John Lothian Newsletter: ICE sets November date for delayed Singapore launch; Operation to steady China stocks a success, but patient comatose; Deutsche Boerse puts Asia exchange on back burner

Sep 9, 2015

First Read

MarketsReformWiki Reaches a Milestone
Doug Ashburn – JLN

While we were sleeping, some time between midnight and 3 a.m. this morning, the page counter on MarketsReformWiki, our regulatory database, topped the 10 million mark, four and a half years after going live.
MarketsReformWiki
The site was started in 2011, just as the CFTC, SEC and other regulators began proposing rules and hosting roundtables, and market participants responded with comment letters, white papers and other research. The goal of the site was simple – cut through the thousands of pages of legalese and present the information in a way that is (relatively) easy to understand, easy to find, and linked to other relevant topics – basically everything that a good wiki should do. We believe we have hit on the right mix.

The industry does, too. In fact, one of the things we noticed in those heady days of Dodd-Frank related rules was that one of the top domains feeding into the site was @cftc.com. The joke around the office was that the regulator was coming to our site to search and comprehend the information they were putting out.

MarketsReformWiki continues to draw the eyeballs because, while the story has quieted a bit, the rules are not completed, not by a long shot. Our focus has shifted to Europe, where they continue progress on MiFID II/MiFIR. There are still cross-border issues that need to be hammered out. Our regulators are not finished, either. Within the past couple weeks the SEC published final rules on registration of security-based swap dealers and major swap participants while the CFTC proposed a number of amendments to rules on swap data reporting and recordkeeping. Even the new rules are changing, and MarketsReformWiki continues to track, summarize and connect.

We also continue to interact with the market through video and print interviews. Visit the front page of the site to see our recent interview with Lisa Dunsky, former counsel for CME Group, now an attorney at Sidley Austin. In the interview, Dunsky looks at recent high-profile criminal actions on disruptive trade practices, and puts together a checklist on what firms and traders need to consider.

If you have not visited the site in a while, check it out and be among the site’s next 10 million visitors.

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Boom, bust and broken trust mark the ages of finance
John Kay, FT
Managers of other people’s money lack ‘anxious vigilance’ that they might apply to their own cash
In 1776, Adam Smith warned of the dangers of limited liability. Company directors were “the managers of other people’s money”. They could not be expected to watch over it with the “anxious vigilance” that partners would apply to their own cash. “Negligence and profusion,” Smith concluded, “must always prevail.”
jlne.ws/1KDI48B

****** How many individual traders have gone bankrupt versus how many money managers have gone bankrupt?

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BATS Reports Record U.S. Equity and Options Market Share in August
BATS
European Equities Market Share Reaches 25.0%; Remains on Track to Launch Hotspot London Matching Engine September 14th
jlne.ws/1Lhzd6S

****** BATS puts a big one on the board.

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Miami International Holdings Announces the Addition of Jeromee Johnson, Jonathan Dowd and Steve O’Brien to Its Management Team
PR Newswire
Miami International Holdings, Inc. (MIH), parent company of the MIAX Options Exchange (MIAX Options®), MIAX Global, LLC (MIAX Global) and Miami International Technologies, LLC (MIAX Technologies), today announced a number of recent additions to its management team. Jeromee Johnson has been named its new Executive Vice President — Head of International Market Development for MIAX Global, Jonathan Dowd has been named a Senior Business Strategist of MIAX Options, and Steve O’Brien has been named Vice President of Global Technology Sales for MIAX Technologies.
jlne.ws/1JTnygD

****** The bearded wonder-boy of BATS moves to Miami.

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Queen Elizabeth II Isn’t as Rich as You Think
Tom Metcalf, Bloomberg
Monarch overtakes Victoria as longest on British throne
Estimated fortune of about $425 million eclipsed by super-rich
Queen Elizabeth II becomes the longest-reigning monarch in British history today, and while her country might have lost influence in the world, she has ruled over an unprecedented period of wealth creation.
jlne.ws/1M9VwRE

