John Lothian Newsletter: NYSE Euronext announces proposed pan-European project for SMEs; Eris Exchange to Offer Rate-Swap Future With Margin to Match CME; S&P warns over outlook for exchanges

Dec 6, 2012

NYSE Euronext starts the clock on the creation of a new Europe-wide exchange targeted at small and medium sized companies. Eris Exchange plans to cut a large chunk of its interest-rate swap contract margin requirements to better compete with rival CME Group. Standard & Poor’s notes that volume in the exchange sector has been a bit off of late, and believes that those volume problems could continue into next year. In First Read today, we have new interviews from the recent WMBAA SEFCON III convention; take a look inside to see industry leaders speak on a variety of regulatory topics.

First Read

2012 SEFCON III Videos

2012 SEFCON III Videos

The Wholesale Markets Brokers’ Association Americas (WMBAA) is an industry advocacy group made up of five inter-dealer brokerage firms (IDBs): BGC Partners, GFI Group, ICAP, Tradition and Tullett Prebon. Since 2010, the WMBAA has hosted an annual conference on issues surrounding swap execution facilities (SEFs), a new type of financial transaction execution entity created by the Dodd-Frank Act. On November 13, 2012, John Lothian News Editor-at-Large Doug Ashburn attended the third such conference, 2012 SEFCON III.

During 2012 SEFCON III John Lothian News interviewed five key members of the WMBAA. Click hereto watch all the interviews or choose one from below:

  • 2012 SEFCON III Interview Highlights (watch »)
  • European Swaps Perspective from Alex McDonald of the WMBA (watch »)
  • An Intro to IDBs and SEF Regulation from ICAP’s Chris Ferreri (watch »)
  • OTC Brokers vs. Exchanges and the Futurization of Swaps from Julian Harding of Tradition (watch »)
  • Evolution of OTC Products and Regulations Across Jurisdictions from Shawn Bernardo of Tullett Prebon (watch »)
  • Chris Giancarlo of GFI Group Discusses the Need for Regulatory Balance (watch »)

Watch the videos »


NFA Sees Jump in Series 3 Registrations
By John J. Lothian
The National Futures Association, the self-regulatory organization of the U.S. futures industry that is assuming greater responsibilities to regulate swaps participants, is seeing a jump in Series 3 exams and registrations.

Test taking for the Series 3 are up over 250% in November versus the average monthly exams from January to July of this year, according to statistics NFA provided to John Lothian News. NFA statistics showed 822 exams were taken in November versus an average of 326 from January to July. In August 448 exams were taken, September 447 and October 756.

Also, the NFA’s statistics on fingerprint cards submitted and sent to the FBI showed an increase in October of over 250% from the January to August average. October saw 1229 fingerprint cards submitted to the FBI, versus an average of 436 per month from January to August of 2012. Cards submitted to the NFA in September totaled 789.

For the rest of the story, go to:


Sam Furness Releases Christmas Song to Support Futures For Kids
The son of John J. Lothian & Company, Inc. advisory board member Clive Furness has released a holiday song online with the proceeds donated to the U.K. children’s charity Futures For Kids. Sam Furness, 23, has released HO! HO! HO! (Way to Go!), a 3:49 minute track of Christmas-themed 60’s pop music in an effort to raise funds for Futures for Kids.

The song is available at to listen to and you can download it after naming your own price to donate to Futures for Kids.

The younger Furness is a year removed from graduating from university with a drama degree. He wrote the sold and played all the instruments except the drums. He also did all the vocals. He is pursuing a career as a musician, while also working for a headhunting company in the music industry.

~John J. Lothian


Icap charity day 2012
Financial News
Icap was this year celebrating it’s 20th annual charity day, where celebrities answer the phones in a bid to broker trades and boost volumes. Kate Middleton’s pregnancy counted her out of the fun this year, but the firm was still able to attract a host of top names, including Goldie Hawn, Jeremy Clarkson and Mo Farah


MarketAxess Preparing for Exchange-Like Trade in Corporate Bonds
Katy Burne – Dow Jones
MarketAxess Holdings is readying an exchange-like system for corporate bonds as large investors increasingly look to trade directly with one another. The company already operates the largest electronic platform for institutions trading in corporate bonds in the U.S.


