John Lothian Newsletter: NYSE’s Head Of Technologies Business Resigns; Deutsche Boerse Signs Up Seven Banks for Interest-Rate Clearing; ASX Signs Confidentiality Agreement Mulling Link Buy

Jun 1, 2012

NYSE Euronext flags its second major executive departure in two days, as NYSE Technologies chief Stanley Young heads for the exit. Deutsche Boerse’s Eurex exchange signs up a full hand of banks to use its new EurexOTC platform that will debut later this year. Australia’s ASX signs nondisclosure agreements with Link Market Services, as it lines up a possible purchase of that company. The CFTC issues subpoenas to JPMorgan over their Whale Trade, in order to more closely examine it for impropriety.

First Read

NYSE’s Head Of Technologies Business Resigns
By Jacob Bunge Of DOW JONES NEWSWIRES
The head of NYSE Euronext Inc.‘s technology division resigned Thursday, marking the second high-level departure announced by the Big Board parent in as many days amid a realignment of its management. Stanley Young, chief executive of NYSE Technologies, is leaving the exchange group to join Bloomberg LP to head its enterprise products and solutions unit, according to a spokesman for Bloomberg.
http://jlne.ws/JRc1Dc

**JK – Stanley Young was one of the participants in our MarketsWiki Questions series last year. You can see what he said about build versus buy here.

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Bloomberg poaches NYSE data unit chief
By Philip Stafford in London and Andrew Edgecliffe-Johnson in New York – Financial Times
Bloomberg, the financial data and news group, has underscored its determination to become a significant player in the fast-growing data management business by hiring Stanley Young from NYSE Euronext, the transatlantic exchange operator.
http://jlne.ws/JRc3uU
**JK – I like my candidates sunny side up, but poached is okay once in awhile.

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Deutsche Boerse Signs Up Seven Banks for Interest-Rate Clearing
By Nandini Sukumar – Bloomberg
Deutsche Boerse AG plans to sign up seven of the largest dealers, including Deutsche Bank AG and JPMorgan Chase & Co., to its new clearing service for over-the- counter interest-rate swaps as it seeks to compete with LCH.Clearnet Group Ltd.
http://jlne.ws/JRc1Di
**JK – After the seven largest, isn’t it just a few community banks after that?

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Chicago trading firm Peak6 teams up with Penson Worldwide
Crain’s Chicago Business
(Crain’s) – Peak6 Investments L.P., a Chicago-based trading firm and retail brokerage, has agreed to create a new entity with Penson Worldwide Inc. to shore up the latter’s securities division.
http://jlne.ws/JRc1TN
**JK – Penson will now be featured in the new movie called “White Knight & Peak6 to the Rescue” with all licensing and toys at McDonalds.

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Eurex launch intensifies OTC clearing battle
William Mitting – FOW
The battle for dominance in clearing interest rate swaps in Europe heated up yesterday with the news that Eurex’s new platform EurexOTC Clear will be rolled out in the second half of the year. William Mitting looks at the challenge and opportunity for Eurex.
http://jlne.ws/JRc1Dl

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Philippe Metoudi to leave Clearstream
Philippe Metoudi, Member of the Executive Board of Clearstream International S.A. and the company’s Head of Client Relations Asia-Pacific, Middle East and Africa, has decided, for personal reasons and at his own request, to leave the company which has been mutually agreed to be effective 31 July 2012. Philippe Metoudi is departing after 20 years with Clearstream.
http://jlne.ws/JRc1Dp

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A night at the museum
Episode 6 of FragVision looks at how the sell-side is adapting to the new market conditions it faces.
http://jlne.ws/M6vDks

*** Steve Grob, Director of Group Strategy at Fidessa, takes you on a tour of the London Natural History Museum.  The message is very simple; Don’t Be a Dodo Bird!

**JK – I’ve watched this video twice now and have to say it’s one of the best produced videos I’ve seen in the industry. The question is, how’d he get the keys to the museum?

