John Lothian Newsletter: ICE grain contracts kick off turf war with CME; Red Flags Said to Go Unheeded at Chase; China’s Citic in algorithmic trading deal

May 15, 2012

ICE launched its first grain contracts yesterday. Much analysis and discussion abounds regarding JPMorgan’s big loss, including stories that warnings of trouble from inside the company had been ignored. China’s Citic Securities buys into algorithmic trading software, signaling an increase in automatic trading in Asia. RJ O’Brien has a plan to mollify grain traders over extended trading hours, and tries to get the CFTC’s attention. BOX Options Exchange mulls the possibility of allowing after-hours trading on its options products.

Observations – Statistics – Commentary

Regulators at odds over longer CME grain cycle
Reuters via Yahoo! News
Jill Sommers, a commissioner at the Commodity Futures Trading Commission, said CME Group should be allowed to increase trading of its grain futures and options to 22 hours a day. In a Reuters interview, Sommers said the CME’s request is similar to other markets that trade nearly around the clock.
http://jlne.ws/IUzQVq

**** You could just stop with the first 3 words of this headline.

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R.J. O’Brien Calls on Exchanges, Regulator to Heed Industry Feedback on Extended Hours for Grain and Oilseed Contracts
R.J. O’Brien & Associates (RJO), the nation’s oldest and largest independent futures brokerage and clearing firm, today called on U.S. futures exchanges and the Commodity Futures Trading Commission (CFTC) to listen to feedback from farmers, food companies and commercial hedgers, and amend plans for the extended trading hours of grain and oilseed futures and options contracts. The firm is recommending a halt in trading on the 15 days a year when the U.S. Department of Agriculture (USDA) issues comprehensive reports on crop production, acreage and quarterly stocks.
http://jlne.ws/JsETRF

**** I would call this significant feedback.

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Brooksley Born On JPMorgan Chase Loss: Nothing’s Changed Since LTCM
The Huffington Post
To Brooksley Born, JPMorgan Chase‘s trading blowup looks a lot like the Long-Term Capital Management debacle of 14 years ago. It’s “happening all over again,” Born told The Huffington Post on Monday. “We have to learn from these experiences, and we don’t seem to be doing it yet.”
http://jlne.ws/IUzQ86

**** I propose we outlaw losses. Yes, guaranteed profits for everyone. Step right up.

**** Also, I propose we make hedging a win, win situation. Both sides of the hedge, the cash and derivatives positions, should be winners all the time. Step right up.

**** I also propose that traders who make egregious mistakes of huge magnitude lose their jobs. Wait, I think this one is in place already.

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BOX considers after-hours options trading
By Telis Demos in New York and Hal Weitzman in Chicago – Financial Times
Traders could get the chance to buy and sell US stock options after the closing bell, under a plan being developed by a US exchange. Tony McCormick, chief executive of the BOX Options Exchange, told the Financial Times that development of an after-hours platform is still in ”very early stages”.
http://jlne.ws/IUzQVu

**** If BOX trades around the clock, what would that due to the shape of their company?

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ICE to take pledges as collateral
By Philip Stafford – Financial Times
ICE Clear Europe, the clearing house of IntercontinentalExchange, is preparing to accept pledges of security interest as collateral in a move designed to free up assets owned by institutional investors.
http://jlne.ws/IUzQ89

**** Raise your right balance sheet and repeat after me, “I, state your name, promise to deliver…..”

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Deutsche Börse introduces application bringing automated event driven trading to popular execution platforms
Deutsche Börse – Market Data & Analytics has launched AlphaFlash Trader, a new trading application that delivers ‘drag and drop’ automated event driven trading to popular execution platforms. The new tool is already available to traders using the X_TRADER Pro platform from Trading Technologies International, Inc. and will be adapted to other execution platforms going forward. With the launch of AlphaFlash Trader, machine-readable news becomes accessible to a new client group. Deutsche Börse is therefore enabling more traders to execute automated trades based on macroeconomic indicators.
http://jlne.ws/IUzQVF

**** There is flash trading and now this is AlphaFlash Trader, unrelated.

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2012 Dog of Distiction
City of Chicago Office of the City Clerk
http://chicityclerk.com/dog-registration/voting/index.php

Please vote (using the link above) for Nick Notorangelo’s dog which is one of 5 finalists for the City of Chicago Dog of Distinction. Nick is a senior sales manager of Trading Technologies. The competition started with over 39,000 dogs and is down to the last 5.