****** I know the queen is working on a new app, which could change the tone of this whole story.

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What’s In Your Backpack?
3 TT Trade Talk by Leo Murphy, University Program Manager
Leo Murphy teaches DePaul students how to use TT.
BACK TO SCHOOL! Parents breath a sigh relief as students begin their march into autumn. Time to fill backpacks with all the essentials: assignment books, dictionaries, calculators, pencils, flash drives and campus maps. The last thing a student wants to experience is to be in class and not have what they need.
jlne.ws/1L1ab05

****** As long as it is a MarketsWiki Education backpack, sponsored by Sungard, I don’t care what is in it.

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Phupinder Gill, CME Group – A Look Into Your FutureEmployment
MarketsWikiEducation.com

“As an employer, we need to understand you in a way that makes sense to us and a way that makes sense to the businesses not just as we currently run, but the businesses we want to continue to run as the world evolves.”

It’s not easy to predict much about the future. But Phupinder Gill, CEO of CME Group, is looking forward to see just where the next generation, the so-called Generation Y group, fits into his business.
Watch the video»
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MGEX Has Record Fiscal Year
AgWired
It was a good year trading for MGEX. This news release from the Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO) says it set new all-time records in both total volume and electronic volume. Total volume finished the year at 2,278,559 contracts traded, a 13 percent increase over the previous record set a year ago. This marks the third time ever the Exchange’s total volume has surpassed 2 million in a fiscal year, and the first time it has done so in back-to-back years.
jlne.ws/1UGKPVT

****** That trading kiosk they opened at Mall of America really worked.

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Lead Stories

ICE to launch Singapore platform in Nov with 5 new contracts
Reuters
Intercontinental Exchange will launch its Singapore platform on Nov. 17, with five new contracts, the bourse said on Wednesday.
jlne.ws/1O0EPbL

ICE sets November date for delayed Singapore launch
Philip Stafford, FT
Intercontinental Exchange will open its delayed Singapore trading business in November but without the planned commodities futures contracts that led to a legal threat from a Chinese rival.
jlne.ws/1LX7NWC

Operation to steady China stocks a success, but patient comatose
By Pete Sweeney and Saikat Chatterjee, Reuters
Efforts to stabilise markets have stemmed index falls; Trading volumes have also dropped sharply; Retail, institutional investors increasingly sidelined; Market in “vegetative state” – fund manager; Lack of viable stock market complicates economic transformation
Tough medicine for China’s ailing stock markets has brought stability to prices, at least for now, but it has come at a cost; equities and futures are trading so thinly that they are in danger of flat lining.
jlne.ws/1OyjrHK

Exclusive: Deutsche Boerse puts Asia exchange on back burner – sources
Reuters
Financial market turbulence in China and software problems have prompted Deutsche Boerse (DB1Gn.DE) to delay its planned Asian derivatives exchange and clearing house by about 18 months, three people familiar with the plans said on Wednesday. The German exchange operator had said in June the Singapore-based Eurex Asia derivatives exchange and clearing house would begin operations in the second quarter of 2016.
jlne.ws/1UGKyCo

China Just Killed the World’s Biggest Stock-Index Futures Market
Kyoungwha Kim, Bloomberg
Loss of liquidity may hamper efforts to lure institutions
Hedge funds among biggest losers from new trading curbs
Add the world’s biggest stock-index futures market to the list of casualties from China’s interventionist campaign to stop a $5 trillion equity rout.
jlne.ws/1PZAUJK

Investment Strategies Meant as Buffers to Volatility May Have Deepened It
By LANDON THOMAS Jr., NY Times
On Wall Street, a cure is proving to be nearly as bad as the disease.
Investment strategies that promise to insulate investors from risk are being seen as actually having contributed to the wild market swings in recent weeks.
jlne.ws/1Oyqwbi

