John Lothian Newsletter: NYSE Plan Would Revamp Trading; Dark Pools in Spotlight as Europe Moves to Fortify Market; BGC Boosts Takeover Offer 3.8% for Interdealer Broker GFI

Dec 18, 2014

First Read

SEFCON Snapshot 2014, Part II: Cross-Border Issues
JohnLothianNews.com

The WMBA Americas hosted SEFCON V on November 12, 2014, and John Lothian News was there. We interviewed 14 SEF operators, regulators and participants and put together this three part series on the state of SEFs one year into the mandate.

Part II looks at the differences between U.S. SEF rules and those of other jurisdictions. The conference featured a panel on cross-border issues, moderated by ISDA CEO and former CFTC Commissioner Scott O’Malia, and also a keynote address by current CFTC Chairman Tim Massad.

Watch the video »

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Obama pardons 2 Illinoisans, including former Merc member
By Katherine Skiba, Chicago Tribune
President Barack Obama granted pardons Wednesday to two Illinoisans, one a former Chicago Mercantile Exchange member convicted of wire fraud for pocketing large sums of money while buying and selling futures contracts in the Japanese yen pit more than 20 years ago. Brian Edward Sledz, of Naperville, was ordered April 29, 1993, to serve one year on probation after becoming a key government witness in the case against other traders.
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**** A blast from the past, the FBI investigation of the markets in the 1980s.

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The Road Ahead: Donohue Leads OCC In a New and Pricier Era
Sarah Rudolph – John Lothian News
After 40 years as a relatively quiet clearing utility, the OCC has recently been shaken up. In just the past couple of years, the organization has seen dramatic changes in its leadership, staff, board and structure as it responds to new, more demanding regulatory requirements and a changing environment.
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***DA: In case you missed it, here is a link to Sarah’s piece on the changes and outlook at OCC, published yesterday.

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Financial market manipulation is the new trend: Can it continue?
By Paul Craig Roberts, Pravda
A dangerous new trend is the successful manipulation of the financial markets by the Federal Reserve, other central banks, private banks, and the US Treasury. The Federal Reserve reduced real interest rates on US government debt obligations first to zero and then pushed real interest rates into negative territory. Today the government charges you for the privilege of purchasing its bonds.
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***** Former U.S. Treasury official writing in Pravda.

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Speculation in financial markets not a crime, Putin says
RT
Currency speculation can’t be considered a crime, as market speculators just create a favorable situation for themselves, but don’t steal, Russia’s President Putin has said.
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***** At least we have that straight now, in Russia at least.

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CME Group Announces Change to Daily Price Limits in CME Feeder Cattle and Live Cattle Futures
CME Group
CME Group, the world’s leading and most diverse derivatives marketplace, today announced it will change daily price limits in its CME Feeder Cattle futures effective Thursday, December 18, pursuant to its emergency action authority. The current daily price limit for CME Feeder Cattle futures is $3.00 per hundredweight and will change to $4.50 per hundredweight effective on trade date December 18. Additionally, effective December 19, these limits will have the ability to expand by 150 percent to $6.75 per hundredweight on any business day in the event that one of the first two contract months settles at limit on the previous trading day.
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***** Skinny Cattle and Fat Cattle markets get wider berth.

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Wall Street Names Janet Yellen “Person of the Year” and Issues Bullish Forecast for 2015
CNBC
With less than one year in office, U.S. Federal Reserve Chair Janet Yellen, received the most votes as the person who, for better or worse, had the greatest impact on global capital markets in 2014. Thirty-one percent (31%) of respondents of the ConvergEx survey named Yellen “Person of the Year”, followed closely by Russian president Vladimir Putin (24%). Flash Boys author Michael Lewis and IEX President and CEO Brad Katsuyama (11%), offered as a combined choice, finished third. Alibaba founder Jack Ma finished in fourth place with eight percent (8%) after bringing to market the largest IPO in history.
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***** For once, something that is not an FOW award.

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You Know It’s Bad in Russia When They Start Hoarding the Buckwheat
By Ksenia Galouchko and Vladimir Kuznetsov, Bloomberg
In a tell-tale sign that the plunge in the ruble is causing panic among Russians, the talk in a downtown Moscow nail salon this week was about stockpiling buckwheat.
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***** I wonder if they are hoarding Alfalfa as well.

