John Lothian Newsletter: CFTC Requires Registration by Mutual Funds With Commodities; NYSE Euronext Chief Faces Up To Standalone Challenges; Eurozone dismisses Greek budget deal

Feb 10, 2012

The CFTC votes 4-1 to require commodity-including mutual funds to register with the agency. NYSE-E’s Duncan Niederauer faces a DB-less future, and surveys the coming challenges. In the latest episode of, “There Will Be Greece,” the Eurozone turns its back to the Mediterranean country’s latest budget cut package, calling it incomplete. In the top box, JLN Editor-in-Chief Jim Kharouf takes a swing at JLN Boss-of-All John Lothian’s opinion of CME Group’s CBOT Building deal; and John bids adieu to Jeremy Grant of the Financial Times (who is only moving to Singapore, not offworld).

Observations – Statistics – Commentary

Global Trade
By Jim Kharouf

In response to John Lothian’s column “A Bad Trade” on Thursday, which argued that the CME Group should not sell the iconic CBOT building in Chicago:

It is often said that futures trades are a zero-sum game, where for every winner there is a loser on the other side of a trade. Given the size and diversity of the markets, I always found this theoretically correct, but a bit overly simplistic. So too is the idea that because CME Group has reportedly found a buyer for the CBOT building’s north and south towers for $150 million to $180 million, the CME must be the loser in this transaction.

John thought the decision makers on this must have been “numbskulls” to sell such historically valuable property in a historically down market. But it’s time to look beyond Chicago.

Here’s the scoop: CME Group isn’t a real estate company. It smartly leased space in its headquarters on Wacker Drive in Chicago for decades now, giving the company the flexibility it needed to grow, expand and move. Its decision to sell is no different from any other company looking to maximize assets and execute a business strategy. Sears, Roebuck & Co. moved out of the Sears Tower long before it ever became the Willis Tower. Chicago’s Wrigley Company sold the iconic Wrigley building on Michigan Avenue last September, and is moving the last of its employees a few miles away to its headquarters built seven years ago.

As for the idea of staying close to its customers, they still have ownership of the CBOT building’s east tower. Beyond that, how many big customers are actually located in the Board of Trade building any longer? Many of the largest proprietary trading firms are spotted all over the world. And given the focus on speed and technology today, you’d be a numbskull not to position your firm accordingly.

The CMECBOT merger created a global derivatives giant. CME has looked well beyond Chicago’s borders since buying up Nymex, cutting deals in Latin America, opening a European clearing house, expanding its Asian presence and opening a co-location center outside Chicago.

Location matters less and less as these markets have become more global. That won’t stop. Sell the building. There are bigger trades out there to transact.

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Singapore Jeremy Grant Leaves Lasting Legacy with FT Trading Room
By John J. Lothian

My friend Jeremy Grant, founder of the FT’s Trading Room and a reporter’s reporter, is headed to Singapore. It was confirmed to me by Jeremy himself. I had previously reported this news from a tweet from Allan Schoenberg of the CME Group a couple of weeks ago.

He is off to Singapore to become the regional corporate correspondent for the Financial Times. It was an opportunity that he could not pass up, he told me.

Jeremy had spent 10 years earlier in his career (1988 to 1998) in Asia, starting with the FT in Vietnam. He always wanted to go back.

In London, he is leaving a legacy of good work that will continue after his departure. The FT Trading Room, an innovative exchange and markets related portal within the Financial Times, will continue. His replacement has not been named; however, advertising on the micro site has been booked throughout 2012 save for a couple of weeks in the third quarter.

While Jeremy’s portfolio in Singapore will be very broad, covering lots of corporate and business news, he will still cover the exchange space in the area part of the time. That is particularly good news for SGX’s Magnus Böcker. SGX and Singapore in general will benefit from Jeremy’s reporting from the region, burnishing its reputation as a global financial center.

I am pleased to call Jeremy a friend, though I will admit that his Chicago accent impersonation of me grates on my nerves. I guess that means he is getting it just right. He usually does as a reporter as well.

Best of luck to Jeremy on his new assignment.

