John Lothian Newsletter: ICE Futures U.S. To Close New York Trading Floor; CFTC Panel To Weigh New Customer Fund Safeguards; CME Group Executives Launch Defense Of Libor

Jul 27, 2012

IntercontinentalExchange announces that their ICE Futures U.S. New York operation will go fully electronic by fall of this year.  The CFTC’s technology panel takes on the issue of customer fund safety in their latest meeting.  CME Group defends the LIBOR rate product, though not the manner in which it was manipulated.  If you missed it yesterday, you can pick up the interview with Jae-Joon Lim of Korea Exchange, discussing Kospi products and the prospects for yuan-denominated clearing.  Also, Doug Ashburn gets out his pen to cover the solid launch of GCF Repo Index Futures over at NYSE Liffe U.S.

First Read

HK regulator bears down on ‘algo’ traders
Jeremy Grant in Singapore – Financial Times
Hong Kong’s market watchdog has proposed tackling the rapid growth of automated trading by requiring that algorithms are tested at least annually and that brokers have systems to prevent erroneous trades being spewed into the market.
http://jlne.ws/Mb3fBj

**JK – Bears training camp just started.

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Finally, evidence that HFT makes markets stronger
Hugh Cumberland, Colt – FOW
Since 2010’s infamous “flash crash”, high frequency trading (HFT) has been under the continuous gaze of the financial services regulatory authorities. HFT’s ability to enable large numbers of high speed trades made it the prime suspect when the Dow Jones Industrial Average plunged 1,000 points in a matter of minutes, before quickly recovering. According to some market watchers, HFT increases volatility and damages the integrity of the markets.
http://jlne.ws/Mb3gVF

**JK – As the prior article states, regulators are finding ways to give room for HFT and algos, but also creating some safeguards.

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Study: High-Speed Trading Hurts Long-Term Investors
BY SCOTT PATTERSON – WSJ
Some of the most heavily traded U.S. stocks might also be among the most expensive to trade, costing investors as much as $2.5 billion a year, according to a New York trading and research firm. Stocks such as Bank of America Corp., Microsoft Corp., Cisco Systems Inc., and Ford Motor Co. are so popular with high-frequency trading firms that long-term investors often have trouble quickly buying and selling the stocks, according to a report by Pragma Securities LLC.
http://jlne.ws/Mb3fRG

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U.S. futures industry head seeks study of insurance fund
Alexandra Alper – Reuters
The chairman of a futures industry trade group said on Thursday that serious consideration should be given to the creation of an insurance fund to protect futures customers, after two major scandals shook confidence in the market.
http://jlne.ws/Mb3gVC

**JK – Arguments against insurance at this point are weak. This industry needs to restore confidence with as many instruments as possible.

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CFTC’s O’Malia calls for automated oversight of FCM customer funds
Automated Trading News
An urgent, technological solution is needed that addresses the problems stemming from allowing financial firms to self-report the status, balance and location of customer funds, Scott O’Malia of the Commodity Futures Trading Commission said.
http://jlne.ws/ORDmkp

**JK – One John Lothian skipped out of camp, flew to DC for the meeting and returned only to find chili pepper in his sleeping bag. Crazy Scouts.

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NYSE Euronext appoints Hiroshi Nomoto as Chief Representative of the Tokyo office
NYSE Euronext (NYX) today announced the appointment of Hiroshi Nomoto as its Chief Representative of the Tokyo office. Mr. Nomoto will be responsible for leading NYSE Euronext’s sales and client coverage teams for Japan and the wider Japanese financial community in the Asia-Pacific region.
http://jlne.ws/Mb3fRy

**JK – Not to be confused with Hideo Nomo, baseball pitcher, great wind up. (Very obscure baseball reference.)

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CBOE Begins Offering Process For Trading SPX Variance Strips Tomorrow
Beginning tomorrow, Friday, July 27, the Chicago Board Options Exchange (CBOE) will introduce a process for trading SPX Variance Strips (ticker: VSTRP).
http://jlne.ws/Mb3fRz

