John Lothian Newsletter: London Metal Exchange to Launch Premium Contracts for Metals; CBOE looks to shed some regulatory duties; Bank Moves to Avoid Overseas Swap Rules Watched by U.S. Treasury

Sep 12, 2014

First Read

Steve Brodsky, CEO, Spot Trading – My LIFFE: Markets Then and Now
JohnLothianNews.com

“I know this is the most dynamic industry out there…the creative renewal in this industry is like no other.”

During a time when LIFFE was battling for the Bund futures contract, Steve Brodsky, CEO of Spot Trading, remembered sitting in a meeting with Deutsche Börse and talking about how electronic trading was going to become a game changer for the marketplace. Those in the meeting proceeded to laugh. Today, electronic trading has become dominant in the financial industry, and the way futures contracts were traded changed significantly. Brodsky highlights the rise of electronic trading, from its unsure beginnings to today’s world, where high frequency trading has caught the attention of the financial industry and media. Brodsky also discusses the effects of regulation and gives his prediction of what the market structure of the future may look like.

Watch the video »

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Riders on the Storm: Orc Group’s Troels Philip Jensen Looks at Consolidation in the Vendor Space
JohnLothianNews.com
The financial sector has been feeling the squeeze over the past few years. Lower trading volume, sustained low volatility and added expense from new regulations have combined to create a precarious situation for independent service vendors serving the listed derivatives space, and has led to a wave of consolidation among its players. Orc Group’s Troels Philip Jensen says the trend will eventually subside, but only the most strategic-thinking firms will survive and thrive.

Watch the video »

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Who are the participants in modern markets?
By Mark Spanbroek, Vice Chairman, European Principal Traders Association
It has been noted many times over recent weeks and months (not to mention years) that the current market structures are complex and difficult to understand as an outsider. For those of us trading in the markets every day, we use terms like market makers, buy side and sell side unthinkingly; we know how trades get to market (i.e. the exchange) – who they go via, and how they are executed. What we haven’t been accustomed to considering, is that there may be others who are interested in understanding how their markets work.
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***** Nice graphics with this piece.

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7 Reasons the Tick Pilot Will Hurt Small-Cap Investors
By Dave Cummings, Tabb Forum
The SEC should be applauded for its data-driven approach to very complex market structure issues. But as it currently is proposed, the tick pilot is likely to do more harm than good.
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***** The founder of BATS weighs in.

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Addendum to the CME Gold Futures Story
Sarah Rudolph, John Lothian News
The lead story in yesterday’s John Lothian Newsletter was a Reuters report that said CME Group is planning to launch a gold futures contract in Hong Kong by year end. We were a little uncertain about how this would work, since the CME does not have an exchange located in Hong Kong, so we spoke with the CME about it.
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***** Our own Sarah Rudolph tracking down the Reuters/CME Gold story from yesterday for the rest of the story.

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ICE to offer smaller gold futures delivery in bid to boost volume
By Frank Tang, Reuters
ICE Futures U.S. said on Thursday it will reduce contract size and increase purity in its Mini Gold futures and options, its latest attempt to boost trading volume by appealing to retail investors.
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***** Delivery is important to small retail investors. The easier you can make it, the more successful the contract will be. I have long believed the exchanges should get back into the vault business. There is a nice big one in the basement of the CBOT Building.

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The Learning Myth: Why I’ll Never Tell My Son He’s Smart
By: Salman Khan, Khan Academy
My 5-year-­old son has just started reading. Every night, we lie on his bed and he reads a short book to me. Inevitably, he’ll hit a word that he has trouble with: last night the word was “gratefully.” He eventually got it after a fairly painful minute. He then said, “Dad, aren’t you glad how I struggled with that word? I think I could feel my brain growing.” I smiled: my son was now verbalizing the tell­-tale signs of a “growth­ mindset.” But this wasn’t by accident. Recently, I put into practice research I had been reading about for the past few years: I decided to praise my son not when he succeeded at things he was already good at, but when he persevered with things that he found difficult. I stressed to him that by struggling, your brain grows. Between the deep body of research on the field of learning mindsets and this personal experience with my son, I am more convinced than ever that mindsets toward learning could matter more than anything else we teach.
jlne.ws/1AFV8zr

