Asset managers told to come out of the shadows
Gillian Tett – FT.com
In recent years Helena Morrissey, head of Newton, the asset management group, has attracted much attention. She is something of a rarity, being a truly senior woman in British finance, and she has used that platform to speak out on many issues including the 30 per cent campaign, which aims to get more women on British boards.
***JM: When you don’t speak out, you create an environment where people can invent all kinds of things about what you do. But when you DO speak out and engage, you force people to ignore what you say so they can keep thinking the same thing.
CBOE Introduces The CBOE Mid-Term Volatility Index
Chicago Board Options Exchange, Incorporated today announced that it has created a new benchmark volatility index — the CBOE Mid-Term Volatility Index. CBOE began disseminating values for the new Mid-Term Volatility Index today.
***JM: Now you can worry about stuff that’s still months away.
Citigroup Attempts to Sing Itself to Public Approval
The banking industry has spent countless hours and dollars trying to make up for the damage done by the financial crisis. Banks have run feel-good advertisements, waged aggressive lobbying campaigns, apologized to the public, tried to lend more, even sponsored public bike-rental programs in cities such as London and New York. Now Citigroup Inc. is trying a new tactic: singing. On national TV.
***JM: Their rendition of “I Fought the Law, and the Law Won,” was upstaged only by their soulful and edgy version of Pink Floyd’s “Money”.
UBS Memo: ‘Multi-Dealer Chat Rooms Are Banned’
Katie Martin – MoneyBeat – WSJ
UBS has become the latest bank to bar multi-dealer chat rooms.
***JM: This really, seriously, is a mistake. When you ban something, you don’t eliminate it, you drive it elsewhere. These institutions should be big advocates for these chat rooms, and then MONITOR THEM. They should have done that all along. Hire the NSA; I hear they’re looking for new work these days.
Twitter structured products less popular than those linked to Facebook
Vita Millers – Risk.net
Twitter’s initial public offering sparked demand for structured products based on the shares of the social media giant, but appetite has been noticeably lower than was the case for products using Facebook as the underlying
***JM: I’d like to think that at least part of the reason for this is short-term learning.
Two-Word Investment Outlooks
The Reformed Broker
***JM: “Buy commodities” – Jim Rogers. “I LOLed.” – me
What’s in a name? CME’s Kim Taylor Says Extra Cost
Clearinghouses are now considered systemically important to financial markets. But with that designation are new regulations and capital requirements. John Lothian News sat down with Kim Taylor of CME Clearing to talk about how a new requirement will raise costs for market participants. Commodity Futures Trading Commission (CFTC) regulation 39-33, passed on November 15, is a capital requirement that is set to be implemented by the end of the year. It calls for US-based clearinghouses to be designated as qualified central counterparties (QCCPs), which ultimately would give them more favorable capital requirements under Basel III but tough capital US guidelines.
MarketsWiki Recent Updates
Companies, Organizations and Groups
45,567,952 pages viewed, 7,713 articles, 169,030 edits
US exchanges given green light for Europe repositories
Anish Puaar – Financial News
US-based exchange groups CME and IntercontinentalExchange have gained approval to collect and store data on OTC derivatives in Europe, as market participants rush to meet the region’s trade reporting deadline next year.
London Stock Exchange to quit World Federation of Exchanges
Philip Stafford – FT.com
The London Stock Exchange Group is to resign from the World Federation of Exchanges, the main trade association for global bourses, according to two people familiar with the situation. The highly unusual move for an exchange to leave the WFE comes only four years after the LSE withdrew from the Federation of European Securities Exchanges, an equivalent European association.
***JM: Still an open question of whether they will change their name to “North LSE” and only trade with one, special friend.
Gensler Gives Wall Street Two Months to Meet Overseas Policy
Silla Brush & Robert Schmidt – Bloomberg
The top U.S. derivatives regulator gave Wall Street two months to abide by a new policy imposing Dodd-Frank Act rules on banks when they arrange trades domestically and then book them overseas.
***JM: Two and a HALF… two and THREE-QUARTERS…
Tocom eyeing global debut of LNG futures with help from CM
Nikkei Asian Review
The Tokyo Commodity Exchange plans to create the world’s first exchange for liquefied natural gas futures by acquiring know-how from the operator of the Chicago Mercantile Exchange.
Swiss regulator urges banks to come clean on U.S. tax offences
Switzerland’s financial regulator warned the country’s banks on Friday to come clean to U.S. tax officials by an end of the year deadline and face penalties, or risk prosecution later.
Germany’s EEX exchange sees scope to push into new markets
The European Energy Exchange plans to push further into emerging Europe as the German-based bourse looks to introduce new products and tap new markets, the exchange’s chief operating officer said.
JPMorgan eyed sale of metals unit in 2012
Gregory Meyer in New York and Gina Chon in Washington – FT.com
JPMorgan Chase drew up plans to sell part of its metals warehousing empire last year as it faced pressure to show regulators that the business fitted with the activities of a bank, according to newly released documents.
