John Lothian Newsletter: MF Global Collapse Prompts Clash Over Collateral; Exchanges Push Back Deadline For New Stock-Market Safeguards; Greek Default Insurance Doesn’t Need to Pay Out After Bailout, ISDA Says

Mar 1, 2012

Considering the MF Global collapse and how it damaged customer funds, various participants in the futures industry bring forth proposals on how to protect customer collateral. Exchange operators in the US agree to let regulators have another three months to figure out what to do about flash crash rules, though they didn’t agree to stay seated while waiting. The ISDA determines that the Greek bailout doesn’t constitute a default event, so insurance doesn’t activate. ICE reports success at keeping most “stupid algo” orders out of its market. And in today’s top box, a JLN Options Sarah Rudolph interview with Russ Chrusciel of SunGard’s Valdi Options Solutions.

Observations – Statistics – Commentary

John Lothian in DC with CFTC
John Lothian is currently in Washington, attending the CFTC Roundtable discussions on customer collateral protection.

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U.S. futures players at odds on post-MF Global path
By Ann Saphir – Reuters
Four months after $1.6 billion in customer funds went missing in the collapse of futures brokerage MF Global, industry participants are full of ideas for how to prevent a similar debacle going forward. They are far from agreed on which are the best.
http://jlne.ws/zI5Rgw

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UK study questions liquidity claims of HFT
By Jeremy Grant – Financial Times
A majority of British asset managers, pension funds and corporate treasurers polled in a UK government-sponsored study are sceptical that “high-frequency” trading provides liquidity to markets.
http://jlne.ws/wc0kXZ

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Quick View: ICE’s ‘stupid algo’ solution
By Jeremy Grant – Financial Times
It’s one of the shocking features of today’s equity markets that millions of orders you see flashing on trading screens do not represent actual deals. Thanks to the way algorithmic trading works, exchanges and other trading platforms are flooded on a daily basis with buy and sell orders – carried in electronic “messages” – that do not actually end up in a deal being done.
http://jlne.ws/yP2Iq7

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JLN Options: Five Minutes with Russ Chrusciel
Russ Chrusciel is the head of product management for SunGard‘s Valdi Options Solutions. He recently participated in a panel at the Securities Traders Association of Chicago (STAC) conference on, “Derivative Technologies Challenges.” Later at the conference he spoke with JLN Options editor Sarah Rudolph about SunGard’s option analytics tool, the challenges in providing support to clients, the impact of regulations, and trading strategies.

Q: Can you explain what the Valdi Options Solution is and how it works?

A: Valdi Options Solutions is a division of SunGard Capital Markets. We offer software solutions that serve the needs of options traders and risk managers with respect to options risk management both in a pre-trade, evaluative phase, and on a post trade basis.

We work with customers to provide tools to help them navigate the derivatives markets on a day-to-day basis. One of our core products was formerly known as Microhedge, and has been rebranded as Valdi Options Solutions. People who have been around options trading for the past 15-25 years know the product. In addition to Valdi Risk Analytics, we also have a solution geared toward options portfolio risk management which is called Valdi Enterprise Risk Manager – ERM for short.

Q: As far as options analytics, what sort of tools does it provide?

A: We work with market data providers and we show real time markets across the spectrum of the listed space. We allow users to use their own model inputs in respect to underlying price, time, interest rates, dividend streams, customized volatility skews and surfaces, which lead people to generate theoretical values across a subset of listed options.

In some cases we work in tandem with execution partners, so if I have a valuation on an option and want to take action, I can send that order off to be executed.

Finally, we provide service in the areas of position servers or position management, where those executed fills go back through an option clearing firm to our position database where the users can see the sum total of their positions. So they can see where their risk is and where the options Greeks are, as well as looking at day to day market P&L and theoretical P&L.