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ICE Futures Europe Announces New Daily and Monthly Volume Record in Brent Crude Options
PR Newswire
IntercontinentalExchange, a leading operator of global regulated futures exchanges, clearing houses and over-the-counter (OTC) markets, reported a new daily volume record in ICE Brent Crude options of 123,094 on May 31 and monthly volume surpassed 1 million contracts for the first time, with 1,090,080 traded in the month of May.
http://jlne.ws/JRc1TC

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Enhanced Order Management Functionality Launches in PrecISE Trade
The International Securities Exchange (ISE) today announced that order management functionality is now available in PrecISE Trade, ISE’s innovative, front-end execution system. PrecISE users are now able to route orders to other PrecISE users for execution. Additionally, PrecISE offers a new “parent/child” feature, or the ability to stage larger orders and divide them into smaller orders to better control order management and execution.
http://jlne.ws/JRc1TH

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PFGBEST joins Patsystems XConnect in Chicago
Patsystems, the trading and risk management solutions provider to the derivatives industry, is pleased to announce that PFGBEST has joined Patsystems XConnect in Chicago to offer the trading platform to its global client base.
http://jlne.ws/JRc1TO

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Dealer and investor talks over liquidity fears
By Nicole Bullock, Tom Braithwaite and Dan McCrum in New York – Financial Times
The largest Wall Street securities dealers held talks with institutional investors in Boston last week to discuss concerns over shrinking liquidity in the corporate bond market and the rise of electronic trading.
http://jlne.ws/JRc3Li

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Paraguay gets a futures market
Jude Webber – Financial Times
Argentina seems to have developed a new export line: futures markets know-how. After a deal earlier this year to set up a futures exchange in Uruguay (a joint venture between Argentina’s commodity derivatives exchange MATBa and the Uruguayan bourse), Argentina’s futures and options exchange Rofex is now helping Paraguay establish its first futures market.
http://jlne.ws/JRc3Ln

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CFTC Roundtable on Volcker Rule
Clarke Camper – Inside the Beltway
The CFTC hosted a public roundtable in Washington to discuss potential changes to the proposed Volcker Rule. The meeting – the 17th roundtable hosted by the CFTC on items related to Dodd-Frank – comes amidst growing pressure by some in Congress to tighten the Volcker Rule following JPMorgan Chase’s recently disclosed $2 billion dollar trading loss tied to credit-derivatives.
http://jlne.ws/JRc2a8

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Layoffs at Financial Firms More Than Double In May
Wall Street Journal Blogs
Financial firms were loose with the pink slips last month, ramping up the layoffs according to this dispatch from Kelly Eggers over at Fins.com:
http://jlne.ws/JRc2af

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Webinar Invitation: Introducing Complex Orders with Equity Leg and Expanded Risk Mitigation
Thursday, June 7, 2012 at 4:30pm ET / 3:30pm CT / 1:30pm PT
NYSE Euronext’s Amy Farnstrom and Todd Wilemon will talk about upcoming enhancements to NYSE U.S. Options. Listen as they explain Complex Orders with an Equity Leg and Expanded Risk Mitigation controls for both Orders and Quotes. Get the need to know details about:

* Complex Orders with Equity Leg
* Transaction Based Risk Mitigation for Orders
* Volume Based and Percentage Based Risk Mitigation for Quotes and Orders

To register for the webcast, please click here: http://jlne.ws/JRc3Lu
There will be an opportunity to ask questions throughout the presentation.
Please connect to the webcast five minutes before the presentation starts. If you are unable to attend, a replay of this event will be available on the NYSE Arca Options site and the NYSE Amex Options site.

JLN Interest Rates

New York Fed Quarterly Report Shows Student Loan Debt Continues to Grow
NEW YORK – In its latest Quarterly Report on Household Debt and Credit, the Federal Reserve Bank of New York today announced that student loan debt reported on consumer credit reports reached $904 billion in the first quarter of 2012, a $30 billion increase from the previous quarter. In addition, consumer deleveraging continued to advance as overall indebtedness declined to $11.44 trillion, about $100 billion (0.9 percent) less than in the fourth quarter of 2011. Since the peak in household debt in the third quarter of 2008, student loan debt has increased by $293 billion, while other forms of debt fell a combined $1.53 trillion.