J.P. Morgan’s Client ‘Steering’ Questioned; CFTC is the latest to look into whether J.P. Morgan made proper disclosures when pitching its own hedge funds to its private-banking clients
By EMILY GLAZER and JEAN EAGLESHAM, WSJ
Greg Burk, a Las Vegas car dealer, says his bankers at J.P. Morgan Chase & Co. flew out to see him last year and offered to put him in what they called “the mother of all hedge funds.”
jlne.ws/1UGIme6

Goldman wins dismissal of lawsuit over CDOs faulted by Senate
Reuters
Goldman Sachs Group Inc on Tuesday won the dismissal of a class-action lawsuit accusing it of defrauding investors in subprime mortgage offerings that some U.S. senators faulted after investigating causes of the 2008 financial crisis.
jlne.ws/1MaQT9W

Villeroy de Galhau poised to lead France’s central bank
Anne-Sylvaine Chassany in Paris, FT
François Villeroy de Galhau, a former BNP Paribas banker, has been nominated to be the next governor of France’s central bank, prevailing over Benoit Coeuré, a top European Central Bank official.
jlne.ws/1IY58Y9

Bankrate to pay $15 million to settle SEC fraud charges
BY JONATHAN STEMPEL, Reuters
Bankrate Inc (RATE.N) agreed to pay $15 million to settle U.S. Securities and Exchange Commission charges that it engaged in accounting fraud to ensure that its financial results met analyst expectations.
jlne.ws/1g98XTi

Former Citi trader tells court information-sharing was common practice
By Steve Slater, Reuters
A former Citigroup foreign exchange trader claiming unfair dismissal after a currency rigging scandal told a London court on Tuesday that the activities for which he was fired were common practice at the U.S. bank at that time.
jlne.ws/1NpqSEa

Regulatory

Watchdog in US Treasury market probe
Gina Chon in Washington and Martin Arnold in London, FT
New York’s banking regulator is probing potential manipulation of the US Treasury markets, in a sign of how scrutiny of the $12tn industry is widening, people familiar with the case said.
jlne.ws/1LX7n2o

US CFTC probes JPMorgan for alleged client steering – WSJ
Reuters
The U.S. Commodity Futures Trading Commission (CFTC) is investigating whether JPMorgan Chase & Co is steering its private-banking clients to its own hedge-fund investment products without proper disclosures, the Wall Street Journal reported, citing people close to the probe.
jlne.ws/1LX2lTE

Open access will drive competition
Futures & Options World Debate continues at the FOW Regulation 2015 conference in London on Tuesday, with discussions turning to the implications and complexities of open access, with panellists agreeing that change is coming, and with it, potential opportunities. Open access into execution venues, clearing houses and benchmarks is an integral part of the European Securities and Markets Authority’s (Esma) Markets in Financial Instruments Directive II (Mifid) reforms.
jlne.ws/1UGKH8O

ESMA takes step to end derivatives standoff
The Trade News
Europe’s financial watchdog has launched a consultation to review how much margin is required for cleared derivatives trade, an important step to end a lengthy dispute with US regulators. The paper launched by the European Markets and Securities Authority (ESMA) said it would consider changing the EU’s ‘liquidation period’ for trades so as it to align it with US rules.
jlne.ws/1UGNbnT

EU clears ADM’s acquisition of Belgium’s AOR
Reuters
The European Commission said on Tuesday that it had approved the acquisition of Belgian vegetable oil distributor AOR NV by U.S. grain trader Archer Daniel Midland (ADM).
jlne.ws/1L1cDn6

Lima Stock Exchange CEO Says Tax Exemption to Help Win Over MSCI
John Quigley, Bloomberg
Tax change to help keep emerging-market status, CEO says
Peru delegation to meet MSCI officials in New York next week
Peru’s decision to stop taxing stock gains will boost volumes in the world’s worst-performing market and help keep the country from being reclassified as a frontier market, a senior official from Lima’s Stock Exchange said.
jlne.ws/1VN9jPC