For the rest of the interview and more coverage of the options sector, visit the JLN Options website at http://jlne.ws/w9buy5

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GFI Group Announces the Departure of James Higgins and Appointment of Richard Giles
Press Release
New York, March 1, 2012. – GFI Group Inc., a leading provider of wholesale brokerage, electronic execution and trading support products for global financial markets, today announced the departure of James Higgins as Head of its North American Fixed Income brokerage operations. Mr Higgins is leaving to pursue new business opportunities. GFI also announced that Richard Giles, Managing Director and North American Head of Commodities and Energy Brokerage, will assume additional duty as Head of GFI’s North American Fixed Income Brokerage, succeeding Mr. Higgins.
http://www.gfigroup.com/

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Unintended Consequences of the CFTC
Abraham Bailin | Morningstar
When Dodd-Frank was signed into law in July 2010, it marked one of the most comprehensive changes to our financial system since the Great Depression. The Act’s primary mandate, “To promote the financial stability of the United States by improving accountability and transparency in the financial system,” called to action a multitude of federal agencies, departments, and commissions. For the Commodity Futures Trading Commission, this meant identifying 30 areas where additional rules required implementation.
http://jlne.ws/xBvlv4

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CME Says No Error in Treasury Futures Trading as Bernanke Spoke
By Matthew Leising – Bloomberg
CME Group Inc., the world’s largest futures exchange, said there is no indication of erroneous trading in 10-year Treasury futures contracts today after Federal Reserve Chairman Ben S. Bernanke spoke.
http://jlne.ws/wGnQIY

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Q&A with the CFTC’s Scott O’Malia
Gregory Bresiger – Traders Magazine Online News
Commissioner Scott O’Malia of the Commodity Futures Trading Commission (CFTC) is on a mission. He says the process of writing new over-the-counter derivative contract rules needs more transparency. Over the past year he has repeatedly called for more roundtables and public comment on how rules are written.
http://jlne.ws/z2IZLb

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London must scare insider traders
By John Gapper – Financial Times
They take enforcement seriously at the Federal Bureau of Investigation. They get Gordon Gekko to warn off hedge fund managers from trading on inside information, and they tap the phones of suspects. Compared with that, hedge fund managers in Mayfair and Geneva, where Philippe Jabre moved after being fined £750,000 for market abuse at the GLG hedge fund in 2006, have things easy. The small minority that breaks the rules has a much lower chance of either being caught or, when caught, jailed.
http://jlne.ws/w0cS0Y

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Fast, Furious at MF Global
BY JULIE STEINBERG, MIKE SPECTOR AND AARON LUCCHETTI – WSJ
At 4:53 p.m. five days before MF Global Holdings Ltd. collapsed, an employee in its Chicago office asked a co-worker to move $165 million from one of the securities firm’s bank accounts to another. “Approved,” came the response one minute later, according to an email reviewed by The Wall Street Journal. Within about 15 minutes, the money moved to an MF Global account at J.P. Morgan Chase & Co., internal documents show.
http://jlne.ws/Ay6MJ9

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Volcker Rule comments: The good, the bad, and the ridiculous
CNN Money
More than 16,000 comments were filed to the SEC on the proposed Volcker Rule, but don’t expect the debate to end just because the comment period is over.
http://jlne.ws/vZC4Xz

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CQG-hosted webinar: Metrixx-Calculated Price: An Evaluation Tool for Professional Traders
March 8, 2012, 3:30 p.m. CST
Join Jim Marzano, founder of Metrixx LLC, as he demonstrates the role of Metrixx’s real-time decision support tools and social business platform in defining market value.

Mr. Marzano will highlight:
• Metrixx integration with CQG for quoting, charting, and modeling, with more than 1,000 QFormulas;
• extensive pre-trade analysis and calculations for any globally-traded future, with special emphasis on financial futures; and
• Metrixx Community, a customizable social platform for trading professionals.

Webinar registrants will also receive a free trial subscription to the Metrixx Community.

For details and to register, visit http://jlne.ws/x5Qt8o

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MarketsWiki Page of the Day
Bill Herder
http://jlne.ws/xHWFOw

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MarketsWiki Recent Updates

People
Margaret Wiermanski; Tammy Botsford; Leonard T. Nuara; Katherine Murray; David Ruder; Christian Martin; Bill Herder

Companies, Organizations and Groups
OptionsCity Software Inc.; Aurubis; Fannie Mae; NASDAQ OMX Group, Inc.; Newedge; Commodity Futures Trading Commission; JPMorgan Chase & Co.; TeraExchange; FIA Asia

Miscellaneous
Upcoming Events; Dark pool; Option

Statistics
20,053,760 pages viewed, 6,716 articles, 137,551 edits
MarketsWiki Statistics

