John Lothian Newsletter: LME Eliminates NYSE Euronext From Sale Bids; Deutsche Börse Group to reduce equities clearing fees; In about-face, Greece pays bond swap holdouts

May 16, 2012

The London Metal Exchange looks over the buyout bids it received, and tells NYSE Euronext, “Hey, thanks for playing. But no.” Eurex Clearing announces a fee cut of up to twenty percent for Xetra transactions. Greece decides not to stiff its bondholders in the middle of a contentious political reorganization, and makes its payout as required. In the top box, you’ll find JPMorgan commentary by Doug Ashburn from yesterday’s JLN FX Newsletter; and John connects the dots between winning, horrible trading losses, and food.

Observations – Statistics – Commentary

Death of Michael Warren, LME
It is with great sadness that I have to inform you that Michael Warren has died. Michael was instrumental in the development of the LME over the last five years having transformed the business from being a technological under-performer into a first class exchange, easily matching our peer group in terms of capacity and resilience. Michael was the first person I hired at the LME. He had a unique style, a way of doing business that was extremely effective and very engaging, I will miss him as a friend and as a colleague and I know that those of you who knew him will feel the same way.

Our condolences have been passed to his family who will be in our thoughts as they face this terrible circumstance.

– Martin Abbott, Chief Executive, London Metal Exchange

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CME To Launch Yuan-Denominated Products
BY FIONA LAW – WSJ
Chicago-based derivatives exchange operator CME Group Inc. plans to launch a slew of yuan-denominated products in the coming months, as it expects the Chinese currency to become a major global currency and aims to strengthen its foothold in the burgeoning yuan-denominated market. However, CME doesn’t plan to join the Hong Kong bourse in launching deliverable yuan-denominated derivatives just yet, even as it aims to expand its presence in Asia, Chief Executive Phupinder Gill told Dow Jones Newswires on Monday.
http://jlne.ws/IXIWjg

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JLN FX Newsletter: The Deaths Come in Threes: VaR, Opposition to Regulatory Reform, and the “Dimon Touch”
by Douglas Ashburn

Where were you when you heard the news of JPMorgan’s multi-billion dollar trading loss? Ironically, I was in a room full of financial regulators and compliance officers at the FIA Law & Compliance Division conference. While not on par with the flash crash or Lehman bankruptcy, the JPMorgan announcement and subsequent apology speech by CEO Jamie Dimon certainly had that “shot-heard-’round-the-world” feel to it. For in one swift motion, the announcement served to ring the death knell to three things – risk-based modeling, the mounting opposition to Dodd-Frank and other financial regulatory confinements and, of course, to Mr. Dimon’s status as the unscathed ambassador to the banking sector.

They say no one rings a bell at market tops. I say, “ding-ding-ding.”

On Monday, the FT published an excellent article by Frank Partnoy, calling for a return to the regulatory structure of the 1930s. In the article Partnoy lists the total losses sustained by some of the recent financial implosions, along with the then-current 95 percent confidence level value at risk(VaR) for each:

After the last financial crisis, it was widely assumed that the tools used to model risk and return – portfolio theory, financial engineering and securitization – would be relegated to the scrap heap. Yet here we are, post-bailout, witnessing the erosion of JPMorgan’s market capitalization due to imprudent risk management and trust in the model.

The trouble at JPMorgan also marked a personal high for Jamie Dimon. We can all remember the man’s swagger as he lectured the Financial Crisis Inquiry Commission (FCIC) in 2010 on how the banks were not to blame, and that Morgan did not even need the money received from TARP. We recall his most recent railings on how the Volcker Rule and Basel III will destroy the whole of commerce. In fact, since Mr. Dimon parted ways with Sandy Weill and Citigroup in 1998, he has had the spark of, well, a diamond. (collective moan.) He now appears wounded and contrite. Heads are beginning to roll. Will he be one of the casualties?