SEC’s Top Markets Official to Leave
The Securities and Exchange Commission‘s top markets official is leaving the agency, the latest top staffer to head for the exits as SEC Chairman Mary Schapiro prepares to step down next week. Robert W. Cook has been atop the SEC’s markets and trading division since 2009, a period marred by the 2010 “flash crash” and several other stock-market glitches.


European SMEs receive double boost
Michelle Price – Financial News
Europe’s small and mid-sized companies received a boost yesterday with the creation of a new pan-European SME exchange and the prospect of the relaxation of rules on UK SME stock investing. The announcements come at a difficult time for Europe’s equity capital markets, where listings among small and medium firms have fallen in recent years.


New Restoring Customer Confidence Video
The third video in our Restoring Customer Confidence series deals with confirmation of segregated funds. 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»
Confirmations: Made in China - Gary DeWaal

Confirmations: Made in China

Gary DeWaal, group general counsel at Newedge, noted that Peregrine Financial Group (PFG) was able to dodge regulatory audit checks of its customer segregated funds for more than 20 years. DeWaal says that simply wouldn’t happen if the US adopted the system used in China’s futures markets called the China Futures Margin Monitoring Center Co. Ltd. (CFMMC). In November 2012, the National Futures Association and CME Group did just that, hiring AlphaMetrix to take on the job of confirming the money FCMs say they have in their segregated accounts, with money that is held at the bank.

In this video, a simple animation and interview with DeWaal help explain the CFMMC model.

Watch the video »

This video is sponsored by:


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 over the next several weeks for new ideas and solutions.


Trail to a Hedge Fund, From a Cluster of Cases
In April 2009, an F.B.I. agent visited the Silicon Valley home of Richard Choo-Beng Lee, a hedge fund manager with deep contacts inside technology companies. The government, the agent said, had overwhelming proof that Mr. Lee had engaged in insider trading. Within weeks, Mr. Lee confessed and began cooperating.


Foreign fund managers struggle against home bias
William Hutchings – Financial News
Asset managers hoping to break into a new market have run up against a preference for managers that are already established, according to new research on the US mutual fund market.


Papering over the cracks at Deutsche (allegedly)
Kate Mackenzie | FT Alphaville
Deutsche Bank failed to recognise up to $12bn of paper losses during the financial crisis, helping the bank avoid a government bail-out, three former bank employees have alleged in complaints to US regulators. That’s from a story by the FT’s Tom Braithwaite, Kara Scannell and Michael Mackenzie. Citing those ever-dependable people familiar with the matter, it seems three individual Deutsche staff went separately to the SEC in 2010 and 2011. What’s the collective noun for “whistleblowers.”


Nassim Taleb Is Annoying, but “Antifragile” Is Still Worth Reading
Scientific American
Nassim Nicholas Taleb can be a pain in the ass. After I invited him to speak at Stevens Institute of Technology a year ago, he made all kinds of demands about where, when and how the event should take place and be publicized–or rather, not publicized. He loathes journalists so much that he almost backed out of his talk after learning that local media might attend.


The Futures Trader Turned Airline Baggage Handler
As an independent trader at the Chicago Mercantile Exchange Group’s Chicago headquarters, Bruce Bere exchanged futures contracts.


Know What You’ll Look Like in 30 Years — Maybe Then You’ll Max Out Your 401(k)
Marcus Wohlsen –
Don’t think you’ll ever get old? Keith Richards probably didn’t either. But at least he had a retirement plan. Chances are good, however, that you’re not saving enough for your retirement. To convince you to sock away enough gold for your golden years, Merrill Edge has launched an online magic mirror to remind you that you won’t be forever young.


Todd Fulton

Todd Fulton of Pioneer Futures on CTA Fees, Capacity Caps and Managed Futures Mutual Funds (Part 2/2)

Todd Fulton, vice president, managed futures at Pioneer Futures, has been around the CTA space for more than 20 years. In Part 2 of our conversation, he spoke with JLN Managed Futures editor Jim Kharouf about emerging managers’ impact on the managed futures space as well as the effect of capacity caps have on various funds. He also discussed how flexible CTAs can be on fees. Fulton says some clients can get ‘zero and 25’ fee structures. And he discussed the potential for managed futures mutual funds, the plusses and questions that still remain for that product.