Lead Stories

MF Global Collapse Prompts Clash Over Collateral
By Silla Brush and Phil Mattingly – Bloomberg
CME Group Inc. (CME) sparred with the Vanguard Group Inc. and other derivatives buyers over whether U.S. regulators should extend collateral-protection rules designed for the swaps market to the futures industry following the collapse of MF Global Holdings Ltd.
http://jlne.ws/zfxxDy

Futures Industry Proposes Initial Fixes After MF Global Collapse
By Matthew Leising – Bloomberg
The futures industry is recommending more rigorous reporting and internal controls for brokerages as $1.6 billion of customer money is still unaccounted for after the bankruptcy of MF Global Holdings Ltd.
http://jlne.ws/xfpXXo

Exchanges Push Back Deadline For New Stock-Market Safeguards
By Jacob Bunge Of DOW JONES NEWSWIRES
U.S. stock-exchange operators agreed Wednesday to give market regulators three more months to consider a set of safeguards proposed to help ward off another “flash crash,” though authorities may move forward on the measures before then.
http://jlne.ws/y4uopv

Greek Default Insurance Doesn’t Need to Pay Out After Bailout, ISDA Says
By Abigail Moses – Bloomberg
Default insurance on Greek debt won’t be paid out, the International Swaps & Derivatives Association said after it was asked to rule whether part of the nation’s $170 billion bailout was a credit event.
http://jlne.ws/x9K130

CME Group gets in line with $16 million MF Global claim
Reuters
CME Group has joined the line of former MF Global customers trying to get their money back from the bankrupt brokerage giant once run by former Goldman Sachs executive Jon Corzine.
http://jlne.ws/xV8rNk

Huge Treasury Futures Sale Hits Metals, Currency Markets
By Jacob Bunge Of DOW JONES NEWSWIRES
A cascade of massive trades rolled through the Treasury futures market Wednesday morning, sparking debate among traders as to whether the selling was an error or a big investor selling out of a massive position.
http://jlne.ws/AqtSiY

Bank Of China, CME To Begin Commodity Trade Settlement In Yuan
Dow Jones
Bank of China Ltd. and futures exchange operator CME Group Inc. (CME) signed a memorandum of understanding Wednesday to begin settling commodity trades in the yuan, further expanding the use of the Chinese currency outside China’s borders.
http://jlne.ws/yGFF5L

Bernanke Quells Talk of Fresh Fed Stimulus to Tackle Elevated Jobless Rate
Bloomberg
Federal Reserve Chairman Ben S. Bernanke said elevated unemployment and subdued inflation mean interest rates are likely to stay low, without offering any sign that the economy needs an additional monetary boost.
http://jlne.ws/w9ECZC

CFTC seeks to tighten regulation on ‘algos’
By Telis Demos in New York – Financial Times
Regulators and exchanges are looking at fresh ways to regulate automated trading as continuing market disruptions deepen some concerns raised by the “flash crash” nearly two years ago.
http://jlne.ws/wx44s6

Euro zone is not considering Greek exit – Juncker
Reuters via Yahoo! Finance
Euro zone governments are not discussing debt-stricken Greece’s departure from the currency bloc, Jean-Claude Juncker, the chairman of the euro zone finance ministers, said on Wednesday.
http://jlne.ws/Av44NI

Bundesbank at odds with ECB over loans
By Patrick Jenkins and Mary Watkins in London and James Wilson in Frankfurt – Financial Times
The head of Germany’s Bundesbank has launched a powerful attack on Mario Draghi, president of the European Central Bank, in a sign of mounting concern in Europe’s biggest economy at measures being taken to try to contain the eurozone financial crisis.
http://jlne.ws/yAj4Nn

Regulators warn against ratings plan
By Brooke Masters in London and Alex Barker in Brussels – Financial Times
Forcing issuers to rotate the agencies that rate their bonds, as proposed by the European Commission, could do more harm than good by opening the door to lower quality ratings by inexperienced analysts, European and UK regulators have said.
http://jlne.ws/xydEZy

European Parliament – Financial Transaction Tax: A Better Design Is Possible
Press Release
http://jlne.ws/zpqknT

Environmental Trading News

EU Carbon-Market Changes Move Ahead
WSJ
European Union lawmakers Tuesday backed the possible withdrawal of carbon-dioxide emissions permits from the EU carbon market, setting the stage for what could be tough negotiations with member countries, as pressure for action to boost stagnating carbon prices increases.
http://jlne.ws/wn37Kf

**JK – The question now is how much?

Court Likely to Uphold EPA CO2 Rules
WSJ
After a two-day hearing, a federal appeals court appeared inclined to uphold key parts of the Obama administration’s first-ever rules for reducing greenhouse gases, but it wasn’t clear whether the court would endorse the government’s entire approach.

