John Lothian Newsletter: New Australia Stock Exchange Targets Asian Firms, Investors; U.S. Regulator Concedes Oversight Lapse in JPMorgan Loss; NYSE, Knight Criticize Nasdaq Compensation Plan Over Facebook

Jun 7, 2012

Australia’s soon-to-launch Asia Pacific Exchange hopes to build its business by bringing in Asian listings, rather than competing head-to-head from the start with the ASX.  The US Comptroller of the Currency says that missing JPMorgan’s wide-open risk throttle was, in hindsight, on the lax side of the regulatory fence. NYSE, Knight and others react to Nasdaq’s Facebook-failure compensation offer with loud raspberries, saying it’s a thinly-disguised bid to create a pricing advantage.

First Read

Sylvania Adventure Team

My apologies for not being around the last few days, but I was leading a group of 7 Boy Scouts and 4 adult Boy Scout leaders on a canoeing and fishing trip to the Sylvania Wilderness Area in the Ottawa National Forest in the Upper Peninsula of the State of Michigan.

On the trip up I made the mistake of promising the boys a go-cart outing (after seeing one near a gas station stop) if one of them could catch a fish longer than 20 inches.  They negotiated me down to 18 and then my Senior Patrol Leader caught a 20 inch Northern Pike for the very first catch.  And it was just a baby Northern!  Who knew there were such big fish there?

The trip was a success, a great time and one the boys and their dads were remember for a long time.

**** Who is the tall guy with the beard?

NYSE Euronext Statement on NASDAQ OMX Announcement
We have yet to receive full details of NASDAQ’s plan. However, we believe it would be wholly inconsistent with fair practice and an undue burden on competition to allow NASDAQ to use pricing and other machinations as a guise for fairly compensating those impacted by the Facebook IPO issues.
http://jlne.ws/KW8Bx3

++++

[Video] CNBC’S MARIA BARTIROMO SITS DOWN WITH NASDAQ OMX GROUP INC. CHIEF EXECUTIVE OFFICER
CNBC
This is Greifeld‘s first interview since the Facebook IPO.
http://jlne.ws/KW8AJB

++++

Statement of CFTC Chairman Gary Gensler Regarding House Appropriations Subcommittee’s Vote on the CFTC Budget
“The result of the House bill is to effectively put the interests of Wall Street ahead of those of the American public by significantly underfunding the agency Congress tasked to oversee derivatives – the same complex financial instruments that helped contribute to the most significant economic downturn since the Great Depression.
http://jlne.ws/M8MsZb

**** Time to reinvent the CFTC and the way they do things.  

++++

Full Steam Ahead to a New Beginning?
Mat Newman, Sungard – FOW
The rapid response to the financial crisis initiated by the G20 has led to a plethora of new regulations which sometimes seem like a never-ending series of sticky plasters trying to patch up a leaky hull. No sooner has one leak been fixed (think Stressed VaR or Incremental Risk Charge) than another springs forth (think CVA or Wrong-Way Risk). Inevitably in times of crisis and emergency this approach is needed to steady the ship, but shouldn’t we also be trying to steer a course to a safe harbour?
http://jlne.ws/KW8B05

++++

Henry Kaufman: Big Banks Are Not the Future
BY HENRY KAUFMAN – WSJ
The halcyon days of large financial conglomerates are over. This assertion may seem surprising in light of the growing power—and profitability—of the leading financial institutions in recent years. The trend toward oligopoly, already in full swing during the 1980s and ’90s, only accelerated during the financial crisis of 2008, as faltering firms were absorbed by a handful of burgeoning survivors.
http://jlne.ws/KW8BNI

***** Smaller banks can get into big trouble too.

++++

Turning Slumdogs Into Millionaires: One Hedge Fund Manager’s Quest
Halah Touryalai – Forbes
By investing in India’s untouchables, hedge fund manager Mohnish Pabrai is bringing a buy-low/sell-high discipline to charitable giving.
http://jlne.ws/KW8C42

++++

Managed Funds Association Announces Release of Hedge Fund Investor App
Business Wire via Yahoo! Finance
The Managed Funds Association is pleased to announce the release of its first application on the iTunes App Store, the Hedge Fund Investor Map, giving policy makers, media, and the general public a powerful tool to track the impact and imprint of hedge funds across communities throughout the U.S.
http://jlne.ws/KW8C45

++++

Corzine’s first sin was to bet on MF Global
By John Gapper – Financial Times
Whenever financial disaster strikes, it is tempting to try to identify the moment when it became inevitable. In the case of MF Global, was it when Jon Corzine, its former chief executive, started trading in European government bonds? Was it when MF Global first bent the rules on using client funds?
http://jlne.ws/KW8Ece

