John Lothian Newsletter: MF Global Clients May Lose in $700 Million Bankruptcy Fight; EU Almunia: Deutsche Bourse/NYSE Decision To Be Adopted Feb 1 Without Doubt; Illinois AG sues S&P over mortgage ratings

Jan 26, 2012

Ex-MF Global clients are at risk of losing hundreds of millions of dollars from the bankruptcy outcome, no matter what settlement procedure is used.  Joaquin Almunia says the DB-NYSE Euronext merger (or not-merger) decision will come on February 1, no matter what certain other EU Commissioners might have to say about it.  The Illinois Attorney General takes aim at S&P for its high ratings of mortgage securities.  The CFTC releases a report of its review of financial firms, finding no firms declaring any mishandling of customer cash.

Observations – Statistics – Commentary

Regulators Find No Material Breaches In Review Of Futures Firms
By Jacob Bunge and Jamila Trindle Of DOW JONES NEWSWIRES
WASHINGTON – U.S. regulators found no “material breaches” at the largest futures firms, following a review over the past three months after the collapse of MF Global Holdings Ltd. dealt a black eye to the broader derivatives business.
http://jlne.ws/xqY9rc

CFTC Releases Results of Limited Reviews of Futures Commission Merchants
Press Release
Washington, DC – The Commodity Futures Trading Commission today released findings of limited reviews of futures commission merchants (FCMs) to assess compliance with requirements to segregate customer funds pursuant to Section 4d of the Commodity Exchange Act (ACT).
http://jlne.ws/wlTODg

**** As expected.

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Futures Industry Sees Chance to Shape Oversight
By BEN PROTESS and AZAM AHMED – NY Times
Worried about government overreach after MF Global’s demise, futures executive want to have a hand in greater industry oversight.
http://jlne.ws/z190XH

**** Follow up story on the Northern Trust meeting.

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MF Global casts spotlight on client fund rules
Luke Jeffs | Reuters
LONDON (Reuters) – Three years after the demise of Lehman Brothers exposed problems in how brokers handle client funds, trading firms are still using lax rules to withhold cash owed to clients of failed brokerages, fuelling calls for reforms.
http://jlne.ws/xTMN5L

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NYSE chief ‘misjudged’ EU regulators
By Patrick Jenkins in Davos and Jeremy Grant in London – Financial Times
Duncan Niederauer, chief executive of NYSE Euronext, has admitted that he had “misjudged” European antitrust authorities’ approach to his exchange’s attempted tie-up with Deutsche Börse, saying there was only a “glimmer of hope” that the deal will succeed.
http://jlne.ws/wHSYmJ

***** Interesting admission.  I had misjudged the U.S. antitrust authorities approach in the US over the CME-CBOT deal.  Stuff happens.

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Kansas City Board of Trade Announces Officers, Directors for 2012
Press Release
Steven K. Campbell is 2012 KCBT Chairman. James S. Bosley, Jr. has automatically advanced from the post of second vice chairman in 2011 to first vice chairman in 2012. Matthew A. Siegel, Matthew A. Siegel & Co. Inc., has been elected as second vice chairman. The exchange also elected the following members to two-year terms on the board of directors: John P. Crowe, John P. Crowe & Company; and Daniel L. Gibson, Wolcott & Lincoln Futures, LLC.
http://jlne.ws/zOa8At

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Kansas City Board of Trade Appoints Public Directors for 2012
Press Release
Kansas City—January 25, 2012—The Kansas City Board of Trade announces the election of Michael V. Dunn and James Lammle as public directors. Four public directors sit on the exchange’s board, along with seven members, three of which are executive officers.
http://jlne.ws/zXQ6pz

**** Now we know one of the things former CFTC Commissioner Michael Dunn is doing in his retirement.

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SunGard Public Sector Recognized With Alfred P. Sloan Award For Workplace Flexibility
SunGard Public Sector has been honored with the 2011 Alfred P. Sloan Award for Business Excellence in Workplace Flexibility for its use of flexibility as an effective workplace strategy to increase business and employee success.
http://jlne.ws/xx3rRA

**** At JJLCO we have the Alfred E. Newman Award for Workplace being snarky.

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CQG co-locates servers at new CME data centre
Press Release
CQG, the industry-leading order execution, charting, and analytics provider for global, electronically-traded securities, today announced that it has co-located its exchange gateway servers at CME Group‘s new, state-of-the-art data center located in Aurora, Illinois to provide low-latency order routing and market data connectivity to the CME Globex platform.
http://jlne.ws/z5iwKU

***** We need a new word for co-locates.  It sounds like a way you describe moving into the same apartment complex as your girlfriend.