Bingaman to unveil ‘clean energy standard’ Thursday
The Hill’s E2-Wire
Senate Energy and Natural Resources Committee Chairman Jeff Bingaman (D-N.M.) will introduce legislation Thursday mandating that power companies generate a major portion of the country’s electricity from low-carbon energy sources.
http://jlne.ws/xPGEJ8

**JK – Bingaman keeps chugging on.

For more environmental trading news, subscribe to the Environmental Markets version of the John Lothian Newsletter edited by Jim Kharouf.
Visit http://www.jlnenvironmental.com to subscribe.

Exchange & ECN News

ICE Announces March 19 Launch of 28 New Cleared OTC Contracts
IntercontinentalExchange, a leading operator of global regulated futures exchanges, clearing houses and over-the-counter (OTC) markets, today announced the launch of 28 new cleared OTC contracts for natural gas liquids, North American natural gas, North American power, crude and refined petroleum products.
http://jlne.ws/wq5ia8

IntercontinentalExchange Announces First Year Results of High Frequency Trading Policy; Innovative Method Proves …
Press Release
IntercontinentalExchange (NYSE: ICE – News), a leading operator of global regulated futures exchanges, clearing houses and over-the-counter (OTC) markets, today announced the first full year impact of its high frequency trader (HFT) messaging policy.
http://jlne.ws/yy54gp

NYSE Liffe expands range of Dutch products with the introduction of futures and options on the AMX-Index
NYSE Liffe, the European derivatives market of NYSE Euronext (NYX), is to introduce futures and options on the AMX-Index, the index for medium sized Dutch companies. AMX-Index futures will be launched on Monday 26 March 2012, followed by trading in AMX-Index options on Tuesday 10 April 2012.
http://jlne.ws/xK4BiC

NYSE Group, Inc. Annual Report For The Fiscal Year Ended December 31, 2011 – NYSE Euronext -Deutsche Boerse Deal Costs USD 85 Million
Press Release
http://jlne.ws/xnysyC

EEX is awarded Contract for the Transitory Auction Platform for Germany
The European Energy Exchange (EEX) has won the tendering procedure for the transitory auctioning platform for the EU Emission Allowances (EUA) auctioned off by Germany for the third emissions trading period. On 27 February 2012, the Federal Environment Agency awarded EEX the contract.
http://jlne.ws/zTsfzM

NYSE Euronext to Present at the Citi 2012 Financial Services Conference
http://jlne.ws/wypJ69

BME To Submit To The General Shareholders’ Meeting For Approval The Distribution Of An Extraordinary Dividend
http://jlne.ws/yQUvN9

BME’s Net Profit In 2011Reached E155.1 Million, Up 0.6% From 2010
Press Release
http://jlne.ws/zYESOl

The Spanish Stock Exchange Traded E45.63 Billion In February On 3.4 Million Trades
Press Release
http://jlne.ws/w1xfdc

CME Group Clearing Advisory
Updated Specification for Forwards Processing Now Available
http://jlne.ws/z5qezg

CME Clearing – Performance Bonds / Margins
Performance Bond Requirements: NGL outrights; Crude Oil and NGL Intra-Commodity Spread Charges- Effective Friday, March 2, 2012
http://jlne.ws/yue1Fn

CHX INFORMATION MEMORANDA 2012-04: Orders Eligible for Entry to the CHX Matching System (ISO Cross, Midpoint Cross & Benchmark)
http://jlne.ws/yE0ChQ

Athens Exchange Market Operations Committee Decision
http://jlne.ws/xbSJpp

Banks, Brokers & Dark Pools

Former top Citigroup executive Terri Dial dies
Reuters via Yahoo! News
Terri Dial, a former senior executive of some of the world’s largest banks and one of the leaders of Citigroup’s post-crisis restructuring, has died. Dial, 62, died Tuesday of pancreatic cancer, according to media reports.
http://jlne.ws/wNac4A

