John Lothian Newsletter: ICE to Transition Cleared Energy Swaps to Futures; Singapore Exchange to set margin requirements; Fidessa expects tough trading to persist

Jul 31, 2012

IntercontinentalExchange says that the time has come to convert its OTC energy swaps into on-exchange futures contracts.  Singapore Exchange is ready to require clearinghouse-held margin for positions to guard against oversized failure.  Trading tech company Fidessa looks at the financial arena and sees tough times ahead in terms of further consolidation and closure.  In First Read, you’ll find fresh updates including a brand new Jobs page on MarketsWiki; pointers to videos shot in London; and a new MarketsWiki.tv video with Joe Mecane of NYSE Euronext, who talks about the company’s Retail Liquidity Program that launches tomorrow.

First Read

New Jobs Page in MarketsWiki
Today, MarketsWiki launched our newly updated and improved jobs page: http://www.marketswiki.com/mwiki/Job_Postings

The new page allows any company to more easily post job openings. We welcome any and all firms who have openings to utilize MarketsWiki and connect the right talent for the job. In addition, if any firm would like to use our video production services to advertise their firm or job opening, you can reach us at jobs@johnlothian.com.

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Videos
July was a strong month for videos on JLN and MarketsWiki, due largely to our London trip to IDX as well as the Emerging Managers Forum. Here’s a list of videos, in case you missed one. Several more are in the queue as well.

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NYSE Liquidity Program Goes Live
With the blessing of the Securities and Exchange Commission, NYSE Euronext will go live with its Retail Liquidity Program tomorrow.

The new program is designed to allow undisplayed orders that it hopes will attract individual investors. To create such a venue for stocks, the exchange has brought on retail liquidity providers that will hold and keep hidden, bids and offers for smaller investors with prices that are better than the market.

NYSE’s Joe Mecane says the new program is not the same as existing dark pools, which are internalized orders that are handled off exchange by brokers. The program is not without controversy and critics, who argue it will simply shift marketshare away from big market making firms and could potentially stretch market liquidity further, as more exchanges, (Nasdaq is already planning a similar initiative), initiate their own retail liquidity programs.

To hear more about the new program – see the MarketsWiki.tv video further down in this section.

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Rapid Ratings Teams with Commodity Customer Coalition to Increase FCM Transparency
Press release
Rapid Ratings International Inc. is pleased to make its Futures Universe of published ratings and rating trends available to the membership of the CCC on a complimentary basis for a period of three months, in order to help futures customers make informed decisions on selecting new Futures Commission Merchants (“FCMs”). RR will make its materials available by means of special website access for CCC members.
http://jlne.ws/NEz9po

**JK – The public information will be available to Commodity Customer Coalition members in the next several days. For more information about Rapid Ratings, see our video interview with James Gellert, chairman and CEO, as well as the firm’s Guest Commentary.

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Finance: London’s precarious position
By Patrick Jenkins and Brooke Masters – Financial Times
When Gary Gensler, the chairman of the US Commodity Futures Trading Commission, addressed Congress on June 20, he surprised even those who are used to his attack-dog style. Launching a blistering attack on the integrity of the UK financial services industry, he damned the “London loophole” that has been exploited by banks and complained that too often risks taken in British operations “come right back here, crashing to our shores”. The comments – widely seen at the time as a power grab by the CFTC – raised hackles across the banking industry and among UK regulators. Barely a month on, Mr Gensler’s criticisms look prescient.
http://jlne.ws/NS4vGu
**JK – British bankers taking an Olympic sized body blow.

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Cost of Deep Liquidity – Pragma Securities says HFT costs investors
Pragma Securities, an independent algorithmic trading boutique, today announced recommendations for market structure changes, which would reduce the amount investors lose in trading costs. The recommendations are based on recent Pragma research showing that when High Frequency Trading (HFT) market makers compete with directional traders, i.e., investors, to earn spreads and rebates by providing liquidity, investors are forced to cross the spread more often, which results in higher costs.
http://jlne.ws/NR8i70

**Also see the report – http://jlne.ws/T18OBc

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ICE Hires Scott Brusso for FX
JLN
ICE Futures US has hired Scott Brusso as director, foreign exchange sales. Scott comes to ICE after nearly 19 years in foreign exchange futures sales and marketing at the CME Group. Scott will be responsible for growing ICE Futures US foreign exchange futures business which includes the ICE US Dollar Index and over 60 currency pairs. Scott will be based in the ICE futures downtown Chicago office.

