John Lothian Newsletter: French Tax on Intraday Trading Loses Support; Javelin Seeks CFTC Permission to List Interest-Rate Swaps; Commodities traders face increased competition

Oct 22, 2013

First Read

Chicago-based AlphaMetrix ordered to repay improper loans
Reuters
AlphaMetrix, a Chicago-based fund manager with $700 million under management, on Monday was ordered by its regulator to repay about $600,000 in fees owed to outside money managers by Nov. 1, or be barred from trading.
bit.ly/186iMX3

***** This is the NFA’s way of saying pay up, or take the road to perdition.

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ICE’s Sprecher Sees Continuing Role for Humans at the NYSE
Nick Baker – Bloomberg
Jeffrey Sprecher, whose electronic IntercontinentalExchange Inc. is buying NYSE Euronext, said human traders are still needed for buying and selling stock. Sprecher said the reliability of the New York Stock Exchange, where humans stand on the trading floor, is one of the reasons his Atlanta-based company is buying the parent.
bit.ly/186iLSQ

***** I am sure the crew from CNBC really appreciates Jeff sparing their jobs.

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The future of futurisation
Simon Weetman – FOW
Much has already been written about the ‘futurisation’ of the swaps market. Initially this referred to the replication of an OTC derivative exposure using a futures contract, as was the case when ICE and CME switched their OTC energy products to futures. However, the concept of futurisation has evolved and is additionally used to refer to the wider shift of trading from OTC products to futures.
bit.ly/186iMX9

***** Funny thing. Futures were always listed contracts based on OTC markets. So what is different now?

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Gary Katz

Born Under a Good Sign: Gary Katz Says ISE Gemini Off to Fast Start
JohnLothianNews.com

Gary Katz, president and CEO of the International Securities Exchange (ISE), has seen the options markets change dramatically since he co-founded the all-electronic options exchange in 2000. Now with the launch of ISE Gemini in August, the ISE is looking to add another exchange model that differs from the flagship exchange. Gemini also represents the 12th US options exchange. Katz sat down with JLN editor-in-chief Jim Kharouf about the new exchange, which garnered 2 percent marketshare of the total industry options volume in its first month.

Watch the video »

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Wall Street banks learn how to survive in staged cyber attack
Lauren Tara LaCapra | Reuters
A few months ago, a group of Wall Street banks fashioned a risk-manager’s worst nightmare to determine how they would survive. Luckily, it was all pretend.
bit.ly/186iMXa

***** I don’t think risk managers have any idea what their worst nightmares are.

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USDA to keep releasing crop reports during CME trading hours, despite complaints -official
Reuters
A top U.S. Agriculture Department official said key monthly U.S. crop reports will continue to be released during CME Group, Inc. trading hours, despite complaints from the grain industry that high-speed traders have access to the data before it becomes available on public websites.
bit.ly/186iMXb

***** In one sense, the high speed futures traders are the last to know. Farmers and commercials have a much better idea ahead of time how the numbers are going to go in the greater scheme of things.

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OptionsCity Software Announces Launch of Freeway Analytics, a Trade Simulation and Modeling Platform for Multi-Asset Derivatives Traders
OptionsCity Software, a leading provider of electronic trading solutions, today introduced Freeway Analytics, a simulation platform that allows traders and developers to quickly build and back-test strategies, discover opportunities and simulate real world trading based on sub-millisecond futures market data. The new non-execution offering will be hosted by OptionsCity and was built using OptionsCity’s Freeway automated trading technology.
bit.ly/186iNdr

***** OptionsCity has no side streets. Just freeways.

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What’s next for Euronext in Amsterdam?
William Mitting – FOW
The Amsterdam Stock Exchange was the world’s first organised stock market. Originally opened in 1611, the building of the Stock Exchange formalised what had previously been a relatively informal trade in shares in the Dutch East India Company as it sought funds to continue its exploration and exploitation in the Far East.
bit.ly/16mRIbF

***** Where is the European Jeff Sprecher? Please sit down Mr. Greifeld.

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Top Bear’s Bullish Tilt Has Followers Growling
Gregory Zuckerman – WSJ.com
One of Wall Street’s leading bears has turned more bullish, riling some longtime clients. David Rosenberg, a former chief economist at Merrill Lynch & Co. who since 2009 has been chief economist and market strategist at Toronto money manager Gluskin Sheff & Associates Inc., spent a decade warning about the fragile health of the U.S. economy, urging caution about stocks and recommending safe U.S. bonds.
bit.ly/186iNdv

***JM: Requiring a specific conclusion in advance from an analyst isn’t “research”, it’s “comfort.” Here, let me refill that formula bottle for ya.

