John Lothian Newsletter: SEC widens probe of exchange-traded funds; CME raises stake in Dubai Mercantile Exchange; UBS Launches New E-Trading Platform For Credit-Default Swaps

Feb 21, 2012

The SEC turns its attention to ETF trading practices, seeking a connection between hedge fund or high frequency trading and ETFs that do not settle properly.  CME Group buys a fresh chunk of the Dubai Mercantile Exchange.  UBS announces the launch of a credit default swap trading platform.  Greece and the Eurozone agree on bailout terms to at least temporarily hold off a Greek default.  Italy’s bourse announces that they will restrict high-frequency trading, while Sweden says they haven’t seen any significant damage from the practice.  The NFA and others are offering and considering proposals discussing MF Global and ways to make customers whole after its collapse.

Observations – Statistics – Commentary

NFA considering proposal to restore money lost by MF Global
By Lynne Marek – Crain’s
(Crain’s) — Two new reform-minded National Futures Association board members are pressing the group to help restore money lost by MF Global Inc.‘s futures-trading customers and require futures commission merchants to disclose daily where customer funds are held.
http://jlne.ws/yJk1bl

NFA has new sheriffs in town  
“No promise or assurance for future safety will have much meaning or credibility unless the 38,000 [MF Global] customers get 100% of their money back.”
That quote is part of a 14-page memo delivered to the National Futures Association (NFA) Board of Directors by its two newest members, Doug Bry and Ernest Jaffarian. The memo highlights many of the sordid details of the MF Global debacle and includes recommendations but it boils down to one thing, making customers whole.
http://jlne.ws/z24r81

MEMORANDUM
For: National Futures Association Board of Directors
From: Douglas Bry & Ernest Jaffarian CTA/CPO Representatives
Date: 13 February 2012
Re: MF Global Issues and Proposals
The MF Global bankruptcy and its aftermath have created the potential for irreparable harm to the futures industry, a key component of the global financial system.
http://jlne.ws/zEavG8

**** This is hard to do on a number of levels.  But it is the right thing to do on even more.  And the toughest trades are the right ones to make.  I applaud Douglas Bry and Ernest Jaffarian for taking the ball and running with it.

++++

Commodity Customer Protections and Regulations History and Potential Solutions for the Future
PFGBest white paper
PFGBEST presents a research white paper on solutions to be considered by the Commodity Customer Coalition striving to ensure that any government policy responses are appropriate and cost effective to protect customers and maintain the integrity of futures markets.
http://jlne.ws/yvAXIN

++++

Royal Exchange put up for sale by Anglo Irish
By Graham Ruddick – Telegraph
The Royal Exchange in the City was founded in 1565 by merchant Sir Thomas Gresham, who wanted to create a centre of commerce modelled on the stock exchange in Antwerp. The Irish Bank Resolution Corporation, formed last year by the merger of troubled Anglo and Irish Nationwide, has agreed a deal to sell the business to investment manager Key Capital, which will offload the properties on its behalf.
http://jlne.ws/wvCfRn

*** I can’t wait for the CBOT Building to become the new Royal Exchange and get a Hermes and Gucci.

++++

Neal L. Wolkoff, Founder and Chief Executive Officer, Wolkoff Consulting Services, LLC Announces New Financial Services Consulting Firm
Press Release
Neal L. Wolkoff, who until recently was the Chief Executive Officer of ELX Futures, L.P., and was previously Chairman and CEO of the American Stock Exchange, and Chief Operating Officer and Executive Vice President of the NYMEX, is announcing the start of his new business, Wolkoff Consulting Services, LLC. Mr. Wolkoff who is also an attorney admitted in New York, will provide independent expertise to corporate and individual clients needing to understand and work within the new regulatory environments of the Dodd Frank era.
http://www.wolkoffconsulting.com/

**** There is life after ELX.

++++

Life after Wall Street
By William D. Cohan – Financial Times
Some 40,000 high-level bankers lost their jobs in the financial crisis. But questions on what the former Masters of the Universe did next are met with impenetrable silence
http://jlne.ws/zC5jge

**** Be prepared to have some time to read this article.  It is good, but long.

++++

Interactive Data Reports Fourth-Quarter and Full-Year 2011 Results
Press Release
February 17, 2012 –Interactive Data Corporation today reported its financial results for the fourth quarter and full year ended December 31, 2011. Interactive Data’s fourth-quarter 2011 revenue increased 6.8% to a record $222.1 million from $207.8 million in the fourth quarter of 2010.
http://jlne.ws/wC9fiC

++++

Regulators weigh thousands of pleas on Volcker rule
By Tracy Alloway in New York and Shahien Nasiripour in Washington – Financial Times
Paul Volcker, the former Federal Reserve chairman turned financial reformer, once described lying awake in his bed, “tossing and turning … thinking whatever we do, the banks will try to game us.” He must have been sleeping badly this week.
http://jlne.ws/w6IVOD

