John Lothian Newsletter: HK Exchanges gets OK to launch yuan futures; Traders call for changes to broker reporting; Glitches halt new Goldman trade platform

May 29, 2012

The Hong Kong Exchange scores a World First, receiving approval to begin trading yuan currency futures later this year.  Fund managers are calling on brokers to change how they report trades, allowing better understanding of who is getting the best results. Goldman Sachs becomes the latest trading platform provider to trip up, announcing delays in the release of its new platform due to “logistical issues.”

First Read

The Hunch, the Pounce and the Kill: How Boaz Weinstein and Hedge Funds Outsmarted JPMorgan
By AZAM AHMED – NY Times
BOAZ WEINSTEIN didn’t know it, but he had just hooked the London Whale. It was last November, and Mr. Weinstein, a wunderkind of the New York hedge fund world, had spied something strange across the Atlantic. In an obscure corner of the financial markets, prices seemed out of whack. It didn’t make sense. Mr. Weinstein pounced.
http://jlne.ws/N4oDUL

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IntercontinentalExchange Announces Record Brent Crude Option Volume
IntercontinentalExchange, a leading operator of global regulated futures exchanges, clearing houses and over-the-counter (OTC) markets, reported record daily volume in ICE Brent Crude options of 78,508 contracts on May 24, 2012. The previous daily volume record was 63,494 on May 2, 2012.
http://jlne.ws/N4oDUU

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CBOE Claims Victory Over ISE In Legal Fight Over Index Options
By Jacob Bunge Of DOW JONES NEWSWIRES
The parent of the Chicago Board Options Exchange on Friday claimed victory over a rival stock-options market in a years-long battle over the right to offer contracts on major stock-market indexes. The Illinois Appellate Court ruled in favor of CBOE Holdings Inc. (CBOE) and major index providers in a legal dispute with the International Securities Exchange, which has sought to list its own options linked to equity benchmarks such as the Standard & Poor’s 500 and the Dow Jones Industrial Average.
http://jlne.ws/N4oEbg

**** The battle won, but my money is on the war continuing.

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Borje Ekholm Named Interim Chairman Of Nasdaq OMX Board
By Jacob Bunge Of DOW JONES NEWSWIRES
The board of Nasdaq OMX Group Inc. elected Borje Ekholm, chief executive of Investor AB, to serve as interim chairman following the retirement of former chairman H. Furlong Baldwin.
http://jlne.ws/N4oEbm

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Modest Proposals for Financial Reform: Regulation as Grade-Grubbing
The Atlantic via Yahoo! Finance
The holy grail of regulation, in my opinion, is to harness the power of private sector competition to provide, and constantly improve on, the regulation’s goals. Can this be done for financial regulation? Yes.
http://jlne.ws/N4oEbs

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Insight: Pioneer Ireland fears austerity was in vain
Reuters via Yahoo! News
Returning from an annual European trade show last month on a flight packed with successful Irish retailers, Ian Martin felt his country’s battered economy might finally be turning around. A supplier of first aid and hygiene products to Irish companies, Martin has spent the last four years trimming costs, laying off some staff and cutting the hours of other employees.
http://jlne.ws/N4oErO

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Cinnober Keynote Speakers: EuroCCP’s Chan Sees Quality And Governance As Essential To CCP Competitiveness
Diana Chan, CEO of European clearing house EuroCCP, gave an initiated and highly appreciated presentation kicking off the new inspirational Cinnober Keynote Speakers series earlier this week. The Keynote Speakers are intended as informal inspiration primarily for Cinnober’s own staff, where notable people from the financial world share current affairs and experiences.
http://jlne.ws/N4oGQr

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The IMF on UK macroeconomic policy: Part 2
Martin Wolf – Financial Times
In the second part (you can read Part 1 here) of this comment on the concluding statement of the International Monetary Fund’s recent mission to the UK, I intend to address one issue: Is it the case that greater flexibility on fiscal policy, to support demand, might destroy the UK government’s credibility, with disastrous results?
http://jlne.ws/N4oGQy

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‘Whale’ makes a big splash on risk models
By Pablo Triana – Financial Times
The whole world has by now heard of the London whale, widely dubbed Voldemort. Operating from JPMorgan Chase’s imperial tower in Canary Wharf, traders in the bank’s Chief Investment Office have managed to suffer a $2bn mark-to-market loss on what appear to be credit-related positions apparently linked to a bunch of US corporate names.
http://jlne.ws/N4oH6X

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Madoff Case Is Paying Off for Trustee ($850 an Hour)
By ANDREW ROSS SORKIN – NY Times
Irving H. Picard, the court-appointed trustee seeking to recover funds for the victims of Bernard L. Madoff’s multibillion-dollar Ponzi scheme, has been described as a modern-day Robin Hood. For nearly four years, he has been working to pay back those who were swindled by Mr. Madoff, some who lost their entire life savings.
http://jlne.ws/N4oEYQ