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The “as” syndrome
Philip McBride Johnson – FOW
There is not much to chuckle about in the financial markets these days. What with the exhausting European drama, stirrings in the housing market, Wall Street shenanigans, and a national political campaign long on commercials and short on ideas, we need a break. We need a good laugh, and one prospect confronts us daily. I refer, of course, to the business media headlines. Each day, a reporter (or editor) feels compelled to link market actions to external events. The connector word is usually “as,” as in “Markets Retreat as Iran Tensions Rise” or “Markets Rally as GE Reports Better-Than-Expected Earnings.” Chances are, there is a galactical chasm between the two events but the practice persists. It is time for the rest of us to chime in.
http://jlne.ws/Mb3fRB

**JK – London’s Olympic Games Soar, As Philip McBride Johnson Fixes Futures Industry.
***JM: If I had more than two thumbs, they’d all be up for this. This kind of pairing has mystified me for decades.

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INSIGHT – Banks bristle at breakup call from Sandy Weill
By Lauren Tara LaCapra, Rick Rothacker and David Henry – REUTERS
Sandy Weill has a lot of convincing to do. The former Citigroup Inc CEO, who was in many ways the architect of the “too big to fail” giant bank system, dropped a bombshell on Wall Street on Wednesday by proposing that universal banks should be broken up because they are too big and complex to manage.
http://jlne.ws/Mb3fRJ

**JK – Shouldn’t he be having a drink with Alan Greenspan somewhere?

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Wall Street & Washington: Fiscal Stability and Regulatory Update
Clarke Camper – Inside the Beltway
Good and bad news about the Federal fiscal cliff; other less-obvious government actions that could harm fiscal stability; regulatory developments at the SEC and CFTC.
http://jlne.ws/Mb3gVL

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Why Did It Take 20 Years to Catch Peregrine’s CEO?
BusinessWeek
On Saturday, May 26, Doug McClelland traveled to Peregrine Financial Group’s $18 million headquarters in Cedar Falls, Iowa, for the trading firm’s annual meeting. McClelland, who operates a small brokerage in Lincoln, Neb., had roughly $500,000 invested in Peregrine accounts, including funds from farmers who’d lost money when MF Global collapsed last October. He hoped Peregrine, with its reputation for stability and good management, would give his investments a measure of security.
http://jlne.ws/Mb3gVN

**JK – Quote of the Day from Doug McClelland – “It’s the nail in the coffin for this whole notion of self-regulation.”

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War and debt: Commodities trading houses cash in
By Emma Farge and Jessica Donati – Reuters
The Vitol oil trader dressed in heels picking her way through the armed rebels and pick-up trucks of post-war Tripoli had eyes only for the lucrative oil contracts up for grabs from Libya’s new revolutionary government. Her landmark deal for Vitol to export Libyan crude heralded the return of commodity houses to their swashbuckling roots, trading oil and grain with countries troubled by war and debt.
http://jlne.ws/Mb3gVO

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London Metal Exchange: All change, no change?
Andy Home – Reuters
There was, in the end, no last-minute, knife-edge drama. The vote by the shareholders of the London Metal Exchange (LME) to sell the 135-year old Exchange to Hong Kong Exchanges and Clearing (HKEx) was overwhelming. Only three shareholders, accounting for just 0.37 percent of the LME’s stock, voted against.
http://jlne.ws/Mb3gVR

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Whoever Started This Crisis Isn’t in the Room
By DAVID WEIDNER – WSJ
There is an adage about survival on Wall Street: When something goes wrong, blame the guy who’s not in the room. It is a funny little quip, right? But what if it really was the other guy who was responsible for Wall Street’s transgressions? Consider what some of the people blamed for Wall Street’s ills are saying.
http://jlne.ws/Mb3fRL

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Eris Exchange July 2012 Newsletter
Trade Ideas
ION Trading Gateway
Q1 2013 Clearing Mandate
Delta Strategy Timeline
Thomson Reuters Connectivity
http://jlne.ws/Mb3gVS