New Zealand’s Financial Markets Authority Announces New Chief Executive
The Financial Markets Authority (FMA) has appointed Rob Everett as its new Chief Executive, effective 3 February 2014.
Why EU regulators should be careful what they wish for
Joe McGrath – Financial News
European Commission proposals to change how money market funds are regulated have left treasurers facing the prospect of funds with a fixed net asset value becoming a thing of the past.
Questions linger over regulation as RSA Ireland chief exits
Jamie Smyth and Alistair Gray – FT.com
Ten weeks ago, the relationship between the head of RSA’s Ireland arm and his boss in London could hardly have seemed any stronger. Simon Lee, who runs RSA, heaped praise on Philip Smith as he appointed him as the director responsible for handling the group’s dealings with insurance brokers around the world – on top of his day job in Ireland. It was a different story on Thursday.
SEC Announces Agenda, Panelists For Roundtable On Proxy Advisory Services
The Securities and Exchange Commission today announced the agenda and panelists for its December 5 staff roundtable on the use of proxy advisory firm services by institutional investors and investment advisers.
Canadian securities regulators propose streamlining disclosure requirements for private foreign securities offering to certain Canadian investors
Exchanges & Trading Facilities
[SIX] Exciting 2013 Investor Relations Conference
The seventh Investor Relations Conference was held on 26 November 2013. More than 100 visitors gained valuable insight into topics, that the investor relations community is dealing with today.
ICE Trade Vault Europe Approved by ESMA as Trade Repository
London Stock Exchange Identifies ‘1000 Companies To Inspire Britain’
New Trading Hours At Bucharest Stock Exchange
MIAX Options Exchange: Penny Pilot Classes For Option Classes To Start Trading On December 3, 2013
MIAX And ISG Extend Effective Date For Electronic Blue Sheet Data Elements
ASX: Proposed Changes On Long-Term Suspended Entities
Hedge Funds & Managed Futures
Some Big Public Pension Funds Are Behaving Like Activist Investors
RANDALL SMITH – NYTimes.com
Activist investors like Carl C. Icahn, Daniel S. Loeb and William A. Ackman are getting deep-pocketed imitators. Some of the biggest public pension funds, which have sought to influence companies for years, are now starting to emulate these investors by engaging with, and sometimes seeking to oust, directors of companies whose stock they own.
In Bogle Family, It’s Either Passive or Aggressive
Liam Pleven – WSJ.com
On their regular Friday morning phone calls, Jack Bogle and his son, John, catch up on family news. Sometimes they will compare notes on a particularly gnarly crossword. But the conversation often turns to a big topic among the Bogle clan: the best strategy for investing in stocks.
Australia Blocks A.D.M. Bid for GrainCorp
The Australian government rejected on Friday a $2.7 billion takeover bid for GrainCorp by Archer Daniels Midland, the American agribusiness giant, saying that the deal was against the national interest.
Ireland’s pensions still grappling with enforced austerity
Mark Cobley – Financial News
Four years on from the start of Ireland’s financial and banking crisis, the country’s E80 billion pension fund sector is still under serious pressure. But with a controversial fund levy set to continue for another year at least, and new funding regulations in the pipeline, the challenges are not going away.
Banks & Brokers
Swiss Giants’ New Euro Lobby Reflects Changes Back Home
John Letzing – MoneyBeat – WSJ
It’s been clear for a while now that Switzerland’s big banks, UBS and Credit Suisse, have different regulatory priorities than the bulk of the roughly 300 other lenders in the Alpine nation—which are presently suffering through a bout of upheaval thanks to mounting offshore tax evasion crackdowns. Now the giants are formalizing the situation by setting up their own, separate lobby shop in Brussels.
BNP Paribas wins mandates across four continents
BNP Paribas’ wins include mandates from Brazil’s largest asset manager, UK pension funds, the European Bank for Reconstruction and Development and Nikko Asset Management
Exclusive: Ex-UBS banker Weil agrees to be extradited to U.S.
Raoul Weil, a former UBS banker charged by U.S. authorities five years ago for allegedly helping rich Americans dodge taxes via secret Swiss bank accounts, has agreed to go to the United States to face trial after being arrested in Italy, Weil’s lawyer and judicial sources told Reuters.
No gold bars but higher salaries for London bankers with bonus cap
In the 1990s, London-based investment banks rewarded top employees with gold bars, fine wine and oriental carpets to dent the impact of higher payroll taxes. Now, with public anger at banking excess near all time highs, they are looking at less flashy ways to cope with curbs on bonuses, including a new monthly allowance.
Barclays Capital ordered to pay $2.1 million to NY trader
Barclays Capital Inc has been ordered to pay $2.1 million to a New York-based trader it fired last year in connection with the alleged rigging of the London interbank offered rate, or Libor, according to arbitration documents.
