First Read

Conspiracy Theorist(?) Michael Lewis Contradicts Himself
By John J. Lothian

(Editor’s note: I like Michael Lewis and have enjoyed his books and the movies based on them. I like Jon Stewart and greatly respect his wit, though he sometimes goes too low-brow for my tastes.)

I have watched Michael Lewis’ appearance on cable television show The Daily Show with Jon Stewart over and over again. As I watched the show, I was not amused as I would normally be by Mr. Stewart’s wit, but discomfited by the conspiracy theories, misleading representations and contradictions.

At one point near the beginning when Lewis was describing IEX founder Bradley Katsuyama, he said Katsuyama “runs the stock market department for the Royal Bank of Canada.” He said, “he is not much of a Wall Street guy.” It would seem like Mr. Katsuyama is part of Wall Street, but when you are demonizing one group and making heroes of another, you need to be able make up your own descriptions.

Mr. Lewis said of the new non-displayed alternative trading system, IEX, “it is the one stock exchange that is not run by intermediaries, not run by Wall Street people.”

“It is for investors.”

So Mr. Katsuyama, who ran the “stock market department” for RBC, is not part of Wall Street.

(Read the rest of the article on the JLN blog at jlne.ws/1fOAdQR )

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High Frequency Ranting Continues
John Lothian News
Wednesday marked day four of Michael Lewis’ book tour fire-and-brimstone sermon on high-frequency trading, so today marks day four of our rebuttal. If only the level of emotion reached by Lewis during his interviews could be matched by an equal amount of accuracy, investors would be much better served. As we have said many times in this space, the equity market structure is broken and in need of a fix. Vilifying those playing the speed game masks the true issues, which are price discovery and the nature of risk transfer. The new market structure has simply changed the economic incentives of market making from a wider bid-ask to a speed advantage. Either way, the buyside must pay to have a liquid market at the ready.

Over the past few days, John Lothian News has spoken with numerous participants on all sides of the issue. We will be publishing a special report on HFT in the coming days, and we hope to get as many speakers on the record as we can.

Meanwhile, to show we can objectively address the issues by skewering all sides, please enjoy this list of the top ten things the HFT community has NOT said in its defense this week.

1. The only rigging I do is on my sailboat, which I earned from my HFT trading profits
2. IEX being the best dark pool is like being the best looking toad.
3. Is it me or does Michael Lewis look like Jeff Daniels?

(Read the rest of the list at http://jlne.ws/1fOBbfU)

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Michael Lewis’s HFT Book: More of a Dark Market Than a Lit One
Streetwise Professor
There doesn’t appear to be a lot new in Lewis’s book. Moreover, the morality tale doesn’t capture the true complexity of the markets generally, or HFT specifically. It has certainly resulted in the release of a lot of heat, but I don’t see a lot of light. Which is kind of fitting for a book in which a dark pool is the hero.
jlne.ws/1gqmVsW

***** Bingo, bango, bongo!

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Blythe Masters quits JPMorgan after 27 years
Tom Braithwaite in New York – FT.com
Blythe Masters, a pioneer of credit derivatives, one of the products at the heart of the financial crisis, has resigned from JPMorgan Chase after more than two decades at the bank.
jlne.ws/1gqmTkR

***** That is what happens when they sell your unit out from under you. I once had a friend whose parents sold their house just so they could get him to move out.

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Exchange CEO Series – Big Crowd: ISE’s Gary Katz says crowded options field to get larger
JohnLothianNews.com

In the derivatives space, there has been a consolidation or a proliferation of exchanges, depending on how you see it.

While the number of futures exchanges in the US has shrunk to two major players, International Securities Exchange president and CEO Gary Katz has seen the opposite happen in the US options marketplace. And there is good reason for it.