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Warning: America’s new Age of Austerity starts now
By Paul B. Farrell, MarketWatch
Warning, tighten your belts, America’s new Age of Austerity is already here, today. There I said it. I admit it. And you better too. Prepare now. Could be like the 1930s depression austerity.
http://jlne.ws/N4oEYT

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MarketsWiki

MarketsWiki Page of the Day
Byron Trott
http://jlne.ws/LNmvny

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MarketsWiki Recent Updates

People

John Denza; Byron Trott; Steffen Köhler

Companies, Organizations and Groups

CME Clearing

Miscellaneous

Clearing house; Job Postings; Upcoming Events

Statistics

24,307,244 pages viewed, 6,872 articles, 141,290 edits
MarketsWiki Statistics

Lead Stories

HK Exchanges gets OK to launch yuan futures
Market Watch
Hong Kong Exchanges & Clearing Ltd., operator of the city’s stock and derivatives exchange, said late Monday it got approval from the securities regulator to launch yuan currency futures in the third quarter, becoming the world’s first provider of exchange-traded currency futures settled in the yuan.
http://jlne.ws/N4oHUr

Traders call for changes to broker reporting
By Luke Jeffs – Reuters
Europe’s top fund managers have called on the region’s main investment banks to change how they report trades, arguing a small technical switch will enable the managers to see which brokers get the best results.
http://jlne.ws/N4oHDX

Glitches halt new Goldman trade platform
By Tracy Alloway in New York – Financial Times
Goldman Sachs has been forced to delay the launch of its new corporate bond trading platform after a series of “logistical issues” beset the investment bank’s foray into electronic fixed-income trading.
http://jlne.ws/N4oIaX

Lawmakers Prepare To Examine U.S. Exchanges, Trading
By Jacob Bunge Of DOW JONES NEWSWIRES
U.S. lawmakers plan to hold a hearing next month on how the transformation of domestic capital markets by technology is affecting average investors, with the fumbled flotation of Facebook Inc. still fresh in shareholders’ minds.
http://jlne.ws/N4oIb1

Newedge moves to cut Greece exposure
By Luke Jeffs – Reuters
Newedge, a broker owned by French banks Credit Agricole and Societe Generale, has told clients it will do no new business in Greece, in the latest sign trading houses are preparing for the country leaving the euro zone.
http://jlne.ws/N4oIbc

Shanghai plans dual-currency oil contract
By Leslie Hook in Beijing – Financial Times
The Shanghai Futures Exchange aims to launch this year a physical crude oil contract that will be open to foreign investors and traded in both renminbi and US dollars, marking China’s first dual-currency commodities contract.
http://jlne.ws/N4oKzR

Yugoslavia’s lessons for Europe’s disunion
By Charles Lane – Washington Post
Once upon a time in Europe, there was a confederation. It stretched from the Alps to the Adriatic and straddled the ancient line between Western Christendom and Byzantium. The confederation promised an eternal end to the wars that had historically bedeviled its component peoples. It built goodwill and interdependence through a common currency and free movement of labor and capital.
http://jlne.ws/N4oII0

Investors flee Spanish debt amid bank bailout fears
AFP via Yahoo! News
Spanish Prime Minister Mariano Rajoy said Monday the state was struggling to borrow as its risk premium hit a euro-era record and fears spread over its stricken banks.
http://jlne.ws/N4oII9

Spanish PM insists banks won’t need EU rescue
Philly.com
Conservative Spanish Prime Minister Mariano Rajoy insisted Monday that the country’s banking sector would not need an international rescue as concern over the bailout of nationalized lender Bankia sent its stock price plummeting while Spain’s borrowing costs soared.
http://jlne.ws/N4oIYz

Moody’s Fading Relevance Exposed in Nordic Downgrades
Bloomberg
The response to the Moody’s Investors Service downgrade of the biggest Nordic banks was rising bond and share prices. The reaction is the latest sign that investors are paying less attention to the views of rating companies and relying more on their own analysis to determine whether to buy or sell.
http://jlne.ws/N4oIYB

Deutsche Bank’s Fitschen Says Failed Greek State Lacks Leaders
Bloomberg
Greece is a “failed state” and the population and business community don’t see a path out of the crisis, said Juergen Fitschen , Deutsche Bank AG (DBK) ‘s designated co- chief executive officer.
http://jlne.ws/N4oLnc