**** An excellent piece of commentary.

++++

How Wall Street Learned to Stop Worrying & Love the Bomb (well, maybe not love, but tolerate)
Leah McGrath Goodman – Absolute Return + Alpha
A full two years after a trader, during a quiet lunch hour, engaged the algorithm heard round the world, Wall Street is finally accepting the inevitable and necessary presence of high frequency traders. Parallel liquidity crises in both the stock and futures markets that culminated in the flash crash of May 6, 2010, were widely blamed on high frequency trading, yet most fund managers readily admit there’s no turning back from price swings that are now nearing the speed of light.
http://jlne.ws/KW8Cks

***** I hate hyperbole.

++++

News Media Protest U.S. Government Economic Data Restrictions
By Brian Faler – Bloomberg
News media advocates told Congress the U.S. Labor Department’s plan to require journalists to use government equipment for reporting jobless figures and other economic data would violate press freedom. “Requiring journalists to draft and publish stories using government-owned computers loaded with government-controlled software simply crosses a line the First Amendment clearly drew to separate the press from the government,” Dalglish said.
http://jlne.ws/KW8Ecn

***** Agreed.

++++

Fidessa beefs up technology and derivatives lineup
Automated Trader
Fidessa group plc said it had made two key appointments in financial technology and derivatives with the additions of Yuriy Shterk as senior product manager and Michael Wilkins as trader support specialist.
http://jlne.ws/KW8OAf

++++

2012 Risk Management Conference Europe: CBOE to Host First Ever RMC Europe, September 5 – 7, 2012
The Chicago Board Options Exchange (CBOE) is pleased to announce it will be hosting the first-ever CBOE Risk Management Conference in Europe, from Wednesday, September 5 through Friday, September 7, 2012, at The Ritz-Carlton Powerscourt, County Wicklow, Ireland. This highly-acclaimed conference, hosted annually in the U.S. by CBOE, is making its European debut this September. For 28 years, the CBOE RMC has been a leading educational forum where users of equity derivatives-specifically options and volatility products, discuss the latest strategies and tactics to manage risk exposure and enhance yields.
http://jlne.ws/KW8CkA

***** Interesting.

MarketsWiki.tv

Dan Hart of Cortland Fund Services Discusses Series Trusts
MarketsWiki.tv
As the push into managed futures mutual funds continues, we sat down with Dan Hart, managing director with Cortland Fund Services to talk about his firm’s entrance into the series trust space. Cortland is launching its first series trust called the Cortland Cottonwood Series Trust. Hart spoke with JLN Managed Futures editor Jim Kharouf about why Cortland has moved into the series trust arena, how it works and why institutions and CTAs are showing interest.
http://jlne.ws/Lrz1o8

JLN Options

Hedge Funds Shorts Match October With VIX Near 26
Nikolaj Gammeltoft and Cecile Vannucci, Bloomberg
The selloff that erased $1.78 trillion from American equity values has pushed the cost of options to the highest levels of 2012 and prompted hedge funds to add to short sales at the fastest rate since October.
http://jlne.ws/LsZAXY

** The bulls seem to be backing off. -JB

VIX Investors Head to the Vix-its
Tom Lauricella, The Wall Street Journal
While the VIX hasn’t been on a moon shot – a fact noted earlier today on MarketBeat – it has moved higher since the latest eruption of worries about Europe and the pace of global growth. On the surface, one might think that another Euro-land freak-out would have investors clamoring for exchange traded funds that track the VIX. Au contraire!
http://jlne.ws/M9h1Ol

Traders Dump Leveraged Volatility Bets
Brendan Conway, Barron’s
Tough day for traders who’ve been counting on their hedges. The most leveraged ones are among the worst performers in the entire market Wednesday.
http://jlne.ws/KiNp1E

** Maybe the bulls aren’t backing off. – JB

MarketsWiki

MarketsWiki Page of the Day
Mike Wilkins
http://jlne.ws/JMCk7B

++++

MarketsWiki Recent Updates

People

Alyce Andres-Frantz; Mike Wilkins

Companies, Organizations and Groups

Fidessa group plc

Miscellaneous

Wells Notice; Upcoming Events

Statistics

24,712,374 pages viewed, 6,888 articles, 141,699 edits
MarketsWiki Statistics

Lead Stories

New Australia Stock Exchange Targets Asian Firms, Investors
Wall Street Journal Blogs
Sydney may move a step closer to becoming an international financial hub next month with the launch of a new bourse aimed specifically at attracting Asian companies and capital into Australia.
http://jlne.ws/KW8CkK