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CME Group CEO: Don’t expect new round of mega-mergers
Reuters
Don’t expect a new round of mega-mergers to sweep the global exchange industry, the chief executive officer of the biggest U.S. futures exchange operator said on Thursday. While merging exchanges to create “national champions” will likely continue to be successful, “very complex, cross-border deals – probably much less so,” CME Group Inc CEO Craig Donohue said at a Credit Suisse investor conference.
http://jlne.ws/wkr5qA

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S&P Indices Announces Changes to U.S. Indices
Press Release
NEW YORK, Feb. 9, 2012 /PRNewswire via COMTEX/ — S&P Indices will make the following changes to the S&P MidCap 400 and S&P SmallCap 600 indices:

CBOE Holdings, Inc. will replace Temple-Inland, Inc. TIN +0.16% in the S&P MidCap 400 index after the close of trading on a date to be announced.
http://jlne.ws/A4jHYc

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CME Group Developing New Tool to Monitor OI
Press Release
CME Group is developing a new “Options Open Interest Profile” tool which will live on our website. The original version of the tool will focus on interest rate products. But we anticipate that subsequent versions be expanded to include other CME Group products including FX and stock indexes as well. The tool will provide users with the flexibility to focus on specific markets of choice, puts vs. calls, dates, etc.
http://jlne.ws/wbib1J

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Decision close on LCH.Clearnet/LSE talks
By Jeremy Grant – Financial Times
LCH.Clearnet is expected to make an announcement “shortly” on months of talks with the London Stock Exchange that could see the UK bourse taking a controlling stake, the Anglo-French clearing house’s chief executive said on Friday.
http://jlne.ws/A9mkQR

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Ice remains coy on LME bid
Tom Osborn – Financial News
InterContinental Exchange chief executive Jeff Sprecher’s bullish call on the global environment for exchange acquisitions, coupled with his emphasis on London’s importance as a commodities trading centre, will do little to quell speculation that the bourse is strongly considering a bid for the London Metal Exchange.
http://jlne.ws/wBFeaP

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Brazil eyes expansion in OTC trades
By Jeremy Grant in London – Financial Times
Brazil’s main exchange operator, BM&FBovespa, has signalled ambitions to expand into the over-the-counter derivatives business with plans to develop a platform for storing electronic records of OTC trades.
http://jlne.ws/AhomqW

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The Secret (Working) Lives of Traders
CNBC
Many traders are entrepreneurs in other businesses outside of Wall Street and financial services. They’re leading secret lives off the trading floor, creating new ventures in varied fields from mobile apps to real estate.
http://jlne.ws/zIAXVh

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Sungard sponsors OTC derivatives webinars
Sungard is sponsoring two webinars, one in February and one in March, to address the changing regulatory and risk management landscape in the OTC derivatives sector. JLN will provide more information in the coming days; in the meantime, here’s an advance look at (and opportunity to register for) these two events:

Webinar: Managing Risk within the New OTC Derivatives Workflow Model – Feb 21st 10am EST/3pm GMT
In an interactive webinar, a panel of risk and operational managers will explore the components and best practices for an OTC specific risk management. The panel will discuss the challenges, technology used and the ongoing trends all market participants need to be aware of the establish a future-proof risk management program in a time of constant changes and regulatory reform.
For details and to register, visit http://jlne.ws/y1H1Mv

Webinar: OTC Derivatives Clearing in Flux – the Impact on Post-Trade Processing – March 6th 2012 10am EST/3pm GMT
In an interactive webinar, a panel of operations and clearing experts will review the main initiatives that will shape the CCP for OTC landscape in the next 12 months and explain how market participants are transforming post-trade processes in anticipation of these changes but also to support current circumstances for central clearing. Specifically, the panel will review all changes to post-trade processes required to support central clearing, including collateral management from collateral allocation to cross-netting and post-MF Global collateral related-regulatory requirements, as well as regulatory reporting and changes to the settlement and accounting of clearable trades.
For details and to register, visit http://jlne.ws/y1H1Mv

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JLN Interest Rates Newsletter

Federal Reserve Board Announces Agreement In Principle With Banks Regarding Issuance Of Monetary Sanctions
The Federal Reserve Board on Thursday announced that it has reached an agreement in principle with five banking organizations regarding the issuance of monetary sanctions against the organizations totaling $766.5 million. The monetary sanctions would be assessed for unsafe and unsound processes and practices in residential mortgage loans servicing and foreclosure processing.