**Scott can be reached at scott.brusso@theice.com

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Fixnetix set to sign five brokers for chip
By Philip Stafford – Financial Times
Fixnetix, a UK trading technology company, is set to sign up to five top-tier brokers for its high-speed trading chip as new requirements to monitor trading risks begin to take effect. Hugh Hughes, chief executive, said the group has signed up two large investment banks in recent weeks to take the chip, which can take trading into nanoseconds by executing deals, and running compliance and risk checks through technology hardware rather than software
http://jlne.ws/NS4uSZ
**JK – A nanosecond is one billionth of a second. My little mind cannot even begin to fathom that speed.

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Fidessa expects tough trading to persist
Philip Stafford – Financial Times
Consolidation, restructuring and closures among brokers and investment firms sliced 7 percentage points from the growth rate at Fidessa, a UK trading technology company, in the first half.
http://jlne.ws/NS4vWR

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The Evolving Contours of Insider Trading
By PETER J. HENNING – NY Times
Insider trading has been a focus of the Justice Department and the Securities and Exchange Commission. But it is not defined in any federal statute, and two recent cases filed by the S.E.C. show how malleable the term “insider trading” can be.
http://jlne.ws/NS4uT1
**JK – The ins and outs of insider trading.

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Is prop trading dead?
Joshua Brown – The Christian Science Monitor
Traditional trading firms will not survive unless they evolve. Furthermore, the profession of trading could use a bit of de-romanticizing.
http://jlne.ws/NS4vGy

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The Achilles heel of America’s financial system
Gillian Tett – Financial Times
What is the weakest link in America’s financial system today? That is not a question many have asked recently. After all, US banks look pretty healthy these days, at least relative to the horrors of eurozone banks. And the unfolding Libor saga has dominated much of the political debate and regulatory attention.
http://jlne.ws/NS4uT2
**JK – Interesting and terrifying look at money market funds.

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Time for west to adjust to ‘new normal’
By Andrew Sentance – Financial Times
This is proving a disappointing recovery for the leading western economies. After a strong rebound in 2010, when the G7 economies grew on average by 3 per cent, growth in the three years 2011-13 is expected to average about half that rate.
http://jlne.ws/NS4vGB

MarketsWiki.tv

NYSE Euronext’s Joe Mecane Discusses Their New Retail Liquidity Program
MarketsWiki.tv
Joe Mecane is executive vice president and co-head of U.S. listing and cash execution at NYSE Euronext. He spoke with JLN senior editor Sarah Rudolph from the floor of the NYSE about the exchange’s new Retail Liquidity Program, which is set to launch on August 1, 2012.
The new program is designed to attract retail traders by offering them better price improvement than the National Best Bid and Offer (NBBO). Orders placed through the program would interact with non-displayed retail price improvement orders provided by retail liquidity providers.
http://jlne.ws/LZ2XMn

MarketsWiki

MarketsWiki Page of the Day
John F. Eckstein III
http://jlne.ws/OuijcM

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MarketsWiki Recent Updates

People

Joseph Mecane; Robert Luke; Matthew Zames; Pamela Sue Farquhar; Scott A. Brusso

Companies, Organizations and Groups

UBS Securities; AIG International; International Securities Exchange

Products

NYSE Retail Liquidity Program

Miscellaneous

Job Postings

Statistics

26,784,697 pages viewed, 7,008 articles, 145,455 edits
MarketsWiki Statistics

Lead Stories

ICE to Transition Cleared Energy Swaps to Futures
By Jacob Bunge and Katy Burne – Dow Jones
IntercontinentalExchange Inc. (ICE) said Monday that it planned to change many of its markets in over-the-counter energy derivatives to trade as futures contracts, hastening the evolution of a sector that was shaken by the 2008 financial crisis. The Atlanta-based exchange group in January 2013 plans to reconstitute its trading services for swap contracts linked to the price of crude oil, natural gas, electric power and other markets, according to an announcement from the company.
http://jlne.ws/MgVIRh