Lump

“Lump (pronounced loomp) is a German Shepherd and was born in Dresden, Germany back in June 29th of 2005. He came over the Atlantic on Lufthansa Airline straight to Chicago at the age of 3 months. Lump’s favorite game is playing fetch on the lakefront with tennis balls. He protects all the neighborhood kids where we live by Wrigley Field. Every time a police car comes by, the police stop and take a few moments to say hello to their local 4-legged friend. The ladies in the neighborhood say he is so beautiful. His name is a German word which means ‘rascal’ but he is our local hero and we hope Chicago’s Dog of Distinction.”

– Tyra and Nick, Owners

**** There are some things I am asked to do that you just can’t make up. But please do give Nick and Lump a helping paw here and vote for Lump as the 2012 Dog of Distinction.

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What Jamie Dimon didn’t tell you on ‘Meet the Press’
Los Angeles Times
Without even waiting a decent interval for mourning, JPMorgan Chase Chairman Jamie Dimon launched his defense campaign over the disclosure that he presided over a $2-billion trading loss in derivatives within days of the disclosure itself, choosing the comforting confines of NBC’s “Meet the Press” for the campaign kick-off .
http://jlne.ws/IUzQop

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Has London Become The Epicenter Of Financial Trading Disasters?
Forbes
Bruno Iksil has been referred to as the London Whale for making huge derivatives bets that are at the center of the controversy that has seen JPMorgan Chase & Co. suffer $2 billion of trading losses in six weeks. As his nickname suggests, Iksil is not based at JPMorgan’s headquarters in New York, but works a desk out of London.
http://jlne.ws/IUzRbY

**** We should just move all the financial trading to Wales.

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FOW Awards 2012: now open for entries
Entries for this year’s FOW Awards are now being accepted. This year, FOW is overhauling its awards launching new categories and introducing market voting for some of the awards for the first time ever bringing even more credibility to the judging process.
http://jlne.ws/IUzQov

**** Even more credibility to the judging process?

++++

A whale in the waters of negative yields
By Bill Gross – Financial Times
In nature, the mighty whale depends upon the lowly plankton for its survival and the same analogy rightly applies to global developed economies, which have dominated trade and finance at the expense of developing nations. Now the tides may be turning as once minuscule global economies find themselves in possession of a plethora of reserves. The hunted may be turning into the hunter and the global monetary system, which has evolved and morphed over the past century – but always in the direction of easier, cheaper and more abundant credit – may have reached a point at which it can no longer operate in the same way. Major changes to our global monetary system may lie on a visible horizon.
http://jlne.ws/IUzRc1

***JM: (This is not about the London Whale, for once…)

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MarketsWiki Spring Cleaning Party – May 18, 2012

Join the MarketsWiki staff on Friday, May 18 as we clean up our most popular pages and take suggestions from MarketsWiki users all day.

Help us by participating in one of three ways:

(1) Help us edit – Spend some time on May 18 to help update a page. We’ll give you (and your organization) a shout out in the newsletter and on the front page of MarketsWiki during the party. Don’t have a MarketsWiki account? You can start a FREE MarketsWiki account for this event. Send Jeff Bergstrom an email to get signed up. We’ll also have help available all day for those new to wiking (or are a bit rusty).

(2) Suggest a page to clean up – Tweet your suggestion to @MarketsWiki with the #MWParty hashtag on (or before) May 18. You can also suggest a page at http://jlne.ws/MWSuggest.

(3) Spread the word – Contact colleagues that might have suggestions or want to become MarketsWiki editors. For a quick explanation of MarketsWiki, send them our short animated video: http://jlne.ws/WhatIsMW. Use the the #MWParty hashtag on Twitter to help us spread the word about our newly updated pages on May 18.

