Congratulations to our survey prizewinner
Last week we completed our annual survey, or rather our first annual survey in three years. We are grateful to all those who took the 30 seconds (or so) to answer the questions. Thanks for helping us out! The prize, which was a choice between an iPad Mini or a pair of Bose Quiet Comfort Noise-Canceling Headphones, went to Lynne Howard-Reed, director of marketing at the CBOE, who was chosen in a random drawing among all those who completed the survey. (She chose the iPad Mini.) She said it was the best survey she had ever taken – I’m guessing that is because it consisted of only 5 questions, or maybe she hasn’t taken any other surveys. Anyway, congratulations Lynne!
Gary DeWaal to Join Katten Muchin as Special Counsel in New York
Matthew Leising – Bloomberg
Gary DeWaal, who served as general counsel to futures brokerage Newedge Group SA, is joining Katten Muchin Rosenman LLP as special counsel in the firm’s New York office.
***JM: Gary made a mention of this yesterday in his “Bridging the Week” column; but it’s worth an independent mention. Nice going, Katten!
NASDAQ OMX NLX Expands Board of Directors
NASDAQ OMX NLX, the London derivatives market for trading a range of both short-term interest rate (STIRs) and long-term interest rate (LTIRs) euro- and sterling-denominated listed derivative products, announces the appointment of Anthony Belchambers, Rod Banus and Andrew Chart as Non-Executive Directors of NLX.
***JM: “CME Group has how many? We… we need more!!!” Congratulations to Mssrs. Belchambers, Banus and Chart.
12th Annual Midwest Open Your Heart to the Children Benefit
Hedge Funds Care
The Midwest financial communities will unite at the 12th Annual Midwest “Open Your Heart to the Children” Benefit on Thursday, May 8 at the JW Marriott Chicago. A highlight of the Chicago social calendar, the Benefit brings together the hedge fund, proprietary trading, private equity and venture capital communities to provide direct support for local charities that prevent and treat child abuse.
Exchanges: The New Tech Providers
Tom McCabe – TabbFORUM
To diversify and stabilize revenue streams, exchanges are venturing into technology-focused businesses that shift away from traditional trading and transaction-based services, becoming direct competition for established technology vendors and market data providers.
***JM: In order to provide a marketplace, one must build the marketplace.
U of C program emphasizes trading industry
Amina Elahi – Blue Sky Innovation
Forget sports. At some elite universities, algorithmic trading competitions offer plenty of action. In March, the University of Chicago hosted 26 teams from schools across the country to see who could solve case studies with the best unique algorithms. The evolution of trading, once centered around pits and in-person transactions, has given rise to a new class of students hoping to make it in an increasingly computerized industry.
***JM: This is good stuff. I like to see that the answer to, “Where can we find people who can do all these different things?” is, “All around us.”
Hedge fund buying doubles Minneapolis Grain Exchange seat prices
Hedge fund manager Murray Stahl has bought 13 percent of the seats on the last independent U.S. grain exchange, doubling prices and fueling speculation he may want a platform to trade his fund’s products or even to cash in on a potential takeover, industry sources said on Monday.
***JM: I’m pretty sure Mr. Stahl isn’t just a big fan of apple juice…
CFTC launches inquiry into evasion of swaps rules
The U.S. swaps regulator plans to research whether U.S. banks’ overseas trading activity is complying with its rules, a senior official said on Monday, as Wall Street adapts to new rules for the $690 trillion global market.
The bold designs that deter banknote forgers
Andy Sharman – FT.com
Malcolm Knight holds a banknote up to the window. As the light hits the paper, a shiny oval of blue lightbulbs on the face of the note suddenly disappears, revealing – as if by magic – a cluster of lighthouses. “It’s very hard for a counterfeiter to rise to that challenge,” he says.
***JM: Say, do you suppose they could make a $10 bill that has an extra holographic “0” that could appear?
CTA Expo New York, April 30, 2014
CTA Expo begins its calendar year on April 30 in New York. There is a change of venue this year, as the conference moves to the historic New York Stock Exchange. If that isn’t enough to entice you, let me say that I will be participating in a panel, “Public Relations & Marketing for the Emerging Manager.” The keynote will be delivered by futures industry legend Peter Borish. The event has sold out, so hopefully you registered early.