Watch the video »

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ICE Announces New NYSE Liffe European Government Bond Futures And Swapnote Contracts
IntercontinentalExchange Group, the leading global network of exchanges and clearing houses, today announced that NYSE Liffe will launch new European Government Bond futures and Swapnote futures contracts.
jlne.ws/1gqmTkT

***** Is there a new European government?

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Orc COO Troels Philip Jensen Describes Orc’s Ascent from Trading Platform to Solutions Provider
Orc shook things up this past year. With new management, enhanced software and the introduction of a strategic roadmap; Orc Group has launched a new and expanded solutions offering, consisting of Trading, Electronic Execution and Professional Services to help capital market participants grow and develop in this new trading environment. Troels Philip Jensen, Chief Operation Officer at Orc Group, addressed the enhancements Orc has made to its offering and discussed how Orc helps make business grow.
jlne.ws/1gqmTkV

***** I wonder if the Orc COO uses OCO orders.

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Spot Trading Elevates Three To Partner: McInerney, Penley And Nakagawa
Spot Trading LLC, a leading proprietary trading firm, announced today the addition of three executives to the firm’s partnership. Robin McInerney, Daniel Penley and Aki Nakagawa have now joined Spot’s existing group of 10 partners.
jlne.ws/1gqmVsX

***** Proprietary meritocracy is a beautiful thing.

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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.

Bocker, 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.

Watch the video »

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Denmark’s Saxo looks to cash in on social media
Thomas Hale – FT.com
Saxo Bank, the Danish bank specialising in online trading, will this month become the latest financial institution to try to harness the power of social media in the pursuit of new clients. But it will be first to acknowledge that, by allowing traders to follow each other’s thoughts and imitate each other’s behaviour, it is providing a service far beyond simple order execution – requiring more risk management and regulatory scrutiny.
jlne.ws/1gqmTl2

***** Is this story from 2009?

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How to run or ruin a company in 140 characters
Reuters
When Nat Rothschild, the co-founder of troubled miner ARMS, insulted his former investment partner on Twitter last week, he showed the power of social media for business leaders seeking publicity – but also the perils of saying the wrong thing.
jlne.ws/1gqmTl4

***** People will say the stupidest things. Rule number one, don’t drink and tweet. Rule number two, if you are going to tweet something stupid, don’t.

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Japanese Farmers Bet on Steaks Costing Twice the Price of Silver
Bloomberg
Hirotaka Sekiguchi dresses his Wagyu calves in T-shirts and jackets to protect them against Japan’s spring chill and an expected avalanche of cheap foreign beef.
jlne.ws/1gqmTl5

***DA: If you can’t compete on price, you must compete on quality. Or lobby for a tariff.

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MarketsWiki

MarketsWiki Page of the Day
Virtu Financial
jlne.ws/1fIQLLG

MarketsWiki Recent Updates

People

Blythe Masters; Lawrence Leibowitz; Jack E. Earnest, Jr.; Lee Hodgkinson; Daniel Penley; Robin McInerney

Companies, Organizations and Groups

Velocity Futures; Mercuria Energy Group, Ltd; JPMorgan Chase & Co.; IEX Group; Virtu Financial LLC; Euronext; Spot Trading

Statistics

48,007,525 pages viewed, 7,909 articles, 181,505 edits
MarketsWiki Statistics

Lead Stories

ICE Said Close to Start of Credit-Swap Futures That Mimic Index
Matthew Leising – Bloomberg
The new contracts will replicate the lineup of companies included in the investment-grade and high-yield swap indexes owned by Markit Group Ltd., according to a person with knowledge of the plan.
jlne.ws/Pj4Uaa

Exchange tie-in to widen foreign access to China shares
Jeremy Grant in Singapore – FT.com
Hong Kong’s stock exchange is in discussions with bourses in mainland China, including Shanghai, about allowing investors to trade shares on each other’s platforms, in a move that could significantly widen access for foreign investors to China’s equities markets.
jlne.ws/1gqmVt7

Options Clearing Corp raises fees, cites regulatory scrutiny
Reuters
The clearinghouse that handles all U.S. options trades said it has raised fees to cover the costs of increased regulatory requirements and warned members that any refund to them will likely be much smaller than in years past.
jlne.ws/1gqmVta

SEC commissioner calls for review of exchange rebate model
Reuters
The U.S. Securities and Exchange Commission should consider a temporary program to test the effects of banning the most common method of pricing used by stock exchanges, as it may cause conflicts of interest, a commissioner at the regulator said on Wednesday.
jlne.ws/1gqmTBl

