John Lothian Newsletter: Fierce battle erupts over dark pools; LME Board Approves Warehouse Policy Changes; U.S. speed-trader Don Wilson and firm charged with price rigging

Nov 7, 2013

First Read

AlphaMetrix denies wrongdoing in CFTC lawsuit
Michael McFarlin – Futures Magazine
As AlphaMetrix closes its trading operations, the Commodity Futures Trading Commission filed charges against the firm earlier this week alleging it had violated the Commodity Exchange Act. AlphaMetrix now is denying those charges as it cooperates with the Court.
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***** The good news is that people at the FIA EXPO have something to talk about. The bad news is that it’s AlphaMetrix.

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CME Will Speed Repayment to MF Global Customers
Jacob Bunge and Nathalie Tadena – WSJ.com
CME Group Inc. plans to hand over to futures traders half the money CME is owed by MF Global Inc., helping repay the failed brokerage’s former customers more quickly.
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***** Thank you CME. And we are not even all ranchers.

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Exit sparks rising chatter over U.S. swap watchdog top roles
Douwe Miedema | Reuters
President Barack Obama is expected to soon fill two top roles at the U.S. derivatives regulator, people working closely with the agency said, to prevent a leadership vacuum from blocking crucial Wall Street reforms. Sharon Bowen, a partner at law firm Latham & Watkins in New York, is being vetted as a successor, three of the people said, and her name and that of a successor to Chairman Gary Gensler are expected to come out soon.
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***** Is it too early to miss Bart Chilton yet?

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Sponsored Content
SEFCON IV: Open for Business
Monday, November 18, 2013, Grand Hyatt Hotel, NY

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  • A view from Capitol Hill featuring congressmen Jim Himes (D-CT) and Mike Conaway (R-TX)
  • Panels on SEF technology, market structure and cross-border issues

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From Our Man In Chicago, FIA Expo 2013, Tom Groenfeldt: Making Money From Data By Renting Massive Computing From Google
MondoVisione
Financial firms have great value in their data they they haven’t begun to monetize, Brendan Jung who runs the cloud partner ecosystem for Google, said at the FIA conference in Chicago yesterday.
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***** From our man in the rain clouds.

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SEC’s Gallagher Calls for Small-Cap ‘Venture Exchanges’
Andrew Ackerman – MoneyBeat – WSJ
U.S. regulators are weighing a variety of ways to give smaller companies a leg up, from allowing their stocks to trade in pricing increments greater than one penny to implementing provisions of last year’s JOBS Act that cut red tape for startups. For Dan Gallagher, a Republican member of the Securities and Exchange Commission, these efforts are a good start but don’t go far enough.
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***** How strange it just seems to have an SEC Commissioner at the Futures Industry Association EXPO?

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Regulators urge rewrite for derivatives contracts
Sam Fleming – FT.com
Senior regulators have urged the derivatives industry to rewrite the way its contracts work to reduce the financial chaos that would result in a future banking crash. Mark Carney, the Bank of England governor, and Martin Gruenberg, chairman of America’s Federal Deposit Insurance Corporation, are among the signatories to a letter to the derivatives trade body calling for them to push through changes to the documentation used in the $630tn industry.
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***** And they would like them in a new font too.

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CME Spends $30 Million a Year on Open-Outcry Trading
Andrew Harris – Bloomberg
CME Group Inc. spends about $30 million a year to maintain traditional open-outcry floor trading at the Chicago Board of Trade building, the company’s chief operating officer testified.
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***JM: In Dublin, the Guinness factory maintains a big museum and tour facility so that visitors can pretend to have visited the brewery, and they sell TONS of merchandise and 3x-price beer there. What say you, CME Group? $25 a visitor, give them a gift badge and let them do a little pretend open-outcry trading, sell pork belly keychains and t-shirts…

***** I remember when the Chicago Tribune attacked the CME because they spent $75 million on the floors. Progress?

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Trading Technologies To Establish Connection To London Stock Exchange Group Derivatives Markets
Trading Technologies International, Inc. (TT), a global provider of high-performance professional trading software, today announced that TT will introduce connectivity to London Stock Exchange Group (LSEG) Derivatives Market in early 2014. With the new link, TT clients will have the option to view and trade products across all LSEG Derivatives Markets from a single gateway
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***** I had dinner last night with a former global president of Trading Technologies.