For the rest of the commentary and daily FX news, visit the JLN FX blog at http://www.jlnfx.com/

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BGC Partners Appoints Shawn McLoughlin as Director of New Business Development, North America
BGC Partners, Inc., a leading global brokerage company servicing the wholesale financial and property markets, today announced the appointment of Shawn McLoughlin as Director of New Business Development, North America.
http://jlne.ws/K7M6l9

BGC Partners Appoints Michael A. Riffice as Managing Director and Head of Futures and Options, Americas
BGC Partners, Inc., a leading global brokerage company servicing the wholesale financial and property markets, today announced the appointment of Michael A. Riffice as Managing Director and Head of Futures and Options, Americas.
http://jlne.ws/JSPCD2

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Penson Reports Advanced Strategic Discussions and 1Q12 Results
Business Wire via Yahoo! Finance
Penson Worldwide, Inc. reported today that it is actively engaged in advanced discussions regarding strategic transactions and will provide further information when appropriate.
http://jlne.ws/IXJ0iR

**** Nothing to tell yet, but when they do they will let us know.

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AX Surpasses 1,000 Auctions And 100 Million Shares
The AX Trading Network, the new electronic trading community announced today that it has surpassed the 1,000 auctions mark, representing over 100 million shares of available liquidity on The AX Trading Network. Nearly 300 unique auctions were posted on The AX in April, a 37% improvement over March. Since launch, completed auctions had an average cross size of over 43,000 shares.
http://jlne.ws/IXIWzx

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FSA cracks down on order flow payments
By Brooke Masters, Chief Regulation Correspondent – Financial Times
The UK Financial Services Authority has cracked down on the practice of paying for order flow, imposing new rules regarding conflict of interest and disclosure requirements on brokers that take the fees from market makers.
http://jlne.ws/IXIWzA

**** The words “crack” and “order flow payments” should not be used in the same sentence.

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NYSE Beefs Up Electronic Systems For Facebook Debut
By Jacob Bunge Of DOW JONES NEWSWIRES
NYSE Euronext said its Arca electronic exchange unit will devote special resources to handle demand for Facebook Inc. shares in the social network’s public-market debut Friday. The company said Arca will dedicate a trade-matching engine–the software that matches stock bids and offers–to support the keenly-awaited flotation.
http://jlne.ws/K3zFHE

**** Where is my like button?

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J.P. Morgan is too-big-to-regulate, critics say
By Ronald D. Orol, MarketWatch
J.P. Morgan Chase’s revelation of its surprise trading loss of more than $2 billion has renewed questions among former regulators and other observers about whether U.S. regulators can exercise adequate oversight of global bank operations.
http://jlne.ws/IXIYrg

**** Then don’t regulate them. That was easy.

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As One Trader at JPMorgan Sold Risky Contracts, Another One Bought Them
By AZAM AHMED – NY Times
For hedge funds that could smell blood in the water, it seemed to be an opportunity to take on JPMorgan Chase and win. It was, in fact, such a sweet trade that even another part of the bank couldn’t pass it up.
http://jlne.ws/IXIYrh

***** I hate that guy in the back row.

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How to Fix Financial Services Regulation
Paul Tustain – Resource Investor
As i was reading of yet another spectacular mismatch between bank managers’ competence and their remuneration, and this time at JP Morgan no less, I realized there is a simple solution which really could be implemented. Make the cost of regulation zero – or very nearly – for unlimited liability partnerships. Then let judicious self-interest, exercized by the partners themselves, do the rest.
http://jlne.ws/IXIYrm

**** See the story about sugar below for context to my thoughts about this story.

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The real Dimon Principle
By Mark Hulbert, MarketWatch
Following a winner is often a losing strategy. That ironic result traces to what all too often happens to a winner after he wins: His success goes to his head, leading to overconfidence. Especially after several wins in a row, he becomes dangerously prone to doing something really stupid.
http://jlne.ws/IXIYro