2014 NIBA New York Conference May 1
National Introducing Brokers Association
Join fellow IBs, CTAs, CPOs, APs, regulatory officials and futures industry service providers including the exchanges, FCMs, legal, accounting, compliance, technology, marketing and more for an afternoon of learning, discussion, and networking. May 1, 2014, New York Athletic Club, 180 Central Park South, 2pm.
MarketsWiki Page of the Day
MarketsWiki Recent Updates
Companies, Organizations and Groups
48,567,560 pages viewed, 7,941 articles, 182,325 edits
Deutsche Börse Sees Sharp Rise in Profit
Ulrike Dauer – WSJ.com
German exchange operator Deutsche Börse AG reported an 81% profit increase for the first quarter, on higher revenue reflecting a better market environment, positive one-time contributions from equity investments and lower operating costs.
Dissent at SEC over bank waivers
Kara Scannell in New York and Gina Chon in Washington – FT.com
A commissioner with the Securities and Exchange Commission accused the agency of having “strayed from its mission” by granting waivers allowing two banks that pleaded guilty to interest-rate rigging to access capital markets without regulatory scrutiny.
Singapore overtakes London for offshore renminbi trading
Jeremy Grant in Singapore and Delphine Strauss in London – FT.com
Singapore has vaulted ahead of London as the world’s biggest offshore trading hub for the renminbi outside Hong Kong, as rapidly growing commercial ties between China and southeast Asia propel use of the Chinese currency.
Nasdaq injects further GBP8 million into NLX
Tim Cave – Financial News
Nasdaq OMX has injected a further £8 million into its fledgling European derivatives platform, taking total investment in one of the US exchange’s strategic plays to over £40 million.
Citadel Says Lewis Book Tars Markets That Are Best Ever
Matthew Leising – Bloomberg
Michael Lewis produced a top-selling book by arguing that the U.S. stock market is rigged. To one of hedge-fund operator Citadel LLC’s top executives, small investors have never been more fortunate.
Three Former Barclays Bank Employees Charged Over Libor Rigging — 2nd Update
British prosecutors filed criminal charges Monday against three more former employees of Barclays PLC, including two Americans, in the latest broadening of global authorities’ investigation into alleged rigging of benchmark interest rates.
Analyst Accuses Schwab of Dueling Messages on High-Frequency Trading
Julie Steinberg – MoneyBeat – WSJ
Charles Schwab Corp. needs to un-mix its messages on high-frequency trading, according to one research analyst. The brokerage’s management has released “extremely inconsistent” comments on high-speed trading, analyst Richard Repetto at Sandler O’Neill + Partners, L.P. wrote in a research note on Friday.
‘Flash Boys’ Heroes Plan European Roadshow
Tim Cave – MoneyBeat – WSJ
IEX Group, the six month-old U.S. stock exchange led by the heroes of Michael Lewis’s controversial new book Flash Boys, is to visit Europe for the first time in June as it seeks to build relationships with trading firms in the region.
Bill McNabb Of Vanguard Says That HFT Is Beneficial To Investors
Tim Worstall – Forbes
It’s always nice to see someone serious and well respected saying the same thing that I have been and so it’s nice to see Bill McNabb of Vanguard stating that HFT is beneficial to investors, not detrimental as Michael Lewis seems to think in Flash Boys. And McNabb is making this claim that high frequency trading benefits us all on exactly the same grounds that I have been doing so.
U.S. SEC has accounting probes in the works, White says
A task force formed last year to police for accounting fraud has launched a series of new investigations, the top U.S. securities regulator will tell lawmakers on Tuesday.
SEC Requests Financial Firms’ Security Details
Mathew J. Schwartz – Wall Street & Technology
The Securities and Exchange Commission plans to study the information security policies, procedures, and levels of preparedness of businesses in the financial services sector.
As BofA Shows, Regulators Still Too Reliant on Megabanks to Oversee Themselves
Ryan Tracy – MoneyBeat – WSJ
Bank of America Corp.’s disclosure that it misreported capital levels to the Federal Reserve is the latest indication that — more than five years since the financial crisis — supervisors remain reliant on megabanks to keep tabs on their sprawling operations.