Watch the video »

Also see: Todd Fulton of Pioneer Futures on What Investors Want in Emerging Managers (Part 1 of 2)

JLN Options

Cheap volatility, but big potential in China
Andrew Giovinazzi, MarketWatch
Look at the VIX inch up in the face of very slow market activity . After trading the S&P 500 on the CBOE when I was younger, I can tell you what that feeling is. The paper is very thin, and it is buying options out of fear. Liquidity providers keep raising the prices since they don’t want a large position right now waiting for some answer out of Washington.

MIAX Receives Approval Order from the United States Securities and Exchange Commission to Become Newest Equity Options Exchange; Trading to Commence on December 7, 2012
Press Release
MIAX Options Exchange (“MIAX”) announced today that on December 3, 2012, it received an Approval Order from the United States Securities and Exchange Commission (“SEC”) of its Application for Registration as a National Securities Exchange, and thus MIAX will act as its own self-regulatory organization. [Release No. 34-68341; File No.10-207.] Trading on MIAX, a fully electronic options trading exchange, is scheduled to commence on December 7, 2012.

PowerShares Readies ‘Downside Hedged’ ETF
Tom Lydon, ETF Trends
In response to the growing demand for strategies that mitigate risk and volatility, Invesco PowerShares will launch a new actively managed exchange traded fund that hedges downside risk with VIX options and cash positions.


MarketsWiki Page of the Day
MIAX Options Exchange

MarketsWiki Recent Updates


David Mudie; Deborah J. Bollman

Companies, Organizations and Groups

Rosenthal Collins Group LLC; MIAX Options Exchange


RCG Onyx Plus


31,878,115 pages viewed, 7,271 articles, 150,877 edits
MarketsWiki Statistics

Lead Stories

NYSE Euronext announces proposed pan-European project for SMEs
Following the recommendations of its Strategic Planning Committee for SMEs, NYSE Euronext (NYX) today announced plans to launch a pan-European exchange especially for small and medium-sized companies, developed in consultation with all of the Group’s European markets.

Eris Exchange to Offer Rate-Swap Future With Margin to Match CME
Matthew Leising – Bloomberg
Eris Exchange LLC plans to lower margin requirements on new interest-rate swap futures to match similar contracts CME Group Inc. (CME) started offering this week. The Chicago-based exchange will give users margin savings of 40 percent to 80 percent as of Dec. 10 on standardized contracts that have quarterly effective dates, the company said in an e-mailed statement.

S&P warns over outlook for exchanges
Philip Stafford –
The credit outlook for exchanges and clearing houses was turning negative as the industry faced another year of declining revenues from trading and high fixed costs, Standard & Poor’s has warned. The credit rating agency on Wednesday forecast the global drop in volumes that has depressed the results of the world’s equity and derivatives bourses would extend into 2013.

Deutsche hid up to $12bn losses, say staff
Tom Braithwaite, Kara Scannell and Michael Mackenzie in New York –
Deutsche Bank failed to recognise up to $12bn of paper losses during the financial crisis, helping the bank avoid a government bail-out, three former bank employees have alleged in complaints to US regulators.

WhiteHorse Finance IPO Postponed After Error at Nasdaq
Chris Dieterich and Telis Demos – Dow Jones
This time, don’t blame the machines. “Human error” at the Nasdaq Stock Market led to the postponement of an IPO from WhiteHorse Finance Inc. (WHF) on Wednesday, according to the exchange. Nasdaq OMX Group Inc. (NDAQ) inadvertently halted the IPO rather than simply push back the timing Wednesday morning, according to people familiar with events at the exchange.

S&P cuts Greece’s long-term debt rating to ‘selective default’
Reuters via Yahoo! Finance
NEW YORK – Standard & Poor’s on Wednesday cut Greece’s sovereign long-term foreign currency credit rating to “selective default” from an already low “CCC” rating. Last week …

Concerns Mount That Investors Might Balk at Debt Buyback in Greece
The hedge funds holding Greek bonds may have become too greedy for their own good. It’s just two days before the books close on a plan to reduce Greece’s debt load by having the country purchase its deeply discounted bonds from banks and investors. But bankers close to the transaction are voicing concerns that hedge funds might “blow up the deal” by holding out for a higher price.