Singapore Exchange to set margin requirements
Jeremy Grant in Singapore – Financial Times
The Singapore Exchange is set to require traders to put up funds at its clearing house to reflect the daily risks of share dealing and minimise the fallout from a catastrophic trading failure. The move is a sign that exchanges in Asia are responding to pressure from global watchdogs to improve their ability to monitor risks taken by their members in the wake of the 2008 financial crisis.
http://jlne.ws/NS4xOv

Libor Manipulation Covered by U.K. Law, Fraud Prosecutors Say
Bloomberg
U.K. fraud prosecutors will investigate the manipulation of Libor and other interest rates after deciding that existing British criminal law covers the conduct involved.
http://jlne.ws/NS4xOA

UK seeks urgent Libor reform
Reuters via Yahoo! News
LONDON – Britain is seeking urgent reform of the key interest rate rigged by a number of banks, including Barclays , in a transatlantic scandal that is threatening to seriously damage London’s reputation as a financial center.
http://jlne.ws/NS4vWW

Trickle of Libor lawsuits from rate-fixing scandal likely to become deluge
Washington Post
Lawsuits are mounting against some of the world’s biggest banks over the ma­nipu­la­tion of the global interest rate known as Libor as smaller lenders, municipalities and investors take stock of losses tied to the widening scandal.
http://jlne.ws/NS4xOF

RBS Braces Itself for a Libor Deal
DANA CIMILLUCA AND SARA SCHAEFER MUÑOZ – WSJ
Four years ago, Stephen Hester was cast as the savior of Royal Bank of Scotland Group PLC as it was being bailed out by U.K. taxpayers. Now the 51-year-old chief executive may risk having his tenure cut short by the latest scandal to hit the state-owned lender.
http://jlne.ws/NS4xOH

Corzine Wasn’t Too Close with CFTC Chief, Review Finds
Bloomberg
They crossed paths at Goldman Sachs Group Inc. (GS), the U.S. Senate, New Jersey campaign events and Princeton University. One man once borrowed the other’s number in the New York Marathon. Still, Jon S. Corzine, the former chairman and chief executive officer of failed brokerage MF Global Holdings Ltd. , and Gary Gensler , chairman of the Commodity Futures Trading Commission, didn’t have a close relationship, an internal analysis by CFTC lawyers found.
http://jlne.ws/NS4xOK

Heat Rises on Central Banks
JON HILSENRATH And BRIAN BLACKSTONE – WSJ
The U.S. Federal Reserve and European Central Bank face critical tests this week amid heightened expectations that they are moving toward new actions to tackle fragility in the global economy.
http://jlne.ws/NS4y53

Regulatory

Regulators Target Swift Day-Trading Firm
SCOTT PATTERSON – WSJ
In the Romanian city of Cluj-Napoca, inside a garret up a narrow wooden staircase, four young men in T-shirts spend the day moving rapidly in and out of stocks, trying to ride their shifting momentum for profits. “It’s very stressful,” says one, dressed in a green T-shirt, blue shorts and Adidas sneakers. “The market is very hard to figure out.” The four traders are part of a world-wide network initially set up by a Toronto-owned firm called Swift Trade Inc.
http://jlne.ws/NS4vWZ

Boerse Stuttgart Welcomes Draft Law To Control High-Frequency Trading – Precise Definitions Needed For Different Investor Groups
http://jlne.ws/NS4y55

FINRA Marks Fifth Anniversary
The Financial Industry Regulatory Authority (FINRA) today marked its five-year anniversary since it was created in 2007 by the consolidation of NASD and the member regulation, enforcement and arbitration operations of the New York Stock Exchange.
http://jlne.ws/NS4y5a