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No, Bloomberg, the managed futures industry is not a scam
Attain Capital Management
This isn’t a case of the managed futures industry being flawed. It isn’t even about managed futures. It’s about Wall Street ripping people off through their packaging of product. It is about layering fees on top of fees to create access to an asset class. The example was managed futures, but the cause is packaging. It’s the same story we’ve seen in terms of packaging mortgages, penny stocks, IPOs, junk bonds, credit default swaps, and more.
bit.ly/186iM9m

***** The boys at Attain take Bloomberg’s managed futures piece apart.

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Gary DeWaal’s Bridging the Week: October 14 to 18 and 21, 2013 (Risk Management, Pre-Enforcement Publicity, More No Action Letters)
Last week both the US Commodity Futures Trading Commission and the US Securities and Exchange Commission filed and settled widely publicized cases against industry giants for breakdowns in certain of their risk management practices. However, in doing so, the agencies endeavored to provide an itinerary of expectations of what other industry participants should do to stay out of the same or greater trouble.
bit.ly/186iNdy

***** Nice to have the SEC navy back looking for the next whale.

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Lead Stories

French Tax on Intraday Trading Loses Support
Noemie Bisserbe – MoneyBeat – WSJ
Despite previous calls by France’s Socialist government to rein in financial markets, the government’s firm stand against a proposal to tax intraday trading is yet another sign of its waning political will to curb speculative trading, and force the financial sector to significantly contribute to public finances.
bit.ly/186iM9o

Javelin Seeks CFTC Permission to List Interest-Rate Swaps on Its Platform
Katy Burne – Dow Jones
Javelin Capital Markets LLC, a startup trading platform for swaps, asked U.S. regulators for permission to make interest-rate swaps available on its system, bringing more transparent trading for complex derivatives closer to reality. A spokesman for the Commodity Futures Trading Commission said Javelin was the first swaps trading platform to make such a request.
bit.ly/186iNdH

TrueEX Files CFTC Application to Offer Rate-Swaps Trading
Matthew Leising – Bloomberg
TrueEX Group LLC filed an application to offer the most-active interest-rate swaps on its exchange platform, joining another firm in an action that may hasten the migration of derivatives to public markets.
bit.ly/186iNdJ

Commodities traders face increased competition
Neil Hume, Commodities Editor – FT.com
Glencore Xstrata, Vitol and Trafigura face the prospect of increased competition and lower margins, as national companies from the Middle East, the former Soviet Union and southeast Asia enter the commodity trading market.
bit.ly/186iM9x

Suneel Bakhshi appointed chief at LCH.Clearnet
Philip Stafford – FT.com
The London Stock Exchange Group has ended a three-month search for a new head of its LCH.Clearnet clearing business with the appointment of Suneel Bakhshi of Citigroup.
bit.ly/186iNtY

SGX And Shanghai Futures Exchange To Collaborate On Commodity Derivatives
Singapore Exchange (SGX) and the Shanghai Futures Exchange are cooperating in the development of the commodity derivatives markets in both China and Singapore. They will jointly explore areas of cooperation including the development of derivatives for energy, metals, chemicals and commodity indexes. The MOU also covers exchange of ideas and information sharing.
bit.ly/186iNu5

CFTC asks Citigroup, Deutsche Bank to inspect records – WSJ
Reuters
The Commodity Futures Trading Commission has asked major currency dealing banks, including Deutsche Bank AG and Citigroup Inc to search their records as part of a global probe into possible currency market manipulation and hand over any evidence of wrongdoing, the Wall Street Journal reported citing people familiar with the matter.
bit.ly/186iM9z

How High-Speed Traders Will Dodge a Pay Cap
Tim Cave – MoneyBeat – WSJ
The bulk of London’s high-frequency trading firms look set to escape rules that clamp down on them taking bonuses bigger than their salaries.
bit.ly/186iM9D

