John Lothian Newsletter: Dealmaking saga over GFI nears conclusion; China Short Sellers Shun Stock Link With Zero Trade on Debut; SEC plans to level playing field for newer ETF firms

Mar 2, 2015

First Read

NY Financial Writers Elect Burne, Move ‘Follies’
By Jack O’Dwyer
Katy Burne, a U.K. J grad who reports for the Wall Street Journal, is 2015 president of the New York Financial Writers Assn. which, after many years, is switching its “Follies” show from the Marriott Marquis to the Hilton. Burne, who has covered bonds and derivatives for five years for the WSJ and Dow Jones newswires, has been in the cast of the “Financial Follies” since 2010. Previously managing editor of Derivatives Week, she has a post-grad diploma in magazine journalism from Harlow Journalism Center, U.K., and a BA from University of Newcastle-on-Tyne, U.K.
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***** Congratulations to Katy Burne on being elected president of the NYWA. May her term not be all folly.

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An Evening with G.H. Financials and Rick Santelli
Our friends at G.H. Financials are hosting a networking event and Q&A with CNBC’s Rick Santelli on March 18 from 4:30-7pm at Seven Lions on Michigan Ave. in Chicago. Those wishing to attend should contact Stephanie Young at stephanie.young@ghfinancials.com

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The Clayton Rule on Speed
Streetwise Professor
I have written often of the Clayton Rule of Manipulation, named after a cotton broker who, in testimony before Congress, uttered these wise words:
“The word ‘manipulation’ . . . in its use is so broad as to include any operation of the cotton market that does not suit the gentleman who is speaking at the moment.”
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***** The use of the word “gentleman” is very questionable.

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‘Live long and prosper’ with these logical ‘Spock tips’ from the Vulcan stock market
By Brett Arends, MarketWatch
There are no stock-market bubbles on the planet Vulcan. There are no financial panics or day traders, either. There are no hedge funds. There are no subprime crises. Bankers do not expect a bailout if they lend money to people who cannot afford to pay it back.
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***** I believe the planet Vulcan was destroyed in the last Star Trek movie. So there is not a lot of everything there.

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Blackstone Group CEO Collected $690 Million In 2014; Stephen Schwarzman’s payout represents a nearly 50% increase from 2013
By Ryan Dezember
Blackstone Group LP co-founder and Chief Executive Stephen Schwarzman collected about $690 million in dividends, compensation and fund payouts for 2014, according to a Friday regulatory filing, the highest annual payout ever notched by a founder of a publicly traded private-equity firm.
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***** So this is a red flag. It is a red flag for stockholders rights.

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***DA: OK, but stockholders also have the right to not touch certain stocks with a ten-foot pole.

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Building Bricks: T-Bricks Could Be New Cornerstone For Orc
JohnLothianNews.com

Jonas Hansbo and his team left Orc in 2006 to focus on his own brand of trading and financial technology with a startup called TBricks. But Hansbo and his colleagues were brought back to the mothership in January when when Orc purchased TBricks. Now, Hansbo said the two firms will bring their respective strengths together.
“Orc has been evolving since we left it, and very much focused on reinventing their electronic trading platform for connectivity and electronic execution,” Hansbo said. “So what we thought would be a very interesting fit for the two companies was to make a combination of our offer in trading together with Orc’s global reach.”
Watch the video »
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MarketsWiki

MarketsWiki Page of the Day
Jonas Hansbo

MarketsWiki Recent Updates

People

Jonas Hansbo; Robert J. Shiller; Robert F. Engle; Andrew Donohue; Raghuram G. Rajan; Harvey Goldschmid; Kevin Foley; Gary Barnett; Andrew Coyne; Martin Pluves