Buyout Firms AIM for London’s Junior Stock Exchange
MoneyBeat – WSJ
AIM, London’s junior stock exchange, is enjoying a mini-revival after several years in the doldrums, and mid-market buyout firms are becoming increasingly receptive to taking smaller companies public.
jlne.ws/1gqmVJs

Where Do HFTs Trade in Europe?
MoneyBeat – WSJ
Whether you think high-speed trading firms are ripping you off, or helping tighten those spreads and keep the markets liquid, you’ll probably want to know in which markets to find them.
jlne.ws/1gqmVJt

Dean Baker’s Extremely Strange Solution To The High Frequency Trading Problem
Tim Worstall – Forbes
This rather puzzles me, this solution that Dean Baker is offering to the high frequency trading problem as identified by Michael Lewis. Baker (we usually disagree it should be said, but on cordial terms) is arguing that we must do away with high frequency trading (HFT) altogether as a result of the way that some people are using it to, purportedly, front run the larger trades.
jlne.ws/1gqmTBs

Lewis Likens Einhorn to ‘Dumb Tourist’ in Fixed Card Game
Nick Baker and Sam Mamudi – Bloomberg
In today’s “rigged” U.S. stock market, large investors such as Greenlight Capital Inc.’s David Einhorn are like “dumb tourists” led to a casino where the card games are fixed, according to Michael Lewis, whose book “Flash Boys” has touched off a national debate about high-frequency trading.
jlne.ws/1gqmVJu

Michael Lewis Interview on the Blowback From Flash Boys
Businessweek
Who knew high-frequency trading was such a sexy subject? Certainly not Michael Lewis, who says he didn’t anticipate the level of blowback to Flash Boys.
jlne.ws/1jEU4Xc

Michael Lewis’ Flash Boys: How to curb high-frequency trading.
Zachary Karabell – Slate
The publication this week of Michael Lewis’ new book Flash Boys has led to a heated debate about the role of high-frequency trading in today’s global financial markets. The most contentious spark was Lewis’ claim on 60 Minutes that the prevalence of such trading means that our markets are “rigged,” an accusation that touched a nerve and set off a furious series of discussions in the past few days.
jlne.ws/1k39jfl

STATEMENT BY SENATOR JOHN McCAIN ON HIGH-FREQUENCY TRADING CONTROVERSY
jlne.ws/1dNa9ui

How the industry sees “Flash Boys”
FT.com
Michael Lewis, author of Liar’s Poker and The Big Short, has kicked off a storm with his new book, Flash Boys, which argues that the US equity market is rigged by high frequency traders (HFT). Here’s some of the responses:
jlne.ws/1gqmTBw

Excellent Economic Research; Mortgage Experts Did Not Predict The Housing Crash, They Lost More Than Non-Mortgage Experts
Tim Worstall – Forbes
This is a lovely little piece of economic research summarised for us over at EconLog. The finding is that the experts in the mortgage securitisation business were even more clueless than the rest of us about the housing bubble and the likelihood of a crash. This rather puts paid to the idea that it was all a conspiracy to make as much as possible while the sun was shining.
jlne.ws/1gqmTBz

How High-Frequency Stock Trader Quantlab Guarded Its Algorithms
WSJ.com
The meeting that started the trouble took place at a monastery in Florence, Ariz. Under a gazebo’s shade, a Ukrainian physicist who aspires to be a monk met with a Milwaukee lawyer seven years ago and began planning a firm whose profits from rapid-fire stock trades would go mostly to charity.
jlne.ws/1gqmVJx

UBS First to Report FX Rigging Shows EU Immunity Flaws
Bloomberg
UBS AG (UBSN) may receive full immunity from European Union currency-rigging fines after it was the first to approach antitrust regulators in the probe, sparking criticism that the bank has received enough forgiveness.
jlne.ws/1gnCWjz