See the full New York Fed quarterly report and related graphs here:
http://jlne.ws/LJWYG6

Two top Fed officials cool to more easing
International Business Times
The Federal Reserve should not move to ease monetary policy any further, despite dim prospects that unemployment will fall sharply any time soon, two top Fed officials said on Wednesday.
http://jlne.ws/JU5i6Q

Fed to consider Basel III rules next week
Reuters via Yahoo! News
The Federal Reserve is scheduled to vote next week on a highly anticipated proposal for implementing an international agreement on higher capital standards for banks, known as Basel III. The Fed announced the June 7 meeting, which will be open to the public, on its website on Wednesday. The U.S. central bank is expected to put the proposal out for public comment.
http://jlne.ws/LJZwU4

MarketsWiki

MarketsWiki Page of the Day
Ken Tropin
http://jlne.ws/L5LVvo

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MarketsWiki Recent Updates

People

Dan Hart; Harriet Hunnable; Stephen H. Hurst; John Edge; Thomas A. Kloet; Ken Tropin

Companies, Organizations and Groups

MICEX-RTS Group; BarclayHedge; Calypso; Barclay Group

Miscellaneous

Corn futures; Upcoming Events; Managed futures

Statistics

24,457,189 pages viewed, 6,881 articles, 141,476 edits
MarketsWiki Statistics

Lead Stories

ASX Signs Confidentiality Agreement Mulling Link Buy
RTTNews.com
Responding to a report in the Australian Financial Review, ASX Limited said Friday that it has signed a confidentiality agreement as a basis to obtain confidential information on Link Market Services and American Stock Transfer and Trust Co.
http://jlne.ws/JRc2am

CFTC subpoenas JPMorgan over trading loss: WSJ
Reuters via Yahoo! News
The enforcement division of the Commodity Futures Trading Commission (CFTC) is issuing subpoenas requesting emails and other internal JPMorgan documents in connection with the bank’s multi-billion dollar trading loss, the Wall Street Journal said, citing people close to the investigation.
http://jlne.ws/JRc2ah

Former FDIC Chairman Bair: Regulators Should Tighten Volcker Rule
Dow Jones Newswires
Regulators should push derivatives out of federally-backed banks and tighten the Volcker rule, former Federal Deposit Insurance Corp. Chairman Sheila Bair said Thursday. “Don’t let insured deposits fund that activity,” Bair said at a roundtable on the Volcker rule held by staff of the Commodity Futures Trading Commission.
http://jlne.ws/JRc2ag

Pressure Continues on Regulators to Approve Volcker Rule
By BEN PROTESS – NY Times
In the wake of JPMorgan’s multibillion-dollar trading loss, regulators are under pressure to beef up the proposed Volcker Rule. On Thursday, the Commodity Futures Trading Commission held a public roundtable to solicit ideas from banks, academics and other experts on the contentious rule, which seeks to ban banks from making risky bets with their own money. The trading commission is one of five regulatory agencies writing the rule, borne from the Dodd-Frank financial regulatory law.
http://jlne.ws/JRc41L

MF Global UK in fresh dispute with US
By Philip Stafford – Financial Times
MF Global UK’s administrator said on Thursday it was disputing the amount owed to its US counterparts after the closing out of the positions that brought down the US futures broker seven months ago.
http://jlne.ws/JRc41M

Europe must prepare an emergency plan
By Robert Zoellick – Financial Times
Eurozone leaders may be nearing a “break the glass” moment: when one smashes the pane protecting the emergency fire alarm. While those living in the eurozone building, especially those on the executive floors, will not want to hear an alarm, they had best read the instructions. Events in Greece could trigger financial fright in Spain, Italy, and across the eurozone, pushing Europe into a danger zone.
http://jlne.ws/JRc41P

Greeks shrug off Europe’s warnings that turmoil could get worse
Christian Science Monitor via Yahoo! News
On a recent spring weekday afternoon, Eleni Terizaki, a middle-aged housewife, sat with her friends on the balcony of her home in the working-class Athens neighborhood of Peristeri.
http://jlne.ws/JRc41S

Irish Voters Appear to Have Backed EU Treaty by Narrow Margin
By EAMONN QUINN And PAUL HANNON – WSJ
Irish voters have approved the European Union’s fiscal treaty, the deputy finance minister said Friday, ahead of the official tally in a referendum closely watched around Europe as a rare opportunity for ordinary people to weigh in on a pact that has far-reaching implications for how governments manage their finances.
http://jlne.ws/JRc41W

As Irish Votes Are Tallied, Tougher Rhetoric on Euro Crisis
New York Times
Results of the Irish referendum on the euro zone fiscal compact may strengthen the argument that tighter budget controls are needed to solve the crisis.
http://jlne.ws/JRc2qE