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OptionsCity Software Offers Connectivity to Eurex Exchange
OptionsCity, a leading provider of electronic trading solutions, today announced its connectivity to Eurex Exchange, one of the world’s largest derivatives exchanges.
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***** OptionsCity is at EXPO, or FuturesCity, as they are calling it.

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New Research from Woodbine Associates: Collateral Management: Business Requirements and Vendor Systems.
The report examines collateral management business and operational requirements under the new regulatory framework. It also addresses how organizations can equip themselves to respond to the challenges of central clearing and higher margin requirements. The report includes profiles and evaluation of ten leading vendor solutions.
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***** Important stuff, but make sure you have your coffee first.

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The Options Industry Council Announces ‘Road To Wall Street’ Returns To The Stuart School Of Business At IIT
The Options Industry Council (OIC) announced today that the next event in its university outreach program, The Road to Wall Street: Analyze Your Options, will be at the Stuart School of Business at the Illinois Institute of Technology (IIT) in Chicago for college students and faculty from IIT as well as the Chicagoland area on Friday, November 15.
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***** Do they have the Road to Financial Place as well?

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MarketsWiki

MarketsWiki Page of the Day
Trading Technologies
jlne.ws/1a8j7g9

MarketsWiki Recent Updates

Statistics

44,977,431 pages viewed, 7,695 articles, 167,558 edits
MarketsWiki Statistics

Lead Stories

Fierce battle erupts over ‘dark pools’
Philip Stafford – FT.com
A fierce battle has erupted between European policy makers, exchanges and banks over the future of “dark pools”, controversial trading platforms where business between dealers is done well away from exchanges.
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***** Go get them boys!!!

LME Board Approves Warehouse Policy Changes, With Moderations
Francesca Freeman – WSJ.com
The board of the London Metal Exchange has approved proposed changes to its warehousing policy aimed at cutting the length of time users have to wait to gain access to metal, the exchange said Thursday. Under the new rules, LME-registered warehouses experiencing outgoing delivery delays of 50 days or more will have to ship out more metal than they take in.
jlne.ws/HIxqyM

U.S. speed-trader Don Wilson and firm charged with price rigging
Douwe Miedema | Reuters
A Chicago speed-trading firm and its prominent founder were charged with manipulating prices by the U.S. derivatives regulator on Wednesday. The Commodity Futures Trading Commission filed a civil enforcement action against Donald R. Wilson and DRW Investments – named after him – for manipulating the price of an interest rate futures contract in 2011, the agency said.
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***** So what we have here at the core is a conflict in the marketplace about what something is worth. On the one hand we have Don Wilson, one of the greatest traders of our time. Wait for the details on this to come out on who is the counterparty on the other side of the trade. It will astound you. I have my money on Don.

U.K. to Fight Monopolistic Derivatives Exchanges at EU
Svenja O’Donnell & Robert Hutton – Bloomberg
Britain will fight “monopolistic” exchanges in the European Union in a bid to boost competition in the market for clearing derivatives trades, according to U.K. Financial Secretary to the Treasury Sajid Javid.
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NYMEX traders allege big firms manipulated Brent oil prices
Reuters
Four NYMEX traders have alleged that the North Sea Brent crude oil market has been manipulated by oil majors and trading houses since at least 2002, in a class action they brought in the wake of a wide ranging European Commission inquiry.
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Pension funds need a cash injection – soon
Mark Cobley – Financial News
We are all used to talk of pensions deficits, and watching them see-saw up and down by several billion pounds every month in response to minute changes in gilt-yields has a way of diminishing their importance. New analysis from the consultancy and asset-manager Cardano looks at these shortfalls in a different way – by cashflow. Its conclusions should make finance directors, and everyone else, sit up and take notice. They bring home just how urgent the problem has become.
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Prosecutors seek clues on alleged tax dodgers from two U.S. banks
Reuters
U.S. authorities are seeking information from Citigroup Inc’s Citibank NA and Bank of New York Mellon Corp to uncover the identities of U.S. citizens who may have been hiding money in Swiss bank accounts to avoid taxes.
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UK regulator sees no evidence of gas price rigging
Ajay Makan in London – FT.com
The Financial Conduct Authority has found no evidence that UK gas prices were manipulated in September last year. Findings published by the UK financial regulator on Thursday will come as a relief to commodity traders and the price reporting agencies that govern their markets, which have been beset by allegations of price rigging.
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Wall Street bonuses to rise 5 to 10 percent this year: consultant
Reuters
Wall Street’s biggest risk takers – its bond traders – will probably see their bonuses drop this year, while people in safer roles, such as money managers, will likely get a boost, according to a forecast by compensation consulting firm Johnson Associates.
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Regulatory