Citigroup’s Terri Dial: a “human cyclone” to the end
By Patricia Sellers – Fortune
Tough, tenacious and famously strong-willed, Terri Dial picked up the nickname “the human cyclone” during her four-decade career in banking. She lived up to her reputation until she died yesterday afternoon, from pancreatic cancer, at age 62.
http://jlne.ws/AEA74J

SEC builds case against banks on warnings
By Kara Scannell in New York and Shahien Nasiripour in Washington – Financial Times
US regulators investigating banks’ disclosures with mortgage securities are building their cases on warnings by due diligence firms that some loans failed to meet the banks’ underwriting standards.
http://jlne.ws/AdT1cT

JPMorgan says may face SEC action on mortgage bonds
Reuters via Yahoo! News
JPMorgan Chase & Co said it may face federal enforcement actions stemming from two investigations into mortgage-backed securities that went bad in the financial crisis. The largest U.S. bank, in a regulatory filing on Wednesday, said Securities and Exchange Commission staff told the company in January that they may recommend the commission bring cases against the company.
http://jlne.ws/zCqMcV

We Wouldn’t Have Done Anything Differently: Ex-Bear CEO
CNBC
Faced with the same set of circumstances again, former Bear Stearns CEO Alan Schwartz said he probably wouldn’t have done anything different as the firm cascaded toward bankruptcy.
http://jlne.ws/xzTjGh

Big Bank Weighs Fee Revamp
By DAN FITZPATRICK and DAVID ENRICH – WSJ
Bank of America Corp. is working on sweeping changes that would require many users of basic checking accounts to pay a monthly fee unless they agree to bank online, buy more products or maintain certain balances.
http://jlne.ws/yrMOIY

Instinet Extends VWAP Cross To Europe, Hong Kong
Press Release
http://jlne.ws/zXnr2y

Clearstream and BNP Paribas Securities Services launch innovative collateral management cooperation
Clearstream: Clearstream and BNP Paribas Securities Services (BNP Paribas) have signed a letter of intent to intensify their cooperation on collateral management: BNP Paribas customers will be able to consolidate their collateral holdings, via Clearstream’s Global Liquidity Hub, to cover their global exposures from a single optimised collateral pool.
http://jlne.ws/A3MqZi

Credit Suisse Drives Electronic Trading Innovation with Calendar Roll Algorithm on Credit Suisse Onyx
PR Newswire via Yahoo! Finance
Credit Suisse is pleased to announce the release of the Calendar Roll, an innovative fixed income algorithm which allows clients to roll bond futures positions while maintaining their risk exposure, available directly on their desktop via the Credit Suisse Onyx fixed income trading platform.
http://jlne.ws/zJCf50

UBS Launches Algorithmic Client Trading Strategy for Illiquid Securities
Business Wire via Yahoo! Finance
UBS today announced the global launch of a new algorithmic trading strategy called “UBS Swoop,” a specifically designed trading strategy product to support clients on discontinuous liquidity and hard-to-trade or low-volume securities.
http://jlne.ws/zQY3Ms

RBS Nears Sale of Asian Assets to Malaysian Bank
Wall Street Journal Blogs
Royal Bank of Scotland Group PLC is close to a preliminary agreement on the sale of Asian assets to Malaysias CIMB Group Holdings Bhd., people familiar with the matter said.
http://jlne.ws/waNgu3

BMO Names C.J. Gavsie as Head, Foreign Exchange Products
Marketwire via Yahoo! Finance
TORONTO, ONTARIO– – BMO Capital Markets, the investment and corporate banking arm of BMO Financial Group , today announced that Charles J. Gavsie has been appointed Head, Foreign Exchange Products. In …
http://jlne.ws/zCzY4Q

Talent War Seen as Cantor Bankers Defect to China
Bloomberg
On May 26 last year, amid the gold lighting and $60 entrees at a restaurant in Hong Kong’s Central entertainment district, Jason Boyer confided to a friend that he was leaving Wall Street.
http://jlne.ws/ythybT

Landmark UK ruling on Lehman pay-outs
By Jane Croft and Philip Stafford in London – Financial Times
The UK’s highest court has ruled that $2bn of client money held by Lehman Brothers should be divided among a much larger group of investors.
http://jlne.ws/wYEOYH