Spain reveals E100bn capital flight
CNN
Madrid was dealt a double blow on Thursday after it emerged that almost E100bn in capital had left the country in the first three months of the year and the head of the European Central Bank lambasted its handling of Bankia, the troubled Spanish lender.
http://jlne.ws/JRc420

Germany is no haven from eurozone crisis
By Satyajit Das – Financial Times
It’s no longer about the peripheral nations. It’s about Germany. Yet German risk is not reflected in record low Bund interest rates. Germany is now vulnerable, having left it too late to amputate the infected parts of the eurozone. Irrespective of the course of events, the country faces crippling costs.
http://jlne.ws/JRc2qI

Regulatory

JPMorgan not triggering major regulatory rethink
Reuters via Yahoo! News
Bank regulators are holding daily, high-level calls to try to understand how a seemingly low-risk unit at JPMorgan was able to amass a $2 billion trading loss, but there are no immediate plans to revamp how the nation’s largest banks are supervised, according to a source familiar with the matter.
http://jlne.ws/JRc2qK

Mutual Funds Push To Restrict Hedge Fund Ads
Dow Jones
The mutual fund industry wants the Securities and Exchange Commission to impose restrictions on advertising by hedge funds and private equity funds now that such private funds will be allowed to engage in mass marketing.
http://jlne.ws/JRc2qL

More of the same won’t end stupidity
By Richard Breeden – Financial Times
Several weeks after rumours surfaced of a “London whale” taking huge positions, JPMorgan Chase announced it had suffered a $2bn loss on hedging activity that its chief executive Jamie Dimon rightly called “sloppy” and “stupid”. Within days, the $2bn loss was rumoured to have grown much larger, although the bank has not disclosed details. The US Securities and Exchange Commission and, more oddly, the FBI are investigating the situation. Certainly the SEC has reason to check the bank’s disclosures, but hopefully neither losing money nor stupidity have become crimes.
http://jlne.ws/JRc2qS

NFA Rule Submission Letter
Retail Forex Transactions – Proposed Amendments to NFA Financial Requirements Section 13 Regarding Forex Dealer Member Reports
http://jlne.ws/JRc2qU

ASIC Connect searching and online business name registration unavailable Saturday 2 June to Monday 4 June
http://jlne.ws/9QReML

Maintaining market integrity in a changing environment
Keynote speech by Greg Medcraft, Chairman, Australian Securities and Investments Commission to the Stockbrokers Association of Australia 2012 Annual Conference.
http://jlne.ws/JRc4ik

CUSIP Global Services Says Widely Accepted Standards for Processing Data Key To Smooth Operation of Financial Markets
PR Newswire via Yahoo! Finance
CUSIP Global Services (CGS) today announced the publication of a new whitepaper which outlines the important role that standards for securities identifiers play in ensuring the smooth operation of markets around the world.
http://jlne.ws/JRc4im

Exchanges & Trading Facilities

Nasdaq To Launch BX Options Market June 29 Pending SEC Approval
By Jacob Bunge Of DOW JONES NEWSWIRES
Nasdaq OMX Group Inc. plans to launch its third U.S. stock-options market June 29, pending regulators’ approval, the exchange group told traders Thursday in a notice.
http://jlne.ws/JRc4io

Gulf bank raises stakes in Plus contest
By Simon Mundy – Financial Times
A bidding war has emerged over Plus Stock Exchange, after Gulf Merchant Bank of Dubai said it would seek to derail the sale of the UK’s ailing third-tier market to Icap, the FTSE 100 interdealer broker. GMB declined to disclose the terms of its offer on Thursday but said it was “substantially in excess of that announced by Icap”.
http://jlne.ws/JRc4iq

IntercontinentalExchange Announces Upcoming Launch of New LNG Cleared Swap on the Japan Korea Marker
PR Newswire
IntercontinentalExchange (NYSE: ICE), a leading operator of global regulated futures exchanges, clearing houses and over-the-counter (OTC) markets, today announced it will launch a new liquefied natural gas (LNG) cleared swap contract based on the Platts* daily assessment for the Japan/Korea Marker (JKM).
http://jlne.ws/JRc4is