Companies, Organizations and Groups

London Stock Exchange Group; Chicago Board Options Exchange; Singapore Exchange

Statistics

59,337,446 pages viewed, 8,155 articles, 190,037 edits
MarketsWiki Statistics

Lead Stories

Dealmaking saga over GFI nears conclusion
Philip Stafford, FT
The six-month saga over interdealer GFI appears all but over but there are many in the market who think the dealmaking isn’t done yet.
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China Short Sellers Shun Stock Link With Zero Trade on Debut
by Kana Nishizawa, Eduard Gismatullin, Bloomberg
Hong Kong’s stock exchange says its new platform for bearish bets through the city’s bourse link with Shanghai is running smoothly. There’s just one thing missing: short sellers.
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Exclusive: SEC plans to level playing field for newer ETF firms
By Jessica Toonkel and Ashley Lau, Reuters
The U.S. Securities and Exchange Commission may strip Vanguard Group, BlackRock Inc and State Street Corp, the oldest and biggest providers of exchange-traded funds, of an advantage they hold over newer rivals in how they assemble the shares of their funds, said sources familiar with the SEC.
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Institutions Pour Cash Into Bond ETFs; Move to exchange-traded funds comes as big investors deal with bond-trading challenges
By Katy Burne
Institutions are piling into exchange-traded bond funds at the fastest pace on record, driven by forces reshaping the increasingly illiquid corporate-debt market and their desire to stay nimble ahead of expected interest-rate moves.
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A Two-Man Race Is On to Succeed Buffett at Berkshire; Both fit Buffett’s description of right CEO for Berkshire
By Anupreeta Das
Warren Buffett once wrote to shareholders of Berkshire Hathaway Inc. that if he, his partner Charles Munger and his deputy Ajit Jain were ever on a sinking boat and only one of them could be saved, “Swim to Ajit.”
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Economic Forecasting With the Chicago Bears; Chicago Business Barometer’s Weak Reading Holds Troubling Implications
By Spencer Jakab
An ill wind buffeted economic forecasters on Friday. It came not from a downward revision to fourth-quarter U.S. growth but from the Windy City. The Chicago Business Barometer, also known as the Chicago PMI, fell sharply and unexpectedly to its lowest level since July 2009, the month after the recession ended. The reading of 45.8—anything below 50 is considered a sign of contraction—compared with a forecast of 58 in a Wall Street Journal survey.
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European Banks’ Reciprocity Draws Scrutiny; Banks give work to competitors partly based on how much business they receive in return
By David Enrich and Shayndi Raice
When Deutsche Bank AG hired 25 banks last summer to help it raise about $9 billion of new capital, it made some unusual selections. In addition to a handful of Wall Street stalwarts, three Italian banks made the cut. Japan’s Nomura Holdings Inc. was on the list. So was a large Austrian bank.
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CFTC’s Massad on End-Users
by Stephen M. Quinlivan, JD Supra
CFTC Chair Timothy G. Massad delivered a speech on the importance of providing flexibility in the CFTC’s regulations to accommodate hedging by commercial end-users of derivatives. Mr. Massad highlighted the following:
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SEC Halts Ponzi-Like Scheme by Purported Venture Capital Fund Manager in Buffalo
SEC
The Securities and Exchange Commission today charged a purported venture capital fund manager in Buffalo, N.Y., with fraudulently using money from three investment funds to pay fictitious returns to investors in a different fund. The SEC obtained an emergency asset freeze to halt the Ponzi-like scheme.
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Biggest Global Banks Go to Pieces Under Pressure From Regulators
By Michael J. Moore, Yalman Onaran and Nicholas Comfort, Bloomberg
Global regulators have issued dozens of rules aimed at making the biggest banks safer. That’s leading to another result some wanted: making them shrink. Lenders, unable to use borrowed money to fund as much of their business as they once did, have cut profitability targets and are weighing more drastic actions to meet them.
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Regulatory

Global Regulations Creating Unintended Challenges
MarketWatch
In the aftermath of the financial crisis, policymakers around the world introduced regulations aimed at strengthening and safeguarding financial markets. As these measures are rolled out and implemented across jurisdictions, challenges continue to emerge.
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Rangers shows that LSE must raise its regulatory game
Kate Burgess, FT
Poking fun at the governance of Rangers is becoming less fun. It is going beyond a joke.
When the teachers and the governors of a school keep quitting and its head says it is ungovernable, it is time for the authorities to step in.
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Self-Regulatory Organization (SRO) Rulemaking and National Market System (NMS) Plans
SEC