Regulatory News

The SEC News Digest
The SEC News Digest provides daily information on recent Commission actions, including enforcement proceedings, rule filings, policy statements, and upcoming Commission meetings.
http://www.sec.gov/news/digest.shtml

CFTC Repeals Exemption, Hedge Funds Anticipate Overlap With SEC Rules
Forbes
The CFTC has rescinded the exemption from registration that Rule 4.13(a)(4) provided to commodity pool operators (CPOs)and commodity trading advisors (CTAs) whose investors are qualified purchasers or accredited investors. As the exemption from registration was widely relied upon, the amendment imposes significant new compliance requirements for many funds.
http://jlne.ws/w9xhUQ

Bernanke Says U.S. Volcker Rule Won’t Be Ready by July Deadline
By Craig Torres and Cheyenne Hopkins – Bloomberg
Federal Reserve Chairman Ben S. Bernanke said the central bank and other regulators won’t meet a July deadline to complete work on the so-called Volcker rule limiting proprietary trading at banks.
http://jlne.ws/zXJxzp

Federal Court in Illinois Orders Australian Firm Enfinium Pty Ltd to Pay $80,000 Penalty, Cease Soliciting U.S. Customers, and Modify Website
The U.S. Commodity Futures Trading Commission (CFTC) obtained a federal court consent order against defendant Enfinium Pty Ltd (Enfinium) of Sydney, Australia, for soliciting and accepting foreign currency (forex) orders from U.S. customers without being registered with the CFTC.
http://jlne.ws/yE9QMF

Testimony Before The U.S. House Committee On Agriculture, Washington, DC – CFTC Chairman Gary Gensler
Press Release
http://jlne.ws/zqMOgF

“Broker-Dealer Anti-Money Laundering Compliance – Learning Lessons From The Past And Looking To The Future” By David W. Blass, Chief Counsel, Division Of Trading And Markets, U.S. Securities And Exchange Commission – SIFMA Anti-Money Laundering & Financial Crimes Conference, February 29, 2012
http://jlne.ws/yH3rHl

Remarks By U.S. Department Of The Treasury Under Secretary David Cohen At The SIFMA Anti-Money Laundering & Financial Crimes Conference
Press Release
http://jlne.ws/wGakyD

FINRA Investor Education Foundation and United Way Worldwide Announce Over $1.3 Million in Grants to Support Grassroots Financial Education Projects
The Financial Industry Regulatory Authority (FINRA) Investor Education Foundation and United Way Worldwide (UWW) announced more than $1.3 million in grants to 12 recipients as part of the Financial Education in Your Community initiative.
http://jlne.ws/zB9J0q

Three arrested in FSA insider dealing investigation
The Financial Services Authority (FSA), with the assistance of Cheshire and Lancashire Constabularies, has this morning executed three search warrants at premises in Northwich and Rossendale.
http://jlne.ws/xRxujw

ESMA Publishes The Responses Received To The Consultations On Certain Aspects Of The MiFID Requirements For Suitability And Compliance
http://jlne.ws/yxDbvz

IOSCO Consults On Oil Price Reporting Agency Oversight
http://jlne.ws/xqdEjc

ASIC releases guidance for new business names register
http://jlne.ws/yAQd2K

AMF Enforcement – Suppressing and Detecting Fraud and Educating Consumers
http://jlne.ws/yWIyjp

Investments – Indexes – Managed Futures – Managed Funds

Man Group stems outflow of investor money
By Adam Jones – Financial Times
Man Group largely stemmed an outflow of investor money last month after wealthy eurozone individuals shed some of their recent nervousness about financial risk-taking. Announcing nine-month results and a revised dividend policy on Thursday, the hedge fund manager said the money pulled out of its funds by clients in February only slightly exceeded the volume of new cash coming in.
http://jlne.ws/wkqwRE

Man Group eyes client wins as outflows slow
By Laurence Fletcher – Reuters
Man Group, the world’s biggest listed hedge fund firm, cheered investors with news of lower fund outflows in a more buoyant 2012 for financial markets and said clients could begin to return after recent heavy withdrawals.”
http://jlne.ws/w5CT2U

Man Group: Results for the nine months ended 31 December 2011
Press Release
http://jlne.ws/x4yITO

Fewer Options for Repo Collateral May Pinch Money-Market Funds, Fitch Says
Bloomberg
A further reduction in short-term interest rates may make it even harder for the $2.6 trillion money-market fund industry to retain customer assets.
http://jlne.ws/w29yuX