Maple extends C$3.8 billion bid for Canada’s TMX Group
Reuters via Yahoo! News
The Canadian consortium of financial institutions bidding for the operator of the Toronto Stock Exchange extended its offer for an eighth time on Thursday and said it was confident it would complete the deal by its July 31 deadline because the process cannot drag on indefinitely.
http://jlne.ws/JRc4it

Maple and TMX Group Announce Extension of Offer to TMX Group Shareholders To July 31, 2012
Press Release
Maple Group Acquisition Corporation, a corporation whose investors comprise 13 of Canada’s leading financial institutions and pension funds, and TMX Group Inc. today announced the extension of Maple’s offer to acquire a minimum of 70% and a maximum of 80% of the shares of TMX Group to 5:00p.m. on Tuesday, July 31, 2012, unless further extended or withdrawn.
http://jlne.ws/JRc4iv

NYSE Euronext Announces Departure of Stanley Young
Press Release
http://jlne.ws/KO4hOL

NYSE Arca Options Fee Changes
Subject to the SEC notice of effectiveness, NYSE Arca Options is pleased to announce a competitive update to its rate schedule, effective June 1, 2012.
http://jlne.ws/KMVooV

CE Credit Management celebrates bond listing on NYSE Alternext
http://jlne.ws/JRc2Hj

NASDAQ OMX CEO Bob Greifeld Presents at the Sandler O’Neill + Partners Global Exchange and Brokerage Conference
http://jlne.ws/JRc4yM

NASDAQ OMX CFO Lee Shavel Presents at the 2012 Macquarie Financials Conference
http://jlne.ws/JRc5CR

NASDAQ OMX Corporate Solutions Unveils Streaming Media Player and Newly-Enhanced GlobeNewswire.com at NIRI Conference
http://jlne.ws/JRc4yO

LME Said to Get Bidders’ Assurances to Keep Trading Floor
http://jlne.ws/NnYArW

Hedge Funds & Managed Futures

UK Start-Up Readies Buy-Side Bond Trading Venue In The US
By Katy Burne Of DOW JONES NEWSWIRES
A fledgling European company backed by former bankers is looking to expand in the U.S. by launching an electronic trading platform for junk bonds, hoping to capitalize on the growing interest among large investors in trading with each other directly and cutting out banks as middlemen.
http://jlne.ws/LJZBHt

Hedging won’t save your portfolio or pension
CNN Money
Since the financial crisis, Wall Street and investors have been enamored with creating the perfect hedge to protect portfolios against another market crash.
http://jlne.ws/JRc4yQ

Fed to buy $45 billion of Treasuries in June, sell $43 billion
Reuters via Yahoo! Finance
The U.S. Federal Reserve will buy about $45 billion of Treasuries in 15 operations from June 4-29, and will sell about $43 billion of Treasuries in six operations from June 1-28, the New York Fed said on its website on Thursday.
http://jlne.ws/JRc4yR

Insight: Gains that funds made on bets by JPMorgan whale may be limited
Reuters via Yahoo! News
JPMorgan Chase & Co’s losing bets in credit derivatives were so huge that one of its traders was known as “the London whale” and the hedge funds that attacked him have often been portrayed as harpooners who made a killing. But the story, it turns out, is more complicated than that.
http://jlne.ws/JRc5D1

Large trade breaks ETF model
William Hutchings – Financial News
An unexpected systemic risk in exchange-traded funds has just been brought to light in a research note from credit ratings agency Moody’s, which says a recent trade by a large investor caused a breakdown in an ETF and left investors nursing losses.
http://jlne.ws/JRc5D6

Vanguard Reduces Fees–Again
Morningstar
Vanguard announced expense ratio decreases at 15 funds and share classes. The decreases happened at fixed-income, diversified-equity, and sector funds. Some of the firm’s exchange-traded funds also saw cuts.
http://jlne.ws/JRc4yZ

Hedge Fund Manager Reorganizes, Rebrands and Launches New Event-Driven Fund
PR Newswire via Yahoo! Finance
Kellner DiLeo & Company, LLC, a more than three decade-old hedge fund manager, has been reorganized and renamed Kellner Capital, LLC, and has launched a new event-driven investment fund.
http://jlne.ws/JRc4z1

Banks & Brokers

Jain Takes the Reins at Deutsche
By LAURA STEVENS – WSJ
Deutsche Bank AG is about to experience culture shock. Anshu Jain—born in India, educated in the U.S. and in recent years the London-based head of investment banking—will take the helm Friday at Germany’s largest bank as co-CEO alongside Jürgen Fitschen. Though the two men will share power, many Deutsche Bank insiders predict Mr. Jain will dominate—and move quickly to shake things up.
http://jlne.ws/JRc5D9