MarketsWiki.tv

Korea Exchange’s Jae-Joon Lim Discusses OTC Clearing and Kospi Contracts
MarketsWiki.tv
Jae-Joon Lim is director, business development at Korea Exchange, home of the most traded contract in the world, the Kospi futures and options. At the 2012 Emerging Manager Forum in London, Lim discussed the Kospi, as well as OTC clearing of Korean yuan denominated interest rate swaps, due to launch this fall. Interview by John Lothian News editor-in-chief Jim Kharouf.
http://jlne.ws/M8VpI9

JLN Interest Rates

GCF Repo Index Futures: Lucky, Good or Both?
By Douglas Ashburn

“I would rather be lucky than good.”
-Baseball Hall of Famer Lefty Gomez

Although the above quote is widely attributed to Mr. Gomez, every trader I ever met has used the phrase at least once. I can honestly say I uttered those words at least once a week during my 20 years on the trading floor. Timing is everything, but in many cases, when assessing the success of a fortuitously-timed decision, it is difficult to separate the lucky from the good.

On July 16, NYSE Liffe U.S. launched its futures on the DTCC GCF Repo Index. By all appearances, the contracts are off to a promising start, with average daily volume of over 3,000 contracts. Open interest continues to climb each day, surpassing the 10,000 mark earlier this week. The open interest number is significant, as it may demonstrate market participants’ interest in using the index as an alternative hedging mechanism for interest rate risk.

What a coincidence. As the GCF contracts began trading, a rate-rigging scandal was erupting surrounding LIBOR, arguably the most widely used interest rate benchmark on the planet. The allegations initially focused on Barclays Bank but, according to documents filed by regulators in the U.S. and U.K., other member banks participated in similar misconduct, which involved submitting rates to LIBOR’s rate-setting agency that were inconsistent with rates actually offered in the market. In the wake of the scandal, many in the industry have called for a new interest rate benchmark to replace LIBOR. The launch of the GCF Repo Index futures could not have come at a better time.

For the rest of the commentary, visit the JLN Interest Rates web site at http://jlne.ws/OmPU6E

MarketsWiki

MarketsWiki Page of the Day
Interactive Brokers Group, LLC
http://jlne.ws/P3xC71

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Lead Stories

ICE to close New York trading floor
FT.com
The ICE Futures US exchange plans to bring the curtain down on an era in New York commodities markets by ending open-outcry trading on its floor this year.
http://jlne.ws/Mb3hcg

CME Group Executives Launch Defense Of Libor
Dow Jones
Top officials at CME Group Inc. (CME) defended the validity of a key interest rate that has come under scrutiny following charges that bank traders sought to manipulate it.
http://jlne.ws/Mb3g89

Osaka Exchange Holder Jupiter Asset Says Tokyo Bid Price Too Low
Bloomberg
Jupiter Asset Management Ltd., the London-based fund company that owns 1.2 percent of Osaka Securities Exchange Co., won’t go along with its takeover unless Tokyo Stock Exchange Group Inc. raises the price.
http://jlne.ws/Mb3g8c

Barclays faces new probe, more U.S. Libor lawsuits
Reuters via Yahoo! News
Barclays Plc faces a new regulatory probe and more U.S. lawsuits, events that could make it harder for the British lender to repair the damage to its reputation caused by its role in the interest-rate rigging scandal rocking banks.
http://jlne.ws/Mb3hcq

SEC, Department of Justice investigating S&P
Associated Press via Yahoo! News
Regulators are investigating Standard & Poor’s over some of its ratings, according to a regulatory filing by the S&P’s parent company. The McGraw-Hill Companies Inc., which owns the S&P ratings agency, says the Department of Justice and the Securities and Exchange Commission are investigating whether the S&P broke federal laws when rating certain investments.
http://jlne.ws/Mb3hcr

UPDATE: Peregrine CEO Moves to Cancel Court Hearing
Jacob Bunge and Jack Nicas – Dow Jones
The chief executive of collapsed brokerage firm Peregrine Financial Group Inc. on Thursday moved to cancel a court hearing set for Friday in a move that legal experts said could foreshadow a plea or grand jury indictment.
http://jlne.ws/Mb3hsE

Spanish Banks Hit by Real-Estate Woes
BY CHRISTOPHER BJORK – WSJ
One large and two midsize Spanish banks reported sharply lower second-quarter profit Friday after setting aside billions of euros to cover real-estate-related losses amid a deepening economic slump.
http://jlne.ws/Mb3g8k

