First Read

Monster Volumes: Jon Najarian Says Weeklys Are Powering Options Volumes
JohnLothianNews.com

US options volume reached its second highest level in 2013 but can it continue to grow in 2014?

Jon Najarian, co-founder of OptionMONSTER said the key drivers for the options industry are: weekly options, a strong economic recovery and continued demand for more options education. “The two biggest things driving volumes in options, or at least holding them, are weekly options,” said Najarian, who is also a regular contributor on the markets for CNBC. “As we get more weekly options, there is more turnover because of course they are an expiring option and you’re in an expiring option every single week. They are extremely popular because they let you drill down into the dates you want.”

Watch the video »

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CEO Spotlight on Jeffrey Sprecher: ICE’s Master of the Markets
STEVEN M. SEARS – Barrons.com
If Jeffrey Sprecher had built something that captured the public’s imagination, he might be as famous today as Steve Jobs. Like Apple’s late, visionary leader, Sprecher revolutionized a major industry, creating great wealth in the process. But because derivatives exchanges like the IntercontinentalExchange, or ICE, which he founded and runs, fascinate few people outside of the financial markets, Sprecher is largely unknown beyond Wall Street
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***** I think he just needs some snappy names for some of his products and services. How about iTrade, iSpec, iHedge, iSpread, iSwap, iButterfly and more importantly iDeliver.

***DA: Actually, he can’t have iSwap. ICAP already took that one.

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CBOE Holdings Reports Best Fourth-Quarter Results Ever
CBOE Holdings, Inc. today announced its best fourth-quarter results ever, as well as record revenue and earnings for the full-year 2013, marking the third consecutive year of record financial results. For the quarter, the company reported GAAP net income allocated to common stockholders of $45.6 million, or $0.52 per diluted share, compared with $39.2 million, or $0.45 per diluted share, in the fourth quarter of 2012.
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***** I have shared my opinion and that is all I have to say about that.

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Sponsored Content
NYSE Liffe US MSCI Index Futures off to a strong start in 2014
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CME Group to Launch Euro-Denominated Deliverable Interest Rate Swap Futures
CME Group, the world’s leading and most diverse derivatives marketplace, today announced it will launch Euro-Denominated Deliverable Interest Rate Swap Futures (Euro DSF) contracts on April 14, 2014, pending CFTC review.
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***** The CME has eDeliver.

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Clearing houses criticise push for more transparency
Philip Stafford – FT.com
Clearing houses have pushed back against plans by global securities regulators to force more transparency into the industry, arguing that their operations and market confidence could be damaged by publication of sensitive data.
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***** Don’t mess with the clearinghouses or you might find yourself novated.

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New Survey Suggests Regulatory Change is Slowing Growth Among Financial Services Firms
New research from SunGard has highlighted how regulatory change is second only to market volatility as an executive issue for financial services firms. In some cases it is even considered the primary strategic risk.
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***** It seems to really have slowed things at INTL FC Stone, enough to make the CEO resign.

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Gary DeWaal’s Bridging the Week: February 3 to 7 and February 10, 2014 (Position Limit Violations, CME Expanded Jurisdiction, AML Violations (Again))
Gary DeWaal and Associates LLC
Friday February 14 may be Valentine’s Day, but whether there will be any love this week in the financial services industry may depend on how certain important deadlines and hearings worldwide play out.
jlne.ws/1iFEJ7x

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When tweeting makes discipline easy for U.S. regulators
Reuters
U.S. financial advisers have nowhere to hide when they break the industry’s advertising rules while chatting publicly on social media sites such as Twitter and LinkedIn.
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***** Just play by the rules, or work to change them if they are not up to date.

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Tech map: The scramble for exchange deals
TheTally
Anna Irrera on February 7, 2014
With great technology comes great responsibility. And lots of outsourcing contracts. The technology divisions of the London Stock Exchange and Nasdaq OMX are in regular competition with each other and third-party providers to install their systems in exchanges around the world.
jlne.ws/1iFEJ7z

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At the cutting edge of exchange technology
Anna Irrera and Anish Puaar – Financial News
For modern stock exchange groups a strategic focus on technology is essential. Over the past decade, global financial markets have grown in complexity, with many firms now relying on speed to make money from trading.
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MarketsWiki

MarketsWiki Recent Updates

People

Matthew Hulsizer; Henry Paulson, Jr.; Ian Grieves; Tom Price; Christophe Mianné; Wayne Luthringshausen

Companies, Organizations and Groups

Qatar Financial Centre Regulatory Authority; Financial Industry Regulatory Authority