CFTC Seeks Public Comment on Amended Request from CME Group to Amend Rule 538 (Exchange for Related Positions)
jlne.ws/HIxqPc

Gensler stands ground on cross-border SEF rules
IFRe
CFTC chairman Gary Gensler stood his ground on a controversial rule making earlier today, reiterating the requirement for registration of foreign-based trading platforms as swap execution facilities where activity is connected to US commerce.
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CFTC’s Gensler Says LIBOR Is Based On Fiction, Not Fact
Greg MacSweeney – Wall Street & Technology
Gary Gensler, the chairman of the Commodity Futures Trading Commission since 2009, seemed more at ease this year during his keynote address at the Futures Industry Association’s Futures & Options Expo in Chicago. Gensler, who has addressed the FIA Expo for the past five years, spent a good part of his speech highlighting what the CFTC has accomplished, rather than defending his regulatory body’s decisions as he had to do in the past.
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A Transformed Marketplace – Remarks Of CFTC Chairman Gary Gensler’s Before The FIA 2013 Futures & Options Expo
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SEC chair questions growth metrics used by technology companies
Reuters
U.S. securities regulators are concerned that some metrics of growth used by technology companies are confusing investors, and may not translate into big profits, Securities and Exchange Commission Chair Mary Jo White said Wednesday.
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Remarks At Practising Law Institute’s 45th Annual Securities Regulation Institute, SEC Chair Mary Jo White, New York, N.Y., Nov. 6, 2013
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BlackRock vice-chairman warns of data burden
Joe Mcgrath in Brussels – Financial News
BlackRock vice-chairman Barbara Novick has attacked international regulators for duplicating regulatory burdens by jurisdiction.
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Statement Of Support Of Chairman Gary Gensler – Position Limits
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Building a common language in the mortgage market
Speech by Linda Woodall, Director of Mortgages and Consumer Lending FCA at the Council of Mortgage Lenders (CML) – Mortgage Industry Conference and Exhibition.
jlne.ws/HIxr5z

UK’s Financial Conduct Authority (FCA) Publishes October Data On Banks’ Review Of Sales Of Interest Rate Hedging Products.
jlne.ws/HIxr5E

ISDA Statement On Letter From Major Resolution Authorities
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[BCSC] Public contracts of $10 million or more subject to Integrity in Public Contracts Act beginning in December 2013
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Exchanges & Trading Facilities

NYMEX set to adopt new WTI crude oil specs from end-2014
Reuters
CME Group Inc plans to announce new specifications and tests for West Texas Intermediate (WTI) crude backing its benchmark oil futures contract early next year, and implement the new specs by the end of 2014, a person familiar with knowledge of the plan said on Wednesday.
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LME lawsuits reach 18 and counting
Michelle Price – Financial News
The number of lawsuits faced by the London Metal Exchange over its warehousing processes has reached 18 and is expected to rise further, the exchange’s parent company Hong Kong Exchanges & Clearing said today.
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LME’s Silence on Warehousing Not First Time It’s Left Market Hanging
Matt Day and Laura Clarke – MoneyBeat – WSJ
The London Metal Exchange is keeping the metal market waiting for its decision on how to fix its warehouse system. To anyone who’s paid attention to how the 136-year-old exchange does business, the delay shouldn’t be a surprise.
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NYSE Euronext Announces Trading Volumes For October 2013
NYSE Euronext (NYX) today announced trading volumes for its global derivatives and cash equities exchanges for October 2013[1]. Global derivatives average daily volume (“ADV”) of 6.5 million contracts, excluding Bclear in October 2013 increased 1.3% compared to October 2012, but decreased 1.3% from September 2013. U.S. equity options volumes in October 2013 decreased 2.9% compared to October 2012, but increased 7.7% sequentially. ADV in U.S. cash equities declined 4.8% year-over-year and decreased 3.5% month-over-month. European cash equities ADV in October 2013 increased 8.1% compared to October 2012 and increased 3.0% from September 2013 levels.
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IntercontinentalExchange Reports 3Q13 Adjusted Diluted EPS of $1.97, +10% yty; Adjusted Net Income Attributable to ICE of $145MM
IntercontinentalExchange, Inc., a leading operator of global markets and clearing houses, today reported financial results for the third quarter of 2013. Consolidated revenues were $338 million, an increase of 5% from the third quarter of 2012. Consolidated net income attributable to ICE was $141 million, up 8% from the third quarter of 2012, and diluted earnings per share (EPS) increased 7% over the third quarter to $1.92 on a GAAP basis.
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NASDAQ OMX October 2013 Volumes
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Customer Class Representatives, CME Group, And MF Global Trustee Announce Agreements To Expedite Payments To MF Global Customers
Press Release
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Goldman Sachs placing 5.34 pct of Spain’s BME
Reuters
Goldman Sachs said on Wednesday it was placing a 5.34 percent stake of Spain’s stock market operator BME through an accelerated book building process.
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Facebook Misadventure Means Scrutiny on Exchanges in Twitter IPO
Bloomberg
Eighteen months after Facebook Inc.’s initial public offering was crippled by a Nasdaq OMX Group Inc. computer, equity markets get a shot at redemption tomorrow when the New York Stock Exchange hosts the debut of Twitter Inc.
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Twitter: IPO Of 70,000,000 Shares AT Price Of USD26 Per Share
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NYSE to Suspend Trading in American Depositary Shares of Suntech Power Holdings Co., Ltd. and Commence Delisting Proceedings
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Bermuda Stock Exchange Will Be Closed For Remembrance Day Holiday
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TMX Group Equity Financing Statistics – October 2013 – Toronto Stock Exchange, TSX Venture Exchange
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Hedge Funds & Managed Futures