As Euro Bond Wins Supporters, Details Remain Vague
By JACK EWING and PAUL GEITNER – NY Times
To euro zone countries in need, euro bonds would be a noble expression of European solidarity and a crucial instrument for preserving the common currency. To Germans and quite a few others, though, euro bonds would be a lot like co-signing a loan for a deadbeat brother-in-law.
http://jlne.ws/N4oLDC

Europe Turning To U.S. for Loans
BY DANA CIMILLUCA AND SERENA NG – WSJ
In the latest symptom of Europe’s financial turmoil, the region’s riskier companies are bypassing banks and investors at home and turning to the U.S. for loans.
http://jlne.ws/N4oLDL

Bats Unveils New Market Data Strategy
WSJ.com Bats-Chi-X Europe, which accounts for a quarter of pan-European equities trading, has unveiled plans to begin charging for market data for the first time since its inception in 2008, as it looks to capitaliz e upon its increased market share following its merger with Chi-X Europe.
http://jlne.ws/KXJk2u

Advanced Markets FX-Fortex Partner To Offer UltiMT METATRADER-DMA Platform
http://jlne.ws/JSdmDk

BTG Pactual signs for AC Plus
Asset Control, provider of financial data management solutions and services, today announced that BTG Pactual, Brazil’s leading investment bank, will implement AC Plus.
http://jlne.ws/KCiChg

Regulatory

Emir set for summer consultation
Tim Cave – Financial News
One of Europe’s key regulatory responses to the financial crisis is set to be fleshed out with industry participants over six weeks in July and August, in a move that one source close to the agency drafting the rules said was “not ideal”.
http://jlne.ws/N4oJvI

Disclosure reprieve for activist investors
By Dan McCrum in New York – Financial Times
Activist investors appear to have won at least a reprieve from new regulation that would force them to declare their hand earlier when building a stake in a company.
http://jlne.ws/N4oLUn

CFTC Staff to Host a Public Roundtable to Discuss Proposed Regulations Implementing Core Principle 9 for Designated Contract Markets
The Commodity Futures Trading Commission (CFTC) today announced that staff will hold a public roundtable on Tuesday, June 5, 2012, from 9:30 a.m. to 12:30 p.m., to discuss the proposed regulations implementing Core Principle 9 for designated contract markets.
http://jlne.ws/N4oJMg

FSA introduces rules telling banks to display depositor compensation arrangements
The Financial Services Authority (FSA) will require all banks, building societies and credit unions to prominently display posters and stickers in branches and on websites explaining which deposit guarantee scheme applies to their customers’ deposits. These rules will take effect from 31 August this year.
http://jlne.ws/N4oMaW

New Chairman of the Practitioner Panel appointed
The Financial Services Authority (FSA) has announced that Joe Garner has been appointed chairman of the Financial Services Practitioner Panel, with effect from 1 June 2012. He will succeed Russell Collins who is retiring from Deloitte at the end of May.
http://jlne.ws/N4oMrf

IOSCO Consults On Certain Internal Controls And Procedures Of The Credit Rating Agencies
The Technical Committee of the International Organization of Securities Commissions (IOSCO) has published a consultation report, Credit Rating Agencies: Internal Controls Designed to Ensure the Integrity of the Credit Rating Process and Procedures to Manage Conflicts of Interest.
http://jlne.ws/N4oMrq

ASIC launches national Business Names Register
http://jlne.ws/N4oMHI

Maple And TMX Group Note Publication By British Columbia Securities Commission Of Draft Recognition Order And Undertakings
http://jlne.ws/N4oMHV

Exchanges & Trading Facilities

BATS CHI-X Europe Unveils Competitive Market Data Pricing
BATS Chi-X Europe, the largest pan-European equities market operator by market share and notional value, today announced plans for a competitive pan-European market data pricing model, effective 1st October 2012.
http://jlne.ws/N4oKje

CME Group Hires Dr. Izumi Kazuhara as Executive Director, Head of Japan
CME Group, the world’s leading and most diverse derivatives marketplace, today announced that Dr. Izumi Kazuhara will join the company as Executive Director, Head of Japan in June. Based in Tokyo, Dr. Kazuhara will be responsible for developing growth opportunities and customer relationships for CME Group throughout Japan.
http://jlne.ws/N4oMYs

ICAP’s iLinked To Offer Index Futures Rolls e-Trading
ICAP, the world’s leading interdealer broker, announces today that it has added index futures rolls to its recently launched equity derivatives electronic offering, iLinked, on the ICAP Securities Limited Multilateral Trading Facility (MTF).
http://jlne.ws/N4oPTZ

Australia’s ASX Lays Ground for New Deal
Wall Street Journal Blogs
Elmer Funke Kupper, CEO of Australia’s biggest stock exchange operator, works to make nationalistic objections to a bid seem antiquated.
http://jlne.ws/N4oNeT

