First Read

JLN Exchange CEO Series, coming soon
The JLN team in Boca last week got great interviews with some heavy hitters in the financial industry. The first video in the series is nearing completion; while you wait, to see who we heard from, take a look at JLN’s series teaser video at jlne.ws/1fXpKan

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High-Speed Trading Said to Face N.Y. Probe Into Fairness
Keri Geiger and Sam Mamudi – Bloomberg
New York’s top law enforcer has opened a broad investigation into whether U.S. stock exchanges and alternative venues provide high-frequency traders with improper advantages, a person with direct knowledge of the matter said.
jlne.ws/1lKStyP

***DA: Ask 100 people “what’s fair?” and you will get 120 different answers.

***JJL: This is a serious look at HFT with the Martin Act of New York hanging in the background for any misbehavior.

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CME Group To Launch North American Physically Delivered Aluminum Futures
CME Group, the world’s leading and most diverse derivatives marketplace, announced today it will launch North American physically delivered Aluminum futures contracts to begin trading on May 5, 2014, pending all regulatory approvals.
jlne.ws/1lKSra7

***DA: How about a cylinder of aluminum with 12 ounces of beer inside, physically delivered by a bartender?

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Deutsche Börse launches notification feed to alert users of upcoming economic releases
Deutsche Börse – Market Data + Services today announced the launch of AlphaFlash Risk Signal, a notification system that informs users of upcoming economic releases and then alerts them the moment the economic indicator is released.
jlne.ws/1lKStyy

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Loose Talk Costs Money
Larry Tabb – TabbFORUM
While talk may be cheap, chat certainly isn’t. Multiparty chat rooms have cost large banks billions of dollars. The chat compliance challenge has become so great that it is now threatening the way that banks communicate, both internally and externally.
jlne.ws/1lKSrqx

***DA: To paraphrase the NRA, chat rooms don’t manipulate benchmarks or conspire against customer orders, people manipulate benchmarks and conspire against customer orders. THAT is what needed to be stopped.

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Ratings Agencies Told Investors What They Wanted to Hear
Matt Levine – Bloomberg View
A popular narrative of the ratings agencies’ role in the financial crisis goes something like: banks paid ratings agencies a lot of money to rate mortgage-backed securities; so the ratings agencies gave a lot of those securities undeserved AAA ratings; so a lot of investors were deceived into thinking those securities were safe; so the investors bought a lot of those securities and eventually blew up.
jlne.ws/1lKStyK

***DA: Is there a ratings grade called “Caveat Emptor?” There should be.For more on the subject, check out Jim Kharouf’s commentary from last week

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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.
jlne.ws/1bOrYYC

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Dickey to Direct OPRA
Max Bowie – WatersTechnology
Market data industry veteran Steve Dickey has been appointed director of the Options Price Reporting Authority, which manages the OPRA consolidated feed of US exchange-traded options quote and trade data.
jlne.ws/1lKSu5I

***** JJL: Whoever thought Steve Dickey would do Opera. Oh, OPRA. Sorry. Congrats Steve!

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Taking Aim at an Anonymous Blogger
NYTimes.com
David Einhorn’s case against the website Seeking Alpha could affect the future of business journalism.
jlne.ws/1lKSrqF

***** JJL: I am just too darn big to be anonymous.

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El-Erian starts tweeting, but won’t talk about Gross
Reuters
Mohamed El-Erian, the former chief executive of Pimco, has taken to Twitter to express his views to the world, but he said on Monday he wants to steer clear of the drama surrounding his falling out with co-founder Bill Gross for now.
jlne.ws/1lKSrH0

***DA: Airing his views on Twitter. How Kardashian of him.

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Tide is turning in favour of commodities
Jamie Chisholm – FT.com
The resources team at Barclays think “the tide may at last be starting to turn for commodity investment flows”. Total commodity assets under management (AUM) rose by $13bn in February, they note, the first AUM growth since last August.
jlne.ws/1lKSrH3

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MarketsWiki

MarketsWiki Page of the Day
James H. Freis, Jr.
jlne.ws/1fRVVqK

MarketsWiki Recent Updates

People

Thomas Leaver; Suzanne Cosgrove; Peter F. Borish; James H. Freis, Jr.