We hope you’ll join us on May 18, and remember to watch our progress by following the #MWParty hashtag on Twitter or visiting MarketsWiki.com.

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MarketsWiki Page of the Day
David Polen
http://jlne.ws/JB7kcS

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MarketsWiki Recent Updates

People

Dawn Combs; David Polen

Miscellaneous

Upcoming Events; Broker-dealer

Statistics

23,496,499 pages viewed, 6,872 articles, 140,053 edits
MarketsWiki Statistics
_______________________________________________________

Lead Stories

ICE grain contracts kick off turf war with CME
Reuters via Yahoo! News
The IntercontinentalExchange (ICE) kicked off the most aggressive challenge yet to the CME Group’s 160-year dominance of agricultural markets with the launch of five grain and oilseed futures on Monday.
http://jlne.ws/IUzRc8

Red Flags Said to Go Unheeded at Chase
By JESSICA SILVER-GREENBERG and NELSON D. SCHWARTZ – NY Times
In the years leading up to JPMorgan Chase’s $2 billion trading loss, risk managers and some senior investment bankers raised concerns that the bank was making increasingly large investments involving complex trades that were hard to understand. But even as the size of the bets climbed steadily, these former employees say, their concerns about the dangers were ignored or dismissed.
http://jlne.ws/IUzQFc

China’s Citic in algorithmic trading deal
By Jeremy Grant in Singapore – Financial Times
Citic Securities, China’s largest broker, has agreed to buy algorithmic trading technology from Progress Software, a Nasdaq-listed company, in the latest sign that rapid automated trading is spreading from western markets to Asia.
http://jlne.ws/IUzTAC

LCH.Clearnet Launches Expanded Credit-Default Swaps Clearing
Dow Jones
A unit of global clearinghouse operator LCH.Clearnet Group announced Tuesday an expansion of its existing France-based clearing offering for credit-default swaps, adding new dealer banks as members of the clearinghouse and saying that clients would soon be able to use the service.
http://jlne.ws/KqGzsQ

DealBook: After $2 Billion Loss, JPMorgan Reshuffles Trading Group
New York Times
Matthew E. Zames, the JPMorgan executive who was tapped on Monday to replace the outgoing chief investment officer, Ina Drew, announced several top leadership changes in the unit on Monday afternoon.
http://jlne.ws/IUzRsK

Ignore Myths and Half-Truths of JPMorgan’s Trading Losses
By the Editors – Bloomberg
JPMorgan Chase & Co.’s $2 billion trading loss has unleashed a whirlwind of commentary on how (and how not) to regulate the financial system. A few observations on some of the central questions that have been raised:
http://jlne.ws/IUzRIZ

Greece to repay E450m bond in full
By Kerin Hope in Athens – Financial Times
Greece is set to repay fully a E450m bond that matures on Tuesday after failing to reach a deal with holdout investors including private banks and a US-based hedge fund.
http://jlne.ws/IUzTAG

UBS: There Are 2 Clear Alternatives For Europe On The Greece Problem
Business Insider
Elections in Europe have shown that voters are angry about austerity and unemployment, and are punishing incumbents at the ballots. But UBS economist Larry Hatheway says that this discontent has not offered a viable alternative for dealing with Europe’s economic and financial crisis.
http://jlne.ws/IUzTAH

Moody’s cuts ratings for 26 Italian banks
By Vivianne Rodrigues in New York – Financial Times
Moody’s Investors Service on Monday cut the long-term debt and deposit ratings for 26 Italian banks by one to four notches, highlighting the tough environments in Italy and Europe.
http://jlne.ws/IUzTAO

Faith fades in eurozone firewall
By Robin Wigglesworth in London and Miles Johnson in Madrid – Financial Times
Fears that the eurozone’s firewall will prove insufficient to shield Spain and other embattled countries against the effects of a possible disorderly Greek exit from the currency union hit European financial markets on Monday.
http://jlne.ws/IUzTR6