Reasons for Virtu to Remain Private
RICHARD BEALES – NYTimes.com
It’s a good thing Virtu Financial doesn’t really need to go public. The “technology-enabled market maker” Virtu is delaying its initial public offering. Virtu may be different, but too much of what it does sounds similar to the high-frequency trading that’s suddenly in the spotlight.
jlne.ws/1gqmTRO

Charles Keating, 90, Key Figure in ’80s Savings and Loan Crisis, Dies
NYTimes.com
Charles H. Keating Jr., who went to prison and came to symbolize the $150 billion savings-and-loan crisis a generation ago after fleecing thousands of depositors with regulatory help from a group of United States senators known as the Keating Five, has died. He was 90.
jlne.ws/1gqmTRP

Londoners Priced Out of Housing Blame Foreigners: Real Estate
Patrick Gower – Bloomberg
Cheryl Coyne shouted “No more homes for millionaires!” with protesters dressed as pirates outside London City Hall this week. Inside, Mayor Boris Johnson was approving a plan by Hong Kong’s Hutchison Whampoa Ltd. (13) to build as many as 3,500 homes close to where she lives.
jlne.ws/1gqmVJC

Regulatory

SEC Official: Commission Undercut by FSOC
Sarah Krouse – MoneyBeat – WSJ
A member of the U.S. Securities and Exchange Commission has thrown the latest round of punches in an ongoing turf fight between the SEC and a panel of financial-industry overseers charged with deciding which financial firms should be labeled as systemically risky and subject to stricter oversight from the Federal Reserve.
jlne.ws/1gqmTRU

U.S. gives foreign banks more time on anti-tax dodge law
Reuters
The U.S. Treasury Department on Wednesday gave foreign financial institutions 10 extra days to register with the U.S. government, under a new law to combat offshore tax dodging by Americans that goes into effect on July 1.
jlne.ws/1gqmTRX

National Futures Association, AARP and Chicago Department of Family & Support Services co-sponsor Avoiding Fraud is Your Best Money Strategy during Money Smart Week
National Futures Association (NFA), AARP Illinois and the Chicago Department of Family & Support Services (DFSS) will cosponsor a seminar that aims to provide individuals and community leaders with the tools they need to help protect themselves and others from investment fraud. The seminar, “Avoiding Fraud is Your Best Money Strategy,” will be held on Thursday, April 10 from 11:30 a.m. to 1:00 p.m. at the Renaissance Court in the Chicago Cultural Center, which is located at 78 E. Washington St., in Chicago, Ill.
jlne.ws/1gqmVJF

Jessica Kane Named Deputy Director in the Office of Municipal Securities
The Securities and Exchange Commission today announced that Jessica S. Kane has been named deputy director in its Office of Municipal Securities.
jlne.ws/1gqmTS0

Rebecca Olsen Named Chief Counsel in the Office of Municipal Securities
The Securities and Exchange Commission today announced that Rebecca J. Olsen has been named chief counsel in its Office of Municipal Securities.
jlne.ws/1gqmTS2

Taking An Informed Approach To Issues Facing The Mutual Fund Industry, SEC Commissioner Luis A. Aguilar, Washington, DC, April 2, 2014
jlne.ws/1gqmTS6

NZX Welcomes The Financial Markets Conduct Act
NZX notes the signficant milestone in the continued development of New Zealand’s capital markets, with the Financial Markets Conduct Act coming into effect on Tuesday.
jlne.ws/1gqmVJI

Exchanges & Trading Facilities

NLX tests the water with trading fees
Anish Puaar – Financial News
Nasdaq OMX has started charging for trading on its European derivatives platform NLX after seeing growing volumes in some interest rate contracts offered on the venue.
jlne.ws/1gqmVZW

LSE Group Says Scaroni to Continue as Nonexecutive Director
WSJ.com
London Stock Exchange Group PLC said Wednesday that Deputy Chairman Paolo Scaroni will continue to serve as nonexecutive director of the company, despite his receiving a court conviction in Italy this week.
jlne.ws/1gqmVZY

BATS Chi-X Europe Introduces New Pricing Model
Exchange Responds To Higher Market Volumes To Bring More Competitive Pricing To European Participants
jlne.ws/1gqmU8m