Moody’s Investors Service: European CLO Top 50 Holdings Have Stronger Than Expected Credit, But Pose Concentration Risk
According to a report by Moody’s Investors Service, a look at the broad characteristics of the 50 most referenced issuers in the European CLO leveraged loan universe reveals that they are likely to drive the performance of the universe as a whole. European CLO leveraged loan portfolios exhibit a high degree of overlap among issuers, with the 50 most referenced issuers accounting for about 4% of the unique names in the European CLO universe, but almost half the universe exposure amount.

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MarketsWiki Page of the Day
London Interbank Offered Rate (LIBOR)
http://jlne.ws/yi351r

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MarketsWiki Recent Updates

People

Maureen Smith; William Speth; Karen Christiansen; Patricia Sizemore; Nicole V. Rohr; Paul Ciciora; Bradley Samuels; Eileen Smith; Michael Todd; Todd Furney; Philip M. Slocum; David Setters; David Peniket

Companies, Organizations and Groups

NASDAQ OMX Group, Inc.; CBOE Holdings Inc.; Ice Futures Europe

Miscellaneous

LIBOR

Statistics

19,251,819 pages viewed, 6,689 articles, 136,714 edits
MarketsWiki Statistics
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Lead Stories

CFTC Requires Registration by Mutual Funds With Commodities
By Silla Brush – Bloomberg
The U.S. Commodity Futures Trading Commission adopted rules requiring registration by mutual funds when they have investments in commodities. The five-member commission voted 4-1 to approve the rule in a private voting process, the agency said today.
http://jlne.ws/wEIIfY

CFTC Issues Final Rule Amending Registration and Compliance Obligations for Commodity Pool Operators and Commodity Trading Advisors
Press Release
Washington, DC – The Commodity Futures Trading Commission (CFTC) today issued a final rule regarding changes to Part 4 of the Commission’s regulations involving registration and compliance obligations for commodity pool operators (CPO) and commodity trading advisors (CTA). The rule increases transparency to the CFTC of CPOs and CTAs acting in the futures and swaps markets and enhances protections for their customers.
http://jlne.ws/zFX3fs

NYSE Euronext Chief Faces Up To Standalone Challenges
By Jacob Bunge Of DOW JONES NEWSWIRES
Duncan Niederauer will on Friday have his first chance to lay out NYSE Euronext’s (NYX) standalone strategy following the collapse of its blockbuster merger with Deutsche Boerse AG (DB1.XE, DBOEF), though for once looking back might be more appetizing than the challenges that lay ahead.
http://jlne.ws/yKMjX6

Eurozone dismisses Greek budget deal
By Joshua Chaffin and Alex Barker in Brussels, Ralph Atkins in Frankfurt and Kerin Hope in Athens – Financial Times
Eurozone finance ministers dismissed as incomplete a reputed E3.3bn package of Greek budget cuts presented to them in the hope of securing a E130bn bail-out and sent the country’s finance minister back to Athens with a fresh set of demands and an urgent deadline.
http://jlne.ws/wD5PZn

KPMG poised to release MF Global UK cash
Tom Osborn – Financial News
The auditor of the UK subsidiary of MF Global is set to release the first batch of recovered funds to the firm’s UK clients next week, more than three months after the collapse of the futures dealer. A spokeswoman for KPMG, which was appointed as the auditor of the MF Global UK Ltd on October 31, has confirmed the accountancy firm will finally release some of the cash it has recovered in a matter of days.
http://jlne.ws/z2ykBz

CME to Extend Corporate Debt Collateral to Rate Swaps Next Month
By Matthew Leising – Bloomberg
Feb. 9 (Bloomberg) — CME Group Inc., owner of the world’s largest futures market, will extend the use of corporate debt it accepts as collateral to interest-rate swaps beginning March 12.
http://jlne.ws/yNPYlw

