First Read

Chicago MarketsWiki World of Opportunity Summer Intern Series On Track

The MarketsWiki World of Opportunity Summer Intern Education Series in Chicago is coming along nicely with sponsors joining us, interns and newer employees signing up and an expanded speaker list.

We are pleased to announce BATS, CBOE, CME Group, the Stuart School of Business at the Illinois Institute of Technology, and Spot Trading have agreed to be sponsors of our MarketsWiki World of Opportunity Summer Intern Education Series in Chicago.

We are also pleased to announce we have over 80 interns and new employees signed up for the Chicago series so far, with more coming in every day.

Our venue is Stuart School of Business’ auditorium over at 565 West Adams. The auditorium holds 326 people, so we have plenty of room for this year’s participants.

We have added several new speakers to the lineup. From Trading Technologies, we now have Stefani Sandow, who has an extensive background in internet architecture and web-user experience and was a key player in the development of TT’s new Nextrader platform.

We have also added Tom Cashman, a 50-year member of the Chicago Board of Trade and longtime soybean pit broker and trader. Tom also helped get me into the industry back in 1978. He was the focus of a John Lothian Profiles video in 2012

Pat Kenny of CQG, who I labeled “The Most Interesting Man in the World,” will also be a speaker. Matt Rees, a client experience executive with RJ O’Brien has also agreed to speak.

Others recently added include Mead Welles, a hedge fund executive who started the charity “A Leg to Stand On,” Chris Edmonds of ICE, Matthew Scharpf of Eurex and Ethan Kahn of Wolverine.

We still have a couple more speakers to confirm, including a representative to be named from BATS.

If you have interns or newer employees, sign them up. You will not want them to miss this opportunity to hear from industry leaders and key players.

~John J. Lothian

***** Sometime over the last week, MarketsWiki eclipsed the 50 million page view mark. Six and a half years after its launch the site hits 50 million. I just want to say WOW!!!

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Beware misconceptions over European market data
Christian Katz – Financial Times
The recently agreed European legislation, the Markets in Financial Instruments Directive (Mifid), has given a mandate to authorities to determine what is a “reasonable commercial basis” for pricing market data. This proposal fundamentally calls into question whether there is a functioning market for the data.
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***** One man’s reasonable is another man’s unreasonable, which is why we have markets.

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Navigational Beacon: NASDAQ OMX Group’s Hans-Ole Jochumsen Steering through Challenges
JohnLothianNews.com
A recurring theme at this year’s IDX London was navigating the many challenges facing the financial sector. In this video, NASDAQ OMX Group’s Hans-Ole Jochumsen talks to John Lothian News about three such challenges – exchange competition, allocation of technology resources, and the global regulatory environment.

Watch the video »

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NY Fintech Scene Growing Faster Than Silicon Valley Since ’08
Becca Lipman – Wall Street & Technology
Drawn in by the proximity to huge financial centers and increasing opportunities to work side-by-side with top industry firms, the Big Apple has become a booming hub to financial technology (fintech) startups. Rising demand for innovative solutions has further helped strengthen the ties between two traditionally distant counterparts.
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***** I Love NY Fintech! Get your t-shirts now.

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Inside One of the U.S.’s Biggest-Ever Investment-Fraud Stings
Jean Eaglesham – WSJ
The cramped office tucked behind an auto-parts supplier in a Boston suburb was an unlikely setting for a hedge-fund manager with a $3 billion New York firm. But John Kelly, a middle-aged man partial to pleated navy slacks and a pink button-down shirt, made clear to visitors that he had good reason for operating his firm, SeaFin Capital, far from the prying eyes of his Wall Street bosses: He was running a scam and looking for willing conspirators.
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****** You have to like any story that includes the words “bratwurst hall of fame.”

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Scandal-Prone Barclays Launches School of Compliance
Max Colchester – MoneyBeat – WSJ
On Thursday the scandal plagued bank presented its “Compliance Career Academy.” Delivered in partnership with Cambridge Judge Business School, the project aims to train all 2,100 Barclays compliance staff in how to protect the interests of the bank’s customers.
jlne.ws/1smbtXB

***** You first build a Chinese wall. Not one of those paper ones, one of those Great Walls made of stone that you can walk on.