Unit of Deutsche Börse Faces U.S. Criminal Inquiry
NYTimes.com
Deutsche Börse, the German stock exchange, said on Wednesday that its Clearstream unit was the object of a criminal investigation into potential violations of United States money laundering laws and sanctions against Iran.
jlne.ws/1gqmU8q

MarketAxess Announces Monthly Volume Statistics for March 2014
MarketAxess Holdings Inc. (Nasdaq:MKTX), the operator of a leading electronic trading platform for fixed-income securities, and the provider of market data and post-trade services for the global fixed-income markets, today announced total monthly trading volume for March 2014 of $65.0 billion, consisting of $41.0 billion in U.S. high-grade volume, $18.2 billion in other credit volume, and $5.8 billion in liquid products volume.
jlne.ws/1gqmW01

BATS Global Markets Reports March Volume and Activity
Pan-European Trade Reporting Facility BXTR Sets New Monthly Record With 57.0% Market Share
jlne.ws/1gqmW04

SGX Commodity Trading Activities Continue Growing
Singapore Exchange (SGX) saw a continued growth in commodity activities in March. Derivatives activities held steady while securities trading declined.
jlne.ws/1gqmU8s

Oslo Børs: Fastest-Growing Nordic Marketplace Now Has Over 1,000 Securities Listed
Nordic ABM is the fastest-growing Nordic marketplace. While similar Nordic marketplaces stand still, this week saw the 1,000th issue listed on Nordic ABM, which is the alternative marketplace for bonds and certificates operated by Oslo Børs.
jlne.ws/1gqmW0a

Börse Berlin: Successful First Quarter 2014
2014 began with positive developments in turnover and number of trades. Together the two market places Xontro and Equiduct achieved a turnover of 16.5 billion EUR in the first three months of 2014, an increase of 30 percent compared to the fourth quarter 2013 (12.7 billion EUR). The number of trades even rose by 50 percent to 2.4 million (Q4/2013: 1.6 million).
jlne.ws/1gqmW0c

ASX Group Monthly Activity Report – March 2014
jlne.ws/1gqmU8y

ASX Compliance Monthly Activity Report – March 2014
jlne.ws/1gqmU8A

The Companies Listed On MAB Traded EUR572 Million In 1Q, Double The Amount For 2013 – At 105,808 The Number Of Trades Doubles That For The Year 2013
jlne.ws/1gqmWgy

NZX March 2014 Shareholder Metrics
jlne.ws/1gqmU8C

MIAX Options – FIX Order Auto Cancel On Disconnect (ACOD) New Deployment Date
jlne.ws/1gqmWgA

London Stock Exchange Welcomes Just Eat – First High Growth Segment IPO
jlne.ws/1gqmUoQ

Hedge Funds & Managed Futures

Pimco Total Return Fund Sees $3.1 Billion Outflow
WSJ.com
Bill Gross hasn’t yet stemmed the flow of money out of the world’s largest bond fund. Investors pulled $3.1 billion from Mr. Gross’s Pimco Total Return Fund in March, marking the 11th consecutive month of outflows at the marquee fund for Pacific Investment Management Co.
jlne.ws/1gqmWgG

5 Things To Know About the 1st Quarter in Private Equity
Five Things – WSJ
Flush with cash, private equity firms invested an increasing amount of capital during the first quarter, even as the number of deals struck fell by more than 10% compared to last quarter.
jlne.ws/1gqmWgJ

Ackman’s Pershing Square up 10.7 percent in first quarter
Reuters
William Ackman’s Pershing Square LP fund, whose big bet against Herbalife and on mortgage giants Fannie Mae and Freddie Mac has made headlines in recent weeks, on Wednesday reported double-digit gains for the first three months of the year.
jlne.ws/1gqmWgK

Private Equity Warms to Funding Portals
Becca Lipman
There is a stark contrast between how private and public firms connect in terms of access to capital, but funding portals and specialized online communities are increasingly leveraging technology and services to bridge the divide.
jlne.ws/1gqmUoU