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Meddle with the market at your peril
By Alan Greenspan – Financial Times
Controlled experiments are not feasible in economics. But we came close in the competition between East and West Germany after the second world war. Both countries started with the same culture, the same language, the same history and the same value systems. Then for 40 years they competed on opposite sides of a line. The only major difference was their political and economic systems: central planning vs market capitalism.
http://jlne.ws/xvevjn

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Sign of (Tough) Times: Small Broker’s Closure
By LIZ MOYER And JENNY STRASBURG – WSJ
So far, 2012 is shaping up as the year of the little brokerage that couldn’t. On Tuesday, Ticonderoga Securities LLC became the second firm this year to announce the close of stock-trading operations. Two other securities firms have sharply cut back stock trading in recent months, following a 2011 during which big market swings and soft trading volume hammered profits.
http://jlne.ws/AbPmJu

**** A start of a trend?

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Hey buddy, want to run a failing U.S. bank?
Dave Clarke | Reuters
WASHINGTON (Reuters) – Wanted: Skilled executives willing to take over large, failing U.S. financial firms at a moment’s notice. Among the issues facing U.S. regulators as they work through how they would use new powers to seize and liquidate a large U.S. bank, or other big financial firm, is who could run the institution as it goes through the process.
http://jlne.ws/zJxRZt

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JLN Options Newsletter

How Buy-Side Traders Are Adapting to the Volatility 
By Miranda Mizen, Tabb Group
Profound change can be rather subtle. While it is obvious that current events cause changes in the market that require adaptation by buy-side trading desks, it is not always obvious to what extent change becomes the new norm. This year, conversations during the rollercoaster markets of August with 68 buy-side traders for TABB Group’s annual buy-side equity study, “Coverage Under Fire,” suggest that the needle on the dial has moved.
http://jlne.ws/yA6NdG

Global firms sharpen currency hedging on euro concern
Reuters
International firms are spending more time at the highest levels discussing how to hedge currency risk, particularly euro-denominated earnings and transactions, in readiness for a worst case scenario of a euro zone breakup. Companies are scrutinizing the inbuilt protections in their hedge contracts and robustness of the settlement process if the euro were to collapse, bankers and executives said in interviews leading up to and during the World Economic Forum in Davos.
http://jlne.ws/wRj3KF

CBOE to Launch Trading in CBOE Emerging Markets ETF Volatility Index Options on January 31
CHICAGO, Jan. 24, 2012 /PRNewswire/ (Press Release) — The Chicago Board Options Exchange (CBOE) announced today that it will begin offering trading in options on the CBOE Emerging Markets ETF Volatility Index (VXEEM) on Tuesday, January 31. The new options contract follows the introduction of trading in CBOE Emerging Markets ETF Volatility Index security futures (futures symbol: VXEM) at CBOE Futures Exchange (CFE) on January 9, 2012. Investors can use either or both products to hedge emerging markets volatility exposure or to make direct plays on emerging markets volatility. CBOE Emerging Markets ETF Volatility Index options and security futures are the first of several ETF-based volatility index products planned for launch at CBOE and CFE in 2012.
http://jlne.ws/dqtww6

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MarketsWiki Page of the Day
Richard Sheaffer
http://jlne.ws/AsUSPY

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MarketsWiki Recent Updates

People 

Pat ReadSteven CampbellMichael DunnJennifer E. CardyDonna BrennerRob PriorDavid RuderDaniel H. MuddRichard JaycobsRichard Sheaffer