**** Winning is like eating too much sugar.

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Sugar can make you dumb, US scientists warn
AFP
Eating too much sugar can eat away at your brainpower, according to US scientists who published a study Tuesday showing how a steady diet of high-fructose corn syrup sapped lab rats’ memories. Researchers at the University of California Los Angeles (UCLA) fed two groups of rats a solution containing high-fructose corn syrup — a common ingredient in processed foods — as drinking water for six weeks.
http://jlne.ws/IXIYHC

**** All the rats scored very low on the ACT test and will be going to community rat college.

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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
Yvette Hollingsworth
http://jlne.ws/IVUEvT

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MarketsWiki Recent Updates

People

Chaz Shaw; John M. Damgard; Dave Creagan; Eric S. Cott; Yvette Hollingsworth; Stefan Widenfelt; Milton Friedman

Companies, Organizations and Groups

Cinnober Financial Technology; National Futures Association; Securities Industry News

Products

FTSE 100; Corn futures

Statistics

23,566,820 pages viewed, 6,875 articles, 140,123 edits
MarketsWiki Statistics
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Lead Stories

LME Eliminates NYSE Euronext From Sale Bids – Exchange
By Andrea Hotter Of DOW JONES NEWSWIRES
The board of the London Metal Exchange has eliminated NYSE Liffe, the London-based derivatives arm of NYSE Euronext (NYX), from the sale process for the 135-year old exchange, NYSE Euronext confirmed Tuesday.
http://jlne.ws/IXIWQ7

Deutsche Börse Group to reduce equities clearing fees
Eurex Clearing is to lower the clearing fees for equity transactions on Xetra and Xetra Frankfurt Specialist with effect from 1 July. The volume-dependent clearing fee will fall by 0.02 basis points for all participants. The volume-dependent fee will in future be 0.0008 percent for Xetra Frankfurt Specialist trading and between 0.0008 and 0.0003 percent in fully electronic Xetra trading – depending on monthly turnover volume. The new pricing model will save clearing customers up to 20 percent of total clearing fees.
http://jlne.ws/IXIWQ9

In about-face, Greece pays bond swap holdouts
Reuters via Yahoo! News
Greece made a last-minute about-face on Tuesday and paid bondholders who rejected an earlier debt exchange, a move likely to upset creditors who accepted just cents on the euro in a historic bond swap.
http://jlne.ws/IXIWQd

Rajoy warns Spain faces market exile
By Mary Watkins in London and Miles Johnson in Madrid – Financial Times
Spain’s prime minister warned his country risked being shut out of the financial markets unless it was allowed to press ahead with its package of deficit cuts, as yields on the country’s debt jumped.
http://jlne.ws/IXIWQe

DealBook: Addressing Pay and Protesters at Morgan Stanley’s Annual Meeting
New York Times
The company’s annual meeting was dominated by questions – and assertions – from individuals about financial regulation and bankers’ pay. But shareholders overwhelmingly approved executive compensation packages.
http://jlne.ws/IXIWQh

JPMorgan loss shows risks in safe-haven banks
Reuters via Yahoo! News
JPMorgan Chase & Co’s $2 billion-plus trading loss stems from an embarrassment of riches, as like other banks that came out well from the financial crisis it has surplus money burning a hole in its pocket.
http://jlne.ws/IXIWQj

Bankers discuss curbing rating agencies
By Patrick Jenkins, Banking Editor – Financial Times
Up to 20 of Europe’s top banks will on Wednesday discuss a plan to foil the dominance of the much criticised big three credit agencies at a private meeting of finance directors in Frankfurt.
http://jlne.ws/IXIYHO

Hedge or Bet? Parsing a Trade
BY KATY BURNE, AARON LUCCHETTI AND GREGORY ZUCKERMAN – WSJ
J.P. Morgan Chase & Co.’s trading losses of more than $2 billion centered on a complicated three-step strategy that could raise new questions about whether the bank was hedging its risks or making a big bet. The size and complexity of the trades suggest to some critics that the bank might have been seeking to generate profits rather than to simply protect its giant portfolio of corporate loans and other holdings from losses.
http://jlne.ws/IXIYHS