Products

HKFE Three-Month HIBOR

Statistics

46,984,122 pages viewed, 7,788 articles, 177,893 edits
MarketsWiki Statistics

Lead Stories

Commodities traders take aim at rule to limit speculation
Gregory Meyer in New York – FT.com
Some of the world’s biggest commodities traders will take a strong line against a new plan to limit market speculation, arguing it would derail the everyday business of buying and delivering shipments of grain, oil and metals.
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EU rules to light up derivatives markets set for shaky start
Reuters
New rules coming into force in Europe this week to shine more light on the $700 trillion derivatives markets will take years to produce a clearer picture of these complex products which were at the heart of the financial crisis.
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BOE Told About Foreign-Exchange Behavior, Trader Says
David Enrich – MoneyBeat – WSJ
Another shoe dropped Friday in the burgeoning scandal over banks’ possible manipulation of foreign-exchange markets, with news that market practitioners previously told Bank of England officials about the very conduct that’s now under scrutiny.
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Nasdaq opts for Nordic anonymity in boost for HFTs
Tim Cave – Financial News
Nasdaq OMX is to depart from an old Nordic tradition next month by introducing the option of trading anonymously on its European exchanges.
jlne.ws/1iFEHMR

Blythe Masters of JPMorgan Is Said to Decline Advisory Post
WILLIAM ALDEN – NYTimes.com
Blythe Masters, the head of the commodities business at JPMorgan Chase, has declined an invitation to join an advisory committee of the agency that regulates futures and swaps trading, people briefed on the matter said on Friday.
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Behind One Second of Trading Mayhem
Scott Patterson – MoneyBeat – WSJ
One second of trading on Dec. 5 provides a stark example of how frenetic trading can be in today’s high-octane computer-fueled stock market.
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Watchdog says euro bank failures needed to make health check credible: FT
Reuters
Some banks need to fail a sector-wide review of their financial health in order to make the exercise credible, the head of the euro zone’s new banking supervisor told the Financial Times.
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Banks address day and night working culture
Richard Partington – Financial News
The investment banking industry is known for its relentless hours, lost weekends and all-nighters to get a deal over the line. However this hard-working culture is coming under increased scrutiny as the industry grapples with its potential impact on individuals amid wider cultural change brought about in the wake of the financial crisis.
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Russia prepares crackdown on Bitcoin
Kathrin Hille in Moscow and Stephen Foley in New York – FT.com
Russian authorities are preparing to crack down on Bitcoin and have warned that those who use “cryptocurrencies” are breaking the law, as regulatory scrutiny of the virtual payment system intensifies around the world.
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Banks face forex legal battle
Madison Marriage – FT.com
Barclays, JPMorgan and five other major banks face a growing number of class action proceedings from US pension funds over potential losses from alleged foreign exchange manipulation.
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Regulatory

Top Regulator Calls for Review of How Markets Operate
Scott Patterson – MoneyBeat – WSJ
A top market overseer called for a sweeping review of computer-driven securities markets Thursday, saying regulators should focus on “points of failure” such as computerized links between stock exchanges and so-called mini-flash crashes in stocks.
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New Rules Leave Buyout Shops Out on Their Own
WSJ.com
Most private-equity firms have to raise funds by sending executives around the world to drum up interest from investors. For years, executives at Ridgemont Equity Partners never had to leave Charlotte, N.C., home to both the buyout firm and its lone backer: Bank of America Corp.
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ECB in driving seat in new euro zone bank supervision draft
Reuters
The European Central Bank presented draft rules on Friday for how it will supervise commercial banks in the 18-nation euro zone from November, putting itself firmly in the driving seat.
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Has banking reform become too complex?
Giles Williams – Financial News
I will get straight to the point. The “more and more of everything” approach to financial regulation is failing. It has not, and will not, achieve the desired outcomes for the wider economy, individual customers or investors.
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CFTC has ‘turned the corner’ on swap data mess, says O’Malia
Alexander Osipovich – Risk.net
The data on over-the-counter derivatives being collected by the US Commodity Futures Trading Commission (CFTC) is in a sorry state and riddled with inconsistencies that make it difficult for the agency to fulfil its oversight mission, according to commissioner Scott O’Malia. But the commission has belatedly recognised the problem and is taking steps to fix it, he adds.
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Prime brokers to escape AIFMD segregation burden, sources say
Luke Clancy – Risk.net
Prime brokers are said to be close to victory in their spat with depositories over a requirement in the Alternative Investment Fund Managers Directive (AIFMD) that they should segregate assets held on behalf of funds.
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The FCA appoints adviser on wholesale banking and investment management
The Financial Conduct Authority (FCA) has appointed James Kelly as an adviser in the wholesale banking and investment management division within Supervision.
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The Financial Conduct Authority publishes its findings on transition management
Following the Financial Conduct Authority’s (FCA) first review of the sector, firms have today been advised to ensure that their controls, oversight and governance arrangements meet our requirements in all areas.
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ESMA Tells Firms To Improve Their Selling Practices For Complex Financial Products
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Exchanges & Trading Facilities