Court Rules In Favor Of CBOE, McGraw Hill And CME Against ISE In Index Options Litigation
http://jlne.ws/N4oQaq

CBOE And C2 To List Options On Facebook (FB) On Tuesday, May 29
The Chicago Board Options Exchange (CBOE) and C2 Options Exchange (C2) today announced they will list options on Facebook (FB) beginning Tuesday, May 29.
http://jlne.ws/N4oNvm

NASDAQ OMX Stockholders Elect Members To Board Of Directors
Shareholders elected all nominated directors at the Annual Meeting of Stockholders for The NASDAQ OMX Group, Inc. Ellyn A. McColgan, an Executive Advisor at Aquiline Capital Partners, LLC, a private equity firm that invests in the financial services sector, is new to the board. Board members Steven D. Black, Börje E. Ekholm, Robert Greifeld, Glenn H. Hutchins, Essa Kazim, John D. Markese, Thomas F. O’Neill, James S. Riepe, Michael R. Splinter, and Lars Wedenborn were elected to their positions. All will serve one-year terms.
http://jlne.ws/N4oNvp

KCBT to Alter HRW Wheat Futures & Options Open Outcry Trading Hours on USDA Report Days
http://jlne.ws/N4oNvx

E.MEFF 30 – MEFF. Tuesday, 29 May, launch of the BONO 10 futures contract
http://jlne.ws/N4oQqX

Trader E-News
http://jlne.ws/N4oQr3

NYSE to Suspend Trading in American Oriental Bioengineering, Inc. and Moves to Delist
http://jlne.ws/N4oQr9

Reminder: As Of June 4th, 2012 NASDAQ OMX Baltic Exchanges Change Tick Size Table In Equity Markets
http://jlne.ws/N4oQHq

NZX Return Of Capital
http://jlne.ws/N4oQHB

TOM MTF Statistics Week 21 2012
http://jlne.ws/N4oQHI

BME: Over 75 Companies Will Participate In The MEDCAP Forum
http://jlne.ws/KZEzJI

Hedge Funds & Managed Futures

Star bank traders struggle to shine with own funds
Reuters via Yahoo! News
Some of the biggest traders to have swapped working at a bank for running their own hedge funds are finding it much tougher on their own, with returns since they launched lagging rivals and disappointing investors.
http://jlne.ws/N4oQXX

US public pension funds take on more risk
By Dan McCrum in New York – Financial Times
US public pension funds have used loose regulation to camouflage their liabilities and take on risks as they have matured, according to a new study by academics from Yale and Maastricht universities.
http://jlne.ws/N4oQY5

Analysis: Funds of hedge funds fight to stay relevant
Reuters via Yahoo! News
For funds which market themselves on their ability to spot the sharpest hedge fund minds, it could be their greatest challenge yet. Investors who once trusted them to find the best returns are gaining the expertise and confidence to do it themselves.
http://jlne.ws/N4oOj3

Busson Said to Weigh EIM Sale as Fund-of-Funds Struggles
Bloomberg
Arpad Busson, who rode a global boom in hedge funds to become one of the biggest investors in the industry before the 2008 financial crisis, is in talks to sell his EIM SA fund-of-funds company after clients withdrew their money, four people with knowledge of the matter said.
http://jlne.ws/N4oReF

Macquarie Acquires 42.5% of Czarnikow From Wilmar
Dow Jones Newswires
Czarnikow said Monday that Macquarie Group Ltd. has acquired Wilmar International Ltd.’s 42.5% stake in the sugar tradehouse, with the transaction expected to be completed early in the third quarter.
http://jlne.ws/N4oReK

Asia hedge fund start-up Expedition hires ex-Sparx Bahra
Reuters via Yahoo! Finance
Hong Kong-based hedge fund startup Expedition Advisors has hired Kam Bahra, former chief executive of Sparx Asia Investment Advisors, as chief operating officer, a top executive at the firm said on Tuesday.
http://jlne.ws/N4oOzA

Clive Capital Hedge Fund Rebounds on Falling Energy Prices Bet
Bloomberg
Chris Levett’s Clive Capital LLP gained as much as $230 million in May after betting energy and power prices would fall in a month when oil posted its biggest drop in two years, two people with knowledge of the fund said.
http://jlne.ws/N4oOPU

Banks & Brokers

JPMorgan Gave Risk Oversight to Museum Head With AIG Role
The three directors who oversee risk at JPMorgan Chase & Co. (JPM) include a museum head who sat on American International Group Inc.’s governance committee in 2008, the grandson of a billionaire and the chief executive officer of a company that makes flight controls and work boots.
http://jlne.ws/JxENnu