Companies, Organizations and Groups

Shanghai Gold Exchange; Dubai Mercantile Exchange; Tokyo Commodity Exchange, Inc.; United States Department of the Treasury

Statistics

47,715,311 pages viewed, 7,851 articles, 180,576 edits
MarketsWiki Statistics

Lead Stories

TMX CEO Thomas Kloet, who oversaw company’s expansion, to retire at end of August
Canadian Press | Financial Post
The head of the company that operates Canada’s largest stock exchange will retire at the end of August, TMX Group Ltd. said late Monday night.
jlne.ws/1lKSrHa

BoE starts review of clearing houses
Philip Stafford – FT.com
The Bank of England has begun a review of how clearing houses test their resilience to market shocks in an effort to ensure that some of the world’s largest clearing houses pass tough new European industry standards.
jlne.ws/1lKStPf

Global regulators to intensify efforts to revive securitization
Reuters
Global regulators will intensify their efforts to revive a securitization market tarnished by the financial crisis and now seen by policymakers as a key source of funds for the economy, the head of an umbrella regulatory group told Reuters.
jlne.ws/1lKSu5B

Liquidnet Melds Dark Pool With Bonds Through Vega-Chi Purchase
Matthew Leising and Sam Mamudi – Bloomberg
Liquidnet Holdings Inc., which runs a private stock market that opened in 2001, is expanding into corporate bonds by purchasing London-based Vega-Chi Ltd. Terms of the deal weren’t disclosed by New York-based Liquidnet. If approved by regulators, the union would join its dark pool spanning five continents with a fixed-income platform created by former Goldman Sachs Group Inc. trader Constantinos Antoniades.
(via email)

Liquidnet Expands into Fixed Income Market with Acquisition of Bond Trading Platform Vega-Chi
Press Release
Liquidnet, the global institutional trading network, announced today that it will enter the fixed income market with its acquisition of bond trading platform Vega-Chi.
jlne.ws/1lKSu5E

Not the London Metal Exchange?
Metal Bulletin
Talk of the London Metal Exchange once again branching into contracts for materials other than metals highlights the differences in thinking between the exchange and some of its users.
jlne.ws/1lKSu5J

German Court Validates Participation in Euro Zone Bailout Fund
NYTimes.com
Germany’s highest court ruled on Tuesday that the country’s government may participate in a fund set up to help stricken countries in the euro zone.
jlne.ws/1lKSrXE

IMF Deputy Managing Director Nemat Shafik Announces Her Departure
jlne.ws/1lKSu5O

Regulatory

FCA and Bank of England agree Memorandum of Understanding for supervision of markets and market infrastructure
The Financial Conduct Authority and the Bank of England, including the Prudential Regulation Authority, have agreed a Memorandum of Understanding that sets out how they co-operate with one another in relation to the supervision of markets and market infrastructure, which includes financial market infrastructures.
jlne.ws/1lKSrXI

Exchanges & Trading Facilities

BATS Global Markets Successfully Tests, Operates Company Headquarters from Disaster Recovery Site
BATS Global Markets (BATS), a leading operator of securities markets in the U.S. and Europe, today announced the successful and total operation of its U.S. equities exchanges BZX and BYX, and BATS Options, from its disaster recovery (DR) site on March 13th as part of its Business Continuity Planning (BCP) process.
jlne.ws/1lKSrXJ

Thomson Reuters Launches Block Trading Venue
Jake Thomases – WatersTechnology
Built on the Autex network, Thomson’s new liquidity pool will be open to buy and sell-side traders.
jlne.ws/1lKSum8

Oslo Børs ASA Implements Next Generation OTC Derivatives Platform From Baymarkets
Oslo Børs has upgraded Oslo Connect, their OTC derivatives MTF trading and price discovery system, to the latest version of Edge, which is provided by Baymarkets AB, the specialist OTC market systems developer. Edge is the trading and registration platform used by exchanges, brokerage firms and banks in multiple markets throughout the world.
jlne.ws/1lKSumb

Technical disturbances on NASDAQ OMX Nordic and Baltic, Derivatives, Fixed Income and Commodities markets
Genium INET FIX An issue related to Match ID for FIX has been discovered in the Genium INET 4.0201 release.
jlne.ws/1lKSsea

London Stock Exchange Sees Increase In Retail IPO Activity
jlne.ws/1lKSumk

Vienna Stock Exchange Acquires Two New International Trading Members
jlne.ws/1lKSuCE

MIAX Options Holiday Schedule – Good Friday
jlne.ws/1lKSuCG

Hedge Funds & Managed Futures

A Tribute to a California Pension Fund’s Guiding Hand
NYTimes.com
They were the power couple of California’s pension assets. But their romance was largely a secret, even at the time of their wedding more than a year ago.
jlne.ws/1lKSsuE

