Bits and Pieces
By John J. Lothian
We are almost done posting the videos for our summer Intern Education Series from last summer. You can find them on education.marketswiki.com. Here are some of the most recent ones we have posted:
Google Enterprise has named Maven Wave the 2013 North America Innovation Partner of the Year
Happy 10th Anniversary, VIX Futures!
Sarah Rudolph – JLN
Today is the 10 year anniversary of the launch of VIX futures, traded at the CBOE Futures Exchange (CFE).
CFE has achieved tremendous success with these futures, based on its proprietary CBOE Volatility Index (VIX). It has also expanded into other volatility-based products, as volatility as an asset class has exploded in recent years. There are currently eight VIX-related contracts traded on the CFE.
But the CBOE still thinks of VIX futures as a relatively new product, with much more to come in the near future.
(Read the rest of the article on the JLN blog at jlne.ws/OXpOLT )
Man depressed by staffing cost fears
Bryce Elder – FT.com
A reminder that men cost more than machines left Man Group out of favour on Wednesday. The hedge fund manager dropped 3.8 per cent to 99.1p after Citigroup advised selling.
Exchange CEO Series – World View: Nasdaq OMX’s Bob Greifeld looks at regulation, tech resiliency and partners
Nasdaq OMX, like every exchange, is trying to navigate the new regulatory landscape. But Bob Greifeld, CEO of Nasdaq OMX, said there are more opportunities to be had, beyond the new rules.
John Lothian News sat down at the 2014 FIA Boca Conference with six exchange CEOs to talk about their views on four main topics: competition, regulation, growth and technology. Here’s what Greifeld, CEO of Nasdaq OMX, had to say about each.
Greifeld, like other exchange CEOs, believes that regulation is the key driver of competition and change in the financial industry, globally today.
“If you think about the evolving nature of the markets, you have to start first and foremost with the regulation,” he told Jim Kharouf, editor-in-chief of John Lothian News. “We are a creature of the regulatory environment.”
The Agile and the Dead
Alexander Tabb – TabbFORUM
In today’s often hyper-frenetic pursuit of alpha, while it is important to be quick, it is equally critical to be agile. Opportunity is more fleeting than ever, and the ability to find – and tap – new sources of liquidity is the new key to survival.
JLN/MarketsWiki 2014 Annual Survey – Please Give us 30 Seconds of Your Time
John Lothian News
You still have time to fill out our quick demographic survey and get in the running for your choice of an iPad Mini or a pair of Bose Quiet Comfort Noise-Canceling Headphones. The cost is a mere 30 seconds of your time. Answers will be kept confidential.
Swiss Financial Regulator Names Former UBS Officer as Chief Executive
CHAD BRAY – NYTimes.com
The Swiss Financial Market Supervisory Authority said on Wednesday that Mark Branson, a former UBS executive who is serving as the authority’s interim chief executive, had been appointed to fill the top post.
Advisors, Stop Posting Baby Pictures on Social Media
Becca Lipman – Wall Street & Technology
FTI Consulting found more than one-third of financial advisors now use social media for business purposes, and many financial service firms are ramping up efforts to give advisors more visibility in the space. This all leads to one very important question: What kind of social media presence and behaviors are important to investors?
MarketsWiki Page of the Day
CBOE Volatility Index Futures
MarketsWiki Recent Updates
Companies, Organizations and Groups
47,876,625 pages viewed, 7,873 articles, 181,058 edits
SEC Probes Threat From Cyber Attacks Against Wall Street
Dave Michaels and Chris Strohm – Bloomberg
The U.S. Securities and Exchange Commission is examining the exposure of stock exchanges, brokerages and other Wall Street firms to cyber-attacks that have been called a threat to financial stability.
China agrees to London renminbi clearing bank
Philip Stafford and Delphine Strauss – FT.com
The UK has stepped up its efforts to attract Chinese investment by agreeing with Beijing to the creation of a renminbi clearing bank in London. The Bank of England and the People’s Bank of China (PBoC) are to sign an agreement on renminbi clearing and settlement in the UK capital on Monday.