  • CBOE: Order Granting Accelerated Approval of a Proposed Rule Change to Amend Exchange Rules Related to Order Tickets (“Release No. 34-74389; File No. SR-CBOE-2015-011; February 26, 2015”)
  • MSRB: Notice of Filing of Amendment No. 1 and Amendment No. 2 and Order Granting Accelerated Approval of a Proposed Rule Change Consisting of Proposed Amendments
  • MSRB Rules G-1, on Separately Identifiable Department or Division of a Bank; G-2, on Standards of Professional Qualification; G-3, on Professional Qualification Requirements; and D-13, on Municipal Advisory Activities (Release No. 34-74384; File No. SR-MSRB-2014-08; February 26, 2015)
  • NMS: Notice of Designation of a Longer Period for Commission Action on the Proposed National Market System Plan to Implement a Tick Size Pilot Program On a One-Year Pilot Basis by BATS Exchange, Inc., BATS Y-Exchange, Inc., Chicago Stock Exchange, Inc., EDGA Exchange, Inc., EDGX Exchange, Inc., Financial Industry Regulatory Authority, Inc., NASDAQ OMX BX, Inc., NASDAQ OMX PHLX LLC, The Nasdaq Stock Market LLC, New York Stock Exchange LLC, NYSE MKT LLC, and NYSE Arca, Inc. (Release No. 34-74388; File No. 4-657; February 26, 2015)
  • OCC: Notice of No Objection to Advance Notice Filing, as Modified by Amendment No. 1, Concerning a Proposed Capital Plan for Raising Additional Capital That Would Support The Options Clearing Corporation’s Function as a Systemically Important Financial Market Utility (Release No. 34-74387; File No. SR-OCC-2014-813; February 26, 2015)
    jlne.ws/1eCTnOv

    Other Commission Orders, Notices, and Information
    SEC
    Bloomberg STP LLC; Notice of Filing of Application for Exemption from Registration as a Clearing Agency (Release No. 34-74394; File No. 600-33; February 27, 2015); see also Form CA-1: Application for Registration or for Exemption From Registration as a Clearing Agency and for Amendment to Registration
    jlne.ws/1eCTnOv

    Fee Rate Advisory #4 for Fiscal Year 2015
    SEC
    Pursuant to Section 31(j)(2) of the Securities Exchange Act of 1934, the Commission has determined that a mid-year adjustment to the Section 31 fee rate for fiscal year 2015 is not required. These adjustments do not directly affect the amount of funding available to the SEC.
    jlne.ws/1vStu5W

    Exchanges & Trading Facilities

    LME provides update on warehouse reform package
    LME
    Responses to latest market consultations
    Discussion paper issued regarding final two elements of reform package and further possible structural reforms
    Aluminium premium contracts and new ferrous products to launch 26 October 2015
    Fresh consultation on increasing load-out obligations under LILO for warehouses with structural queues
    COT report enhancements to be considered
    The London Metal Exchange (LME) today published its responses to the legal and logistical consultations launched in November 2014 regarding its physical delivery network. Also issued was a discussion paper including the final two elements of the LME’s warehouse reform package and further possible structural reforms. In addition, a new proposal was put forward to increase the load-out rate of metal at warehouses affected by structural queues, by adjusting one of the parameters of the Linked Load-in / Load-out rule (LILO).
    jlne.ws/1zz3XKl

    IEX hires ex-NYSE regulator as it readies to be a stock exchange
    By Herbert Lash, Reuters
    IEX Group, the start-up stock-trading venue featured in Michael Lewis’ book “Flash Boys,” hired a former New York Stock Exchange official as chief regulatory officer, the last piece of its senior management team as it moves to become an exchange later this year, the company said on Monday.
    Claudia Crowley, a long-time executive with NYSE and affiliated companies, has been working as a consultant for IEX as the firm writes the rules and prepares its regulatory filing for the new exchange that it hopes will be operational by the third quarter.
    jlne.ws/1M3Di11

    CME Group Chief Financial Officer John Pietrowicz to Present at Raymond James Conference March 2
    CME Group
    CME Group announced today that Chief Financial Officer John Pietrowicz will present at the Raymond James 36th Annual Institutional Investors Conference, in Orlando, Florida, on Monday, March 2, at 2:15 p.m. (Eastern Time).
    jlne.ws/1BxxCJz