Citigroup FX trader seeks ‘truth’ in wrongful firing case
Katie Martin and Jane Croft, FT.com
A former Citigroup trader told a London employment tribunal on Tuesday that he was “not here to mud-sling” but to ensure “truth about foreign exchange at Citi is heard once and for all”, at the start of a wrongful dismissal case focused on the bank’s handling of the currencies-trading scandal.
jlne.ws/1UGL6YY

Exchanges & Trading Facilities

CME Group Expands Deliverable Swap Futures Offering with 7-year and 20-year Denominated Contracts
MarketWatch
CME Group, the world’s leading and most diverse derivatives marketplace, announced it will launch 7-year and 20-year US Dollar Deliverable Swap Futures (DSF) on September 28, 2015. This product extension builds on the success of the existing 2, 5, 10 and 30-year deliverable swap futures. With more than $580 million in average notional value traded daily (5,800 contracts ADV), DSFs trade more than twice as much as the next most active swap futures contract.
jlne.ws/1UGLkiF

EURONEXT ADDS OPTIONS ON FLOW TRADERS TO ITS SPOTLIGHT SEGMENT
Additional Spotlight options promoted to standard segment, thanks to lively trading
Euronext
Today Euronext announces the further expansion of its Spotlight options offering with new options on Flow Traders N.V. (option trading symbol: FLW), a leading technology-enabled liquidity provider that specializes in exchange traded products (“ETPs”). The options follow the company’s successful IPO on Euronext Amsterdam in July this year and are available for trading as from 14 September.
jlne.ws/1VN73I8

Investing in high dividend yield stocks
Eurex
Enhancing investment performance with Eurex’s STOXX® Global Select Dividend 100 Index Futures & Options
The extremely low interest rate environment combined with slow economic growth and rising market volatility have contributed to the erosion of returns from traditional fixed income investments, especially over the last few years. In the search for yield, dividend investing has re-gained investor focus. This article analyses the potential of high dividend-paying stocks, which can be efficiently accessed through Eurex’s lately introduced STOXX® Global Select Dividend 100 Index Futures and Options.
jlne.ws/1EOeMSq

Bursa Malaysia Securities Introduces Guidance On Rebate On Commission For Equities Brokers
MondoVisione
Bursa Malaysia Securities Berhad (“Bursa Malaysia Securities”) has issued a Guidance on rebate on commission (“Guidance”) allowing equities brokers to offer non-cash rewards and incentives to their clients. The new Guidance will take effect from 9 September 2015.
jlne.ws/1EUmytG

TMX Group CEO Lou Eccleston To Appear At The 2015 Scotiabank Financials Summit
MondoVisione
TMX Group CEO Lou Eccleston will be participating in a panel discussion at the 16th annual Scotiabank Financials Summit at the Fairmont Royal York Hotel in Toronto.
jlne.ws/1icLylX

BOX Price Improvement Activity for August
BOX
In the month of August, price improved contracts on
BOX Options Exchange (“BOX”) averaged 260,476 per day. Price improvement
versus the prevailing NBBO for contracts submitted via BOX’s price improvement
auction, PIP, averaged $632,761 per day, while total savings to investors in
August was $13.29M. With this, BOX has saved investors over $664M since its
inception in 2004. Overall average daily trading volume on BOX in the month of
August was 455,340 contracts.
jlne.ws/1LX2G8O

Admiral Group PLC: Extraordinary dividend
Eurex
On 19 August 2015, the company Admiral Group PLC decided, amongst other things, to pay an interim dividend of GBp 51.00 per share. According to the company’s announcement, GBp 25.90 thereof are to be regarded as extraordinary dividend.
jlne.ws/1Oyg2c0