Companies, Organizations and Groups

GuavaTech, Inc.Rand Financial Services, Inc.Kansas City Board of TradeNewedge

Miscellaneous

Futures contractUpcoming EventsJob Postings

Statistics

18,706,168 pages viewed, 6,666 articles, 136,027 edits
MarketsWiki Statistics
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Lead Stories

MF Global Clients May Lose in $700 Million Bankruptcy Fight
Kit Chellel – Bloomberg
MF Global Holding Ltd.’s clients may be the losers no matter who wins a $700 million dispute between bankruptcy administrators in London and New York that threatens the return of money locked in customer accounts.
http://jlne.ws/xJXvXz

EU Almunia: Deutsche Bourse/NYSE Decision To Be Adopted Feb 1 Without Doubt 
Dow Jones
BRUSSELS (Dow Jones)–The European Commission, the executive arm of the European Union, will rule on the planned merger of exchange operators Deutsche Boerse AG and NYSE Euronext on Feb. 1, as planned, EU Competition Commissioner Joaquin Almunia said Wednesday.
http://jlne.ws/xpfkoh

Illinois AG sues S&P over mortgage ratings
By Alejandra Cancino – Chicago Tribune
The nation’s largest credit agency, Standard & Poor’s, violated Illinois law when it assigned its highest credit rating to risky mortgage-backed investments in the years leading to the collapse of the housing market, Attorney General Lisa Madigan alleged Wednesday.
http://jlne.ws/ydp7RE

Greek Debt Talks to Resume in Athens as Policy Makers Squabble
BusinessWeek
Talks on a debt swap to avert a Greek default resume today as international policy makers squabble over the mounting cost of the rescue.
http://jlne.ws/yUff34

Germany Approves Bank Bailout Bill
BY ANDREA THOMAS – WSJ
BERLIN—German lawmakers Thursday approved a bill to reactivate the country’s bank bailout fund SoFFin to help banks weather the current debt crisis and improve their capital base.
http://jlne.ws/wWH9am

CEOs in Davos Discuss Acquisitions Amid Gloomy Forecast From IMF
BusinessWeek
The chief executive officers of some of Europe’s richest companies, gathering at this week’s World Economic Forum amid a flood of negative economic forecasts, have a message for doubters: don’t count us out.
http://jlne.ws/vZYG1N

Soros Promotes Crisis Plan for Europe
By ERIC PFANNER – NY Times
The billionaire investor George Soros said on Wednesday that it was possible Greece could be pushed out of the euro zone this year.
http://jlne.ws/xsziVf

Merkel set on beating crisis in eurozone
By Chris Giles in Davos, Quentin Peel in Berlin and Ralph Atkins in Frankfurt – Financial Times
Angela Merkel, the German chancellor, on Wednesday spelt out her determination to overcome the crisis in the eurozone, but warned against demanding excessive guarantees from Germany that it could not fulfil.
http://jlne.ws/zyvTAj

Less Than Two Months Ahead Of The Greek D-Day, Rogoff Says “Europe Is Clearly Not Ready For A Greek Default”
Zero Hedge
It is less than two months until the Greek March 20 D-Day past which there is no more can-kicking? Check. Creditor negotiations which are going “so well” they may collapse at any given moment, have had their deadline extended indefinitely just because, and in which hedge funds now have every option to put the country into bankruptcy? Check.
http://jlne.ws/xkmwiW

Geithner Says Obama Won’t Ask Him to Stay for Second Term 
Bloomberg
Jan. 25 (Bloomberg) — Treasury Secretary Timothy F. Geithner, the last remaining member of the Obama administration’s original economic team, said he doesn’t expect the president to ask him to stay in office if re-elected
http://jlne.ws/wnOZyI

The Fed experiments with imperfect tools
Mohamed El-Erian – Financial Times
Policy experimentation continues unabated in the US with the Federal Reserve launching on Wednesday a new initiative to influence market valuations and, through this, the outlook for the country’s economy. The Fed hopes to use greater transparency to mould expectations in a manner that promotes economic growth and price stability. But this new approach could also create confusion and even greater hesitancy on the part of healthy balance sheets to engage in productive investments.
http://jlne.ws/A3xM3q

