First Read

Bits & Pieces
by John J. Lothian

John Lothian News is looking for a venue in London to hold several sessions of our upcoming Intern Education Series at the end of June. We are planning to hold the events from June 30 to June 2, but have yet to find a suitable venue for the 100 to 200 people we hold to have attend.

If you know of a suitable location, or your firm has such facilities, please contact me at johnlothian@johnlothian.com.

A correction from yesterday. In conversation with Peter Nabicht of the Modern Markets Initiative, I wrote that he spoke with author Michael Lewis for 30 minutes. Nabicht did not talk to Lewis, but did talk to the author, or reporter of the Chicago Tribune story about the University of Chicago Professor who is supporting batch auctions as a market structure.

Yesenia Duran has returned to Futures Magazine after a seven year absence. She is now Managing Editor for the publication. You can follow her on Twitter at @YesiFutures.

Advantage Futures has been approved as a clearing member of the DME. They are very excited about this latest development. Advantage is having a seminar in their office on Thursday in association with ICE dicussing the financial products of ICE U.S. The seminar is on April 3 from 3 to 4 PM at 231 South LaSalle Street, Suite 1400. Contact Ashley Brusso at abrusso@advantagefutures.com for more details.

Last month ISDA launched ISDA SwapsInfo, which they claim is “the most comprehensive free site for examining and charting DTCC trade repository data on interest rate derivatives (IRD) and credit default swaps (CDS).” This month they added new functionality allowing users to look at trades taking place on or off a Swap Execution Facility (SEF). Simply go to the drop-down menu labeled VENUE (see image below) and select On, Off or both.
www.swapsinfo.org/charts/derivatives/price-transaction

The FIA Law & Compliance Division will hold their Annual Law & Compliance Conference on the Regulation of Futures, Derivatives and OTC Products from May 7-9, 2014 at the Baltimore Marriott Waterfront, Baltimore, Maryland. Register at http://jlne.ws/1liQAJX

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Exchange CEO Series – Singaporean shift: SGX’s Magnus Böcker says region is primed for growth
JohnLothianNews.com
SGX CEO Magnus Böcker has seen tremendous growth at his exchange over the past year and the Singapore market is poised to expand further in the coming year.
Böcker, who sat down with JLN editor-in-chief Jim Kharouf at the FIA Boca Conference this month, said SGX has increased its derivatives volume 40 percent in 2013 and is exploring a host of new partnerships and initiating new product launches.
jlne.ws/1mxeYdM

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FBI Probes High-Speed Trading
By Scott Patterson and Michael Rothfeld
Wall Street Journal
The FBI has launched a wide-ranging investigation into high-speed trading with an eye on whether some firms are acting on fast-moving market information that isn’t available to other traders.
jlne.ws/1knHTwA

***** It is not true that the FBI thought this was a drug case.

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Speed Traders Play Defense Against Michael Lewis’s Flash Boys
By Matthew Philips, Bloomberg
In Sunday night’s 60 Minutes interview about his new book on high-frequency trading—Flash Boys—author Michael Lewis got right to the point. After a brief lead-in reminding us that despite the strongest bull market in years, American stock ownership is at a record low, reporter Steve Kroft asked Lewis for the headline: “Stock market’s rigged,” Lewis said nonchalantly. By whom? “A combination of stock exchanges, big Wall Street banks, and high-frequency traders.”
jlne.ws/1oljJJh

***** This is not going to end well for Mr. Lewis, except he will probably sell a lot of books.

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Michael Lewis’s flawed new book
By Felix Salmon, Reuters
I’m halfway through the new Michael Lewis book – the one that has been turned into not only a breathless 60 Minutes segment but also a long excerpt in the New York Times Magazine. Like all Michael Lewis books, it’s written with great clarity and fluency: you’re not going to have any trouble turning the pages. And, like all Michael Lewis books, it’s at heart a narrative about a person — in this case, Brad Katsuyama, the founder of a small new stock exchange called IEX.
jlne.ws/1dK0kgH