On-site supervisors a good start for ECB
By Brooke Masters – Financial Times
Banking union is the flavour of the month. Faced with investors who doubt the ability of some eurozone sovereigns to make good on their debts, the 17 members of the single currency have agreed to work together to channel aid directly to troubled lenders. But the deal is conditioned on the creation of a single banking supervisor, empowered to crack down on risky banks, no matter where they are located.
http://jlne.ws/Mb3goA

Regulatory

CFTC Requests Public Comment on an Application by LCH.Clearnet SA for Registration as a Derivatives Clearing Organization
Comments should be submitted on or before August 27, 2012.
http://jlne.ws/Mb3goC

Effective Date of Technical Amendments to NFA’s Forex Requirements
NFA recently made several minor amendments to its forex requirements – amending NFA Financial Requirements Section 14 and the interpretive notice entitled Forex Transactions to conform the requirements to applicable CFTC Regulations and amending the interpretive notice related to bulk assignment and liquidation to clarify the reporting responsibilities of assignor/transfer or FDMs and assignee/transferee FDMs. These amendments, which are described more fully below, do not impose any additional or new obligations on FDMs and are effective immediately.
http://jlne.ws/Mb3hsL

FINRA – ASC and FINRA Sign Cooperation Agreement
The Alberta Securities Commission (ASC) and the U.S. Financial Industry Regulatory Authority (FINRA) announced today that they have entered into a Memorandum of Understanding (MOU) to promote and support greater cooperation between the two regulators.
http://jlne.ws/Mb3hsN

Could SEC’s Plan to Track Trades Also Combat Financial Fraud?
Forbes
The United States Securities and Exchange Commission recently voted to establish a centralized database to track and monitor all trading activity across U.S. equity and options markets, prompted in large part by the difficulties encountered in pinpointing the cause of the “flash crash” on May 6, 2010 that temporarily wiped out nearly $1 trillion in shareholder value.
http://jlne.ws/Oex3MR

Geithner: SEC Must Do More on Regulating Money-Market Funds
Jessica Holzer – Dow Jones
U.S. Treasury Secretary Timothy Geithner Thursday said money-market funds remain a risk to the financial system and argued the Securities and Exchange Commission has to push harder to change money-fund rules.
http://jlne.ws/Mb3hsO

Developing Technology Solutions To Protect Segregated Customer Funds – Opening Statement Of CFTC Commissioner Scott O’Malia, Technology Advisory Committee
http://jlne.ws/Mb3hsQ

Olympic-Caliber Regulatory Regime – Statement Of CFTC Commissioner Bart Chilton Before the CFTC Technology Advisory Committee, Washington, DC
http://jlne.ws/Mb3hsR

Corcoran Commends Swift Action, Urges Commission and Industry to Begin Verification Efforts Immediately and Not Wait Until “Everything’s Perfect”
The U.S. Commodity Futures Trading Commission (CFTC) Technology Advisory Committee (TAC) invited R.J. O’Brien & Associates Chairman and Chief Executive Officer Gerald F. Corcoran, alongside other industry leaders, to serve as a panelist yesterday at its meeting.
http://www.rjobrien.com/docs/rjo_cftc_tac_release.pdf

Written Testimony Of U.S. Treasury Secretary Geithner Before The Senate Committee On Banking, Housing, And Urban Affairs On The Financial Stability Oversight Council Annual Report To Congress
http://jlne.ws/Mb3goM

Capitalisation of bank exposures to central counterparties
BIS
The Basel Committee issued today interim rules for the capitalisation of bank exposures to central counterparties (CCPs).
http://jlne.ws/Px4uc0

ESMA Announces Vacancies For Two Legal Officers
http://jlne.ws/Mb3hsS

ESMA Publishes Review Of Accounting Treatment Of Greek Sovereign Debt
http://jlne.ws/Mb3goR

European Commission Launches Consultation On A Future Framework For Investment Funds
http://jlne.ws/Mb3goS

