First Read

Hull Tactical Asset Allocation Launches its First ETF Product; Hull Tactical US ETF (NYSE: HTUS), an actively managed product providing risk-adjusted equity exposure, now on the market
Hull Tactical Asset Allocation
Hull Tactical Asset Allocation, LLC (“HTAA”), announces the launch of the Hull Tactical US ETF (“HTUS”), an actively managed exchange traded fund (“ETF”) designed by industry veteran Blair Hull. The ETF is designed to deliver hedge fund-type management and trading tactics to a broad investor audience.
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***** Our neighbor down the hall in the CBOT Building, Blair Hull, has been busy. He even brought in the marketing whiz Bruce Goldberg, formerly of the ISE, to help promote this innovative new ETF.

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The Rise of the Compliance Guru—and Banker Ire; The real growth area in U.S. finance is compliance. That’s definitely a bummer for people trying to make money. Is it also bad for the economy?
Anthony Effinger, Bloomberg
To hear Jamie Dimon tell it, regulation and the cost of compliance are becoming a threat to the American dream.
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***** Compliance was the department I always went to and got a “no.” They did not like risk, and worse did not understand the business. Or so I thought. And now they have even more power. I am glad not be a broker anymore.

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US futures regulator in call to tackle industry ‘culture problem’
Gregory Meyer in New York, FT
A senior US regulator has advocated taking a page from the UK and passing a new rule tightening governance of derivatives marketplaces to cure what she called a “culture problem” pervading finance.
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***** We have all kinds of culture problems. Which one did you want to start with? At least we have come a long way since the Tom Donovan/Mary Shapiro days.

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CME traders push regulator to delay futures pit closure by 90 days
By Tom Polansek, Reuters
CME Group Inc’s plan to close most of its futures pits next month is facing its first organized opposition from a small group of Chicago traders and brokers who have hired a law firm to push regulators to give more time for review. Lawyers from Katten Muchin Rosenman sent a letter to the Commodity Futures Trading Commission on behalf of the group, who work on CME’s open-outcry financial trading floor in Chicago, to request a 90-day review on the closure of the pits, traders backing the effort said on Wednesday.
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***** Traders with time on their hands are a dangerous thing for the exchange today, but that was also where many of the innovative ideas for new products came from in days of old.

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A big, dark Chicago room will get a view when it goes on the market
By Fiona Ortiz, Reuters
FOR LET: 36,000 square-foot (3,345 square-meter) cave in central Chicago. Three-story ceilings, cutting-edge fiber optic feeds, historic art deco setting. Ten pits available, perfect for lounging. Jackets not included.
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****** A nice fishing pond in the middle of the room would be nice.

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Smart software key to fate of CME options pits as futures closure looms
By Christine Stebbins, Reuters
As the July 6 deadline for closing the century-old Chicago Board of Trade grain futures pits looms, a cloud hangs over the future of the neighboring options pits.
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****** Smart people are always the key. CME options volume yesterday was 1.37 million on Globex and 1 million open outcry

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Great Talent Knows No Bounds
TT TradeTalk
One of the greatest challenges of running a technology company—particularly when you’re not located on a coast and your name isn’t Google, Microsoft, Amazon or Facebook—is talent acquisition. Sure, TT faces plenty of other challenges as a technology provider in capital markets: our industry has had a tumultuous few years which have seen contraction, corruption and regulatory uncertainty; the only recently abating race toward zero latency was a story of significant capital expenditure as much as it was engineering ingenuity; the benefits that technology has brought to the trading world have often been overshadowed by its high-profile failures.
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***** Buried in this blog post is news that Katie Burgoon has been promoted to EVP Human Resources, Mike Mayhew has been promoted to Chief Information Officer and Drew Shields has been promoted to Chief Technology Officer.

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Goldman’s Cohn: You’re Wrong If You Think Markets Ready for Fed
by Michael J Moore, Bloomberg
Years of discussing when and how the Federal Reserve will raise interest rates probably isn’t going to prevent market participants from being caught off guard, Goldman Sachs Group Inc. President Gary Cohn said.
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***** Where is the silver platter?