22 Under Investigation in Libor Case in Britain
CHAD BRAY – NYTimes.com
British prosecutors have identified 22 individuals at various banks as potential co-conspirators in a wide-ranging inquiry into the manipulation of a global benchmark interest rate.
bit.ly/186iP52

Economic Theory, via YouTube and Cartoon
ANDREW ROSS SORKIN – NYTimes.com
Forget Econ 101. Take a look at the lessons in Dalio 101. Ray Dalio, the 64-year-old founder of Bridgewater Associates, the largest hedge fund in the world with some $150 billion under management, has quietly begun teaching his investment secrets on YouTube.
bit.ly/186iNKu

Mark Cuban Takes the Fight Outside
WSJ.com
Beating the Securities and Exchange Commission in an insider-trading case apparently wasn’t enough for Mark Cuban. Since emerging victorious from a federal courtroom last Wednesday, Mr. Cuban has lambasted the SEC in an impromptu news conference, lobbed personal attacks against the agency’s lawyers and mocked it in tweets and in emails to reporters.
bit.ly/186iNKv

EU watchdog sets out tougher rules for planned bank tests
Reuters
Europe’s top banking regulator has set out tougher rules for its forthcoming tests on the finances of top lenders, potentially paving the way for further multi-billion euro fundraising measures by banks deemed shaky.
bit.ly/186iNKA

Transparency poor amid FX SEF launch
Joti Mangat – Euromoney magazine
A lack of consistency in how new swap execution facilities (SEFs) report transaction volume data is making it hard for foreign exchange participants to conduct aggregate level analysis with respect to pricing and traded volumes, traders say.
bit.ly/186iP5f

Regulatory

Senators Press SEC on ‘Crowdfunding’
Andrew Ackerman – MoneyBeat – WSJ
U.S. securities regulators should expedite long-delayed “crowdfunding” rules allowing entrepreneurs to tap investors for small amounts of capital, a bipartisan group of eight Senate lawmakers said Monday.
bit.ly/186iNKC

NFA Registration Rule 101. Definitions
An explanation of the amendments to the Registration Rule can be found in the May 22, 2013 rule submission letter: http://www.nfa.futures.org/news/PDF/CFTC/RR101_051613.pdf.
bit.ly/186iNKH

FESE Response To The ELTIF Proposal
FESE supports the objectives of the newly proposed European Long-term Investment Funds framework, namely, to boost the funds invested in long-term infrastructure projects and other long-term assets that will lead to a sustainable development of the European economy. We also expressly agree that long-term assets are not limited to infrastructure investments and include more generally all investments with a long-term positive impact on the sustainable development of the economy.
bit.ly/186iPlC

[AMF Canada] Investing in Forex – Caution Regarding Offers from Foreign Companies
bit.ly/186iPlG

Singapore Conducts Assessment Of Money Laundering And Terrorist Financing Risks
bit.ly/186iPlK

Remarks Of CFTC Chairman Gary Gensler Before The Wharton Leadership Lecture Series
bit.ly/186iPlM

“Special Purpose” – Speech By Commissioner Bart Chilton To The American Gas Association/Annual Energy Market Regulation Conference, New York, NY
bit.ly/186iPlO

“The Boss” – Speech Of CFTC Commissioner Bart Chilton Before The Society Of American Business Editors And Writers, New York City
bit.ly/186iO13

Exchanges & Trading Facilities

CME to resume lean hog and feeder cattle indexes this week
Reuters
The Chicago Mercantile Exchange on Monday said it would again issue the exchange’s lean hog and feeder cattle indexes, which had been temporarily suspended by the partial federal government shutdown.
bit.ly/186iPC9

Scratching that (gl)itch: exchanges test for crashes
Tim Cave – Financial News
Would you drive a car designed and built by Nasdaq OMX, NYSE Euronext or any other major stock exchange operator? It is, of course, a hypothetical question. But people might think twice before stepping into the driving seat given some recent glitches that have led to a spate of outages and brought into question the resiliency of their technology.
bit.ly/186iO1b

LME chief defends warehouse policy as Alcoa writes to regulators
Telegraph
A row between London Metal Exchange (LME) and aluminium producers over the warehousing of metal has intensified with Alcoa reportedly writing to regulators in the US and the UK concerning the disagreement.
bit.ly/186iO1d