***** Felix Salmon rightly points out what Mr. Lewis left out.

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No, Michael Lewis, the US Equities Market Is Not Rigged
Larry Tabb – TABB Group
While Michael Lewis’s new book, “Flash Boys,” is an amusing read and does talk about the very complex execution framework of the US equities market, he has not portrayed the full story of the US equities market, leaving much on the cutting-room floor.
jlne.ws/1pHGdiK

***** Since when is arbitrage an evil?

***DA: Whether it is building a faster pipe, getting a spot next to the pit broker, or training carrier pigeons, there have always been speed and information advantages to those savvy enough to find them. My problem with Lewis and his ilk is the notion that arbitrageur profits are tantamount to stealing. The only thing that has changed with the advent of HFT is the manner in which liquidity providers are compensated for taking the other side of your trade. Do you want HFT guys racing paper for a couple cents or a return to wider markets? Pick your poison.

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“The Stock Market is Rigged!”
The Reformed Broker
by Joshua M Brown
Yes, I’m excited about Michael Lewis’s new book Flash Boys coming out this week but no, I don’t get worked up about high frequency trading anymore. I’m going to tell you a quick story and then you won’t either.
jlne.ws/1lzMCzg

***** Once upon a time there was…

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Fault Runs Deep in Ultrafast Trading
By ANDREW ROSS SORKIN
New York Times
“The United States stock market, the most iconic market in global capitalism, is rigged.”
That’s what Michael Lewis told Steve Kroft on the CBS show “60 Minutes” on Sunday evening. It was a clever, if hyperbolic, way for Mr. Lewis to describe the topic of his important new book, “Flash Boys,” a make-your-blood-boil read about the abusive way that high-frequency trading works.
jlne.ws/1lzKNm0

***** Mr. Sorkin rightly points out the incentives for the exchanges to participate in the success of their traders, in this case HFT traders.

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Michael Lewis Is Entirely Wrong About High Frequency Trading Hitting The Little Guy
by Tim Worstall, Contributor
Forbes
It appears that Michael Lewis has a new book out today, on in which he talks about high frequency trading on the stock market. And he makes the claim that this practice in some way takes money from the little guy to give to the capitalist profiteers running those HFT systems. No, I’m sorry but this will not do. The effect on the small investor is entirely the other way around. Small investors benefit from the existence of HFT.
jlne.ws/1hvor1F

****** Mr. Worstall makes several points I mentioned yesterday. For the small investor, HFT is a benefit, making tight liquid markets available.

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From Getco to Need to Know News and More: WSJ’s Stories on High-Frequency Trading
WSJ MoneyBeat by Scott Patterson
Michael Lewis’s take-down of high-speed trading, Flash Boys, had Wall Street buzzing faster than trading electrons zipping through the New Jersey suburbs Monday. The book follows a small band of traders and computer wonks as they unravel the mystery that is today’s highly complex and superfast markets.
jlne.ws/1dK2WuX

***** The response to this book was high speed.

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Scrutiny for Wall Street’s Warp Speed
By MICHAEL J. DE LA MERCED and WILLIAM ALDEN
New York Times
Wall Street traders are used to waking up before dawn. But on Monday, they didn’t rush to read the overnight news from Asia — it was the latest from Michael Lewis.
jlne.ws/1jvwJXY

***** Monday mornings are that way sometimes.

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SEC settles with two insider-trading husbands
San Jose Mercury News
Next time you talk over the phone with a colleague about that bombshell your employer’s about to drop, you might make sure your spouse isn’t eavesdropping. According to an insider-trading complaint by the Securities and Exchange Commission announced Monday, the wives of Tyrone Hawk of Los Gatos and Ching Hwa Chen of San Jose found out the hard way. After the SEC charged Hawk and Chen with using proprietary information gleaned from their wives to make stock trades resulting in hefty payouts, the two men agreed to pay even heftier sums to settle the SEC charges.
jlne.ws/1gXkGn3

***** I only get insider information from my kids.

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EBS launches app for spot FX market
Finextra
EBS, Icap’s market-leading electronic FX business, announces today that it is launching ‘Watch EBS’, a new mobile application that gives customers an up-to-date overview of the global spot FX market.
jlne.ws/1hVRjN8

***** This is not to be confused with the new EBS Watch, a wearable technology that reads your sweat level to produce trading signals.