Environmental Trading News

EU emissions fall as aviation carbon trading spat intensifies
Business Green
Power plants and factories covered by the EU’s emissions trading system (EU ETS) cut their greenhouse gas output by more than two per cent last year, despite Europe’s modest economic recovery.
http://jlne.ws/KuzY0G

China, India Airlines Fail to Comply With Europe’s Carbon Rules
Bloomberg
China and India’s airlines failed to submit carbon-dioxide emissions data for 2011, rebuffing European rules that seek to expand the region’s emissions trading system to include aviation.
http://jlne.ws/KtMtJS

COLUMN-UK’s cheapest new power source? A cable: Gerard Wynn
Reuters
Laying more cables to Europe will be an important complement to new power plants as Britain navigates the cheapest route to replace ageing generation assets and makes difficult choices between gas, wind or nuclear power.
http://jlne.ws/JIcdko

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

NYSE Euronext and China Financial Futures Exchange Sign Memorandum of Understanding
NYSE Euronext (NYX) and the China Financial Futures Exchange (CFFEX) today signed a Memorandum of Understanding (MOU) to promote a bilateral partnership to support the development of the exchanges futures and options markets. The agreement was designed to explore opportunities for extending the global reach of both exchanges. The MOU will enable the two exchanges to explore opportunities for information sharing; exchanging and training employees; as well as business cooperation such as joint research into developing strategies for the derivatives market.
http://jlne.ws/IXIYHV

Officials Consider Adding ‘Odd Lot’ Trades To Consolidated Tape
By Matt Jarzemsky Of DOW JONES NEWSWIRES
Exchange officials are considering adding “odd lots” — transactions involving fewer than 100 shares — to the widely used stock-price tracker known as the consolidated tape, which could give everyday investors a better view of small-scale transactions that account for a growing slice of overall trading. The proposal comes amid worries some traders are able to avoid scrutiny by keeping activity below the 100-share threshold. Officials have also expressed concern that average investors are missing subtle price fluctuations that aren’t reflected in the tape, which aggregates trade data across the 13 U.S. stock exchanges as well as off-exchange trading venues such as dark pools, private markets that don’t display “bid” and “ask” prices.

NYSE Euronext, SRS Advogados, Banco Carregosa and Deloitte promote SME stock exchange acces
NYSE Euronext Lisbon, Sociedade Rebelo de Sousa (SRS) & Advogados Associados, RL, (Law Firm and Associates), Deloitte Consultants and Banco Carregosa (Bank), announce an agreement aimed at promoting the listing of Small and Medium Enterprises (SMEs) on the NYSE Alternext market. The agreement will create a unique multidisciplinary team, with legal, financial and brokerage skills, that will act as a sole access point to assist SMEs in their listing process on NYSE Alternext, the tailor made market for small and mid cap companies.
http://jlne.ws/IXIX6G

Deutsche Boerse CEO Confirms ’12 Growth Goals Despite Subdued Start
By Ulrike Dauer, Of DOW JONES NEWSWIRES
Deutsche Boerse AG Wednesday said the German exchange operator’s 2012 growth targets remain unchanged, despite a subdued first quarter.
http://jlne.ws/IXIX6I

International Securities Exchange And AlphaClone Announce Partnership To License And Promote Innovative Hedge Fund Position Replication Index
The International Securities Exchange (ISE), a leading US options exchange, and AlphaClone LLC, the leader in hedge fund position replication, today announced their partnership to promote AlphaClone’s innovative hedge fund position replication index, the AlphaClone Hedge Fund Long/Short Index.
http://jlne.ws/IXIX6O