ART CASHIN: The Greek Elections Could Finally Cancel Out The ‘Rationality Put’
Business Insider
A pretty key point from UBS floor guy Art Cashin. Basically, ever since Lehman, markets have operated with an implied “put” from governments, as they believe that if things get really bad, then authorities will step in to stop the carnage.
http://jlne.ws/IUzTR9

The eurozone must shrink to survive
Mohamed El-Erian – Financial Times
Extreme political dysfunction is now undermining a Greek economy already hobbled by imploding consumption, explosive joblessness, accelerating capital outflows and debt insolvency. The consequences are multi-faceted and extend well beyond the country’s borders. For the longer-term stability of Europe and the global economy, European leaders need to urgently redefine their historical unity project rather than leave it in the hands of increasingly disorderly conditions on the ground.
http://jlne.ws/IUzRJd

At JPMorgan, the ‘Perfect Hedge’ Remains Elusive
By ANDREW ROSS SORKIN – NY Times
At JPMorgan Chase, they called it “the icing” — as in the icing on the cake. The bank’s chief investment office — the one that incurred the $2 billion trading loss — was responsible for managing the firm’s risk.
http://jlne.ws/IUzTRm

J.P. Morgan’s Loss: Lessons From a Fiasco
BY FRANCESCO GUERRERA – WSJ
Thank you, James Dimon. No, not for stunning the markets with a trading loss of $2 billion-plus. Mr. Dimon, chairman and chief executive of J.P. Morgan Chase & Co., is showing that large banks are far too big to manage.
http://jlne.ws/IUzU7H

Environmental Trading News

Power Firms Slowdown
Wall Street Journal
Coping with falling prices and weakening demand, European utility companies are struggling to remain profitable as households and businesses throttle back on energy use in what’s become a protracted period of economic uncertainty in the region.
http://jlne.ws/LLFqeG

Oil industry to offer wish list to Dems, GOP
The Hill’s E2 Wire
The powerful American Petroleum Institute isn’t especially shy about its agenda, which includes opening more federal lands for drilling, preserving tax breaks and warding off stringent federal rules in areas such as hydraulic fracturing, among other goals.
http://jlne.ws/L4Y9VY

US production boom makes case for oil sands exports to Asia
The Hill’s E2 Wire
A senior executive with Enbridge, the company seeking to send Canadian oil sands west via pipeline toward Asian markets, says the U.S. production boom and falling imports help make the case for the project.
http://jlne.ws/KoGEyv

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

Exchange & ECN News

Listed groups calculate life minus Plus
By Simon Mundy and Philip Stafford – Financial Times
The demise of Plus Markets, London’s third-tier stock market, will force its 156 quoted companies to choose between relinquishing their public status, or joining one of the rival platforms now vying for their attention.
http://jlne.ws/IUzRZE

Disclosure Office Of SIX Swiss Exchange Publishes Its Annual Report For 2011 – Less Suspected Disclosure Violations Reported
Slight fall in the number suspected disclosure obligation violations reported by the Disclosure Office to FINMA despite more disclosure notifications overall.
http://jlne.ws/IUzSg2

CME Group Clearing Advisory
Decrease in Minimum Price Fluctuation for Cleared CME S&P GSCI-ER Swaps
http://jlne.ws/IUzSg7

FESE European Equity Market Report – April 2012 Figures
http://jlne.ws/IUzSgh

Toronto Stock Exchange, TSX Venture Exchange, TMX Select And Montreal Exchange Closed For Victoria Day
http://jlne.ws/IUzSwI

BM&F BOVESPA S.A. – Notice To Shareholders – Dividends Payment On 07.31.2012
http://jlne.ws/IUzUoq

Hellenic Exchanges Group Q1 2012 Financial Results
http://jlne.ws/IUzSNi

TMX Group CEO Delivered Tippie College Of Business Commencement Address
http://jlne.ws/IUzUEP