How Did Wall Street Do on Sandy?
Securities-market regulators are seeking details on the performance of banks’ and brokers’ disaster-recovery plans during Superstorm Sandy, including firms’ ability to effectively trade when the New York Stock Exchange is down.

Khuzami Deathwatch: SEC Ignores Tips About $12 Billion of Hidden Losses at Deutsche Bank
Naked Capitalism
Two days ago, we said it was time to fire the SEC’s chief of enforcement Robert Khuzami, who has not provided the tough policing warranted by the biggest financial crisis in the agency’s history. We didn’t anticipate that the story of Khuzami’s negligence would blow so big so quickly.

CFTC’s Division of Market Oversight Provides Swap Dealers With Swap Data Reporting Relief With Respect To Equity Swaps, Foreign Exchange Swaps and Other Commodity Swaps, Due to Effects of Hurricane Sandy
In order to account for certain disruptions to the testing of swap data reporting systems caused by Hurricane Sandy, the Division of Market Oversight of the Commodity Futures Trading Commission (CFTC) today announced the issuance of a letter providing swap dealers with time-limited no-action relief from swap data reporting obligations with respect to equity swaps, foreign exchange swaps and other commodity swaps.

General Counsel Mark Cahn To Leave SEC
The Securities and Exchange Commission today announced that General Counsel Mark D. Cahn will leave the agency at the end of the year to return to the private sector.

NFA updates “News, Facts, Actions” with a new look and distribution schedule
Receiving up-to-date information from National Futures Association (NFA) is about to get easier. After a dozen years of communicating regulatory changes, Board of Directors actions and other news to Members and subscribers via our “News, Facts, Actions” quarterly newsletter, NFA has revamped how it will reach its readers.

FSA consults on changes to the regulation and supervision of benchmarks
The Financial Services Authority (FSA) has proposed new rules and regulations for financial benchmarks. This follows the recommendations of the Wheatley Review of the London Interbank Offered Rate (LIBOR).

FESE Response To European Commission Document On The Regulation Of Indices

Statement On Money Market Funds As To Recent Developments By SEC Commissioner Luis A. Aguilar

FESE Response To European Commission Document On The Regulation Of Indices

ASIC extends shorter PDS regime relief

Exchanges & Trading Facilities

Update in relation to the recommended offer for the acquisition of LME Holdings Limited by Hong Kong Exchanges and Clearing Limited
LME Holdings Limited (“LME Holdings”), the parent company of the London Metal Exchange Limited (“LME Limited”), is pleased to announce that earlier today the High Court of Justice in England and Wales sanctioned the Scheme without modification and confirmed the Capital Reduction forming part of the Scheme.

Eris Exchange To Launch New, Margin-Efficient Interest Rate Swap Futures
Press Release
Eris Exchange, a US-based futures exchange, today announced the December 10 launch of Eris Standards — quarterly Interest Rate Swap Futures contracts that are expected to offer margin savings of 40-80% compared to cleared OTC interest rate swaps.

Hans-Ole Jochumsen, President Of NASDAQ OMX Nordic Re-Elected As FESE – President And Deirdre Somers, CEO Of The Irish Stock Exchange Re-Elected As FESE Vice President
On 29th November 2012, the General Assembly of the Federation of European Securities Exchanges (FESE) unanimously approved to renew the appointment of Hans-Ole Jochumsen, Executive Vice President of the NASDAQ OMX Group as well as President of NASDAQ OMX Nordic and responsible for NASDAQ OMX Global Data Products, as the FESE President for one year. The Board also unanimously renewed the appointment of Deirdre Somers, CEO of the Irish Stock Exchange as Vice President of FESE for an additional year.

December 2012 InBOX
This is the December issue of InBOX, your news source from inside the BOX Options Exchange. This monthly publication will provide convenient summaries of recent developments at BOX.