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The Ongoing Woes of FCMs
by Eugene Grygo, FTF
Derivatives expert John P. Needham, president of Needham Consulting, alerted us more than a year ago at Financial Technology Forum’s DerivOps Chicago conference in April 2014 to the fact that 10 futures commission merchants (FCMs) are handling 75 percent of U.S. customer segregated funds, a shocking truth compared to a little over a decade ago, according to data from the CFTC.
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****** More fodder for Carl Gilmore.

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Looking for some space in the CBOT Building?
Here is the list of current available spaces
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Eurex Exchange Webinar on emerging markets and frontier markets – a closer look at access, opportunities and risks
Emerging markets (EM) and frontier markets (FM) can provide you access to some of the most dynamic and fastest-growing economies in the world. Based on World Bank data, emerging markets are home to 63% of the world’s population and another 22% live in frontier markets. Together these markets represent 75% of the world’s land mass and about 50% of world GDP at purchasing power parity (PPP), yet they account for just 13% of the global equity market capitalization on a float-adjusted basis. This gap is likely to close with strong population growth, increase in educated workforce and governments fighting corruption. The International Monetary Fund estimates that by 2017, 12 of the 20 fastest growing countries on earth will be in Africa.

Date: Tuesday, 30 June 2015
Time: 4 p.m. NYC time, 3 p.m. Chicago time

Speakers:
Leonid Kotlyar, Vice-President – Futures & Options at Bank of America Merrill Lynch
Ricardo Manrique, Executive Director – Index Business Management at MSCI Inc.

We will discuss:
Most promising emerging and frontier markets
Risks associated with investing in EM and FM today and in the short-term future
Differences about getting access to EM and FM through regional indexes, country indexes or individual stocks
Outlook

To register for this webinar, please click here: https://attendee.gotowebinar.com/register/1618458393703424770

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MarketsWiki

MarketsWiki Page of the Day
Tina Hasenpusch

MarketsWiki Recent Updates

People

Blair Hull; Chris White; Katie Burgoon; Haim Bodek; Lee Betsill; Doug Duquette; Kellie Ann Togashi; Nicholas Ghanma; Zachary Ziliak; Matt Tobin; Diona Rogers; Andrew Lamb

Companies, Organizations and Groups

Ziliak Law, LLC; CME Clearing Europe

Statistics

64,575,947 pages viewed, 8,221 articles, 192,646 edits
MarketsWiki Statistics

Lead Stories

Optiver pays $17m to settle oil manipulation suit
Philip Stafford, FT
Optiver, one of the world’s largest high frequency traders, has finalised a $16.75m settlement with a group of investors over allegations it was part of an unlawful scheme to manipulate the oil futures market eight years ago.
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Hong Kong regulator slams exchange’s proposal to change listing rules
Reuters
Hong Kong’s securities regulator does not support a controversial proposal by the city’s stock exchange operator to change the city’s listing rules, the regulator said in a statement on its website on Thursday.
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ICE CLEAR SINGAPORE ANNOUNCES FIRST THREE CLEARING MEMBERS
ICE
Intercontinental Exchange (NYSE: ICE), the leading global network of exchanges and clearing houses, today announced that KGI Ong Capital Pte. Ltd., Phillip Futures Pte Ltd and UOB Bullion and Futures Limited (UOBBF) have been approved as the first three clearing members for ICE Clear Singapore. ICE Futures Singapore and ICE Clear Singapore have received all regulatory approvals from the Monetary Authority of Singapore (MAS).
jlne.ws/1HjuUK9

Singapore regulator gets tough with SGX
Philip Stafford, FT
The Singapore Exchange has been heavily criticised for its communications with market participants over a technical outage last year, with its main regulator ruling that it cannot increase customer fees until S$20m of technology improvements are implemented.
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Nasdaq Pulls in Chain for Private Markets Ledger Pilot
By Timothy Bourgaize Murray, Waters Technology
Specialist technology provider Chain has been tapped to help Nasdaq launch its Open Asset Protocol initiative for pre-IPO private markets trading.
jlne.ws/1Neo48Z