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Bridging the Week: Violating Economic Sanctions, Attorney-Client Privilege, EU Non-Recognition of US CCPs, Spec Limits
Gary DeWaal – Katten Muchin Rosenman
It was a short workweek in the United States because of the Independence Day holiday. However, it seemed like a very long week because of the US loss in the World Cup. Despite the shortness of the workweek and the disappointment over the US team’s loss, there were some significant developments impacting the financial services industry, including a long-awaited fine against BNP Paribas for evading US economic sanctions, as well as an important court decision extending the attorney-client privilege in connection with investigations ordered by in-house counsel.
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MarketsWiki

MarketsWiki Page of the Day
GFT Group
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MarketsWiki Recent Updates

People

Hans-Ole Jochumsen; Bruce Mumford; Lloyd C. Blankfein; David Cummings; Allan Schoenberg

Companies, Organizations and Groups

GFT Group; Rule Financial; Goldman Sachs Group, Inc.

Statistics

50,714,575 pages viewed, 7,987 articles, 184,112 edits
MarketsWiki Statistics

Lead Stories

European exchanges warn on market data cost controls
Philip Stafford – Financial Times
European exchanges have warned that controls on market data charges, under review by regulators, could have a “significant” impact on their long-term ability to run high-quality capital markets for the region.
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Eurex Challenges CME Europe with FX F&O Launch
Profit & Loss
Eurex is launching its first suite of six FX futures and options today (7 July), in a bid to pre-empt regulatory change and directly challenge CME Europe for dominance
jlne.ws/1qDpAsa

IEX Pricing Aims to Drain ‘Dark Pools’
Bradley Hope – WSJ
In its bid to become a full-fledged stock exchange, IEX Group Inc. plans to unveil a pricing system aimed at stealing market share from other exchanges and enticing big banks to shut down their so-called dark pools.
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Nasdaq OMX NLX hit by data glitch
Luke Jeffs – Futures & Options World
Nasdaq OMX NLX, the nascent European rates market, suffered its second operational problem in a month when two of its data portals were unavailable as the market opened on Monday.
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Barclays Suit Sheds Light on Trading in Shadows
NY Times
Dark pools just got a little brighter. Last week, the New York attorney general, Eric T. Schneiderman, became the first regulator to weigh in on the debate over high-frequency traders, who conduct much of their business in the opaque private venues known as dark pools.
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Tradition sees jump in electronic swaps trading
Joe Parsons – Futures & Options World
Inter-dealer broker Tradition saw trading on its global interest rate swaps platform hit new highs last month, with 750 trades executed with a notional volume of $50bn.
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Obama Decries Big Bonuses at Bank Trading Desks as Risky
Mike Dorning – Bloomberg
President Barack Obama’s critique of trader bonuses at Wall Street banks as still risky to the economy drew objections from financial executives who said the compensation system already has been fixed.
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Risk Transparency, Defined
Sanjay Sharma – Wall Street & Technology
Despite best efforts to define and commit technology to effective actualization of transparency, the notion of transparency remains vague and is often left to the best efforts of information providers.
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Fund managers hold the potential for systemic risk
John Authers – Financial Times
Could fund managers pose a systemic risk? Regulators round the world started to ask the question, and answered “perhaps”.
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Energy Risk unveils lifetime achievement award winners
Gillian Carr – Risk.net
Energy Risk has named the winners of its 20th Anniversary Lifetime Achievement Awards – a special one-off prize recognising 20 individuals who have contributed to the development of commodity trading and risk management
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Regulatory