***** Sal Khan was the winner of the Melamed-Arditti Innovation Award in 2013. http://jlne.ws/1BxPRwc; There is also a great podcast on the Ted Radio Hour called “Unstoppable Learning” which is worth a listen – http://n.pr/1BxStud

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As music sales fall, sax player Kenny G turns to stockpicking
By David Randall, Reuters
Kenny G, the best-selling jazz musician who once played at President Bill Clinton’s inaugural ball, wakes up every morning to Starbucks. The saxophonist doesn’t drink coffee. Instead, the man whose real name is Kenny Gorelick obsessively checks the company’s stock price. Gorelick was one of the first investors in the Seattle-based chain. He was introduced to Starbucks chief Howard Schultz through an uncle, before the company went public, and soon bought a stake. Shares are up more than 12,000 percent since beginning public trade.
jlne.ws/1szzBrF

***** Stock picks to put you to sleep.

***DA: In other news, Michael Bolton is writing algos for a local prop firm.

MarketsWiki

MarketsWiki Page of the Day
Cees Vermaas
jlne.ws/1oyoLgy

MarketsWiki Recent Updates

People

Cees Vermaas; Luis Laginha de Sousa; Phillipe Duranton; Leo Melamed; John Thain; Andrew T. Brandman; David Rutter

Companies, Organizations and Groups

Chicago Board of Trade; Montreal Exchange Inc.; NYSE Euronext; CME Europe

Statistics

52,870,661 pages viewed, 8,035 articles, 185,910 edits
MarketsWiki Statistics

Lead Stories

BGC Partners And Cantor Fitzgerald Raise Approximately $12 Million On BGC’s Tenth Annual Charity Day
BGC Partners
BGC announced that the firm, together with its affiliate Cantor Fitzgerald, raised the same as last year at approximately for charities around the world, at the companies’ annual on Thursday, September 11, 2014.
jlne.ws/1szxJ2e

Bank Moves to Avoid Overseas Swap Rules Watched by U.S. Treasury
Bloomberg
Treasury is watching steps banks have taken to remove parent-company guarantees from their overseas affiliates and whether those steps eliminate the U.S. banks’ exposure, the official said yesterday. Banks have been changing operations to trade derivatives with other dealers in the $700 trillion global market in a way that avoids curbs imposed by the Dodd-Frank Act.
jlne.ws/1tGYKih

London Metal Exchange to Launch Premium Contracts for Metals in 2015; Exchange’s Move Would Allow Market Participants to Protect Themselves From Spikes in Costs
By Ese Erheriene, WSJ
The London Metal Exchange on Thursday said it would launch premium contracts in the second quarter of 2015, which could allow market participants to protect themselves from spikes in costs that arise on top of the cost of the metal.
jlne.ws/1nQf5Od

Stock exchange on the cards for independent Scotland
Giles Turner, Financial News
A ‘Yes’ vote at next week’s referendum on Scottish independence could turn speculation about the re-establishment of a stock exchange in the country into a reality.
jlne.ws/1lZTQhO

CBOE looks to shed some regulatory duties
By Lynne Marek, Crain’s
CBOE Holdings Inc., which owns, operates and polices the Chicago Board Options Exchange, is preparing to outsource some of its regulatory duties.
jlne.ws/1urg79q

Chicago at Brink of Swaps Fee as Bond Ratings Fall: Muni Credit
By Darrell Preston and Elizabeth Campbell, Bloomberg
Chicago’s deteriorating credit quality has pushed taxpayers to the brink of paying almost $400 million to Wall Street banks on derivatives contracts that are backfiring.
jlne.ws/YD5q82