Merriman Capital Forms Strategic Alliance With Livevol to Expand Options and Equity Trading
Merriman Capital, Inc., a wholly owned subsidiary of Merriman Holdings, Inc., today announced a strategic alliance with Livevol Inc. to execute options and equity orders through its derivatives trading desk on behalf of Livevol’s customers.
http://jlne.ws/JRc5To

Morgan Stanley Advises Citigroup of Intention to Exercise Right to Purchase an Additional 14% of Morgan Stanley Smith Barney
Morgan Stanley has advised Citigroup Inc. that on June 1, 2012, it intends to give notice that it is exercising its right to purchase an additional 14 percent of Morgan Stanley Smith Barney Holdings LLC. Such notice will initiate a process of up to 90 days in length to determine the purchase price, as detailed by the terms of the MSSB joint venture.
http://jlne.ws/JRc4Pj

Instinet Adds Meredith Whitney Advisory Group as Research Provider
Instinet has announced that its Instinet, LLC subsidiary has entered a research marketing agreement with Meredith Whitney Advisory Group, LLC.
http://jlne.ws/JRc5Tq

Goldwyn joins Sucden Financial’s Board of Directors
Business Wire via Yahoo! Finance
Sucden Financial today announced that Jeremy Goldwyn has joined its board as a Non-Executive Director.
http://jlne.ws/JRc5Tt

State Street Appoints Head of Real Estate Fund Services for North America
Business Wire via Yahoo! Finance
State Street Corporation, one of the world’s leading providers of financial services to institutional investors, announced today that it has appointed Timothy Donovan to senior managing director and head of real estate fund services for North America.
http://jlne.ws/JRc5Tv

Deutsche to move Asia cap intro head to New York
Reuters via Yahoo! Finance
Deutsche Bank has promoted Marlin Naidoo, its hedge fund capital group head in the Asia-Pacific region, to co-head of capital introduction of its prime brokerage team for the Americas in New York.
http://jlne.ws/JRc5Tw

Goldman Prepares for Worst-Case Outcome in Europe
By SUSANNE CRAIG – NY Times
Goldman Sachs has intensified its efforts to prepare for an extreme deterioration in Europe, including a possible dissolution of the euro.
http://jlne.ws/JRc4Pn

Goldman’s Cohn On Acquisitions: Nothing On Horizon Looks Appealing
By Liz Moyer, Of DOW JONES NEWSWIRES
Goldman Sachs Group Inc.’s President and Chief Operating Officer Gary Cohn said the firm doesn’t see appealing acquisition opportunities on the horizon and continues to funnel resources to its less capital- intensive banking and asset management businesses.
http://jlne.ws/JRc5TC

Goldman’s Cohn Warns of Poaching Risks From Further Cuts
Bloomberg
Goldman Sachs Group Inc. (GS) President Gary Cohn said the firm is limited by competitive pressures in how much further it can cut compensation as its seeks to increase returns.
http://jlne.ws/JRc4Po

Grading Goldman’s Charm Offensive
New York Magazine
Time was, Goldman Sachs didn’t care about being hated. The world’s most powerful investment firm didn’t need to be popular in Peoria, it reasoned, since ordinary people didn’t do business with it anyway. That’s all changing now with an image-rehab campaign run by Goldman PR boss and former Geithner spokesman Jake Siewert, building on work that began under his predecessor Lucas van Praag.
http://jlne.ws/JRc69V

Citigroup Still Committing Mortgage Fraud as Late as 2012
Naked Capitalism
Bloomberg’s Bob Ivry has a great piece out on mortgage whistleblower Sherry Hunt, who just won a false claims suit against Citigroup. By 2006, the bank was buying mortgages from outside lenders with doctored tax forms, phony appraisals and missing signatures, she says.
http://jlne.ws/JRc69Y

A Midwestern Cow Girl Blew The Lid Off Of Citigroup’s Crappy Mortgage Factory
Business Insider
We knew this was happening before the crisis, but thanks to a Missouri-based senior manager at Citigroup, we know for sure that it’s still happening.
http://jlne.ws/JRc6a1