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MarketsWiki

MarketsWiki Page of the Day
IEX Group

People

Bradley Katsuyama
Rob Park
Yesenia Duran
Jean-Francois Conil-Lacoste
Ronan Ryan

Companies, Organizations and Groups

IEX Group; Fimat USA Inc.; PowerNext; European Commodity Clearing AG (ECC)

Statistics

Page views: 47,967,030, Pages:20,432, Articles:7,905, Edits:181,383
MarketsWiki Statistics

Lead Stories

FBI Investigates High-Frequency Traders for Abuse of Information
Bloomberg
By Keri Geiger and Patricia Hurtado
Federal agents are investigating whether high-frequency trading firms violate U.S. laws by acting on nonpublic information to gain an edge over competitors.
jlne.ws/QBRiYQ

CME Group prevails in lawsuit over grain settlement rules
Reuters
By Tom Polansek
CHICAGO, March 31 (Reuters) – CME Group Inc can keep in place rules that factor in electronic trades for settling end-of-day grain futures prices, an Illinois judge ruled on Monday following a legal challenge from veterans of the Chicago trading floor.
Cook County Circuit Court Judge Jean Prendergast Rooney in Chicago ruled that CME Group, which owns the Chicago Board of Trade, had the authority to implement the settlement method in June 2012 without taking a vote among certain stakeholders.
jlne.ws/1pHra91

Citigroup uncovered rogue trading in Mexico, fired two bond traders
Reuters
By Elinor Comlay and David Henry
April 1 (Reuters) – Citigroup’s Mexican subsidiary Banamex fired two bond traders after uncovering rogue trading last year, two sources close to the matter said, raising fresh questions over what controls the troubled unit had in place to police employees.
jlne.ws/1gkfq6S

SGX proposes electricity futures
Singapore Exchange (SGX) is consulting the public on the proposed introduction of SGX Uniform Singapore Energy Price (USEP) Quarterly Base Load Electricity Futures, to be traded on SGX-Derivatives Trading platform and cleared on SGX-Derivatives Clearing house. This is the first electricity futures to be introduced in Asia. The proposed contract will be a standard, cash-settled futures contract listed as contract quarters (i.e. January to March, April to June, July to September, and October to December).
jlne.ws/1i9J15r

CFTC Enlists Treasury Support for Review of Swap-Data Oversight
By Silla Brush, Bloomberg
The U.S. Commodity Futures Trading Commission, which for more than a year has cited an inability to fully understand swaps-market data, has enlisted the help of a Treasury Department unit to improve oversight.
jlne.ws/1hYssIt

Hong Kong, New Zealand investigate banks for alleged FX manipulation
By Rachel Armstrong
(Reuters) – Regulators in Hong Kong and New Zealand said on Tuesday that they are investigating banks’ conduct in the foreign exchange market as part of an investigation tied to the global probe into FX markets.
jlne.ws/1hYCTvJ

‘Swaptions’ trade leaps over regulatory hurdles
By Tracy Alloway and Michael Mackenzie in New York
Financial Times
An obscure pocket of the derivatives world has managed to escape the effects of new regulation to explode in popularity and size.
jlne.ws/PdRlsS

This could be the end of the Bitcoin era
CNBC
By Lawrence Lewitinn, Talking Numbers
Bitcoin may be thought of as an alternative currency – but just don’t say that to the IRS.
The US Internal Revenue Service says that Bitcoin is property, not currency. That means profits in Bitcoin get taxed at the lower capital gains rate rather than income rate. But, it also means that losses in Bitcoin are also at the capital gains tax rate. That helped Bitcoin’s value to drop 20% in just the past week.
jlne.ws/1gkfMu9