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Wheat Climbs to Highest in Almost Seven Months on Russia Concern
By Rudy Ruitenberg, Bloomberg
Wheat rose to the highest since at least May in Chicago and Paris on concern supplies from Russia will be restricted amid moves by the government to slow shipments.
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***** Wheat is the universal currency of war.

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Ray Cahnman, chairman, Transmarket Group – Me, Us & You: How Trading Works
JohnLothianNews.com

“Opportunities today are even greater. Competition, however…is brutal. “

Ray Cahnman, chairman of Transmarket Group, begins his presentation with a list of books, movies and news stories he recommends that give a glimpse into the financial industry. He then discusses how he entered the financial industry and how the opportunities and challenges facing the industry have evolved. Cahnman remembers how trading used to be about the individual trader and how no one wanted to divulge their secrets to success. Today, trading has turned into a team effort, especially with the role technology is playing. Cahnman says that the trading ecosystem now involves programmers and coders as well as traders. However, while there is an influx in new opportunities in the industry, one still needs to stay persistent and embrace competition in order to strive.
Watch the video »
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MarketsWiki

MarketsWiki Page of the Day
Janet Yellen

MarketsWiki Recent Updates

People

Scott Fitzpatrick; C. Mead Welles; Carl Levin; Janet Yellen; Stephen A. Brodsky; Ethan Kahn; Julie Winkler; Lee B. Stern; Matthew Scharpf

Companies, Organizations and Groups

Tradition; ULLINK; IntercontinentalExchange; BGC Partners

Statistics

56,284,167 pages viewed, 8,116 articles, 187,637 edits
MarketsWiki Statistics

Lead Stories

NYSE Plan Would Revamp Trading; Acting on New CEO’s Critique of Markets, Exchange Operator Offers to Cut Costs to Draw Orders
By Bradley Hope And Scott Patterson, WSJ
The owner of the New York Stock Exchange is pushing a major overhaul of the U.S. stock market aimed at helping exchanges reclaim their role at the center of trading. Intercontinental Exchange Inc. is proposing a compromise between exchanges and Wall Street banks that trade on behalf of large investors. Exchanges would cut banks’ trading costs by more than 80% if they agreed to a rule that would move more trading away from their so-called dark pools and other off-exchange venues, according to a draft letter being circulated to large banks and investment firms by ICE Chairman and Chief Executive Jeffrey Sprecher.
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Dark Pools in Spotlight as Europe Moves to Fortify Market
By Jim Brunsden and John Detrixhe, Bloomberg
If you play poker with all your cards showing, you can’t bluff. Traders accustomed to operating in Europe’s dark pools, where buy and sell orders are hidden, say a transparency drive by regulators may similarly deprive them of the secrecy they need to shield their trades from competitors. That could drain the liquidity, and the life, from some of the region’s biggest markets, they say.
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NYSE Proposes Market Overhaul in Bargain With Dark Pools
By Sam Mamudi, Bloomberg
The New York Stock Exchange is working to marshal Wall Street support for a plan that would overhaul features of the U.S. stock market that have drawn criticism from investors in the past year.
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BGC Boosts Takeover Offer 3.8% for Interdealer Broker GFI
Bloomberg
Howard Lutnick’s BGC Partners Inc. increased its takeover offer for rival interdealer broker GFI Group Inc. by 3.8 percent. BGC sent a letter on Dec. 11 to GFI bidding $5.45 a share, 20 cents more the previous proposal, New York-based GFI said today in a regulatory filing. Its board of directors and a special committee are reviewing BGC’s offer. Bob Rendine, a spokesman for BGC at Sard Verbinnen & Co., declined to comment.
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SEC Names Deputy Directors in the Division of Trading and Markets
SEC
The Securities and Exchange Commission today announced that Gary Barnett and Gary Goldsholle have been named as deputy directors in the Division of Trading and Markets.
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CME Group Announces the Launch of a Suite of European Natural Gas Contracts on CME Europe
CME Group
CME Group, the world’s leading and most diverse derivatives market place, announced today the launch of the first suite of physically and financially settled European natural gas cleared futures contracts. The contracts will be listed on CME Group’s European exchange, CME Europe for first trade date on 19 January, 2015 and are authorised and approved by the United Kingdom (UK) Financial Conduct Authority.
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Swiss central bank moves to negative deposit rate
James Shotter in Zürich, FT
Switzerland’s central bank has introduced a negative interest rate on deposit accounts in a dramatic move aimed at easing the pressure on the Swiss franc.
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Cargill welcomes White House’s historic opening to Cuba; Easing of embargo will create new opportunities for U.S. agriculture and enhance Cuba’s food security
Cargill
Cargill executives today expressed support for the White House’s plan to normalize relations between the United States and Cuba.
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HFT accounts for over 40% of EU equity trading
By Anna Irrera, Financial News
High-frequency trading accounts for as much as 43% of value traded on European equity markets, with activity from investment banks making up more than a fifth of that total, according to a new economic report from Europe’s top securities watchdog.
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Wells Fargo Rides Retail Deposits to Become Most-Valuable Bank
By Yalman Onaran, Bloomberg
Behind Wells Fargo & Co. (WFC)’s ascent to the world’s most valuable bank lies a cheap and reliable source of funds favored by regulators and less popular with its largest rivals: retail bank deposits.
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Richard Desmond wins ‘£10m’ from City giants over derivatives deal
Gideon Spanier, The Independent
Richard Desmond has underlined his reputation as a formidable litigant by winning a multi-million pound settlement from City giants Credit Suisse and GLG in a £42m court case over what he claimed was an “incomprehensible” financial investment.
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BofA Whistleblower to Get Nearly $58 Million–Filing; U.S. Attorney’s Office Used O’Donnell’s Allegations as Basis of Its Lawsuit
By Christina Rexrode, WSJ
Edward O’Donnell, the former Countrywide Financial Corp. executive who filed a whistleblower lawsuit against his former firm, will collect nearly $58 million for a separate lawsuit against Bank of America Corp
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EU toughens up research fee rules
Philip Stafford, Kate Burgess and Sam Fleming, FT
EU regulators on Wednesday agreed tougher rules on the way broker research is paid for, in an attempt to tackle conflicts of interest and a lack of transparency in the investment industry.
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Regulatory

