John Lothian News Survey – Final Day!
We are closing out our survey campaign at the end of the day, so if you wish add your input, please click the link below and give us 30 seconds of your time. More to the point, if you wish to get in the running for your choice of an iPad Mini or a pair of Bose Quiet Comfort Noise-Canceling Headphones, it is now or never (or maybe next year when we conduct our next survey). The winner will be selected tomorrow, Wednesday, April 23.
HKEx Announces Plans For Its First Asia Commodities Contracts
Hong Kong Exchanges and Clearing Limited (HKEx) plans to launch its commodities business with four futures contracts that will be traded in its derivatives market in Hong Kong: London Aluminium Mini Futures, London Zinc Mini Futures, London Copper Mini Futures and API 8 Thermal Coal Futures. HKEx aims to introduce the contracts later this year, pending regulatory approval and market readiness.
***DA: These contracts represent the synergy HKEx was aiming for when it bought the LME – mini versions of the top three LME contracts, settled in renminbi. Perfect for the growing Asian market.
Tailor-made hedging with Eurex’ new EURIBOR Mid Curve Options; Interview with Mehtap Dinc
On 3 March, Eurex Exchange launched one to four-year EURIBOR Mid Curve Options (American-style) on its already existing Three-Month EURIBOR Futures. The Eurex Editorial Team talked to Mehtap Dinc, Member of the Eurex Executive Board and responsible for product development, about this latest product launch.
****** This is worth the read just because I have never met someone named Mehtap before.
SIFMA Calls For Targeted Relief On FATCA
Washington, D.C., April 21, 2014–SIFMA has submitted a letter to officials at the U.S. Department of Treasury and the Internal Revenue Service (IRS) requesting targeted relief from the July 1, 2014 Foreign Account Tax Compliance Act (FATCA) implementation deadline.
***** Targeted relief is so much nicer than loophole.
Feds create new Chicago teams targeting cybercrime, securities fraud
BY KIM JANSSEN, Chicago Sun-Times
Cybercrime and securities and commodities fraud will be targeted by new teams of Chicago prosecutors under a reshuffle ordered by U.S. Attorney Zach Fardon. And violent crime — an area in which Fardon has been under political pressure to do more — will get its own boss, but no extra attorneys. The reorganization of Chicago’s 153 federal prosecutors is the first major management change Fardon has instigated since his appointment late last year. His creation of a team of a dozen lawyers focused on securities and commodities fraud makes it more likely that large financial cases that were previously tried in New York could now go before Chicago juries.
***** Get ready for a deluge of cases to come to Chicago
SEC Explains How to Use Twitter and Absolves Issuers of Retweets
by Steve Quinlivan, Dodd-Frank.com
Certain rules under the securities laws require certain communications be accompanied by legends. The length of the legend meant that Twitter could not be used because the 140 character limit would be exceeded. As has long been suspected, the SEC has now blessed the use of Twitter by permitting a link to the required legend. In the past we have noted use of this technique.
**** I would really like to hear the SEC explain how to use Twitter.
Professional Trading Solutions, Inc. Appoints Chief Strategy Officer
Professional Trading Solutions, Inc., an industry-leading solutions provider for active and professional traders, has formally announced Andrew Brenner as its Chief Strategy Officer.
Professional Trading Solutions, Inc. (PTS) has named Andrew Brenner as their Chief Strategy Officer, effective immediately. Mr. Brenner will be responsible for managing special projects. Mr. Brenner will report directly to Farid Naib, CEO of PTS.
***** Former ISE executive Andy Brenner in a new role.
Managed Futures Panel Event and Cocktail Reception Apr 24, San Francisco
RCM Asset Management
Join RCM Asset Management this Thursday April 24 at the Omni Hotel San Francisco. Learn the who, what, why and how of managed futures.
Flash Point: Peter Nabicht Talks HFT, Innovation and Misinformation
Today’s financial markets can be summed up in three words – global, fast, and complex. But as the market structure evolves, so must the regulatory structure that oversees it. John Lothian News has spoken with several industry experts to create this series on the evolution of financial market structure.
In Part 1, Peter Nabicht, senior advisor of the Modern Markets Initiative, welcomes the public’s interest in high frequency trading in the wake of Michael Lewis’ book “Flash Boys”, but cautions that changes may have unintended consequences.
MarketsWiki Page of the Day
Companies, Organizations and Groups
Page Views: 48, 421, 788; Pages 20,515; Articles: 7934
IEX’S exchange plan stirs U.S. stocks queue jumping argument
By John McCrank, Reuters
For more than a decade, queue jumping by traders has been a big no-no in U.S. stock market, prevented in the name of fairness. Now, an upstart trading platform has revived a debate on whether it may be just what markets need to become more transparent.