Citigroup Lost $20M Due To Nasdaq’s Facebook Glitches – Sources
By Jacob Bunge Of DOW JONES NEWSWIRES
The market-making arm of Citigroup Inc. (C) suffered losses of about $20 million on trades made during last Friday’s glitch-plagued listing of Facebook Inc. (FB) on the Nasdaq Stock Market, according to persons familiar with the matter.
http://jlne.ws/N4oRLB

Citigroup Kills Panel Overseeing Toxic-Asset Division
Bloomberg
Citigroup Inc. (C) , the biggest U.S. bank to have regulators reject its capital plan this year, dismantled a board committee created during the credit crisis to police the disposal of toxic and unwanted assets.
http://jlne.ws/N4oP6q

JPMorgan’s Dimon to testify before Congress in June
Reuters via Yahoo! News
JPMorgan Chase Chief Executive Jamie Dimon has been invited to testify before the Senate Banking Committee on June 7 to give lawmakers insight into the bank’s trading loss of at least $2 billion, Senator Tim Johnson said on Friday.
http://jlne.ws/N4oPmQ

Analysis: JPMorgan dips into cookie jar to offset “London Whale” losses
Reuters via Yahoo! News
JPMorgan Chase & Co has sold an estimated $25 billion of profitable securities in an effort to prop up earnings after suffering trading losses tied to the bank’s now-infamous “London Whale,” compounding the cost of those trades.
http://jlne.ws/N4oSix

JPMorgan replaces prime brokerage head: source
Reuters via Yahoo! Finance
JPMorgan Chase & Co has named Teresa Heitsenrether as the new head of its global prime brokerage business, a source familiar with the situation said.
http://jlne.ws/N4oPDo

Citi taps Morgan Stanley’s Davey for Asia prime unit
Reuters via Yahoo! News
Morgan Stanley’s head of prime brokerage sales for Singapore, Carl Davey, will be leaving the firm after 16 years to join Citigroup’s unit providing services such as clearing trades and lending money to hedge funds in Asia-Pacific.
http://jlne.ws/N4oPDx

Tax could cost UBS up to 10 pct of Europe assets
Reuters via Yahoo! News
UBS AG could see up to 10 percent of its European assets of 300 billion Swiss francs ($312.52 billion) moved out due to pressure to clamp down on untaxed accounts, the head of the wealth management business was quoted as saying on Saturday.
http://jlne.ws/N4oVeg

Deutsche Bank Accused of Improper Swap Sales in Unitech Lawsuit
Bloomberg
Unitech Ltd. (UT) , an Indian property developer, accused Deutsche Bank AG of selling it an interest- rate swap that wasn’t suitable and wasn’t properly explained, according to a London lawsuit over a $150 million loan deal.
http://jlne.ws/N4oVer

Barclays says was “singled out” in tax row
Reuters via Yahoo! News
British bank Barclays said tax authorities singled it out for unfair treatment in a tax row earlier this year that damaged the bank’s reputation. Britain said in February it would close two “aggressive tax avoidance schemes” used by Barclays and retrospectively applied a new tax to a bond buyback the bank did in December.
http://jlne.ws/N4oVuI

Barclays Sells German Unit to Deutsche Wohnen for $1.56 Billion
Bloomberg
Barclays Plc (BARC) , the U.K.’s second- largest bank by assets, agreed to sell its German housing unit, Baubecon, to Deutsche Wohnen AG (DWNI) in a deal valued at 1.24 billion euros ($1.56 billion).
http://jlne.ws/N4oVuT

Royal Bank Of Scotland To Offer Wealth Planning In India
FOX Business
Royal Bank of Scotland Group PLC’s (RBS.LN) India unit will offer wealth planning services, including advice for succession planning, asset preservation and philanthropy.
http://jlne.ws/N4oSPP

HSBC, First Niagara transition not as smooth as expected
WSYR 9 Syracuse
It’s been a banking mess for some Central New Yorkers this week, as HSBC Banks became a part of First Niagara. While customers were assured a seamless transition, some say it’s been far from it. Some customers have reported issues with getting new debit cards to accessing online banking and long wait times.
http://jlne.ws/N4oT6c

Clearing & Settlement

KDPW_CCP Signs Agreements With SWIFT And MarkitSERV
The clearing house KDPW_CCP has signed agreements with two platforms which will be sending OTC derivatives trade clearing instructions to KDPW_CCP. The clearing house will be using two services: SWIFT and MarkitSERV.
http://jlne.ws/N4oT6m

CME Group Clearing Advisory
CME Group Delivery Dates for June 2012
http://jlne.ws/Ko3XpD

Indexes & Products

Hedge Fund ETFs Not a Big Hit Yet
ETF Trends via Yahoo! Finance
Exchange traded funds that seek to replicate strategies used by hedge funds remain a small part of the business although two ETFs in the category have each gathered $200 million in assets.
http://jlne.ws/N4oTD9