EMIR – Information On The Deadline For Joint Draft Regulatory Technical Standards On Risk Mitigation Techniques For OTC Derivatives Contracts Not Cleared By A CCP
http://jlne.ws/NS4vX3

ESMA Publishes Updated List Of Registered Credit Rating Agencies
http://jlne.ws/NS4y5d

Ovum Calls For Urgent Action As Post-Trade Operations Fall Under Regulatory Scrutiny
http://jlne.ws/NS4vX6

CPSS-IOSCO Issue Consultative Report On The Recovery And Resolution Of Financial Market Infrastructures
http://jlne.ws/NS4vX7

[ASIC] Schedules of corporations fees
http://jlne.ws/OLPHWR

New financial requirements for issuers of over-the-counter derivatives
http://jlne.ws/NS4wdm

Exchanges & Trading Facilities

BM&FBOVESPA Posts Record 1,110,540 Equity Market Trades
BM&FBOVESPA reached an all-time record today in its equity markets. There were 1,110,540 trades in the BOVESPA segment (equities). The previous record was 1,092,368 on August 09, 2011.
http://jlne.ws/NS4wdo

NYSE EURONEXT AND NEXT JUMP TEAM UP FOR SECOND ANNUAL EAST COAST TECH RECRUITING EVENT: FALL 2012
50 Leading East Coast Tech Firms and 500 Top-tier Engineering Recruits Invited to Participate in Second Annual SA500 on the NYSE Trading Floor
http://jlne.ws/NS4ylx

ROSTRON PARRY CONGRATULATES LME ON SHAREHOLDER VOTE
Rostron Parry Ltd has offered its congratulations to the Board and shareholders of the London Metal Exchange for the emphatic vote in favour of the bid to take over the Exchange from the Hong Kong Exchange (HKEx). The vote took place at an Extraordinary General Meeting of the LME’s shareholders on Wednesday, 25th July. Rostron Parry is the LME’s long-term, retained PR agency and, recently, worked closely with the CEO and senior executives of the LME as communications adviser since the first bid overtures were made in September 2011. Liaising with the specialist press, national and international media, Rostron Parry focused on developing accurate press reporting and preparing for the final recommendation of the Board.

IntercontinentalExchange to Transition Cleared Energy Swaps to Futures in January 2013
Press Release
IntercontinentalExchange, a leading operator of global regulated futures exchanges, clearing houses and over-the-counter (OTC) markets, today announced that all cleared OTC products listed on ICE’s OTC energy market will be transitioned to futures products in January 2013. These products will continue be listed and traded on the ICE platform and cleared at ICE Clear Europe, and block trades will continue to be available subject to applicable requirements.
http://jlne.ws/NS4wds

MGEX Releases Apple Juice Concentrate Regulations, Manual and Warehouse Receipt
MGEX, a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO), announces the public availability of the Regulations, Manual and a sample Negotiable Warehouse Receipt for the new Apple Juice Concentrate (AJC) Futures and Options contract. The AJC contract launches on August 13, 2012.
http://jlne.ws/NS4wdv

[LSE] Three new issuers raise L275m on retail bond market in July
http://jlne.ws/NS4wdz

SIX Swiss Exchange: Internationalisation Of SLS
http://jlne.ws/NS4wdB

Report: adoption by ASX-listed companies of the ASX Corporate Governance Principles and Recommendations on diversity
http://jlne.ws/NS4wdE

Moscow Exchange’s Market Data And Index Values Are Now Available To Google Finance Users
http://jlne.ws/NS4ylD

Borsa Italiana Welcomes Compagnia Della Ruota To Aim Italia -Mercato Alternativo Del Capitale
http://jlne.ws/NS4wtW

AlgoSpan launches Borsa Italiana IDEM connectivity and market data
Borsa Italiana has accredited AlgoSpan’s low latency market access services for connectivity to the Italian Derivatives Exchange Market (IDEM).
http://jlne.ws/NS9RBF