Eight charged in New York in $290 mln stock scheme
By Karen Freifeld, Reuters
Eight people were charged on Thursday in New York with duping thousands of investors into purchasing $290 million worth of penny stocks in “pump and dump” schemes. Three of the people blasted emails “pumping” the stocks to thousands of potential investors, Manhattan District Attorney Cyrus Vance Jr. said in a statement announcing the 85-count indictment.
jlne.ws/1uyTtee

If Scots keep the pound they forgo independence
By Martin Wolf, FT
AlternaAlternatives to the currency union exist and some might work well
Is the opposition of the three main political parties at Westminster to a post-independence currency union with Scotland a bluff? North of the border, many believe it is. I have no window into men’s souls: these Scots may be right.
jlne.ws/1rSCWxP

Scotland can be ‘Singapore’ of Europe: WPP’s Sorrell
CNBC
An independent Scotland could take marketing lessons from Singapore’s business-friendly, trade-dependent economy, the world’s largest advertising group told CNBC.
jlne.ws/1pcQDGe

Liquidnet: How we’re expanding into bonds
CNBC
Seth Merrin, CEO of Liquidnet, describes how the firm plans to tap into the $10 trillion corporate-bond market.
jlne.ws/1pWyJI4

Buy-side braces for glut of new fixed income platforms
John Bakie – The Trade
A new wave of fixed income trading platforms are set to launch in the coming months and, while they are each taking a different approach, all are targeting the buy-side as the key to unlocking liquidity.
jlne.ws/1pUlszH

Regulatory

Exclusive: Wall Street watchdog to pick insider as arbitration head – source
By Suzanne Barlyn, (Reuters
The Financial Industry Regulatory Authority has narrowed its search for a new head of its arbitration unit to two of its own long-time officials, according to a person familiar with the matter. FINRA, Wall Street’s industry-funded watchdog, will replace the retiring chief of its arbitration unit with either Richard Berry, the unit’s director of case administration, or Kenneth Andrichik, its mediation director, the person said.
jlne.ws/1pcNZ3e

FINRA Issues New Investor Alert, Frontier Funds—Travel With Care
FINRA
WASHINGTON—The Financial Industry Regulatory Authority (FINRA) issued a new Investor Alert called Frontier Funds—Travel With Care cautioning investors interested in funds that invest in frontier markets to carefully consider the heightened risks in these markets. While there is no precise definition of a frontier market, frontier funds generally invest in companies located in countries with developing securities markets such as Argentina, Lebanon, Nigeria, Slovenia and Vietnam.
jlne.ws/1pUpwQu

Treasury Monitoring Swaps Loopholes at U.S. Banks
WSJ/Barron’s
The Treasury Department is monitoring U.S. banks that are shifting some trading operations overseas to avoid tough U.S. swaps rules, according to a department official.
jlne.ws/1xT7Grl

Treasury Is Weighing Action on Hedge-Fund Tax ‘Loophole’
Zachary R. Mider – Bloomberg
The U.S. Treasury Department said it’s considering ways to end a “loophole” that allows hedge-fund managers to avoid taxes by routing their investments through an insurance company in low-tax countries like Bermuda.
jlne.ws/1pUqc8t

SEC Announces Creation of New Office Within its Division of Economic and Risk Analysis
The Securities and Exchange Commission today announced the creation of a new office within the Division of Economic and Risk Analysis (DERA) that will coordinate efforts to provide data-driven risk assessment tools and models to support a wide range of SEC activities.
jlne.ws/1pUprfy

CFTC Financial Data For Futures Commission Merchants Update
Futures commission merchants (FCMs) and retail foreign exchange dealers (RFEDs) must file monthly financial reports with the CFTC’s Division of Swap Dealer and Intermediary Oversight (DSIO) within 17 business days after the end of the month.
jlne.ws/1pUpVCi