Expanding SWFs look for alternatives
Louise Bowman – Euromoney magazine
This year, sovereign wealth funds have grown at their fastest rate since 2007, adding $750 billion to assets under management in the year to October. A recent study by alternative assets research firm Preqin shows that total assets under management in sovereign wealth funds globally now exceed $5 trillion, having increased from $4.62 trillion to $5.38 trillion over the past year.
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Buy-side welcomes swap futures as OTC market undergoes structural reform
Hedgeweek
Under US regulatory reforms, specifically with respect to the Dodd-Frank Act and CFTC regulation pertaining to swap clearing and the adoption of swap execution facilities (SEFs), the market structure of OTC swaps is going through a metamorphosis. Asset managers must now decide how far to embrace swap futurisation by using products like the deliverable swap future launched by CME Group last December.
jlne.ws/HIxrme

Prips fallout weighs heavy on fund firms
Joe McGrath in Brussels – Financial News
Unintended consequences from the European Packaged Retail Investment Products (Prips) regulations will put the asset management industry at risk of losing business to insurance companies and banks, according to the European Fund and Asset Management Association.
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Steve Cohen in His Own Words (in 2011)
MoneyBeat – WSJ
The public can get a rare peek at Mr. Cohen, if not quite in-the-flesh, in snippets of a video deposition published online today by Frontline, which plans to air a program on Mr. Cohen this winter. SAC Capital Advisors LP has agreed to plead guilty in an insider-trading indictment and pay $1.8 billion in penalties; a Manhattan federal judge on Wednesday approved the civil part of the settlement.
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Big data presents opportunities for hedge funds
Gideon Ozik, Ronnie Sadka – Risk.net
The use of unstructured data in creating an alternative information edge is a potential new source of uncorrelated excess returns
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Capital introduction favours large hedge funds
Emma Cusworth – Risk.net
Demand for ‘sticky’ money and market intelligence from large institutionalised hedge funds is squeezing out emerging talent
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Return of Cash Sparks Emerging-Market Rallies
Anjani Trivedi, Ben Edwards and Jake Lee – WSJ.com
Cash is returning to emerging markets, sparking big stock rallies and a surge in fundraising as calm in the U.S., combined with low interest rates, spurs global investors to try to juice up returns before the end of the year.
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High-yield market goes transatlantic
Claire Coe Smith – Financial News
European borrowers are benefiting from high investor demand for access to the debt markets and a shortage of deals, with refinancings dominating the landscape amid a scarcity of sponsor-backed mergers and acquisitions.
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GrainCorp CEO says regulation can address ADM deal concerns
Reuters
Competition concerns about Archer Daniel Midland Co’s A$3.0 billion ($2.9 billion) takeover of GrainCorp should be addressed by regulation, the Australian company said on Thursday as political tensions over the deal resurfaced.
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CFTC Commitments Of Traders Reports Update
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Banks & Brokers