GFI Group selects Lombard Risk REPORTER for EBA Common Reporting (COREP/XBRL) regulatory reporting platform
European Banking Authority’s (EBA) Common Reporting (COREP)
London and New York, 1st April 2014: Lombard Risk Management plc (Lombard Risk), a leading provider of integrated regulatory reporting, compliance and collateral management solutions for the financial services industry, is pleased to announce that GFI Group has selected Lombard Risk REPORTER for EBA Common Reporting for its operations in the United Kingdom and for those of its subsidiary Kyte Group.
(by email)

More Flashboy Recap

Rigging the Stock Market is Old Hat
By Ronald Delegge
Is the latest revelation of stock market manipulation by high-speed traders via a just released 60 Minutes report really new?  Before Michael Lewis’ latest book “Flash Boys,” there was “Wall Street Jungle” – a 1970 bestseller by Richard Ney.
http://jlne.ws/OaLSSc

Not Every High-Frequency Trader Is Predatory, Arthur Levitt Says
By Sam Mamudi
Bloomberg
Lumping all speed traders together as predators and saying they rig the stock market exaggerates the hazards faced by investors, according to Arthur Levitt, who oversaw the Securities and Exchange Commission in the 1990s.
http://jlne.ws/1fkvoSz

It’s a shameful vilification of the entire industry, says BATs O’Brien on Lewis’ HFTs allegations
MarketWatch
The head of one of the biggest exchanges in the U.S. blasted the allegations that high-frequency trading is rigging the markets against investors a day after the CBSNews “60 Minutes” interview with author Michael Lewis.
http://jlne.ws/OaLAuJ

Inside IEX: The Buyside Takes on HFT
Traders Magazine
On 60 Minutes, Michael Lewis claimed he found IEX, the new exchange that is slowing down HFT. Traders profiled the innovative exchange in October. Here’s our profile.
http://jlne.ws/1mvqC62

EX Welcomes High-Speed Traders, as Long as They Behave
By Sam Mamudi
Bloomberg
IEX Group Inc.’s trading platform was built to combat predatory practices. That doesn’t mean it’s on a crusade to kill high-frequency trading firms.
http://jlne.ws/1fK270b

Regulatory

U.S. Treasury unit to support CFTC on swaps data
Reuters
WASHINGTON, March 31 (Reuters) – A U.S. Treasury Department unit said Monday it had signed a formal agreement with the Commodity Futures Trading Commission to help it sort out a raft of derivatives data and get a better handle on the global $690 trillion market.
jlne.ws/1dN9FEd

CFTC, OFR Sign Memorandum of Understanding to Improve Data Quality
Washington, DC — The Commodity Futures Trading Commission Acting Chairman Mark Wetjen and Office of Financial Research Director Richard Berner today announced a Memorandum of Understanding on the terms and conditions for the CFTC and OFR to begin a joint project to enhance the quality, types and formats of data collected from registered swap data repositories.
jlne.ws/1gKajSl

Crunch talks on Emir frontloading due this week
Risk.net
by Fiona Maxwell, Matt Cameron
Dealers hope EU regulators and legislators will set high maturity threshold, sparing market worst effects of frontloading rules
jlne.ws/1iVvyAb

Hong Kong Banking Regulator Opens Inquiry Into Currency Manipulation
By NEIL GOUGH
New York Times
HONG KONG — The global investigation into currency market manipulation spread to another major market on Tuesday, with Hong Kong’s banking regulator saying it had opened an inquiry into several banks.
jlne.ws/1mv4F72

FCA clamps down on payday lenders
FT
UK regulator says rules designed to ‘take out’ parts of industry
jlne.ws/QBUbZC