U.S. Treasury Releases Model Intergovernmental Agreement For Implementing The Foreign Account Tax Compliance Act To Improve Offshore Tax Compliance And Reduce Burden
Agreement Developed With France, Germany, Italy, Spain And The United Kingdom Marks Important Milestone In Combatting Offshore Tax Evasion
http://jlne.ws/Mb3hsX

General Regulation of the AMF – Book III – Service providers (Last amended on 14 June 2012)
http://jlne.ws/cG5CVE

Program Trading Averaged 33.1 Percent of NYSE Volume during July 16-20
http://jlne.ws/Mb3gF7

Exchanges & Trading Facilities

CME Group Net Income Falls 17% as Rates Trading Drops
Matthew Leising – Bloomberg
CME Group Inc., the world’s largest futures market, said second-quarter profit fell 17 percent from a year earlier as interest rates near zero reduced trading in the company’s biggest contract.
http://jlne.ws/Mb3hJc

Deutsche Börse warns over growth
FT.com
Deutsche Börse warned that growth would be hard to come by in the rest of the year as the financial crisis sapped investors’ desire to trade.
http://jlne.ws/Mb3hJd

Deutsche Börse AG reports stable results in Q2/2012
Deutsche Börse AG published its figures for the second quarter of 2012 on Thursday. The Company’s sales revenue rose to E555.0 million. This corresponds to a 5 percent increase compared with the second quarter of 2011 (E528.6 million), now that 100 percent of Eurex’s sales revenue is attributable to Deutsche Börse following its full acquisition. Despite an overall weak financial market environment, the Company’s net revenue remained stable at E506.7 million. This is mainly the result of the considerable increase of trading volumes in index derivative products as well as the Eurex acquisition.
http://jlne.ws/Mb3gF9

BME Reports Second-Quater Net Profit Of E38.5 Million
BME reported second-quarter net profit of E38.5 million, up 5.7% on the same period in 2011 and 8.5% higher than the first quarter of 2012. Earnings for the first six months totalled E74 million, 5% lower than the same period in 2011, although this was an improvement on the 14.4% setback registered during the first quarter.
http://jlne.ws/Mb3gFc

BME Approves The Distribution Of A E33.3 Million Interim Dividend On September 7 – It Represents A Gross E0.40 Per Share
http://jlne.ws/Mb3gFf

LME Metals Seminar 2012
Join us and 500 delegates from all over the world for our flagship conference this October. This year we have put together an exciting panel of industry experts, commentators and analysts to debate and share their views along the theme: A global exchange for a global industry… more on this to follow. For the event’s full program, and to get an early-bird discount on tickets, visit:
http://jlne.ws/Mb3hJl

BATS CHI-X Europe Appoints Two To Board Of Directors – Adam Eades And John Woodman Join Board
BATS Chi-X Europe, the largest pan-European equities market operator by market share and notional value, today announced that Adam Eades and John Woodman have joined its board of directors1 as executive director and independent non-executive director, respectively.
http://jlne.ws/Mb3hJn

ICE Futures U.S. to Complete Transition to Electronic Trading
Press Release
IntercontinentalExchange, a leading operator of global regulated futures exchanges, clearing houses and over-the-counter (OTC) markets, today announced that all options on futures listed on ICE Futures U.S. will trade exclusively on the ICE electronic trading system beginning on trade date October 22, 2012.
http://jlne.ws/Maa7yL

ROFEX Launches Its Futures And Options Contract On TVPP
http://jlne.ws/Mb3gFo

CBSX Trader News Update CBSX to Support Self-Trade Prevention Feature – Correction – Rollout Begins August 6, 2012
http://jlne.ws/Mb3jAN

CBSX Trader News Update CBSX Announces Changes to Pricing
http://jlne.ws/Mb3hZM

[CBOE] Variance Strip Options – Systems Settings
http://jlne.ws/Mb3jAZ

CHX INFORMATION MEMORANDA: Reminder Related to Provision of Information during Market Regulation Investigative Process
http://jlne.ws/Mb3hZQ

Borsa Italiana Welcomes Primi Sui Motori To Aim Italia-Mercato Alternativo Del Capitale
http://jlne.ws/Mb3hZS