New U.S. swaps trading seen hurting banks less than feared
When U.S. regulators pushed trading in a profitable derivative on to newly created exchanges last month, many analysts feared the worst for banks’ first-quarter results.
S&P wants to split up $5 billion U.S. ratings lawsuit
Standard & Poor’s asked a federal judge to split up the U.S. government’s $5 billion civil fraud lawsuit accusing it of lying about its credit ratings, saying it would be unfair to have to defend against a case of such “unmanageable scope” all at once.
UBS suspends six more forex traders
Daniel Schäfer in London – FT.com
UBS has suspended six more foreign exchange traders across the globe, as the Swiss bank’s internal probe into alleged rigging of crucial currency benchmarks gains further traction. The bank suspended three traders in New York, two in Zurich and one in Singapore, two people close to the situation said.
Standard Chartered FX trader Gardiner resigns – source
A senior currency dealer at Standard Chartered, who was put on leave last year as regulators investigated allegations of global currency market rigging, has resigned from the bank, a source familiar with the matter said on Wednesday.
SEC inches closer to money market fund final rule
U.S. securities regulators are inching closer to completing new rules for money market funds, though no final decision on how to proceed has been made just yet, according to a person familiar with the matter.
O’Malia Outlines How CFTC Can Tackle its Data Difficulties
Nicholas Hamilton – WatersTechnology
Commodity Futures Trading Commission’s Scott O’Malia says regulator must improve swaps data quality, and develop automated surveillance and risk analytics tools
Consolidated Audit Trail Gets New Push
Michael Shashoua – WatersTechnology
Bidding to become the processor of consolidated audit trail has just closed, leading into a process of choices and approvals by the US Securities and Exchange Commission (SEC) and self-regulatory organizations likely to last into 2015 and beyond.
CFTC Opens Discussions on Standard Structure for Global UTI
Nicholas Hamilton – WatersTechnology
The US Commodity Futures Trading Commission has begun speaking to other regulators about the possibility of creating a standard structure for a global unique transaction identifier
CFTC no-action letter could end public utilities’ hedging woes
Gillian Carr – Risk.net
CFTC exempts ‘utility operations-related swaps’ from contributing towards $25 million special entity threshold under Dodd-Frank
OpRisk North America: Uncertainty remains over Fatca ‘day one’
Alexander Campbell – Risk.net
With just a few months to go until the US tax-evasion law comes into force, banks are still uncertain on how to handle compliance
Opening Statement At SEC Roundtable On Cybersecurity By SEC Chair Mary Jo White
ESMA Publishes Q&As On EuSEF And EuVECA Regulations
Canadian securities regulators propose pre-sale delivery of Fund Facts for mutual funds
New Zealand’s Financial Markets Authority: Investors Better Informed About Low Ball Offers
Exchanges & Trading Facilities
Rusal Wins Lawsuit on ‘Unfair and Unlawful’ LME Warehouse Rules
Kit Chellel – Bloomberg
United Co. Rusal won a legal challenge to the London Metal Exchange’s new warehousing rules as a U.K. judge said the decision to implement them was “unfair and unlawful.”
U.S. over-counter trading tightens reporting, other standards
OTC Markets, the operator of three U.S. over-the-counter equity markets, is rolling out tighter reporting standards and eligibility requirements for its venture-stage market to crack down on stock scams and bolster transparency, the company said on Wednesday.
London Stock Exchange Group Pre-Close Period Update For The Eleven Months Ended 28 February 2014
Total equity capital raised on the Group’s markets for 11 months to date increased 91 per cent to GBP28.3 billion (2013: GBP14.8 billion), with 162 new issues (2013: 107); issuance in Q4 has remained good with 17 new issues across UK and Italy in March and continuing good signs of issuance activity in the period ahead
5 New Firms Join MARF As Members And 3 As Registered Advisers
The World Exchange Congress 2014 Concluded Its Meetings In Doha
QCB Deputy Governor Emphasizes On The Role Of Regulatory Authorities To Develop The Financial Markets And Services Sector
ASX: Release Of Third Edition Of The Corporate Governance Principles And Recommendations
NYSE to Suspend Trading Immediately in Global Geophysical Services, Inc. and Commence Delisting Proceedings
Hedge Funds & Managed Futures
Senvest Hedge Fund Gains 79% With Bets on Comebacks
Jon Asmundsson – Bloomberg
Richard Mashaal and Brian Gonick have set an ambitious target for their Senvest Partners LP hedge fund: Stocks they buy should have the potential to double or triple in price over one to three years.