Post BNP, EU Wants Equivalence on Banks With U.S., Barnier Says
Businessweek
The European Union wants regulator “equivalence” with the U.S. on financial matters, EU financial services chief Michel Barnier said, flagging the matter as a key issue for trans-Atlantic trade talks.
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DoJ vows financial sector crackdown
Kara Scannell in New York – Financial Times
The US Department of Justice will be “appropriately aggressive” and seek to bring “timely” cases, including against financial institutions, the chief of its criminal division told the Financial Times.
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Esma still unable to access US repository data
Tom Osborn – Risk.net
Three years on, and despite efforts from US regulators and politicians, Europe’s markets regulator is still barred from accessing data held by US repositories
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Canadian Securities Regulators seek comments on proposed amendments related to gender diversity
The securities regulatory authorities in Saskatchewan, Manitoba, Québec, New Brunswick, Nova Scotia, Newfoundland and Labrador, Northwest Territories and Nunavut (the Participating Jurisdictions) today published for comment proposed amendments to Form 58-101F1 Corporate Governance Disclosure (Form 58-101F1) of National Instrument 58-101 Disclosure of Corporate Governance Practices (NI 58-101) (the Proposed Amendments). These amendments were previously published for comment by the Ontario Securities Commission (OSC) on January 16, 2014.
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Exchanges, FINRA Reveal CAT Operator Shortlist
Faye Kilburn – WatersTechnology
US self-regulatory organizations, including US exchanges and regulator FINRA, have selected six potential candidates for the role of processor of the US consolidated audit trail (CAT), which will capture all trades, quotes, cancellations and other information across US-listed equities and options.
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[NFA] Chief Compliance Officer Departure: Obligations of Swap Dealers and Major Swap Participants
CFTC Regulation 3.3 requires each swap dealer (SD) and major swap participant (MSP) to designate an individual to serve as its chief compliance officer (CCO). Following the departure (due to resignation or replacement) of a CCO, an SD or MSP must comply with the below requirements for designating a new CCO.
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Education and Good Governance Fund – AMF supports 13 projects
The Autorité des marchés financiers (“AMF”) today announced this year’s projects that will receive financial support from the Education and Good Governance Fund (EGGF). The Assessment Committee selected 13 projects submitted before the March 30, 2014 deadline, for total financial support in the amount of $715,830.
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FCA Annual Public Meeting 2014
Our APM will take place on 17 July 2014, at the QEII Conference Centre, London
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Interviews With ASIC Chairman, Greg Medcraft
ASIC Chairman Greg Medcraft appeared on Channel 9’s The Bottom Line on Saturday, 4 July 2014 to discuss his youth, career and how good regulation can spur economic growth.
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Exchanges & Trading Facilities

Eurex set for European FX futures contract debut
William Mitting – Futures & Options World
Eurex is set to launch foreign exchange derivatives on Monday, marking the group’s first FX derivatives and a direct challenge to CME Group, Europe’s sole currency futures market.
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Three directors leave Liffe as ICE rings changes
Luke Jeffs – Futures & Options World
At least three senior Liffe employees are leaving the British futures market in the wake of IntercontinentalExchange’s takeover of the business last year.
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Intercontinental Exchange Reports ICE and NYSE Volume for June and Second Quarter 2014; Brent Open Interest Record and 18% Increase in June ADV
Intercontinental Exchange, Inc., the leading global network of exchanges and clearing houses, today reported exchange traded volumes for June and the second quarter of 2014. For June and the second quarter of 2014, futures and options average daily volume (ADV) decreased 26% and 20%, respectively, compared to prior year periods.
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FX Volume Up in June at EBS, CME Group
Profit & Loss
Currency trading volume edged up again last month on the EBS platform and at CME Group, the first of the reporting venues to release FX trading figures for June
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SIX Swiss Exchange: Exchange of the Year!
Yesterday, Global Investor/isf organized the ceremony for the Investment Excellence Awards 2014. SIX Swiss Exchange won the title “Exchange of the Year” in the category’s inaugural year. Further awards were distributed in the categories Asset Management and Service Providers. A delegation of the Swiss exchange, led by its CEO Christian Katz, was present in London to receive the prestigious award.
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Tokyo Commodity Exchange June Volume Averaged 78,289 Contracts Per Day, Up 6% Month-On-Month
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Vienna Stock Exchange Monthly Statistics – June 2014
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Irish Stock Exchange Statistics June 2014
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Intelligent Energy Opens London Stock Exchange Trading Celebrating IPO
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TSX Markets: Top 20 Largest Consolidated Short Position Report – June 30, 2014
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TOM MTF Statistics Week 27, 2014
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Hedge Funds & Managed Futures