Morgan Stanley CEO: No apologies on Facebook IPO
CNN Money
The way Morgan Stanley’s CEO sees it, the Facebook IPO debacle has spawned a whole lot of Monday morning quarterbacks. And he doesn’t like it one bit.
http://jlne.ws/JRc6a3

Deutsche Bank: Ackerman Sees Successor To German Bank Facing Hard Times
RTTNews.com
Deutsche Bank said its outgoing head Josef Ackermann sees his successor from serious tasks.
http://jlne.ws/JRc4Pr

DealBook: Former Lehman C.F.O. Joins Broker
New York Times
Ian Lowitt, the last chief financial officer of Lehman Brothers, has joined the London financial firm Marex Spectron.
http://jlne.ws/JRc4Pt

Clearing & Settlement

Barclays Announces $1T Of Buyside Swaps Cleared
By Katy Burne Of DOW JONES NEWSWIRES
Barclays PLC said Thursday it has cleared $1 trillion of privately negotiated derivatives or “swaps” for its customers, a milestone that underscores how investors are increasingly pushing the sometimes complex trades through clearinghouses to protect against the potential fallout from Europe’s debt crisis and pending downgrades of certain financial institutions.
http://jlne.ws/JRc4Pw

Eurex Clearing and major dealers to cooperate in launch of OTC Interest Rate Swaps Clearing
Eurex Clearing, Europe’s leading clearinghouse, announced today that it cooperates with Barclays, BNP Paribas, Citibank, Credit Suisse, Deutsche Bank, J.P. Morgan and Morgan Stanley to support the launch of its new clearing service for OTC Interest Rate Swaps (IRS).
http://jlne.ws/KfBt5k

Risk & Return Brazil: BM&F Bovespa plans to integrate clearing houses
Nick Sawyer – Risk magazine
A plan by Brazilian exchange BM&F Bovespa to combine its four existing clearing houses into a single, integrated central counterparty (CCP) by 2014 will result in margin efficiencies of around 30–40%, according to the firm.
http://jlne.ws/JRc6aa

Comment: US trade settlement must be faster
By Marianne Brown, chief executive of Omgeo – Financial Times
Many may be surprised to know that the time it takes to process financial trades in a number of major markets around the world is still three business days or more – a lifetime compared to other everyday instant transactions, such as online shopping.
http://jlne.ws/JRc4PB

OTC clearing under fire as buy-side condemns cost hike
The Trade
Central clearing for OTC derivatives does not make for a safer market and may increase costs for end-investors, Barry Hadingham, head of derivatives and counterparty risk, Aviva Investors, has warned.
http://jlne.ws/N0C5M2

Spain faces extra risk to funding costs
By Mary Watkins in London – Financial Times
As Spain’s debt crisis deepens, investors are warily eyeing a trigger that could send yields on the country’s sovereign debt into bailout territory.
http://jlne.ws/JRc55P

CME Group Clearing Advisory
Green Exchange Product Migration to NYMEX
http://jlne.ws/JRc55R

CME Group Clearing Advisory
NYMEX Options Expiration Operational Procedures for the Trading Floor and Clearing Members (C1) Effective Friday, June 1, 2012
http://jlne.ws/JRc6qs

Indexes & Products

Quarterly review AEX-Index family
http://jlne.ws/JRc2Hn

Quarterly review of the BEL Indices
http://jlne.ws/JRc2Hr

Exchange Traded Concepts Delivers AlphaClone Alternative Alpha ETF to Market
http://jlne.ws/JRc55U

Technology

Misys Merges with Turaz to Create the Number One Provider of Financial Services Software
PR Newswire
Two market leaders combine to provide the largest and most comprehensive suite of capital markets and banking solutions in the industry Today Vista Equity Partners announced it has completed its acquisition of Misys.
http://jlne.ws/JRc6qw

Enforcement

Federal Court in Georgia Orders over $10 Million in Sanctions against Defendant Eldon A. Gresham in Forex Ponzi Scheme
The U.S. Commodity Futures Trading Commission (CFTC) obtained federal court summary judgment orders resolving its claims against defendant Eldon A. Gresham (aka Eldon A. Gresham, Jr.) doing business as The Gresham Company (Gresham) of Peachtree City, Ga., and relief defendants Werner H. Beiersdoerfer (Beiersdoefer) and his company, Interveston Wines, LLC (Interveston), both of Calera, Ala.
http://jlne.ws/JRc55Z