**** How much does a plea weigh?

++++

You know the deficit hawks. Now meet the deficit owls.
Washington Post
About 11 years ago, James K. “Jamie” Galbraith recalls, hundreds of his fellow economists laughed at him. To his face. In the White House. It was April 2000, and Galbraith had been invited by President Bill Clinton to speak on a panel about the budget surplus. Galbraith was a logical choice. A public policy professor at the University of Texas and former head economist for the Joint Economic …
http://jlne.ws/y11wxK

++++

Are commodity merchants “swap dealers” by any other name?
Reuters via Yahoo! News
Big energy companies like Royal Dutch Shell and commodity merchants like Cargill have a simple argument in pushing back against looming new swap market rules: We’re not a bank, so don’t regulate us like one.
http://jlne.ws/ydMK0D

++++

Futures Industry Association Goes Live With Association Anywhere, SaaS Association Management Software (AMS) From ACGI …
Marketwire via Yahoo! Finance
ACGI Software, the trusted leader in association management software (AMS), today announced the Futures Industry Association (FIA), a global trade organization whose members includes the world’s largest derivatives clearing firms as well as exchanges and clearinghouses from more than 20 countries, has gone live with Association Anywhere, the company’s software as a service (SaaS) association management system (AMS).
http://jlne.ws/wMRzXa

**** I am pleased to announce John J. Lothian & Company, Inc. has become an Associate Member of the Futures Industry Association.  In as such, I am no longer allowed to make snarky comments about the FIA or any of its events.  For example, I can’t say “FIA now has SaaS.”  OK, I’m done.

++++

ICAP Patent Brokerage Spring 2012 Catalog Now Available Online
ICAP Patent Brokerage, the global leader in intellectual property brokerage and a division of ICAP plc, the world’s leading interdealer broker, will auction patent lots covering technology across multiple industries at the upcoming Summit on IP Strategy at Terranea Resort near Los Angeles on March 28 & 29.
http://jlne.ws/AyUTTs

++++

Metrixx-Calculated Price: An Evaluation Tool for Professional Traders Webinar
Hosted by CQG
Join Jim Marzano, founder of Metrixx LLC, as he demonstrates the role of Metrixx’s real-time decision support tools and social business platform in defining market value.

Mr. Marzano will highlight:
* Metrixx integration with CQG for quoting, charting, and modeling, with more than 1,000 QFormulas;
* extensive pre-trade analysis and calculations for any globally-traded future, with special emphasis on financial futures; and
* Metrixx Community, a customizable social platform for trading professionals.

Webinar registrants will also receive a free trial subscription to the Metrixx Community.

Register at http://jlne.ws/A2rXHw

++++

MarketsWiki Page of the Day
Rogue order
http://jlne.ws/A4160m

++++

MarketsWiki Recent Updates

People 

George M. BollenbacherTom MallonJohn KingRaymond L. D’ArcyKaren BertoliScott CaudellKevin BohrenJoe Bigane

Companies, Organizations and Groups

Penson FuturesInteractive Data CorporationInteractive Data 7ticksCinnober Financial TechnologyThe Price GroupMF Global Inc

Miscellaneous

Five Minutes With Bluford PutnamRogue orderFive MinutesFive Minutes With Joe Bigane

Statistics

19,679,764 pages viewed, 6,702 articles, 137,170 edits
MarketsWiki Statistics
_______________________________________________________

Lead Stories

SEC widens probe of exchange-traded funds
Reuters via Yahoo! News
U.S. securities regulators have widened their inquiry into the trillion-dollar market for exchange-traded funds, according to a person familiar with the matter. Prompted by a delay in a big trade at a popular ETF, the U.S. Securities and Exchange Commission is taking a closer look at a possible connection between high-frequency traders and hedge funds jumping in and out of ETFs, and …
http://jlne.ws/yGKQfv

CME raises stake in Dubai Mercantile Exchange
Reuters
Futures exchange operator CME Group Inc. and an Omani sovereign fund boosted their stake in the Dubai Mercantile Exchange after a cash infusion on Tuesday, diluting positions held by oil majors and the ruler of Dubai’s investment vehicle.
http://jlne.ws/zbjM5t

UBS Launches New E-Trading Platform For Credit-Default Swaps
By Katy Burne Of DOW JONES NEWSWIRES
Seeing that a pending regulatory overhaul of the $708 trillion private derivatives market will bring down the curtain on the lucrative business of dealing in swaps, UBS is looking for a new way to stay in the game. In a wholesale shift in how credit derivatives have been traded, the Swiss banking giant has launched an electronic market for credit-default swaps, allowing customers to buy or sell the insurance-like instruments directly with other customers on-screen or trade with the bank’s own traders.
http://jlne.ws/wcrAcW

Italy to limit high-frequency orders
By Jeremy Grant and Rachel Sanderson – Financial Times
Italy’s stock exchange plans to charge traders if they send too many orders into its system, in an effort to curb what regulators see as excessive numbers of orders, according to people familiar with the matter.
http://jlne.ws/wGRXVM