Bernanke shakes up central bank
By Robin Harding in Washington – Financial Times
Ben Bernanke’s road towards a more transparent US Federal Reserve was a long one, but he got there in the end. His tenure has been marked by momentous Fed meetings, and while this one may have lacked the drama of a weekend gathering to rescue the financial system, its long-term impact will not be less.
http://jlne.ws/zOT64i

Environmental Trading News

Guangdong Carbon Program to Be China’s Largest, New Energy Says
Bloomberg
A program to curb the increase of greenhouse gas emissions in China’s Guangdong province will probably be the largest of the nation’s seven test climate- protection systems, according to Bloomberg New Energy Finance.
http://jlne.ws/Au3ml1

Pilot Carbon Emissions Trading System Readied in PRC
ADB Press Release
The Asian Development Bank (ADB) will help the People’s Republic of China (PRC) set up a pilot provincial emissions trading system that could pave the way for a national scheme and lower greenhouse gas emissions in the country.
http://jlne.ws/wsExh7

Signs of New Life as U.N. Searches for a Climate Accord
The New York Times
Critics and supporters alike agree that the U.N. forum for negotiating international climate change policies is an ungainly mess, its annual gatherings marked by discord, disarray and brinkmanship.
http://jlne.ws/yUzXuy

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-Deutsche Boerse Appeal Direct to Barroso in Deal Fight
BusinessWeek
NYSE Euronext and Deutsche Boerse AG appealed directly to European Commission President Jose Barroso as they fought to salvage their merger, arguing that blocking it would “represent a serious missed opportunity at a critical juncture for Europe.”
http://jlne.ws/wTISII

NYSE Euronext CEO Has Little Hope On Deutsche Boerse Deal – Report
Maarten van Tartwijk, Dow Jones Newswires
AMSTERDAM -(Dow Jones)- Exchange operator NYSE Euronext believes there is only a small chance that the planned merger with Deutsche Boerse AG will materialize, its chief executive said in an interview with Dutch daily Het Financieele Dagblad published Thursday.
http://jlne.ws/xjb7Ke

EARNINGS PREVIEW: Trading Slowdown, Regulatory Woes Hang Over Exchanges In 4Q 
By Mia Lamar and Jacob Bunge Of DOW JONES NEWSWIRES
TAKING THE PULSE: The new year finds exchanges in soul-searching mode as a nearly year-long push by NYSE Euronext (NYX) and German exchange operator Deutsche Boerse AG (DB1.XE) to seal their $17.7 billion tie-up is seen as all but dead amid increasingly unlikely European Union approval of the deal.
http://jlne.ws/AnBd9W

Launch Of AIM Italia – Mercato Alternativo Del Capitale – The SME Advisory Board And Borsa Italiana Launch A New Market Dedicated To Small And Medium Enterprises
Press Release
http://jlne.ws/xNoBRQ

EEX Launches Incentive Scheme On The Natural Gas Spot Market
Press Release
http://jlne.ws/x32aKd

EEX presents Excellence Award
In the context of the opening of its new Brussels office, the European Energy Exchange presented the “EEX Excellence Award” for outstanding academic achievements for the first time.
http://jlne.ws/xkUfGg

Guidewire Software Celebrates Initial Public Offering and First Day of Trading on the New York Stock Exchange
http://jlne.ws/zPMtlC

NYSE to Suspend Trading in Duoyuan Global Water Inc.; Moves to Remove from the List
http://jlne.ws/wagbNk

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

NYSE Group Inc. Issues Short Interest Report
http://jlne.ws/xGASH9

NASDAQ Announces Mid-Month Open Short Interest Positions In NASDAQ Stocks As Of Settlement Date January 13, 2012
Press Release
http://jlne.ws/xEzYy3