FTSE Value-Stocks Index Series Extended With New Custom Solutions, To Support Value-Based ETFs Listed By Sensible Asset Management Hong Kong
http://jlne.ws/N4oTDi

MEFF To Launch Futures On Spanish 10-Year Notional Bond
On May 29, MEFF will launch futures on a Spanish 10-year Notional Bond based on long-term Spanish gov bonds http://jlne.ws/L0WOLi

RTS Offers Access to the Four Chinese Futures Exchanges
RTS Realtime Systems Group (RTS), a leading global trading solutions provider, today announced that it has established connectivity to the four Chinese futures markets.
http://jlne.ws/M28qCI

Technology

Traiana Appoints Michael Verkuijl As Global Head Of Sales
http://jlne.ws/N4oWyN

TriOptima Wins Energy Risk Technology House Of The Year Award
http://jlne.ws/N4oTTR

BTG Pactual Signs On To Implement AC Plus – Asset Control Expands Global Footprint In The Latin American Region
Asset Control, provider of financial data management solutions and services, today announced that BTG Pactual, Brazil’s leading investment bank, will implement AC Plus. BTG Pactual will consolidate and centralize multiple data domains onto AC Plus which will integrate seamlessly with their existing systems.
http://jlne.ws/N4oWPk

ICECAPITAL deploys SuperDerivatives to power structured products offering
ICECAPITAL, one of Finland’s premier asset management companies, has selected SDX, the leading real-time cross-asset front office system by SuperDerivatives (SD), to support its structured products investment offerings to the local market.
http://jlne.ws/N4oWPr

RTS Offers Access to the Four Chinese Futures Exchange
RTS Realtime Systems Group (RTS), a leading global trading solutions provider, today announced that it has established connectivity to the four Chinese futures markets.
http://jlne.ws/N4oWPy

Enforcement

Hedge fund chief faces lifetime ban
By Brooke Masters, Chief Regulation Correspondent – Financial Times
The City regulator is seeking to impose a lifetime ban and a £3m fine on the manager of a $550m hedge fund for allegedly lying to investors in the months leading up to the fund’s 2009 collapse.
http://jlne.ws/N4oUHh

CFTC Charges CTI Group, LLC, Cooper Trading, Stephen Craig Symons, And James David Kline, All Of California, With An $11 Million Fraud In The Sale Of Automated Trading Systems
The U.S. Commodity Futures Trading Commission (CFTC) today announced the filing of a federal court action against defendants CTI Group, LLC, Cooper Trading, and Stephen Craig Symons of Corona del Mar, Calif., and James David Kline of Van Nuys, Calif., charging them with fraudulent sales practices in connection with the sale of two automated trading systems, known as the Boomer and Victory Trading Systems.
http://jlne.ws/N4oUHt

CFTC Charges Washington, DC, Resident Marina Buhler-Miko And Her Company, Coventry Asset Managers, LLC, With Operating Fraudulent Forex Scheme
The U.S. Commodity Futures Trading Commission (CFTC) today announced the filing of a civil enforcement action in U.S. District Court for the District of Columbia against defendants Marina Bühler-Miko(Bühler-Miko) and her company, Coventry Asset Managers, LLC (Coventry), both of Washington, DC.
http://jlne.ws/N4oXD0

And By ‘Outstanding Experience’ the Alleged-$11 Million Fraudster Meant a History of Compliance Violations
The New York Observer
It’s called the FINRA BrokerCheck , people, and before you give some schmloe your money, it wouldn’t hurt to use it. The Securities and Exchange Commission announced charges today against a New York-based fund manager named Jason J. Konior, who allegedly sold $11 million worth of limited partnerships in his Absolute Fund LP, then siphoned proceeds to pay redemptions from earlier investors.
http://jlne.ws/N4oXTu

Ponzi Scheme Mastermind Sentenced to 50 Years in Prison
Keith Franklin Simmons, 47, of West Jefferson, North Carolina, was sentenced today to 50 years in prison in connection with a $40 million Ponzi scheme he operated, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Robert J. Conrad, Jr. also ordered the defendant to serve three years under court supervision following his prison term and to pay $35,331,632 in restitution.
http://jlne.ws/KKS6kT

Three guilty of insider dealing
In a prosecution brought by the Financial Services Authority (FSA) three people have pleaded guilty to insider dealing. James Sanders a director of Blue Index, a specialist Contract for Difference (CFD) brokerage, had previously pleaded guilty to a total of 10 charges of insider dealing, his wife Miranda Sanders pleaded guilty to 5 charges of insider dealing, and James Swallow, a co-director of Blue Index, pleaded guilty to 3 charges of insider dealing at an earlier hearing.
http://jlne.ws/N4p0P3