Spain’s BME offers co-location to market members
FinExtra
BME announced today it will offer co-location services to all its Members, after expanding its communication infrastructure and IT systems in its Data Processing Centre, in Madrid. In addition, BME will provide high-tech facilities to house Member’s automatic trading systems.
http://jlne.ws/K6jl9a

Disclosure Office of SIX Swiss Exchange publishes its annual report for 2011
http://jlne.ws/IXIXn5

NYSE Euronext welcomes Core Laboratories N.V. to its European market
http://jlne.ws/IXIXnb

Deutsche Borse: IPO in Frankfurt for Chinese company Haikui Seafood AG
http://jlne.ws/IXIXnd

The Disciplinary Committee Of NASDAQ OMX Stockholm Fines Morgan Stanley
http://jlne.ws/IXIXnf

ISE To List Options On Facebook On May 29
http://jlne.ws/IXIXnk

Banks, Brokers & Dark Pools

Subdued Dimon is confronted over $2B trading loss
Channel 8 San Diego
The CEO of JPMorgan Chase offered a quick but blunt apology to shareholders Tuesday for a $2 billion trading loss that “should never have happened” and survived a push to strip him of the title of chairman of the board.
http://jlne.ws/IXIYYm

Goldman, Merrill E-Mails Show Naked Shorting, Filing Says
Bloomberg
Goldman Sachs Group Inc. (GS) and Merrill Lynch & Co. employees discussed helping naked short-sales by market-maker clients in e-mails the banks sought to keep secret, including one in which a Merrill official told another to ignore compliance rules, Overstock.com Inc. (OSTK) said in a court filing.
http://jlne.ws/IXIYYn

ANZ to Inject $300 Million in China Unit, Expand to 20 Branches
Bloomberg
Australia & New Zealand Banking Group Ltd., Australia’s third-largest lender, plans to invest A$300 million ($300 million) and more than triple its branch network in the world’s fastest-growing major economy.
http://jlne.ws/IXIYYo

ICAP Preliminary statement for the year ended 31 March 2012
http://jlne.ws/IXJ0iP

Big Money in Guessing Bank’s Next Move
By GREGORY ZUCKERMAN And KATY BURNE – Dow Jones
There is a new game in the financial markets: guessing the size and specifics of J.P. Morgan Chase & Co.’s losing trade. The bank has remained tight-lipped since disclosing on Thursday that it had lost more than $2 billion on bad derivatives trades. That has presented a challenge for hedge funds and other asset managers: If they can figure out how much the bank still holds and the components of its trades, they may be able to figure out how to profit from that information.
http://jlne.ws/IXJ0iS

Dimon pushes Blankfein off hotseat at charity gala
Reuters via Yahoo! News
For the first time in months, Goldman Sachs CEO Lloyd Blankfein was off the hotseat. As Wall Street’s biggest hedge fund managers and top bankers flocked to a charity gala in New York Monday night, the buzz was all about JPMorgan Chase & Co’s disastrous trading losses and the pressure on CEO Jamie Dimon.
http://jlne.ws/IXJ0iX

Anti-Wall Street protesters upstage Morgan Stanley meet
By Lauren Tara LaCapra | Reuters
Anti-Wall Street protesters upstaged Morgan Stanley’s annual meeting on Tuesday, lobbing tough questions at Chairman and Chief Executive James Gorman and shouting negative comments over a bank official who was attempting to read a tally of shareholder votes. The 53-year-old CEO kept his cool through the meeting, but took protesters to task after one accused him and the board of directors of “immoral” and “unethical” practices.
http://jlne.ws/IXIZeF

No JPMorgan, UBS Heads To $15 On Wealth Management Strength
Forbes
UBS’s recent earnings shows the strength of its wealth management unit as the banking group has done quite well as the global financial environment improves.
http://jlne.ws/IXJ0iY

RBS Said to Lose Three in U.S. Credit Trading as Broker Shrinks
Bloomberg
Royal Bank of Scotland Group Plc, the U.K.’s biggest government-controlled bank, lost its U.S. credit- trading head and two junk-bond salesmen as its debt-brokerage team in the region shrinks.
http://jlne.ws/IXJ0j1