SGX named Derivatives Exchange and CCP of the Year by Asia Risk
SGX
Singapore Exchange (SGX) has retained the accolade of “Derivatives Exchange of the Year” and has been named central counterparty “CCP of the Year” by Asia Risk at the annual Asia Risk Awards, held in Singapore for the first time on 9th September.
jlne.ws/1hWNIpd

Hedge Funds & Managed Futures

Why Top Fund Managers Want Better HR; A new area for investor activism: asking how firms manage and invest in their workforce
By LAUREN WEBER, WSJ
Chief executives love to declare that “people are our greatest asset.” It is rarely clear what they mean, but a group of investors managing approximately $2.5 trillion is seeking to find out.
jlne.ws/1OcChXa

Copper Is Catalyst for Glencore Rescue Plan; Success of mining company’s latest moves could depend on metal’s fortunes
By SCOTT PATTERSON, ESE ERHERIENE and ALEX MACDONALD, WSJ
Glencore PLC Chief Executive Ivan Glasenberg’s rescue plan for his company could hinge on the fortunes of a single metal: copper.
jlne.ws/1icO3ES

Banks & Brokers

MOVES-J.P. Morgan Asset Management appoints Diana Amoa senior portfolio manager
Reuters
J.P. Morgan Asset Management, part of JPMorgan Chase & Co, appointed Diana Amoa senior portfolio manager in its local currency emerging markets debt team.
jlne.ws/1UB2pQt

JPMorgan Hires Tech Banker Greg Mendelson From Bank of America Merrill Lynch
By MICHAEL J. de la MERCED, NY Times
As part of Wall Street’s race to advise the technology industry, JPMorgan Chase has hired a banker from one of its big rivals.
jlne.ws/1XKCvc8

Clearing & Settlement

What You Need to Know About the 3 Biggest Global Payment Methods
Entrepreneur
There have never been more ways to pay someone. MasterCard is working on a new system that confirms transactions with selfies using facial-scanning technology. Apply Pay recently launched in the U.K. in July, joining a crowded European global payments ecosystem. BitCoin is getting more attention as a result of the Greek crisis.
jlne.ws/1UGLtCV

CME Europe on dealing with derivatives
By Cees Vermaas, CEO, CME Europe
There are a range of trials ahead for the European derivatives market, not least a wave of new regulation. However, for those that are successfully fighting the current, new prospects could place the region at the forefront of the global game
jlne.ws/1UB6CDP

Indexes & Products

Peru bourse sees ‘good chance’ of keeping emerging market status
BY URSULA SCOLLO, Reuters
Peru’s bourse has a “good chance” of staying in MSCI Inc’s emerging market category and avoiding a downgrade to a riskier status, the bourse’s general manager said on Tuesday following preliminary talks with the index provider.
jlne.ws/1icM7fu

Investors Make Their Case for Buying Chinese Stocks Now; Managers look for companies that will benefit from transition to consumer-oriented economy
By JULIE WERNAU, WSJ
A deepening slump in Chinese shares is just what Di Zhou has been waiting for.
Ms. Zhou, who manages $11 billion at Thornburg International Value Fund, is snatching up shares of Kweichow Moutai Co., whose distilled Chinese liquor has been around since the Qing Dynasty. The shares have dropped 22% since June, but she said the stock looks like a good buy thanks to high profit margins.
jlne.ws/1MaQdBx

JP Morgan to remove Nigeria from government bond index
By Chijioke Ohuocha, Reuters
JP Morgan will remove Nigeria from its Government Bond Index (GBI-EM) by the end of October, the bank said on Tuesday, after warning the government of Africa’s biggest economy that currency controls were making transactions too complicated.
jlne.ws/1iwENLB

Can an Index Fund Deliver the ‘Value’?
WSJ
The time for value might finally be here. After six years of a bull market that has been led largely by growth and momentum stocks, the current environment—flat to down, and often volatile—is the kind of market in which stock-picking value investors can thrive, buying discounted stocks from forced sellers.
jlne.ws/1UGMvPo