Banks Won’t Stop EU Push on Prop-Trading, Firewall Rules
Businessweek
The European Union’s new financial-services chief, Jonathan Hill, said he’ll press on with plans criticized by the financial industry on curbing some proprietary trading and erecting firewalls between consumer and investment banks. Hill, who became EU commissioner for financial services and stability on Nov. 1, said the bloc’s existing regulations don’t go far enough to tame the threat posed by the collapse of a systemic lender.
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Gippsland Secured Investments auditor deregistered
ASIC
ASIC has cancelled the registration of the auditor of Gippsland Secured Investments (GSI) following a deficient audit of the since collapsed debenture issuer.
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Insider trading case in jeopardy after landmark decision
By Michelle Celarier, NY Post
Another Securities and Exchange Commission insider-trading case is on the rocks. Wells Fargo trader Joe Ruggieri, who was charged with insider trading in September, received permission on Wednesday from an SEC judge to have his case dismissed.
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The regulators’ dilemma: when to intervene amid rapid technological change?
Andrew McAfee, FT
Is it worse when regulators and legislators take action in the face of technological progress, or when they sit idle? The events of the past few days show that this is a tough question.
The case against action comes from Spain, where a law was passed mandating that publishers charge internet news aggregators who reprint headlines or small snippets of text when linking to publishers’ stories. Yes, “mandating.” Not “allowing” or “giving the option to.” Once the law takes effect early next year, a Spanish publisher will no longer be able to let aggregators like Google News show bits of their content for free.
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Self-Regulatory Organization (SRO) Rulemaking and National Market System (NMS) Plans
SEC
BATS: Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use of BATS Exchange, Inc. (Release No. 34-73845; File No. SR-BATS-2014-066; December 16, 2014); see also Exhibit 5
CME: Notice of Filing and Immediate Effectiveness of Proposed Rule Change Related to Enhancements to its Risk Model for Credit Default Swaps (Release No. 34-73849; File No. SR-CME-2014-51; December 16, 2014)
DTC: Notice of Filing and Immediate Effectiveness of Proposed Rule Change in Connection with the Amendment of the Existing Dividends Service Guide (Release No. 34-73864; File No. SR-DTC-2014-12); see also Exhibit 5
FINRA: Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to In Concert Reporting of Options Positions (Release No. 34-73863; File No. SR-FINRA-2014-051)
ISE: Order Granting Approval of Proposed Rule Change, as Modified by Amendment No. 1 Thereto, Relating to a Corporate Transaction Involving Its Indirect Parent (Release No. 34-73860; File No. SR-ISE-2014-44)
ISE Gemini: Order Granting Approval of Proposed Rule Change, as Modified by Amendment No. 1 Thereto, Relating to a Corporate Transaction Involving Its Indirect Parent (Release No. 34-73861; File No. SR-ISEGemini-2014-24)
MIAX: Notice of Filing and Immediate Effectiveness of a Proposed Rule Change by Miami International Securities Exchange LLC to Amend Its Fee Schedule (Release No. 34-73850; File No. SR-MIAX-2014-63; December 16, 2014); see also Exhibit 5
MIAX: Notice of Filing and Immediate Effectiveness of a Proposed Rule Change by Miami International Securities Exchange LLC to Amend the MIAX Options Fee Schedule (Release No. 34-73848; File No. SR-MIAX-2014-62; December 16, 2014); see also Exhibit 5
MIAX: Notice of Filing and Immediate Effectiveness of a Proposed Rule Change by Miami International Securities Exchange LLC to Amend Exchange Rules 307 and 309 to Extend the SPY Pilot Program (Release No. 34-73846; File No. SR-MIAX-2014-64; December 16, 2014); see also Exhibit 5
NASDAQ: Notice of Designation of a Longer Period for Commission Action on Proceedings to Determine Whether to Approve or Disapprove a Proposed Rule Change to Adopt New Rule 5713 and List Paired Class Shares Issued by AccuShares Commodities Trust I (Release No. 34-73843; File No. SR-NASDAQ-2014-065; December 16, 2014)
NYSE Arca: Order Approving a Proposed Rule Change, as Modified by Amendment No. 2 Thereto, to List and Trade Shares of the Sit Rising Rate Fund under NYSE Arca Equities Rule 8.200 (Release No. 34-73866; File No. SR-NYSEArca-2014-120)
NYSE Arca: Order Approving a Proposed Rule Change Amending Exchange Rule 6.60 to Enhance the Functionality of the Trade Collar Protection Mechanism (Release No. 34-73859; File No. SR-NYSEArca-2014-14)
NYSE Arca: Notice of Filing of Proposed Rule Change Relating to Shares of the iShares California AMT-Free Muni Bond ETF and iShares New York AMT-Free Muni Bond ETF (Release No. 34-73857; File No. SR-NYSEArca-2014-139)
NYSEMKT: Order Approving a Proposed Rule Change Amending Exchange Rule 967NY to Enhance the Functionality of the Trade Collar Protection Mechanism (Release No. 34-73858; File No. SR-NYSEMKT-2014-14)
NYSEMKT: Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Commentary .07 to Rule 904 to Extend the Pilot Program that Eliminated the Position Limits for Options on SPDR S&P 500 ETF (Release No. 34-73847; File No. SR-NYSEMKT-2014-106; December 16, 2014); see also Exhibit 5
OCC: Notice of Filing of a Proposed Rule Change, and Amendment No. 1 Thereto, to Establish Procedures Regarding the Monthly Resizing of its Clearing Fund and the Addition of Financial Resources (Release No. 34-73853; File No. SR-OCC-2014-22; December 16, 2014)
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Speeches and Public Statements
SEC
Opening Remarks at Meeting of SEC Advisory Committee on Small and Emerging Companies by Chair Mary Jo White, Washington, D.C.
Revisiting the “Accredited Investor” Definition to Better Protect Investors by Commissioner Luis A. Aguilar, Washington, D.C.
Opening Remarks to the December 2014 Meeting of the SEC Advisory Committee on Small and Emerging Companies by Commissioner Daniel M. Gallagher, Washington, D.C.
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Final Rule: Temporary Rule Regarding Principal Trades With Certain Advisory Clients (Release No. IA-3984; File No. S7-23-07)
SEC
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Exchanges & Trading Facilities