Federal Court Orders Two Florida Men and Their Companies to Pay More than $3.3 Million in Restitution and Penalties to Settle Charges Stemming from Role in Illegal, Off-Exchange Precious Metals Transactions
The CFTC Sued John King and Newbridge Alliance, Inc., and David A. Moore and United States Capital Trust, LLC, in Scheme Orchestrated by Hunter Wise Commodities, LLC
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that on February 26, 2014, Judge Donald M. Middlebrooks of the U.S. District Court for the Southern District of Florida in Miami entered permanent injunction Orders against Florida residents John King and his company Newbridge Alliance, Inc. (Newbridge), and David A. Moore and his company United States Capital Trust, LLC (USCT), who the CFTC sued for their role in a multi-million dollar precious metals scheme orchestrated by Hunter Wise Commodities, LLC and related companies (Hunter Wise) (see related press release 6447-12 and Complaint.)
jlne.ws/1iVd1E1

Federal Court Orders Ward Onsa of Marco Island, Florida and His Company, New Century Investment Management LLC of Southampton, Pennsylvania to Pay $5.7 Million Civil Monetary Penalty for Operating a Commodity Pool Ponzi Scheme
Washington, DC — The U.S. Commodity Futures Trading Commission (CFTC) today announced that on March 20, 2014, Judge Mary A. McLaughlin of the U.S. District Court for the Eastern District of Pennsylvania entered a final judgment Order imposing a civil monetary penalty of almost $6 million against Defendants Ward Onsa of Marco Island, Florida, and his company, New Century Investment Management LLC (New Century), of Southampton, Pennsylvania, in a CFTC enforcement action. The court’s March 20, 2014, Order followed an earlier default judgment Order entered on December 5, 2011, finding that the Defendants had committed fraud and imposing registration and trading bans.
jlne.ws/1gk6MoZ

OTC Derivatives Regulators Issue Report to the G20
Washington, DC — The Over-the-Counter (OTC) Derivatives Regulators Group (ODRG), which is made up of authorities with responsibility for the regulation of OTC derivatives markets in Australia, Brazil, the European Union, Hong Kong, Japan, Ontario, Quebec, Singapore, Switzerland, and the United States, issued a report today that identifies the current list of remaining cross-border implementation issues related to global reform of OTC derivatives markets. The report also includes a summary of the status of such issues and a timetable for addressing them through a series of reports to the G20 Finance Ministers and Central Bank Governors over the course of 2014.
jlne.ws/1i9GVCE

Federal Court Orders St. Augustine, Florida Couple and Their Company to Pay $5.76 Million for Defrauding Customers in Foreign Currency Scheme
Queen Shoals Consultants, Gary D. Martin, and Brenda K. Martin Charged in March 2011 CFTC Anti-Fraud Action
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) obtained federal court supplemental consent Order requiring Defendants Gary D. Martin and Brenda K. Martin of St. Augustine, Florida, and their company, Queen Shoals Consultants, LLC (QSC) of Charlotte, North Carolina, to jointly pay a total of $5.76 million in civil monetary penalties for defrauding customers through a retail foreign currency (forex) trading scheme (see CFTC Press Release and Complaint 6004-11, March 17, 2011). None of the Defendants has ever been registered with the CFTC.
jlne.ws/1iVdd6m

Exchanges & Trading Facilities

ICE Splits NYSE Liffe, Euronext Feeds
Waterstechnology.com
NYSE Euronext has introduced a new commercial model for real-time data from its Liffe derivatives market that will see London-listed derivatives unbundled from continental European derivatives, as a result of ongoing plans to spin off Euronext’s European cash and derivatives markets following IntercontinentalExchange’s acquisition of NYSE Euronext last year.
jlne.ws/1mHzMz8

ASX calls for Australia-based exchanges
Financial Standard
By Mark Smith
The Australian Securities Exchange (ASX) has called for the Financial Services Inquiry to explore introducing requirements for systemically important financial markets infrastructure assets to be placed on-shore.
jlne.ws/1gXIuqJ