    CME Group Notices
    CME Group

  • CME Clearing Notice: Week of Monday, February 23, 2015
  • NOTICE OF DISCIPLINARY ACTION, Port 22 LLC, PENALTY: In accordance with the settlement offer, the Panel ordered Port 22 to pay a fine of $55,000.
  • NOTICE OF DISCIPLINARY ACTION, Steven Daniel Peake, PENALTY: In accordance with the settlement offer, the Panel ordered Peake to pay a fine of $15,000. The Panel also suspended Peake from accessing any CME Group Inc. trading floor, and from direct access to all electronic trading and clearing platforms owned or controlled by CME Group for 20 business days, beginning on February 27, 2015, and continuing through and including March 26, 2015.
  • NOTICE OF DISCIPLINARY ACTION, Jose Gamboa, PENALTY: In accordance with the settlement offer, the Panel ordered Gamboa to pay a fine in the amount of $10,000, and to have his access to all CME Group trading floors and direct access to all electronic trading and clearing platforms owned or controlled by CME Group suspended for a period of five business days. The suspension shall run from February 27, 2015, through March 5, 2015, inclusively.
  • Amendments to CME Rule 588.H (Globex Non-Reviewable Trading Ranges) for the E-mini CNX Nifty Index Futures and E-micro CNX Nifty Index Futures Contracts
  • Amendments to CBOT Rule 588.H (Globex Non-Reviewable Trading Ranges) for the 2 -Year US Dollar Interest Rate Swap Futures and 2-Year Euro Interest Rate Swap Futures Contract
  • REMINDER: European Style Weekly Options on Index Futures Contracts? Expirations for Good Friday Holiday ? Friday, April 3, 2015
  • Nikkei Stock Average Futures Price Limit Offset Levels Revised Effective for Trade Date March 2, 2015
  • CNX Nifty Index Futures Price Limits Effective for March 2015
  • Restricted Contract Markets for CME Rule 515 (Registration and Identification of Broker Associations”)
  • 27 Feb 2015
  • Restricted Contract Markets for CME Rule 552 (“Dual Trading Restrictions”)
    jlne.ws/1yiRpvt

    The Spanish Stock Exchange Traded EUR80.9 Bn. In February, Up 59 % Year On Year – The Best Month Of February In The Last Seven Years
    MondoVisione
    Accumulated volumes in January and February reached EUR174.7 billion, up 39%
    The trading volume in the Warrants and Certificates market was up 91% in February.
    The trading volume in the Derivatives market in February grew 3% from January.
    Corporate Debt trading reached EUR54.9 billion in February, down 61.8% year on year, though the trading to maturity grows.
    The equity trading volume on the Spanish Stock Exchange in February was EUR80.9 billion, up 59% year on year, representing the best month of February since 2008. Accumulated volumes in the first two months of 2015 have reached EUR147.7 billion, up 39% year on year.
    jlne.ws/18gyFkT

    CBOE to expand VIX options trading hours from Monday
    By Saqib Iqbal Ahmed, Reuters
    CBOE Holdings Inc’s Chicago Board Options Exchange, the largest U.S. stock-options market, is set to extend trading hours for two of its most heavily traded index options starting Monday.
    jlne.ws/1Ea0R5J

    Hedge Funds & Managed Futures

    Speculator Mania for Danish Krone Makes No Sense, OECD Says
    by Peter Levring, Bloomberg
    The obsession with holding kroner that has gripped speculators since mid-January is hard to explain given the state of Denmark’s economy.
    jlne.ws/1M3D0aw

    Buffett letter sparks succession talk
    Stephen Foley in New York, FT
    Warren Buffett’s golden anniversary letter to Berkshire Hathaway shareholders prompted a new round of speculation about who the company’s board might have lined up to succeed him as chief executive.
    jlne.ws/1E9Pxqd

    Vanguard tops mutual fund survey with $291bn in new business
    David Oakley, Investment Correspondent, FT
    Vanguard was the world’s most popular investment group last year as it attracted more new business than any other asset manager in the $29tn global mutual fund industry.
    jlne.ws/1E9eJyp

    How to Invest for Market Volatility
    Financial Planning
    Are markets more volatile now? It depends on the market and the asset class in question, but in general the answer is yes — at least among equities and diversifier asset classes such as real estate and commodities, as measured by standard deviation. On the other hand, fixed income has seen a slight decrease in volatility overall since 2008.
    jlne.ws/1M1uYNm