SIX Swiss Exchange fines Altin Ltd
Press Release
http://jlne.ws/wiPvar

SIX Securities Services: Terravis Enables Electronic Business Transactions Between Land Registries, Notary’s Offices And Banks
Press Release
http://jlne.ws/xHSiYS

Hellenic Exchanges S.A. Financial Calendar
Press Release
http://jlne.ws/wX9D4t

Coordination Board Of The MICEX-RTS Innovation And Investment Market Evaluates IIM 2011 Activities
Press Release
http://jlne.ws/y8XRL9

NSD To Settle RTS Money Transactions
Press Release
http://jlne.ws/zgPdla

Banks, Brokers & Dark Pools

Citigroup’s Pandit Says Banks Have to Regain Public Trust
Bloomberg
Citigroup Inc. (C) Chief Executive Officer Vikram Pandit said banks need to start serving clients rather than themselves as the industry tries to rebuild public trust following the financial crisis.
http://jlne.ws/xfTZnI

Citigroup Targets Banking Basics Amid ‘Anger,’ Pandit Says
BusinessWeek
Citigroup Inc. is practicing “responsible finance” and going “back to the basics of banking” as lenders address public anger after the financial crisis, Chief Executive Officer Vikram Pandit said.
http://jlne.ws/xapukq

Citigroup to Consider Further Cuts in Trading, Investment Bank
BusinessWeek
Citigroup Inc., the third-biggest U.S. bank, may make more spending cuts at its securities unit after an investment of almost $1 billion in the business last year failed to boost revenue.
http://jlne.ws/wGP6Ei

Barclays’s Diamond Says Still Backs Universal Banking Model
BusinessWeek
Barclays Plc Chief Executive Officer Robert Diamond said he continues to believe in the “strength of the universal banking model” even as some regulators push lenders to split up businesses.
http://jlne.ws/zPlkGB

The Bank That Works
Forbes
As financial services continue to struggle with credibility–and profitability–John Stumpf’s Wells Fargo is quietly doing what banks are supposed to: opening accounts, making loans and issuing mortgages. He may even have a solution to the housing crisis.
http://jlne.ws/wcX400

London Bankers Stay Put as Bonuses Wane
By JULIA WERDIGIER – NY Times
LONDON – The beginning of the year is usually a busy time for bankers and recruiters as many staffers wait to get their bonuses before setting off to a rival.
http://jlne.ws/y8Uybb

Morgan Stanley CEO Says Pay-Cut Complaints Would Be ‘Naive’
BusinessWeek
Morgan Stanley Chairman and Chief Executive Officer James Gorman said employees understand why the investment bank had to cut pay, and those who don’t grasp the reasoning need to adjust their attitude.
http://jlne.ws/xDaJLK

Deutsche Bank Americas Foundation Commits $1.4 Million to New York City Cultural Organizations
Business Wire via Yahoo! Finance
Deutsche Bank Americas Foundation, the philanthropic arm of Deutsche Bank, today announced $1.4 million in philanthropic commitments to 15 New York City arts and cultural organizations.
http://jlne.ws/xVV3ma

Exclusive: Senate investigating HSBC for money laundering
By Carrick Mollenkamp, Brian Grow and Brett Wolf – Reuters
(Reuters)- HSBC Holdings PLC is under investigation by a U.S. Senate panel in a money-laundering inquiry, the latest step in a long-running U.S. effort to halt shadowy money flows through global banks, according to people familiar with the situation and a company securities filing.
http://jlne.ws/xVS07F

Penson Worldwide, Inc. Fourth Quarter 2011 Conference Call on Tuesday, February 28, at 10 AM Eastern (9 AM Central)
Business Wire via Yahoo! Finance
Penson Worldwide, Inc. will host a conference call on Tuesday, February 28, 2012 at 10:00 AM Eastern Time with Philip A. Pendergraft, Chief Executive Officer; Bryce B.
http://jlne.ws/yvRlsz

RBS Said to Be Nearing Sale of Hoare Govett Unit to Jefferies
BusinessWeek
Royal Bank of Scotland Group Plc, Britain’s biggest state-owned lender, is nearing an agreement to sell its Hoare Govett corporate broking unit to Jefferies Group Inc., two people with knowledge of the talks said.
http://jlne.ws/wH9D4S