FCA secures pre-trial injunctions and freezing orders to protect consumers from unauthorised clone
The FCA has commenced civil proceedings because it is concerned that individuals purporting to be Joh. Berenberg, Gossler & Co. KG have carried on regulated activities in breach of the Financial Services and Markets Act 2000 by acting without authorisation.
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Canadian Securities Regulators Move Forward With Harmonized Regulatory Approach For Take-Over Bids In Canada
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Remarks To The Practising Law Institute, Hedge Fund Management Seminar 2014, Norm Champ, Director, Division Of Investment Management, U.S. Securities And Exchange Commission, New York, NY, Sept. 11, 2014
jlne.ws/1pUpJmN

Exchanges & Trading Facilities

ParFX trials high-speed market makers on platform
By Philip Stafford, FT
ParFX, a spot foreign exchange trading venue set up to discourage some high-frequency trading practices, is experimenting with allowing high-speed market makers on to its platform.
jlne.ws/1oBsQk7

Gold Trading to Begin in FTZ as CME Plans Futures in Hong Kong
Bloomberg
Gold trading in the Shanghai free-trade zone will begin at the end of the month, while CME Group Inc. is planning a gold futures contract in Hong Kong, underscoring a push for new price benchmarks in the biggest consuming region as demand moves east.
jlne.ws/1pUqI6v

Deutsche Börse-backed bond platform eyes November launch
Tim Cave, Fiancial News
A new “all-to-all” electronic bond trading system backed by German exchange group Deutsche Börse is set to go live in November and is targeting up to 100 buyside and sellside firms at its launch.
jlne.ws/1nQen3B

CBOE may hand off regulatory duties to independent agency
By Tom Polansek, Reuters
CBOE Holdings Inc, operator of the largest U.S. stock-options market, may hand off some of its regulatory duties to the securities industry’s largest independent regulator within the next several months, the company said on Thursday.
jlne.ws/1szEUHH

CBOE and C2 in Discussions on Regulatory Services Agreement With FINRA
CBOE Holdings, Inc. today announced that Chicago Board Options Exchange and C2 Options Exchange are in discussions with the Financial Industry Regulatory Authority on a potential agreement for FINRA to provide certain regulatory services to the CBOE and C2 options markets.
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Customer Marketing Internship, Chicago
CME Group
Assist Marketing, Sales and TBS teams with maintaining our CRM databases, and work with teams on ensuring accurate customer data is gathered for project initiatives.
jlne.ws/1qPdUlE

Staff Attorney CMEOL, London
CME Group
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Tin Smelters in Indonesia Holding Out for Premiums to LME
Bloomberg
on the London Metal Exchange … The Jakarta-based exchange … The ICDX is the only exchange in Southeast Asia’s largest economy that’s permitted to trade the refined metal … Tin in London … above…
jlne.ws/WSAD5x

Nasdaq CEO Greifeld on Tax Code, High Frequency Trading: Video
Bloomberg
Bob Greifeld, chief executive officer of Nasdaq OMX Group Inc., talks about the need for U.S. tax code changes and ways to cut the incentive for companies to reduce tax bills by moving their addresses to other countries. Greifeld, speaking with Trish Regan on Bloomberg Television’s “Street Smart” also discusses high-frequency trading and cybersecurity.
jlne.ws/1tO3s1z

TMX Group Kicks Off Trade Canada U.S. Roadshow In Chicago
TMX Group today launched its 2014 U.S. campaign in Chicago with a conference event to discuss issues of impact in Canadian capital markets.
jlne.ws/1pUpXua

SIX Swiss Exchange: August 2014: lower trading activity
jlne.ws/1tO1LB8

Hedge Funds & Managed Futures

Fortress finance pulls up the virtual drawbridge
Gillian Tett – Financial Times
Western investors have largely shrugged off the military conflict in Ukraine, pushing global markets higher. But, deep inside some financial institutions and intelligence services, a debate is bubbling that investors should watch. This revolves not around boots and tanks but the cyber world.
jlne.ws/1tNZFBd