EU Reached Accord on Clearing Law for Over-the-Counter Derivatives
Bloomberg
European Union officials and lawmakers brokered a deal on rules to force trading of some over-the-counter derivatives through clearinghouses to safeguard financial markets.
http://jlne.ws/yV5DmZ

EU agrees deal on derivatives overhaul
By Alex Barker in Brussels and Jeremy Grant in London – Financial Times
The European Union has reached a long-awaited deal to overhaul derivatives markets and introduce more safeguards, completing a key part of the financial reforms put in motion after the 2008 banking crisis.
http://jlne.ws/zimZUt

Probe reveals scale of Libor abuse
By Megan Murphy, Brooke Masters and Caroline Binham – Financial Times
When the news first broke in March 2011 that big US and European banks were being investigated over whether they manipulated a crucial global lending rate, regulators appeared to be focusing on one of the most persistent rumours of the financial crisis.
http://jlne.ws/zJw3TE

Bank lending probe lights up dark financial corners
By Gillian Tett – Financial Times
Being a financial journalist often feels akin to chasing bars of soap in the bath. On occasion, we hear fascinating rumours, and peer into dark corners of finance, aware that something odd is going on. Yet, all too often the “story” quarry slips away for lack of evidence or of quotable sources – or because powerful financial public relations officials are waving libel laws in our face.
http://jlne.ws/xy9ctV

Germans concerned over Draghi liquidity offer
By Ralph Atkins in Frankfurt and Mary Watkins in London – Financial Times
Mario Draghi has run into Bundesbank resistance over easing access to European Central Bank offers of three-year liquidity for eurozone banks, highlighting German unease over the measures the ECB president has taken to turn the region’s fortunes.
http://jlne.ws/xHRkO7

Those haircut-heavy credit claims
Posted by Joseph Cotterill – Financial Times
Lend to an Italian small business for five years, take the loan to the Bank of Italy for ECB three-year funding… get 30 per cent of the asset’s value back in cash. Is that a recipe for stopping a credit crunch?
http://jlne.ws/A5OKNH

Ghost of MF Haunts CME
BY JACOB BUNGE – Dow Jones
More than three months after the collapse of MF Global Holdings Ltd., fallout continues to beset the collapsed futures firm’s front-line regulator, CME Group Inc. The Chicago-based futures exchange on Wednesday saw its credit rating cut by Standard & Poor’s and could face further downgrades because of reputational damage linked to the Oct. 31 collapse of MF Global.
http://jlne.ws/y3ZdFb

Environmental Trading News

Carbon Solutions Ltd. foresees double Carbon Trading in North America
Press release
With the inauguration of carbon markets in California and Quebec, Carbon Solutions Ltd. foresees that carbon trading in North America will double this year. Also, the total value of the Western Climate Initiative (WCI) is set to exceed the eastern Regional Greenhouse Gas Initiative (RGGI). The volume of permits and credits traded could jump to 179 million tons at a value of $782 million.
http://jlne.ws/whjPgV

NM regulators repeal carbon cap and trade rules
Yahoo! Finance
New Mexico’s participation in a regional cap and trade program aimed at curbing greenhouse gas emissions became more unlikely Monday with a unanimous vote by state regulators.
http://jlne.ws/y3uIGH

Ex-Telstra director to run carbon tax
BigPond News
Former Telstra director Chloe Munro has been appointed by the federal government to head the independent authority which will run Labor’s controversial carbon tax and subsequent emissions trading scheme (ETS).
http://jlne.ws/yuSrlj

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

Exchange & ECN News

NYSE Euronext Announces Fourth Quarter and Full-Year 2011 Financial Results
Press Release
NEW YORK – February 10, 2012 – NYSE Euronext (NYX) today reported net income of $110 million, or $0.43 per diluted share, for the fourth quarter of 2011, compared to net income of $135 million, or $0.51 per diluted share, for the fourth quarter of 2010.
http://jlne.ws/ygEC6u

CME to accept corporate bonds as collateral
By Telis Demos in New York
Corporate bonds will be accepted as collateral for swap trades by the CME Group’s clearing house from next month, the result of a shortage of high-quality assets amid a broadening regulatory push for central clearing of derivatives.
http://jlne.ws/xy0dV6