Firms tap into new investor sources
Alec Macfarlane – Financial News
The universe of private equity investors has changed dramatically in the past few years. So much so that previous dominant players in the area – such as banks, insurers and public pension schemes – are no longer the most significant investors in terms of the overall amount of capital they invest.
Cavanagh’s Isn’t The Only New Face at Carlyle
Amy Or – MoneyBeat – WSJ
Carlyle Group’s hiring of J.P. Morgan Chase & Co. heir-apparent Michael Cavanagh is the latest in a string of outside hires the firm has made as it has expanded from buyout shop to asset management powerhouse.
IMF hedges global bet with US fund tie-up
THE news that Australia’s largest litigation funder, Bentham IMF, has teamed up with one of the US’s most aggressive hedge funds to expand into Europe and take on even larger cases in the Asia Pacific ought to send a few shivers through boardrooms around the world.
Ken Griffin’s Mostly Happy Returns
Ex-Cinven partner Rebecca Gibson lands at Oakley Capital
Becky Pritchard – Financial News
London-based Oakley Capital, which owns Time Out magazine, has hired former Cinven partner and FN100 woman Rebecca Gibson.
Banks & Brokers
Citigroup Fails Fed’s Stress Test as BofA Gets Dividend Boost
Michael J. Moore and Elizabeth Dexheimer – Bloomberg
Citigroup Inc.’s capital plan was among five that failed Federal Reserve stress tests, while Bank of America Corp. won approval for its first dividend increase since the financial crisis.
Fed Stresses Over Foreign Banks
MoneyBeat – WSJ
The Federal Reserve began flexing its muscle as the de facto global financial regulator on Wednesday, rejecting the capital plans for the U.S. units of three foreign banks.
The quiet rise of Daniel Pinto
Matt Turner – Financial News
Type the words Daniel Pinto into Google this morning and you’ll find little on the new sole head of JP Morgan’s giant corporate and investment bank, but plenty on his former co-head, Mike Cavanagh.
Jain Haunted by Rainmaker Past at Deutsche Bank
Nicholas Comfort – Bloomberg
Anshu Jain won the job of Deutsche Bank AG co-chief executive officer after leading its investment bank to record profit. Two years later that rainmaker role is coming back to haunt him.
Lending by Euro-zone Banks to the Private Sector Falls Again in February
Lending by euro-zone banks to the private sector fell again in February, suggesting the recovery in the currency bloc will remain sluggish despite recent signs of an economic turnaround.
GH Financials Takes Interxion’s London Co-Lo
James Rundle – WatersTechnology
Futures commission merchant GH Financials will co-locate in datacenter provider Interxion’s City of London Campus.
RBS to resubmit U.S. capital plans after Fed objections
Royal Bank of Scotland said it would resubmit the capital plans for its U.S. business Citizens after it was one of three foreign banks who had plans rejected by the U.S. Federal Reserve.