PRECIOUS-Gold stuck near 7-1/2 mth low; set for worst week since May
CNBC
SINGAPORE, Sept 12- Gold extended losses to trade near a 7-1/ 2 month low on Friday, poised to post its worst week in more than three months as a stronger dollar and easing tensions in Ukraine curbed appetite for safe-haven bullion.
jlne.ws/1qrlqFA

Ready or not – currency volatility is back
By Delphine Strauss, FT
Only a few weeks ago, the foreign exchange market was becalmed. With central bank stimulus keeping volatility at record lows for much of the year, volumes in the spot market had slumped, traders were twiddling their thumbs and currency managers struggling to justify their existence.
jlne.ws/1BxJDMV

US rate traders dust off their playbooks
By Michael Mackenzie, FT
All eyes are on the Fed as Treasury bond yields rise
Another US football season has begun, and like quarterbacks and coaching staff, interest rate traders are also dusting off their trusty set of playbooks.
jlne.ws/YCZFXX

Hedge fund equity titans come unstuck in Europe
Philip Georgiadis. Financial News
For some of Europe’s biggest hedge fund managers, 2013 was always going to be a tough year to beat in equities. But few would have expected them to be losing money this year instead.
jlne.ws/1xSTr5L

Backdoor Tax Increases May Hit Investors; Profits From ‘Inversions’ and Other Deals Could Trigger Alternative Minimum Tax, Exemption Phaseouts and More on 2014 Returns
WSJ
Many investors will see spikes in income this year as a surge in corporate deals generates unexpected payouts. That could trigger a surprising spike in their tax rates, too.
jlne.ws/1CZzw58

IMA: Concentration of fund flows ‘not happening as we expect’
Investment Week, Dan Jones
The Investment Management Association has said there are signs the polarisation of fund flows is decreasing, despite consolidation across the distribution chain pointing to the opposite effect.
Data compiled by the trade body for its 2013/2014 annual survey, released last week, shows funds outside the top 100 bestsellers increased their overall market share last year at the expense of the top 20 bestsellers.
jlne.ws/1wibJZG

Baring Multi-Asset sees AUM halve in a month after managers exit
Investment Week, Laura Dew
The Baring Multi-Asset fund has lost over half of its assets in a month after Andrew Cole, Percival Stanion and Shaniel Ramjee left the group.
jlne.ws/1lZtWKE

Icahn’s son scraps plans to launch hedge fund management firm
CNBC
Sept 11- Billionaire investor Carl Icahn’s son, Brett Icahn, has scrapped plans to start his own hedge fund firm and will continue staying with his father’s firm, a source familiar with the situation told Reuters on Thursday.
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Third Point Boosts Assets Managed to About $17.5 Billion
Beth Jinks – Bloomberg
Third Point LLC, the hedge fund firm run by billionaire Daniel Loeb, boosted assets under management to about $17.5 billion after telling investors he would reopen to new money in July.
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Schroder UK Growth board plans beauty parade for Dean replacement
Anna Fedorova – Investment Week
The board of the Schroder UK Growth trust, previously run by Julie Dean, is planning to review alternative managers for the trust in the next few weeks following the manager’s departure.
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Banks & Brokers

Barclays Names John McFarlane as Next Chairman
By Chad Bray, New York Times
LONDON – Barclays said on Friday that John McFarlane, the chairman of the British insurer Aviva, would succeed David Walker, its chairman, who is set to retire next year. Mr. McFarlane, the former head of Citigroup’s business in Britain and Ireland and the former chief executive of the Australia and New Zealand Banking Group, will join the Barclays board of directors in January and is expected to succeed Mr. Walker as chairman after the British lender’s annual meeting next year.
jlne.ws/1lZvioE