Sweden finds HFT effects “limited”
By Philip Stafford in London – Financial Times
The emergence of high-frequency trading has a limited effect on equity markets but increased the potential for market abuse while supervision is “insufficient”, an investigation by Swedish regulators has concluded.
http://jlne.ws/AiM6Vu

Swedish Financial Supervisory Authority – Finansinspektionen: High Frequency Trading Not A Threat To Financial Stability
Press Release
http://jlne.ws/yPbiwh

Euro Zone Ministers Approve $171B Greek Aid Package
International Business Times
Euro zone finance ministers meeting in Brussels early Tuesday approved a $171 billion bailout package for Greece, sparing the nation a default and the continent a dramatic economic downturn.
http://jlne.ws/yuiupD

UBS Turning Whistleblower in Libor Probe Puts Pressure on Rivals
BusinessWeek
UBS AG’s decision to become first- confessor as regulators probe the alleged manipulation of interest rates will ratchet up the risks for other banks that set the benchmark for $360 trillion of securities worldwide.
http://jlne.ws/wJ8Hbq

Trustee Finds No Missing MF Global Customer Cash JP Morgan Account
By PATRICK FITZGERALD
Louis Freeh, the bankruptcy trustee overseeing MF Global Holdings Ltd.’s Chapter 11 case, determined that none of the estimated $1.6 billion in missing customer cash ended up in a company account at J.P. Morgan Chase & Co. that he was reviewing.
http://jlne.ws/xRuqbc

Fed Writes Sweeping Rules From Behind Closed Doors
BY VICTORIA MCGRANE AND JON HILSENRATH – WSJ
The Federal Reserve has operated almost entirely behind closed doors as it rewrites the rule book governing the U.S. financial system, a stark contrast with its push for transparency in its interest-rate policies and emergency-lending programs. While many Americans may not realize it, the Fed has taken on a much larger regulatory role than at any time in history.
http://jlne.ws/wk2HTR

Top Banks in EU Rush for Safety
By DAVID ENRICH – WSJ
LONDON—Top European banks, responding to new regulations and wary of lending, are stashing increasingly large sums of money at central banks around the world in a collective flight to safety.
http://jlne.ws/zS0nKN

Greece Wins Second Bailout as Europe Picks Aid Over Default
By James G. Neuger and Jonathan Stearns – Bloomberg
Debt-stricken Greece won a second bailout after European governments wrung concessions from private investors and tapped into European Central Bank profits to shield the euro area from a precedent-setting default.
http://jlne.ws/yyzgCz

Long odds on a happy ending to the Greek story
Howard Davies – Financial Times
There was a certain inevitability about the Greek bail-out deal struck in the early hours of Tuesday morning in Brussels. The negotiators clearly decided to stick to coffee for themselves, and bread and water for the Greeks, rather than reaching for bottles of Mort Subite [Sudden Death], a Belgian beer worthy of its name. When the brinkmen get so close to the edge, as they did last week, they rarely jump.
http://jlne.ws/xwmUzc

Statement By IMF Managing Director Christine Lagarde On The Meeting Of The Euro Group
Press Release
http://jlne.ws/AlwO6H

Eurogroup Statement – Second Adjustment Programme For Greece
Press Release
http://jlne.ws/vZxSbu

Statement By Greece’s Deputy Prime Minister And Finance Minister Evangelos Venizelos About Today’s Eurogroup Meeting
Press Release
http://jlne.ws/zAPRrY

Statement By Treasury Secretary Tim Geithner On Economic Reforms In Greece
Press Release
http://jlne.ws/zlTHJm

Environmental Trading News

ICE makes UK carbon platform bid
By Philip Stafford – Financial Times
Three of the world’s largest exchanges are among those bidding to win the contract to auction Britain’s emissions trading allowances, after IntercontinentalExchange on Monday confirmed it had submitted a tender.
http://jlne.ws/xAXcUO

ICE Futures Europe Announces Status as Recognised Auction Platform
Press Release
http://jlne.ws/xALl7o

EU Nations Split on Climate Goals Before March Ministers Meeting
Bloomberg
European Union governments remain split on whether to support a pathway to long-term climate goals drafted by the bloc’s regulator that some investors say could bolster carbon prices, according to an EU document.
http://jlne.ws/ysNvRY 

**JK – It’s not really a split (as in 50-50), more like 19-8.

Q+A: Will Moscow talks unleash carbon trade war against EU?
Reuters
A group of nations opposed to an EU law forcing all airlines to pay for their emissions meets in Moscow this week to debate possible retaliation, raising the risk of a trade war.
http://jlne.ws/A8oA1p

**JK – Splashy headline, with rather subdued commentary within. Short answer to the above question – Not likely.

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

Exchange & ECN News

LME Committee To Dissect Bids Ahead Of Board Meeting-Source
By Andrea Hotter and Jacob Bunge Of DOW JONES NEWSWIRES
Leaders of the London Metal Exchange will weigh preliminary bids next week for the commodity market ahead of a Feb. 23 board meeting, a person familiar with the matter said Friday.
http://jlne.ws/wZB8at