Nasdaq Partners Catelas for Comms Surveillance
News – WatersTechnology.com
Nasdaq OMX will integrate technology from surveillance vendor Catelas with its Smarts Broker platform, offering users the ability to monitor communications in a relational and visualized manner.
jlne.ws/1pHASIs

How Exchanges Should Tackle Cybersecurity
Institutional Investor
jlne.ws/1hewlrQ

NYSE to Suspend Trading Immediately in LDK Solar Co., Ltd. and Commence Delisting Proceedings
NEW YORK, March 31, 2014 – The New York Stock Exchange (“NYSE”) announced today that the staff of NYSE Regulation, Inc. (“NYSE Regulation”) has determined to commence proceedings to delist the American Depositary Shares (Each representing one ordinary share, nominal value $0.10 per share) (the “American Depositary Shares”) of LDK Solar Co., Ltd. (the “Company”) – ticker symbol LDK – from the NYSE. Trading in the Company’s American Depositary Shares will be suspended immediately.
jlne.ws/1fjSt7T

Trading Volumes in March 2014 and from April 2013 through March 2014
TFX
jlne.ws/1hYuiZW

First active ETFs tradable
SIX
SIX Swiss Exchange is expanding its offering: investors can now trade in 11 active ETFs.
jlne.ws/1fjU2Tj

Trading Overview in Fiscal Year 2013 & March 2014
Japan Exchange Group announced a trading overview (preliminary estimates) in Fiscal Year 2013 & March 2014
jlne.ws/1lzGC9K

Special Quotations Updated (Contract month: December 2013): Dividend Index Futures
Japan Exchange Group
jlne.ws/1fjUrVy

Euronext Brussels welcomes ABO-Group Environment
Brussels – 31 March 2014 – Euronext Brussels S.A./N.V., a wholly owned subsidiary of IntercontinentalExchange Group, Inc. (NYSE: ICE), welcomed today ABO-Group on its regulated market.
jlne.ws/1lkzprp

Hedge Funds & Managed Futures

Louis Dreyfus Commodities gets ‘IPO-ready’
By Neil Hume in Lausanne, FT
Louis Dreyfus Commodities is taking steps to ensure that it is ready for either a stock market listing or a partial sale to a strategic investor, as one of the world’s largest food trading houses navigates a fast changing landscape for natural resources.
jlne.ws/1dK0Cny

Banks & Brokers

FX Industry Moves into Spring Clean Mode
WSJ MoneyBeat
by Chiara Albanese
Foreign-exchange market insiders are scrambling to clean up the image of their industry, months if not years before the global investigation into currencies-trading practices reaches its conclusion.
jlne.ws/1pHBkGG

JPM must face shareholders’ ‘Whale’ lawsuit: Judge
By Reuters
jlne.ws/PdH27S

Investors Sue 12 Banks, Allege Conspiracy to Rig Forex Markets
By Katy Burne
Wall Street Journal
A dozen large investors filed a joint lawsuit against 12 banks for allegedly conspiring to rig global foreign-exchange prices, according to a new consolidated complaint.
jlne.ws/1jTEYQs

Former Citigroup co-chief John Reed warns of ‘managerial turmoil’
By Camilla Hall, FT
John Reed, the former co-chief executive and architect of the modern day Citigroup, said “managerial turmoil” at the sprawling global bank had hindered its ability to secure the Federal Reserve’s approval for its 2014 capital plans.
jlne.ws/1gKj6E2

Goldman Sachs’s Saidenberg Moving to Commodities Head
By Hugh Son, Bloomberg
Goldman Sachs Group Inc., which earned a third of its profit from trading last year, moved Guy Saidenberg from head of global foreign-exchange trading to allow JPMorgan Chase & Co. (JPM)’s Kayhan Mirza to assume the job.
jlne.ws/1jTyPUd