UK regulator urges banks to speed up swaps compensation
Reuters
Britain’s financial regulator has written to the bosses of the country’s biggest four banks to tell them to speed up compensating small firms mis-sold risky products designed to insure them against rising interest rates.
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Wells Fargo settles federal mortgage claims for $335 million
Reuters
Wells Fargo & Co. said on Wednesday that it had reached a $335 million settlement with a U.S. government agency over claims that it had misled certain investors in the bank’s mortgage bonds.
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Société Générale and Crédit Agricole Aim for Swap on Derivatives Venture
DAVID JOLLY – NYTimes.com
Société Générale and Crédit Agricole, two of France’s biggest banks, said Thursday they were in talks about an asset swap that would give Société Générale full control of their Newedge Group derivatives venture.
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Why Fannie and Freddie Are Paying Back Uncle Sam
Nick Timiraos – MoneyBeat – WSJ
Fannie Mae, along with Freddie Mac, is approaching the point at which it will have sent more money to the Treasury in dividends than the amount it borrowed over the past five years. A few years ago, the conventional wisdom in Washington said that Fannie Mae and Freddie Mac wouldn’t ever be able make taxpayers whole for the 2008 bailouts of the mortgage-finance giants. Those who haven’t followed the companies closely will be surprised to learn that Fannie and Freddie are now on the brink of doing just that.
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BofA’s Moynihan Tiptoes Through Minefield
David Reilly – MoneyBeat – WSJ
Many bank chiefs love to expound on the state of the world. Bank of America head Brian Moynihan, who got into hot water a few years back for speaking too optimistically about upcoming capital returns, has learned that it’s sometimes better to keep your own counsel.
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SocGen plans 375 job cuts across Europe: union
Reuters
French bank Societe Generale plans to cut 375 jobs across Europe in its securities-services business, a staff union said in a newsletter posted online after meeting with management.
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Goldman Sachs legal-loss reserves may be $4 billion short: CFO
Reuters
Goldman Sachs Group Inc may be underreserved for legal losses by up to $4 billion, Chief Financial Officer Harvey Schwartz said on Wednesday.
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Crédit Agricole to Fight Euribor Accusations
WSJ.com
Crédit Agricole SA Chief Executive Jean-Paul Chifflet said Thursday the French bank would fight any accusation by the European Commission that it took part in the alleged rigging of the euro interbank offered rate, or Euribor.
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Spanish judge orders arrest of five senior bankers
Tobias Buck in Madrid – FT.com
A Spanish judge has ordered the arrest of five senior bankers over their role in the collapse of CAM, the now-defunct regional savings bank that became an early symbol of Spain’s financial crisis.
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Fresh departures at DC Advisory
Alec Macfarlane and Matt Turner – Financial News
Two senior executives at DC Advisory, the European corporate finance business owned by Daiwa Capital Markets, have left the firm or are in the process of leaving, according to a person familiar with the situation.
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FNEX Adds Kingdom Trust Company to Its Online Investment Marketplace FNEX.com
FNEX and Kingdom Trust Company announced today that all accredited investors will have access to FNEX.com through the Kingdom Trust Company platform.
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Clearing & Settlement

Alpha Omega Makes Global Launch of Post-Trade Solution
Jake Thomases – WatersTechnology
Alpha Omega Financial Systems, a post-trade technology provider based in San Francisco, has globally launched FIXAffirm, a post-trade solution based on the industry standard FIX protocol.
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SGX proposes changes to derivatives clearing fund and OTC financials default management
Singapore Exchange Derivatives Clearing Limited is proposing refinements to its Clearing Fund structure, and improvements in the auction process for managing a default of a Member that clears over-the-counter financial derivatives.
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Indexes & Products

Turkey and Russia Join the Big Guns in Barclays Index
Serena Ruffoni – MoneyBeat – WSJ
Turkey and Russia look set to feel The Index Effect. And that could mean fresh inflows for the two markets which have been battered by the emerging markets selloff over the past six months.
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New OMX Copenhagen Benchmark Portfolio Selected – The New Portfolio Of The OMX Copenhagen Benchmark Index Will Become Effective On December 2, 2013
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New OMX Helsinki Benchmark Portfolio Selected – The New Portfolio Of The OMX Helsinki Benchmark Index Will Become Effective On December 2, 2013.
jlne.ws/HIxrTb