London Metal Exchange gets “good number” of first-round bids
Reuters via Yahoo! News
The London Metal Exchange (LME) has received a good number of first-round bids for the 130-year-old bourse, the world’s largest metals market place, an LME spokesman said on Friday. Separate sources familiar with the situation said the list includes NYSE/Euronext.
http://jlne.ws/z2N5bC

Bank of China moves closer to LME membership
International Business Times
Bank of China International is on track to become the first Chinese member of the London Metals Exchange – giving the bourse a boost while it is considering possible takeover bids – following authorization by the UK financial regulator.
http://jlne.ws/z04vlH

What’s next for the big exchanges?
Jaspal Dhillon and Minling Chen – FOW
Exchanges have traditionally relied on the revenue stream from execution spreads, however, with trading volumes declining (due, in part, to stagnant interest rates) and the new raft of regulation such as MiFiD, EMIR, Dodd-Frank entering the market, has the time come for exchanges to re-think their business models?
http://jlne.ws/yPFV3h

Deutsche Börse expands its global network
As part of the planned introduction of the new Eurex trading system in December 2012, Deutsche Börse Group will be gradually expanding its global network in the next few months. The financial centres of Amsterdam, Frankfurt/Main, London, Paris and Zurich will in future be linked via redundant 10 Gbps connections.
http://jlne.ws/wewjDF

CBOE and CFE to Expand ETF-Based Volatility Index Products
CBOE Holdings, Inc. (NASDAQ: CBOE) announced today that Chicago Board Options Exchange (CBOE) and CBOE Futures Exchange (CFE) will each launch a new ETF-based volatility index product in the coming weeks:
http://jlne.ws/zJ7SyQ

Eurex Exchange to expand dividend derivatives segment
The international derivatives market Eurex Exchange is further expanding its successful dividend derivatives segment by launching a total of ten new dividend futures on 2 March 2012. These new futures are based on dividends from selected sector indices
http://jlne.ws/yLXWf7

Exchanges tap into Russian liquidity
Tim Cave – Financial News
Two of Europe’s largest exchanges, Deutsche Börse and the London Stock Exchange, have this week announced plans to improve their provision of Russia-focused services, as European operators look to benefit from increased investor appetite for Russian liquidity.
http://jlne.ws/zTj7nD

Slow going in new ICE Canada grain contracts trade
By Rod Nickel – Reuters
New Canadian grain derivatives that IntercontinentalExchange launched in late January have attracted only sparse trading so far, as uncertainty lingers over Western Canada’s move to an open grain market this year.
http://jlne.ws/xMw94g

CME Group Clearing Advisory
CDS Margin Parameter Change
http://jlne.ws/wIRD0v

NYSE Euronext welcomes ADOCIA to its European Market
http://jlne.ws/As0Ne3

INSIDE Secure admitted to NYSE Euronext in Paris
http://jlne.ws/wRzPe6

[CBOE] Trader E-News 
http://jlne.ws/zgUQC7

Borsa Italiana Welcomes Italian Prime Minister Mario Monti
http://jlne.ws/w3S1yJ

Share Of Investors In Trading In Financial Instruments On The Warsaw Stock Exchange In 2011
http://jlne.ws/z5ma6n

Meeting Of The MICEX-RTS Board Of Directors Held
http://jlne.ws/yn4NYc

MICEX-RTS Group Operating Schedule During The February Holidays
http://jlne.ws/y7gzCG

NZX Redemption Of Ordinary Shares
http://jlne.ws/zCp71E

NZX Redemption Of Restricted Shares
http://jlne.ws/wBEDap

NZX Redemption Of Restricted Shares
http://jlne.ws/wBEDap

TOM MTF Statistics Week 7 2012
http://jlne.ws/yP05zK

BM&FBOVESPA Special Trading Hours On Ash Wednesday
http://jlne.ws/A1rGNz

Banks, Brokers & Dark Pools

BGC Partners, Newmark Knight Frank and Grubb & Ellis Announce Strategic Transaction
PR Newswire via Yahoo! Finance
BGC Partners, Inc.(“BGC”), the leading global financial services firm which acquired Newmark Knight Frank in October 2011, today announced that it has agreed to acquire substantially all the assets of Grubb & Ellis Company.
http://jlne.ws/yfFSTz

ICAP Shipping announces aquisition of Island Ship Brokers Pte Ltd
ICAP Shipping, the shipping arm of ICAP plc, the world’s leading interdealer broker, today announced that it has acquired Island Shipbrokers Pte Ltd, a shipbroking company based in Singapore, from Tim Madley, Allan Spangsberg and Mystic Enterprises Limited.
http://jlne.ws/wFNTA1

Goldman Sachs Australia & NZ Chairman to Retire
Wall Street Journal Blogs
News Ltd. Stephen Fitzgerald (L), pictured with current CEO Simon Rothery Goldman Sachs Australia and New Zealand chairman and advisory director Stephen Fitzgerald announced Tuesday he will retire after 20 years with the global bank.
http://jlne.ws/w6be0g