Clearing & Settlement
CME Group Clearing: NYMEX Options Expiration Operational Procedures for the Trading Floor and Clearing Members (OB, OH, I, ON) Effective Wednesday, March 26, 2014
Indexes & Products
Launch Of The Solactive MLP Bond Index – First Index To Offer Exposure To Master Limited Partnerships Via Their Bonds
SWIFT Expands Compliance Services Portfolio With Omnicision Acquisition
Cooperative’s Customers Will Benefit From Additional Financial Crime Prevention Services And Faster Time To Market
New York Attorney General Eric T. Schneiderman announces Former CEO Kenneth Lewis Barred For 3 Years From Serving As Officer Or Director Of Any Public Company
$25 Million Settlement With Bank Of America And Former CEO Kenneth Lewis For Allegedly Concealing And Misrepresenting Material Financial Forecasts While Seeking A Merger With Merrill Lynch In 2008 – Bank Of America Also Agrees To Corporate Governance Reforms – Attorney General Will Continue To Pursue Its Claims Of Fraud Against Bank’s Former Chief Financial Officer Joe L. Price
Bank of America to Pay $6.3 Billion to Settle Mortgage Securities Suit
MATTHEW GOLDSTEIN – NYTimes.com
Bank of America is paying $6.3 billion to settle a lawsuit arising out of troubled mortgage-backed securities it cobbled together and sold to Fannie Mae and Freddie Mac in the run-up to the financial crisis.
Environmental & Energy
World’s Largest Investors Launch Effort to Engage Global Stock Exchanges on Sustainability Reporting Standard for Companies
Peyton Fleming – Ceres
Sustainability advocacy group Ceres, in collaboration with BlackRock and other major institutional investors, today announced an initiative to engage global stock exchanges via the World Federation of Exchanges (WFE) on a possible uniform reporting standard for sustainability reporting by all exchange members.
Germany’s $2.8 Billion Power Link With Norway Threatened
Brian Parkin and Stefan Nicola – Bloomberg
Talks between Germany and Norway about how to boost the trading of electricity from renewable sources are being held up by concerns that the power cable running under the North Sea won’t ever make money.
China’s smog-hit Hebei cuts loans to polluters -report
Banks in China’s smog-hit Hebei province last year turned down loan applications worth 12.3 billion yuan ($2.0 billion) in order to comply with new “green credit” policies designed to cut funding to polluting industries.
Banks battle for share of burgeoning Asia repo market
Viren Vaghela – Risk.net
Basel III is changing the shape of the global repo markets but in Asia banks are sensing an opportunity. Why are Asia’s markets such an attractive proposition for repo?
An advertisement for deposit insurance in China
David Keohane | FT Alphaville
One way to avoid a bank run… That’s apparently a bank in China’s eastern city of Yancheng putting its renminbi blocks in the window in an attempt to “calm depositors queueing at bank branches for a third consecutive day following rumours they had run out of cash.”
Japan buyers rush to snap up gold as tax rise looms
Ben McLannahan in Tokyo – FT.com
Japan’s imminent tax increase is hastening a rush for gold ingots as investors seek short-term profits in a market buoyed by rising inflation.
Japan’s Financial Services Agency Publishes An English Translation Of Comprehensive Guidelines For Supervision Of Financial Market Infrastructures
HKEx: Forfeiture Of Unclaimed Final Dividend For 2007
Turkey rebound relies on Erdogan poll win
Delphine Strauss – FT.com
Turkey’s ban on Twitter has taken international opinion of its authoritarian prime minister to a new low on the eve of a vote that could determine his political future. But despite the country’s febrile politics, slowing economy and continued uncertainty over the outlook for emerging markets, foreign investors who have shunned Turkey for much of the last year may be ready to venture back.
Kulczyk looks to Africa for new frontier in transformation
Jan Cienski in Warsaw – FT.com
Poland is forecast to have one of the EU’s strongest economic recoveries but growth of 2.9 per cent this year and 3.1 per cent in 2015 is not enough to excite Jan Kulczyk, the country’s wealthiest businessman.
Bursa Malaysia Securities Publicly Reprimands Eonmetall Group Berhad For Breach Of Main Market Listing Requirements
The Egyptian Exchange (EGX) Monthly Statistical Report February 2014
Fisher Investments Opens Branch Office In Dubai
Crowdfunding Site CircleUp Raises $14 Million
WILLIAM ALDEN – NYTimes.com
CircleUp, a crowdfunding website, has allowed a number of fledgling companies to raise money over the last two years. Now, CircleUp has attracted some additional money of its own.