Lehman Brothers to sell $2.5bn in bankruptcy claims
Chelsey Dulaney, The Wall Street Journal
Lehman Brothers said Thursday that it has agreed to sell $2.5 billion in bankruptcy claims that the failed investment bank holds against its US brokerage arm.
jlne.ws/1uyU1kn

JPMorgan says no cyber attack-related customer fraud seen
Reuters
JPMorgan Chase & Co said it had not seen any unusual customer fraud related to a recent cyber attack on the bank.
jlne.ws/1uLf4zs

Well-Wisher-In-Chief Obama Called Dimon During Treatment
By Emily Glazerk, WSJ
In the days after Jamie Dimon publicized his throat cancer diagnosis in July, he received thousands of messages wishing him a speedy recovery — including one from President Barack Obama. During one of his earliest treatments, the J.P. Morgan Chase & Co. chairman and chief executive received a call on his cell phone from President Obama, who wished him a healthy recovery, the bank confirmed.
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The Cancer Treatment Path of J.P. Morgan’s James Dimon – MoneyBeat
Emily Glazer – MoneyBeat – WSJ
J.P. Morgan Chase & Co. chief James Dimon this week wrapped up his scheduled cancer treatment after first disclosing his throat cancer diagnosis in July.
jlne.ws/1pUlp6S

Ana Botín Will Have to Hit the Ground Running
Jeannette Neumann – WSJ
Ana Patricia Botín this week must bury and memorialize her father, Emilio Botín, the Banco Santander SA chairman who died suddenly on Tuesday evening of a heart attack.
jlne.ws/1pUp44K

Barclays May Need More Capital for Fines, Berenberg Says
Richard Partington – Bloomberg
Barclays Plc (BARC), Britain’s second-biggest bank, and Credit Suisse (CSGN) Group AG may need to raise more capital to cover the cost of potential fines, Berenberg said.
jlne.ws/1pUqCLY

Liquid Adds Three to Risk Team
Timothy Bourgaize Murray – WatersTechnology
Jeremy Shaw, Richard Boesch, and Isaac Babani each join the provider’s risk analytics team in a senior financial engineer role.
jlne.ws/1pUlLKS

Swiss Bank Merger Speculation Overblown, Vontobel CEO Say
Bloomberg
Switzerland’s wealth management … Switzerland’s wealth managers … About a dozen Swiss banks are being investigated by the U.S. Justice Department for allegedly helping Americans hide money … or asset management …
jlne.ws/1AG2vqC

Clearing & Settlement

CCPs should prioritise resolution and recapitalisation, says JP Morgan
The Trade
A J.P. Morgan research paper has called for substantive changes to ensure that central counterparties (CCPs) can continue as ongoing concerns and serve as the market-stabilising force envisaged by regulators.
jlne.ws/1lZuvUI

Barnier hints at longer pensions clearing exemption
By Cecile Sourbes, Risk.net
The EC’s head of internal markets, Michel Barnier, has hinted that the regulator will extend the pension funds derivatives clearing exemption beyond 2015
jlne.ws/YCUG9V

Indexes & Products

S&P Dow Jones Indices says Alibaba could be added to global benchmarks
Reuters
S&P Dow Jones Indices, which compiles several of the world’s most widely tracked stock benchmarks, said on Friday it had assigned Alibaba Group Holding Ltd (IPO-BABA.N) a China domicile, opening the way for the company to be added to global benchmarks that include Chinese stocks.
jlne.ws/1wid4Q8

U.S.-based stock funds attract $982 mln over week -Lipper
Luciana Lopez – Reuters
Investors in U.S.-based funds added a net $982 million into stock funds in the week ended Sept. 10, data from Thomson Reuters’ Lipper service showed on Thursday.
jlne.ws/1pUp9VV

Xetra/Börse Frankfurt: Two New PowerShares ETFs Launched On Xetra
ETFs Based On Agricultural Companies And FTSE RAFI All-World 3000 Index
jlne.ws/1pUpRT2