CBOE Sees Gradual Build In Electronic S&P Options Market
By Jacob Bunge and Mia Lamar Of DOW JONES NEWSWIRES
CHICAGO (Dow Jones)–The top executive of CBOE Holdings Inc. (CBOE) Thursday outlined a slow build expected for a new slate of options contracts aimed at electronic traders, which is seen among the biggest growth opportunities for the Chicago Board Options Exchange parent. CBOE this year will focus more on promoting to hedge fund clients CBOE’s so-called SPXpm options, all-electronic contracts linked to the S&P 500 stock index, where business has lagged analysts’ expectations since the market launched last fall.

BATS Plans Free Listing Offer To Boost Share
By Jacob Bunge Of DOW JONES NEWSWIRES
BATS Global Markets plans to waive some fees for listing stocks and other securities on its new U.S. exchange in an effort to lure issuers.
http://jlne.ws/xVWMbp

BATS Exchange Announces Innovative Primary Listings Pricing, Including Free Listings – No Annual Listing Fee For Companies With ADV Exceeding 2M Shares Per Day; Competitive Liquidity Provider Program Launches Today
Press Release
BATS Global Markets, a global operator of stock and options markets, today unveiled a unique flat pricing model for its primary listings business, including free listings for companies whose stock or exchange traded product (ETP) trades more than 2 million shares per day.
http://jlne.ws/yLJlPM

U.S. Drops Deutsche Boerse-NYSE Antitrust Lawsuit After Merger Abandoned
Bloomberg
The U.S. Justice Department said it dismissed an antitrust lawsuit and proposed settlement agreement with Deutsche Boerse AG (DB1) and NYSE Euronext because the two exchange owners have given up on their proposed merger.
http://jlne.ws/yEe31p

CME lowers margin requirements for oil, metals
By Matt Day – MarketWatch
NEW YORK -(MarketWatch)- CME Group Inc. CME -0.27% will cut the collateral that traders must put up to trade its benchmark crude-oil, gold and other futures, the company said in an email after trading closed Thursday.
http://jlne.ws/wxmJoJ

BM&FBOVESPA Announces January 2012 Market Performance
Second-Largest Number Of Total Trades In BOVESPA Segment’s History – Agribusiness Derivatives Registered With BM&FBOVESPA Total BRL 9.85 Billion, Of Which R$ 8.40 Billion In LCAs
Press Release
http://jlne.ws/zaCbeu

Bucharest Stock Exchange Ends 2011 With A Net Profit Of Approx. RON 17 Million
Press Release
http://jlne.ws/yIhOx1

CME Group Clearing Advisory
Daily CFD Contract Amendments
http://jlne.ws/AsQk0A

CME Clearing – Performance Bonds / Margins
Performance Bond Requirements: Crude Oil, Coal, Environmental, Metals, Natural Gas, and Refined Products Outrights – Effective Monday, February 13, 2012
http://jlne.ws/yODDsM

Program Trading Averaged 32.2 Percent of NYSE Volume during Jan. 30-Feb. 3
http://jlne.ws/yIwipw

NYSE Euronext to Host Investor Day on Monday, April 2, 2012
http://jlne.ws/AxiZDC

NYSE Amex Issues Short Interest Report
http://jlne.ws/AlckK7

NYSE Group Inc. Issues Short Interest Report
http://jlne.ws/xO0DJR

NASDAQ Announces End-of-Month Open Short Interest Positions in NASDAQ Stocks as of Settlement Date January 31, 2012
http://jlne.ws/zUAI1B

MICEX-RTS Indices Annual Review
Press Release
http://jlne.ws/AkdmBl

CHX INFORMATION MEMORANDA 2012-02: Orders Eligible for Entry in the CHX Matching System (Benchmark)
http://jlne.ws/weGLQ6

Borsa Italiana Monthly Update January 2012
Press Release
http://jlne.ws/xaGG87

Banks, Brokers & Dark Pools

RBS Loses 300 Staff After Failing to Find Purchaser for Cash Equities Unit
Bloomberg
Royal Bank of Scotland Group Plc, Britain’s biggest government-owned lender, cut as many as 300 staff in its equity capital markets and cash equities units after failing to find a buyer for the businesses.
http://jlne.ws/yYWF0r