Nasdaq partners with Chain to bring blockchain to private market
BY JOHN MCCRANK, Reuters
Exchange operator Nasdaq OMX Group Inc said on Wednesday it partnered with blockchain infrastructure provider Chain to make digital ledger technology available to private companies that issue and transfer shares on the Nasdaq Private Market (NPM).
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Wall Street Could Save Billions on Swaps as Regulators Squabble
Bloomberg
A quarrel among regulators could add up to billions in savings for Wall Street banks.
At stake is a proposed rule that has dragged on for years that could require firms like JPMorgan Chase & Co. and Morgan Stanley to set aside tens of billions of dollars in collateral when trading swaps with their own affiliates. Now, a last-ditch effort by bank lobbyists has helped spur some regulators to second-guess how strict they should be, according to three people familiar with the discussions.
jlne.ws/1RyOhjM

Greek Math Whiz at Irish Hedge Fund Tells the Tale of Two Crises
by Dara Doyle, Bloomberg
Konstantinos Drakakis sips an espresso next to his hedge-fund office in Dublin and says any deal to keep aid flowing to his Greek homeland will make little difference.
jlne.ws/1HfVaan

Is This Central Banker Over-Exposed?; BOJ Governor Haruhiko Kuroda is out in public enough times to make a celebrity blush
by Toru Fujioka, Bloomberg
Bank of Japan Governor Haruhiko Kuroda may be over-exposed.
jlne.ws/1GsKGyx

Winners and losers emerge from fragmented FX swap rules
by Paul Golden, Euromoney
Inertia around the mandating of FX activity on swap execution facilities (SEFs) by the Commodity Futures Trading Commission (CFTC) continues to favour Europe as a trading location.
jlne.ws/1eIPol9

Yay! The Sand Hill Exchange is back
Paul Murphy, FT
Twitter Facebook Google+ LinkedIn StumbleUpon Reddit
Despite having been shuttered, brutally, a month ago by the SEC, a Silicon Valley start-up that tried to offer trading in derivatives linked to private SV companies like Uber and Snapchat is suddenly back in business. But there’s a catch.
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LBMA to start reporting OTC gold trade soon; exchange model seen as costly
BY A. ANANTHALAKSHMI, Reuters
The London Bullion Market Association (LBMA) could soon take steps to report trades of the over-the-counter gold market, but the prospect of higher costs makes an exchange-traded model unattractive to participants for now, its chief executive said.
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Regulatory

Keynote Speech of CFTC Commissioner Sharon Y. Bowen before the Quadrilateral Meeting at the European Central Bank (Frankfurt, Germany)
CFTC
Thank you for the introduction and good evening everyone. It’s a pleasure to be here in Frankfurt to speak to market participants, regulators and observers on this side of the Atlantic. We all share one global market in finance these days, and that ma
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FCA discussion paper calls on firms to deliver smarter, effective communications
UK FCA
The Financial Conduct Authority (FCA) has kick-started a debate to encourage firms, consumer groups, and stakeholders to work together to deliver information to consumers in smarter and more effective ways.
jlne.ws/1e58Vv2

Debt management firms still failing Britain’s most vulnerable consumers, says FCA
UK FCA
The debt management sector remains one of the UK’s highest risk consumer credit sectors, according to a thematic review published today by the Financial Conduct Authority (FCA).
jlne.ws/1TOBbTH

Quality of debt management advice
UK FCA
This paper reports on the findings of our thematic review of the quality of debt management advice.
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Smarter consumer communications
UK FCA
Firms’ communications are fundamental to helping consumers make informed decisions.
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Exchanges & Trading Facilities

CME Group and BarclayHedge Honor Managed Futures Leaders at Fourth Annual Managed Futures Pinnacle Awards
CME Group
CME Group, the world’s leading and most diverse derivatives marketplace, and BarclayHedge recognized managed futures industry leaders at the fourth annual Managed Futures Pinnacle Awards last night. The ceremony featured live entertainment by Comedian Jay Mohr.
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CBOE, C2 and CFE Trading Schedule for the Independence Day Holiday
CBOE
jlne.ws/1Kc6rYh

Nasdaq Announces Mid-Month Open Short Interest Positions In NASDAQ Stocks As Of Settlement Date June 15, 2015
Mondovisione
At the end of the settlement date of June 15, 2015, short interest in 2,280 NASDAQ Global MarketSM securities totaled 8,089,327,605 shares compared with 7,823,088,546 shares in 2,275 Global Market issues reported for the prior settlement date of May 29, 2015. The Mid-June short interest represents 5.02 days average daily NASDAQ Global Market share volume for the reporting period, compared with 5.05 days for the prior reporting period.
jlne.ws/1TOAauO