DealBook: U.S. Regulator Concedes Oversight Lapse in JPMorgan Loss
New York Times
The front-line regulator charged with overseeing JPMorgan Chase conceded on Wednesday that his agency stumbled when it overlooked a multibillion-dollar trading loss that has damaged the bank’s image and stock price.
http://jlne.ws/KW8CB2

NYSE, Knight Criticize Nasdaq Compensation Plan Over Facebook
Dow Jones Newswires
NYSE Euronext and Knight Capital Group Inc. sharply criticized Nasdaq OMX Group Inc.’s proposed $40 million fund to compensate trading firms that lost money from botched trades during Facebook Inc.’s tumultuous market debut.
http://jlne.ws/KW8CB7

Furious Plus investors claim they were ‘misled’
Michelle Price – Financial News
Shareholders in Plus Markets, the embattled junior stock exchange, say they feel misled by the company’s management over its financial health. The comments come amid growing investor anger over the proposed sale of the stock exchange to interdealer broker Icap.
http://jlne.ws/KW8CRw

Regulator: JPMorgan had ‘inadequate’ risk controls
Associated Press via Yahoo! Finance
JPMorgan Chase had weak controls in place to contain risk in its investment division that suffered a $2 billion-plus trading loss, a key federal regulator said Wednesday.
http://jlne.ws/KW8CRx

Europe weighs up limited Spanish rescue
By Peter Spiegel in Brussels, Victor Mallet in Madrid and Ralph Atkins in Frankfurt – Financial Times
European officials are weighing up a bailout programme for Spain that would aid its fragile domestic banking sector while imposing only “very limited conditionality” on Madrid, a concession that could make a reluctant Spanish government more willing to accept international assistance.
http://jlne.ws/KW8CRH

ESM funds for Spanish banks should be considered: EU’s Barnier
Reuters via Yahoo! News
The European commissioner in charge of financial regulation, Michel Barnier, called on Wednesday for serious consideration of the use of the euro zone’s permanent rescue scheme, the European Stability Mechanism, to directly recapitalize banks in Spain.
http://jlne.ws/KW8EZL

New Risk to Europe’s Growth: Banks Cut Lending to Cities
By NOÉMIE BISSERBE – WSJ
For decades, when this medieval town wanted to borrow for a building project, officials just needed to walk into one of the many banks between city hall and the nearby 13th-century cathedral. This year, they have had to look farther afield. Unable to raise the money to keep city construction projects on track, Mayor Jean-Pierre Gorges has dispatched aides to Beijing in hopes of negotiating a loan from China Development Bank.
http://jlne.ws/KW8D8b

Regulatory

El-Erian Says Financial Regulatory Efforts Slowing Growth
Bloomberg
Global attempts to overhaul financial regulation are exacerbating a synchronized slowdown of the world economy, said Mohamed El-Erian, chief executive officer of Pacific Investment Management Co. in Newport Beach, California.
http://jlne.ws/KW8DoB

Former FDIC Chair to Lead Systemic Risk Council, Monitor Financial Regulation
CNW Group via Yahoo! Finance
The Systemic Risk Council, a private sector, volunteer group led by former Federal Deposit Insurance Corp. chair Sheila Bair , will convene this month to monitor and encourage regulatory reform of U.S. capital markets focused on systemic risk.
http://jlne.ws/KW8Fgk

SEC names two deputy chiefs of asset management unit
By Sarah N. Lynch – Reuters
Two enforcement attorneys at the U.S. Securities and Exchange Commission have been promoted to serve as the new deputy chiefs of the agency’s specialized asset management unit. The appointment of pair, Julie Riewe and Marshall Sprung, reflects a change in leadership structure following the departure last week of Robert Kaplan, who served as the co-chief of the unit with Bruce Karpati.
http://jlne.ws/KW8FwE

Mifid amendments lift barrier to brokers owning OTFs
Joe Rennison – Risk magazine
Brokers should be allowed to conduct so-called matched principal trades on new derivatives trading platforms created by the Markets in Financial Instruments Directive (Mifid), according to amendments filed by both the Council of the European Union and members of the European Parliament (MEPs) last month.
http://jlne.ws/KW8DF4

EU Commissioner proposes central banking regulation, says taxpayers must not fund bail-outs
AP
European officials proposed Wednesday a new system of financial regulations that aims to keep bank failures from costing taxpayers billions and bankrupting governments.
http://jlne.ws/KW8DFh

Risk Assessment At The U.S. Securities & Exchange Commission By Craig M. Lewis – Chief Economist And Director, Division Of Risk, Strategy, And Financial Innovation, U.S. Securities & Exchange Commission, Risk Minds USA Conference
http://jlne.ws/KW8DVA