Hedge Funds & Managed Futures

Investors demand hedge funds show clean hands on Libor
Reuters via Yahoo! News
Investors are pushing some of the world’s biggest hedge funds to show that their traders played no part in the interest rate rigging scandal plaguing major banks. These hedge funds have responded with in-depth internal probes which they hope will assure investors that they did not collude with the banks, are completely clean and will not become embroiled in the affair
http://jlne.ws/Mb3jB3

Ex-Goldman trader in Asia plans credit hedge fund
Reuters via Yahoo! Finance
Former Goldman Sachs managing director in Hong Kong Christopher Mikosh is preparing to launch a credit hedge fund by the fourth quarter of this year or early 2013, sources said on Thursday, lifting prospects for the $127 billion industry in Asia.
http://jlne.ws/Mb3jB4

Mizuho Global Targets $1.3 Billion for Hedge Funds From Pensions
Bloomberg
Mizuho Global Alternative Investments Ltd. is aiming to raise 100 billion yen by April as pensions seek out hedge funds vetted by larger firms following the AIJ Investment Advisors Co. scandal.
http://jlne.ws/Mb3jRk

Paulson Loses $64 Million on NovaGold as Venture Scrapped
Bloomberg
John Paulson , who is seeking to reverse record declines in his $21 billion hedge fund, may have lost as much as $64 million on his funds’ stake in NovaGold Resources Inc. as the stock slumped after its partner in a gold venture said it won’t go ahead with the project.
http://jlne.ws/Mb3hZW

Church of England pension board puts faith in hedge funds
Reuters via Yahoo! News
The Church of England’s pension fund has given its blessing to some of the world’s biggest hedge fund managers, putting its faith in an industry much maligned for poor returns in recent years, its annual report showed.
http://jlne.ws/Mb3jRl

Northern Trust Named Best Offshore Fund Administrator in Second Annual Hedgeweek USA Awards
Business Wire via Yahoo! Finance
Northern Trust announced today that its hedge fund administration unit, Northern Trust Hedge Fund Services LLC, has been named Best Offshore Fund Administrator in the second annual Hedgeweek USA Awards.
http://jlne.ws/Mb3jRq

Individual Investors Get First Time Access To Hedge Fund Data
HedgeChatter.com, an online service that allows everyday investors to make investment decisions based on the latest social media data, announces launch by Atlanta, GA based Soktino Dynamics LLC.
http://jlne.ws/Mb3jRs

Thomson Reuters | Eikon to Provide Tropical Weather Insight and Analytics
Thomson Reuters has added tropical weather insight and analytics to its flagship information desktop, Thomson Reuters Eikon, to help financial markets professionals better understand the influence weather may have upon commodity prices.
http://jlne.ws/Mb3igc

RepRisk announces strategic alliance with FactSet to provide environmental, social and governance (ESG) risk data to their terminals
Leading provider of ESG risk business intelligence RepRisk AG is pleased to announce the signing of a distribution agreement with FactSet Research Systems, a world-recognized provider of financial data and analytical software for investment professionals.
http://jlne.ws/Mb3jRw

TraderPlanet Welcomes New Managing Editor While Reaching New Member Milestone
http://jlne.ws/Mb3igi

Banks & Brokers

BGC Partners Reports Second Quarter 2012 Financial Results
* Revenues as used to calculate distributable earnings were $465.1 million, compared with $364.8 million.
* Pre-tax distributable earnings were $55.9 million, compared with $62.4 million; pre-tax distributable earnings per fully diluted share were $0.20, compared with $0.25. were $465.1 million, compared with $364.8 million.
* Post-tax distributable earnings were $46.5 million, compared with $52.0 million; post-tax distributable earnings per fully diluted share were $0.17 compared with $0.21.
http://jlne.ws/Mb3igk

New York Fed did not condone misreporting of Libor: Geithner
Reuters via Yahoo! News
U.S. Treasury Secretary Timothy Geithner said on Thursday that the Federal Reserve Bank of New York did not encourage banks to misrepresent their borrowing costs when setting the key benchmark interest rate Libor when he was the head of the regional Fed bank in 2008.
http://jlne.ws/Mb3ign