The great ETF debacle explained
By Chris Dieterich, Barron’s
Heading into the opening bell on Monday, August 24, it was clear that US stocks were going to see some heavy selling. The S&P 500 had ended the prior week on a four-day slide, and markets in Europe and Asia were plunging. What no one expected—and what many experts claimed couldn’t happen—was that prices for many of the largest exchange-traded funds fell far more sharply than the stocks they owned.
jlne.ws/1K7pRcU

Technology

Volante Technologies Supports Fintech Startup IWIAfrica’s Integration Into The Financial Market – Enabling The SWIFT Innotribe Finalist To Accelerate Global Market Access Using Volante’s Out-Of-The-Box Volante Product Suite For Transforming Financial Messages
MondoVisione
Volante Technologies Inc., a global leader in the provision of software for the integration, processing and orchestration of financial messages, data and payments, today announced the use of Volante Designer within IWIAfrica to enable communication with banks and financial institutions’ systems via SWIFT and FIX messages.
jlne.ws/1iwABvv

Instagram opens up to advertisers worldwide
BY YASMEEN ABUTALEB, Reuters
Instagram opened its platform to most advertisers across the globe on Wednesday as the photo-sharing app seeks to make more money and compete with popular rivals such as Snapchat.
jlne.ws/1FxumfZ

TABB Group Hires Terry Roche As Principal, Head Of FinTech Research, Expanding Firm’s Technology Coverage Beyond Data & Analytics – Industry Veteran Brings More than 30 Years’ Experience Building And Managing Technology For Thomson Reuters, Reuters, HSBC, Salomon Brothers, Republic Bank Of NY And Telerate
MondoVisione
TABB Group has brought on Terry Roche, an industry veteran with 30 years’ experience in capital markets technology and operations, as principal, head of fintech research. Based in New York, he will be expanding the research and consulting firm’s fintech practice beyond its data and analytics coverage.
jlne.ws/1EUs938

Rival Systems Launches Low Latency Derivatives Trading Platform
Rival Systems
Chicago-based Rival Systems, LLC (Rival), a trading software company established earlier this year, today officially launched its new low latency derivatives trading and risk management platform. The new Rival Trader front-end and Rival API have been used by a select group of clients for the past five months and are now broadly available to the options and futures trading communities. Late this year, the firm plans to introduce Rival Risk, an enterprise risk management tool designed for brokerage and clearing firms, hedge funds, proprietary trading firms and operators of multiple trading groups.
jlne.ws/1EUwyTJ

Enforcement

3 Nomura Traders Accused of Deceiving Customers About Mortgage Bond Prices
By PETER EAVIS, NY Times
A wide-ranging government investigation into Wall Street bond trading practices has produced new charges against three traders who worked in New York for a large Japanese financial firm.
jlne.ws/1MaPxMl

Former Nomura traders charged over mortgage-backed securities
Gina Chon in Washington, FT
Three former Nomura traders who sold residential mortgage-backed securities face rare criminal charges that they lied to bank customers about bond prices, according to an indictment unsealed on Tuesday.
jlne.ws/1K8UtPE

CFTC Charges Tennessee and Kentucky Residents Rodney Scott Phelps and Jason T. Castenir and Their Company, Maverick Asset Management, LLC, with Commodity Pool Fraud and Other Violations
CFTC
The Order arises out of a civil enforcement Complaint filed under seal by the CFTC on August 25, 2015, charging the Defendants with fraudulently soliciting at least $1.2 million from members of the public to trade commodity futures in a pool, misappropriating more than $800,000 of pool participants’ funds for their personal use, and misrepresenting the profitability of their trading. In addition to fraud, the Complaint charges the Defendants with operating a commodity pool without being registered with the CFTC, as required.
jlne.ws/1OvfMKZ