Testimony Of Deputy U.S. Treasury Secretary Neal Wolin Before The Senate Committee On Banking, Housing, And Urban Affairs On Implementing Wall Street Reform: Enhancing Bank Supervision And Reducing Systemic Risk
http://jlne.ws/KW8FNj

SIFMA Supports Independent Regulatory Organization For Retail Investment Advisers – In Testimony Before House Committee
http://jlne.ws/KW8FNs

Hedge Fund Association Asks SEC For Clearer Rules on Vetting Investors, Supports Hedge Fund Advertising in Comment Letter
The Hedge Fund Association, an international organization that represents hedge funds, service providers and investors, said liberalized advertising and solicitations rules contained in the new Jumpstart Our Business Startups (JOBS) Act would help hedge funds raise assets and “encourage emerging managers to continue to enter the industry.” The HFA also asked the SEC for clearer rules to verify that potential investors are indeed accredited as a way to “add further stability to the industry.”
http://jlne.ws/KW8GRe

IOSCO Publishes Its Final Report On International Standards For Derivatives Market Intermediary Regulation
http://jlne.ws/KW8G3V

European Commission: New Crisis Management Measures To Avoid Future Bank Bail-Outs
http://jlne.ws/KW8Gkh

[ASIC] Former managing director of stock broking firm charged with insider trading
http://jlne.ws/KW8Gkk

Exchanges & Trading Facilities

NYSE Euronext Announces Trading Volumes for May 2012
Business Wire via Yahoo! Finance
NYSE Euronext today announced trading volumes for its global derivatives and cash equities exchanges for May 20121. Trading volumes in May reflected continuing improvement both year-over-year and month-over-month with heightened volatility in the global markets.
http://jlne.ws/KW8GAJ

BATS Global Markets Reports May Monthly Results With Record BYX Market Share
BATS Wins 11.7% U.S. Equities Market Share In May, Up From 10.8% One Year Ago – Record Spanish Market Share And Sixth Straight Month As Largest European Equities Market Operator
http://jlne.ws/KW8GAS

Chi-X Canada Reports Another Record Month
http://jlne.ws/KW8GB0

Nasdaq’s Facebook move ‘too limited’-Ex-SEC chief Pitt
Reuters via Yahoo! News
NEW YORK (Reuters) – Nasdaq OMX’s compensation for mishandling Facebook Inc’s public offering is “too limited”, though the exchange deserves praise for tackling the issue, former Securities and Exchange Commission chief Harvey Pitt said. The harm caused by Nasdaq’s failures easily exceed the $40 million the exchange has set aside, Pitt said on Wednesday, responding to a query by e-mail.
http://jlne.ws/KW8Jws

Vienna Stock Exchange Derivatives Market – Detailled Statistics May 2012
http://jlne.ws/KW8Hop

Vienna Stock Exchange Cash And Derivatives Market Monthly Statistics – All Segments, Indices – May 2012
http://jlne.ws/KW8Hou

ATHEX Monthly Statistical Bulletin – May 2012
Please click
http://jlne.ws/KW8JMZ

PLUS Markets Group PLC Annual Report, AGM And AIM Admission
http://jlne.ws/KW8JN2

PLUS Markets Group PLC Annual Financial Report
http://jlne.ws/KW8JN8

NYSE Euronext to Present at the Morgan Stanley Financials Conference
NYSE Euronext (NYX) today announced that Michael Geltzeiler, Group Executive Vice President and Chief Financial Officer of NYSE Euronext, will present at the Morgan Stanley Financials Conference at The New York Palace Hotel in New York City on Tuesday, June 12, 2012 at 2:25 PM (ET).
http://jlne.ws/KW8K3q

TMX Group CEO Tom Kloet to present Friday at the Sandler O’Neill Global Exchange and Brokerage Conference
http://jlne.ws/KW8HVm

[CBOE] Prearranged Trades
http://jlne.ws/KW8KjX

Notice of New CHX Clearing Participant – Apex Clearing Corporation
http://jlne.ws/KW8IbR

TMX Group Equity Financing Statistics – May 2012
http://jlne.ws/KW8Kkf

NASDAQ OMX Stockholm: Cloetta AB Moves To The Mid Cap Segment
http://jlne.ws/KW8KAB

Sartorius Moves Up to the TecDAX
http://jlne.ws/KW8KAG

No Trading On Wiener Boerse On June 7, 2012
http://jlne.ws/KW8KQY

BM&FBOVESPA Market Holiday – Corpus Christi Day
On Thursday (June, 7th) is public holiday in Brazil and there will be no trading on BM&FBOVESPA.
http://jlne.ws/KW8Isz