E*TRADE Financial Corporation Announces Fourth Quarter and Full Year 2011 Results
Business Wire
http://jlne.ws/whkDrV

Schwab Advisor Services Reports 2011 Independent Registered Investment Advisors Mergers and Acquisitions Activity
Business Wire via Yahoo! Finance
http://jlne.ws/xmPMyb

Norway’s Kommunalbanken Plans Sterling 2014 Bond
Dow Jones Newswires
http://jlne.ws/yjhAhf

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/dig012612.htm

Greenlight Capital fined $11M for market abuse
Associated Press via Yahoo! News
High-profile hedge fund manager David Einhorn and his U.S.-based Greenlight Capital Inc. have been fined 7.2 million pounds ($11.2 million) for trading on inside information, Britain’s market regulator said Wednesday.
http://jlne.ws/AqQx9j

Greenlight’s Einhorn Ordered Trades ‘Within Minutes’ of Tip
BusinessWeek
Greenlight Capital Inc. Chairman David Einhorn ordered traders to sell shares in Punch Taverns Plc “within minutes” of getting inside information on the firm’s plan to sell equity, the U.K.’s finance regulator said.
http://jlne.ws/zuxe7w

FSA fulfils vow to bag high-profile target
By Sam Jones, Kate Burgess and Brooke Masters in London, and Dan McCrum in New York – Financial Times
For years the UK’s Financial Services Authority has been promising a high-profile scalp to prove to those operating in the City of London that it will not tolerate trading on privileged information, in whatever form. On Wednesday it delivered on the promise.
http://jlne.ws/yO7XYK

CFTC Staff to Host Public Roundtable to Discuss the “Available to Trade” Provision for Swap Execution Facilities and Designated Contract Markets
Washington, DC – Staff of the Commodity Futures Trading Commission (CFTC) will hold a public roundtable on January 30, 2012, from 9:30 a.m. to 1:30 p.m., to discuss the proposed regulations to implement the “available to trade” provision of the trade execution requirement set forth in Section 2(h)(8) of the Commodity Exchange Act pursuant to Section 723 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
http://jlne.ws/zqSmFu

FINRA Investor Education Foundation and the American Library Association Announce $1.2 Million in Grants to Public Libraries to Support Financial Literacy
WASHINGTON—The Financial Industry Regulatory Authority (FINRA) Investor Education Foundation and the American Library Association (ALA) have announced $1.2 million in grants to 16 recipients as part of the Smart investing@your library initiative.
http://jlne.ws/y6laum

FINRA Fines Merrill Lynch $1 Million for Failure to Arbitrate Disputes With Employees
WASHINGTON — The Financial Industry Regulatory Authority (FINRA) announced today that it has fined Merrill Lynch, Pierce, Fenner & Smith $1 million for failing to arbitrate disputes with employees relating to retention bonuses.
http://jlne.ws/zLS3Qz

Statement Of Dissent To The CFTC-SEC Report On International Swap Regulation Pursuant To Section 719(c) Of The Dodd-Frank Act
Press Release
http://jlne.ws/wZ8whs

IOSCO Publication: Follow-On Analysis To The Report On Trading Of OTC Derivatives
Press Release
http://jlne.ws/AAsTk2

Swiss Regulator Steps Up Focus On Housing Market Boom -Survey
FOX Business
Switzerland’s financial markets supervisor is stepping up its focus on the country’s booming housing market to try and avoid a potential price bubble developing, it said Wednesday.
http://jlne.ws/xz8dPw

New orthodoxy for conduct regulation – fair deal for consumers
Martin Wheatley, managing director of the Financial Services Authority (FSA), today outlined a new orthodoxy and regulatory approach for the future of conduct regulation – getting a fair deal for consumers.
http://jlne.ws/zULjv6

Hungarian financial supervisor lifts iForex suspension
http://jlne.ws/xZ1zxw

Amendments To Global AMF Futures Individual Contract Specifications, AMF Contract Terms And Administrative Procedures And NZX Derivatives Market Procedures
Press Release
http://jlne.ws/z4fLbI