Deutsche Bank’s asset arm plans to power up in London
Mike Foster – Financial News
Deutsche Bank’s asset management arm is planning to double the number of financial professionals it employs in London to 600 over the next five years.
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Nordic firm Altor raises E2bn buyout fund
Dan Dunkley – Financial News
Swedish buyout firm Altor has raised a E2 billion fund for Nordic deals, holding a first and final close at its hard cap.
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Northern Trust wins GBP 4bn custody mandate
Rachael Singh – Financial News
The financial services company has won a Local Government Pension Scheme mandate to provide global custody services to Cambridgeshire and Northamptonshire’s pension funds.
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Inequality in private equity: Some firms 95% male
Becky Pritchard – Financial News
Men make up 95% of investment professionals at some of Europe’s best-known buyout firms, according to research on gender diversity by Financial News’ sister title Private Equity News.
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Rethinking the Asset Management Middle Office
Jay Burstell – Wall Street & Technology
Streamlining the middle office means more than just reducing headcount. To prepare for growth, asset managers need to transform the entire organization.
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TPG Capital Management Pushes Further Into Hedge Funds
Rob Copeland, Cynthia Koons And Mia Lamar – WSJ
TPG Capital Management became the latest private-equity firm to push further into hedge funds with two separate moves to invest beyond its base in buyouts.
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Lyxor AM launches high-yield bond fund
Andrew Pearce – Financial News
Lyxor Asset Management is the latest asset manager to launch a high-yield bond fund to take advantage of current market conditions.
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Percentages vs. Dollars—a Battle for Investors’ Attention
Charlie Wells – WSJ
Two familiar figures are duking it out in a battle for fund investors’ attention and comprehension. On the one side: the percentage. On the other, the plain dollar amount.
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Brazil managers’ H1 fundraising lowest since 2002 – Anbima
Reuters
Brazil’s fund industry raised the lowest amount of money from investors in 12 years in the first half of the year, an industry group said on Thursday, a sign that rising borrowing costs, growing global market turmoil and a presidential election are making market participants skittish.
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Banks & Brokers

BAML Reshuffles London Investment Bank Chiefs
Matt Turner – MoneyBeat – WSJ
Bank of America Merrill Lynch is making changes at the top of its investment bank in London. The U.S. bank has named two new co-heads to run its day-to-day U.K. corporate and investment banking operations, with Simon Mackenzie Smith, chairman of the unit, stepping up to represent the bank more broadly in the U.K.
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Goldman muscles in on Europe’s private banks
Daniel Schäfer in London – Financial Times
Goldman Sachs is expanding its European wealth management business to offer loans to rich clients in a move that is taking it further into the domain of centuries-old private banks in Europe.
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Clearing & Settlement

Clearing houses braced for European Court of Justice hearing
Tim Cave – Financial News
London’s major clearing houses will be closely watching a key case in the European Court of Justice this week that threatens to force vast amounts of their business to be moved into the eurozone.
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ESMA Adds Keler CCP To The List Of Authorised Ccps Under EMIR
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Indexes & Products

ETFs back on song in second quarter
Mike Foster – Financial News
Exchange-traded fund inflows shot up to $123.9 billion in the first half of the year, a rise of 25% compared with the same period in 2013, after a strong performance in the second quarter, according to data compiled by BlackRock.
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According To ETFGI: ETFs And ETPs Listed Globally Reached US$2.64 Trillion In Assets, A New Record High, At The End Of Q2 2014
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Technology

OptionsCity June 2014 Newsletter
In this issue: We support NYSE Liffe US products from day one of ICE transition; CEO Hazem Dawani discusses entrepreneurship with Chicago Tribune Blue Sky Innovation; Register for our live webinar: Capturing Volatility: Trading MGEX’s Hard Spring Wheat Contract; In our blog Ilkay Kerey reports back from FIA IDX, Suzanne Cosgrove covers algos for futures trading, and Sarah McNabb outlines the convergence of languages for business. Check out the photo album from OptionsCity’s charity poker event.
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Enforcement

If Convicted, Rengan Rajaratnam Faces Light Insider Trading Sentence
MATTHEW GOLDSTEIN – Dealbook – NY Times
Rengan Rajaratnam, who is on trial for conspiracy to commit insider trading, would face a much lighter sentence than the 11-year prison term being served by his older brother, Raj Rajaratnam, the former billionaire hedge fund manager, if he were convicted.
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Ex-JPMorgan trader challenges ‘whale’ findings
Caroline Binham, Legal Correspondent – Financial Times
A former JPMorgan Chase trader who faces US criminal charges in the wake of the $6bn “London whale” debacle is challenging civil findings made against the bank by the UK financial watchdog.
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NFA Regulatory Actions: Quick Trade Futures Inc. and Jim Xu
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NFA Regulatory Actions: The Barbashop LLC and Ronald T. Barba
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NFA Regulatory Actions: Global Futures Exchange and Trading Co. Inc. and Kattayoun Hakimian
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NFA Regulatory Actions: IFG Markets LLC and Wilson Cheng
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NFA Regulatory Actions: Aspirant Management LLC, Luckow Group Inc., Paul D. Luckow
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NFA Regulatory Actions: Belvedere Asset Management LLC and Keith D. Pagan
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Environmental & Energy


US oil and gas explorers impress
Ed Crooks, Financial Times
While international exploration and production companies have been underperforming in recent years, some of their US counterparts have been impressive.
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***LB: Also in this story “Among the gas specialists, the lowest-cost operators of the Marcellus Shale of Pennsylvania are among the best performers, including Cabot Oil & Gas, up 347 per cent in five years, and Range Resources, which is only up 110 per cent, in line with the wider market, but has still outpaced several of its peers.”