LSE wins second Chinese member
Tim Cave – Financial News
The London Stock Exchange Group has bolstered its membership roster with a second China-based firm, as European bourses increasingly turn to Asia to expand their businesses.
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Toronto Stock Exchange, TSX Venture Exchange, Montreal Exchange, TMX Select And Alpha Closed For Family Day
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BOX Options Exchange Price Improvement Activity For January
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TSX Markets Top 20 Largest Consolidated Short Position Report – January 31, 2014
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TOM MTF Statistics Week 6, 2014
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Hedge Funds & Managed Futures

Ex-Goldman, Noble top traders to set up Asia hedge fund -source
Reuters
Two former top traders at Goldman Sachs and Noble Group are planning to form a hedge fund in Asia, a source with knowledge of the matter said, in another high profile launch in the region.
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Hedge Funds Clash Over Argentina Debt
WSJ.com
As Argentina struggles to stave off a second debt default in 13 years, two U.S. hedge funds are playing central but opposing roles in the country’s efforts to untangle itself from the previous crisis.
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Canada Pension Plan starts ‘in-house hedge fund’
Becky Pritchard – Financial News
Canada Pension Plan Investment Board is launching an “in-house hedge fund” in its London office with the hire of fund management veteran Dureka Carrasquillo from Tranberg Capital Management.
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John Laing-backed infrastructure fund to float
Andy Sharman – FT.com
A new environmental infrastructure fund backed by John Laing is to float in an attempt to capitalise on demand for alternative assets and a resurgence in the market for UK listings.
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The 20 greatest hedge fund managers
Financial News
LCH Investments has published its annual list of the world’s Greatest Money Managers in hedge funds
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CFTC Commitments Of Traders Reports Update
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Banks & Brokers

Seer Trading now available through FXCM
Seer Trading, a developer of automated financial trading and back-testing software, has today announced that it has completed an integration of its technology with FXCM, one of the world’s leading forex brokers.
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Yuan trading lifts Thomson Reuters FX trading volumes
Reuters
Daily spot foreign exchange trading volumes on Thomson Reuters dealing platforms rose 27 percent in January from a month earlier, helped by a rise in Chinese yuan trading, the company said on Friday.
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Barclays suffers sharp fall in 2013 underlying profits
Anne-Sylvaine Chassany and Martin Arnold in London – FT.com
The UK bank said pre-tax profit – adjusted for some exceptional items – fell by one-third to £5.2bn. That was well below the £7bn for 2012 and the consensus of market forecasts of £5.41bn collated by Barclays
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Let weak banks die, says eurozone super-regulator
Claire Jones, Sam Fleming and Alice Ross in Frankfurt – FT.com
The eurozone’s new chief banking regulator has warned that some of the region’s lenders have no future and should be allowed to die, heralding a far tougher approach to the supervision across the currency bloc.
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Squawker High-Touch Trading Venue Grows To 300+ Users, From 80 Sell Side Firms, Across 13 Countries – Traders’ Squawks Take Average Trade Size On Squawker To EUR386k
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Clearing & Settlement

Could SEF Aggregation be the Next Big Thing in Swaps?
Ivy Schmerken – Wall Street & Technology
With SEF trading becoming mandatory on Feb. 15 for certain interest rate swaps and continues to evolve, industry watchers are waiting to see if SEF aggregation will emerge to help the buy side connect with multiple SEFs.
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Indexes & Products

‘RBI should’ve more power over financial benchmarks’
Business Standard
A Reserve Bank of India (RBI) committee on financial benchmarks has asked for more powers for RBI including a tweak in the RBI Act so that the regulator has more role in fixing benchmarks. In its report released on Friday, the committee also recommended the computation of overnight Mumbai Interbank Bid Rate (Mibid) and Mumbai Interbank Offered Rate (Mibor) to be shifted to a method based on volume weighted average of trades.
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European ETPs weather January jitters
Sarah Krouse in New York – Financial News
European equity exchange-traded products emerged as winners in January as market fears triggered outflows from other sectors, according to flow data for the month from consultancy ETFGI.
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Moscow Exchange Updates Methodologies For Its Equity Indices
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Technology