CFTC Orders Forex Capital Markets, LLC to Pay More Than $843,000 for Supervision and Record-Production Violations and for Violating a Previous Commission Order
CFTC
According to the CFTC’s Order, from April 1, 2013, to July 10, 2013, FXCM failed to follow its compliance procedures that require that it “know all of its customers” and that its employees identify and promptly report suspicious activities to appropriate authorities. Although FXCM was aware of warning signs that RFF was a fraud, FXCM failed to identify or report these warning signs in violation of its own compliance procedures, or that White’s operation of websites on behalf of the White Entities violated their exemption from registering as a commodity pool operator. The Order also finds that FXCM failed to respond fully to a CFTC document request and, in doing so, violated a previous Commission order.
jlne.ws/1M9AzpS

SEC Charges Three RMBS Traders With Defrauding Investors
SEC.gov
The SEC alleges that Ross Shapiro, Michael Gramins, and Tyler Peters defrauded customers to illicitly generate millions of dollars in additional revenue for Nomura Securities International, the New York-based brokerage firm where they worked. They misrepresented the bids and offers being provided to Nomura for RMBS as well as the prices at which Nomura bought and sold RMBS and the spreads the firm earned intermediating RMBS trades. They also trained, coached, and directed junior traders at the firm to engage in the same misconduct.
jlne.ws/1OvfV15

SEC Charges Sports Nutrition Company With Failing to Properly Disclose Perks for Executives
SEC.gov
An SEC investigation found that MusclePharm omitted or understated nearly a half-million dollars’ worth of perks bestowed upon its executives, including approximately $244,000 paid to CEO Brad Pyatt related to automobiles, apparel, meals, golf club memberships, and his personal tax and legal services. Even after the company began an internal review of undisclosed executive perks and then-audit committee chair Donald Prosser became directly involved in the process, MusclePharm continued filing financial statements that failed to disclose private jet use, vehicles, and golf club memberships for its executives.
jlne.ws/1KChFI6

SEC Charges Bankrate and Former Executives With Accounting Fraud
SEC.gov
The SEC alleges that Bankrate’s then-CFO Edward DiMaria, then-director of accounting Matthew Gamsey, and then-vice president of finance Hyunjin Lerner engaged in a scheme to fabricate revenues and avoid booking certain expenses to meet analyst estimates for a key financial metric: adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). Bankrate consequently overstated its second quarter 2012 net income. Bankrate’s stock rose when the company announced the inflated financial results, and DiMaria allegedly proceeded to sell more than $2 million in company stock.
jlne.ws/1KChJrx

SEC Charges Video Management Company Executives With Accounting Fraud
SEC.gov
The Securities and Exchange Commission today announced accounting fraud charges against two former top executives of a now-bankrupt online video management company, accusing them of falsifying financial statements to make the company appear more profitable than it was in reality. The SEC alleges that then-CEO Kaleil Isaza-Tuzman and then-CFO Robin Smyth employed a variety of schemes to manipulate KIT Digital’s books and mislead investors, including an off-the-books slush fund used to generate payments back to the company and create the false appearance that KIT Digital was being paid for its products.
jlne.ws/1M9AsuG

Environmental & Energy

Bond Crowd Cares About Other Kind of Green; Some investors accept a lower yield if they think the issuer is ‘socially
By CHANA R. SCHOENBERGER, WSJ
Paying attention to environmental and other social-responsibility issues might make a company more attractive to shareholders and customers. But does it matter to bondholders?
jlne.ws/1VNb53h

Citi: Capital Markets Now Control Oil Prices
By Tracy Alloway, Bloomberg
From the concrete canyons of Lower Manhattan to the shale basins of West Texas, a new report from Citigroup underscores the degree to which Wall Street has financed the U.S. oil boom with analysts warning that the slow grind of lower oil prices could spell tough times ahead for shale producers and their creditors.
jlne.ws/1ESb7T9