NYSE MKT Issues Short Interest Report
Mondovisione
NYSE MKT (formerly known as NYSE Amex) today reported short interest as of the close of business on the settlement date of June 15, 2015.
jlne.ws/1TOAbPt

NYSE And NYSE Arca Issues Short Interest Report
Mondovisione
The NYSE and NYSE Arca, today reported short interest as of the close of business on the settlement date of June 15, 2015.
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Osaka Exchange: Monthly Trading Summary Of Weekly Options
Mondovisione
Osaka Exchange, Inc. (hereinafter “OSE”) announces monthly trading summary (Preliminary Estimates) of Nikkei 225 Weekly Options which was introduced on May 25, 2015.
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London Stock Exchange feeling cheerful
Financial Times
The exchange group (which likes to be called LSEG these days, rather than the LSE) seems to be feeling upbeat, and with good reasons, but there are some weak spots.
In a trading update ahead of the interim results due in August, the company says its tie-up with Russell, an index provider it bought last year, is “making good progress.” Through the combined FTSE Russell business, ETF assets under management are on the up at a fine clip.
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The Exchange’s Response to the SFC’s Statement in Relation to the Draft Proposal on Weighted Voting Rights
HKEx
The Stock Exchange of Hong Kong Limited (the Exchange), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited, has noted the comments of the Securities and Futures Commission (SFC) in relation to the Draft Proposal on Weighted Voting Rights.
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Clearing & Settlement

Finextra: Finextra PR: ICE Clear Singapore announces first three clearing members
Press Release via Finextra
Intercontinental Exchange (NYSE: ICE), the leading global network of exchanges and clearing houses, today announced that KGI Ong Capital Pte. Ltd., Phillip Futures Pte Ltd and UOB Bullion and Futures Limited (UOBBF) have been approved as the first three clearing members for ICE Clear Singapore.
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Global data harmonisation of derivatives reporting gains ground
FTSE Global Markets
The US Depositary Trust and Clearing Corporation (DTCC) in mid-June issued its recommendations that the industry focus on harmonising roughly 30 credit derivatives fields across trade repositories; fields deemed critical to financial stability and systemic risk analysis. The pillar of the US post trade industry has submitted its proposals on global data harmonisation to the Committee on Payments and Market Infrastructures (CPMI) at IOSCO. The move is the latest in a series of initiatives with the goal of updating, improving and harmonising the reporting of derivatives trades across the globe.
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LBMA to start reporting OTC gold trade soon; exchange model seen as costly
Reuters
The London Bullion Market Association (LBMA) could soon take steps to report trades of the over-the-counter gold market, but the prospect of higher costs makes an exchange-traded model unattractive to participants for now, its chief executive said.
The LBMA had commissioned consultancy EY, formerly known as Ernst & Young, to review the London gold market and recommend further developments including the possibility of creating an exchange for gold trading in the city.
jlne.ws/1KexTpV

Russian, Chinese central securities depositories sign MoU
LeapRate
Russia’s National Settlement Depository (NSD) and China Central Depository and Clearing Co., Ltd. (CCDC) have agreed to cooperate in the sphere of depository and settlement operations.
jlne.ws/1RyN8Jc

Why OTC is back in vogue
FTSE Global Markets
In the world of fashion they say trends from years ago always come back. Well, the same is true in the not quite so glamorous market of over the counter (OTC) derivatives. Seven years after the crisis, the same contracts once more vilified than a Supermodel’s waist size are once again the talk of the street – that’s Wall Street not the high street. A recent study by the Bank of International Settlements (BIS) shows that market value for OTC derivatives increased from $17trn to $21trn between June and December last year – their highest level in three years. What’s driving this renewed interest and who will reap the rewards?
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Derivatives clearing diverts capital from long-term investing
IPE
Mandating central clearing of derivatives trades would only serve to increase profits for clearinghouses and could increase risk, PensionsEurope has warned.
In a discussion paper on the Capital Markets Union (CMU), published to coincide with the industry group’s annual conference in Brussels, the association warned that a more coherent capital market could be undermined by regulatory requirements diverting funds away from investment opportunities.
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CME Group Clearing House Notices
CME Group
UPDATED Credit Event Advisory – Auction Results for Sabine Oil & Gas Corporation Credit Event 24 Jun 2015; CME Clearing Notice: Week of Monday, June 22, 2015; EREP Report Id and File Package Updates – July 11, 2015
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Hedge Funds & Managed Futures