Montréal Exchange Announces the 2012 University Partnership Awards
Montréal Exchange Inc. (MX), a wholly-owned subsidiary of TMX Group Limited and Canada’s derivatives exchange, today announced the winners of the 2012 University Partnership Awards. The awards ceremony was held in conjunction with TMX Group’s Board of Directors reception held last evening at the MX.

NASDAQ OMX November 2012 Volumes

Summary Of November 2012 Activities At Tokyo Commodity Exchange – TOCOM November 2012 Volume Averaged 114,505 Contracts Per Day, Up 15.8%

Bulgarian Stock Exchange Monthly Report – November 2012

CME Group Inc. Declares Annual Variable Dividend of $1.30 Per Share

BM&FBOVESPA Completes Line Of Websites For Mobile Equipment
The launch of the new version of the websites on November 30 means that BM&FBOVESPA has completed its line of products aimed at mobile equipment. The Exchange now attends to all of the market’s significant platforms: iPhones, Android Smartphones, Blackberry Smartphones and Feature Phones.

Dr Henry Kissinger Welcomed To London Stock Exchange Group’s Paternoster Series – Former Secretary Of State And Nobel Peace Laureate Speaks At London Stock Exchange Group – Latest In The Exclusive Paternoster Series Of Talks And Debates

[CBOE] Modification to Options Regulatory Fee

[CBOE] December 2012 Fee Changes

CHX INFORMATION MEMORANDA 2012-13: Consolidated Audit Trail (“CAT”) In Person Event – December 10, 2012

Direct Edge Trading Notice #12-59: Route Peg Orders Enabled On EDGA And EDGX

NZX Investor Day Presentation – 6 December 2012

Hedge Funds & Managed Futures

Wes Swank of Kyle Bass’s Hayman Capital Dies at 31 in Car Crash
Wes Swank, managing director for energy and natural resources at Hayman Capital Management LP, the hedge fund run by Kyle Bass, died on Dec. 4 in a car accident. He was 31.

Citigroup Unit Said to Advise Clients Against SAC Funds
Kelly Bit & Saijel Kishan – Bloomberg
Citigroup Inc. (C)’s private bank is advising clients not to add money to Steven A. Cohen’s hedge fund SAC Capital Advisors LP, according to two people with knowledge of the matter.

Paulson tells clients what hurt this year, how he sees future
Reuters via Yahoo! Finance
Billionaire hedge fund manager John Paulson told clients on Tuesday evening that his funds lost money this year when bets that Europe’s debt crisis would worsen failed to pay off, two people familiar with the meeting said on Wednesday.

Paulson: Real-Estate Fund Performing Well
John Paulson, the billionaire hedge-fund manager who made a fortune betting on the collapse of U.S. home prices, is sitting on a tidy profit from the real-estate market’s rebound.

Paulson’s bet on eurozone backfires
Dan McCrum in New York –
The eurozone debt crisis has confounded John Paulson, the man who made billions of dollars from the US financial collapse, causing large loses for his former flagship hedge funds.

Profits drop 60% at TCI
William Hutchings – Financial News
UK hedge fund manager TCI saw its net profits fall by 60% over the year to the end of February, to just over £17m, according to its latest accounts – but investment returns have continued to improve for the long/short equity manager.

Sun Trading expands Kx Systems technology for proprietary trading
Sun Trading Solutions LLC, an affiliate of Sun Trading LLC, will expand its use of the Kx Systems kdb+ database to support growth across its global proprietary trading activities. Through the kdb+ database, Kx Systems, the leader in high-performance database and time series analysis, enables Sun Trading to capture and analyze large volumes of trade data in real-time for quantitative trading.

Fidessa’s Sentinel Voted Best Asset Management Solution At Compliance Register Awards
Fidessa group plc today announced that Sentinel, its buy-side compliance product, has been named Best Asset Management Solution at the Compliance Register Platinum Awards. The awards, which recognise exemplary service to compliance and regulation, are decided via a rigorous process of independent nominations, a vote conducted among the members of the Academy of Compliance Excellence and finally agreed by a panel of expert judges.

Man Group Hires Makena’s John Rohal as North America Chairman
Man Group Plc , the world’s largest publicly traded hedge fund manager, hired John Rohal as its first-ever executive chairman for North America as the London- based firm seeks growth outside the U.K.