New Record Day in Euronext Milling Wheat Commodities
Business Wire
Euronext announced that on 16 December its commodities franchise achieved a second lifetime record daily volumes in the same month in milling wheat futures with 92,531 contracts traded. Milling wheat futures volume represented over 4.6 million tons on 16 December 2014. The previous record was set on 2 December 2014 with 88,194 contracts or 4.4 million tons traded.
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New York Stock Exchange Announces Fourth Consecutive Year of IPO Leadership in Global Capital Raising; Technology IPO Leader
ICE
The New York Stock Exchange, part of the Intercontinental Exchange (NYSE: ICE) global network of exchanges, announced today that NYSE Group raised $182 billion in 545 transactions in 2014, more than any other exchange in the world. Listing eight of the 10 largest 2014 U.S. initial public offerings (IPOs), NYSE Group led in capital raised from IPOs for the fourth consecutive year and once again led in technology IPOs.
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ICE Futures Europe Sets Daily Volume Records in Brent Crude Options, Low Sulphur Gasoil Futures and Coal Options
ICE
Intercontinental Exchange (NYSE: ICE), the leading global network of exchanges and clearing houses, announced that several daily volume records were set in energy including Brent Crude options, Low Sulphur Gasoil futures and coal options on December 16, 2014:
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London Stock Exchange plc pre-close trading update
London Stock Exchange
Unless otherwise stated, the following commentary refers to non-financial KPIs for the eleven months ended 30 November 2014 and, where appropriate, to the corresponding period last year.
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MMC Norilsk Nickel: Extraordinary dividend
Eurex
On 11 December 2014, the extraordinary general meeting of the company MMC Norilsk Nickel decided to pay a dividend of RUB 762.34 per ordinary share.
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CME Group Advisories
Increased Daily Price Limits for Feeder Cattle Futures and Expansion Capability of Daily Price Limits for Feeder Cattle Futures and Live Cattle Futures 17 Dec 2014
Performance Bond Requirements: Agriculture Outrights; Agriculture Intra-Commodity Spread Charges; Agriculture Inter-Commodity Spread Credits- Effective Wednesday, December 17, 2014 17 Dec 2014
Revisions to CME Rule 807 (Open Long Positions During Delivery Month) effective January 2, 2015 – Wash Trades Prohibited
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CBOE Representative Director Nominees
CBOE
Under CBOE’s Bylaws, 20% of the CBOE Board shall be designated as “Representative Directors,” which CBOE’s Board has determined shall be Non-Industry directors.
The Representative Directors will be elected at the 2015 CBOE annual meeting in May 2015, and will serve for a one-year term. The Trading Permit Holders Subcommittee of the CBOE Advisory Board has determined to nominate the following three persons as the “Representative Directors” for CBOE:
Eugene S. Sunshine
Samuel K. Skinner
James R. Boris
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Session on December 19, 2014 Regarding Tied to Stock Order Marking and Reporting Requirements
CBOE
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Trading Permit Sliding Scale Programs
CBOE
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Hedge Funds & Managed Futures