Banks, Brokers & Dark Pools

Meet Matt Zames, The Former Long-Term Capital Management Trader Who Is Now JPMorgan’s CIO
Business Insider
JPMorgan Chase has named a new Chief Investment Officer following the $2 billion trading loss related to derivatives in the bank’s London office. Ina Drew, a 30-year veteran at JPMorgan Chase who was responsible for risk management, announced she is retiring from her post as CIO following the recent trading blunder.
http://jlne.ws/IUzUVa

Deal Professor: Will JPMorgan Claw Back Pay?
New York Times
With Ina Drew and two JPMorgan traders leaving in the wake of trading loss, the question is whether JPMorgan will invoke its newly adopted clawback policy to penalize these executives.
http://jlne.ws/IUzT3B

Dimon to face JPMorgan shareholders
CNN Money
The Jamie Dimon apology tour is likely to continue on Tuesday as the CEO and chairman of the nation’s largest bank goes before shareholders at JPMorgan’s annual meeting.
http://jlne.ws/IUzUVj

Raymond J. Learsy: The Wall Street Journal’s Convoluted Whitewash Of Jamie Dimon
The Huffington Post
Today, one of the most convoluted, opaque editorials (“The Dimon Principle”) that the Wall Street Journal has been able to muster, alluding to JPMorgan Chase’s $2 billion trading loss, opened with the following hosanna to Jamie Dimon, and slap on the wrist to those in government and elsewhere who now feel that Dimon’s aggressive prop trading policies have finally come home to roost:
http://jlne.ws/IUzUVp

JPM Ratings Sank on Trading Loss
Zacks via Yahoo! Finance
Following the disclosure of $2 billion trading loss in the first six weeks of the current quarter, two major ratings agencies – Fitch Ratings and Standards & Poor’s (S&P) – revised their assessments for …
http://jlne.ws/IUzTk6

Nomura to integrate Instinet with bank
By Telis Demos in New York, Philip Stafford in London and Michiyo Nakamoto in Tokyo – Financial Times
Instinet, the agency brokerage that was one of the pioneers of electronic equity trading, is being integrated with the equity operations of its parent Nomura as the Japanese bank struggles to adapt to weak stock volumes.
http://jlne.ws/IUzTkb

Goldman Sachs Names Carlotti to Securities Division Role
Bloomberg
Goldman Sachs Group Inc. (GS) named Valentino D. Carlotti, the former president of its bank in Brazil, to run a newly created client-focused group within the sales and trading division, according to an internal memo.
http://jlne.ws/IUzTkj

Citi Names Usman Ahmed As Philippines Corporate, Investment Banking Head
Dow Jones
Citigroup Inc. (C) said Tuesday it has appointed Usman Ahmed as its corporate and investment banking head for the Philippines.
http://jlne.ws/IUzWfN

Morgan Stanley may have layoffs: Fox’s Gasparino
Market Watch
Morgan Stanley MS banking executives are expecting layoffs if the market in the second-quarter continues to be weak, Fox Business Network’s Charlie Gasparino reported Monday. Senior Morgan Stanley executives, in investment banking in particular, have been instructed to compile a list of the bottom 15% of performers, in what Gasparino said is a “fairly normal” move.
http://jlne.ws/IUzVsj

Barclays Drops ‘Capital’ From Its Name
IndexUniverse.com via Yahoo! Finance
Barclays Plc, the U.K.-based bank with operations around the world, dropped the “Capital” from its previous corporate brand “Barclays Capital” in a broad streamlining move that most conspicuously affected the name of its many indexes.
http://jlne.ws/IUzVsn

Barclays Looks To Sell Some French Operations -Report
Dow Jones
U.K. bank Barclays PLC is looking to sell its retail banking operation and other businesses in France, the newspaper Les Echos reported on Tuesday, without citing specific sources.
http://jlne.ws/IUzVsp

Guggenheim’s Walter Trims Deutsche Deal Amid Growth Push
Bloomberg
When Mark Walter, the chief executive officer of Guggenheim Partners LLC, ran Chicago investment firm Liberty Hampshire Co., a junior associate asked in 1996 why he decided to accept money from outside investors.
http://jlne.ws/IUzWwm