Goldman Sachs P.R. Chief’s Accidental Exit Interview
New York Times
A Dutch television program scored a surprisingly detailed 37-minute telephone interview with Lucas van Praag, who is retiring as Goldman’s P.R. chief at the end of March.
http://jlne.ws/y5bwNR

Nomura and Tradition launch new ETF trading platform
By Chris Flood – Financial Times
Nomura, the investment bank, and Tradition, the interdealer broker, have teamed up to launch an electronic platform to trade exchange traded funds which will be open to all market participants.
http://jlne.ws/Avo1OI

CPP says it could go bust in weeks
By Gill Plimmer and Alexandra Stevenson – Financial Times
CPP, the credit card insurer, has warned it could go bust within weeks after the Financial Services Authority indicated it was likely to impose one of the stiffest penalties yet for misselling.
http://jlne.ws/zQtPLQ

BNP Paribas Hires Johno From Citigroup for Japan Equity Coverage
BusinessWeek
BNP Paribas SA, France’s biggest bank, added two members to its Japan equities team, including former Citigroup Inc. Managing Director Toshiyuki Johno.
http://jlne.ws/wbIylz

Morgan Stanley leads pack on Facebook IPO
Fort Wayne Journal Gazette
Morgan Stanley may cement its status as the top underwriter for U.S. initial public offerings for a third year running with its lead role on Facebook’s planned $5 billion sale.
http://jlne.ws/wOnDMk

Bank of America: Back from the Dead or Still a Zombie?
BusinessWeek
The troubled banking behemoth’s stock has surged 50 percent this year
http://jlne.ws/AednvP

RBS, Lloyds to Return to Profit in 2012 After Last Year’s Losses
BusinessWeek
Royal Bank of Scotland Group Plc and Lloyds Banking Group Plc are set to post losses for 2011 this week before returning to profit as the state-controlled U.K. banks cut thousands of jobs and finish a series of writedowns.
http://jlne.ws/wQKi0R

Lloyds Banking Group Statement – Bonus Awards 2010
Press Release
http://jlne.ws/xrjYM4

HSBC considering walking away from U.K. government loan scheme, Telegraph says
Theflyonthewall.com via Yahoo! Finance
HSBC (HBC) is considering walking away from the U.K. government’s plans to offer government guarantees to up to GBP20 billion of bank loans for small firms, the Sunday Telegraph reports.
http://jlne.ws/AEZlh2

Citigroup Whistle-Blower Says Bank’s ‘Brute Force’ Hid Bad Loans
BusinessWeek
Four years after rotten mortgages helped trigger a global financial crisis, Sherry Hunt said her Citigroup Inc. quality-control team was still finding flaws in new loans that included altered tax forms, straw buyers and borrowers who listed fictitious employers.
http://jlne.ws/x3FtcU

Regulatory News

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

SEC Surrender Continues With Bear Bankers Deal: William D. Cohan
Bloomberg
Once again, the Securities and Exchange Commission has embarrassed itself. Last week it let off the hook two hotshot former Wall Street hedge-fund managers who lost a bundle for the investors trusting them to manage their money responsibly.
http://jlne.ws/yaj9NC

SEC Settlements Continue to Let Garbage Pile High on Wall Street
Forbes
Once again, the Securities and Exchange Commission is looking worn out and toothless as it tries to clean up the messes piled high and wide on Wall Street. This week, the SEC settled with two former Bear Stearns hedge fund managers whose funds’ collapses marked the start of the financial crisis.
http://jlne.ws/wf36tG

Volcker Said to Lobby SEC Chairman Personally on Volcker Rule
BusinessWeek
Former Federal Reserve chairman Paul Volcker met in person with U.S. Securities and Exchange Commission Chairman Mary Schapiro this week to discuss the proposed ban on proprietary trading named for him, according to a person familiar with the meeting.
http://jlne.ws/xKJVTT

Ex-Bond Highflier Is Warned by SEC
BY JEAN EAGLESHAM – WSJ
U.S. securities regulators have warned a former top architect of the structured-finance boom that they are considering civil charges alleging he misled investors in a mortgage-bond deal that imploded, people familiar with the situation said.
http://jlne.ws/ztgtaq

SEC Charges Oregon-Based Expert Consulting Firm and Owner with Insider Trading in Technology Sector
The Securities and Exchange Commission today charged John Kinnucan and his Portland, Oregon-based expert consulting firm Broadband Research Corporation with insider trading. The charges stem from the SEC’s ongoing investigation of insider trading involving expert networks.
http://jlne.ws/zjsAIC

CFTC Charges Mitchell Brian Huffman of North Carolina with Operating a Fraudulent $3.2 Million Commodity Pool Scheme
The U.S. Commodity Futures Trading Commission (CFTC) today announced the filing of a complaint in federal court in North Carolina, charging defendant Mitchell Brian Huffman of Charlotte, N.C., with operating a fraudulent commodity pool scheme that defrauded participants of more than $3.2 million in connection with exchange-traded commodity futures contracts. Huffman has never been registered with the CFTC.
http://jlne.ws/yaNz9p