Macquarie paid $1 billion in bonuses: UBS estimate
Market Watch
Macquarie Group Ltd. paid out 1 billion Australian dollars in bonuses last fiscal year despite profits at the investment bank slumping to an eight-year low of A$730 million, according to figures from UBS.
http://jlne.ws/Mb3igo

Barclays says sorry, profit beats forecasts
Market Watch
Barclays PLC on Friday reported underlying first-half profit that beat forecasts as it apologized for the recent interest-rate rigging scandal that cost it its top managers. Barclays posted first-half adjusted pretax profit of £4.23 billion in the first half, versus £3.73 billion in the year-ago period.
http://jlne.ws/Mb3igq

Bank of America Merrill Lynch Expands Commercial Card Capabilities
Business Wire via Yahoo! Finance
Bank of America Merrill Lynch, a leading provider of transaction services, today announced that its card solutions are now available in Argentina, the Czech Republic, Finland and Poland, as well as the Scandinavian countries of Denmark, Norway and Sweden.
http://jlne.ws/Mb3igs

Evercore Profit Rises 19% on Advisory Gains
By MICHAEL J. DE LA MERCED – NY Times
Evercore Partners said on Thursday that profit rose 19 percent in the second quarter, as its core advisory business posted strong results.
http://jlne.ws/Mb3k7O

Body by Jake
New York Post
He’s the man who’s beefing up gold-plated Goldman Sachs’ once-flabby p.r. muscles. Richard “Jake” Siewert — a former press secretary for President Bill Clinton in 2001 — is putting the once-guarded, 144-year-old partnership through its paces as he works to buff up the firm’s tattered image.
http://jlne.ws/LRKqBI

HSBC Mexico chief says fine concludes money-laundering probe
Reuters via Yahoo! News
MEXICO CITY – Mexico’s probe into the local operations of Europe’s biggest bank, HSBC Holdings Plc, over lax controls against money laundering has concluded following a fine imposed by regulators, the bank’s head in Mexico said on Thursday.
http://jlne.ws/Mb3iwJ

Nomura CEO Steps Down Over Insider-Trading Scandal
ATSUKO FUKASE, PHRED DVORAK AND ALISON TUDOR – WSJ
The management shake-up at Japan’s Nomura Holdings Inc. could upset the global ambitions of the country’s biggest investment bank, by removing the two architects in charge of implementing a bold international expansion.
http://jlne.ws/Mb3k7P

Nomura: Status Of Progress Of Improvement Measures Concerning The Securities And Exchange Surveillance Commission’s Recommendations And Additional Investigations
http://jlne.ws/Mb3iwO

Nomura Announces Management Changes
http://jlne.ws/Mb3iwP

Clearing & Settlement

CME Clearing – Performance Bonds / Margins
Performance Bond Requirements: Interest Rate, Equity Index and FX Outrights and Interest Rate Vol Scans- Effective Friday, July 27, 2012
http://jlne.ws/Mb3k7V

CME Group Clearing Advisory
Trade Register Improvement for CME’s USDRMB Futures Contract
http://jlne.ws/Mb3iwQ

CME Clearing – Performance Bonds / Margins
Performance Bond Requirements – Coal, Metals, and Natural Gas Inter-Commodity Spread Credits; Agriculture Intra-Commodity Spread Charges; Natural Gas Outrights – Effective Monday, July 30, 2012
http://jlne.ws/Mb3k7X

Indexes & Products

db x-trackers CSI300 Index ETF launched on Xetra
http://jlne.ws/Mb3k7Z

Enforcement

New Century Hedge Fund’s Onsa Sentenced for Ponzi Scheme
Bloomberg
Onsa pleaded guilty today in Brooklyn , New York, federal court to one count of securities fraud in December in connection with the scheme. Investors, primarily retirees, lost more than $3 million, according to the government.
http://jlne.ws/Mb3iwU