Wells Fargo names new chief compliance officer
Reuters via Yahoo! News
Wells Fargo & Co named Yvette Hollingsworth as its chief compliance officer, replacing Tim Marrinan who announced his retirement last year. Wells Fargo, the fourth largest U.S. bank, said Hollingsworth was most recently managing director and global head of Operations Compliance and Financial Crimes Compliance & Risk Management for Barclays Corporate & Investment Bank.
http://jlne.ws/IUzWwn

Deutsche Bank: Can An Indian Man Lead An Iconic German Company?
International Business Times
Deutsche Bank is as German as lederhosen, sauerkraut, beer and the Autobahn.
http://jlne.ws/IUzWwp

RBS Deploys Clear2Pay’s Open Payment Framework for SEPA in Europe
Business Wire via Yahoo! Finance
Clear2Pay, the international technology provider of next generation payment solutions for financial institutions, clearing and settlement companies and corporates announces that Royal Bank of Scotland has selected its Open Payment Framework as the technology of choice to power its payments services hub for SEPA.
http://jlne.ws/IUzWwu

JPMorgan Chase Announces Management Changes; Ina Drew To Retire – Matt Zames Named New CIO
http://jlne.ws/IUzVIU

Moody’s Downgrades Italian Banks – Outlooks Remain Negative – Actions Conclude The Review Announcements Of 15 February 2012 And Other Dates
http://jlne.ws/IUzWwy

U.S. Agencies Clarify Supervisory Expectations For Stress Testing By Community Banks
http://jlne.ws/IUzVJ1

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 Orders ACI Capital Group, L.L.C. and Alexandre P. Guimaraes to Pay Approximately $850,000 in Restitution and Penalty to Settle Forex Fraud Charges
The U.S. Commodity Futures Trading Commission (CFTC) today filed and simultaneously settled charges against Alexandre P. Guimaraes and his company, ACI Capital Group, L.L.C. (ACI), both of Irvine, Calif., for fraudulently soliciting customers to trade off-exchange foreign currency contracts (forex), issuing hundreds of false monthly account statements to customers to conceal trading losses, and misappropriating a portion of customer funds. Guimaraes also was charged with acting as an unregistered commodity trading advisor (CTA).
http://jlne.ws/IUzVZi

SEC Microcap Fraud-Fighting Initiative Expels 379 Dormant Shell Companies to Protect Investors From Potential Scams
The Securities and Exchange Commission today suspended trading in the securities of 379 dormant companies before they could be hijacked by fraudsters and used to harm investors through reverse mergers or pump-and-dump schemes. The trading suspension marks the most companies ever suspended in a single day by the agency as it ramps up its crackdown against fraud involving microcap shell companies that are dormant and delinquent in their public disclosures.
http://jlne.ws/IUzWMR

SEC Charges China-Based Company and Executive for Concealing Loans to Benefit His Family
The Securities and Exchange Commission today charged a China-based natural gas company and an executive for defrauding investors by secretly loaning company funds to benefit his son and nephew while failing to disclose the true nature of the loans.
http://jlne.ws/IUzWN5

New York Attorney General Schneiderman Announces Arrest Of Bronx Fraudster Who Operated Multi-Million Dollar Ponzi Scheme
http://jlne.ws/IUzYUW

Statement Regarding Commission Approval of MSRB Rule G-17 Interpretive Notice By SEC commissioners Daniel M. Gallagher And Troy A. Paredes
http://jlne.ws/IUzYV7

European Parliament Economic Committee To Vote On Limiting Bankers’ Bonuses And Strengthening Banks – Economic And Monetary Affairs
http://jlne.ws/IUzXjS

European Parliament – Fiscal Policy: Growth Dimension And Control Of New Commission Powers Needed
http://jlne.ws/IUzZbt

European Parliament – Fiscal Policy: MEPs Adopt Position Amid Division On Best Route To Take
http://jlne.ws/IUzXAq

Bank Capital Rules: Reform To Boost Risk Resilience And Lending To The Real Economy – European Parliament Economic And Monetary Affairs
http://jlne.ws/IUzZbE