BNP Gets as Little Love as SocGen as Elections Spur Bashing
BusinessWeek
BNP Paribas SA, Societe Generale SA and Credit Agricole SA, France’s biggest banks, are getting no love from the nation’s politicians as elections loom.
http://jlne.ws/zBUS6l

Three Cheers and Three Jeers for $25 Billion Foreclosure Settlement
Time Magazine
A key step was taken yesterday in moving the country beyond the housing crisis, a crisis that triggered the worst recession in decades and whose lingering effects continue to hinder the nation’s nascent recovery. The deal, which brought together 49 state attorneys general and the Justice Department, was a large-scale compromise between states, the federal […]
http://jlne.ws/zHQgZa

Citigroup Takes $50 Million Loss in Libor Probe
CNBC
Citigroup was forced to write off $50 million after two traders accused of attempting to influence global lending rates left the bank, according to people familiar with a worldwide investigation that is gathering pace.
http://jlne.ws/y0vcls

Barclays bank profit down 15 pct in 2011
Associated Press via Yahoo! News
Barclays PLC says net profit fell by 15 percent last year as earnings fell sharply in its investment banking division.
http://jlne.ws/wz5emg

Barclays Capital Cuts Bonus Pool 32% to 1.54 Billion Pounds
BusinessWeek
Barclays Capital, the securities unit of Barclays Plc, reduced its 2011 bonus pool by 32 percent to 1.54 billion pounds ($2.43 billion).
http://jlne.ws/wtJprQ

Regulatory News

The SEC News Digest
The SEC News Digest provides daily information on recent Commission actions, including enforcement proceedings, rule filings, policy statements, and upcoming Commission meetings.
http://www.sec.gov/news/digest/2012/dig021012.htm

Commodity Futures Trading Commission Votes to Establish a New Subcommittee of the Technology Advisory Committee (TAC) to focus on High Frequency Trading
Press Release
Washington, DC – Commissioner Scott D. O’Malia, the chairman of the Technology Advisory Committee (TAC), announces that the Commission has voted to establish a Subcommittee on Automated and High Frequency Trading tasked with developing recommendations regarding the definition of high frequency trading (“HFT”) in the context of the larger universe of automated trading.
http://jlne.ws/xQMAPY

CFTC Commissioner Jill E. Sommers: Dissenting Statement, Commodity Pool Operators And Commodity Trading Advisors: Amendments To Compliance Obligations
Press Release
http://jlne.ws/zHCkCN

CFTC Chairman Gary Gensler: Statements Of Support, Amendments To Compliance Obligations And Harmonization Proposal
Press Release
http://jlne.ws/wBYB4I

Statement Of Concurrence, Harmonization Of Compliance Obligations For Registered Investment Companies Required To Register As Commodity Pool Operators, CFTC Commissioner Jill E. Sommers
Press Release
http://jlne.ws/x2q238

Slide Presentation (PDF): SEC Staff Review Of Common Financial Reporting Issues Facing Smaller Issuers, PCAOB Forums On Auditing In The Small Business Environment
Press Release
http://jlne.ws/yZPEbz

SEC Relents on Live Data in Tracking System
BusinessWeek
Chairman Mary Schapiro says the U.S. Securities and Exchange Commission can achieve the benefits of a consolidated audit trail without requiring real-time trading data
http://jlne.ws/wNwvEK

CFTC Obtains Permanent Injunction against British Virgin Island Firm InterForex, Inc. for Acting as an Unregistered Retail Forex Dealer; Firm Ordered to Modify Website
Press Release
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) obtained a federal court consent order that permanently bars defendant InterForex, Inc., of Tortola, British Virgin Islands, from soliciting or accepting orders to trade foreign currency (forex) from U.S. customers who are not Eligible Contract Participants (ECPs). The order also permanently bars InterForex from offering to be the counterparty to U.S. customers’ forex transactions, without registering with the CFTC.
http://jlne.ws/xKY8Vw