Two men admit to roles in alleged market manipulation
The British Columbia Securities Commission has settled with two men who admitted to participating in an alleged market manipulation involving a U.S. over-the-counter issuer. In two separate settlement agreements with BCSC staff, B.C. residents Malkeet Singh Bains and Narvinder Singh Patric Virk each admitted that he reasonably should have known that his actions led to a misleading appearance of trading activity in or an artificial price for Sungro Minerals Inc. shares
http://jlne.ws/N4oYqA

Prosecutors Present E-Mail Evidence in Insider Trading Case
By PETER LATTMAN – NY Times
The pair of government witnesses who testified on Friday at Rajat K. Gupta’s insider trading trial were from opposite ends of the business world.
http://jlne.ws/N4oYH3

Ex-Blue Index Senior Trader Not Guilty of U.K. Insider Charges
Bloomberg
A former senior trader at Blue Index Ltd., Christopher Hossain, was found not guilty of insider trading after the brokerage’s founder and his wife pleaded guilty to the charges before the trial began.
http://jlne.ws/N4oYHa

WA company director charged
http://jlne.ws/N4p1CE

Commonwealth Securities Limited pays $35,000 infringement notice penalty
http://jlne.ws/N4oZe0

Environmental & Energy

Climate Talks Stall As Bonn Meeting Ends
redOrbit
Developing countries, spearheaded by China, say the industrialized world is responsible for much of the emissions seen and should face the burden of emissions cuts alone, but the developed nations argue that fast-developing economies, such as China — now the top polluter in the world — and India, should not be off the hook.
http://jlne.ws/MUbyQg

**JK – So who is surprised here?

Can Market Forces Really be Employed to Address Climate Change?
The Energy Collective
But climate change is distinctly different. Unlike the environmental threats addressed successfully in past U.S. legislation, climate change is essentially unobservable to the general population. We observe the weather, not the climate. Until there is an obvious and sudden event – such as a loss of part of the Antarctic ice sheet leading to a dramatic sea-level rise – it is unlikely that public opinion in the United States will provide the bottom-up demand for action that inspired previous congressional action on the environment over the past forty years.
http://jlne.ws/Km3nKU

**JK – Interesting examination of the broader picture on emissions markets.

EU Emissions Trading Plans Face Plunging Coal Prices
Reuters
Limited reform of EU emissions trading may not achieve much in CO2 cuts as the falling competitiveness of cleaner technologies is driven more by plunging coal than carbon prices.
http://jlne.ws/KYHChK

Asia-Pacific

HKMEx Market Data Go Live on China’s Webstock
The Hong Kong Mercantile Exchange (HKMEx), China’s global marketplace, announced today that HKMEx real time market data are now available on Wenhua Information Systems Limited (Webstock) – a platform used by more than one million investors from over 90 percent of all futures trading companies in China.
http://jlne.ws/N4oZeb

China eyes launch of crude futures within the year: SHFE
Reuters via Yahoo! Finance
China aims to launch crude oil futures within the year and allow them to be traded by foreign investors as the country speeds the opening of its commodities futures market to overseas players, the chairwoman of the Shanghai Futures Exchange (SHFE) said on Monday.
http://jlne.ws/N4oZuF

Osaka Securities Exchange DJIA Futures Is Launched
http://jlne.ws/N4p2q8

Show Me the China Stimulus Money
By TOM ORLIK – WSJ
Most economies can pull two levers to bolster growth—fiscal and monetary. China has a third option. The National Development and Reform Commission can accelerate the flow of investment projects.
http://jlne.ws/N4p2qm

Marubeni nears $5 billion-plus Gavilon deal: sources
Reuters
Japanese trading house Marubeni Corp (8002.T) is nearing a deal to buy U.S. grains merchant Gavilon for more than $5 billion including debt and could announce the transaction as early as Tuesday afternoon in Tokyo, according to people familiar with the matter.
http://jlne.ws/LNrqSD

[TSE] Memorandum of Understanding with Central Bank of Myanmar pertaining to Support for Establishing a Securities Exchange
The Central Bank of Myanmar, Daiwa Institute of Research Ltd. (hereinafter “DIR”), the core information-generating arm of Daiwa Securities Group, and Tokyo Stock Exchange Group, Inc. (hereinafter “TSE”) concluded a memorandum of understanding (hereinafter “MOU”) pertaining to cooperation toward establishing a securities exchange and supporting the cultivation of a capital market in Myanmar on May 29, 2012.
http://jlne.ws/N4p01M