How TransUnion was milked by its private-equity owners
By JOE CAHILL, Crain’s Chicago Business
With so many traditional businesses succumbing to “disruption,” it’s nice to see an old standby chugging along in changing times. TransUnion’s planned public sale of $610 million in stock confirms that the private-equity business model works as well today as it did 30 years ago—for its investors, at least.
jlne.ws/1RyHSVT

Here’s What Happens to Your Stock Market After Suffering a Trouncing Like Greece; If history is any guide, Greek stock investors will likely have a long wait to make their money back
by Lu Wang, Bloomberg
Based on the handful of national stock market calamities that bear a resemblance to Greece over the last century, the prognosis for recovery isn’t encouraging.
jlne.ws/1KbZXbC

America’s New Bond Underwriters Have Arrived in Search of Alpha
by Lisa Abramowicz, Bloomberg
The business of underwriting bonds is being turned on its head in the U.S.
jlne.ws/1fEC8y7

Buy TIPS Amid Risk Inflation Will Outpace Fed Target, Pimco Says
by Kevin Buckland, Bloomberg
Investors should buy bonds that protect against inflation amid the risk consumer-price gains will exceed the Federal Reserve’s target, according to Pacific Investment Management Co.
jlne.ws/1FCPEae

Bond liquidity: special focus
Euromoney
Here, Euromoney delves into the reasons behind the current bond liquidity drought, warns of further potential implications and investigates what must be done to fix the present state of the markets.
jlne.ws/1GsOm3o

No Easy Fix For Sky High Swiss Franc, Says SNB
By JOHN REVILL, WSJ
Thomas Jordan, chairman of the SNB’s governing board. Bloomberg News
ZURICH – The head of the Swiss National Bank reiterated the franc remains “significantly overvalued,” even as he cautioned the central bank had no easy fix for the problems the strong currency was causing Switzerland.
jlne.ws/1QRwn0M

What $227 Million in Impressionist and Modern Art Sold at Auction Looks Like; See the highlights from the Impressionist and modern art sales at Christie’s and Sotheby’s this week
by James Tarmy, Bloomberg
It’s only six months into 2015, and collectors have spent—at minimum—$3.7 billion on Impressionist, modern, postwar, and contemporary art at auction.
jlne.ws/1JkSw3v

Hedge Fund Meet-Up to Swap Super Yachts for Canal Boats
By LAURENCE FLETCHER, WSJ
Two of the world’s biggest conferences for hedge fund managers have for years been held in two cities closely associated with the gambling industry – GAIM in Monaco and SALT in Las Vegas. But, for one of them at least, the negative connotations of sipping champagne in view of super yachts are proving too much. The GAIM hedge fund conference, which has for years been held just a short walk from the famous casino of Monte Carlo, is quitting the shores of the Mediterranean for the cooler climes of Northern Europe.
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Banks & Brokers

Citigroup Looks to Asia to Grow Wealth Management; The U.S. bank plans to double the number of wealth-management clients in Asia to one million
By JULIE STEINBERG, WSJ
Citigroup Inc. plans to double the number of wealth-management clients in Asia in the next five years to one million, as the bank seeks to capitalize on growing affluence in the region.
jlne.ws/1e59TaK

Citi manager thought Hayes a ‘wide boy’, London Libor trial hears
BY KIRSTIN RIDLEY, Reuters
Senior Citigroup manager Andrew Thursfield said former trader Tom Hayes, on trial on Libor interest-rate rigging charges, did not make a good impression on their first meeting in London in 2009, a court heard on Wednesday.
jlne.ws/1BOA2pC

Edward Jones reviews mutual fund fees charged to customers
BY JED HOROWITZ, Reuters
Edward Jones, a brokerage firm that booked 77 percent of its $6.3 billion of revenue last year from mutual fund and annuity sales, is reviewing its records to see if some fund customers were eligible for fee waivers they did not receive.
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Indexes & Products