Is It Time to Broaden the Definition of Insider Trading?
PETER J. HENNING – NYTimes.com
William A. Ackman and Valeant Pharmaceuticals’ hostile bid for Allergen is giving the public a close look at how nonpublic information can be used without breaking insider trading rules.
Dissenting Statement In The Matter Of The Royal Bank Of Scotland Group, Plc, Regarding Order Under Rule 405 Of The Securities Act Of 1933, Granting A Waiver From Being An Ineligible Issuer, SEC Commissioner Kara M. Stein
Joint Statement On The Conflict Minerals Decision – SEC Commissioners Daniel M. Gallagher And Michael S. Piwowar
Exchanges & Trading Facilities
Doyen, LLC Joins Nadex as Market Maker
The North American Derivatives Exchange (Nadex), a regulated online binary options exchange in the United States, today announced that Doyen, LLC (Doyen) has been designated as an exchange market maker to make markets across a number of listed contracts. Doyen will make markets on some of the most heavily traded forex pairs including AUD/USD, GBP/USD, EUR/JPY, EUR/USD and USD/JPY, for intraday, daily and weekly contracts, with additional contracts to be added over a period of time. With an additional market maker, Nadex expects tighter spreads and increased liquidity on this popular asset class.
Anthony Belchambers takes board role at NLX
Anish Puaar – Financial News
Anthony Belchambers, an industry veteran who set up the FOA in 1993, and who left the organisation in March, takes the role of non-executive director at NLX.
TSX Ignite Kicks Off Live Events At MaRS In Toronto On April 30
Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV) kick off the TSX Ignite live event series in Toronto on Wednesday, April 30. Launched last month, this innovative program is designed to help support the growth and development of small and medium-sized enterprises in Canada by providing companies with information and tips on how to build great businesses.
TMX Group Limited To Hold Its Annual and Special Meeting For Shareholders On Friday, May 23, 2014
Annual Meeting Of Shareholders Of NZX
Mainstay Medical lists on Euronext
Hedge Funds & Managed Futures
Hedge fund industry wades into systemic risk debate
Sarah Krouse – Financial News
Representatives from the hedge funds industry have joined the debate over whether asset managers could pose a systemic risk if they fail, arguing that regulators are taking the wrong approach to evaluating potential threats.
Alternative Mutual Funds May Disappoint
Rob Copeland – MoneyBeat – WSJ
So-called alternative mutual funds that aim to replicate popular hedge-fund strategies for retail investors have never been hotter. But a new report this week suggests that performance in some of the more popular vehicles could be disappointing.
Commodities favoured in rotation from stocks and bonds
Neil Hume, Commodities Editor – FT.com
After several years of poor performance investors are warming to commodities. Helped by the return of volatility, strong returns and declining correlations with other asset classes, money has started to trickle back into the sector.
Fact Check: Does Private Equity Kill Jobs?
Lauren Weber – MoneyBeat – WSJ
In 2013, private equity firms owned or otherwise backed more than 17,000 U.S. companies employing about 7.5 million people. Yet despite its reach—and the drubbing it received when former Bain Capital executive Mitt Romney ran for president in 2012—little research has been conducted to understand private equity’s effects on workers.
Australian-first VIX based volatility strategy for retail investors
Grant Samuel Funds Management and Triple3 Partners have formed a partnership that will see Grant Samuel distribute the newly launched Triple3 Volatility Advantage Fund to the Australian market.
Banks & Brokers
Meet BofA’s Culprit: Structured Notes
Katy Burne – MoneyBeat – WSJ
Bank of America Corp. said it will revise its capital plans after disclosing an error in its calculations for certain debt securities. The culprit: so-called structured notes.
Bank Of America’s Stock Plunges By 6% After $4 Billion Capital Plan Blunder
Bank of America CEO Brian Moynihan runs a financial firm that has 263,000 employees and $2.2 trillion of assets and investors on Monday appeared to wonder once again whether anyone can manage a bank of such enormous size.
Bank of America’s Bad Accounting
FLOYD NORRIS – NYTimes.com
That accounting rule, which has been around since 2007, has vexed investors in financial institutions ever since it began to be applied.