Technology

U.S. threatened hefty fines to make Yahoo hand over user data
Reuters
The U.S. government in 2008 threatened to fine Yahoo Inc $250,000 a day if it failed to turn over customer data to intelligence agencies, according to documents unsealed on Thursday.
jlne.ws/1uyTqiF

Venue & Order Routing Analytics to Boost Transparency in Fragmented Market
By Ivy Schmerken, WallStreet & Technology
Tabb Group announced Clarity, a venue and order routing analysis service, to help the buy side understand where and how orders are executed and handled in the fragmented stock market.
Buy-side firms can rapidly execute an order in the stock market through a maze of exchanges and dark pools, but figuring out how many venues that order touched on its way to its final destination remains a mystery for some traders.
jlne.ws/1qr5005

Leaving Out the Welcome Mat for Financial Services Hackers
Lev Lesokhin – Wall Street & Technology
Everyone knows the financial services industry is a prime target for hackers. Despite the dangers, many applications have software vulnerabilities that expose real risks.
jlne.ws/1tO1HkS

Outsourcing technology brings rewards – and risks
Kimberley Long – Euromoney Magazine
Banks need to keep up to date with the changing technological landscape, but with time and financial constraints, enlisting an external vendor might not be the best option.
jlne.ws/1pUl3x8

Enforcement

New UK rules clear the way for more banker prosecutions
Paige Long – Risk.net
Proposed regulations on individual accountability will have significant impact on how senior bankers in the UK operate and structure their business lines, lawyers believe
jlne.ws/1pUmhbB

SEC Charges Bank Holding Company in Delaware with Improper Accounting and Disclosure of Past Due Loans
The Securities and Exchange Commission today announced accounting and disclosure fraud charges against a Delaware-based bank holding company for failing to report the true volume of its loans at least 90 days past due as they substantially increased in number during the financial crisis.
jlne.ws/1pUpoAs

Chief Technology Officer Of Liberty Reserve Pleads Guilty
The former chief technology officer of Liberty Reserve, a company that operated one of the world’s most widely used digital currency services and allegedly laundered billions in suspected criminal proceeds, pleaded guilty today in the Southern District of New York in connection with his role in designing and maintaining the technological infrastructure for Liberty Reserve.
jlne.ws/1pUpYOx

Environmental & Energy

Eastern Europe Braces for Energy Shortages as Russian Gas Flows Fall; Moscow’s Dispute With Ukraine Over Gas Payments Threatens Supplies
By Sean Carney, WSJ
A fall in gas flows from Russia to two Eastern European countries this week has sent a chill through the region as it prepares for possible energy shortages this winter.
jlne.ws/1wichij

Carbon Market Volatility to Jump on EU Overhaul Talks
Bloomberg
Volatility, an asset’s price relative to… ” Volatility is good news because it increases the chance of profitable trading,” Jan Fousek, managing director at brokerage…
jlne.ws/1AG2BP3

GE May Invest in Polish Wind Farms Amid Renewable Law Changes
Bloomberg
Wind farms more than doubled output in the last three years to 5.9 terawatt-hours in 2013, energy regulator … GE Energy Financial Services said in March it expects to invest”…
jlne.ws/1nQkTHv

Asia-Pacific

Chinese Vice Premier Ma Kai visits LME
LME
Chinese Vice Premier Ma Kai yesterday (Thursday) visited the London Metal Exchange (LME), a member of the Hong Kong Exchanges and Clearing Limited (HKEx) Group, during his current trip to the United Kingdom (UK) for the sixth UK-China Economic and Financial Dialogue.
jlne.ws/1qrbvQu

Japan’s Financial Services Agency Publishes An English Translation Of Key Matters In Examining Liquidity Risk Management At Large Complex Financial Groups
MondoVisione
The FSA published today an English translation of Key matters in examining Liquidity Risk Management at Large Complex Financial Groups.
jlne.ws/Zj8uGv