EBA, EIOPA And ESMA Consult On Commission’s Review Of The Financial Conglomerates Directive
http://jlne.ws/IUzXAC

Implementing The Investor Education Agenda: IOSCO And IFIE To Hold Conference 20-22 May In Seoul
Co-Sponsored By The Korean Financial Investment Association, Major Event Will Feature Experts From Asia, North America, Europe, South America, The Middle East, And Africa
http://jlne.ws/IUzZs3

Rajat Gupta Opposes U.S. Request to Limit Defense at Trial
Bloomberg
Rajat Gupta, the former Goldman Sachs Group Inc. (GS) director accused of conspiring in an insider-trading scheme, shouldn’t be barred from arguing at trial that he’s being selectively prosecuted by the U.S. Attorney’s Office, his lawyers said in a court filing.
http://jlne.ws/IUzXR2

Investments – Indexes – Managed Futures – Managed Funds

JPMorgan: What’s a Derivative and Why Should You Care?
ABC News
It’s worth remembering the synthetic derivatives that helped cause the 2007/2008 financial crisis and the massive loss at JPMorgan Chase, are fairly new. There was time when the world worked just fine without them.
http://jlne.ws/IUzXR9

LCH.Clearnet Launches CDSClear Internationally
LCH.Clearnet SA (LCH.Clearnet) today announces the launch of its international CDSClear service, an extension to the established domestic French offering launched in March 2010. CDSClear now offers an innovative, multi-jurisdictional CDS clearing framework.
http://jlne.ws/IUzY7r

TIAA-CREF raises $2B for agriculture investments
Market Watch
TIAA-CREF has finished reaping funds for its agricultural investment company, raising $2 billion, including commitments from pension funds of Sweden and Canada’s British Columbia and Quebec.
http://jlne.ws/IUzZsb

Must Read: “Another Perspective”
Zero Hedge
From Paul Brodsky and Lee Quaintance of QBAMCO Another Perspective ( pdf ) Two weeks ago, before Jamie Dimon’s thoughtful diversion, Charlie Munger of Berkshire Hathaway instructed viewers of CNBC that “civilized people don’t buy gold, they invest in productive businesses”.
http://jlne.ws/IUzY7v

BUSTED: Hypocritical Peter Thiel Demands You Have A College Education To Work At His New Hedge Fund
Business Insider
Technology investor and hedge funder Peter Thiel is famous for encouraging kids to not go to college and instead jump feet first into the job market/entrepreneur scene.
http://jlne.ws/IUzZIE

Semi-Annual Changes To The NASDAQ Biotechnology Index
http://jlne.ws/IUzYo0

Technology News

Fund Firms Move onto NYSE Cloud
Financial Planning.com
Mutual fund operators are beginning to use cloud services offered by NYSE Euronext, in its 10-month old launch of a platform for worldwide use of computing resources by financial firms.
http://jlne.ws/IUzYo1

TMX Atrium Adds Canadian Market Data Feeds To Equinix NY4
TMX Atrium, provider of smarter infrastructure solutions for the financial community, today announced that it has expanded its infrastructure and is delivering Canadian market data into the Equinix NY4 data centre in Secaucus, New Jersey.
http://jlne.ws/IUzZZ0

Pensato Capital Implements Imagine Software for Intra-Day P&L, Risk Management, and Reporting
Imagine Software, a leading provider of real-time portfolio and risk management solutions worldwide, today announced that Pensato Capital selected its award-winning cloud-based system to replace the firm’s internal solution. The firm manages a European equity long/short strategy for their flagship Cayman fund and UCITS IV Absolute return fund, dealing in a variety of asset classes including cash, equities, CFDs and FX.
http://jlne.ws/IUzZZ6

Panopticon Releases Java Server Version Of Its EX Data Visualization Products
http://jlne.ws/IUzYEw

KVH To Expand Secure Private Cloud Connection – Enabling Flexible And Highly Reliable Cloud Environments
http://jlne.ws/IUzYEz