Bank Of America Messes Up Capital Calculation, Suspends Dividend Increase
Bank of America Corp said it would suspend its $4 billion stock buyback program and a planned increase in its quarterly dividend because it miscalculated the level of its capital after buying Merrill Lynch in 2009.
JPMorgan reduces repo credit extension that concerns regulators
JPMorgan, one of two large clearing banks in the tri-party repurchase agreement market, said on Monday that it had met targets to reduce risks of short-term loans of concern to the Federal Reserve Bank of New York and other regulators.
Deutsche Bank announces first AT1 bond sale
Deutsche Bank announced its first-ever Additional Tier 1 (AT1) bond sale on Monday, a multi-currency benchmark deal intended to address concerns about its capital reserves.
Santander launches 4.7 billion euro Brazil buyout as Europe rebounds
Spanish bank Santander launched a buyout offer for the remaining 25 percent of its Brazilian unit, cementing its grip on one of its top profit drivers in a deal worth up to 4.7 billion euros ($6.5 billion).
Clearing & Settlement
Trax Expands European Management Team With Senior Hires
Trax, a leading provider of regulatory transaction reporting, financial market data and trade matching services to the European securities markets, and a wholly owned subsidiary of MarketAxess Holdings Inc., announces the appointment of Chris Smith as Head of Post-Trade Services, and Kevin Swann, as Head of Data as it continues to strengthen its management team and expand its suite of data and post-trade services.
OCC Successfully Launches Clearing OTC S&P 500 Equity Index Options April 25
OCC announced today it launched its over-the-counter (OTC) S&P 500 equity index option clearing services on Friday, April 25, bringing capital and operational efficiencies and enhanced customer protections to the OTC equity derivatives marketplace.
Euroclear criticises non-neutral industry utilities
Saheed Awan – Risk.net
Clearing houses in vertical exchange-owned silos are less likely to deliver collateral and margin management business to a collateral agent or custodian that is part of a competitor’s vertical model
No ‘Big Bang’ Move To A Post-T2S World
SWIFT announces the availability of two new research reports from Celent analysts Arin Ray andJoséphine de Chazournes on the evolution of European post-trade arrangements under T2S. The new papers build on Celent’s 2013 report entitled ‘The European Post-Trade Ecosystem under T2S’, which was also sponsored by SWIFT.
DTCC Expands Support Of OTC Derivatives Trade Reporting In Singapore
The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, today announced the continued expansion of its Global Trade Repository (GTR) service in Asia, with all banks licensed in Singapore and merchant banks approved by the Monetary Authority of Singapore (MAS) now required to report their over-the-counter (OTC) credit and interest rate derivatives transactions to a licensed trade repository as of the April 1, 2014 deadline.
DTCC Expands Global Trade Repository In Australia To Support Phase 2 Of Regulatory Reporting
Indexes & Products
When ETFs make things more volatile
Izabella Kaminska | FT Alphaville
Do ETFs impact the volatility of the underlying stocks they are based on? A new paper by Itzhak Ben-David, Francesco Franzoni and Rabih Moussawi suggests they do.
NYSE Arca and NYSE MKT Announce Trading and Liquidity Enhancements for ETPs
NYSE Arca and NYSE MKT today announced a set of enhancements designed to increase liquidity and market quality in Exchange Traded Products (ETPs), while advancing the listing and trading experience of the ETP community.
[SIX] First ETF on new index launched
Starting today, investors can trade the first product to replicate the SPI Select Dividend 20 index recently launched by .
Dash Departs Bloomberg Indexes
Max Bowie – Waters Technology
Srikant Dash has left his role as global head of indexes at Bloomberg, Inside Market Data has learned.
Two New Amundi ETFs Launched In The XTF Segment On Xetra – ETFs Track US Small-Cap Companies And High-Yield Corporate Bonds Denominated In Euros
FTSE Group Develops Ground-Breaking Global Ex Fossil Fuels Index Series
Semi Annual Review Of FTSE/ATHEX Index Series
Richard Farrell Joins Integral’s Executive Team
Integral Development Corp. (www.integral.com), a leading platform for FX market participants, announced today that Richard K. Farrell has joined the firm as Managing Director, Business Development/Sales. Farrell is reporting to Harpal Sandhu, CEO, and Jon Barker, Global Head of Sales, and is a member of the firm’s executive team. Based out of New York, Farrell will oversee efforts to expand Integral’s offerings into additional customer segments and business models.