FSB Completes Peer Review Of Switzerland
Press Release
http://jlne.ws/zRZ9we

Accused Inside Traders Kuo, Newman Released on Bond in Hedge-Fund Case
Bloomberg
http://jlne.ws/w2R33F

Investments – Indexes – Managed Futures – Managed Funds

Public Pensions Increase Private-Equity Investments
BY MICHAEL CORKERY – WSJ
Large public pension plans are pouring more money into private-equity funds, deepening ties between government workers and an industry currently under the harsh glare of U.S. presidential politics.
http://jlne.ws/zwzUcg

Andreessen Is Said to Seek $1.5 Billion in Fund-Raising
By EVELYN M. RUSLI – NY Times
A name like Andreessen goes a long way in Silicon Valley. Marc Andreessen, the venture capitalist who was a co-founder of Netscape, is in the process of raising $1.5 billion from investors for his namesake firm, with $900 million earmarked for a main fund and $600 million for a parallel fund, according to two people briefed on the matter.
http://jlne.ws/wSHID5

Guggenheim Flips The Switch On New Trading Arm
By Liz Moyer Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)–Guggenheim Partners’ trading division is officially up and running, disclosing in a securities filing last week that it had begun to trade $250 million of the $500 million originally committed by the firm.
http://jlne.ws/wieagm

Hedgies braving battered markets to go it alone
Reuters via Yahoo! News
LONDON (Reuters) – Several high-profile hedge fund managers are preparing to strike out on their own this year, supported by strong followings and unfazed by a year of poor industry performance that has shaken investor confidence in the $2 trillion sector.
http://jlne.ws/wZK9Ja

ED&F scores further MF Global hires
Tom Osborn – Financial News
ED&F Man, the commodity trading house which split from Man Group in 2000, has made further hires from the London staff of its former parent MF Global, bolstering its ranks in the investment advisory arena.
http://jlne.ws/ywbg86

DTCC Names Mark Davies Vice President, Data Business Development
Business Wire
NEW YORK & LONDON–(BUSINESS WIRE)–DTCC announced today that it has named Mark Davies to the new position of vice president, Data Business Development, focusing on DTCC’s involvement in the Legal Entity Identifier program in Europe.
http://jlne.ws/wl8msd

AlphaMetrix Acquires WR Group LLC Assets 
Press Release
Chicago, IL – January 25, 2012 – AlphaMetrix LLC, founder of the AlphaMetrix Global Marketplace (AGM), the world’s leading online marketplace for private investments, today announced it has acquired the hedge fund managed account assets of WR Group LLC.
http://jlne.ws/w1amrr

Ireland returns to international bond market
By Jamie Smyth in Dublin – Financial Times
Dublin has taken advantage of growing investor confidence in Ireland by returning to the international bond market for the first time since September 2010 to swap E3.52bn in government bonds.
http://jlne.ws/vZpY3k

Goldman Lured by New Zealand Windfall as Key Pushes State IPOs
BusinessWeek
After a dearth of initial public offerings in the past decade, New Zealand is back on investment bankers’ radar screens as Prime Minister John Key prepares the biggest round of state asset sales in more than 20 years.
http://jlne.ws/ztHFPx

TIAA-CREF Names Ron Pressman Chief Operating Officer
Business Wire via Yahoo! Finance
http://jlne.ws/xPWN9G

Looks Like Goldman Picked the Wrong Time to Go All Bill Gross on Treasurys
By Mark Gongloff – Wall Street Journal Blogs
Remember how Goldman Sachs recommended you go short Treasurys? On Monday?
http://jlne.ws/y4TMQ6

New Dow Jones Credit Suisse Hedge Fund Index Commentary Reviews Hedge Fund Performance in 2011
PR Newswire via Yahoo! Finance
http://jlne.ws/AwceL5

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

Federal Reserve Board And Federal Open Market Committee Release Economic Projections From The January 24-25 FOMC Meeting
Press Release
http://jlne.ws/zwEDL3