The 40 Highest-Earning Hedge Fund Managers
Forbes
For most hedge fund managers, 2011 was a year to forget. The average hedge fund fell by 5% even as the U.S. stock market eked out a tiny gain. Big shot investors like billionaire John Paulson were humbled and lost massive amounts of money. Yet even in a down year, arguably its worst ever, the hedge fund industry demonstrated its unmatched ability to make people rich.
http://jlne.ws/zBZM6n

Terra Firma seeks 1bn from sovereign fund
By Daniel Schäfer in Berlin – Financial Times
Terra Firma Capital Partners has dropped plans to start fundraising this spring. The private equity group, run by British financier Guy Hands, is seeking instead to collect about 1bn from a single sovereign wealth fund to keep doing deals.
http://jlne.ws/z10fbd

Attara Capital to liquidate operations
By Sam Jones, Hedge Fund Correspondent – Financial Times
Attara Capital, the hedge fund co-chaired and founded by Nat Rothschild and the successor to the now-defunct activist fund Atticus Capital, is to liquidate its operations.
http://jlne.ws/xpsaGR

Mid-Atlantic Hedge Fund Association Celebrates Tenth Year, Hosting Annual Outlook Conference in Princeton, NJ on March …
Marketwire via Yahoo! Finance
The Mid-Atlantic Hedge Fund Association has announced a distinguished speaker roster to address the organization’s tenth annual “Outlook for Hedge Funds” program scheduled for March 15, 2012, 4:00-7:00 p.m. at Jasna Polana in Princeton, NJ.
http://jlne.ws/xRD64B

GASPARINO: The Feds Wiretapped The Phone Of Hedge Fund Legend Steve Cohen
Business Insider
There’s not really much more news than this. We just watched Gasparino’s Fox Biz hit, and apparently the Feds didn’t find anything illegal when they listened in conversations of the hedge fund god.
http://jlne.ws/yrRi1H

ISDA EMEA Determinations Committee: Credit Event Has Not Occurred with Respect to Recent Questions on The Hellenic Republic Restructuring
http://jlne.ws/AtDI7T

Top 15 Sovereign And Corporate Credit Default Swaps – Provided By The Depository Trust & Clearing Corporation (DTCC)
http://jlne.ws/ydnCMG

Three new SPDR equity index ETFs launched on Xetra
http://jlne.ws/zyueaW

Certain BlackRock Closed-End Funds Announce Estimated Sources of Distributions
http://jlne.ws/xCmO7W

ASX, RP Data and Rismark introduce world-first daily home value index
http://jlne.ws/z471QR

Standard & Poor’s Announces Changes In The S&P/TSX Canadian Indices
http://jlne.ws/wJrUYn

United States Department Of The Treasury: Preliminary Report On Foreign Holdings Of U.S. Securities At End-June 2011
http://jlne.ws/wFkjR3

Technology News

ASX welcomes Fidessa to The Australian Liquidity Centre
The Australian Securities Exchange (ASX), the leading securities exchange in Australia, and Fidessa Group PLC, a provider of high-performance trading, investment management and information solutions for the world’s financial community, announce that Fidessa will be co-locating its Software as a Service (SaaS) solutions and global connectivity network for the financial marketplace at ASX’s new data and co-location centre – the ASX Australian Liquidity Centre (ALC). Fidessa will also be locating its back-up systems at ASX’s alternate data centre.
http://jlne.ws/yTlhhZ

Numerix Continues to Innovate with the Debut of LiquidAsset SDK
Business Wire via Yahoo! Finance
Numerix , the leading provider of cross-asset analytics for derivatives valuations and risk management, announced today the availability of its LiquidAsset SDK .
http://jlne.ws/zPWq46

Interxion Reports Q4 and Full Year 2011 Results
Business Wire via Yahoo! Finance
Interxion Holding NV, a leading European provider of carrier-neutral collocation data centre services, announced its results today for the three months and year ended 31 December 2011.
http://jlne.ws/xC3GCq

Wedbush Launches Execution Solutions Group and Announces “We’ve Fixed Institutional Brokerage”
Business Wire via Yahoo! Finance
Wedbush Securities, one of the nation’s leading financial services and institutional execution providers, announces the launch of their Execution Solutions Group and ultra low-latency electronic trading platform, Powered by Lime.
http://jlne.ws/zWBnPm