Nasdaq Hikes Basic, GIDS, Level 2 Fees
Faye Kilburn – WatersTechnology
Nasdaq OMX has notified clients of a wave of fee increases impacting its Nasdaq Basic feed of real-time best-bid-and-offer and last-sale data for US equities, its Global Index data service and its Level 2 data feeds, to mitigate the costs associated with managing growing data volumes and additional content, exchange officials say.
bit.ly/186iPCh

TMX Links to K13 Moscow Datacenter
Faye Kilburn – WatersTechnology
TMX Atrium, the network subsidiary of Canadian exchange group TMX has added a connectivity point on its network to the Kislovsky 13 (K13) datacenter in Moscow.
bit.ly/186iOhu

Deutsche Börse Opens Data-Trading Simulation Cloud
Max Bowie – WatersTechnology
Deutsche Börse’s Market Data and Services division has unveiled a cloud-based market simulation environment for trading firms to develop and test applications designed to work with its Eurex derivatives market’s T7 trading architecture-which is designed to reduce latency and increase throughput-without exposing details of their strategies to other market participants.
bit.ly/186iOhx

NASDAQ Basic Surpasses 1,000 Customers
Real-Time Quote & Trade Data Solution Embraced By Tens Of Thousands Of Financial Advisors, Wealth Managers And Individual Investors
bit.ly/186iOhy

Aquis Exchange Selects AlgoSpan To Supply Market Data
AlgoSpan, the specialist market access infrastructure provider, has announced that Aquis Exchange, the proposed pan-European equities trading exchange, has selected AlgoData market data services to supply it with low latency real-time reference prices from European exchanges.
bit.ly/186iOhC

EEX Supervisory Board Extends Terms Of Office For Peter Reitz And Iris Weidinger
The Supervisory Board of the European Energy Exchange AG (EEX) has confirmed Peter Reitz and Iris Weidinger in their respective positions as members of the Management Board and extended their terms of office by five years, ahead of the schedule.
bit.ly/186iPSC

Hedge Funds & Managed Futures

Wealth Fund Cautions Against Costs Exacted by High-Speed Trading
NATHANIEL POPPER – NYTimes.com
Despite being one of the largest single investors in the world, Norway’s sovereign wealth fund rarely makes waves. Now, though, the $750 billion fund is preparing to raise its voice on a sensitive topic: the increasing computerization of the stock markets and the costs it has imposed on big long-term investors.
bit.ly/186iOhI

Margin Debt Hits New High
Alexandra Scaggs – MoneyBeat – WSJ
Investors borrowed a record amount against their brokerage accounts last month, as margin debt levels made the biggest monthly jump since January. Last month, investors borrowed $401.2 billion against their portfolios, exceeding April’s record of $384.4 billion, according to the New York Stock Exchange.
bit.ly/186iOhJ

Australia’s IFM Rebrands, Plans Tokyo Office Opening
Gillian Tan – MoneyBeat – WSJ
Australia’s Industry Funds Management, which has 48 billion Australian dollars (US$46.4 billion) under management, has changed its name to IFM Investors. The firm, which is owned by 30 superannuation and pension funds, invests across infrastructure, debt, equities and private equity.
bit.ly/186iOhM

COMMENT: FICC’s not dead yet
Keith Mullin | Reuters
I’ve always been a bit of a contrarian. I guess it’s just in my nature. So I’m going against the flow by saying I’m getting a little tired of everyone writing off the fixed income, commodities and currencies trading businesses as if they’re ready to be read their last rites.
bit.ly/186iOhN

Blackstone managing director switches teams
Dan Dunkley – Financial News
Andrea Valeri, a managing director in Blackstone’s London private equity team, has switched to the firm’s tactical opportunities division, according to two people familiar with the matter.
bit.ly/186iPST

Euromoney Country Risk results Q3 2013: Tail risks continue to undermine investor returns
Jeremy Weltman – Euromoney magazine
More than five years on from the credit crunch that shook the world to its core, tail risks continue to undermine investor returns, according to the latest quarterly results of Euromoney’s Country Risk Survey
bit.ly/186iOy5