    Do Cryptocurrencies Such as Bitcoin Have a Future?
    WSJ
    Despite the mystery, the whiff of scandal, and general public unfamiliarity with the concept, somebody out there is buying, and selling, not just bitcoin but dozens of other cryptocurrencies as well. The total market capitalization for these unregulated electronic forms of payment was roughly $4.04 billion as of mid-February, according to coinmarketcap.com, a website that tracks trading in alternative currencies. More than 500 altcoins, as they are also known, were represented on the site recently.
    jlne.ws/1M1vbQB

    Leon Black of Apollo Global Got $331 Million Payout in 2014
    By WILLIAM ALDEN, NY Times
    Only in the rarefied world of private equity would an annual payout of more than $300 million for a top executive constitute a decline from the previous year.
    jlne.ws/1F0VHHB

    Banks & Brokers

    R.J. O’Brien Promotes Jamal Oulhadj To COO Of RJO Holdings Corp.
    R.J. O’Brien
    Chicago-based R.J. O’Brien & Associates (RJO), the oldest and largest independent futures brokerage and clearing firm in the United States, today announced that its Senior Managing Director and Chief Risk Officer Jamal Oulhadj has been promoted to Chief Operating Officer of the firm’s holding company, RJO Holdings Corp. Oulhadj, who turns 50 tomorrow, will have ultimate responsibility for the firm’s global risk, operations, credit and information technology (IT) functions.
    jlne.ws/1vSJOUp

    E*Trade to cut debt by $340 million in restructuring
    Reuters
    E*Trade, the discount broker and bank that almost collapsed during the financial crisis, said Monday it is retiring $800 million of debt due in 2019 and issuing $460 million of new eight-year notes at a lower interest rate.
    jlne.ws/1wDFjha

    Warren Buffett Rails Against Investment Bankers
    By DAVID GELLES, NY Times
    Warren E. Buffett is regarded as one of the world’s great deal makers, orchestrating a series of big acquisitions that have turned Berkshire Hathaway into one of the world’s largest conglomerates.
    jlne.ws/1B1wmwv

    Barclays CEO Set to Target Investment Bank in Profit Push
    by Stephen Morris, Bloomberg
    Barclays Plc’s Antony Jenkins, in a push to revive earnings, has set his eyes on on the lender’s worst-performing unit: its investment bank.
    jlne.ws/1BxuHjZ

    Citigroup prepares for ‘stress test’ results
    Ben McLannahan and Tom Braithwaite in New York, FT
    Three top Citigroup executives are facing a critical hurdle this month, according to senior figures at the bank, as it prepares for the results of a “stress test” by the US Federal Reserve.
    jlne.ws/1B1iVMY

    MOVES-JPMorgan names global head for investment services to hedge funds -WSJ
    Reuters
    JPMorgan Chase & Co has appointed James Ferguson as head of its global alternative investment services business, the Wall Street Journal reported on Friday, citing a memo seen by MoneyBeat.
    jlne.ws/1GGX3si

    Clearing & Settlement

    Sri Lanka stock exchange to set up a Central Counterparty Clearing system
    Colombo Page
    Sri Lanka’s Colombo Stock Exchange (CSE) has signed a contract to set up a Central Counterparty Clearing (CCP) system as a measure to safeguard its transactions.
    jlne.ws/1aIzR2z

    LedgerX Selects Ancoa to Deliver First Real-Time Market Surveillance Capability for Bitcoin Options Trading
    Globe Newswire
    Ancoa and LedgerX today announced that LedgerX has selected Ancoa to provide the first real-time market and trade surveillance platform for monitoring bitcoin options trading on LedgerX. Using the Ancoa platform, LedgerX will be able to instantaneously identify and investigate manipulative behaviors and suspicious trading practices on its own exchange, across other derivatives exchanges and across the multitude of bitcoin spot markets.
    jlne.ws/1aIA1qA

    Indexes & Products

    Are Index Funds Really Better Than Actively Managed?
    WSJ
    Index funds or actively managed funds? There’s a bright line dividing these two fundamentally different approaches to investing. Numerous studies have shown that index funds, with their low costs and ability to closely mimic the returns of markets both broad and narrow, steadily outperform the returns of most actively managed funds.
    jlne.ws/1M1uVBi

    Xignite to Distribute MSCI’s Global Equity Indexes via API
    ProgrammableWeb
    Financial market data provider Xignite has inked a deal with MSCI to distribute its MSCI Global Equity Indexes through Xignite’s cloud API platform. MSCI is one of the largest providers of indexes that are used by investors and fund managers to track financial markets and create performance benchmarks. The MSCI Global Equity Indexes are some of the most widely used, and according to MSCI, they serve as the basis for more than 650 exchange traded funds around the world.
    jlne.ws/1M1v0VD