Santander fined £1.5 million for failing to clarify FSCS cover on structured products
The Financial Services Authority (FSA) has fined Santander £1.5 million for failing to confirm under which circumstances its structured products would be covered by the Financial Services Compensation Scheme (FSCS).
http://jlne.ws/xatWLC

Iceland FSA Head Derides Investigation Into His Fitness for Job 
By Omar R. Valdimarsson – Bloomberg
The head of Iceland’s financial watchdog, Gunnar Andersen, questioned the motivation behind an investigation into his ability to lead the regulator that last week prompted its board to seek his resignation.
http://jlne.ws/xobJrL

When Will FINRA Get Serious About Unlisted REITs?
Forbes
Unlisted or “private” real estate investment trusts (REITs) have caused a number of problems for investors and regulators in recent years.
http://jlne.ws/zhk1TA

Allen Stanford Taking Stand Seen as Risk to Fraud Trial Defense 
By Andrew Harris and Laurel Brubaker Calkins – Bloomberg
A decision by R. Allen Stanford to testify at his investor fraud trial may focus juror attention on his credibility without helping him win acquittal, three white- collar criminal defense lawyers said.
http://jlne.ws/wQ3mFP

Santelli to Chilton: Will the SEC Serve Itself a Wells Notice Regarding an MF Global Bond Offering?
Zero Hedge
Last week on February 12th we witnessed a short, but really testy exchange between CNBC floor reporter, Rick Santelli and CFTC Commissioner Bart Chilton. In the usual blitz fashion, Santelli asked Chilton where was the CFTC on Halloween and why the agency allowed the SEC to dictate policy over the it’s own regulatory mandate?
http://jlne.ws/z2zXZG

ESMA: Publication Of An Update To The Q&A On Money Market Funds
Press Release
http://jlne.ws/zHl3wQ

IOSCO Consults On Principles For Ongoing Disclosure For Asset Backed Securities
Press Release
http://jlne.ws/xH6kTS

[AMF France] Publication of the report by the working group on general meetings held by listed companies and launch of a public consultation
http://jlne.ws/wEsCfP

[AMF Canada] Scholarships, awards of excellence and call for projects in financial education and research EGGF update!
http://jlne.ws/wdUpvG

ASIC Summer School 2012- opening statement
http://jlne.ws/y4RAsc

ASIC releases policy on enforcement and investigations
http://jlne.ws/AAFRLJ

Investments – Indexes – Managed Futures – Managed Funds

Small Hedge Funds Draw Investments as Bigger Rivals Stumble
BusinessWeek
Richard Maraviglia spent January flying to Zurich, New York, Chicago and Miami to raise $250 million for his hedge fund.
http://jlne.ws/wJJw60

Citigroup to Allow Managers to Own Part of Hedge-Fund Unit
BusinessWeek
Citigroup Inc., the third-biggest U.S. bank by assets, will let managers of its hedge funds own part of the business ahead of rules that limit shareholders’ cash in the unit, Chief Operating Officer John Havens said.
http://jlne.ws/wvAnuF

Closures, Losses Push Back Asia Hedge Fund Industry
CNBC
A rough year for Asian hedge funds in 2011 exposed the long-only bias of many managers’ portfolios, leaving the industry fighting a tough battle to retain clients as assets shrink and fund closures accelerate.
http://jlne.ws/ws6vUv

Ray Dalio’s Bridgewater Sells $250 Million Stake to Texas Fund
BusinessWeek
Bridgewater Associates LP, the hedge fund run by Ray Dalio, agreed to sell a $250 million equity stake to Texas Teacher Retirement System as the firm diversifies ownership from its founder.
http://jlne.ws/y8uoaL

BC Partners Raises $8.6 Billion Fund
By MARK SCOTT – NY Times
LONDON — The European private equity firm BC Partners said on Tuesday that it had raised 6.5 billion euros ($8.6 billion) in one of the largest fund-raising efforts on the Continent since the beginning of the financial crisis.
http://jlne.ws/x6gYpd

Funding pressure eases for trading houses
By Javier Blas, Commodities Editor – Financial Times
The European Central Bank’s longer-term refinancing operations, a three-year loan programme launched in December that has helped ease funding pressures on eurozone banks, is behind the improvement, industry executives say.
http://jlne.ws/A0EPMm

Permira Sifts for Bargains, Even in Europe’s Periphery
By MARK SCOTT – NY Times
LONDON — Kurt Björklund does not seem worried about Europe’s sovereign debt crisis. As competitors pull back from the troubled market, his private equity firm has doubled down on the region, picking through distressed companies from Dublin to Dubrovnik.
http://jlne.ws/zCXoFb

Chuck Jaffe: Managed futures fund isn’t for all investors
Market Watch
Managed futures funds may have a place in a portfolio, but buyers need sophistication and knowledge – not just an adviser’s sales pitch, writes Chuck Jaffe.
http://jlne.ws/AmIx6G