New OMX Stockholm Benchmark Portfolio Selected – The New Portfolio Of The OMX Stockholm Benchmark Index Will Become Effective On December 2, 2013
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Oklahoma Firefighters Pension And Retirement System Adopts NASDAQ Global Index Family As Preferred Benchmarks – Significant Cost Savings And High Index Quality Cited By The Pension System
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Technology

Trading Technologies And Ullink To Provide An Integrated Execution Management System And Order Management System (EMS/OMS) Solution
Trading Technologies International, Inc. (TT) and Ullink, global providers of market leading connectivity and trading solutions for the financial community, today announced they have partnered to integrate Ullink’s order management system (OMS) with TT’s execution management system (EMS) software and application programming interface (API) solutions.
jlne.ws/HIxtdW

TT Launches MultiBroker Trading Solution
Trading Technologies International, Inc. (TT), a global provider of high-performance trading software for derivatives professionals, today announced the production release of its MultiBroker trading solution.
jlne.ws/HIxrTj

Orc Group Holding AB and Orc Group invite to an investor telephone conference on November 21
Orc Group Holding AB and Orc Group invite you to attend an investor telephone conference (in English) on Thursday, November 21, 2013 at 3.00 p.m. CET. CEO Torben Munch and CFO Tony Falck will present and comment on the group´s interim report for January – September 2013.
jlne.ws/HIxtdY

RFConnect Wins Prestigious Chicago Innovation Awards
RFConnect is a financial connectivity network that utilizes cutting-edge wireless technology. At its core, it consists of a long-range, free space optic laser and a custom-designed millimeter wave radio to deliver nearly 100% availability and scalable capacity.
jlne.ws/HIxrTl

ICAP and Interactive Data Corporation announce new collaboration for OTC data distribution
ICAP plc, a leading markets operator and provider of post trade risk mitigation and information services, and Interactive Data Corporation, a leading global provider of managed ultra-low latency IT and market data feed services designed to facilitate electronic trading, today announced a new collaboration between the two firms.
jlne.ws/HIxtue

Allston Establishes Commodities, Energy Teams in Chicago, Opens First New York Office
Chicago-based Allston Holdings LLC, parent of one of the nation’s leading proprietary electronic trading firms, today announced that the firm has established new commodities and energy trading teams in Chicago and opened its first office in New York, as part of its strategic growth plan.
jlne.ws/1hlYl33

Banks shift technology focus from speed to experience
Solomon Teague – Euromoney magazine
The rationale behind technology has evolved over the last couple of decades. Where in the 1990s investment in technology was principally about increasing the speed at which transactions could be executed, and thereby saving cost, recent enhancements have been more about improving functionality and the customer experience.
jlne.ws/HIxrTn

Options Bolsters Midwest Sales Team, Names Former NYSE Euronext Executive Roark Siko VP of Sales
Options, the leading private financial cloud provider for the global capital markets industry, has today announced that the former NYSE Euronext and Arca executive, Roark Siko, has joined the firm as VP of Sales and Customer Service for the Midwest. The IaaS provider made the announcement at the start of the 2013 FIA Futures and Options Expo in Chicago.
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Infront Launches Tweetwires Twitter Data Filtering Service
Faye Kilburn – WatersTechnology
Norwegian market data and trading technology vendor Infront will today announce a new service, dubbed Infront Tweetwires, which filters Twitter for real-time news and sentiment related to specific industry sectors and news events, to help users extract valuable content from the social media site.
jlne.ws/HIxtuh

Eze Software Group’s RealTick EMS Integrates CQG Order Routing Network to Expand Futures Connectivity
Eze Software Group, a premier provider of global investment technology, today announced that CQG’s Continuum Order Routing Network is now available in Eze Software’s multi-broker, cross-asset electronic execution platform, the RealTick EMS.
jlne.ws/HIxrTp

Forexware Partners With Tradenext Limited
Forexware, a leader in forex trading technology, announced today it is partnering with Tradenext, an Indian-owned, London-based forex broker, to provide technology and liquidity solutions for Tradenext’s retail forex platforms.
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Enforcement