Hedge Funds & Managed Futures

Rate, Credit-Default Swaps Reduced by $200 Trillion, ISDA Says
By Matthew Leising – Bloomberg
More than $200 trillion in notional value of interest-rate and credit-default swaps have been eliminated from the over-the-counter derivatives market by canceling offsetting trades, the International Swaps & Derivatives Association said.
http://jlne.ws/KW8KR3

Hedge Funds Lose 2.9% in Worst Month Since September
Bloomberg
Hedge funds fell 2.9 percent in May, their worst month since September, as stocks slumped on concern Greece may exit the euro and the global economy is weakening.
http://jlne.ws/KW8KR7

Ackman, Loeb, other hedge funds lose in May
Reuters via Yahoo! News
May’s stock market rout dealt a blow to many on Wall Street including several big hedge fund stars whose bets on prominent U.S. companies looked badly timed.
http://jlne.ws/KW8IJ4

Paulson’s Gold Fund Down In May, But Sees Reversion
Dow Jones
Billionaire hedge-fund manager John Paulson’s gold fund declined by 12.7% last month as the price of gold dropped, bringing the fund’s losses so far this year to 22.5%, a person familiar with the situation said.
http://jlne.ws/KW8L7C

GreenOak Founders Revisit Morgan Stanley Property Roots
Bloomberg
Sonny Kalsi, Fred Schmidt and John Carrafiell, who ran Wall Street’s largest real estate investing group at Morgan Stanley (MS) until the market crashed, are seeking to raise $800 million to capitalize on the wreckage.
http://jlne.ws/KW8IZB

Vanguard CEO Bill McNabb: Investors Are Driving Change in the Global Fund Industry
Business Wire via Yahoo! Finance
Vanguard Chairman and CEO Bill McNabb outlined four broad trends that will shape the future of the global fund industry in a speech to financial advisors at the Morningstar Canada Investment Conference.
http://jlne.ws/KW8JfW

Sprott announces letter of intent for the acquisition of Flatiron Capital Management Partners
Sprott Inc. today announced the signing of a letter of intent reflecting an agreement in principle to acquire Flatiron Capital Management Partners, an alternative investment manager specializing in market-neutral strategies.
http://jlne.ws/KW8Lo6

Banks & Brokers

Morgan Stanley not selling commodities unit
By Brett Philbin – Dow Jones
Morgan Stanley has been approached by several private-equity firms interested in acquiring its commodities business, but has no interest in selling either a minority stake or the unit itself, according to a person familiar with the situation.
http://jlne.ws/KW8Mbz

Morgan Stanley may sell part of commods unit: CNBC
Reuters via Yahoo! News
Morgan Stanley is considering selling a stake in its vaunted commodities trading division, according to a news report that, if true, would reflect the bank’s most radical plan yet to ease mounting regulatory and credit pressures.
http://jlne.ws/KW8MbF

Deal or no deal, Morgan Stanley commodity trade shrinks
Reuters via Yahoo! News
The hard core of Morgan Stanley’s commodities trading empire, once the mightiest on Wall Street famed for its powerful union of paper and physical deals, is shrinking. Even as the bank is reported to be considering selling a stake in its billion-dollar commodities unit, its physical trading activity in key U.S. markets is contracting in the face of abruptly changing market dynamics as well as diminishing risk appetite due to growing regulations and capital constraints.
http://jlne.ws/KW8LEE

Goldman Sachs Expected to Name Fewer Partners
By SUSANNE CRAIG – NY Times
As Goldman Sachs shrinks, its elite inner circle will also be getting smaller. The Wall Street firm is expected to name fewer than 100 new partners this fall, one of the smallest classes in recent years, according to people briefed on the matter but not authorized to speak on the record.
http://jlne.ws/KW8Msi

Moody’s Takes Multiple Actions On German Banks’ Ratings – Most Outlooks Now Stable – Actions Follow Rating Reviews Announced On 15 February 2012
http://jlne.ws/KW8MIB

Moody’s Downgrades Austrian Banks – Ratings Carry Stable Or Negative Outlooks – Actions Conclude Rating Reviews Initiated Or Extended On 15 February 2012
http://jlne.ws/KW8MIJ

Extra E10bn agreed to help Dexia
By Scheherazade Daneshkhu in Paris – Financial Times
France, Belgium and Luxembourg, which own Dexia, the lender that is being broken up, have agreed to boost state guarantees to the ailing bank by E10bn to E55bn, it was disclosed on Wednesday.
http://jlne.ws/KW8LVf