Hedge Funds & Managed Futures

Private equity assets hit record $3tn
FT.com
The value of assets managed by the private equity industry globally continued to rise last year, hitting a record $3tn despite financial market turmoil and sluggish economic conditions.
http://jlne.ws/NS4wtX

Hedge Funds Add Wagers in Longest Streak Since 2009: Commodities
By Joe Richter – Bloomberg
Hedge funds raised commodity bets in the longest bullish streak in three years as speculation that policy makers will increase economic stimulus drove prices toward the biggest monthly rally since October.
http://jlne.ws/NS4wu0

DealBook: Tiger Management Helps Next Generation of Funds
New York Times
Julian Robertson, founder of the Tiger Management hedge fund, helped start several careers. Now those managers are helping others begin their own firms.
http://jlne.ws/NS4yC4

Big Banks Are Getting Tough With Hedge-Fund Clients
CNBC
Major banks face growing pressure to extract more money from, or even sever ties with, unprofitable hedge-fund clients as they cut costs in the face of tough trading conditions and try to refocus on the biggest managers.
http://jlne.ws/NS4yC9

Singapore’s GIC Boosts Cash Amid Europe Crisis, U.S. Slowdown
Bloomberg
Government of Singapore Investment Corp., manager of more than $100 billion of the city-state’s reserves, said it almost quadrupled its cash allocation and cut investments amid Europe’s debt crisis and slowing U.S. growth.
http://jlne.ws/NS4yCa

ECB on course to act strongly or disappoint mightily
Reuters via Yahoo! News
European Central Bank President Mario Draghi must back up his pledge to do what it takes to protect the euro when the bank’s policymakers meet on Thursday or else face deep disappointment from investors hungry for – and expecting – immediate action.
http://jlne.ws/NS4wu5

SunGard Identifies Ten Trends In Commodities Trading For 2012
http://jlne.ws/NS4wu6

Banks & Brokers

Analysis: Jefferies poised for promotion into metals’ top league
Reuters via Yahoo! News
U.S. investment bank Jefferies Group Inc is preparing to make its next big move into the global commodities markets, seeking membership on the London Metals Exchange and snapping up a team of free-agent floor traders from Natixis, according to sources familiar with the moves.
http://jlne.ws/NS4wu9

Biggest Danger For Libor Banks? Rival Firms With Firepower
Forbes
Here it goes. Lawsuits stemming from the Libor manipulation scandal are here, and it’s not looking good for banks under investigation.
http://jlne.ws/NS4wua

Death of Bob Diamond’s dream
CNN Money
Caught up in the Libor scandal, the star investment banker and American CEO of the British bank was forced to resign. His departure represents the end of an era for big banks.
http://jlne.ws/NS4yCh

HSBC CEO apologizes for earnings “shortcomings”
Los Angeles Times
HSBC Holdings Chief Executive Stuart Gulliver apologized for his company’s “shortcomings” in a statement released with the company’s half-year earnings on Monday.
http://jlne.ws/NS4wKr

Ex-UBS Officers ‘Lied and Cheated’ on Muni Bond Deals, U.S. Says
Bloomberg
Peter Ghavami, former co-head of UBS AG ’s municipal-derivatives group, and two former co-workers were accused by prosecutors of lying and stealing from U.S. cities and towns by conspiring to rig bids for investing proceeds of municipal bond sales.
http://jlne.ws/NS4wKx

JPMorgan Chase fails to end mortgage modification lawsuit
Reuters via Yahoo! News
A federal judge rejected JPMorgan Chase & Co’s bid to dismiss a lawsuit accusing it of misleading thousands of cash-strapped homeowners nationwide about modifying their mortgages.
http://jlne.ws/NS4ySx

Morgan Stanley rejiggers brokerage regions, cuts four top jobs
Reuters via Yahoo! News
Morgan Stanley has eliminated four regional manager jobs in a reorganization of its brokerage joint venture that trims the number of regions, the second time in eight months it has reduced its manager ranks.
http://jlne.ws/NS4ySy