SAC’s $1.2 Billion Settlement Clears One Judicial Hurdle and Awaits Another
PETER LATTMAN – NYTimes.com
Federal prosecutors and SAC Capital Advisors cleared a legal hurdle on Wednesday after Judge Richard J. Sullivan said he would sign off on the civil portion of the hedge fund’s insider trading guilty plea and roughly $1.2 billion penalty.
jlne.ws/HIxuOR

FINRA Fines TD Ameritrade Clearing and SG Americas Securities a Total of $1.8 Million for Required Options Positions Reporting and Supervisory Violations
The Financial Industry Regulatory Authority announced today that it has fined TD Ameritrade Clearing, Inc. $1,150,000 and SG Americas Securities, Inc. $675,000 for failing to report or accurately report certain large options positions and for related supervisory deficiencies.
jlne.ws/HIxtum

Ex-CEO of collapsed Virginia bank gets 23 years for fraud
Reuters
A former chief executive of Bank of the Commonwealth was sentenced on Wednesday to 23 years in prison and ordered to pay $333.6 million in restitution for running what federal prosecutors called a massive fraud that led to the failed Virginia lender’s demise.
jlne.ws/HIxtup

CFTC Obtains Restraining Order against Commodity Pool Operator and Commodity Trading Advisor, AlphaMetrix, LLC, Alleging Misappropriation of Pool Funds and Sending False or Misleading Statements
On November 5, 2013, Federal District Judge Joan H. Lefkow issued a consent restraining Order that freezes AlphaMetrix’s assets, protects books and records, and appoints a corporate monitor to oversee the distribution of pool funds to participants.
jlne.ws/HIxtuq

CFTC Charges Donald R. Wilson and his Company, DRW Investments, LLC, with Price Manipulation
Press Release
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Environmental & Energy

Deutsche Bank Energy Analyst Lewis Leaves After 14 Years
Bloomberg
Mark Lewis, head of energy research at Deutsche Bank AG (DBK)’s commodities unit, left last month after 14 years with the company.
jlne.ws/1b7rKIK

Enbridge to Move Ahead With Northern U.S. Pipeline
The Wall Street Journal
Enbridge Inc.(ENB) said Wednesday it is forging ahead with efforts to build a pipeline to move oil from North Dakota to Midwestern U.S. refineries, despite regulatory hurdles and local opposition.
jlne.ws/1c0K5FD

California says ready to link carbon market with Quebec
Reuters
California is ready to link its carbon cap-and-trade program with a similar effort in the Canadian province of Quebec, a move that could pave the way for further expansion of the market in coming years, state officials said on Tuesday.
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Asia-Pacific

OSE DJIA Futures Open Interest Exceeds One thousand contracts
The open interest of OSE DJIA Futures stood at 1,004 contracts as of November 6, exceeding 1,000 mark for the first time since the May 28 2012 launch.
jlne.ws/HIxuOY

China exchange hatches plan for egg futures trading
GMA News Online
Recognizing that investors should not put all their eggs in one basket, a Chinese commodities exchange is offering a novel futures contract to hedge against risk. The Dalian Commodity Exchange, China’s main market for agricultural product trading, said it will begin trading chicken egg futures on Friday.
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SGX selects LSEG’s MillenniumIT for new post-trade system
Singapore Exchange has chosen London Stock Exchange Group’s MillenniumIT as the provider of a new post-trade system for Singapore’s securities market.
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Deutsche Bank wins approval for sub-branch in Shanghai free trade zone
Reuters
Deutsche Bank (China) said on Thursday it has received approval from the Chinese regulator to set up a sub-branch in the new Shanghai free trade zone, ahead of an important Communist Party policy meeting this weekend.
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Mrs. Watanabe Goes on JGB Shopping Spree
Eleanor Warnock – MoneyBeat – WSJ
Feeling upbeat about prospects for an economic recovery, Japanese retail investors — the proverbial Mrs. Watanabes — have gone on something of a shopping spree. And what is the product they have been clamoring for? The lowest-yielding bonds in the world.
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Why don’t you slip into something comfortable, like a pro-business city state
Dan McCrum | FT Alphaville
We had allowed the World Bank’s annual ranking of, well, everyone by the ease of which their country facilitates business to pass unremarked. Singapore retained its top spot for the sixth year in a row, under criteria that clearly take no account of chewing gum preferences. However, Maquarie have dug a little deeper into the survey results, and they find that the Philippines is on the up and up, while warning lights are flashing in China which slid to 96th globally, from 78th four years ago.
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Hong Kong Exchanges & Clearing (HKEx) Goes Live With NASDAQ OMX’s Genium INET Trading & Clearing Platform
New Derivatives Market Trading & Clearing Engine Launches A Month And A Half Ahead Of Schedule
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Thai Futures Exchange Affirms Derivatives Trading To Operate Normally
The Thailand Futures Exchange PCL (TFEX) announces that its derivatives trading system is ready to operate as usual today. The exchange has monitored the system closely in order to ensure that trading will run without interruption.
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KVH First Nonmarket-Member To Offer JPX Co-Location Service (OPEN) – Further Completes full-Suite Offering For Co-Location, Proximity And Low Latency Connectivity
KVH Co. Ltd., Asia’s leading information delivery platform headquartered in Tokyo, Japan today announced that it will begin offering the Japan Exchange Group Co-Location service to access Osaka Securities Exchange’s derivatives trading system in a low latency environment.
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Frontier Markets