TD Bank to Settle Overdraft Charges
Zacks via Yahoo! Finance
Toronto-Dominion Bank has agreed to pay $62 million in settlement of a lawsuit filed against it by its customers accusing it of unreasonable assessment and collection of overdraft fees.
http://jlne.ws/IXIZeI

GAIN Capital Hires Industry Veteran Muhammad Rasoul as Chief Product Officer
PR Newswire
GAIN Capital Holdings, Inc., a leading global provider of online trading services, announced today the appointment of Muhammad Rasoul as Chief Product Officer and member of GAIN’s executive management team.
http://jlne.ws/IXIZeM

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

SEC Recommends Changes in Accounting for Derivatives
Accounting Today
The Securities and Exchange Commission has passed along a request to the Financial Accounting Standards Board that it consider making changes in how to account for derivatives contracts designated as hedging instruments.
http://jlne.ws/IXJ0zh

FSA decides to ban BGC senior executive Anthony Verrier
The Financial Services Authority (FSA) has published a decision notice indicating that it has decided to prohibit Anthony Verrier (a senior executive at BGC) from performing any function in relation to any regulated activity in the financial services industry. The FSA believes that Verrier is not a fit and proper person due to concerns over his honesty, integrity and reputation.
http://jlne.ws/IXIZeT

NFA: Public Comment on the Principles for the Valuation of Collective Investment Schemes Consultation Report
http://jlne.ws/IXIZeX

Alberta Securities Commission Provides Update With Respect To The Review Of The TMX/Maple Transaction
http://jlne.ws/IXJ0zs

The IOSCO MMoU: Ten Years Of Enhancing Cross-Border Enforcement Cooperation
The Annual Conference of the International Organization of Securities Commissions (IOSCO) in Beijing marks the 10th anniversary of the Multinational Memorandum of Understanding[1], the instrument used by securities regulators to help ensure effective global regulation and preserve and strengthen securities markets around the globe.
http://jlne.ws/IXJ0zx

IOSCO Prepares For The Regulatory And Financial Challenges Ahead
http://jlne.ws/IXIZvf

[ASIC] Updated guidance for downstream acquisitions
http://jlne.ws/IXJ0PM

ASIC acts against Melbourne liquidator
http://jlne.ws/IXJ0PT

AMF and ACP Academic Symposium: “The Consequences of the Financial Crisis on Household Savings and Distribution of Financial Products”
http://jlne.ws/IXIZvk

European Parliament – Bank Capital Rules – 14 May Economic And Monetary Affairs Committee Vote
http://jlne.ws/IXJ0PZ

Bank Capital Rules: General Approach Agreed Ahead Of Talks With European Parliament
http://jlne.ws/IXIZvo

Investments – Indexes – Managed Futures – Managed Funds

ResCap Filing May Trigger $858 Mln Worth Of CDS Payouts
By Katy Burne Of DOW JONES NEWSWIRES
About $858 million worth of payouts on credit-default swaps tied to mortgage lender Residential Capital LLC are expected to change hands between buyers and sellers of the insurance-like protection, following the company’s bankruptcy filing Monday.
http://jlne.ws/IXJ16g

Over 113 Million Tonnes Of OTC Coal Options Cleared By LCH.Clearnet – Driven By Record Month Of 17.2 Million Tonnes In April 2012
http://jlne.ws/IXJ16i

K.K.R. Said to Be in Talks to Buy Stake in Prisma Capital
By AZAM AHMED – NY Times
Kohlberg Kravis Roberts, the giant private equity fund, is in talks to buy a stake in Prisma Capital Partners, according to people with knowledge of the matter. A deal would give K.K.R. a piece of a money manager that focuses on hedge funds, an area where rivals like the Blackstone Group have been expanding.
http://jlne.ws/IXIZLH