Fund Managers Lift Results With ‘Window-Dressing’ Trades
The stock of Iridex Corp., IRIX -0.75% a maker of lasers used to treat visual ailments, had been hovering around $3.43 all day on June 29. At 3:55 p.m., five minutes before the market close, it took off. It moved to $3.65, then $3.80. Less than a half second before the trading day and calendar quarter ended, Iridex jumped 4% to $4.17, capping a nearly 22% rise for the day.

SEI Study: Funds of Hedge Funds Must Adapt Business Model to Remain Competitive
Marketwire via Yahoo! Finance
According to a global study released today by SEI, there are signs of optimism for funds of hedge funds (FoHFs) as both investors and managers see the model as resilient and relevant to the long-term investing landscape, despite declining assets and recent negative headlines seeming to signal their decline.

Altegris’ Commitment To Education In Alternative Investments Honored By CAIA Association
Altegris, providers of premier alternative investments, has been named recipient of the First Annual Corporate Recognition Award from the Chartered Alternative Investment Analyst (CAIA) Association

Blackstone launching Asian real estate fund
Reuters via Yahoo! News
NEW YORK – Blackstone Group LP is starting a new real estate fund focused on Asia as it seizes on a “golden moment” to buy and sell in the property market, its president said on Wednesday.

[Video] Lack: Hedge Fund Fees Are `Ridiculous’
SL Advisors Founder Simon Lack talks about the performance of the hedge fund industry. He speaks on Bloomberg Television’s “Money Moves.”

[Video] Hedge Funds Place to Be to Outperform
Geoff Oltmans, portfolio manager of Silver Lake Credit, discusses market conditions with Bloomberg’s Cristina Alesci at the BLink Hedge Fund Summit.

KPMG Continues To Boost Its Alternative Investment Funds Practice With Several New Hires
KPMG, LLP, the U.S. audit, tax and advisory firm, is adding several new hires to its Alternative Investment Funds (AIF) practice’s national team, in Los Angeles and San Francisco. The practice is also making additional moves to boost experience and expertise in alternative investments in the firm’s West Coast offices.

MS “Deutschland” plans bond issue in Entry Standard

Banks & Brokers

Global Banking Under Siege as Nations Tighten Local Rules
Christine Harper and Yalman Onaran – Bloomberg
Global banking, a model promoted for more than 30 years by financial conglomerates cobbled together through cross-border mergers, is colliding with the post-crisis reality of stricter national regulation.

Citigroup Announces 11,000 Layoffs
ABC News via Yahoo! News
Citigroup announced it is laying off 11,000 employees, mostly in support functions, pushing the company’s stock up more than 4 percent today.

Wall Street’s Job Cuts Keep Getting Bigger, Expect Worse Next Year
The big job cut announcement from Citigroup today isn’t big enough. That’s what long-time Citi analyst Mike Mayo is saying just hours after Citi announced more than 11,000 layoffs, or a 4% headcount reduction.

Citigroup Layoff Memo Reads Like a Bad Dilbert Joke
The Atlantic Wire via Yahoo! News
Citigroup announced a massive round of cuts this morning through a press release that seems to go out of its way to make no sense. One commenter thought she was reading Dilbert for a second.

Paying humans to trade stocks is a terrible business, exhibit 77
Quartz via Yahoo! Finance
In a press release relatively devoid of specifics Citigroup announced plans to take a $1 billion charge and cut 11,000 workers today. But one interesting tidbit caught our eye.

HSBC Might Pay $1.8 Billion Money Laundering Fine
HSBC might pay a fine of $1.8 billion as part of a settlement with U.S. law-enforcement agencies over money-laundering lapses.

JPMorgan names O’Donovan corporate controller
Reuters via Yahoo! News
JPMorgan Chase & Co said it has named Mark O’Donovan as Corporate Controller, the investment bank’s principal accounting officer. The company said O’Donovan, 42, had served as Global Controller for the company since 2010 and had previously served as Global Controller for Treasury and Securities Services.

Nomura loses top rainmaker in global M&A
Daniel Schäfer in London –
One of Nomura’s most seasoned dealmakers is leaving in a move that highlighted the Japanese bank’s retreat from international investment banking. Piero Novelli has stepped down as global head of mergers and acquisitions and will leave less than two years after joining the bank, according to an internal memo.