Media News

Corporate Board Member Names New Vice President and Director of Board Services
Corporate Board Member, a wholly owned subsidiary of NYSE Euronext (NYX), has named John McGonegal as Vice President & Director of Board Services. McGonegal will be responsible for heading the Board Education Program and other board service offerings.
http://jlne.ws/IUzZZh

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

Thai Futures Exchange To Launch USD Futures On June 5
The Thailand Futures Exchange plc (TFEX), under The Stock Exchange of Thailand (SET) group, will launch USD futures on June 5, enabling Thai investors and business operators to manage Thai baht through the derivatives market, enhancing long-term benefits for the country and all players concerned.
http://jlne.ws/IUA0fv

Thai Bourse, Capital Market Units Restore 59 Flood-Hit Schools
The Stock Exchange of Thailand (SET) joins forces with other capital market organizations in restoring 59 schools hit by the 2011 massive flood crisis through a project called “Restoring flooded schools, Building relationships with communities,” aiming to build sustainability to schools and communities.
http://jlne.ws/IUA0fB

Thai Bourse Sponsors Research On Capital Market
The Stock Exchange of Thailand (SET)’s Capital Market Research Institute (CMRI), gears up SET business strategy to strengthen Thai capital market’s capability by sponsoring research produced by 15 leading educational institutions, to promote sustainable capital market development.
http://jlne.ws/IUzYEG

Morgan Stanley Considers Buying Korean Savings Bank -Report
FOX Business
Morgan Stanley is conducting preliminary due diligence on Korea Savings Bank ahead of a possible takeover, on expectations that the local property sector is on the road to recovery after recent weakness, the Chosun Ilbo reported Tuesday, citing officials at the Korean financial authorities and the savings bank.
http://jlne.ws/IUA0fH

[OSE] Notice of Election of Candidates for the Member of the Board
http://jlne.ws/IUA0fI

Hong Kong’s Securities And Futures Commission.Review Of Sentence For Futures Manipulator
http://jlne.ws/IUA0fL

Monetary Authority Of Singapore: Reply To Parliamentary Question On Singapore’s US$4 Billion Pledge To The International Monetary Fund (IMF)
http://jlne.ws/IUA0wb

Second Meeting Of The Financial Stability Board Regional Consultative Group For Asia
http://jlne.ws/IUA1QA

Hong Kong’s Securities And Futures Commission: Court Varies Sentence Against Unlicensed Securities Advisor
http://jlne.ws/IUA1QJ

Frontier Markets

DTCC Opens Infrastructure Development Office in Chennai, India
Business Wire
The Depository Trust & Clearing Corporation (DTCC) announced today that it is expanding its India business centre in Chennai, India’s “tech centre,” into a technology infrastructure support and development office to help bolster its core, global, round-the-clock transaction processing, funds delivery and data storage businesses.
http://jlne.ws/IUA133

IMF Supports Establishment Of Regional Statistical Office For Arab Countries
http://jlne.ws/IUA138

NASDAQ Dubai Monthly Trading Report: April 2012
http://jlne.ws/IUA13g

Iran Holds International Exhibition Of Exchange, Bank And Insurance
http://jlne.ws/IUA27k

Miscellaneous News

With JPMorgan Chase’s Ina Drew Out, Few Top Wall Street Women Left Standing
Forbes
After a stunning $2 billion trading loss, JPMorgan Chase’s chief investment officer, Ina Drew, 55, will step down. The 30-year banking veteran oversaw the London unit responsible for the ill-fated trades and was one of three resignations announced so far, including a top London official, Achilles Macris, and a senior trader, Javier Martin-Artaj.
http://jlne.ws/IUA27p

John Lothian Newsletter

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Past JLN Newsletters

The City of London’s Supremacy Goes Very Deep

The City of London’s Supremacy Goes Very Deep

First Read $16,711/$300,000 (5.6%) ++++ FIA Asia-V: Asia-Pacific Exchanges Look Back and Ahead Sarah Rudolph and Suzanne Cosgrove - John Lothian News In the first panel at FIA's Asia-V 2020 Expo, exchanges in the Asia-Pacific looked back at their successes during a...

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