Xetra/FWB: 50th Bond Listed In Entry Standard For Corporate Bonds – Trading Commences For Gebr. Sanders GmbH & Co. KG Bond – Total Entry Standard Issue Volume Of Just Under E2 Billion
bit.ly/186iOy7

Banks & Brokers

U.S. Deal With JPMorgan Followed a Crucial Call
NYTimes.com
On Sept. 24, four hours before the Justice Department was planning to hold a news conference to announce civil charges against the bank over its sale of troubled mortgage investments, Mr. Dimon personally called one of Attorney General Eric H. Holder Jr.’s top lieutenants to reopen settlement talks, people briefed on the talks said. The rare outreach from a Wall Street C.E.O. scuttled the news conference and set in motion weeks of negotiations that have culminated in a tentative $13 billion deal, according to the people briefed on the talks.
bit.ly/186iQ9f

$13B Plus Criminal Charges? Entrapment Or Does JPMorgan Deserve What’s Coming?
Halah Touryalai – Forbes
The nation’s biggest bank is working out details with the US government of what would be the biggest settlement in history. And despite the record settlement the bank wouldn’t be off the hook from potential criminal charges.
bit.ly/186iOyd

[Video] What’s Next for Jamie Dimon?
Paul Vigna – MoneyBeat – WSJ
The chickens are coming home to roost for J.P. Morgan and they’re bringing a multi-billion price tag along with them. Is there any fallout for the bank’s CEO? Colin Barr drops in on the MoneyBeat desk to talk about what, if anything, J.P. Morgan’s problems mean for CEO Jamie Dimon.
bit.ly/186iQ9i

Michael Evans to Retire from Goldman Sachs
The Goldman Sachs Group, Inc. announced today that J. Michael Evans, a vice chairman of Goldman Sachs and global head of Growth Markets, has decided to retire at the end of the year after more than 20 years at the firm. He will become a senior director upon his retirement.
bit.ly/186iOOx

BofA Said to Face Three More U.S. Probes of Mortgage-Bond Sales
Keri Geiger & Hugh Son – Bloomberg
Bank of America Corp., sued by U.S. attorneys in August over an $850 million mortgage bond, faces three additional Justice Department civil probes over mortgage-backed securities, according to two people with direct knowledge of the situation.
bit.ly/186iQ9l

Ex-UBS Banker Wanted in U.S. Tax Probe Arrested in Italy
Reuters
A former top executive at Swiss bank UBS has been arrested in Italy and faces possible extradition to the United States, where he is wanted for allegedly helping wealthy Americans dodge taxes.
bit.ly/186iQ9m

The Man Who’ll Do Triage on Europe’s Banks
DANNY HAKIM – NYTimes.com
All Ignazio Angeloni has to do is figure out Europe’s banking system. Mr. Angeloni, 59, heads the European Central Bank’s financial stability division, giving him a lead role in a task about to begin: examining the books of the 130 or so largest banks in the 17 members of the European Union who use the euro. It will be financial triage aimed at determining which banks are sound and which are not.
bit.ly/186iQ9n

Swiss watchdog chides three banks over Tunisia accounts: TV
Reuters
Switzerland’s financial watchdog has told HSBC and two other private banks to pay thousands of Swiss francs for failing to supervise properly the accounts of people close to ousted Tunisian President Zine al-Abidine Ben Ali, television reported.
bit.ly/186iQpC

Goldman Sachs Reports 2013 Third Quarter Earnings Per Common Share of $2.88 and Increases the Quarterly Dividend to $0.55 Per Common Share
bit.ly/186iOOI

Clearing & Settlement

UK gives green light to EuroCCP-EMCF deal
Philip Stafford – FT.com
UK antitrust authorities have cleared the planned merger of EuroCCP and European Multilateral Clearing Facility, overcoming one of the main hurdles in the two companies’ bid to create Europe’s largest cash equities clearing house.
bit.ly/186iOOM

OFT Clears EMCF and EuroCCP Combination [pdf]
Press Release
bit.ly/186iQpN

LSEG announces appointment of new LCH.Clearnet Group CEO
Press Release
bit.ly/186iOOP