Standard Chartered sees $330 million settlement on Iran
Reuters via Yahoo! News
HONG KONG – Standard Chartered expects to pay $330 million to settle a case with U.S. regulators who accused the Asia-focused bank of failing to comply with sanctions against Iran, further denting profit growth this year.

Ex-Deutsche Bank employees say bank hid $12 billion in losses: FT
Reuters via Yahoo! News
LONDON – Three former Deutsche Bank employees have filed complaints with the U.S. securities regulators claiming the bank failed to recognize up to $12 billion of unrealized losses during the financial crisis, the Financial Times reported on Wednesday.

British Bankers’ Association Welcomes Measures For Businesses And Growth In Autumn Statement 2012

Ex-UBS Banker Sues Olenicoff for Malicious Lawsuit
A former UBS AG banker who became a whistleblower sued Igor Olenicoff over the California billionaire’s failed lawsuit blaming the banker for his guilty plea to filing a false tax return.

Clearing & Settlement

CME Group Clearing Advisory: CDS Sector Mapping

Indexes & Products

ETP flows swing in favour of equities
Sarah Krouse – Financial News
Investors in exchange-traded products shifted their focus from fixed income to equities in November, according to new research, mirroring a trend in the wider investment market.

Talanx to be included in SDAX

PCF files published for new ETFs on the TSE website

[TSE] Base prices and daily price limits for newly listed ETFs

Diamond, gem ETF now being traded on NYSE Arca

Correction In Day Of Index Rebalance: Semi-Annual Review Of OMX Copenhagen 20 Indexes

Semi-Annual Review Of The OMX Stockholm 30 Index

Assets In ETFs And ETPs Listed Globally Reach A New Record High With US$1.9 Trillion At The End Of November 2012

Dow Jones Islamic Market Titans 100 Index Finished Up 0.37% in November

ETFGI Global ETF And ETP Industry Insights, November 2012


SunGard Enhances Its Stream Derivatives Suite to Support Launch of NASDAQ OMX NLX
SunGard has enhanced its Stream Derivatives suite of solutions to support trading on Nasdaq OMX NLX (“NLX”), the new London interest rate derivatives trading venue. NLX will offer a range of both short- and long-term interest rate (STIRs and LTIRs) euro- and sterling-based listed derivatives products beginning in Q1 2013, subject to Financial Services Authority approval.

NYSE Technologies Expands SFTI Network in Asia Through Additional Access in Hong Kong
NYSE Technologies, the commercial technology division of NYSE Euronext, today announced the continuing expansion of its Secure Financial Transaction Infrastructure (SFTI) in Asia with the introduction of two access centres located in Hong Kong.

LMAX Exchange Selects Equinix To further Enhance Execution Capabilities – Award-winning LMAX Exchange Moves To Equinix’s London Data Center Campus


Wells Fargo Banker Sued by SEC in Probe of Insider Trading
Joshua Gallu & Dakin Campbell – Bloomberg
A Wells Fargo & Co. (WFC) investment banker was at the center of a 10-person insider-trading ring that took in $11 million in profits from tips on pending mergers, U.S. regulators said.

SEC Charges 10 in Insider Trading Ring Around Investment Banker’s Illegal Tips on Impending Mergers
The Securities and Exchange Commission today charged an investment banker who was primarily based in Charlotte, N.C., and nine others involved in an insider trading ring that garnered more than $11 million in illicit profits trading on confidential information about impending mergers.

CFTC Charges Hunter Wise Commodities, Lloyds Commodities, C.D. Hopkins Financial, United States Capital Trust, Newbridge Alliance, Blackstone Metals Group, and their Principals in Multi-Million Dollar Fraudulent Precious Metals Scheme
The U.S. Commodity Futures Trading Commission (CFTC) today announced that on December 5, 2012, it filed a civil injunctive enforcement action in the U.S. District Court for the Southern District of Florida against Hunter Wise Commodities, LLC; Hunter Wise Services, LLC; Hunter Wise Credit, LLC; Hunter Wise Trading, LLC; Lloyds Commodities, LLC; Lloyds Commodities Credit Company, LLC; Lloyds Services, LLC; C.D. Hopkins Financial, LLC; Hard Asset Lending Group, LLC; Blackstone Metals Group, LLC; Newbridge Alliance, Inc.; United States Capital Trust, LLC; Harold Edward Martin, Jr.; Fred Jager; James Burbage; Frank Gaudino; Baris Keser; Chadewick Hopkins; John King; and David A. Moore.