Goldman Sells $1.2B of Its Controversial Kinder Morgan Stake
Wall Street Journal Blogs
Goldman Sachs and Carlyle Group are cashing out a portion of their stakes in Kinder Morgan after the pipeline giant has closed on its transformative purchase of El Paso.
http://jlne.ws/KW8MZh

Ex-Goldman Executive Yoon Starts Private-Equity Fund
Bloomberg
Gene Yoon, who left Goldman Sachs Group Inc. (GS) in March after five years at the firm, won backing for a $500 million fund that plans to make private-equity investments similar to those he oversaw at his former company.
http://jlne.ws/KW8MZm

Morgan Stanley Reopening Fixed-Income Trading Desk in Toronto
Dow Jones
U.S. banking giant Morgan Stanley (MS) has reopened its fixed-income trading desk in Toronto, more than a decade after shuttering its bond-market operations in Canada, according to people familiar with situation.
http://jlne.ws/KW8OQU

Citi Diversifying into ID Proofing
Zacks via Yahoo! Finance
In an effort to diversify its revenue base, Citigroup Inc. is branching out into the identity proofing business, according to a Wall Street Journal report.
http://jlne.ws/KW8P7i

JPMorgan cuts IT spending outlook as economy slows
Reuters via Yahoo! News
JPMorgan Securities lowered its IT spending growth outlook for 2012 citing a slowdown in global production trends and spending by China, amid rising macroeconomic uncertainties in Europe and the United States.
http://jlne.ws/KW8P7n

BofA Suit vs. Deutsche Bank, BNP Paribas Dismissed
Dow Jones
A federal judge dismissed Bank of America Corp.’s lawsuit against units of Deutsche Bank AG and BNP Paribas SA, a win for the two foreign banks in their $1.75 billion dispute over losses suffered when a subsidiary of disgraced mortgage lender Taylor Bean & Whitaker Mortgage Corp. collapsed.
http://jlne.ws/KW8P7s

Blanked Bankers Double as Bonuses Disappear, Survey Shows
Bloomberg via Yahoo! Finance
The proportion of investment bankers who got no bonuses last year more than doubled to about 14 percent, a poll by executive-search firm Options Group shows.
http://jlne.ws/KW8Nwh

Pershing is the First Clearing Firm to Offer Brokerage Solution for 529 College Savings Plans
PR Newswire via Yahoo! Finance
Pershing LLC, a BNY Mellon company, today announces that it has become the first clearing firm to offer 529 college savings plans on its platform.
http://jlne.ws/KW8PnQ

Pershing Advocates Focus on Attracting Gen X and Gen Y Investors to Support Future Success
PR Newswire via Yahoo! Finance
Pershing LLC, a BNY Mellon company, today announced the release of a new guidebook, Generation X and Y Investors Are the Future of Your Business.
http://jlne.ws/KW8PnU

Indexes & Products

IndexIQ Announces May 2012 Performance of Its IQ Hedge Family of Investable Benchmark Hedge Fund Replication Indexes
http://jlne.ws/KW8Po0

Global X Launches Hedge Fund Replication ETF
http://jlne.ws/KW8PEh

FTSE Italia Index Series Quarterly Review June
http://jlne.ws/KW8PEn

Babcock International Group To Join FTSE 100
http://jlne.ws/KW8NMU

[TSE] ETF/ETN Monthly Report for May 2012
http://jlne.ws/KW8O3h

FTSE China Index Series Quarterly Review
http://jlne.ws/KW8PUX

Technology

SunGard Launches SGN Global Fund Trading Solution
SunGard has launched a solution for international fund trading, expanding the capabilities of the SunGard Global Network (SGN) Funds solution, to help fund companies and transfer agents broaden and streamline the processing and distribution of funds globally.
http://jlne.ws/KW8OjG

DM BOS Selects SunGard’s Valdi and SGN Solutions for Trading and Connectivity Support
DM BOS, the Polish stock exchange member and OTC brokerage house, has selected SunGard’s Valdi and SunGard Global Network (SGN) for direct market access (DMA) and global connectivity for its traders.
http://jlne.ws/KW8OjN

NYSE Technologies Collaborates with Xignite to Deliver Market Data Web Services
NYSE Technologies, the commercial technology division of NYSE Euronext, and Xignite Inc., provider of web-based market data services, have announced their agreement to launch a new service providing access to real-time, historical, and reference market data for all NYSE Euronext markets via the Internet.
http://jlne.ws/KW8OjS

Nissan Century Securities Selects Fidessa’s Japanese Trading Platform For Their Domestic Equity Trading Business
Fidessa group plc, provider of high-performance trading, investment management and information solutions for the world’s financial community, has today announced that Nissan Century Securities, an independent securities company in Japan, has selected Fidessa’s Japanese trading platform to trade Japanese cash equities.
http://jlne.ws/KW8Qbo