Bet on Greek Bonds Paid Off for ‘Vulture Fund’
By LANDON THOMAS Jr. – NY Times
When Greece announced on Tuesday that it had made a E436 million bond payment to the hold-out investors who rejected the country’s historic debt revamping deal in March, the decision came as no surprise. After all, with the Athens government in disarray and investors wary of having anything to do with Greece, now would be a bad time to make things worse by defaulting on a bond payment. What’s news is where most of that money went.
http://jlne.ws/IXJ16p

Hatteras Funds Expands Investment Management Team
PR Newswire via Yahoo! Finance
Hatteras Funds, a boutique alternative investment specialist providing unique alternative investment solutions for financial advisors and their clients, announced that Thomas Riegert, CFA, has joined the firm as Associate, Portfolio Management.
http://jlne.ws/IXIZLM

Gottex acquires fund-of-hedge-funds Penjing in Asia push
Reuters via Yahoo! Finance
Swiss fund-of-hedge-funds manager Gottex is buying Hong Kong-based Penjing Asset Management, a year after Gottex co-founder Max Gottschalk moved to Asia to accelerate the firm’s expansion in the region.
http://jlne.ws/IXJ16q

Aite Group capital market news
This week, Aite Group’s securities & investments analysts explore the latest trends in multi-dealer electronic FX options trading platforms and legal entity data management.
http://jlne.ws/K7K3O7

Goldman Sachs Asset Management Acquires Dwight Asset Management from Old Mutual Asset Management
Business Wire via Yahoo! Finance
Goldman Sachs Asset Management announced today it has completed its acquisition of Dwight Asset Management , a Vermont-based stable value money manager, from Old Mutual Asset Management.
http://jlne.ws/IXJ16s

Northern Trust Wins Custody Risk Americas Awards for Hedge Fund Administration and Transition Management
Business Wire
Northern Trust announced today that it has been named Hedge Fund Administrator of the Year and Transition Management Provider of the Year by Custody Risk magazine in its Americas Awards 2012, which recognize excellence in the securities services industry.
http://jlne.ws/IXJ16u

JPMorgan loss exposes derivatives dangers
By Michael Mackenzie, Nicole Bullock and Telis Demos in New York – Financial Times
Credit derivatives were the brainchild of savvy bankers at JPMorgan in the 1990s. Now the bank and one of Wall Street’s most controversial products are under intense scrutiny in what will be a crucial period for the market.
http://jlne.ws/IXIZLY

Wanted — iron ore traders
By Silvia Antonioli and Jacqueline Cowhig – Reuters
For commodities traders looking for a six figure salary with a bonus of up to 300 percent, iron ore is the new pot of gold.
http://jlne.ws/IXJ02c

Ultra-Wealthy Increase Alternative Allocation
Financial Planning.com
Ultra-high net worth investors are decreasing their exposure to the U.S. stock market by allocating more to alternative investments, according to the Institute for Private Investors annual Family Performance Tracking survey.
http://jlne.ws/IXJ1mO

The Dow Jones Credit Suisse Hedge Fund Index Finished Down 0.04% in April
http://jlne.ws/IXJ1mS

ISDA Americas Credit Derivatives Determinations Committee: Residential Capital A Bankruptcy Credit Event
http://jlne.ws/IXJ02q

SunGard Identifies Ten Trends for Utilities in Energy Trading & Risk Management
http://jlne.ws/IXJ1n1

BM&FBOVESPA Starts Trading In Public Utilities ETF – The New ETF Is For Stocks In The Electricity, Water And Sewerage And Gas Sector
http://jlne.ws/IXJ02t

New ETF Starts Trading On BM&FBOVESPA
http://jlne.ws/IXJ02u

Technology News

Tessenderlo Group Selects SunGard’s AvantGard for Hosted Treasury, Payments and Managed Bank Communications Services
Tessenderlo Group, one of the world’s largest chemical companies with reported revenue of 2.4 billion Euros last year, has selected SunGard’s AvantGard for treasury and payments management.
http://jlne.ws/IXJ2XT