Clearing in Europe won’t bite until 2015, banks expect
Tom Osborn – Risk.net
Europe’s clearing rules will not hit a widely anticipated mid-2014 start date, with the first half of 2015 now more likely – but 2016 is not out of the question, banks warn. That would leave Europe at least two years behind the US, and could force many firms in the region to comply with US rules in the meantime.
bit.ly/186iQG8

MarkitSERV has Handled Over $1 trillion in SEF Trades in Past 10 Days
Ivy Schmerken – Wall Street & Technology
Despite media reports that trading on swap execution facilities (SEFs) got off to a slow start, MarkitSERV reported that its trade processing platform has handled more than $1 trillion of swaps traded on SEFs in the first ten business days since the Oct. 2nd launch.
bit.ly/186iRKh

Eurex Clearing: Newedge UK Financial Ltd Joins EurexOTC Clear – Currently 17 Clearing Members In Total
bit.ly/186iRKk

Indexes & Products

ETFs Churning Record Cash as $47 Billion Flows to Market
Whitney Kisling & Nick Taborek – Bloomberg
Money has been flowing in and out of financial markets more rapidly than ever before this year, a bullish signal as the threat of a U.S. government default fades.
bit.ly/186iQGf

ETF palette set to remain fragmented
Sarah Krouse – Financial News
Europe’s fragmented exchange-traded fund landscape is shifting with the number of exchanges on which ETFs are listed set to expand with the arrival of Bats Chi-X Europe’s new pan-European platform next month.
bit.ly/186iQGi

Four new UBS ETFs launched on Xetra – ETFs provide access for the first time to the UK and Canadian equity markets with currency hedging
bit.ly/186iRKs

FinEx launches gold ETF on Irish and Moscow exchanges
bit.ly/186iS0I

Moscow Exchange Indices Weekly Review: October 14-18, 2013
bit.ly/186iQGq

Technology

Perseus first to market with real-time view of ultra-low latency built with ITRS Geneos
Perseus Telecom, a leading provider of ultra low-latency, high-capacity global networks has launched an industry first, with PrecisionView, a state-of-the-art, ultra-low latency, real-time monitoring application for critical trading and exchange connectivity.
bit.ly/186iS0M

China Securities Deploys Fidessa Asian Trading Platform
Marina Daras – WatersTechnology
Investment bank China Securities (International) has selected Fidessa’s Asian trading platform to operate on its first subsidiary outside mainland China.
bit.ly/186iQWK

SIFMA Announces Key Findings Of Quantum Dawn 2
SIFMA today published a summary of the key findings derived from its Quantum Dawn 2 cybersecurity exercise held on July 18, 2013. The “After-Action” report was co-authored by Deloitte & Touche LLP, who served as an objective observer of the exercise and assisted in the preparation of this report to identify ways to improve the industry’s responses to cyber events.
bit.ly/186iQWN

SunGard To Announce Third Quarter 2013 Results On October 29, 2013
bit.ly/186iQWR

Deltix offers its Quantitative Execution Strategy Software Through Object Trading’s DMA Platform
bit.ly/186iS0S

Enforcement

Former Jefferies trader must face trial on TARP charges: judge
Reuters
A former Jefferies Group Inc managing director must face trial on criminal charges that he defrauded a federal bank bailout program by falsifying the prices of mortgage securities, a Connecticut federal judge ruled on Monday.
bit.ly/186iS0V

Banker sues regulator over being identified in ‘Whale’ debacle
Kara Scannell in New York – FT.com
Achilles Macris, a former top JPMorgan Chase banker, filed a claim on Monday against the UK’s Financial Conduct Authority alleging he was unfairly identified and criticised in settlement papers involving the “London Whale” trading debacle.
bit.ly/186iRdc

NFA orders AlphaMetrix LLC to satisfy its obligations to certain pool participants by November 1
National Futures Association (NFA) today ordered AlphaMetrix LLC (AlphaMetrix) to satisfy its obligations to certain pool participants by November 1. The firm had deducted advisory fees for certain participants in commodity pools operated by the firm. Those fees were to be reinvested in the pools but were not.
bit.ly/1b8LWrz

UBS Securities Australia Ltd Pays $50,000 Infringement Notice Penalty
bit.ly/186iRdg