Oil jumps three percent to $63 as energy firms slash investments
By David Sheppard, Reuters
Brent crude jumped 3 percent to above $63 a barrel on Thursday, extending a rebound from five-year lows this week as oil’s six-month price rout forced more energy firms to cut investments in new production.
jlne.ws/1xsdGGX

Bankers See $1 Trillion of Investments Stranded in the Oil Fields
By Tom Randall, Bloomberg
There are zombies in the oil fields. After crude prices dropped 49 percent in six months, oil projects planned for next year are the undead — still standing upright, but with little hope of a productive future. These zombie projects proliferate in expensive Arctic oil, deepwater-drilling regions and tar sands from Canada to Venezuela.
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‘The Colbert Report’ leaves us 5 important investing rules to live by
By Victor Reklaitis, Marketwatch
The final episode of “The Colbert Report” will air this Thursday, ending a nine-year run for the satirical late-night talk show.
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Google just toppled Russia, and it’s got Apple-like returns in its sights
MarketWatch
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Uranium Rallies as Asia Warms to Nuclear Energy; Uranium Prices Have Jumped 35% Since May
by Biman Mukherji, WSJ
HONG KONG—Uranium prices are defying the broad commodities selloff that has battered oil and gas as Asia’s biggest economies increase their reliance on nuclear energy and move away from coal-fired plants.
jlne.ws/1Ai9zwF