London Stock Exchange Group Signs MOU With China Construction Bank
MondoVisione
London Stock Exchange Group (LSEG) yesterday signed a memorandum of understanding (MoU) with China Construction Bank (CCB). The agreement, signed by LSEG CEO, Xavier Rolet and CCB Chairman, Hongzhang Wang, will see the two organisations enter a strategic cooperation and work together to expand each company’s access to UK, European and Chinese markets as well as promoting the development of the offshore RMB market in the UK.
jlne.ws/1pWlJ53

HKEx: Exchange Publishes Rule Amendments On Chapter 20 Of The Main Board Listing Rules
MondoVisione
The Stock Exchange of Hong Kong Limited (the Exchange), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx), today (Friday) published minor Rule amendments on Chapter 20 of the Main Board Listing Rules governing Collective Investment Schemes (CIS) that are authorised by the Securities and Futures Commission.
jlne.ws/1xSOtWx

‘China risk’ still haunts Japan firms
CNBC
Amid a revival in sales of Japanese goods in China and talk of renewed investment from some big firms such as Toyota, a dusty industrial park near Nanjing offers a cold reality check on the health of ties between Asia’s two biggest economies.
jlne.ws/1uLjfv1

Could China Stock Behavior Change?
By Ami Li, WSJ
China’s stock market has been plagued by rampant speculation for years. Will this change with the launch of a stock trading link between Shanghai and Hong Kong stock exchanges? Possibly.
jlne.ws/1pWkrqG

Yuan Loan-Backed Bond Surge Prompts China Risk Warnings
Bloomberg
without breaching regulatory… The practice has attracted global regulatory focus since the 2008… An official at the China Banking Regulatory… help economic reform and to channel funding…
jlne.ws/1wihdne

Frontier Markets

FINRA Issues New Investor Alert, Frontier Funds-Travel with Care
The Financial Industry Regulatory Authority (FINRA) issued a new Investor Alert called Frontier Funds—Travel With Care cautioning investors interested in funds that invest in frontier markets to carefully consider the heightened risks in these markets. While there is no precise definition of a frontier market, frontier funds generally invest in companies located in countries with developing securities markets such as Argentina, Lebanon, Nigeria, Slovenia and Vietnam.
jlne.ws/1pUpwQu

Oman Crude Oil Futures Contract (DME Oman) Traded At 26-Month Low
jlne.ws/1pUpQ1E

Open interest on palm oil futures soars as industry, specs bet
CNBC
SINGAPORE, Sept 12- The volume of open positions in Malaysian palm oil futures jumped to a record high this week, suggesting the market may be bottoming out after falling to its lowest price in more than five years.
jlne.ws/1pWzUas

Miscellaneous

There’s no fear in the markets: Time to worry?
CNBC
Even by summer’s low stock volume standards, this year has been light, culminating in a “dismal” August which has left volumes down year-on-year.
jlne.ws/1urpxl9

Madoff Son Andrew Leaves More Than $15 Million in Will
Bloomberg
Irving Picard, the trustee appointed to collect money for victims of the fraud… who… because his investment-management… said, used money from the firm to” fund…
jlne.ws/1qPn7uj

Expats Left Frustrated as Banks Cut Services Abroad; Americans Overseas Struggle With Implications of Crackdown on Money Laundering and Tax Evasion
By Laura Saunders, WSJ
Americans living abroad are being cut off by banks and brokerages as financial institutions seek to steer clear of a U.S. crackdown on money laundering and tax evasion. The traditional challenges of expatriate life—adapting to a new culture, separation from family and friends—are being complicated by the tougher U.S. laws and more aggressive scrutiny of customer accounts.
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That Selfie Is So Good, It Could Help You Pay for College
By ANN CARRNS, New York Times
WHEN 18-year-old Kiana Neisig added up her expenses for college, she found herself short of funds, even after receiving grants and student loans. So in June, a friend set up a profile for her on a crowdfunding website to help her seek donations of roughly $2,000.
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