LIBOR: The Wheatley Review
As announced on 2 July 2012, the Chancellor of the Exchequer has commissioned Martin Wheatley, managing director of the FSA and Chief Executive-designate of the Financial Conduct Authority, to undertake a review of the framework for the setting of LIBOR.
http://jlne.ws/NS4wKA

Debt crisis cuts Deutsche Bank profits in half
AFP via Yahoo! News
Deutsche Bank, Germany’s biggest lender, said Tuesday that its bottom-line profit was slashed nearly in half by the eurozone debt crisis in the second quarter.
http://jlne.ws/NS4ySD

UBS Second-Quarter Net Falls 58% on Investment-Banking Loss
Bloomberg
UBS AG , Switzerland ’s biggest bank, said second-quarter profit fell 58 percent, missing analysts’ estimates, as the investment banking unit posted a loss.
http://jlne.ws/NS4ySF

UBS CFO: ‘Appropriately Provisioned’ for Possible Libor Suits
Dow Jones
UBS AG said Tuesday it has put enough money aside for potential claims resulting from investigations into manipulation of the London interbank offered rate, or Libor.
http://jlne.ws/NS4ySJ

Deutsche Bank veteran named India chief executive
Reuters via Yahoo! Finance
Deutsche Bank AG has appointed veteran Ravneet Gill as the chief executive officer of its India operations and a member of its Asia Pacific executive committee, the bank said on Monday.
http://jlne.ws/NS4wKH

HSBC Puts Aside $2B For Legal Troubles, Still Faces Libor Risk
Forbes
HSBC reported earnings for the first half of 2012 Monday morning, and the headline figures looked decent with profit up 11% from a year earlier to $12.7 billion. Excluding $4.3 billion in profit from asset sales and a $2 billion boost tied to the valuation of its own debt, the bank earned just $10.4 billion, down 8.8% from the prior year.
http://jlne.ws/NS4ySM

Cantor Fitzgerald Launches Full Service Corporate Advisory Business and Expands Brokerage Division in Europe
Cantor Fitzgerald Europe (Cantor), a leading global financial services firm, today announced that it will launch a corporate advisory business and expand brokerage services in Europe with 17 key appointments. The team of highly experienced professionals, all of whom previously worked at Canaccord Genuity, will be led by Gordon Neilly , who joins as Head of Corporate Finance.
http://jlne.ws/NS4x0Z

Wealth Management Industry Not Sufficiently in Tune with the Needs of Young Investors, According to Aite Group Research
More than 1,000 US investors surveyed reveal convenience and online tools are key reasons for Gen-Xers and Gen-Yers to shift assets between financial institutions
http://jlne.ws/NS4ySN

UBS’s Second Quarter 2012 Results
http://jlne.ws/NS4z94

Morgan Stanley and National Equity Fund Expand Rebuilding Local Economies Fund to $125 Million
http://jlne.ws/NS4x1b

State Street Investment Analytics Announces Master Trusts Universe Results for Second Quarter 2012
Business Wire via Yahoo! Finance
State Street Corporation , one of the world’s leading providers of financial services to institutional investors, today announced that the median return of the State Street Universe of total plans lost 1.6 percent in the second quarter 2012.
http://jlne.ws/NS4z99

Clearing & Settlement

LCH.Clearnet appoints Martin Ryan as Group Head of Operations & Client Services
LCH.Clearnet Group Limited (LCH.Clearnet) has appointed Martin Ryan as Group Head of Operations & Client Services, reporting to Christophe Hemon, Group COO. Martin joins LCH.Clearnet from RBS where he held the position of Managing Director, Head of Markets Operations for 3 years. RBS Markets Operations supports a number of sales and trading businesses globally including Fixed Income, Currencies & Commodities (FICC), Corporate Risk Solutions, Institutional Coverage Research & Strategy and Global Structuring.
http://jlne.ws/QYV2k4

Deutsche Börse says client clearing remains focus
Tom Osborn – Financial News
Capitalising on the shift of the vast bulk of the $600 trillion over-the-counter derivatives market towards central clearing remains the primary focus of Deutsche Börse’s operations for the rest of 2012, the exchange’s chief financial officer said today.
http://jlne.ws/NS4z9e