Banks & Brokers

Barclays’ Antony Jenkins calls end of universal banking
Martin Arnold, FT
“The universal banking model is dead,” says Antony Jenkins, Barclays’ chief executive — and not only because of tougher regulation and capital requirements.
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Barclays Keeps Burning Shareholders as Analysts Push Stock
By Stephen Morris, Bloomberg
Two years into the job, Barclays Plc (BARC) Chief Executive Officer Antony Jenkins has won over analysts with pledges to cut costs and eliminate thousands of investment banking jobs. He’s yet to convince investors.
jlne.ws/1J8bzvr

Clearing & Settlement

EU Seeks U.S Swaps Rule Deal Before Bank Capital Deadline
Bloomberg
The European Union’s financial-services chief said he’ll push for a deal with the U.S. on rules for swaps clearinghouses by a June 2015 deadline. Jonathan Hill said in an interview in Brussels that he sees “encouraging” signs that the impasse, which has implications for EU-based banks’ capital requirements, can be brought to an end.
jlne.ws/1sDf8PX

Clearstream Appoints Standard Chartered Bank To Service Middle Eastern Currencies
MondoVisione
Clearstream has confirmed the appointment of Standard Chartered Bank as Cash Correspondent Bank (CCB) for Middle Eastern currencies. The bank will start to service transactions for Clearstream in Emirati Dirham, Bahraini Dinar and Omani Rial in the second quarter of 2015. This appointment of Standard Chartered Bank enables Clearstream to expand the range of its eligible settlement currencies to the Omani Rial.
jlne.ws/1Augj8S

CFTC Approves LCH.Clearnet Ltd’s Amended Order of Registration as a Derivatives Clearing Organization
CFTC
The U.S. Commodity Futures Trading Commission (Commission) approved an amendment to and consolidation of LCH.Clearnet Ltd’s (LCH) orders of registration as a derivatives clearing organization (DCO). The amendment permits LCH to provide clearing services for “swaps,” as defined in the Commodity Exchange Act (CEA) and Commission regulations, as well as all futures and options on futures, regardless of the underlying asset class.
jlne.ws/1x20HMA

Indexes & Products

STOXX Licenses STOXX Global 1800 Travel & Leisure Index To Daiwa Securities
MondoVisione
STOXX Limited, a leading provider of innovative, tradable and global index concepts, has licensed the STOXX Global 1800 Travel & Leisure Index to Japan’s Daiwa Asset Management Co. Ltd. for an active, non-listed mutual fund. Daiwa licensed the USD gross return version of the index.
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Technology

EBS selects Delta Stream for Data Analytics as a Service
Automated Trader
First Derivatives (AIM: FDP.L, ESM: FDP.I), a leading provider of software and consulting services to the capital markets industry, today announces that its Delta Stream product has been selected by EBS, ICAP’s market leading electronic FX business, as part of a new Data Analytics as a Service initiative. The solution will build on EBS’s ability to maximise execution rates at best prices and demonstrate that capability to existing and potential new clients. It is provided under an initial three year managed service contract.
jlne.ws/1zzsh2L

High Frequency Trading or High Frequency Technology
Automated Trader
Fuelled by technological and regulatory developments, the markets are evolving rapidly. The majority of the market is already automated today, and recent legislation in Europe is encouraging further automation across the markets to ensure trading transparency and accountability. Similarly, there’s no single type of ‘high frequency trader’: trades at high speeds occur across many types of participants, not just principal traders. Automation in the markets will continue to grow, and use of high speed technology will spread until in a few years’ time, the whole conversation will be entirely irrelevant, as the majority of the market will trade at the same ‘high speeds’.
jlne.ws/1z4fLJE

Enforcement

SEC Charges Avon With FCPA Violations; Avon Entities to Pay $135 Million to Settle SEC and Criminal Cases
SEC
The Securities and Exchange Commission today charged global beauty products company Avon Products Inc. with violating the Foreign Corrupt Practices Act (FCPA) by failing to put controls in place to detect and prevent payments and gifts to Chinese government officials from employees and consultants at a subsidiary.
jlne.ws/1C4rxlz

SEC Imposes Sanctions Against Hong Kong-Based Firm and Two Accountants for Audit Failures
SEC
The Securities and Exchange Commission today imposed sanctions against a Hong Kong-based audit firm and two accountants for failing to properly audit year-end financial statements of a company that the SEC has charged with fraud.
jlne.ws/1z7JzVU