Prosecutors Try to Prove Gupta’s Link to Galleon Trades
By PETER LATTMAN – NY Times
Among the government’s hurdles in its insider trading case against Rajat K. Gupta is proving that he benefited from any illegal trades.
http://jlne.ws/JRc6qA

Environmental & Energy

Voluntary Carbon Offsetting Hits Three-Year High on US Action, Wind
Ecosystem Marketplace
The market for voluntary carbon offsetting hit a three-year high in 2011, transacting more than $576 million of offsets, second only to 2008’s record $776 million, according to the 6th “State of the Voluntary Carbon Markets” report, which also found more demand from buyers in the US and record sales of offsets from Asian wind farms and the coming-of-age of clean development projects in Africa.
http://jlne.ws/KgmRm1

**RKB — Among the bigger surprises: the United States, which emerged as the world’s largest single-country buyer of voluntary offsets despite the lack of impending regulations that had previously sparked demand from companies looking to get a leg up on the law.

THE REPORT
Developing Dimension: State of the Voluntary Carbon Markets 2012
Ecosystem Marketplace
http://jlne.ws/JQ18Bv

Shale of the century
The Economist
AMERICA’S “unconventional” gas boom continues to amaze. Between 2005 and 2010 the country’s shale-gas industry, which produces natural gas from shale rock by bombarding it with water and chemicals—a technique known as hydraulic fracturing, or “fracking”—grew by 45% a year. As a proportion of America’s overall gas production shale gas has increased from 4% in 2005 to 24% today. America produces more gas than it knows what to do with. Its storage facilities are rapidly filling, and its gas price (prices for gas, unlike oil, are set regionally) has collapsed. Last month it dipped below $2 per million British thermal units (mBtu): less than a sixth of the pre-boom price and too low for producers to break even.
http://jlne.ws/JVgcco

**RKB — A nice U.S. vs. Europe vs. China gas exporting comparison. Nothing so new here except reference to the IEA’s more confident supply data. The piece quotes IEA’s “expected tripling in the supply of unconventional gas between 2010 and 2035, leading to a slower price rise than would otherwise be expected. It expects this to boost global demand by more than 50%.”

Asia-Pacific

China border towns hope for boom, face backlash
ELAINE KURTENBACH | Associated Press
This remote southwestern Chinese city of about 140,000 nestled in a river valley on the Myanmar border amassed huge wealth over decades of trade and smuggling of drugs, timber and jade. Now, China’s main trading gateway to its long-isolated neighbor is waiting for a new boom that may never come.
http://jlne.ws/JRc565

China fund companies take on banks with new bond products
Reuters via Yahoo! News
Applications by Chinese fund companies to launch new fixed-income mutual funds have more than doubled this year compared with 2011 as the fund management industry moves to compete with wealth management products (WMPs) sold by commercial banks.
http://jlne.ws/JRc5mk

[TSE] Trading Overview and Preliminary Figures for May 2012
http://jlne.ws/JRc5ml

[TFX] Trading Volume in May 2012
http://jlne.ws/JRc5mn

Frontier Markets

Should Investors Tread Into New Frontiers?
U.S.News & World Report LP via Yahoo! News
If the idea of frontier markets is intimidating, keep in mind that China, Brazil, and India wore this label not all that long ago. Look at them now.
http://jlne.ws/JRc5mr

PMEX Holds Technical Training Workshops In Lahore And Islamabad
Pakistan Mercantile Exchange, in continuation of its educational drive, held a workshops in Lahore and Islamabad that concluded on 30th May 2012 for its Brokers and Investors. These workshops are part of a series of trainings that started earlier with special focus on educating investors who are interested in trading commodities as well as the brokers who assist people to trade on Pakistan Mercantile Exchange.
http://jlne.ws/JRc6GU

India Economy A ‘Gasping Elephant’
Forbes
Another emerging market slowing beyond expectations. In India’s case, government is largely to blame.
http://jlne.ws/JRc5mx

Thick as a BRIC – The Buzz
CNN Money
The so-called BRIC nations of Brazil, Russia, India and China don’t look like the growth drivers of the global economy anymore. The European debt quagmire is clearly having an impact on even the most robust of economies.
http://jlne.ws/JRc5mC

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