Technology

Markit launches CVA & Capital solution
Automated Trader
Markit has launched Markit Analytics CVA & Capital, a Basel III-compliant platform which integrates the management of credit valuation adjustment (CVA) and internal model capital.
http://jlne.ws/NS4x1c

RTS Webinar: Quant & Technical Power Trading: Leveraging Cutting Edge Tools for Profit
Join us for an interactive webinar on August 1st where a panel of distinguished experts will discuss Quantitative and Technical trading. Our panel will offer views on trading opportunities and how to best optimize your strategies in today’s markets. We will also discuss newest trends, challenges and opportunities in quant and technical trading offering answers to pertinent questions that drive automated trading.
http://jlne.ws/NS4xhs

BGC Partners And Thesys Technologies Form Epsilon Networks To Create The Fastest High-speed Microwave Financial Information Network
Partnership will arm customers co-located within BGC’s data center with the fastest access to critical trading data, enabling informed, sophisticated trading decisions
http://jlne.ws/R3oZ2l

Enforcement

CFTC Charges California Resident Victor Yu and His Company, VFRS, LLC, with Multi-Million Dollar Forex Fraud and Failure to Register as a Commodity Trading Advisor
The U.S. Commodity Futures Trading Commission (CFTC) today announced that on July 27, 2012, The Honorable Yvonne Gonzalez Rogers of the U.S. District Court for the Northern District of California entered an emergency order freezing the assets of defendants Victor Yu (Yu) of San Jose, Calif., and his company, VFRS, LLC (VFRS), based in Alameda, Calif.
http://jlne.ws/NS4xhv

Federal Court in Idaho Orders Michael Justin Hoopes to Pay over $11.8 Million for Operating a Ponzi Scheme
The U.S. Commodity Futures Trading Commission (CFTC) obtained a federal court order requiring defendant Michael Justin Hoopes of Rexburg, Idaho, to pay more than $10.4 million in restitution and a civil monetary penalty of over $1.4 million for operating a Ponzi scheme that defrauded Idaho residents and others.
http://jlne.ws/NS4xhw

China-focused fund manager settles with U.S. SEC
By Sarah N. Lynch and Aruna Viswanatha – Reuters
A hedge fund manager known for his bullish bets on Chinese companies and two of his firms have agreed pay $1.1 million to settle allegations by U.S. securities regulators of “wide-ranging” misconduct including insider-trading and misleading investors.
http://jlne.ws/NS4zpy

SEC Charges N.Y.-Based Fund Manager and Others With Securities Law Violations Related to Chinese Reverse Merger Company
The Securities and Exchange Commission today charged New York-based investment manager Peter Siris and two of his firms with a host of securities law violations mostly related to his activities with a Chinese reverse merger company, China Yingxia International Inc.
http://jlne.ws/NS4zpC

SEC sues Bucks County adviser
Philly.com
The Securities and Exchange Commission filed a civil lawsuit against a Bucks County financial adviser who allegedly persuaded 70 clients to invest $30 million in an Illinois-based Ponzi scheme that defrauded at least 400 investors out of $105 million.
http://jlne.ws/NS4xhx

Ex-Citigroup Executive Stoker Was Fraud Key, Jury Is Told
Bloomberg
Brian Stoker, the former Citigroup Inc. executive on trial in a fraud involving collateralized debt obligations, was essential to the scheme, a U.S. Securities and Exchange Commission lawyer told jurors at the close of the case.
http://jlne.ws/NS4zpK

Goldman Sachs Investor’s Suit Against Gupta Dismissed
Bloomberg
A Goldman Sachs Group Inc. investor’s lawsuit seeking disgorgement of insider-trading profit from former board member Rajat Gupta was dismissed by a Manhattan federal judge.
http://jlne.ws/NS4zpP

UK’s Financial Services Authority Fines And Bans IFA Adrian Mark Mosley
http://jlne.ws/NS4xhC