Venture-backed IPOs hit a five-year high in the first quarter
Reuters
Underscoring investor appetite for start-ups, venture-capital backed companies held 36 initial public offerings in the first quarter, more than any quarter for at least five years.
jlne.ws/1gqmUoV

Handler, Leucadia’s Chief, Takes Pay Cut in New Role
WILLIAM ALDEN – NYTimes.com
When he ran the Jefferies Group, Richard B. Handler was one of the better paid chief executives on Wall Street. Now, after the Leucadia National Corporation acquired Jefferies, his compensation has fallen by more than 80 percent.
jlne.ws/1gqmUoW

To Curtail Departures, SAC Pursues 2-Year Pacts
MATTHEW GOLDSTEIN – NYTimes.com
The billionaire investor Steven A. Cohen is putting pressure on his traders to try to keep his investment firm together, as the once-powerful hedge fund awaits a judge’s decision next week on its guilty plea to securities fraud charges.
jlne.ws/1gqmWwY

CalPERS Pension Benefits Generate $30 Billion In Economic Activity – Additional $20 Billion Invested In California
More than $30 billion in economic activity was generated by retirement benefits paid by the State’s pension fund, according to a study released by the California Public Employees’ Retirement System (CalPERS).
jlne.ws/1gqmUoY

Jeffrey Ubben’s Hedge Fund Is The Big Microsoft Winner
Forbes
Nearly one year ago, Jeffrey Ubben showed up at a New York investment conference with news: His San Francisco-based ValueAct Capital Management hedge fund had taken a $2 billion position in Microsoft .
jlne.ws/1gqmUp0

The Man Helping Bill Ackman Investigate Herbalife In China
Forbes
When billionaire hedge fund manager William Ackman hosted a conference call in March to slam Herbalife’s business practices in China, he introduced a man who had previously operated largely in the hedge fund industry’s shadows.
jlne.ws/1gqmWx1

Dow Theory Suspense Builds as Stocks Near 1880s Crucible
Michael P. Regan – Bloomberg
Technical analysts have any number of computer-driven tricks to attempt to read the tea leaves of the stock market, yet a theory developed by Charles Dow in 1884 still captivates them 130 years later.
jlne.ws/1jA2TSf

Banks & Brokers

BCS and Orc team on access to Russian market for international investors
BCS Financial Group, the leading financial group for the Russian markets, today announces a partnership with Orc, the global leader in derivatives trading technology, which allows Orc’s clients to trade Russian securities and derivatives on the Moscow Exchange (MoEx) and on the London Stock Exchange (LSE).
jlne.ws/1gqmUp3

A high-speed retreat keeps Goldman out of a tangle
John Gapper – FT.com
What is Goldman Sachs up to? The bank has been behaving strangely this week. When Michael Lewis unveiled his book Flash Boys: A Wall Street Revolt, in which he alleged the equity market is “rigged” by high-frequency traders, the bank discreetly lent him support. Then it emerged that Goldman is leaving the New York Stock Exchange floor, selling Spear, Leeds & Kellogg, a broker it bought for $6.5bn in 2000.
jlne.ws/1gqmUp5

JPMorgan Executive May Trade Corporate Saddle for a Real One
WILLIAM ALDEN – NYTimes.com
Blythe Masters is looking forward to taking “some well-deserved time off” when she leaves her job as a top executive at JPMorgan Chase later this year, the bank said in an internal memo on Wednesday.
jlne.ws/1gqmWx4

What Wells Fargo’s Executive Shuffle Really Means (It’s Good News For Investors)
Forbes
Wells Fargo continues its tradition of rotating top executives as CFO Tim Sloan moves into a new role as head of Wholesale Banking.
jlne.ws/1gqmWx5

Clearing & Settlement

DTCC Names Four New Members To Board Of Directors
The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, today announced that four new members have been elected to its Board of Directors.
jlne.ws/1gqmWx6

EuroCCP Receives EMIR Authorisation – First Equities CCP Authorised As EMIR Compliant
European Central Counterparty N.V. (EuroCCP), the largest cash equities clearer in Europe, announced that it is now an authorised central counterparty under the European Market Infrastructure Regulation (EMIR).
jlne.ws/1gqmUp6