Jim Rogers Loves Him Some Euros
Nasdaq
Dull media outlets can always count on Jim Rogers for a good sound bite.
http://jlne.ws/zAoJ4r

TIAA-CREF and Wellesley College Team Up to Update Retirement Program
Business Wire via Yahoo! Finance
Wellesley College and TIAA-CREF, a leading financial services provider, are working together to re-launch the school’s retirement program by offering employees an expanded menu of investment options.
http://jlne.ws/ydC4pt

Timothy Taylor Named CalPERS Chief Of Enterprise Solutions Development
Press Release
http://jlne.ws/y0A1IW

Thomson Reuters Launches New Model To Predict Fund Managers’ Stock Picks
Press Release
http://jlne.ws/Ajeoo4

Nordic Currencies Stung in Crisis as Ingves Reverses 
By Lucy Meakin – Bloomberg
Sweden and Norway are losing their appeal as havens from Europe’s debt crisis at a time when the krona and krone are more overvalued than at almost any point in the past 40 years.
http://jlne.ws/ADRh6J

Gold Imports by India May Drop From Record on High Prices 
By Madelene Pearson and Swansy Afonso – Bloomberg
Gold imports by India are poised to decline for the first time in three years as rising prices deter jewelry buyers and investors, potentially allowing China to overtake the country as the world’s largest consumer.
http://jlne.ws/yn1Tsg

Platts Expands Its Forward-Dated European Oil Price Assessments – Extends Its Forward Curves Coverage To Thirty Six Months Out
Press Release
http://jlne.ws/zaLD1o

EDHEC-Risk Alternative Indexes: Overview January 2012 – Hedge Funds Start The Year On The Right Foot
Press Release
http://jlne.ws/yyemnc

FTSE Group Lanches FTSE WPU: A Stable Global Currency Unit For Wealth Preservation
Press Release
http://jlne.ws/zLEeuu

12 new Commerzbank ETNs launched on Xetra 
http://jlne.ws/w0VJY8

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

Technology News

Interactive Data Reports Fourth-Quarter and Full-Year 2011 Results
Press Release
Interactive Data Corporation today reported its financial results for the fourth quarter and full year ended December 31, 2011. Interactive Data’s fourth-quarter 2011 revenue increased 6.8% to a record $222.1 million from $207.8 million in the fourth quarter of 2010.
http://jlne.ws/wC9fiC

Renell selects Orc Trading solution for Euronext trading
Orc Group (SSE: ORC), the leading provider of technology and services for the global financial industry, today announced that Renell Wertpapierhandelsbank AG, an independent brokerage and corporate finance firm based in Frankfurt am Main, has selected an Orc Trading solution to support the expansion of its trading operations.
http://jlne.ws/zIAq9P

Orc Group AB (publ) delisted 9 March 2012 
http://jlne.ws/A9YXqw

QuantHouse Offers Co-Location And DMA Services To CME Group
Press Release
QuantHouse, the leading provider of next generation trading solutions, announced the availability of its co-location and DMA services within the recently opened CME Group co-location facility in Aurora; allowing systematic trading firms to benefit from close proximity to the CME Globex match engine, reduced latency and direct access to the exchange’s liquidity centre.
http://jlne.ws/AgkjFd

Datacom Systems Introduces New Network Monitoring Device Targeted At Proximity Hosting Service Providers In The High Speed Trading Environment
Press Release
http://jlne.ws/w0XKyu

Kevin Formby Joins Datacom Systems As Their New CEO
Press Release
http://jlne.ws/xlZNd4

Media News

Ex-Goldman Analyst Writes White Collar Crime Tale
International Business Times
The Darlings tells a fictional tale about the downfall of a hedge fund and the wealthy family that owns it during Wall Street’s 2008 meltdown, but many aspects of the novel are drawn straight from author Cristina Alger’s reality.
http://jlne.ws/Ar4tGA

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

Citigroup Appoints New Japan Markets Head After Libor Suspension
BusinessWeek
Citigroup Inc. appointed a new head of its Japanese markets business as Chief Executive Officer Vikram Pandit seeks to rebuild in the country after receiving the third regulatory punishment in seven years in December.
http://jlne.ws/yTPzyh

Q+A: How closed are China’s commodity futures markets?
Reuters via Yahoo! News
Chinese authorities keep a tight grip on the country’s commodity exchanges as part of efforts to deter speculators from driving up food and resource prices. The three commodity futures exchanges, in Shanghai, Dalian and Zhengzhou have only a small window to foreign participation. Financial institutions are barred from participating, and brokers cannot take positions. …
http://jlne.ws/yelINF

Private Equity Firm Bets on Asia’s Frontier Markets
CNBC
As investors chase yields by investing in high growth emerging markets, private equity firm Leopard Capital is looking beyond traditional economic powerhouses like China and India, to less talked about frontier markets including Myanmar, Bangladesh and Cambodia based on their future growth potential.
http://jlne.ws/zngVw6

