployment falls below 6.5 per cent.
jlne.ws/YkgcNx

New York Pensions to Add Hedge Funds to Reduce Volatility
Bloomberg
Three of New York City’s five public pension funds are seeking to add as many as 15 hedge funds for direct allocations to reduce price swings in stocks and improve investment returns.
jlne.ws/YkgeFi

Fortress Announces Successful Close of Fortress Japan Opportunity Fund II
Business Wire via Yahoo! Finance
Fortress Investment Group LLC today announced the successful close of Fortress Japan Opportunity Fund II , at its cap of ¥130 billion, or approximately $1.65 billion.
jlne.ws/YkgeVD

Greek Bond Bet Pays off for Prominent Hedge Fund
CNBC
One of the world’s most prominent hedge funds is sitting on a $500 million profit after betting that Greece would not leave the euro zone, bucking the trend in a difficult year for the industry.
jlne.ws/YkgeVG

Wages and staff costs soar at CBPE Capital
Kiel Porter – Financial News
Total wages and staff costs at UK mid-market buyout firm CBPE Capital jumped by nearly a third in 2012, according to recently released accounts.
jlne.ws/YkgeVJ

Hedge Fund Billionaire Paul Singer Just Tried To Take More Of Argentina’s Stuff
Business Insider
Now that the UN Tribunal of the Law of the Seas has ruled that Argentina will get their naval vessel out of Ghanaian port, hedge fund manager Paul Singer has no assets to hold over the country’s head for collateral.
jlne.ws/Ykgd44

Richard Costigan Re-Elected To CalPERS Board
jlne.ws/Ykgd47

Banks & Brokers

Knight Capital board split on buyout offers from Getco, Virtu
Reuters
Knight Capital Group’s board was split between two competing offers for the firm after a meeting on Monday where suitors Getco Holding Co. LLC and Virtu Financial LLC presented their sweetened bids to Knight’s directors, sources involved in the talks said.
jlne.ws/Ykgd4a

U.S. Treasury to sell stakes in 53 banks
Jessica Holzer – Dow Jones
The U.S. Treasury announced it would begin selling its stakes in two-thirds of the remaining banks that took government bailout funds during the financial crisis.
jlne.ws/Ykgfca

ABN AMRO cuts 40 equity derivatives jobs
Reuters
Dutch state-owned bank ABN AMRO said on Monday it is closing down part of its equity derivatives business with the loss of 40 jobs in New York, London, Frankfurt and Amsterdam.
jlne.ws/Ykgfcd

JP Morgan on course for 2012 fee crown
Matt Turner – Financial News
JP Morgan is on course to finish the year as the top fee earner in the global capital markets and loan markets, with only a second-placed showing in advisory denying the US bank a clean sweep in the 2012 revenue rankings.
jlne.ws/Ykgd4e

R.J. O’Brien Sends Letter to Judge in MF Global Bankruptcy Case in Support of Customer Advocacy Group Motion to Compel …
R.J. O’Brien & Associates (RJO), the oldest and largest independent futures brokerage and clearing firm in the United States, sent a letter yesterday to the judge presiding in the U.S. bankruptcy case of MF Global, Inc., declaring the firm’s support of a recent motion filed by a customer advocacy group.
jlne.ws/Ykgfcj

Deutsche Bank co-CEO apologizes over tax raid call
Associated Press via Yahoo! News
Deutsche Bank co-chief executive Juergen Fitschen has expressed regret over a phone call he made to a senior German politician following a raid at the bank’s offices last week.
jlne.ws/Ykgdku

Jefferies Reports Fourth Quarter and 2012 Fiscal Year Financial Results
Business Wire via Yahoo! Finance
Jefferies Group, Inc. announced today financial results for its fiscal fourth quarter and year ended November 30, 2012.
jlne.ws/YkgdkB

Italian court to rule in landmark derivatives case
Reuters via Yahoo! News
MILAN – An Italian court is expected to rule on Wednesday on whether four foreign banks missold derivatives to the city of Milan in a case seen as a litmus test for hundreds of local governments facing big losses from complex financial contracts.
jlne.ws/YkgdkE

JPMorgan names new mortgage banking chief
Reuters via Yahoo! News
JPMorgan Chase & Co promoted Kevin Watters to be chief of its home loan business, relieving Co-Chief Operating Officer Frank Bisignano of the temporary assignment to clean up the lender’s mortgage issues.
jlne.ws/YkgdkH

Sants’ Barclays package worth as much as $4.8 million – FT
Reuters via Yahoo! Finance
Hector Sants, the former head of the Financial Services authority, will receive a remuneration package worth as much as 3 million pounds upon his move to Barclays Plc next month, the Financial Times reported on Wednesday.
jlne.ws/YkgdkK

A Banker’s Costly Cab Ride
AARON LUCCHETTI – WSJ.com
In the eyes of the law, William Bryan Jennings’s confrontation with a taxicab driver on the way home from a Morgan Stanley holiday party last December never happened. Despite a whirlwind of tabloid headlines unleashed after the 46-year-old investment banker pulled a pen knife out of his briefcase over a disputed fare, prosecutors dropped assault and hate-crime charges against him. Mr. Jennings was a free man. But Morgan Stanley has declined to forgive and forget.
jlne.ws/YkgfsS