Brady Energy Solution Selected By Freepoint For Power Scheduling
http://jlne.ws/IXJ2XV

Numerix Introduces New Instrument Coverage and Usability Features in LiquidAsset 2.0
http://jlne.ws/Mk4Pz0

IRESS Selects Equinix To Support Its Global Business Expansion
Leading Australian Financial Technology Provider Deploys In Equinix IBX Data Centers In Hong Kong, Singapore And London
http://jlne.ws/IXJ1Dw

Equinix Selected For Global Roll-Out Of BT Radianz Venue Services
http://jlne.ws/IXJ1Dz

Nordic IT Services Provider, Tieto, Offers UK Stockbrokers And Private Client Wealth Managers A Next-Generation Securities Solution
http://jlne.ws/IXJ1TO

IPC’s Connexus Provides Reliable and Secure Connectivity to Eris Exchange
http://jlne.ws/IXJ1TR

Mantara Combines EMS Platform with Ultra-Low Latency Risk and Connectivity through Acquisition of UNX
http://jlne.ws/IXJ2Y2

Media News

NASDAQ OMX Corporate Solutions Launches Integrated Platform For Media Monitoring And Sentiment Analysis
http://jlne.ws/IXJ1U1

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

South Korea Pension Fund To Invest More In China
Dow Jones
South Korea’s national pension fund, the world’s fourth-largest, said Wednesday it plans to seek approval from China early next year to increase its investments in yuan-denominated Chinese stocks, as part of plans to diversify its overseas investment portfolio amid the U.S. dollar’s weakness.
http://jlne.ws/IXJ1U6

JP Morgan Names Citigroup’s Jing Zhao Emerging Asia Financial Institutions Head – Memo
Dow Jones
JP Morgan Chase & Co. has named Citigroup Inc’s Jing Zhao as head of financial institutions for emerging Asia, which refers to the Asia-Pacific region excluding Australia and Japan, according to a memo seen by Dow Jones Newswires Tuesday.
http://jlne.ws/IXJ2ak

Agricultural Bank Of China Buys Hong Kong Office Building For HK$4.88 Billion
Dow Jones
Agricultural Bank of China Ltd. bought an office building in Hong Kong for HK$4.88 billion (US$629 million) to serve as its regional headquarters, Colliers International, which advised on the purchase, said Tuesday.
http://jlne.ws/IXJ2al

Tokyo Grain Exchange To End Publishing The TG Index
http://jlne.ws/IXJ2aw

Tokyo Grain Exchange: Change To Raw Sugar Futures Specifications
http://jlne.ws/IXJ3et

Tokyo Grain Exchange: Suspension Of Generation Of May 2013 Contract Month And Onward Contract Months For Arabica Coffee Futures
http://jlne.ws/IXJ3ev

Frontier Markets

RBS to advise foreign clients on sukuk issuances-The Malaysian Reserve
Reuters via Yahoo! Finance
The Royal Bank of Scotland Group plc (RBS) hopes to advise foreign clients to issue four to six ringgit-based sukuk over the next 12 months while it concentrates on building its wholesale banking business in Malaysia.
http://jlne.ws/IXJ2aC

DIFC: Asiya Investments Launches Advisory Services Arm – Expansion Of The First GCC Based Investment Firm Focussed On Asia
http://jlne.ws/IXJ2qQ

Bursa Malaysia Sector Update
http://jlne.ws/IXJ3eB

Miscellaneous News

Could Taxes Have Prevented Rampage Of The London Whale?
Forbes
Now that a once-obscure JPMorgan Chase derivatives trader named Bruno Iksil has become infamous as the London Whale, I suppose it is time to ask whether what he does should be subject to new taxes.
http://jlne.ws/IXJ2r5

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