Confluence Launches In Dublin To Capitalize On Growing Investment Industry Move To Data Automation – Ireland Also Viewed As Gateway To Global Funds Industry
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Enforcement

SEC Case Against Cohen Looms
WSJ.com
Now the Securities and Exchange Commission gets its shot at Steven A. Cohen. The SEC’s civil case against the hedge-fund billionaire has been delayed while prosecutors tried two senior employees at his firm, SAC Capital Advisors LP. The agency alleges Mr. Cohen failed to supervise Michael Steinberg and Mathew Martoma and prevent them from trading on inside information.
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In the SAC Saga, It’s Hard to Chase a Shadow
MATTHEW GOLDSTEIN and ALEXANDRA STEVENSON – NYTimes.com
“How is the big guy?” That was the question Phillipp Villhauer, the head of trading at SAC Capital Advisors, asked his assistant in an email as he headed to a meeting in New York on July 21, 2008. It was also the question hanging in the air of Room 110 in the federal courthouse in Manhattan over the last five weeks.
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Rajaratnam’s brother seeks dismissal of insider trading charges
Reuters
Rengan Rajaratnam, the younger brother of imprisoned hedge fund manager Raj Rajaratnam, urged a U.S. judge on Friday to dismiss insider trading charges leveled against him last year.
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Wiener Börse AG revokes admission of A-TEC shares to trading on the regulated market – following a review commissioned by the FMA
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Environmental & Energy


Redford: Alberta Won’t Play Emissions Chicken on Keystone
Bloomberg
Alberta Premier Alison Redford, who has lobbied the U.S. to approve the Keystone XL pipeline, says her oil-rich Canadian province won’t toughen rules to cut carbon emissions from crude producers until the U.S. takes similar steps.
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Keystone Consultant Disclosed Alleged Conflict After Win
Bloomberg
The consulting firm that wrote a largely favorable environmental review of the proposed Keystone XL pipeline didn’t disclose an alleged conflict of interest to the State Department until after it won the contract, according to newly released documents.
jlne.ws/1iMrVLR

Power Exchanges APX, Belpex, EPEX SPOT, Nord Pool Spot And OMIE Agree On The European Cross-Border Intraday Solution
jlne.ws/1iFELMC

Asia-Pacific

Chinese Official Made Job Plea to JPMorgan Chase Chief
JESSICA SILVER-GREENBERG and BEN PROTESS – NYTimes.com
The executive suites of JPMorgan Chase in Midtown Manhattan may seem a world away from the politically connected Chinese job applicants who landed on the bank’s payroll.
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MAS and SGX propose measures to strengthen the securities market
The Monetary Authority of Singapore (MAS) and Singapore Exchange (SGX) today released a joint consultation paper setting out proposals to strengthen the securities market in Singapore.
jlne.ws/1iFELMI

Japan’s trading houses look to new markets
Ben McLannahan in Tokyo – FT.com
In the coastal town of Kushimoto, on the southernmost tip of Japan’s main island of Honshu, Mitsubishi Corp is rearing tuna.
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Hong Kong’s Securities And Futures Commission Bans Stephen Yenn Man Han For life
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Frontier Markets

Investors in Indian commodity exchanges jump ship as trade sinks
Moneycontrol.com
The Indian Commodity Exchange (ICEX) is set to fold due to plummetting trading volume as a result of the government’s failure to liberalise and investors retreat from futures markets after a major financial scandal at another exchange last year.
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Southeast Asian markets confound EM sceptics
Josh Noble in Hong Kong – FT.com
If the “Fragile Five” were a boy band, then at least one of its founding members appears to be going solo: Indonesia.
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How Fragile are Emerging Markets?
Kenneth Rogoff – Project Syndicate
Emerging-market equities and exchange rates are again under severe downward pressure, but are the underlying economies really as fragile as global traders seem to fear? The short answer, for a few, is probably “yes,” but for most, “not just yet.”
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Africa’s moment
Ryan McCarthy | Counterparties
It’s become quite popular in the last few years to declare that Africa will be the next great economic success story. Two years after an Economist cover story declared that Africa is rising, the continent’s still putting up strong growth.
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Invitation To The Ordinary Annual General Assembly Meeting Dubai Financial Market Company (Public Joint Stock Company)
jlne.ws/1iFEKZb

Tehran Stock Exchange Weekly Digest – 5 February 2014
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