Banks slash payments to index funds for Russell rebalance
BY JESSICA TOONKEL, Reuters
With the annual rebalance of the Russell stock indexes just a day away, brokerage firms are shaving the discounts they typically offer to big index funds on what is usually one of the biggest trading days of the year.
jlne.ws/1CvpdTY

Advisers Wary As Indexes Add China A-Shares
WSJ
Financial advisers largely welcome the addition of China A-shares to emerging-markets indexes and funds, but also appreciate that the shift is coming gradually. That’s because advisers remain a bit wary of A-shares, which are stocks of mainland China companies traded on the Shanghai or Shenzhen stock exchanges. They cite the market’s volatility and its current rich stock valuations.
jlne.ws/1RyPAiN

The Broadening Opportunity Set Of MSCI Emerging Markets
www.valuewalk.com
What are the implications of adding new markets ? China A-shares or Saudi Arabia ? to the widely followed MSCI Emerging Markets benchmark? And how does Causeway’s Emerging Markets strategy adapt to an ever-changing investable universe? We examine the effects of adding these “graduating” markets to the emerging markets opportunity set.
jlne.ws/1RyOtj7

Environmental and Socially Responsible Index Based on the S&P 500 Launched by S&P Dow Jones Indices
Press Release via MarketWatch
S&P Dow Jones Indices (S&P DJI), one of the world’s leading providers of financial market indices, announced today the launch of the S&P Environmental & Socially Responsible Indices which are designed to offer investors enhanced exposure to securities meeting sustainability investing criteria while maintaining a risk and performance profile similar to their respective underlying indices – the S&P 500® and the S&P Developed BMI Ex-U.S. & Korea LargeMidcap. The Indices have been licensed to Goldman Sachs Asset Management (GSAM), who worked collaboratively with S&P DJI to develop the sustainability criteria used in these Indices.
jlne.ws/1RyPKqq

Deutsche AWM Launches New Japan Nikkei 400 ETF
Benzinga
Deutsche Asset & Wealth Management has quickly made a name for itself with the release of innovative ETFs designed to take advantage of international markets. Its Deutsche X-trackers MSCI EAFE Hedged Equity ETF (DBX ETF Trust DBEF) is number two on the list of top year-to-date inflows with over $10.6 billion in new assets.
jlne.ws/1RyOKCx

IMAX Set To Join Russell Index
Press Release via MarketWatch
IMAX Corporation IMAX, -0.07% today announced that the Company is set to join the Russell Index at the conclusion of the Russell indexes annual reconstitution on June 26, according to the final list of additions and deletions posted June 19
jlne.ws/1RyPfg4

London Stock Exchange says FTSE and Russell indexes making good progress
Reuters
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Technology

Data Centers and Hidden Water Use; In California, computer farms are under scrutiny for their large and growing use of water for cooling
By DREW FITZGERALD, WSJ
Silicon Valley’s appetite for data is well known. Its thirst is less understood.
jlne.ws/1LwRt0V

EU Questions E-Commerce Firms as Part of Sector Probe; Investigation is looking at companies over possible abuses of market position
By TOM FAIRLESS, WSJ
BRUSSELS—Europe’s antitrust regulator has asked a broad swath of Internet commerce firms to hand over sensitive business information and copies of contracts as part of a sweeping investigation into possible abuses in the sector.
jlne.ws/1eIQqxD

Service aims to cut banks’ swaps data costs
Laura Noonan, FT
Three of the world’s 10 largest investment banks have signed up to a new data service that promises to halve the cost of compiling data on some of their international swap agreements.
jlne.ws/1IfEzCq

Environmental & Energy

Rare earths miner Molycorp files for Chapter 11 bankruptcy
Reuters
Molycorp Inc, the only U.S. supplier of rare earths, filed for Chapter 11 bankruptcy protection on Thursday along with its North American subsidiaries to restructure $1.7 billion of debt in its U.S. and Canadian operations.
jlne.ws/1HfVIgo

‘Green Bond’ Sales Struggle; Flat pace of new green bonds in the first part of 2015 perplexes the market’s supporters
By MIKE CHERNEY, WSJ
A flattening in “green bond” sales this year is highlighting the uncertainty facing the market for the debt, which is billed as financing projects that would mitigate climate change.
jlne.ws/1GJSP4b