Hedge Funds Drive to Another Record; Assets Climbed to $2.7 Trillion in First Quarter
By Rob Copeland, WSJ
Even as performance flickers at some top managers, investors still are taking a shine to hedge funds.
During the first quarter of 2014, investors continued to move increasing amounts of money into hedge funds, sending industrywide assets under management to a record, industry tracker HFR Inc. said.
Hedge Funds Hit Record $2.7 Trillion in Assets
By Jon C. Ogg , 24/7 Wall St.
Hedge Funds may not be getting the stellar performance that many investors were accustomed to when this was an obscure industry, but it turns out that they are still at record asset levels. The group Hedge Fund Research has issued a report for the first quarter of 2014 showing that hedge fund assets have reached the $2.7 trillion mark.
China opens Beijing to gold imports, cutting into Hong Kong’s transit role
Reuters via South China Morning Post
Opening the capital as the third shipment point will help the PBOC keep purchases discreet as it is believed to be adding to its bullion reserves
The mainland has begun allowing gold imports through the capital, sources familiar with the matter said, in a move that would help keep purchases by the world’s top bullion buyer discreet at a time when it might be boosting official reserves.
HKEx eyes China with new metal contracts
Enoch Yiu, South China Morning Post
Exchange continues its push into commodities with launch of trading platform for metal and energy contracts targeting deals across the border
Goldman, Morgan Stanley and Other Banks Battle for Business Trading Stocks; High Equity Prices and Stiff Regulation of Other Businesses Fuel a Stock-Trading Revival
By Justin Baer and Saabira Chaudhuri, WSJ
Investment banks are slugging it out over stock trading. For years, equities had taken a back seat to the bigger and often more-profitable business of buying and selling fixed-income securities and commodities. But as those units are squeezed by new regulation and uncooperative markets, banks are putting more muscle behind catering to the trading needs of equity investors.
JPGoldman Stanley Intact as Basel Change Keeps Bank Ties
By Yalman Onaran, Bloomberg
The largest U.S. banks can remain entangled with each other now that global regulators have loosened proposed limits on the financial web that led to investor panic in 2008 and prompted bailouts.
How IEX is Combating Predatory Types Of High-Frequency Traders
By Elvis Picardo, CFA
Michael Lewis’ bestseller “Flash Boys: A Wall Street Revolt” stirred a hornet’s nest by shining the spotlight on the controversial subject of high-frequency trading (HFT). The book chronicles the journey of a small group of intrepid individuals on Wall Street who stumble across predatory behavior by high-frequency trading firms, and in a bid to provide a more balanced marketplace, create an exchange named IEX. Here’s how IEX is attempting to combat predatory trading.
Michael Lewis on Exposing Wall Street’s Biggest High-Tech Swindle
By Joanna Pearlstein, Wired
Author Michael Lewis’ newest book, Flash Boys: A Wall Street Revolt, topped The New York Times bestseller list a week after release, and a screen version is rumored to be in the works with bigwig film producer Scott Rudin, whose long list of credits includes There Will Be Blood, The Girl with the Dragon Tattoo, and Lewis’ book about the Oakland A’s, Moneyball.
NASDAQ OMX Named Best Data Center Provider To The Sell Side – Water Magazine Sell-Side Technology Awards
NASDAQ OMX (Nasdaq:NDAQ) was recently named winner of ‘Best Data Center Provider to the Sell Side’ by Waters Magazine’s second annual Sell-Side Technology Awards. NASDAQ OMX received the award for the NASDAQ OMX Data Center, which provides market participants with access to the most liquid electronic exchanges and over-the-counter platforms for trading in virtually every access class.
S’pore and Brunei monetary authorities ink MOU on bilateral cooperation
The Monetary Authority of Singapore and Autoriti Monetari Brunei Darussalam have signed a Memorandum of Understanding on bilateral cooperation.
ESMA Publishes Updated Data On Performance Of The Credit Rating Agencies
Looking at Corporate Governance from the Investor’s Perspective
Commissioner Luis A. Aguilar at Emory University School of Law, Corporate Governance Lecture Series, Atlanta, Georgia
Thank you for inviting me to speak in connection with the launch of Emory Law School’s newest journal: The Emory Corporate Governance and Accountability Review. Before I begin my remarks, let me issue the standard disclaimer that the views I express today are my own, and do not necessarily reflect the views of the U.S. Securities and Exchange Commission (“SEC” or “Commission”), my fellow Commissioners, or members of the Commission’s staff.