Citigroup Was Punished for Not Playing Nice With the Feds
BY Gene Kirsch
NEW YORK (TheStreet) — Although Citigroup (C_) passed the first round of stress tests (called the Dodd-Frank Act Stress Tests), the Big Four bank failed to impress in the second round announced Wednesday.
jlne.ws/1lkDaNE

Merrill Lynch Race Discrimination Lawsuit Settlement News: Plaintiffs Decide Whether to Accept or Reject Their Offers This Week
Legal-Bay, Lawsuit Settlement Funding Firm, to assist plaintiffs with cash advances who decide to Opt-Out of proposed settlement offer.
FAIRFIELD, N.J., April 1, 2014 /PRNewswire/ — Legal-Bay LLC, The Lawsuit Settlement Funding Company, announced today that they will continue to assist plaintiffs of the landmark Merrill Lynch Race Discrimination lawsuit settlement by providing cash advances and pre-settlement funding to any plaintiffs who have decided not to accept their preliminary settlement offer.
jlne.ws/PdxZnt

Bob Diamond-backed Atlas Mara to expand in Africa via acquisitions
Reuters – UK Focus
March 31 (Reuters) – Bob Diamond-backed investment company Atlas Mara (LSE: ATMA.L – news) , said it would acquire sub-Saharan African bank ABC Holdings Limited (BancABC) and ADC African Development Corporation AG, for up to $265 million in cash and shares.
jlne.ws/1mHniaF

Indexes & Products

Cantor Fitzgerald Wealth Partners and Wilshire Funds Management Engage in Strategic Partnership
Wilshire Fund Management to advise Cantor Fitzgerald Wealth Partners Investment Committee
NEW YORK, March 31, 2014 /PRNewswire/ — Cantor Fitzgerald Wealth Partners, LLC (CFWP), an affiliate of Cantor Fitzgerald & Co. serving the private wealth management market, and Wilshire Funds Management (WFM), the global investment management business unit of Wilshire Associates Incorporated (Wilshire), have entered into a strategic advisory partnership.
jlne.ws/1jTy7GJ

First Russell Europe SMID 300 ETF launched on Xetra
New Source ETF tracks European small and mid-cap index
Deutsche Börse Group
jlne.ws/1gXnSPm

Short-Term Bond ETF Options as SEC Mulls Money Market Reform
ETF Trends
Ultra-short-duration bond exchange traded funds have garnered attention as an alternative to money market funds with the SEC set to implement structure changes in coming months. However, the SEC could scale down rules to exempt some investors.
jlne.ws/1hehZrj

Technology

Activ Financial Readies Lynx ATS and CX2 Feed Handlers
WatersTechnology.com
Market data and ticker plant provider Activ Financial is building out new feed handlers for Lynx ATS, Omega ATS’s new Canadian alternative trading system, and CX2, Chi-X Canada’s second ATS, to provide domestic and US customers with complete coverage of venues in the region.
jlne.ws/1mHzloB

SunGard Completes Split-Off of Its Availability Services Business
Business Wire
WAYNE, Pa.–(BUSINESS WIRE)–SunGard Data Systems Inc. (“SunGard”), one of the world’s leading software and technology services companies, announced today that it has completed the tax-free split-off of its Availability Services business. As a result, Sungard Availability Services, a leading provider of information availability through managed IT, cloud and recovery services, is now a separate, independent company with approximately $1.4 billion in annual revenue and its own Board of Directors.
jlne.ws/OaCvSO

The Data Centers Powering High FrequencyTrading
DataKnowledgeCenter
by Rich Miller
High frequency trading is in the news this week, as are the data centers in northern New Jersey that serve as the technology engines powering the practice. Here’s a look at the four data centers mentioned prominently in this week’s news, along with some useful links to our coverage of low-latency trading and colocation.
jlne.ws/1gKx7kY

X-ENFORCEMENT

Ex-Bitcoin Foundation’s Shrem in Plea Talks Over Laundering Case
By Patricia Hurtado
Bloomberg
Charlie Shrem, a prominent evangelist for Bitcoin who is charged by the U.S. with conspiring to launder more than $1 million in the virtual currency tied to the illicit online bazaar Silk Road, is in plea talks, prosecutors said.
jlne.ws/1jvMrCs