Environmental & Energy

Global climate spending falling further behind target – report
Reuters
Global spending to combat climate change fell last year and remains far below the level needed to prevent its most dangerous effects, a report by the Climate Policy Initiative said on Tuesday.
bit.ly/1h2SiO8

U.S. carbon emissions hit lowest level since 1994
USA Today
Heat-trapping greenhouse gas emissions continue to rise worldwide — but not in the United States, where energy efficiency and a switch from coal to less-polluting natural gas are reducing emissions.
bit.ly/1ddq0jY

**RKB — The EIA report, here.

U.S. energy-related carbon pollution at lowest since 1994
Reuters
Carbon dioxide emissions from energy production in the United States fell to 5.29 billion tonnes in 2012 – its lowest level since 1994 – despite a growing economy and rising population, according to government data released on Monday.
bit.ly/1aaw6yq

Asia-Pacific

China agrees renminbi accord with Singapore
Jeremy Grant in Singapore and Josh Noble in Hong Kong – FT.com
China is to further internationalise its currency by allowing Singapore-based investors to buy renminbi-denominated securities, paving the way for direct trading between the two country’s currencies.
bit.ly/186iS10

Hong Kong regulator warns on cross-border rules
Michelle Price in Hong Kong – Financial News
US and European cross-border over-the-counter derivatives rules threaten to disrupt liquidity in Asia and the Hong Kong market if left unchecked, the Hong Kong Monetary Authority has warned.
bit.ly/186iRdk

South Korea Moves Closer to Selling Woori Finance
Kanga Kong – MoneyBeat – WSJ
The Korean government has received more than the minimum number of required bids for another part of Woori Finance Holdings, taking it one step closer to selling its stake in the country’s largest banking group by assets after three failed attempts in as many years.
bit.ly/186iRdo

With Psy and currency swaps, South Korea grabs global influence
Reuters
From rapper Psy to overseas financial aid, an economically and culturally confident South Korea appears to be taking on bigger neighbours Japan and China for the hearts and minds of the rest of Asia and beyond.
bit.ly/186iRdr

BOJ Upgrades View of All Regions
WSJ.com
The Bank of Japan raised its assessment of all of the country’s nine regions, in a sign that the economic recovery being driven by the policies of Prime Minister Shinzo Abe is spreading throughout the nation.
bit.ly/186iShj

Iron Ore Futures Sets Sail At Dalian Commodity Exchange
On the morning of October 18, the world’s first iron ore futures contracts featuring physical delivery that have been highly concerned by all the parties were listed and traded on Dalian Commodity Exchange (DCE), symbolizing that the “China-version” iron ore futures, as a milestone in the development of China’s iron and steel industry, have officially set sail. It is the eleventh futures product listed on DCE, increasing the number of China’s futures products to 36.
bit.ly/186iRds

Tokyo Commodity Exchange Foreign Trades 42.6% Of Total Volume In Sept.– All-Time High
bit.ly/186iSho

First Metro Securities Brokerage Corporation Joins The SunGard Global Network To Help Support Local Philippine And International Trading
bit.ly/186iShs

Frontier Markets

Trouble ferments in Myanmar over brewery
Michael Peel in Yangon – FT.com
A legal dispute in Myanmar between one of southeast Asia’s leading conglomerates and its military-linked local partner is emerging as a crucial test for investment in the country as it opens up after decades of dictatorship.
bit.ly/186iRtQ

Mark Mobius Plans To Buy Greek Equities For First Time In A Decade
Tommy Stubbington – MoneyBeat – WSJ
Mark Mobius, who manages more than $40 billion in emerging market assets at fund manager Franklin Templeton, plans to buy shares in Greek companies for the first time in more than a decade.
bit.ly/186iRtW

Probe reveals NSEL board ‘orchestrated’ meetings
Indian Express
The investigation into the settlement crisis at the National Spot Exchange (NSEL) has revealed that its board of directors were responsible for the mismanagement of the spot exchange, with instances of board meetings being “orchestrated”. According to a senior official of the Economic Offences Wing (EOW), the investigations have found that minutes of meetings were “cooked up” with signatures of absent members on board papers.
bit.ly/186iRtZ

Securities Commission Malaysia: Global Thought Leaders Gather In Kuala Lumpur For The World Capital Markets Symposium
bit.ly/186iSxN

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