Japan’s Securities And Exchange Surveillance Commission: Recommendation For Administrative Monetary Penalty Payment Order For Violation Of Disclosure Requirements By Taiyo Shokai Inc.
SEC Eyes Potential Order Routing Disclosures
Ivy Schmerken, Editor at Large, Wall Street Tech
Requiring brokers to provide more transparency into their stock order routing practices would give investors more information on where their trades are being executed.
Exchanges & Trading Facilities
Direct Edge Trading Notice #14-13: Enhancement to EDGX Attribution Program
EDGX ExchangeSM (EDGX®) will introduce a new enhancement to the Attribution program, pending approval by the Securities and Exchange Commission (SEC). Effective on or about June 18, 2014, Members will now have the ability to identify their orders as retail using a standard identifier as an alternative to using their firm’s MPID. The retail identifier will be disseminated via EdgeBook Attributed, along with other Attribution messages.
MAB WELCOMES NPG TECHNOLOGY
MAB today welcomed NPG TECHNOLOGY to its segment for Growth Companies. It is the first company to join this market in 2014 and has a market capitalisation of € 16.6 million. The company has financed itself through a capital increase of €5 million that will be used to support its international expansion.
Binary Options Exchange Nadex Welcomes Group One Futures Trading as Market Maker
The Chicago-based regulated binary options exchange operator known as the North American Derivatives Exchange (Nadex), has today announced that Group One Futures Trading, LLC (Group One) has joined its exchange membership as market maker.
Self-Regulatory Organization (SRO) Rulemaking and National Market System (NMS) Plans
CBOE: Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Amend its Fees Schedule (Release No. 34-71971; File No. SR-CBOE-2014-037; April 18, 2014); see also Exhibit 5
Nasdaq Bows Managed Reporting, New Fees for BONO, ITTO Options Data
Nasdaq OMX has introduced a new distribution option and accompanying fees for data from its Nasdaq Options Market’s Best of Nasdaq Options (BONO) and ITCH to Trade Options (ITTO) feeds that allows distributor firms to redistribute the data to consumer firms via feeds or APIs for use in non-display applications, and to manage the reporting and entitlement requirements on behalf of those firms.
MGEX HRSW Futures Open Interest Broken
MGEX, a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO), today announces record-breaking open interest after Thursday’s trade date. Both the all-time open interest record and the Hard Red Spring Wheat (HRSW) futures open interest record were broken. Before April 16, 2014, the previous HRSW futures open interest record was set back in November 2010.
Hedge Funds & Managed Futures
Canadian gold mining’s bidding war shows appeal of buy over build
By Nicole Mordant, Reuters
A takeover battle for Canada’s Osisko Mining Corp (OSK.TO), involving three of the world’s top gold producers, is more than just a testament to the quality of the company’s low-cost mine, it also spotlights a shortage of top-class gold assets in politically stable areas of the world.
Goldcorp Drops Pursuit of Osisko Mining; Yamana Gold and Agnico-Eagle Mines Can Now Close Their Friendly Takeover
By Judy McKinnon, WSJ
Goldcorp Inc. said Monday it won’t boost its offer for Osisko Mining Corp., paving the way for rival miners Yamana Gold Inc. and Agnico-Eagle Mines Ltd. to close their friendly takeover of the Quebec-based miner.
Paul Allen’s top money manager to leave post
The lead money manager for Microsoft Corp co-founder Paul Allen is leaving his post this week, marking the latest in a round of high-level departures at the Seattle billionaire’s Vulcan Inc organization, which handles his $16 billion fortune.
Banks & Brokers
Merrill sets new $8 million bragging target for its top brokers
By Jed Horowitz, Reuters
Merrill Lynch is dangling a new incentive in front of its brokers by creating a “recognition club” for those who bring in $8 million or more a year from clients, more than doubling the top goals set by its securities industry rivals.
Clearing & Settlement
Physical Aluminum Futures.
CME Group Delivery Dates for May 2014
Indexes & Products
STOXX Limited named Best ETF Index Provider North America
ICBC Financial Services Uses XSP to Adopt ISO 20022
Industrial and Commercial Bank of China Financial Services is now using the XSPrisa software from SunGard’s XSP business to process corporate actions in ISO 20022, rather than using the DTCC’s CCF files
Former Deutsche Bank Salesman Admits Bribery in Tokyo
By Takahiko Hyuga, Bloomberg
Former Deutsche Bank AG (DBK) salesman Shigeru Echigo admitted to bribery charges in Tokyo and said he acted on instructions from his managers, as authorities push brokerages to be more judicious in entertaining clients.