Environmental & Energy

Hong Kong Property Tycoon Makes $533 Million Bet on Solar
By Bloomberg News
A Hong Kong real-estate tycoon has spent the past year accumulating stakes in failing solar companies, piecing together what may become the biggest collection of photovoltaic factories in the world.
jlne.ws/1olgNw6

Asia-Pacific

China Burns Speculators as $5.5 Billion Lost on Yuan Bets
By Ye Xie and Kyoungwha Kim, Bloomberg
China is succeeding in making its currency less predictable. Investors are paying the price. Clients of U.S. commercial banks have lost about $2 billion this year on $332 billion of options betting the yuan would appreciate, while Chinese companies lost $3.5 billion on $150 billion wagered on a benchmark forwards contract, according to data compiled by Morgan Stanley and the Depository Trust & Clearing Corp. in Washington.
jlne.ws/1muWHuB

Japan Traders Seen Returning $3 Billion on Commodities Fall
By Yuriy Humber, Bloomberg
The commodities boom is over and you can have some money back.
For investors in Japan’s biggest trading houses, Mitsubishi Corp. (8058) and Mitsui & Co., the payoff in dividends and stock buybacks could be as much as 300 billion yen ($3 billion) in the financial year beginning today, according to analysts who follow them. As the China-led, decade-long rally in commodity prices fades, the traders have been left with excess cash and the need to boost their attractiveness to investors.
jlne.ws/1gKgKVD

SET joins with Malaysian, Singapore bourses to bolster Asean Exchanges project
Erich Parpart
The Nation
Thailand, Malaysia and Singapore are taking the lead in making seven stock markets in six Asean countries a global force to be reckoned with through a push for greater cooperation within the Asean Exchanges (AE) and the launch of the Asean Stars Index.
jlne.ws/1lzQ7pf

Frontier Markets

Was Jignesh Shah done in by rivals?
Business Standard
Latest evidence suggests that powerful forces may have been at work to scuttle his foray into the stock exchange business
The Central Bureau of Investigation, or CBI, stirred a hornet’s nest two weeks ago when it moved on two cases related to two companies promoted by Jignesh Shah’s Financial Technologies. It filed a first information report, or FIR, in the widely investigated case of National Spot Exchange in which investors, mostly high net worth individuals, are said to have lost Rs 5,574 crore. Shah has been named in this FIR.
jlne.ws/1gKwXKq

Retreat, FTIL tells MCX
Warns of legal action if bourse holds its board meeting on Thurs with agenda as stated earlier
BS Reporter
The battle between Financial Technologies (FTIL) and the exchange promoted by it, the Multi Commodity Exchange (MCX), took a new turn on Monday. The former told the latter it would take legal action on any attempt by the latter to consider an allotment of preferential shares to reduce its stake.
jlne.ws/PdQQyS

Miscellaneous

Gorkana Group Appoints David Gadd as Business Development Director
Business Wire
LONDON–(BUSINESS WIRE)–Gorkana Group, the leading provider of media intelligence services, today announces the appointment of David Gadd as Business Development Director, Insight. David will be responsible for developing and implementing insight, analysis and social media programmes across the Group. His initial focus will be on the Government sector where he will be responsible for ensuring that the Group is strongly positioned to deepen relationships, expand social media engagement and drive revenue growth.
jlne.ws/1hYCtFu

Top trading house executives speak at commodity conference
Reuters
LAUSANNE, Switzerland, April 1 (Reuters) – Global commodities trading is undergoing profound changes as banks pull out from the sector while trading houses adapt to new regulations and expand into physical assets.
Top executives and co-owners of some of the world’s largest trading houses discuss new trends at the FT Commodities Summit in Lausanne, Switzerland this week.
jlne.ws/1fJKpde

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