France’s Credit Agricole to close 50 branches by 2015: paper
Credit Agricole, France’s third-biggest bank, plans to close about 50 branch offices in the Paris region by 2015, French daily Les Echos said.
RBS boss: no ‘systematic’ profiting from troubled firms
Royal Bank of Scotland’s boss said he did not believe the UK state-backed bank had conducted a “systematic” effort to profit from its troubled business customers.
UBS Restructuring Forex Unit
UBS AG is shaking up its investment bank, and has removed a top foreign-exchange executive, amid a burgeoning investigation into potential manipulation of currency markets.
Clearing & Settlement
ICAP Announces Strategic Alliance With Clarus Financial Technology For OTC Data Service
As technological alignments with the Dodd-Frank Act continue to proliferate North America’s institutional FX sector, British post trade risk mitigation company ICAP has today announced that it is to offer a new data service for OTC derivatives in conjunction with US-based Clarus Financial Technology.
BofA Merrill Lynch And Goldman Sachs Join EurexOTC Clear For Interest Rate Swaps
Indexes & Products
BM&FBOVESPA Announces Corporate Sustainability Index Portfolio For 2014
Seven New db x-trackers Bond Index ETFs Launched On Xetra – ETFs Provide Access To Euro-Zone And Japanese Bonds
Orc Group Holding AB and Orc Group invite to an information meeting on December 12
Markit Selected By The Industry To Deploy Compliance Solution For Equity Trading In Hong Kong
Markit, a leading, global financial information services company, today announced that it has been selected by members of the Asia Securities Industry and Financial Markets Association (ASIFMA) to provide the online solution to facilitate compliance with Hong Kong’s Securities and Futures Commission’s (SFC) new electronic trading rules.
Thomson Reuters Secures Three Wins At FX Week Best Banks Awards 2013
Thomson Reuters Named “Best Broker For Emerging Markets”, “Best Vendor For Dealing Technology” And FXall Named “Best Professional Electronic Trading Venue”
FX Bridge Preps Options Volatility Commentary
Foreign exchange spot and options trading platform provider FX Bridge Technologies is rolling out two new subscription-based FX volatility measures designed to help traders and investors identify trading opportunities in FX options and less common currency pairs.
Federal Court in California Orders James D. Crombie to Pay over $1.5 Million for Misrepresentations to the National Futures Association and for Solicitation Fraud
Crombie’s fraudulent scheme involved making false statements and providing false documents to the National Futures Association (NFA) and fraudulently soliciting funds for his former company, Paron Capital Management, LLC (Paron)
Analyst Says SAC Trader Sought ‘Edgy’ Information
BEN PROTESS – NYTimes.com
Jon Horvath needed to step up his game at SAC Capital Advisors. Mr. Horvath, who gathered information about technology companies in which SAC invested, conceded in a self-performance review in 2007 that he offered a “poor contribution to” profit at the giant hedge fund.
Investor Alert: BCSC issues warning about Mission Mining Company
Securities regulator alleges that Princeton mining analyst engaged in insider trading
SGX welcomes first Chinese Bank’s RMB bond listed and cleared in Singapore
Singapore Exchange (SGX) today welcomed the first Chinese Bank’s renminbi (RMB) bond to be listed and cleared in Singapore. The RMB bond is issued by Industrial and Commercial Bank of China’s (ICBC) Singapore branch. The bond issue is settled and cleared in RMB via SGX’s Central Depository (CDP).
What Do China’s Trusts Want to Be When They Grow Up?
Dinny McMahon – MoneyBeat – WSJ
China’s trust companies are facing an existential crisis. In only five years they have gone from a mere rounding error in China’s lending data to the major plank of the country’s shadow banking system, with more than 10 trillion yuan ($1.64 trillion) in assets under management.
Singapore to Allow Mainland Chinese Listings
Jake Maxwell Watts – MoneyBeat – WSJ
Mainland Chinese companies registered in China will now able to list in Singapore, a move that will allow the Southeast Asian exchange to compete with Hong Kong to attract China’s corporate giants.
HKEx Concludes Series of Events to Celebrate 20th Anniversary of H shares
HKEx Report On Initial Public Offering Applications, Delisting And Suspensions
Dalian Commodity Exchange: Notice On Revising Relevant Rules In The Measures For Information Management
European firms size up Iran’s post-deal potential
The phone hasn’t stopped ringing at the German-Iranian Chamber of Commerce since six world powers reached a deal with Tehran to curb its nuclear program, opening the prospect that Iran can begin to shake off its economic isolation.
Three in fray for MCX-SX top post
An IAS officer, a CEO of a currency exchange and a senior official from a leading fund house have been shortlisted for the post of CEO and managing director of the MCX Stock Exchange, people close to the development said.
MCX Weekly Market Report November 22, 2013 – November 28, 2013
Malawi Stock Exchange Weekly Trading Report- Week Ending 29th November, 2013