    STOXX LIMITED NAMED “MOST INNOVATIVE INDEX PROVIDER” BY ETFEXPRESS
    STOXX
    STOXX Limited, the market-moving provider of innovative, tradable and global index concepts, today announced that it has been named “Most Innovative Index Provider” in 2015 by ETFExpress. STOXX has won this award in 2010, 2011, 2012 and 2013. Award winners are chosen based on votes cast by readers of ETFExpress. The newsletter’s readership consists of index and exchange-traded fund (ETF) users.
    jlne.ws/1Ex6H1m

    Technology

    CoinSpark Open Sources a PayPal-Like Messaging Feature for Bitcoin
    CoinTelegraph
    When sending payments, popular services PayPal and SWIFT allow users to attach private messages that add an explanation about the payment. Before now, bitcoin services haven’t supported this feature. However, CoinSpark just launched a tool that works that accomplishes this for bitcoin transactions. They open sourced this tool so that developers can implement the feature in their own applications.
    jlne.ws/1aIzYej

    Bitcoin Investment Trust Gets FINRA Green Light to Trade
    Yessi Bello Perez, Coindesk
    The Bitcoin Investment Trust (BIT) is set to become the first publicly traded bitcoin fund, having received approval from FINRA, the largest independent securities regulator in the US.
    jlne.ws/1E9ekfp

    Barclays and Techstars Gear Up for Fintech Accelerator
    Venture Capital Dispatch – WSJ
    Is there amped-up demand among New York’s bankers to jump into startup land? Jenny Fielding, a managing director at startup accelerator Techstars, thinks so. Ms. Fielding told Venture Capital Dispatch she is gearing up to run Facebook FB -1.82% group. Within a few hours she said she received 40 resumes.
    jlne.ws/1M1v6wc

    Fintech Beginning: Google Expands into Fintech Market Via OS Market Share
    BusinessKorea
    Google is expanding into the financial technology (fintech) market, starting with mobile payments, and the local IT industry is paying a lot of attention to its move. Google’s choice of Android, which accounts for nearly 90 percent of the local operating system (OS) market, as a basis of its mobile payment service will have a profound effect on the local fintech market. The fintech market has just started with simple payment services. If the search engine giant adopts a strategy to pre-install Google Play at the same time, which contributes to Android’s growing dominance, it will also affect the market greatly.
    jlne.ws/1M1v7jO

    Boston Consulting Group: Yes Europe Needs a Capital Markets Union
    BCG
    Crowdfund Insider reported last week on the push within the EU to further capital markets integration in light of the daunting challenges of a fragmented regulatory regime and cross border idiosyncrasies. The European Commission was envisioned as a seamless market facilitating continent wide economic amalgamation. The reality has been a bit of a challenge as national political motivations and cultural disparities has often acted as an invisible barrier to market efficacy. The European Commission has published a “green paper” on building a functioning capital markets union and we believe crowdfunding and new forms of finance can act as a catalyst in achieving this goal.
    jlne.ws/1M1v9bz

    J.P. Morgan Goes Hunting for Disruptors and Bitcoin Experts
    By John Carney, WSJ
    Attention disruptors: You might not be interested in J.P. Morgan Chase JPM -0.49% but it is interested in you. A recent job posting on its website highlighted the challenge facing Wall Street firms looking for cutting-edge technologists: They need people who aren’t eager to work for them.
    jlne.ws/1wDHpgV

    Enforcement

    SEC Continues to Investigate Contractual Impediments to Whistleblower Complaints
    The National Law Review
    As Rachel Louise Ensign reported earlier this week in the Wall Street Journal (subscription required), the Securities Exchange Commission (“SEC”) continues to probe obstacles to corporate employees blowing the whistle. This time, according to Ms. Ensign, the agency has requested that companies “turn over every nondisclosure agreement, confidentiality agreement, severance agreement, and settlement agreement they entered into with employees since Dodd-Frank went into effect, as well as documents related to corporate training on confidentiality.”
    jlne.ws/1aIBflw