U.S. gas, power producers return to hedging after wild price swings – Citi
Dmitry Zhdannikov, Reuters
Sharp volatility in U.S. gas and power markets over the past winter due to extreme weather has prompted some producers to return to price hedging after being absent from the market for years, Citibank said on Wednesday.
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Industry welcomes EU Court ruling on national green energy subsidies
BusinessGreen
The EU’s top court has backed Sweden’s decision to deny subsidies to a Finnish wind farm in a move that confirms there is no requirement for member states to support renewable energy in other countries.
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***LB: Also in this story “The case came about after the Swedish government refused to provide green certificates to a wind farm on the Åland islands, which is part of Finland but is physically connected to the Swedish electricity network.”

Asia-Pacific

Japan’s Migration to Electronic Execution & Dark Pools
Mitsuhiro Tsunoda – Wall Street & Technology
Relative to three years earlier, 40% of Japanese asset managers reduced discretionary execution and about 80% reported increased use of algorithmic trading and direct market access.
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Korea derivatives road map receives lukewarm reception
Viren Vaghela – Risk.net
FSC to introduce exchange-traded derivatives, volatility futures and index futures as part of a plan to boost investor participation in derivatives – but market participants are not convinced
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UPDATE 1-Morgan Stanley private equity arm raises $1.7 bln Asia fund
Stephen Aldred – Reuters
Morgan Stanley said its Asia private equity unit has raised $1.7 billion in its fourth Asia fund as it seeks investment opportunities in China and South Korea.
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Chinese assets warm, not hot for Western investors
Reuters
A flurry of initiatives by China to open up its currency, stock and bond markets inside and outside the country has failed so far to allay international investor concerns about performance, accessibility and liquidity.
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Horizon Software First To Offer Options Trading System In China
Horizon Software, innovative provider of front-end trading solutions, is the first vendor to offer an options trading system in China’s booming market.
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HKEx Monthly Market Highlights – June 2014
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Tokyo Commodity Exchange Receives Authorization From Singaporean Regulator As A Recognised Market Operator
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Dalian Commodity Exchange: Instructions On Night Trading
Instructions Of Calendar Spread Arbitrage Can Be Issued In The Night Trading Sections
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Shenzhen Stock Exchange Market Bulletin 30 June, 2014, Issue 21
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Frontier Markets

Dubai: Waiting for a windfall from Iran
Dominic Dudley – Euromoney Magazine
Can Dubai take advantage of Tehran’s rapprochement with the US to once again become Iran’s de facto financial link to the world?
jlne.ws/1pTQgHf

[India] Super regulator might soon become a reality; roadmap on FSLRC soon
Press Trust of India
In wide-ranging changes to the way the financial sector functions and is regulated, the government might soon lay out a road map for implementation of certain recommendations made by the Financial Sector Legislative Reforms Commission (FSLRC), including creation of a Unified Financial Agency.
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Barclays Africa Goes Live on EquiLend
Tom Hadland – WatersTechnology
Johannesburg-based Absa Bank, a subsidiary of Barclays Africa, has become South Africa’s first domestic bank to execute a securities finance trade on the EquiLend trading platform.
jlne.ws/1pTRlPi

East Africa: First East African Commodity Exchange Launched
Nesru Jemal – AllAfrica
In a session held during the 6th Northern Corridor Summit, the East African Commodity Exchange (EAX) is launched. President Uhuru Kenyatta ushered the launch of the East Africa Commodity Exchange by ringing a bell signaling the formal launch of the Exchange.
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Non Jordanian Investment At The Amman Stock Exchange During June 2014
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Nigerian Stock Exchange Weekly Report For The Week Ended 4 July 2014
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Miscellaneous

Kapow! The targets of Gotham City’s research
Claer Barrett – Financial Times
Kapow! Gowex is the latest corporate target that Gotham City Research, the controversial US-based investment firm, has knocked down with a punchy research note.
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ADM to Acquire Wild Flavors for $3 Billion in Biggest Deal
Paul Jarvis – Bloomberg
Archer Daniels Midland Co. (ADM) said it will acquire Wild Flavors GmbH, a maker of natural food ingredients, for about 2.2 billion euros ($3 billion) cash in what will be the U.S. company’s biggest takeover.
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