Union Investment New User Of EurexOTC Clear – Connected Via Deutsche Bank As Clearing Broker And Using The Individual Clearing Model
Union Investment, one of the largest German asset managers for private and institutional investors, is a new user of EurexOTC Clear for Interest Rate Swaps (IRS).
jlne.ws/1gqmUFm

Indexes & Products

SIX Swiss Exchange is expanding its offering: investors can now trade in 11 active ETFs.
SIX Swiss Exchange has come up with a further innovation in the area of regulated on-exchange trading: with immediate effect, investors are able to trade in actively managed ETFs. The first product provider is Swiss & Global Asset Management, who has initially listed 11 active ETFs. The new products track four MSCI Indices and offer investors an additional option for investing in the emerging markets, Asia and Europe regions, and worldwide, in the trading currencies CHF, EUR and USD.
jlne.ws/1fjU2Tj

Technology

Big Data in Capital Markets Crosses the Chasm
Alex Raitt
The difficulty in transplanting big data applications and their benefits from other industries has created a vacuum.
jlne.ws/1gqmWx8

UBS Neo Helps the Buy Side Manage Complexity
Ivy Schmerken – Wall Street & Technology
UBS partnered with Lab 49 to develop Neo, a multi-asset platform that provides services to clients and routes to other venues.
jlne.ws/1gqmUFq

Misys Launches Emir-Compliant Trade Reporting Service
Waters Technology
Software provider Misys has launched a regulatory reporting service to assist corporate and buy-side clients with European Market Infrastructure Regulation (Emir) reporting requirements.
jlne.ws/1gqmWxa

Options to Build Arctic Datacenter
Waters Technology
Options, the New York-based private financial cloud provider, plans to build a datacenter in northwest Iceland, at the tip of the Arctic Circle.
jlne.ws/1gqmUFt

KVH To Offer 100G Ethernet Network Services – Between Metropolitan Areas Of Tokyo/Yokohama And Osaka
jlne.ws/1gqmUFw

Thomson Reuters First-Quarter 2014 Earnings Announcement And Webcast Scheduled For Wednesday, April 30, 2014 – Conference Call And Webcast Scheduled For 8:30 A.M. EDT
jlne.ws/1gqmWNu

Enforcement

A Pivotal Financial Crisis Case, Ending With a Whimper
JESSE EISINGER – NYTimes.com
The regulatory cloud has lifted for Kenneth D. Lewis. Last week, the former head of Bank of America received a modest penalty, paid for by his former employer, and a temporary ban from an industry he is no longer a part of.
jlne.ws/1gqmUFz

U.S. judge approves SEC settlement on insider trading of Heinz
Reuters
A federal judge has approved the U.S. Securities and Exchange Commission’s $4.8 million settlement with two Brazilian brothers it accused of insider trading in H.J. Heinz Co, after earlier having questioned why the accord did not include an admission of wrongdoing.
jlne.ws/1gqmWNy

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
jlne.ws/1gqmUFB

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
jlne.ws/1gk6MoZ

Federal Court Orders St. Augustine, Florida Couple and Their Company to Pay $5.76 Million for Defrauding Customers in Foreign Currency Scheme
jlne.ws/1gqmUFC

New York judge dismisses lawsuit against Madoff feeder fund
Reuters
A New York state judge has dismissed a lawsuit brought by an investor in a fund managed by Tremont Group Holdings, one of the largest feeders of funds into Bernard Madoff’s Ponzi scheme.
jlne.ws/1gqmWNE

Ex-JPMorgan trader in ‘Whale’ scandal open to facing U.S. charges
Reuters
A lawyer for a former JPMorgan Chase & Co trader accused of helping to hide trading losses tied to a $6.2 billion financial scandal said on Wednesday his client was open to leaving France to voluntarily face U.S. criminal charges.
jlne.ws/1gqmUVW

Ex-Evercore banker pleads guilty to insider trading charges
Reuters
A former investment banker at Evercore Group pleaded guilty on Wednesday to criminal charges that he engaged in insider trading and used proceeds to pay a one-time mistress to support their child.
jlne.ws/1gqmUVX