Petrobras Tries to Halt Investor Suits as Bribery Probe Widens
by Linda Sandler, Patricia Hurtado, Sabrina Valle, Bloomberg
Petroleo Brasileiro SA is heading into a Manhattan courtroom Thursday to ask a judge to throw out investor lawsuits triggered by the multibillion-dollar bribery scandal that’s rocking Brazil’s economy and its political elite.
jlne.ws/1KewdfX

Troubled Delta System Is California’s Water Battleground
By ERICA GOODE, NY Times
Fighting over water is a tradition in California, but nowhere are the lines of dispute more sharply drawn than here in the Sacramento-San Joaquin Delta, a 720,000-acre network of islands and canals that is the hub of the state’s water system.
jlne.ws/1fEKHsB

Enforcement

U.S. regulator freezes Chinese executive’s assets over “suspicious” Qihoo trades; SEC says freezes assets of Luo Haijian, CEO of 4399 Co Ltd; Says made over $1 mln on options ahead of Qihoo buyout news; SEC says timing and size of the trades were “suspicious” (Adds comment from companies, context)
By Michelle Price and Deena YAO, Reuters
The U.S. securities regulator has obtained a court order to freeze the assets of a Chinese online gaming CEO over what it described as “suspicious” trading activity ahead of a $10 billion deal by U.S.-listed Qihoo 360 Technology Co Ltd.
jlne.ws/1NjJmTr

J.P. Morgan, SEC in Settlement Talks Over Product Steering
J.P. Morgan, other banks have faced more scrutiny on conflicts policies from OCC
By EMILY GLAZER, JULIE STEINBERG and ARUNA VISWANATHA, WSJ
J.P. Morgan Chase & Co. is in talks with the Securities and Exchange Commission to settle a probe into whether the bank inappropriately steered private-banking clients to its own investment products, people familiar with the matter said.
jlne.ws/1fEJIZs

US Department Of Justice: Alleged Mastermind Of Global Cybercrime Campaigns Extradited To The United States To Face Charges
Mondovisione
Earlier today, an indictment was unsealed in a Brooklyn, New York federal court charging Ercan Findikoglu, a Turkish citizen also known as “Segate,” with organizing three worldwide cyberattacks that inflicted $55 million in losses on the global financial system in a matter of hours. The defendant’s organization used sophisticated intrusion techniques to hack into the systems of global financial institutions, steal prepaid debit card data and eliminate withdrawal limits. The stolen card data was then disseminated worldwide and used in making fraudulent ATM withdrawals on a massive scale across the globe. The charges announced today follow charges previously brought against other members of the organization, including members of a New York City cell charged in May 2013 in connection with their roles in two of the attacks. The defendant is scheduled to be arraigned at 11 a.m. today before U.S. Magistrate Judge Lois Bloom at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
jlne.ws/1FCRGau

British Columbia Securities Commission Panel Issues Lifetime Ban Against Blog Writer For Fraud
Mondovisione
A British Columbia Securities Commission (BCSC) panel has fined and permanently banned Noshad Dowlati from the province’s capital markets for fraud and trading and advising without registration.
jlne.ws/1QRxPAg

CFTC Charges Illinois Resident Nick A. Wurl and His Company Ludiera Capital LLC with Fraud and Misappropriation in $9 Million Scheme
CFTC
Defendants allegedly defrauded at least 46 participants in an investment pool
Wurl was charged with wire fraud in a related criminal action
The U.S. Commodity Futures Trading Commission (CFTC) filed a federal enforcement action in the U.S. District Court for the Northern District of Illinois against Defendants Nick A. Wurl and his company Ludiera Capital LLC, both of Chicago, Illinois, charging them with fraud, misappropriation, and the issuance of false statements in connection with an investment pool they operated that traded commodity futures contracts and options on futures contracts. According to the CFTC Complaint, “In reality, the pool was little more than a shell company used to defraud pool participants and enrich Defendants at their expense.”
jlne.ws/1FCSiNo

Asia-Pacific

Cognitive dissonance and still rising margin positions in China
David Keohane, FTY
jlne.ws/1HjuROA