SGX partners CFA Singapore to enhance investment competencies
Singapore Exchange (SGX) and CFA Singapore (CFAS) today announced a collaboration to enhance the level of investment competencies in Singapore. This collaboration will see SGX Academy and CFAS adopt a two-prong approach: firstly, to enhance the competencies of trading representatives and financial advisers; and secondly, to equip young investors with basic investment knowledge.
http://jlne.ws/N4p2Xd

JPMorgan Injects Additional CNY2.5 Billion Into China Banking Unit
FOX Business
JPMorgan Chase & Co. (JPM) said Monday it has injected an additional CNY2.5 billion ($395 million) into its China banking subsidiary, making it the latest foreign bank to boost its presence in the world’s second-largest economy.
http://jlne.ws/N4p5SQ

China’s new privatisation plan faces push-back risk
By Kevin Yao – Reuters
China’s new push to open state controlled industries may look bold after a decade of stuttering privatisation progress, but Beijing faces stiff resistance from vested interests in its effort to extend its World Trade Organisation dividend.
http://jlne.ws/N4p3dN

Won Drop No Deterrent to Templeton on Korean Manufacturing Bet
Bloomberg
Franklin Templeton Investments, the biggest overseas owner of South Korean bonds, remains “positive” on the country, betting the manufacturing industry will hold up as the currency weakens, a local executive said.
http://jlne.ws/N4p3dR

[FSA] Publication of “Taxation of Revenue Bonds Q&A”
http://jlne.ws/N4p69A

Osaka Securities Exchange: SPAN Parameter Updated – Jun 04, 2012 – Jun. 08, 2012
http://jlne.ws/N4p6pY

Shenzhen Stock Exchange: Measures To Curb Speculation On First Day Of Trading
http://jlne.ws/N4p6Go

Monetary Authority Of Singapore Reviews Regulatory Requirements For Unlisted Margined Derivatives Offered To Retail Investors
http://jlne.ws/N4p3KQ

Shanghai Stock Exchange Backs Up Innovation, Development Of Securities Companies
http://jlne.ws/N4p3KY

Frontier Markets

Foreign cos pulling more money out of India – Nomura
Reuters via Yahoo! Finance
Foreign direct investment, the sort of sticky long-term money India craves to fund its current account deficit and build up its infrastructure, may not be so stable after all.
http://jlne.ws/N4p41o

Malawi’s Banda Moves Quickly on Economy
Voice of America
Malawi’s new president, Joyce Banda, is moving quickly during her first month in office – firing officials and implementing financial reforms to lure back foreign aid and investment. Since her inauguration in April, President Banda has fired Police Chief Peter Mukhito, Central Bank Governor Perks Ligoya and Malawi Broadcasting Corporation head Bright Malopa.
http://jlne.ws/N4p6X8

India’s Singh Says Myanmar Visit Will Define Future Partnership
Bloomberg
Indian Prime Minister Manmohan Singh said his three-day visit to Myanmar starting today will define a road map for future cooperation between the neighbors, including forging economic ties.
http://jlne.ws/N4p7dv

DIFC-Based Companies Record Substantial Financial Growth Over The Last Three Years
The Dubai International Financial Centre (DIFC), the financial and business hub connecting the region’s growth markets with the markets of Europe, Asia and the Americas, today issued its Monetary and Financial Report covering the period 2008 to Q1 2012, updating the market on the monetary and financial activity of entities registered in the Centre during that period.
http://jlne.ws/N4p4yo

The Abu Dhabi Securities Exchange Upgrades To New Trading Platform From NASDAQ OMX
http://jlne.ws/N4p4OP

Abu Dhabi Securities Exchange (ADX) Signs Registrar Agreement With Injaz Mena Investment
The agreement was signed between Mr. Rashed Al Baloushi, CEO of ADX, and Mr. Ali Khalfan Al Dhaheri, CEO of Injaz Mena Investment, at Abu Dhabi Securities Exchange main offices in Abu Dhabi n the presence of senior staff of both parties.
http://jlne.ws/N4p4P1

S.Africa’s JSE says halts ‘incorrect’ trade
Reuters via Yahoo! News
The Johannesburg Stock Exchange said on Friday it had identified and halted “incorrect” trades from one of its member brokers, and would reverse the trades and lower the session’s total value after the close.
http://jlne.ws/N4p55m

Is it time for another Shariah ETF? – ETF News And Commentary
Nasdaq
The concept of Islamic finance, banking and economics has gained tremendous popularity of late.
http://jlne.ws/N4p7Kv

President Of Islamic Development Bank To Discuss Islamic Finance In London
UK Islamic Finance Secretariat Welcomes His Excellency Dr Ahmad Mohamed Ali, President Of Islamic Development Bank Group, To London
http://jlne.ws/N4p5lS

DIFC Publishes Monetary & Financial Statistics For The Period 2008-2012
http://jlne.ws/N4p5lX

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