    CHAZON QTA QUANTITATIVE TRADING ARTISTS LLC
    NFA
    On February 27, 2015, a designated Hearing Panel issued a Decision in this case after a hearing was held. The Panel found that the respondents willfully violated NFA Compliance Rule 2-5 by refusing to provide NFA with requested bank statements, a serious violation. As a result of its findings, the Panel permanently barred Chazon from NFA membership and from acting as a principal of an NFA Member, and Fejokwu from NFA membership, associate membership and from acting as a principal of an NFA Member.
    jlne.ws/1M1tenp

    SEC files fraud charges against Wings Network – Business
    The Boston Globe
    In a complaint filed in Boston federal court and unsealed Thursday, the Securities and Exchange Commission said foreign companies operating as Wings Network claimed to offer digital and mobile technology for customers. The enterprise allegedly sold “membership packs” that promised guaranteed monthly returns in exchange for recruiting friends and family to join.
    jlne.ws/1aIBc9s

    Japanese ex-broker in Olympus fraud scandal settles with SEC
    The Japan Times
    The U.S. Securities and Exchange Commission said it has reached a settlement with a former Japanese stockbroker over his role in the massive accounting fraud at Olympus Corp.
    jlne.ws/1aIBf54

    Conrad Black Banned From Certain Corporate Activities in Canada; Former media baron may not act as a director or officer in a company in Ontario
    By Ben Dummett, WSJ
    Canada’s biggest securities regulator on Friday banned former media baron Conrad Black from acting as a director or officer of any public or private company that issues securities in the country’s largest province, but ruled that Mr. Black can trade securities.
    jlne.ws/1BPztes

    Environmental & Energy

    High energy prices unlikely to affect trade, study finds
    By Will Nichols – BusinessGreen
    A large rise in energy prices would barely affect exports from European industry and the balance of trade, academics have said.
    jlne.ws/1DIFLKi

    California Offset Market Slow to Ramp Up
    By Allie Goldstein – Ecosystem Marketplace
    There is some truth to the insider joke that the cap-and-trade aspect of California’s climate policy gets 90% of the attention but provides 20% of the benefit.
    jlne.ws/1Bwue1E

    UK’s appeal to clean energy investors slumps further
    By Will Nichols – BusinessGreen
    The UK’s appeal to clean energy investors has continued to be eroded, falling to its lowest level in 12 years, according to consultancy giant EY.
    jlne.ws/17JFOu9

    Asia-Pacific

    The High Price of China’s Smoggy Skies; A documentary on air pollution hopes to spur action
    by Malcolm Scott, Bloomberg
    Rachel Carson’s 1962 take on the environmental damage wrought by the U.S. chemical industry in The Silent Spring is credited with spurring a nationwide ban on the use of DDT in agriculture. Al Gore’s 2006 documentary, An Inconvenient Truth, and his 1,000-plus live slideshow presentations brought global warming to the masses. Now, China has Under the Dome.
    jlne.ws/1M3D0Hn

    Japan Exchange Group: Trading Overview In February 2015
    MondoVisione
    jlne.ws/1wJIoXs

    Kuroda approaching limit on JGB buying, says ex-BOJ official
    The Japan Times
    Speeding up the Bank of Japan’s purchases of Japanese government bonds would risk further distorting the world’s second-biggest sovereign debt market, said Yuri Okina, vice chairman at Japan Research Institute.
    jlne.ws/1M1w0Jc

    Its official: Hong Kong’s top leaders say nobody should buy homes
    South China Morning Post
    Under normal interest rate conditions few Hongkongers could afford loans at current flat prices
    jlne.ws/1aIBihq

    Chinese financial markets uninspired by rate cut, await more steps
    Reuters
    China’s bourses and money markets reacted half-heartedly to a reduction in China’s interest rate over the weekend, as analysts said more aggressive easing measures may be needed to shore up investor confidence.
    jlne.ws/1aIBj4L

    Frontier Markets

    FTIL opposes MCA’s petition to CLB for removal of FTIL board in court; The board of FTIL is also currently against the draft order of MCA to merge NSEL with FTIL
    Business Standard
    Financial Technologies held a board meeting on Sunday and decided to oppose Ministry of Corporate Affair’s petition to the Company Law Board to remove FTIL board. FTIL also plans to approach Bombay High Court for the same, the company said in a filing on BSE.
    jlne.ws/1M3D4qy

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...

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