Forex Dealer Peregrine Fined $700,000 By National Futures Association
Dow Jones
NEW YORK (Dow Jones)–The National Futures Association fined Chicago futures-and-foreign-exchange dealer Peregrine Financial Group Inc. $700,000 over claims that it failed to oversee its brokers and implement anti-money-laundering safeguards.
http://jlne.ws/zOayZ3

NFA Featured Information
Updated Forex Transactions: A Regulatory Guide
http://jlne.ws/fnSDoC

NFA Enforcement and Registration Actions
Kairos Asset Management LLC – http://jlne.ws/yA4d4L
Rhino Fund Management LC – http://jlne.ws/x6ULG3
Range Wise Inc. – http://jlne.ws/yn407T
Peregrine Financial Group, Inc., Russell R. Wasendorf, Jr., Susan M. O’Meara, and Nolan J. Schiff – http://jlne.ws/zgHUHL
Currensee Inc. – http://jlne.ws/Ae0Buu
Greg Firman d/b/a E-Trade FX – http://jlne.ws/ypFS6n
Jones Commodities Inc. – http://jlne.ws/xDfRFS
Golden Forex Inc. – http://jlne.ws/zjivRS

SEC Charges Former Pharmaceutical Company Employee with Insider Trading on Biotech Deals
Press Release
Washington, D.C., Feb. 9, 2012 — The Securities and Exchange Commission today charged that a former employee of Takeda Pharmaceuticals International, Inc. traded on inside information about the Japanese firm’s business alliances and corporate acquisitions.
http://jlne.ws/zZ7qim

S.E.C. Reaches Settlement in Bear Stearns Fraud Case
By PETER LATTMAN – NY Times
The Securities and Exchange Commission has reached a settlement with two former Bear Stearns hedge fund managers that will avert a second trial over accusations that they had misled investors as the mortgage market was crumbling.
http://jlne.ws/wMCuQl

Canadian securities regulators modernize rules concerning mutual funds
Toronto – The Canadian Securities Administrators (CSA) announced today the completion of the first phase of its “Modernization Project”, which seeks to update the product regulation of publicly offered investment funds.
http://jlne.ws/zgeNFG

[ASIC] Online searching unavailable morning of Monday 13 February
http://jlne.ws/9QReML

[ASIC] Astarra Strategic Fund auditor prevented from auditing companies for three years
http://jlne.ws/yJkBWF

[ASIC] Regulatory cooperation arrangement signed
http://jlne.ws/yRhZLU

[ASIC] Corporate insolvencies continue to rise over 2011
http://jlne.ws/AbTXkq

Investments – Indexes – Managed Futures – Managed Funds

Ill-timed fight erupts over money-market funds
Associated Press via Yahoo! News
A fight is breaking out between the money-market mutual fund industry and federal regulators. Whatever the outcome, investors will question whether they can continue to rely on money funds as a safe place to keep cash readily accessible.
http://jlne.ws/x9Mexv

LCH.Clearnet Group Limited Results 2011
http://jlne.ws/yMy4os

Och-Ziff Net Income Drops 94% as Performance Fees Decline
Bloomberg
Och-Ziff Capital Management Group LLC (OZM) , the hedge-fund run by Daniel Och, reported a 94 percent drop in fourth-quarter profit as performance fees declined because most of the firm’s funds posted negative returns in 2011.
http://jlne.ws/xgLdni

Och-Ziff Capital Management Group LLC Reports 2011 Fourth Quarter and Full Year Results
PR Newswire via Yahoo! Finance
http://jlne.ws/yZ8yrq

Andrew Hall’s Astenbeck Hedge Fund Posted 3.8% Loss In 2011 – Reuters
Dow Jones
Andrew Hall’s roughly $5 billion Astenbeck energy and commodities hedge fund had a 3.8% loss last year, Reuters reported Thursday, citing an investor in the fund.
http://jlne.ws/AtueBs

Boerse Stuttgart Introduces Risk Measure For Bonds Of Medium-Sized Companies
Press Release
New Risk Classification Enables Weekly Assessment Of Bonds Issued By Medium-Sized Enterprises In The Bondm Segment/ Exclusive Collaboration With EDG AG
http://jlne.ws/y81e4z