Hong Kong Bourse to Offer Asia’s First Volatility Index Futures From Today
Bloomberg
Hong Kong Exchanges & Clearing Ltd. will begin offering futures tracking the HSI Volatility Index (VHSI) of options prices today. Futures (VHSH2) on the benchmark, which tracks expected equity- market volatility over the next 30 days, are the first of their kind based on an Asian market, according to Calvin Tai, head of trading at the Hong Kong exchange.
http://jlne.ws/yGREr2

UBS Facing Real Estate Headache in Hong Kong
New York Times
Estimates are that the Swiss bank’s annual rental costs will jump the equivalent of $42 million when its lease expires.
http://jlne.ws/xCYywE

Bank of Korea Policy Board Will Have New Members in Majority
BusinessWeek
Bank of Korea board changes will put new members in the majority as early as April, prompting criticism that the central bank is putting its credibility and policy consistency at risk.
http://jlne.ws/xzwkhq

SGX welcomes Hong Leong Finance as Full Sponsor on Catalist
Singapore Exchange (SGX) is pleased to welcome Hong Leong Finance Limited (“HLFL”) as a Full Sponsor on Catalist, its sponsor-supervised board for growth companies. As a full sponsor, HLFL will be able to introduce new listings to the Catalist board and oversee the company’s compliance with SGX listing rules.
http://jlne.ws/ws8TKS

Tokyo Grain Exchange: In Regards To Rice Deliverable On The Rice Futures Contract Following The Implementation Of New Regulation Value For Radioactivity
Press Release
http://jlne.ws/xVNYwc

Shenzhen Stock Exchange Issues A Notice Of 3rd Cross-Market ETF Whole-Network Testing, Rolling Out SSE-SZSE 300 ETF On Countdown
Press Release
http://jlne.ws/yvZvCc

Frontier Markets

CME Group and Oman Investment Fund to increase investments in Dubai Mercantile Exchange, Dubai Holding Retains 9% Stake
CME Group, the world’s leading and most diverse derivatives marketplace, and Oman Investment Fund, a sovereign wealth fund of the Sultanate of Oman, today announced that they will increase their investments in the Dubai Mercantile Exchange to enable it to continue growing its business.
http://jlne.ws/cjpXe7

PMEX announces first trades in Sugar Futures Contract
By Shahid Abbasi – The News Tribe
Karachi: Pakistan Mercantile Exchange Limited announced the commencement of trading in the Sugar Futures Contract this week. Trading started in the February contract. PMEX has currently three contracts at the months of March, April and May.
http://jlne.ws/xBcKkw

DIFC Closes 2011 With Strong Performance And Stable Signs Of Growth
The Dubai International Financial Centre (DIFC), the financial and business hub connecting the region’s emerging markets with the developed markets of Europe, Asia and the Americas, updates the market today on its positive performance in 2011.
http://jlne.ws/wtcIkX

Dubai Financial Market: Announces Its Board of Directors Meeting To Be Held On 26 February 2012
http://jlne.ws/xTZFqN

Thirty Four (34) Of Forty Six (46) Listed Companies On The Palestine Exchange (PEX) Achieved Profits In 2011
http://jlne.ws/Am5RvX

Tehran Stock Exchange’s Listing Activities
http://jlne.ws/vYZF2Q

The Egyptian Exchange (EGX) Monthly Statistical Report January 2012
http://jlne.ws/xttVMw

Miscellaneous News

Balancing Business and Human Rights
New York Times
Angela Merkel rolled out the red carpet for the president of Kazakhstan, and German companies are eager to do business with China. Will talk of human rights be swept under the rug?
http://jlne.ws/wLyn9R

Krugman Embraces Keynesian Label to Defend Government Spending
BusinessWeek
Nobel-prize winning economist Paul Krugman maintained his calls for government spending to create jobs after being labeled a “crude Keynesian” by fellow academic Jeffrey Sachs.
http://jlne.ws/zwdVhc

Commodities: How Important are Commodity Futures Speculators?
By Don Dawson, Inside Futures
I have been involved in Commodity Futures trading now for 24 years and have had the opportunity to see first-hand the significance of my participation as a speculator. Many of you are probably wondering what significance one trader could have on something as big as the Commodity Futures markets. And I would expect that kind of question from traders who have only traded on an electronic trading platform. While my trading activity alone does not create the market liquidity needed to keep the world Commodity markets trading daily, collectively, our trades make up the required liquidity to make the markets function the way they were intended to some 200 years ago.
http://jlne.ws/y7TriE

John Lothian Newsletter

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

“John Lothian and Company… our industry intelligence.”

Rick Lane

CEO, Trading Technologies

Past JLN Newsletters

How Ken Griffin rebuilt Citadel’s ramparts

How Ken Griffin rebuilt Citadel’s ramparts

First Read $33,626/$300,000 (11.2%) Charlie Carey ++++ Trading Technologies Announces Matching Program to Benefit GoFundMe Campaign for MarketsWiki Education Video Series and John Lothian News As a pioneer of electronic trading, we at Trading Technologies value our...

Pin It on Pinterest

Share This Story