Water: The New Screen for Investment Risk
WSJ
Investors make big decisions based on the outlook of such fundamentals as interest rates and energy costs. What is more fundamental than water?
jlne.ws/1UGMzi5

Pension managers must consider climate change risks: study
By Bob Weber – The Canadian Press
Climate change is one of the biggest risks faced by Canadian pension plans and plan managers may be forced into taking public stands to fulfil their legal duties, says a new legal study.
jlne.ws/1QnG6YA

Study: deforestation halved over past decades
DW
Forests throughout the world are disappearing more slowly than they used to – but, they are still disappearing. That is according to a new report by the United Nations Food and Agriculture Organisation (FAO).
jlne.ws/1EOj1gO

Asia-Pacific

Premier Li says China needs to maintain reforms for financial stability
Reuters
China needs to maintain reforms in many areas to ensure its financial stability, Premier Li Keqiang said on Wednesday.
jlne.ws/1L14MG4

Market Swoons Could Delay Hong Kong-Shenzhen Market Link Up for A Year
Traders News
While the equity markets have been wreaking havoc with portfolios, pricing modals and traders’ lunches, it might also delay the much-anticipated link between Hong Kong and Shanghai. According to a report in the South China Morning Post, Hong Kong Exchanges and Clearing chief executive Charles Li Xiaojia said on Monday that it may not be the right time to talk about mutual market access, bolstering the belief by brokers in the city that the proposed plan to connect the Hong Kong and Shenzhen stock markets may be postponed to next year.
jlne.ws/1UGNq2c

Hong Kong Dollar Peg Shows Strain Caught Between Fed and PBOC
Bloomberg Business
Hong Kong’s 32-year-old currency peg is seen coming under strain, caught in a tug-of-war between tightening U.S. monetary policy and an economic slump in China. The linked exchange rate means Hong Kong has no choice but to follow the Federal Reserve in raising interest rates, which is forecast to happen before the end of this year. At the same time, China’s slowest growth since 1990 will exert downward pressure on the city’s property prices and wages, fueling public discontent towards the peg, according to BNP Paribas SA.
jlne.ws/1UGNwXv

China’s Stock-Rescue Tab Surges to $236 Billion, Goldman Says
Kana Nishizawa, Bloomberg
Total spending is equivalent to 9.2 percent of free float
Investor concern about state paring buying is overdone
China’s government has spent 1.5 trillion yuan ($236 billion) trying to shore up its stock market since a rout began three months ago, according to Goldman Sachs Group Inc
jlne.ws/1EOjZtm

Frontier Markets

Santiago exchange plans demutualisation
Philip Stafford, FT
Chile’s Bolsa de Santiago is pushing to demutualise and list on its own market as part of a bid to attract more traders.
jlne.ws/1JUGwn8

Nigerian Stock Exchange Achieves Milestone On Dealing Members Compliance
MondoVisione
The Nigerian Stock Exchange (The NSE or The Exchange) has announced that it recorded a 100% compliance rate with the Dealing Member regulatory filings for the second quarter renditions for the period ended 30 June 2015, which was due on 17 August 2015.
jlne.ws/1K8LPAy

MCX case against MSEI adjourned
The Hindu Business Line
The Bombay High Court on Tuesday adjourned the hearing of the MCX case against the Metropolitan Stock Exchange of India to September 23 even as the stock exchange contested the jurisdiction of the court.
jlne.ws/1JSSOu6

Delhi court refuses anticipatory bail to Jignesh Shah; Finds merit in EOW plea that custodial interrogation needed to crack the case
N Sundaresha Subramanian, Business Standard
A district court in Delhi on Tuesday dismissed the anticipatory bail application filed by National Spot Exchange (NSEL) founder Jignesh Shah. Shah had sought anticipatory bail in the matter of a complaint filed by Delhi-based Classone Exports, which lost nearly Rs 23 crore in the NSEL payment crisis that broke out in July 2013. He might now move the high court for anticipatory bail, his lawyers said.
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