Federal Reserve Issues FOMC Statement Of Longer-Run Goals And Policy Strategy
Press Release
http://jlne.ws/y482gR

Technology News

GuavaTech Inc. Announces Presence in CME Group’s Co-Location Facility
Press Release
Chicago January 25, 2012 – GuavaTech, Inc., a leading managed service provider specializing in customized IT solutions for proprietary trading firms, investment banks, hedge funds, broker/dealers, and FCM’s, today announced that it will begin offering proximity hosting and ultra-low latency connectivity solutions at the new CME Group data center located in Aurora, IL. CME Co-Location Services will launch live trading on January 29, 2012.
http://jlne.ws/AFqEEG

TABB Group Finds Financial Extranets Have Increasingly Critical Role in Connecting a Fragmented Trading World
PR Newswire via Yahoo! Finance
NEW YORK, Jan. 25, 2012 /PRNewswire/ — Financial extranets are playing a critical role in today’s trading environment, enabling market participants to capitalize on the opportunities created by market …
http://jlne.ws/wSXuoZ

In China, Human Costs Are Built Into an iPad
By CHARLES DUHIGG and DAVID BARBOZA – NY Times
A staggering manufacturing system in China has made it possible for Apple and other companies to make devices almost as quickly as they can be dreamed up, but for workers, it can be dangerous.
http://jlne.ws/zB0vID

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

HSBC Seeks Buyer for Japan Retail Banking
BusinessWeek
HSBC Holdings Plc, Europe’s largest bank, is seeking buyers for its Japanese consumer banking unit four years after starting the business, said three people familiar with the matter.
http://jlne.ws/yFcKtW

HSBC Sells Thai Retail Unit to Bank of Ayudhya for $115 Million
BusinessWeek
HSBC Holdings Plc, Europe’s largest bank, sold its consumer unit in Thailand to Bank of Ayudhya Pcl for about $115 million, its second deal in as many days as it offloads smaller operations to focus on larger markets.
http://jlne.ws/x80Q8w

The Central Bank Of Myanmar Visits The Stock Exchange Of Thailand
Press Release
SET President Charamporn Jotikasthira welcomed an executive group of the Central Bank of Myanmar, led by Mr. Nay Aye – Deputy Governor of The Central Bank of Myanmar, on the occasion of visiting the SET’s office.
http://jlne.ws/xtwWBY

Tokyo Grain Exchange SPAN Parameters Effective From February 1, 2012 To February 15, 2012
Press Release
http://jlne.ws/zvMwKV

SGX Welcomes Polaris Futures As Member
Press Release
http://jlne.ws/yBlTWb

Frontier Markets

2011 JSE Annual Trading Statistics
Press Release
http://jlne.ws/yDpev3

Miscellaneous News

Gates pledges $750m to Global Fund
By Andrew Jack in London – Financial Times
Bill Gates, the Microsoft chairman and philanthropist, has pledged $750m to the Global Fund to fight Aids, tuberculosis and malaria over the next five years, a vote of confidence in the multilateral agency following a top-level management shake-up unveiled earlier this week.
http://jlne.ws/zxw3PP

SIFMA Applauds House Agriculture Passage Of Derivatives Bills
Press Release
http://jlne.ws/Az1I1F

John Lothian Newsletter

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Past JLN Newsletters

CME to permanently close most trading pits

CME to permanently close most trading pits

First Read $40,626/$300,000 (13.5%) Anonymous ++++ Hits & Takes John Lothian & JLN Staff Without fanfare or amplification from its executives, the CME Group shut the books on most -- but not all -- of its floor trading history Tuesday afternoon with the...

Americans Can’t Get Enough of the Stock Market

Americans Can’t Get Enough of the Stock Market

First Read $40,526/$300,000 (13.5%) ++++ Hemp Farming Looking For Credit; Carbon Credit, That Is Thom Thompson - John Lothian News Well, it is now May, and in most of the United States it is high time to get the field crops planted. Among them is hemp, industrial...

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