Environmental & Energy

European Energy Exchange: Supervisory Board Extends Steffen Köhler’s Term Of Office
jlne.ws/1gqmUVZ

Asia-Pacific

TMX Group And Zhengzhou Commodity Exchange Sign Memorandum Of Understanding
Zhengzhou Commodity Exchange (ZCE) and TMX Group today announced the signing of a Memorandum of Understanding (MoU) to enhance their understanding of each others’ businesses and to explore the possibilities of cooperation.
jlne.ws/1gqmWNG

Dalian iron ore contract boosts overall market liquidity
Aaron Woolner, Xiao Wang – Risk.net
The Dalian Commodity Exchange saw the first delivery of its iron ore contract this month – does the success of the onshore China contract threaten Singapore Exchange’s pre-eminent position in the iron ore swaps market, and how will both be impacted by the Shanghai free trade zone?
jlne.ws/1gqmUW1

Mobius Says MSCI China Plan Bad Idea as Coutts Sees Flaws
Weiyi Lim – Bloomberg
MSCI Inc. (MSCI)’s plan to add China’s domestic shares to its global indexes is drawing opposition from Templeton Emerging Markets Group and Coutts & Co.
jlne.ws/1gqmWNI

Threadneedle CIO Mark Burgess issues China warning
Andy Pearce – Financial News
Threadneedle Investments’ chief investment officer has become the latest senior figure to warn of a significant fall in Chinese economic growth, with falling exports, low consumption and infrastructure capacity limits to blame.
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Moneybeat Column: Revenue Slides for Investment Banks in Asia
MoneyBeat – WSJ
After a promising start to the year, investment banks in Asia ended up suffering their worst first quarter by revenue since 2009, following a steady decline over the past three years.
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Asia corporates hesitate to hedge out interest rate risk
Blake Evans-Pritchard – Risk.net
Banks are advising companies to protect themselves against an expected rise in interest rates. But with rates so low and the cost of swaps so high, does hedging really make sense?
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Greater diversity of players on Asia repo markets
Aaron Woolner – Risk.net
US regulatory capital requirements under Basel III are driving many US banks away from their domestic repo markets and towards Asia
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TSE: Co-Location introduction movie posed on Website
We have released a promotional film on JPX Co-Location on our website. It introduces the colocation service menus and the performance of the facilities simply in a short time.
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CESC Announces Board Change
China Exchanges Services Company Limited (CESC), a joint venture (JV) of Hong Kong Exchanges and Clearing Limited (HKEx), Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange (SZSE) for the development of financial products and related services, is pleased to announce Shi Xiaocheng has joined its Board with effect from today (2 April 2014).
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HKFE Announces Revised Margins For China Merchants Bank, CNOOC And China Telecom Futures
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Frontier Markets

Ghana commodities-exchange plan revealed
Kanika Saigal – Euromoney magazine
The founder of the budding Ghana Commodities Exchange, having established the successful Ethiopian platform, reveals the commodity-rich west African country’s grand ambitions and the benefits of a consortium-led model for the new exchange, which is set to launch in 2015.
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Emerging market liquidity squeeze: it’s the US current account, stupid
Sid Verma – Euromoney magazine
Did the contraction of the US current account reduce global dollar liquidity, triggering the rout in emerging markets? And would the continued contraction of the US trade balance spark a synchronized collapse in emerging-market deficit nations?
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Advantage Futures Joins Dubai Mercantile Exchange As Clearing Member
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Malawi Stock Exchange First Quarter Market Performance Report 2014
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Miscellaneous

Old Math Casts Doubt on Accuracy of Oil Reserve Estimates
Bloomberg
Jan Arps is the most influential oilman you’ve never heard of. In 1945, Arps, then a 33-year-old petroleum engineer for British-American Oil Producing Co., published a formula to predict how much crude a well will produce and when it will run dry. The Arps method has become one of the most widely used measures in the industry. The problem is the Arps equation has been twisted to apply to shale technology, which didn’t exist when Arps died in 1976.
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