Two SAC Capital Traders Jump to Highbridge Capital
NYTimes.com
The hedge fund Highbridge Capital Management just lured away two portfolio managers from Steven A. Cohen’s SAC Capital Advisors to manage money for its stock trading funds.
jlne.ws/1lKSsuJ

Exits Still A Challenge for Middle East Buyout Funds, Carlyle Says
Asa Fitch – MoneyBeat – WSJ
The U.S. private equity giant Carlyle Group sees achieving asset sales and delivering returns to investors as the biggest challenge for managers in the Middle East and North Africa even as regional markets and economies rebound from the global recession.
jlne.ws/1lKSsKZ

Google’s Legal Chief Joins K.K.R.’s Board
NYTimes.com
Kohlberg Kravis Roberts has attracted one of Silicon Valley’s top legal executives to its board of directors.
jlne.ws/1lKSsL1

F&C to lose £14.5bn of assets
Joe McGrath – Financial News
F&C Asset Management is set to lose £14.5 billion of third-party assets across sterling fixed income, equities and multi-asset funds, which it manages for Friends Life.
jlne.ws/1lKSsL4

CalPERS To Allocate Additional $200 Million To Private Equity Emerging Investment Manager Program
The California Public Employees’ Retirement System (CalPERS) today announced that it will allocate an additional $200 million to its emerging manager program in the Private Equity asset class. CalPERS will utilize a new fund-of-funds to deploy the capital, focusing on high-potential emerging manager funds.
jlne.ws/1lKSuT8

Banks & Brokers

SocGen to Ask Shareholders to Ease New Bonus Limits
Fabio Benedetti-Valentini and Elisa Martinuzzi – Bloomberg
Societe Generale SA (GLE), France’s second-largest lender by market value, became the first among Europe’s leading investment banks to formally seek shareholder permission to pay bonuses amounting to twice bankers’ salaries.
jlne.ws/1lKSuTe

Clearing & Settlement

Von Rahden to Head Up SmartStream’s Frankfurt Operation
Victor Anderson – WatersTechnology
London-based SmartStream Technologies has appointed Marcus von Rahden to manage the increased demand in Germany for the vendor’s back-office processing solutions and data management services.
jlne.ws/1lKSsLb

IntercontinentalExchange Introduces Clearing for Markit iTraxx Senior Financials Index
IntercontinentalExchange Group, the leading global network of exchanges and clearing houses, announced today that it will launch clearing for Markit iTraxx Senior Financials credit default swap (CDS) index instruments.
jlne.ws/1lKSuTj

Oslo Børs and LCH.Clearnet launch new clearing service
As of March 19 2014, equities and ETFs traded on Oslo Børs and Oslo Axess can be cleared through LCH.Clearnet.
jlne.ws/1lKSuTp

CME Group Clearing: REVISED: March 2014 Final Foreign Currency Settlement Prices
jlne.ws/1lKSv9F

CME Group New Product Advisory: Weekly Options on E-mini DJIA futures
jlne.ws/1lKSv9L

CME Group Clearing: Trade by Day Functionality for HBI
jlne.ws/1lKSt1B

Indexes & Products

Japanese ETF trading volumes soar
Anna Irrera – Financial News
Trading of exchange-traded funds on Japanese exchanges surged in 2013, following bold policy moves by the country’s government to spur growth in the local economy.
jlne.ws/1lKSv9V

IntercontinentalExchange Introduces Clearing For Markit ITraxx Senior Financials Index
jlne.ws/1lKSt1H

Euronext and CF&B Communication launch 2nd European ETF Event
jlne.ws/1lKSt1K

Annual Changes To The NASDAQ OMX China Technology Index
jlne.ws/1lKSvqh

Semi-Annual Changes To The NASDAQ Clean Edge Green Energy Index
jlne.ws/1lKSvql

Technology

Open For Business: Bloomberg Builds Partnerships With Financial Software Providers
More Than 125 Trade Execution, Portfolio, Risk And Inventory Management Software Providers Join Partner Community
jlne.ws/1lKSvXg

EDI Launches bondE, A New Bond Analytics Service, In Partnership With The Beast Apps
Exchange Data International (EDI), a provider of global security corporate actions, pricing and reference data, in partnership with The Beast Apps announced today the release of its latest data feed, bondE.
jlne.ws/1lKSvqr

Enforcement

Update for investors in Arck LLP
Some investors in Arck LLP (Arck), an unregulated property investment vehicle that entered liquidation in February 2012, are being written to with offers of financial support by Yorkshire Bank.
jlne.ws/1lKSvXm