CFTC Suspends Registrations of Chicago Mercantile Exchange Traders Christopher Foufas, William Kerstein, and Maksim Baron for Unlawful S&P 500 Trading
The U.S. Commodity Futures Trading Commission (CFTC) today issued orders filing and settling charges against Christopher T. Foufas and Maksim Baron of Chicago, Ill., and William K. Kerstein of Riverwoods, Ill., all registered floor brokers in the Chicago Mercantile Exchange’s (CME) Standard & Poor’s 500 Stock Price Index futures contract (S&P 500) trading pit.
http://jlne.ws/OpAeOj

NFA issues $200,000 fine against New York forex firm Alpari US LLC
National Futures Association (NFA) has ordered Alpari US LLC, a futures commission merchant and forex dealer Member located in New York City, to pay a $200,000 fine as a result of an NFA Complaint filed in June 2012 and a settlement offer submitted by Alpari and two of the firm’s principals, Jermaine C. Harmon and Richard A. Lani.
http://jlne.ws/Mb3k87

ASIC freezes suspect funds held by unlicensed financial mentoring company
http://jlne.ws/Mb3iwV

New Zealand’s Financial Markets Authority welcomes National Finance Guilty Verdict
http://jlne.ws/Mb3kol

Environmental & Energy

Canada halfway to meeting emissions-reductions goal: sources
The Globe and Mail
The federal government is set to announce that it is almost half way to meeting its emissions-reductions target — a significant leap in progress over the past year.
http://jlne.ws/NxCCWJ

A Climate and Energy Stalemate
The New York Times
On the day he clinched the Democratic nomination for president in 2008, Barack Obama declared that future generations would look back and say, “This was the moment when the rise of the oceans began to slow and our planet began to heal.” He made addressing climate change, domestically and as part of a concerted international effort, a central tenet of his campaign platform and a top priority of his first year in office.
http://jlne.ws/OPk8f8

Rise of the Smart Grid
Time
Washington, America’s power center, recently experienced life without power—the kind that gets generated, not the kind that gets wielded. After a nasty storm knocked out the Beltway’s electricity for days during a heat wave, power brokers of the political type complained: Didn’t President Obama promise a smarter, more reliable grid?
http://jlne.ws/MJsfiU

EEX Simplifies Access To CO2 Auctions For Smaller Companies
http://jlne.ws/Mb3kom

Asia-Pacific

Singapore Exchange 4Q Profit May Drop Amid Equities Slump
Bloomberg
Singapore Exchange Ltd. , operator of Southeast Asia’s biggest stock market, may report a 13 percent drop in fourth-quarter profit today as it faces the biggest slump in equity trading in four years.
http://jlne.ws/Mb3kor

Hedge Fund Grandmaster Capital: ‘China’s Economic Goose Is Cooked’
Amy Or – Dow Jones
Hedge-fund manager Patrick Wolff isn’t only skeptical about China’s slowing economic growth, he expects the nation’s expansion to lag the developed world’s for “an indefinite period once the cyclical correction hits.”
http://jlne.ws/Mb3kos

HKEx Publishes Consultation Paper On Trading Halts Proposal
Hong Kong Exchanges and Clearing Limited (HKEx) published a consultation paper today (Friday) to seek views on its proposal to implement trading halts that would allow its listed companies to publish announcements with price sensitive information (PSI)
http://jlne.ws/Mb3iNe

SGX welcomes Ascendas Hospitality Trust to Mainboard
http://jlne.ws/Mb3kot

Shenzhen Stock Exchange Launches New Service Hotline
http://jlne.ws/Mb3iNf

Monetary Authority Of Singapore Reprimands Ng Chai Ching (Huang Zaiqing) For Contravention Of Paragraph 22(d) Of The Notice On Minimum Entry And Examination Requirements For Representatives Of Licensed Financial Advisers And Exempt Financial Advisers
http://jlne.ws/Mb3kov

Frontier Markets

MCX Weekly Market Report July 20, 2012 – July 26, 2012
http://jlne.ws/Mb3koz

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Past JLN Newsletters

ETF trading surges on European stock exchanges

ETF trading surges on European stock exchanges

First Read $26,851/$300,000 (9.0%) Denise Knabjian ++++ Hits & Takes JLN Staff The U.S. has surpassed the 25 million Covid-19 infections level, according to data reported Sunday by Johns Hopkins University. JPX has signed a memorandum of understanding, or MOU,...

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