First Impressions

Oceans of Data: Ari Rubenstein Talks About the Next Data Challenge and Solution
JohnLothianNews.com

Regulations are pushing firms to collect, store and organize data in new and complex ways. Ari Rubenstein, co-founder and CEO of Global Trading Systems, said this is creating a glut of data for firms and an opportunity as well. Managing big data in innovative ways, he says, will be the next competitive edge for firms.

Rubenstein’s firm has developed a solution which it believes can efficiently help firms manage and store trading data for regulatory and compliance needs. For him, that will help give firms an advantage over the competition.

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Quote of the Day

“We’ll eventually get quantitative easing from the ECB. Whether he buys government bonds or corporate bonds or asset-backed securities or gets rates more negative than they are, it’s not clear that any of that’s going to make bank lending pick up.”

Kit Juckes, a London-based global strategist at Societe Generale SA in the story, ” Euro Drops on Speculation ECB May Expand Stimulus”.

Lead Stories

Europe Needs More Larry Summers And Less Germany
Matthew Schoenfeld – Forbes
Will Europe fall down the deflationary rabbit hole and shatter global growth? That question has dominated mindshare in financial markets and it was the fulcrum of a much publicized debate between former U.S. Treasury Secretary Larry Summers and German Finance Minister Wolfgang Schaeuble at last week’s IMF meetings.
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A healthy challenge to the old guard of global finance
Eswar Prasad – Financial Times
Change is coming to the international monetary system. Weary of broken promises to give them a say in the running of the International Monetary Fund that matches their economic heft, the so-called Brics countries have set up their own development bank. Brazil, Russia, India and China also plan to pool foreign exchange reserves and avoid having to rely on the IMF during crises.
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Argentina eyes up to USD1bn in dollar-linked local bonds
Reuters
Argentina said it intends to issue up to USD1bn in dollar-linked bonds in the domestic markets, with the first offering set for later this week.
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Pimco Sticks to Bullish Brazil Call After Buying Up Bonds
Ye Xie and Julia Leite – Bloomberg
Brazilian economic policy is set to improve regardless of who wins the country’s presidential election this weekend, supporting asset prices, according to Pacific Investment Management Co., which manages the world’s biggest bond fund.
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Swedish FSA Tightens Corporate Bond Rules to Aid Transparency
Niklas Magnusson and Charles Daly – Bloomberg
The Swedish Financial Supervisory Authority will tighten rules on how corporate bond trades are reported to increase transparency on volumes and pricing.
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Central Banks

ECB Purchases Begin and Markets Shrug
Alen Mattich – MoneyBeat – WSJ
The European Central Bank launched its private sector asset purchase program on Monday. But will it work?
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Fed’s Dudley: Bad Bank Behavior Could Drive Break Up – WSJ
Victoria McGrane – WSJ
Fed’s Dudley: Bad Bank Behavior Could Drive Break Up – WSJ
WSJ
Federal Reserve Bank of New York President William Dudley said the government will have to consider breaking up large financial institutions if Wall Street doesn’t stop excessive risk-taking and breaking the law.
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Currencies

Forex-Rigging Fines Could Hit $41 Billion Globally: Citi
Richard Partington – Bloomberg
The cost for banks to settle probes into allegations traders rigged foreign-exchange benchmarks could hit as much as $41 billion, Citigroup Inc. (C) analysts said.
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Euro Drops on Speculation ECB May Expand Stimulus
Rachel Evans – Bloomberg
The euro declined against the dollar amid speculation the European Central Bank will expand stimulus to bolster growth in the 18-nation bloc.
The shared currency weakened versus most of its 16 major peers as the ECB bought covered bonds for a second day and Reuters reported it is considering corporate-debt purchases. The greenback halted a three-day gain versus the yen as traders pushed back estimates for when the Federal Reserve will increase U.S. interest rates. The dollars of Australia and New Zealand rose a second day after Chinese growth beat forecasts.
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JPMorgan Gets $92 Million EU Fine in Swiss Franc Probes
Aoife White and Gaspard Sebag – Bloomberg
JPMorgan Chase & Co. (JPM) agreed to pay 72.2 million euros ($92 million) in fines to European Union regulators for attempting to rig the Swiss franc Libor rate and fixing spreads with rivals, the EU said today.
UBS AG (UBSN) was fined 12.7 million euros by the EU and Credit Suisse Group AG (CSGN) must pay 9.2 million euros for colluding with JPMorgan to set spreads on Swiss franc interest rate derivatives, the European Commission said. Royal Bank of Scotland Group Plc escaped fines in the two antitrust cases because it blew the whistle on the conduct.
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Ruble Trades Within Corridor for 2nd Day as Band Kept Unchanged
Vladimir Kuznetsov – Bloomberg
The ruble traded inside the Russian central bank’s currency corridor for a second day as oil rebounded, allowing the monetary authority to keep the target band unchanged for the first time in more than two weeks.
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Blackwell Global Chooses FlexTrade For White Label FX, Precious Metals Trading And TCA – Implements Global FX Solution With MaxxTrader, A Turnkey ASP Front-End For Trading Spot Currencies & Precious Metals, & FlexTCA
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Indexes & Index Products

Investors Seeing Korean Bottom Return to Leveraged ETFs
Sharon Cho – Bloomberg
Investors are returning to funds that amplify the share performance of South Korea’s biggest companies and exiting funds that reward declines after stock valuations fell to the lowest level in more than five years.
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Embedded Investors turn to junk ETFs amid sell-off
Tracy Alloway and Michael Mackenzie – New York – Financial Times
Investors are increasingly turning to exchange traded funds to dip in and out of junk bonds in times of market stress, according to new research from Fitch Ratings.
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VXEWZ Index at All-time High of 72.83 As Brazilian Election Nears
Matt Moran – www.cboeoptionshub.com
Today’s closing price was an all-time daily closing high of 72.83 for the CBOE Brazil ETF Volatility Index (VXEWZ), which reflects the implied volatility of the EWZ ETF.
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Gold

Russia Is Going On A Gold Reserve Buying Spree To Counteract Sanctions
Nigel Wilson – International Business Times (via Business Insider)
Russia has increased its gold holdings in recent months as its economy feels the heat from the unresolved crisis in eastern Ukraine.
Amid declining relations with the European Union and the United States that could hurt its substantial dollar and euro reserves, Russia has instead focused on expanding purchases of gold bullion and the Chinese yuan currency.
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Autilla breaks away from the LME for gold fix submission
Ian Walker – www.bulliondesk.com
Autilla has decided to break from its partnership with the London Metal Exchange in its bid for the administration of the gold fix, hoping to create a more transparent and reputable independent solution.
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Gold Assets in Top ETP Drop Most in a Year, Defying Rally
Glenys Sim and Debarati Roy – Bloomberg
Holdings in the SPDR Gold Trust, the biggest exchange-traded product backed by the metal, shrank by the most in 12 months as investors cut assets even after prices rebounded from the lowest level this year.
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LME to offer more electronic liquidity on monthly dates
Reuters
The London Metal Exchange (LME) plans to offer more liquidity on on its electronic platform to attract more investment from speculators and funds, a top official said on Monday.
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LME musters limited support ahead of steel contract launch
Maytaal Angel – Reuters
The London Metal Exchange (LME) has attracted little support so far for its planned steel derivatives, struggling to overcome limited appetite for steel contracts outside China, including for its own troubled billet future.
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