Standard & Poor’s Announces Changes In The S&P/TSX Canadian Indices
Press Release
http://jlne.ws/zTLTu2

Technology News

SunGard Announces Fourth Quarter and Full-Year 2011 Results
Press Release
SunGard, one of the world’s leading software and technology services companies, today reported results for the fourth quarter and full-year ended December 31, 2011. For the fourth quarter, revenue was $1.17 billion, down 3% year over year. Excluding one of our global trading businesses, a broker/dealer, revenue decreased 2%. At constant currency, the year over year revenue trends were the same.
http://jlne.ws/ySpLN1

Media News

Chicago Tribune eyes price tag for online news
By Lynne Marek – Crain’s
(Crain’s) — The Chicago Tribune will begin charging online readers for access to content and is considering a “creative way” to do that, said Gerould Kern, the paper’s editor.
http://jlne.ws/xAyUSS

NY Tech Meetup and NASDAQ OMX Announce Media Partnership
Press Release
NEW YORK, Feb. 9, 2012 (GLOBE NEWSWIRE) — NY Tech Meetup (NYTM) and NASDAQ OMX (Nasdaq:NDAQ) today announced a partnership focused on engaging, educating and promoting New York City’s technology community in unique and relevant ways.
http://jlne.ws/y9EBC8

Thomson Reuters Reports Full-Year And Fourth-Quarter 2011 Results
Press Release
http://jlne.ws/wFPq8o

Thomson Reuters reveals $3bn goodwill charge
By David Gelles in New York – Financial Times
Thomson Reuters revealed a $3bn charge related to the declining value of its troubled market data business, swinging the company to a steep operating loss for the fourth quarter.
http://jlne.ws/xwXHEm

Reports

Briefing.com Economic Calendar
http://www.briefing.com/Investor/Public/MarketAnalysis/Calendars/EconomicCalendar.htm

USDA Today
http://www.nass.usda.gov/Publications/index.asp

CBOE Events Calendar
http://www.cboe.com/AboutCBOE/EventCalendar.aspx

Economic Release Calendar
The Economic Release Calendar (PDF) is a schedule of government, academic and industry economic releases, provided as a service to CME customers.
http://www.cmegroup.com/tools-information/calendars/

Asia-Pacific News

Mock Trading of Bond Futures to Begin Monday
By Chen Huijing – Economic Observer Online
According to the notice issued by the China Financial Futures Exchange on Feb 9, simulated trading of government bond futures will start on Feb 13.
http://jlne.ws/x2TSAv

Thai Bourse Sees Gold ETFs As Opportunity For Investment
Press Release
http://jlne.ws/z9BsAU

FSA publishes the status of Loans held by all banks as of end- September 2011, based on the Financial Reconstruction Act
http://jlne.ws/ykxF1T

Frontier Markets

MCX Weekly Market Report February 03, 2012 – February 09, 2012
Press Release
http://jlne.ws/wGmP22

BLOOMBERG MARKETS: The 14 Most Exciting Frontier Markets In The World
Business Insider
After tackling emerging markets , Bloomberg Markets Magazine has ranked its favorite frontier investment spots for 2012.
http://jlne.ws/wLFxqu

Miscellaneous News

The Role of Women on Wall Street Fuels Another Debate Over Job Titles
Forbes
Why pay women more when you can simply give them a more important sounding job title?
http://jlne.ws/xRGHjN

To Envision Dodd-Frank’s Future, Look to Its Predecessor
By JESSE EISINGER, ProPublica
As fears mount that Dodd-Frank, the financial overhaul law, is about to be emasculated, it’s worth reflecting on the 10-year anniversary of a major regulatory success. I’m speaking of the mocked, patronized and vilified Sarbanes-Oxley, the law that cleaned up American corporate accounting.
http://jlne.ws/zBMTQT

SIFMA Executive Vice President Randy Snook Remarks As Prepared For SIFMA Large Trader Reporting Symposium
Press Release
http://jlne.ws/wucccg

John Lothian Newsletter

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Past JLN Newsletters

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