Asset Control Expands In Japan – New Country Manager And Office Supports Growing Market Opportunities
Asset Control, provider of financial data management solutions and services, today announces the opening of its new office in Japan’s financial district and appointment of Hidet Kobayashi as Country Manager.
http://jlne.ws/KW8OAm

SIX Financial Information and Updata Announce New Partnership
Business Wire via Yahoo! Finance
SIX Financial Information, a leading global provider of data services and solutions for financial professionals, and Updata, a leading global provider of innovative trading analytics, today announced that they have integrated their services.
http://jlne.ws/KW8RvT

Tokyo Stock Exchange Select Corvil to Manage Latency on the Arrowhead and Tdex+ Trading Systems
CNW Group via Yahoo! Finance
http://jlne.ws/KW8Rw0

Enforcement

CFTC Charges Ronnie Gene Wilson of South Carolina and His Company, Atlantic Bullion & Coin, Inc., with Operating a $90 Million Silver Bullion Ponzi Scheme
The U.S. Commodity Futures Trading Commission today announced the filing of a federal civil enforcement action charging defendants Ronnie Gene Wilson and Atlantic Bullion & Coin, Inc., both of Easley, S.C., with fraud in connection with operating a $90 million Ponzi scheme, in violation of the Commodity Exchange Act and CFTC regulations.
http://jlne.ws/KW8QrW

CFTC Orders Nevada Resident Luis Salazar-Correa and His Company, Prosperity Team, LLC, to Pay More than $2.6 Million to Settle CFTC Anti-fraud Forex Action
The U.S. Commodity Futures Trading Commission (CFTC) today filed and simultaneously settled charges against Luis Salazar-Correa of Las Vegas, Nev., and his Nevada-based company, Prosperity Team, LLC, for fraudulently soliciting individuals to participate in a pooled investment vehicle, misappropriating customer funds, and issuing false statements to conceal trading losses and the fraud.
http://jlne.ws/KW8RMr

OppenheimerFunds to Pay $35 Million to Settle SEC Charges for Misleading Statements During Financial Crisis
The Securities and Exchange Commission today charged investment management company OppenheimerFunds Inc. and its sales and distribution arm with making misleading statements about two of its mutual funds struggling in the midst of the credit crisis in late 2008.
http://jlne.ws/KW8Qs5

U.S. urges 230 years prison for Allen Stanford
Reuters via Yahoo! News
U.S. prosecutors urged a judge on Wednesday to send convicted financier Allen Stanford to prison for 230 years, calling him a “ruthless predator” whose $7 billion Ponzi scheme was among the most egregious frauds ever undertaken.
http://jlne.ws/KW8RMF

Feds Say All That Glittered At Gold Coast Futures & Forex Was Not Gold
Bill Singer – Forbes
On March 7, 2012, the Commodity Futures Trading omission filed a civil enforcement Complaint against Christopher Varlesi, 53, Chicago, IL, which resulted in the entry of an emergency ex parte restraining Order on March 8, 2012, freezing Varlesi’s assets and prohibiting him from destroying or altering books and records.
http://jlne.ws/KW8S2W

Environmental & Energy

World Missing Environmental Goals in ‘Paralysis of Indecision’
Bloomberg
Nations are making “significant” progress on just four of 90 environmental goals, with little advance on tackling climate change, replenishing fish stocks or stopping deserts from spreading, the United Nations said today.
http://jlne.ws/KQfBMl
**RKB — The GEO-5 report, the fifth global environmental health-check by the United Nations since 1997, compiled by more than 600 experts. The UNEP page can be found here: http://jlne.ws/JYOyyS

Factbox: U.N. takes pulse of the planet, prognosis isn’t good
Reuters
Over the past two decades the Earth’s vital signs have continued to deteriorate, from loss of rainforests, overfishing, air and water pollution to chaotic weather and rising greenhouse gas emissions, according to a United Nations report.
http://jlne.ws/LmVy9c

BM&FBOVESPA Signs Agreement With State Government And CETESB To Develop The Environmental Assets Market
BM&FBOVESPA, the São Paulo State Government’s Environment Secretariat, and the Environmental Agency of São Paulo State (CETESB) signed a protocol of intent today (June 05) that seeks to study institutional and regulatory measures for the development of the environmental assets market.
http://jlne.ws/KW8QIw