ASIC bans Penrith Debt Genie
http://jlne.ws/NS4xhE

ASIC obtains compensation for investors in cold-calling scam
http://jlne.ws/NS4xhG

[ASIC] Former Hanlong mining executive pleads guilty to serial insider trading
http://jlne.ws/NS4xhI

Environmental & Energy

U.S. bets on producing oil with captured CO2: John Kemp
Reuters
The United States can extract billions of barrels of otherwise unrecoverable oil by injecting carbon dioxide (CO2) underground and also needs to bury CO2, produced by its reliance on coal for power and industry, to fight climate change.
http://jlne.ws/NEEQne
**RKB – An ambitious write-up of an ambitious concept. It’s worth the time. Among all the aspects of this technology to think about, how about this one: who will own the empty space between the rock formations that mark the CO2 injection spot?

China’s Energy Grab Is About Know-How, Not Resources
Bloomberg Businessweek
Chinese oil companies went on a buying spree this week. On Monday, Cnooc, the offshore component of China’s three-headed, state-owned oil apparatus, agreed to pay $15 billion cash for Canada’s Nexen (NXY). Not to be outdone, Cnooc’s state-owned cousin, Sinopec, quickly cut a deal to buy a 49 percent stake in Talisman Energy (TLM)‘s British unit for $1.5 billion, giving it access to North Sea oil and natural gas fields. Two days later, Royal Dutch Shell announced it had signed a handful of partnerships with Cnooc and CNPC, China’s largest oil and gas company, for offshore exploration projects ranging from the coast of China to West Africa.
http://jlne.ws/N7DNr2
**RKB — Good analysis of China’s shift from globe’s producer to growing consumer and now, large-scale global player.

Greyjing? Air pollution fouls Beijing’s name
Reuters
With its parks, centuries-old palaces, history and culture, Beijing should be one of the more pleasant capitals of the world. Instead, it’s considered among the worst to live in because of chronic air pollution.
http://jlne.ws/LZpR6c

Asia-Pacific

Nomura Faces Regulatory Penalties for Inside Information Leaks
Bloomberg
Nomura Holdings Inc. ’s domestic securities unit should be penalized after its employees leaked information about clients’ share sales, Japan ’s financial watchdog said.
http://jlne.ws/NS4xxX

Press Conference By Tadahiro Matsushita, Japan’s Minister For Financial Services – Manipulation Of LIBOR And Possible Manipulation of TIBOR – HSBC Money Laundering
http://jlne.ws/NS4zGc

SGX Consults Public On New Securities Margining Rules
http://jlne.ws/NS4zGd

SGX and SIAS bring investing to the heartlands
Singapore Exchange (“SGX”) and Securities Investors Association (Singapore) (“SIAS”) announced today they are signing a Memorandum of Understanding (“MOU”) to formalize their commitment over the next 3 years to bring investing to the heartlands.
http://jlne.ws/NS4zGi

Tokyo Grain Exchange: Maximum Rate For Additional Discharging Ports Charges
http://jlne.ws/NS4zGm

HKEx To Extend Coverage Of Its RMB Equity Trading Support Facility
http://jlne.ws/NS4xyb

HKEx Main Board And GEM Annual/Interim/Quarterly Reports 2011 On DVD
http://jlne.ws/NS4xye

Frontier Markets

Dubai Financial Market Announces Its Board Of Directors Meeting To Be Held On 4 August 2012
The Board of Directors’ of Dubai Financial Market PJSC will hold meeting on Saturday 4/8/2012 at ll:00 AM at Borse Dubai to discuss the financial performance of the company and approve the review report and condensed consolidated interim financial information for the six month period ended 30 June 2012. As well as the normal business activities and any business issues as arise.
http://jlne.ws/NS4zWD

Miscellaneous

The 25 Most Expensive Homes In The World Of Finance
Business Insider
From 57-acre Hampton estates to Georgian mansions in the middle of Manhattan, bankers and hedge funders have locked down some of the most valuable real estate in America.
http://jlne.ws/NS4zWE

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