At the start of his trial in the Tokyo District Court today, Echigo accepted prosecutors’ argument that he bribed a pension fund executive to buy investment products. Echigo, 37, spent about 900,000 yen ($8,800) entertaining the client on 15 occasions from April to September 2012, the prosecutors said.
SEC Charges a Former Biopharmaceutical Company Executive and Two Others with Insider Trading
The Securities and Exchange Commission today charged a former biopharmaceutical company executive and two others with insider trading on confidential information about the company’s key developmental drug. The company’s stock price fell sharply when it announced clinical trial results for the drug.
HK regulator reprimands, fines RBS over emerging-markets rates trades
Hong Kong’s Securities and Futures Commission (SFC) said on Tuesday it reprimanded Royal Bank of Scotland (RBS.L) for internal control failures, fining the bank HK$6 million ($773,800).
Environmental & Energy
Senior commodities salesman quits JP Morgan
By Alexander Osipovich, Energy Risk
David Samuels exits JP Morgan amid commodities shake-up and sale of physical business to Mercuria
David Samuels, a New York-based managing director in JP Morgan’s commodities group, left the bank in the first half of April, according to a source familiar with the situation.
Fearless Traders Shun Options as Kospi Risk Falls: Korea Markets
By Sharon Cho, Bloomberg
As options traders from the U.S. to Germany and India grow more concerned about a selloff in stocks, they’ve never been so sanguine in South Korea.
Dalian Commodity Exchange: Notice On Adjusting The Designated Delivery Warehouses Of No. 2 Soybeans
Ten More Brokers Agree To Produce Analysis For Thai mai-Listed Firms
The Market for Alternative Investment (mai), under The Stock Exchange of Thailand (SET) group, today signed a memorandum of understanding (MOU) with ten brokers to produce financial statement analysis for companies listed on mai. The analyses would give insights for investment’s decision making with an expectation that there would be analyses covering about 50 companies, from the total of 96 mai-listed firms.
Thai Bourse Holds First “SET-Thai Corporate Day” In May To Showcase Small-, Medium-Cap Firms To Foreign Funds
The Stock Exchange of Thailand (SET) has joined hands with DBS Vickers Securities (Thailand) Co., Ltd. to organize “SET-Thai Corporate Day 2014: Discovering Thai Value Stocks” during May 6-7 in Bangkok. This is the first inbound roadshow ever for listed small- and medium-cap companies to present their strengths and effectiveness to global foreign investors.
TSE has published the index value of TSE Home Price Index for February
TSE has published the index value of TSE Home Price Index for February on April 22, 2014. The index value of TSE Home Price Index (Used Condominium, Composite of Tokyo Metro Area) is 79.95 points.
Kuwait’s stock exchange takes step towards delayed IPO
Kuwait’s stock exchange took a step towards an initial public offer of its shares on Monday after the Gulf state’s financial regulator said it had established the bourse as a company with a capital of 60 million dinars ($213 million).
Why It’s Hard to Detect Insider Trading in India
By Kenan Machado, WSJ
India needs better investigative powers and tools to combat insider trading, says some analysts and former regulators.
When a stock soars or plunges for no apparent reason in India, analysts and investors usually assume the shares are moving on information that is not yet public. However despite the widespread belief in regular insider trading, there are few examples of insider traders getting prosecuted here.
Fin Tech’s MCX stake to go to multiple investors: Sources According to the prevailing norms, no single foreign investor can own more than 5 percent stake in MCX.
Financial Technologies ’ MCX stake is likely to go to multiple investors, sources tell CNBC-TV18. Therefore, no single investor is likely to get the entire 24 percent stake in MCX. FMC sources say Kotak Mahindra Group and CME are currently front-runners for the MCX stake.
QE Index Breaks Record & Qatar Equity Market Hits All-Time High
Qatar Stock Exchange
QE Index today set a new all-time high, closing at 12939.8, vs. the previous high closing price of 12892.76 recorded 20th September 2005. The index has recorded 24.67% already this year (30.11% with dividends reinvested) making it the 2nd best index performer globally YTD according to data by Bloomberg.
Singer, Griffin Among Billionaires Funding Rove Super-PAC
By Greg Giroux, Bloomberg
Billionaires B. Wayne Hughes, Paul Singer and Ken Griffin are among two dozen donors who together gave $5.2 million last month to American Crossroads, a Republican group aligned with political strategist Karl Rove.