Asia-Pacific

Stock Exchange Of Thailand Signs MoU Renewal With KRX For Further Cooperation
Mr. Charamporn Jotikasthira, President of The Stock Exchange of Thailand (SET), and Mr. Bongsoo Kim, Chairman & CEO of the Korea Exchange, Inc. (KRX) recently signed the renewal of memorandum of understanding (MoU), aiming to extend cooperation of both exchanges in exchanging information, improving IT structure, promoting collaborative investment and business opportunities.
http://jlne.ws/KW8S39

China investment in Europe triples
CNN
Chinese direct investment into Europe tripled in 2011 to $10bn, according to a new study that estimates Chinese companies are in the early stages of a global shopping spree that could see them spend as much as $250bn-$500bn in the region by 2020.
http://jlne.ws/KW8Sjq

Chinese Companies on an Overseas Shopping Spree
By NEIL GOUGH – NY Times
Chinese companies went on an overseas shopping spree in the first three months of the year, with the value of outbound investment rising 118 percent, to $21.4 billion, from the period a year earlier, a study released on Thursday showed.
http://jlne.ws/KW8Sjw

Fortress Asia Macro Fund Named “Best New Asia Fund” at Eurekahedge Asian Hedge Fund Awards 2012
Business Wire via Yahoo! Finance
Fortress Investment Group’s (FIG) Fortress Asia Macro Fund was named “Best New Asian Hedge Fund” at the Eurekahedge Asian Hedge Fund Awards 2012.
http://jlne.ws/KW8QYW

HKEx Monthly Market Highlights – May 2012
http://jlne.ws/KW8SzZ

HKEx On-Floor & Off-Floor Trading Statistics
http://jlne.ws/KW8Rfm

Shanghai Stock Exchange Boosts Cultivation Of Blue Chip Market – The SSE Focuses On Structural Transformation For Serving The Real Economy
http://jlne.ws/KW8SA8

Frontier Markets

Dubai Mercantile Exchange Appoints CME Group’s Owain Johnson as Chief of Products and Services
PR Newswire via Yahoo! Finance
The Dubai Mercantile Exchange (DME), the leading energy futures exchange in the Middle East, today announced the addition of Owain Johnson as the Chief of Products and Services to the strategic management team of the Exchange.
http://jlne.ws/KWax8X

Africa: A Frontier for Private Equity, but a Pitfall as Well
Knowledge at Wharton
The emerging markets are passe. Private equity today is looking at frontier markets. As the name suggests, these are places where the opportunities are great but the risks are equally high. Africa, with close to 6% growth, has a range of such frontier markets, but out-of-the-box thinking is needed to invest in them, observers say.
http://jlne.ws/KWaCJv

National Stock Exchange Seeks OK to Keep NCDEX Stake
By Debiprasad Nayak – WSJ
National Stock Exchange of India Ltd. has asked the commodity market regulator to relax a rule that prohibits an exchange operator from owning a more than 5% stake in a commodity exchange.
http://jlne.ws/KWaA4x

India-Focused Funds Witness Outflow of $455 mn in May
INDOlink
New Delhi: India-focused funds witnessed outflow to the tune of $455 million last month amid concerns over domestic economic growth and depreciating rupee, says a report.
http://jlne.ws/KWaA4C

Malawi to receive $157 mn IMF loan
AFP via Yahoo! News
Malawi is set for a $157-million (125-million euro) three-year IMF loan to fix its troubled economy which has been hit by global aid suspensions, the International Monetary Fund said on Wednesday.
http://jlne.ws/KWaCJG

Palestine Exchange Monthly Investor Newsletter – May 2012
http://jlne.ws/KWaCJM

Miscellaneous

Small Firms’ Big Customers Are Slow to Pay
By ANGUS LOTEN – WSJ
Small businesses are waiting longer for commercial customers to pay their bills as many big companies continue to hoard cash to bolster their own working capital. The trend, which began in the recession and has worsened in recent years, is putting growing pressure on people like Nirav Sheth, who owns a Web-development company in Washington.
http://jlne.ws/KWaD07

Gupta Trial Judge Reprimands Law Student Spectator
By PETER LATTMAN – NY Times
Judge Jed S. Rakoff asked a law student attending the insider trading trial of Rajat K. Gupta to stop sending him letters about the case. During a break in the proceedings on Wednesday morning, a courtroom deputy asked Benula Bensam, a student at Benjamin M. Cardozo Law School, to participate in a private conference with Judge Rakoff and the lawyers.
http://jlne.ws/KWaARZ

John Lothian Newsletter

We visit more than 100 websites daily for financial news (Would YOU do that?)

“John Lothian and Company… our industry intelligence.”

Rick Lane

CEO, Trading Technologies

Past JLN Newsletters

Pin It on Pinterest

Share This Story