HotButton Selects Panopticon for Visual Analysis of Oil and Gas Production and Compliance Data
http://jlne.ws/yBIFwD

Reports

Briefing.com Economic Calendar
http://www.briefing.com/Investor/Public/MarketAnalysis/Calendars/EconomicCalendar.htm

USDA Today
http://www.nass.usda.gov/Publications/index.asp

CBOE Events Calendar
http://www.cboe.com/AboutCBOE/EventCalendar.aspx

Economic Release Calendar
The Economic Release Calendar (PDF) is a schedule of government, academic and industry economic releases, provided as a service to CME customers.
http://www.cmegroup.com/tools-information/calendars/

Asia-Pacific News

LME to broaden education and outreach in Asia
The London Metal Exchange (LME) is broadening its education and outreach efforts in Asia amid growing interest in futures trading in the region. It has recruited risk consultant and commodity specialist Lesley Campbell, a former consultant to the World Bank, to join a growing team in Asia and spearhead the initiative.
http://jlne.ws/xwYABO

China’s Share of Reserves in U.S. Dollar Dives
BY TOM ORLIK – WSJ
China has made a sharp shift away from purchases of U.S. securities, slashing the dollar’s share of the country’s foreign reserves in what may signal a change in strategy for managing the massive cash pile, Dow Jones calculations indicate.
http://jlne.ws/zPw0bX

Vietnam Ready to Force Bank Mergers as Bad Loans Hurt Growth
BusinessWeek
Vietnam’s central bank said it’s ready to force mergers among weak lenders and keep monetary policy “tight” yet flexible as it grapples with a credit crunch that has forced thousands of companies out of business.
http://jlne.ws/xYzZZB

ISDA Credit Derivatives Determinations Committee: Elpida Memory, Inc. Credit Event
The International Swaps and Derivatives Association, Inc. (ISDA) today announced that its Japan Credit Derivatives Determinations Committee resolved that a Bankruptcy Credit Event occurred in respect of Elpida Memory, Inc.
http://jlne.ws/sw6DzO

[TSE] Trading Overview and Preliminary Figures for February 2012
http://jlne.ws/Ane5yz

[TFX] Trading Volume in February 2012
http://jlne.ws/wzr9AP

Osaka Securities Exchange: Trading Overview In February 2012
http://jlne.ws/ylhOvP

[HKEX] 2011 Results Announcement – Presentation By Charles Li Chief Executive And Vincent Kwong Financial Controller
http://jlne.ws/xWlPBM

HKEx Consolidated Financial Statements For The Year Ended 31 December 2011
http://jlne.ws/AbFX2K

HKEx 2011 Corporate Governance Report
http://jlne.ws/x0dBfC

Tokyo Stock Exchange: ETF License Application And Coverage Area For TOPIX Leveraged (2x) Index And TOPIX Inverse (-1x) Index
http://jlne.ws/zpjWfN

HKEx’s Second Phase New Trading Hours To Begin 5 March
http://jlne.ws/w0yWDm

Tokyo Commodity Exchange: Final Settlement Price Of Crude Oil For February 2012 Contract
http://jlne.ws/zr4y3c

Frontier Markets

Sebi goes slow on nod for new derivative products
N Sundaresha Subramanian – Business Standard
The Securities and Exchange Board of India (Sebi) is going slow on approvals of several index-based derivative products. Several new products proposed by both the exchanges had not been cleared by the regulator owing to concerns over their suitability to the small investors, said an official familiar with the development.
http://jlne.ws/AnCbBw

Erdogan Faces Worse Deal in Sukuk Than Dollar Debt Market: Turkey Credit
Bloomberg
Turkey, planning its first sale of bonds that comply with Islamic law, may have to pay about a percentage point more in interest than on bonds sold in dollars that don’t have religious restrictions.
http://jlne.ws/whEUGA

Miscellaneous News

Wall Street cash bonuses fell 14% last year
By Tom Braithwaite in New York – Financial Times
Cash bonuses on Wall Street fell 14 per cent last year, according to an estimate by New York state, reflecting the weak performance of investment banking and the shift towards “deferrals” as a bigger element of pay.
http://jlne.ws/zQg4eH

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