Leveraging Big Data in Market Surveillance
Modern market surveillance applications process billions of transactions in real-time every business day. The current trend is that new regulatory and compliance requirements result in market data sets getting larger and an increasing need to process data from longer time periods.
Nasdaq Launches Redesigned IR Mobile Application
Becca Lipman – Wall Street & Technology
On Monday Nasdaq launched a redesign of its mobile application for Thomson ONE Investor Relations. Updates include new dashboards and tools as well as a smoother interface for improved user experience. The updates on design, as well as function, speaks to a growing trend in revamping total user experience with the help of experts outside the core industry.
Closing the Quality Gap: Firms Look To Short-Term Corrective Testing Strategies
Stephen O’Reilly – Wall Street & Technology
Financial services firms are investing more to remedy post-event quality failure, but not enough to pre-empt failures at the source, writes Steve O’Reilly of SunGard Consulting Services.
SWIFT Launches Compliance Analytics Service To Help Banks Manage Financial Crime Risk
Using SWIFT Traffic Data, Compliance Analytics Will Help Banks Visualise Their Global Transaction Flows And Identify Unexpected Patterns Or Activities
New Ref. Data Alliance Powerhouse for Quality Assured Options Series
Symbol Master Incorporated of Philadelphia (SMI) and FOW TRADEDATA of London today, at the start of the OIC Options Conference in Austin, Texas, announced a strategic alliance partnership to provide high quality assured reference data and symbology services for the US futures and options derivative markets.
Federal Court Orders Illinois CPA Michael Tunney and His Accounting Firm, Tunney & Associates, P.C., to Pay a $100,000 Penalty for Improper Audits of a Commodity Futures Firm
[AMF Canada] Proceedings for illegal distributions related to Gestion Read inc.
Environmental & Energy
France says could block Alstom deal as president meets GE
Andrew Callus and Nicholas Vinocur, Reuters
France will block any deal involving engineering group Alstom it considers unfit, Economy Minister Arnaud Montebourg said ahead of a meeting between President Francois Hollande and General Electric’s chief executive to discuss Alstom’s future.
Siemens and France weigh in as GE eyes Alstom deal
Benjamin Mallet and Maria Sheahan, Reuters
Siemens and the French government intervened in General Electric’s plan to buy the power arm of Alstom on Sunday with an alternative European “champions” tie-up proposal and a pledge to act in France’s national interest.
Slovakia signs deal to send some gas to Ukraine
Slovakia and Ukraine signed a deal on Monday that allows the European Union to send a limited amount of gas to Ukraine, although providing Kiev with less supplies than it hoped to cushion the blow should Russia turn off the taps.
Wind-up order seals HKMEx fate
Karen Chiu – The Standard
The collapsed Hong Kong Mercantile Exchange was ordered to be wound up after creditors refused to accept the company’s new repayment plan. High Court judge Jonathan Harris said yesterday the company had failed to show that it could make full payments to creditors who refused to accept the offer of partial payment.
Thai Bourse Promotes Investment In Q3 Via SET-TFEX Investopolis In Money Expo 2014
Q&A With Mrs Tinku Gupta, Senior Vice President, Head Market Data & Access, Singapore Exchange – From May 2014 Trading Places
HKFE Announces Revised Margins For Futures Contracts
Shenzhen Stock Exchange Market Bulletin 28 April, 2014 – Issue 14
HKEx: Scrip Dividend Scheme In Relation To The Final Dividend For The Year Ended 31 December 2013 – Calculation Of Market Value
HKEx Announces Temporary Holiday Risk Management Arrangements
HKEx Announcement: Shanghai-Hong Kong Stock Connect
DFM International Investor Roadshow In London Provides Listed Companies With Ideal Platform To Connect With Institutions
Senior Representatives Of 12 Listed Companies Demonstrate Its Achievements And Outlook Through 240 Meetings With 56 London- Based Investment Funds