CFTC sues broker for trying to manipulate wheat futures prices
U.S. regulators on Tuesday sued a futures broker and two trading companies for attempting to manipulate wheat futures prices by electronically entering and immediately cancelling orders they did not intend to fill.

Federal Court In Idaho Orders CFTC Defendant Trigon Group, Inc. To Return More Than $20.6 Million Of Ill-Gotten Gains To Victims Of Its Fraud
The U.S. Commodity Futures Trading Commission (CFTC) today announced that Judge Edward J. Lodge of the U.S. District Court for the District of Idaho entered a consent order of permanent injunction that requires defendant

Rolls-Royce reveals SFO corruption probe
Mark Wembridge in London –
Rolls-Royce has agreed to pass on the results of an internal review to the Serious Fraud Office following allegations of bribery and corruption at the engine maker’s Chinese and Indonesian intermediaries.

Environmental & Energy

China pledges $56 billion to cut air pollution
China will spend 350 billion yuan ($56 billion) by 2015 to curb air pollution in major cities, the environmental watchdog said on Wednesday.

Russia to set 2020 carbon target that will let emissions rise
Russia plans to set itself a binding 2020 goal for carbon emissions, a top climate change official said on Wednesday – the only problem is it would allow them to rise.

Asian Cities’ Air Quality Getting Worse, Experts Warn
The New York Times
Air pollution has worsened markedly in Asian cities in recent years and presents a growing threat to human health, according to experts at a conference that began on Wednesday.


Boom year for Asian bonds
Farah Khalique – Financial News
Bonds issued out of Asia Pacific have shattered all records and boosted banker fees to record levels, but bankers warn that 2013 is unlikely to be as bountiful.

HKEx Monthly Market Highlights – November 2012

HKEx On-Floor & Off-Floor Trading Statistics

HKEx Announcement: Placing And Issue Of Shares Under General Mandate
The Board is pleased to announce that approval has been obtained from the SFC for the listing of, and permission to deal in, the Placing Shares on the Stock Exchange, and the completion of the Placing is expected to take place on 7 December 2012 in accordance with the terms and conditions of the Placing Agreement.

HKFE Announces Revised Margins For Ping An Insurance Futures

Frontier Markets

Barclays Africa seals £1.3bn Absa deal
Alistair Gray in London and Andrew England in Johannesburg –
Barclays and Absa Group, one of South Africa’s top four banks, on Thursday said they planned to combine their Africa operations in a R18.3bn (£1.3bn) deal that would create the continent’s largest retail bank by branch networks and customers.

Brazil Steps Up Investments in Overlooked Tech Start-Ups
For the last few years, Brazilian start-ups have begun to successfully draw blue-chip Silicon Valley venture firms. But in the process, promising technology segments have been ignored.

Kazakhstan Wealth Fund Sued in U.S. by BTA Bank Investors
Investors in BTA Bank , Kazakhstan’s third-largest bank by assets, accused its controlling shareholder, the Central Asian nation’s sovereign wealth fund Samruk-Kazyna, of defrauding them.

JSE Releases Third Study On Black Ownership On The Exchange
Black South Africans hold at least 21% of the Top 100 Companies listed on the Johannesburg Stock Exchange, with 21% of the available shares listed on the JSE still to be assessed, says Trevor Chandler of consultancy Chandler & Associates, who headed the research team appointed by the JSE.

Bursa Malaysia Derivative ‘s Palm Oil Futures (FCPO) Open Interest Surpasses 150,000 Contracts For The First Time
Bursa Malaysia Derivatives’ (BMD) Crude Palm Oil Futures (FCPO) Open Interest (OI) hit a new high with 151,508 total contracts remained open at the close of market yesterday (Wednesday).

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