Former CME hog futures clerk convicted in $200,000 fraud case
Reuters
A former clerk at the Chicago Mercantile Exchange was convicted of commodities fraud for manipulating trades in the lean hog futures market to earn more than $200,000, federal law enforcement officials said on Monday.
jlne.ws/1lKSvXp

Ex-BofA banker pleads guilty to theft, gets prison: Massachusetts AG
Reuters
A former personal banker at Bank of America Corp pleaded guilty on Monday to stealing more than $2.1 million from 31 people in a Ponzi-like scheme, and was sentenced to between three and five years in prison, Massachusetts Attorney General Martha Coakley said.
jlne.ws/1lKSvGL

Madoff Staff Trial Likely Sets Duration Record
WSJ.com
When the 12 jurors deliberating over the fate of five former employees of Bernard L. Madoff heard their names called in October, they likely had no idea they would ultimately set a record.
jlne.ws/1lKSvXs

[BCSC] U.S. resident agrees to sanctions for illegal distributions in contravention of a cease trade order
jlne.ws/1lKSvGQ

Environmental & Energy

EU May Allow Renewable Energy-Linked Aid to 62 Industries
Ewa Krukowska – Bloomberg
The European Union is considering allowing state aid to 62 energy-intensive industries including aluminum- and petroleum-product manufacturers to help with the cost of boosting renewable energy, a draft EU document showed.
jlne.ws/1gGltTI

Billionaire Fridman’s L1 Buys RWE Unit for $7.1 Billion
Tino Andresen and Yuriy Humber – Bloomberg
L1 Energy, the investment vehicle of Russia’s fourth-richest man Mikhail Fridman, agreed to buy RWE AG (RWE)’s Dea oil and gas unit, gaining assets in the U.K., Germany and the North Sea.
jlne.ws/1gGlFCy

GE Energy to Invest 100s of Millions of Euros in EU Renewables
Louise Downing – Bloomberg
GE Energy Financial Services, a unit of General Electric Co., expects to invest hundreds of millions of euros in renewable energy across Europe this year.
jlne.ws/1gGlN55

Asia-Pacific

China’s central bank holds bailout talks with property developer
Jamil Anderlini in Beijing – FT.com
China’s central bank and one of its largest state lenders are holding emergency talks over whether to bail out a defaulting real estate developer.
jlne.ws/1lKSwdM

SGX CDP To Move To Buona Vista On 14 April
Singapore Exchange Central Depository (SGX CDP) will move its customer service centre and operations to The Metropolis, a stone’s throw away from the Buona Vista MRT Interchange on 14 April 2014.
jlne.ws/1lKSvGU

Thai Listed Firms Make Record Dividend Payment In 2013
jlne.ws/1lKSyCk

Dalian Commodity Exchange: Notice On Listing And Trading Of New Contracts
jlne.ws/1lKSyCo

Frontier Markets

Under-pressure United Stock Exchange in talks to be acquired by BSE
The Economic Times
The United Stock Exchange (USE), under pressure over dwindling net worth and operating only in the currency futures segment, is in talks to be acquired by BSE Ltd, which runs Asia’s oldest exchange, two people close to the development told ET.
jlne.ws/1lKSwdR

Euronext signs agreement on UTP implementation with four MENA exchanges
Euronext, a wholly owned subsidiary of IntercontinentalExchange Group (NYSE: ICE), today announced that it has successfully signed agreements with four exchanges in the Middle East and North Africa (MENA) region for the implementation of its new UTP solution, UTP-Hybrid.
jlne.ws/1lKSyCs

DGCX Average Daily Volume Grows 6% in February
Total volumes on the Dubai Gold & Commodities Exchange hit 1,000,174 contracts in February, with average daily volume rising 6% from the previous month to reach 50,309 contracts per day.
jlne.ws/1lKSyCu

Dubai Financial Market Welcomes Delegates From Erbil Stock Exchange And The Governance Committee In The Iraqi Region Of Kurdistan
The Second Of Its Kind Visit Aimed To Wrap Up The Preparations For Launching Stock Mark In Kurdistan
jlne.ws/1lKSwuf

Miscellaneous

Is Yahoo’s Business Worth Less Than Nothing?
Matthew C. Klein – Bloomberg View
Yahoo! Inc.’s market value has doubled since Marissa Mayer took over as chief executive officer, which you might think would be cause for celebration. But more than all of those gains can be attributed to the gangbuster growth of Alibaba Group Holding Ltd. and Yahoo Japan Corp., two thriving companies that are part-owned by Yahoo. In other words, the implied market value of the rest of Yahoo has collapsed during Mayer’s tenure, and might even be negative.
jlne.ws/1lKSyCw

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