CEO And Managing Director Of U.S. Broker-Dealer Plead Guilty To Massive International Bribery Scheme – Senior Venezuelan Banking Official Received At Least $5 Million In Bribes In Exchange For Directing Business To U.S. Defendants
MondoVisione
The former chief executive officer and former managing director of a U.S. broker-dealer (the Broker-Dealer), pleaded guilty to bribery charges arising from their scheme to pay bribes to Maria De Los Angeles Gonzalez De Hernandez, who was a senior official in Venezuela’s state economic development bank, Banco de Desarrollo Económico y Social de Venezuela (Bandes), in return for trading business that generated more than $60 million in commissions.
jlne.ws/1sDeyBK

Environmental & Energy

Green bonds sale triples to $35 billion worldwide in 2014 as finance bids to help climate
By ECONOMICTIMES.COM
A “green” bond market has taken root this year, with municipalities and corporations issuing new environmentally-focused bonds and money managers jumping in to buy them.
jlne.ws/1r2AISo

Cross listing of EEX and Cleartrade Exchange (CLTX) products EEX offers clearing for Fertilizer Futures from January 2015
EEX
On 6 January 2015 EEX extends its product range by additional commodities. In addition to the existing products for power, natural gas, emission allowances and coal, EEX will launch Fertilizer Futures contracts as part of its trade registration service. The launch will come along with the introduction of Dry Bulk Freight Futures which can be registered on the exchange for clearing through European Commodity Clearing (ECC) as of the same date.
jlne.ws/1C2CBm8

Front Yards Turn to Wetlands in Virginia as Climate Change Takes Toll
By Heather Perlberg, Bloomberg
Climate change is beginning to take a toll on real estate in Norfolk, about 80 miles… Read More
Amanda Armstrong schedules her life around the tides. For the past year and a half, she’s had to navigate rising waters that saturate the lawn of her red brick house in Norfolk, Virginia, and sometimes fill a puddle out front with crabs and fish.
jlne.ws/1r2FO0W

Asia-Pacific

Ex-TPG Japan Head Tsusaka Starts Alternative-Investment Firm
By Shigeru Sato and Komaki Ito, Bloomberg
Jun Tsusaka, TPG Capital’s former Japan head, started his own alternative-investment firm this month to target small companies with the potential to help revitalize the world’s third-largest economy.
jlne.ws/1w26jiX

China reopens to Syngenta corn strain
Gregory Meyer in New York, FT
China has approved imports of biotech corn developed by Syngenta, a senior US official said on Wednesday, after blocking the variety last year at a cost of hundreds of millions of dollars to trading houses.
jlne.ws/1wORKD6

US Congress raises heat on World Bank over China fears
Shawn Donnan, World Trade Editorm, FT
The US Congress is putting pressure on the World Bank to preserve its social and environmental rules for projects in developing countries amid fears that the emergence of rivals backed by China may force it to weaken standards.
jlne.ws/1wlovsP

Frontier Markets

NCDEX, NBHC unite to offer warehousing, value-added services
Business Line
The National Commodity & Derivatives Exchange Limited (NCDEX) and the NBHC, (National Bulk Handling Corporation) have joined hands to offer warehousing and value added services pan India.
jlne.ws/1DQi2eA

Don’t ban upfront commission, AMCs ask Sebi
Business Standard
At meeting convened by Sebi for suggestions to curb unreasonably high payments and mis-selling, suggest a cap on payouts
Asset management companies (AMCs) have requested the market regulator not to abolish the upfront commissions they pay to distributors. At a meeting on Tuesday between top fund officials and the Securities and Exchange Board of India (Sebi), they instead proposed a cap on the payouts, to quell concern over high commissions and mis-selling. The meeting was attended by about 15 chief executive officers (CEOs) of AMCs.
jlne.ws/1J8ivss

Miscellaneous

The future of money – where is cryptocurrency heading?
Cinnober
Cinnober has conducted an exclusive in-depth interview with Patrick L Young, CEO and founder of Exchange Invest, about some of the hot topics in the financial industry.
jlne.ws/13fyVOF

John Lothian Newsletter

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“John Lothian and Company… our industry intelligence.”

Rick Lane

CEO, Trading Technologies

Past JLN Newsletters

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