China moves to scrap long-held loan-to-deposit cap
Jennifer Hughes in Hong Kong and Gabriel Wildau in Shanghai, FT
The State Council, China’s cabinet, on Wednesday issued a draft proposal to ditch the country’s long-held loan-to-deposit ratio of 75 per cent. This follows April’s launch of a long-awaited deposit insurance system, a crucial step towards deregulating domestic interest rates and market-based capital allocation.
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ICBC Considers London Gold Fix as Shanghai Preps Yuan Price
Bloomberg
Industrial & Commercial Bank of China Ltd. became the latest Chinese bank to consider joining the auction process that sets gold prices in London as a yuan-based fix is on track to start in Shanghai this year.
ICBC is looking at either joining the London process directly or through its U.K.-based Standard Bank Plc unit, Zhou Ming, general manager of the precious metals department at ICBC, said at a conference Thursday in Shanghai. Bank of China Ltd. last week became the first Chinese bank among the 10 participants in the twice-daily auction.
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Meet the world’s biggest stock market bubble since the dot-com boom
The Washington Post
Shanghai Duolun Industry, a Chinese real estate company, managed to win over investors with a little re-branding in May. In the midst of a technology stock boom, the company decided to change its name to “P2P Financial Information Services Co.” The company didn’t actually develop a peer-to-peer lending business — it just bought the domain name www.p2p.com — but its shares jumped 10 percent anyway.
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Learn to trade China’s A-shares like a pro or your money back*
David Keohane, FT
Want to avoid market whiplash being driven by a whiplash president and crack the price-to-whatever ratio?
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Beijing may see silver lining in ballooning stock market
Josh Noble in Hong Kong, FT
As Chinese stocks have soared to their highest levels since the financial crisis, many analysts have pointed the finger towards Beijing, calling the year-long bull run a state-sanctioned rally.
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China plans to launch yuan gold fix by end of 2015
Reuters
China plans to launch a yuan-denominated gold fix by the end of 2015 via the Shanghai Gold Exchange (SGE), in a move aimed at giving the world’s biggest bullion producer and consumer more influence over pricing.
The first public confirmation made by an exchange official comes after Reuters cited sources in February on the proposal for the fix to be set through trading on the SGE, the world’s biggest physical bullion exchange.
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Hong Kong watchdog rejects move to change rule that saw loss of Alibaba IPO
Reuters
Hong Kong’s securities regulator has rejected draft proposals by the city’s stock exchange to change listing rules that saw the bourse lose Alibaba Group Holding’s record $25 billion initial public offering to New York last year.
The Securities and Futures Commission (SFC) said on Thursday its board had unanimously concluded it did not support the draft proposal to introduce so-called weighted voting rights for primary listings put forward last week by Hong Kong Exchanges and Clearing Ltd (HKEx).
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SIFMA President And CEO Kenneth E. Bentsen, Jr. Remarks For The ASIFMA/SIFMA China
Mondovisione
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Frontier Markets

Ghana to Introduce Professional Market System
By Pascal Kafu Abotsi – allafrica.com
Government’s commitment to engage the private sector, which is regarded as the engine of growth in its development effort has been given a boost with the launch of the Ghana Commodity Exchange (GCX) project.
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JP Morgan hires head of cash equity sales for MENA, Frontier
Reuters
JP Morgan has hired Shakir Iqbal as head of cash equity sales for the Middle East, North Africa and frontier markets, the U.S. bank said on Thursday.
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Frontier Markets: Ethiopia, the next frontier?
Nasdaq.com
With headlines like, “Ethiopia is hot, Nigeria is not, for investors,” one can have a tendency to get caught up in the excitement and get involved in something that may or may not be in one’s best interest.
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NSEL investors pin hopes on SEBI
The Hindu Business Line
SEBI’s intention to complete the merger of Forward Markets Commission (FMC) by September-end has given fresh hopes to the National Spot Exchange investors, who are fighting a prolonged legal battle to recover their investment of ?5,600 crore made on the exchange platform.
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Miscellaneous

Cargill applauds passage of Trade Promotion Authority bill
Cargill
Cargill applauds the passage of the Trade Promotion Authority (TPA) bill in the U.S. Congress. This bipartisan bill gives the executive branch the ability to negotiate trade agreements such as the Trans-Pacific Partnership, which are important for the future of the U.S. economy and for global food security.
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Crazy NY Post Wall Street Love/Anger Story
NY Post
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