Clearing & Settlement

MarkitSERV Enhances Client Clearing Support for ICE Clear Credit
MarkitSERV, the most widely used electronic trade processing service for OTC derivative transactions, has enhanced its connectivity and trade management support for buy-side clearing of credit default swap (CDS) transactions at ICE Clear Credit. The first production trades using MarkitSERV’s enhanced service were cleared by ICE on November 28th.
jlne.ws/Ygx8V6

Indexes & Products

Tom Lydon’s 2013 ETF Outlook
ETF Trends via Yahoo! Finance
ETF Trends Editor Tom Lydon appeared on Yahoo Finance’s Breakout on Monday to discuss why ETFs continue to outsell mutual funds, and some of his favorite sectors for 2013.
jlne.ws/YkgdB4

S&P Dow Jones Indices Announces Changes In Canadian Indices – A Deletion From S&P/TSX Venture Composite And Venture Select Indices
jlne.ws/YkgdB8

Deutsche Bank Announces Distributions for db-X Target Date Funds
jlne.ws/YkgdBe

Deutsche Bank Announces Distributions for db-X MSCI Currency-Hedged Equity Funds
jlne.ws/YkgfZI

Technology

euNetworks Connects London’s Newest Data Centre
euNetworks Group Limited (SGX: H23.SI), a pan-European bandwidth infrastructure provider, today announced it has connected up London’s newest addition to the data centre market. Connectivity services from euNetworks will be available when Volta’s data centre becomes operational early in 2013.
jlne.ws/YkgdRA

Enforcement

Insider-Trade Verdicts May Propel SAC Case
MICHAEL ROTHFELD – WSJ.com
A guilty verdict against two hedge-fund managers for insider trading might enable prosecutors to get a step closer to SAC Capital Advisors LP founder Steven A. Cohen, lawyers and others familiar with the case said.
jlne.ws/YkgdRJ

SEC Revokes Registration of Toronto-Based Broker and Bans Two Executives from U.S. Securities Industry for Allowing Layering
The Securities and Exchange Commission today charged a Toronto-based brokerage firm and its top two executives for failing to supervise overseas day traders who used the firm’s order management system to engage repeatedly in a manipulative trading practice known as layering.
jlne.ws/YkgdRN

SEC Charges Financial Media Company and Executives Involved in Accounting Fraud
The Securities and Exchange Commission today charged a digital financial media company and three executives for their roles in an accounting fraud that artificially inflated company revenues and misstated operating income to investors.
jlne.ws/Ykge85

UBS fined £160 million for significant failings in relation to LIBOR and EURIBOR
The Financial Services Authority (FSA) has fined UBS AG (UBS) £160 million for misconduct relating to the London Interbank Offered Rate (LIBOR) and the Euro Interbank Offered Rate (EURIBOR). This is the largest fine ever imposed by the FSA.
jlne.ws/Ykgggb

LIBOR: FINMA Concludes Proceedings Against UBS And Orders Disgorgement Of Profits
jlne.ws/Ykggge

Investor Alert: BCSC issues warning about Flag Resources (1985) Limited
jlne.ws/Ykgggj

UBS Board Of Directors Authorizes Settlements Of LIBOR-Related Claims With US And UK Authorities; Swiss Regulator To Issue Order
jlne.ws/Ykgggn

Former BG executive jailed for insider trading
jlne.ws/Ykgh3P

Corporate communications officer admits to making misrepresentations
jlne.ws/Ykgh3R

BCSC panel rules that commission has jurisdiction to hear allegations against Swiss national
jlne.ws/Ykgh3V

Environmental & Energy

A Big, and Risky, Energy Bet
The New York Times
The compact assembly of towers, tubes and tanks that make up the Oryx natural gas processing plant is almost lost in a vast petrochemical complex that rises here like a hazy mirage from a vast ocean of sand.
jlne.ws/T6wG8u

**RKB — The track record of natural gas to diesel conversion is spotty but Qatar firm is betting on global demand for cleaner diesel.

IEA warns coal renaissance threatens climate crisis
Business Green
Without urgent action to deliver a high carbon price or bring on line new unconventional gas reserves, coal is on track to displace oil as the global economy’s dominant energy source, resulting in potentially catastrophic consequences for efforts to curb carbon emissions.
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**RKB – More in Coal section.

EU to award rest of green energy fund within 12 months
Reuters
The European Commission aims to award remaining funding for renewable energy and carbon capture projects within the coming 12 months, EU Environment Commissioner Connie Hedegaard said on Tuesday.
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Asia-Pacific

HKEx Announces Details Of Temporary Holiday Risk Management Arrangements
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Osaka Securities Exchange SPAN Parameters During The Year Change Period
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Frontier Markets

Qatar Exchange And Qatar Finance & Business Academy Sign Memorandum Of Understanding To Boost Professional Skills
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Closure Of Bursa Malaysia Berhad – Christmas And New Year
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Abu Dhabi Securities Exchange Discuss Cooperation With Korean Embassy
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