UK corporates ready to follow sovereign into sukuk
by Kanika Saigal – Euromoney magazine
As London positions itself as a hub for Islamic finance on the occasion of the ninth World Economic Islamic Forum, Badlisyah Abdul Ghani, CIMB Islamic CEO, predicts UK corporates are already primed to enter the sukuk market.
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Australia Commodity Head Leaves Malaysia’s CIMB
Gillian Tan – MoneyBeat – WSJ
CIMB Group Holdings Bhd.’s Australian Head of Commodity Strategy Daniel Hynes has left the Malaysian bank following a restructuring, a person familiar with the matter said Thursday.
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EM bond rebound brings record within reach
Robin Wigglesworth – FT.com
Debt sales from the developing world have rebounded after a summer of turmoil and the US budget crisis stunted demand, leading analysts and bankers to predict the second record year of bond issuance in a row.
jlne.ws/HIxv5l

Argentina: It’s not just about the politics, stupid
Rob Dwyer – Euromoney magazine
Argentine president Cristina Kirchner’s growing unpopularity and health problems suggest she will not seek a third term of office in 2015. This raises uncertainties about economic reform. Why are Argentina’s bankers so optimistic?
jlne.ws/HIxtKX

India Gives Foreign Banks New Door Into Local Market
KEITH BRADSHER and ELLEN BARRY – NYTimes.com
India’s central bank unveiled late Wednesday a far-reaching set of regulations to allow foreign banks into the country’s long-protected domestic market. But it demanded that they do so through subsidiaries incorporated in India and said that eligibility would be limited to banks from countries that reciprocate by letting in Indian banks.
jlne.ws/HIxtL0

Malaysia’s Maybank to explore Islamic banking in the US
Reuters
Malayan Banking Bhd , Southeast Asia’s fourth-largest bank, said on Thursday it has identified Islamic banking as one of four areas of expansion in the United States.
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NSEL diverted investor funds, says Grant Thornton forensic audit
Business Line
The forensic audit of the beleaguered National Spot Exchange Ltd by tax and business consultancy firm Grant Thornton has found that the exchange diverted margin money of clients and investors for its own business purposes.
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NASDAQ Dubai Academy Courses Will Provide Capital Markets Overview, Plus Advice On IR And PR Programmes
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Miscellaneous

Boardrooms blind to shareholder opinion on pay and performance
Alison Smith, Chief Corporate Correspondent – FT.com
UK shareholders and company directors hold diametrically opposed views on executive pay and boardroom performance, a new survey has revealed. While the UK executive pay debate has more recently pitted business against the wider world, research carried out by Hedley May, the executive search firm, exposes sharp divisions among the corporate participants.
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John Lothian Newsletter

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Past JLN Newsletters

When Americans Took to the Streets Over Inflation

When Americans Took to the Streets Over Inflation

First Read $42,376/$300,000 (14.1%) ++++ Hits & Takes John Lothian & JLN Staff CME Group and FTSE Russell are putting on a webinar TODAY at 11 a.m. ET titled, "Russell U.S. recon: Mitigating risk with derivatives." If you are invested in small cap stocks, you...

Gensler says SEC to review payment for order flow

Gensler says SEC to review payment for order flow

First Read $42,376/$300,000 (14.1%) ++++ Hits & Takes John Lothian & JLN Staff The new CME Group micro Treasury futures contracts are not the basis point futures I have suggested, but they are very close and maybe better. Certainly the micro name will enhance...

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