John Lothian Newsletter: Financial News: Jones To Leave In NYSE Euronext Revamp -Sources; Stock Exchanges Aim New Flash-Crash Fixes For February Launch

May 31, 2012

It was announced that Garry Jones, global head of derivatives at NYSE Euronext will step down following a management restructure at the U.S.-headquartered exchange. Meantime, U.S. stock-exchange operators said they plan to roll out a new system in February designed to shield investors from massive price swings.

First Read

Renewed Energy

After launching the latest version of the John Lothian Newsletter in recent days, we debuted the newly designed and renamed JLN Environmental/Energy Newsletter, the sequel if you will, to Environmental Markets Newsletter (EMN), launched in May 2006.

JLN Environmental/Energy is designed to bring readers the full picture and intersection of emissions markets and energy markets.  The focus will remain firmly on carbon markets and related markets such as natural gas, power and coal. We added coverage of other markets such as Renewable Energy Credits (RECs), water and other markets as stories emerge. We will also add original content periodically and of course, welcome contributions and feedback. Every publication should be a work in progress that adjusts to the topic being covered, and JLN Environmental/Energy is no different.

Also, all of the newsletters can be found at www.jlnenvironmental.com, which now runs on the WordPress backbone. Each day’s edition can be found there simply by hitting the “Continue Reading” button under each date.  We hope you find the sequel better than the first.

–Jim Kharouf

Back to Sylvania

Six years ago I took my son Tim and some of his fellow scouts and their dads on a trip to the Sylvania Wilderness Area in the Ottawa National Forest in the Upper Peninsula of Michigan for a week of canoeing and fishing.  The trip was notable because that was when Ryan Lothian proved to this newsletter audience that he had complete control of the newsletter by including what he called an embarrassing picture of me in a brown tuxedo.

Here we are six years later and I am off to Sylvania again with my 11 year old son Robby and some scout friends and their dads.  

We leave Saturday and I will return to the office on Thursday.  While I am away, the John Lothian News team will be working hard to get all seven of our newsletters out and continue to produce content for MarketsWiki, MarketsReformWiki and MarketsWiki.tv.

How time flies and things change while you are having fun.

Garry Jones Leaving NYSE Euronext

Garry Jones has had a few jobs during his career and he is leaving perhaps the best one.  After taking over for Hugh Freedberg, Jones has been running NYSE Liffe. Now, he is leaving NYSE Liffe and headed for whatever is next.  We at John Lothian News wish him well.  He has been a terrific exchange leader to work with on numerous levels and true gentlemen of good humor.  Best of luck Garry!

Not that Stephen Hurst

If you are a careful reader of MarketsWiki, you will note John Lothian News has a new intern for the summer.  Stephen H. Hurst, who is also laboring as an unpaid intern for the Chicago office of the Commodity Futures Trading Commission, is a paid intern for John J. Lothian & Company, Inc. this summer.  Stephen is the son of Merchant’s Exchange’s Steve Hurst.  Stephen will be an editorial intern working mostly on MarketsWiki this summer.

The Other Intern

We have also hired Evan Fabry for the summer.  I can’t tell you what Evan is working on because it is a secret.  Evan previously worked for us last summer and over the winter break.  He is an Eagle Scout and currently serves as the Senior Patrol Leader of the Boy Scout troop for which I am the Scoutmaster.

Dear Attorney General Holder

There is a theory circulating that U.S. Attorney General Eric Holder has put a hold on an immunity deal for former MF Global assistant treasurer Edith O’Brien.  The story is that Mr. Holder wants to mute this story before the November election because of the potential to harm the re-election prospects of his boss, President Obama.  While I don’t subscribe to conspiracy theories, I would like to encourage Mr. Holder and any other administration officials responsible for the decision of whether to give Ms. O’Brien immunity to do the right thing for the country.  We need to know what happened at MF Global from Ms. O’Brien’s perspective and we need to know now.  The NFA has proposed what is being called the “John Corzine Rule,” which requires certain senior executives to sign off when excess firm capital is removed from customer segregated accounts.  The fingers are pointed by this new rule.  Let’s get down to brass tacks and the truth in the MF Global matter.

~John J. Lothian

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Intellectual Property Exchange International Attracts Leading Global Corporations, Universities

Press Release

The Intellectual Property Exchange International Inc. (IPXI), the world’s first financial exchange that facilitates non-exclusive licensing and trading of intellectual property (IP) rights with market-based pricing and standardized terms, announced today that its membership has grown to 27 organizations.  Among the 21 new members that have joined since December 2011 are leading innovative companies with significant IP assets representing a variety of technology markets, university research institutions ranking in the top 20 in the world, and top U.S. national laboratories.  Eight of the new members join IPXI as Founding Members.

http://jlne.ws/KZDEVM

**** Valuing intellectual property and licensing its use could be the thing the economy needs.

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JPMorgan CIO Swaps Pricing Said to Differ From Investment Bank
Matthew Leising, Mary Childs and Shannon D. Harrington – Bloomberg News
The JPMorgan Chase & Co. unit responsible for at least $2 billion in losses on credit derivatives was valuing some of its trades at prices that differed from those of its investment bank, according to people familiar with the matter.
http://jlne.ws/LJZwTX

**** This sounds like fraud on the face of it.  

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Respected Energy and Commodity Analyst Phil Flynn Joins The Price Futures Group, Inc.
The Price Futures Group, a division of Price Holdings, Inc., an employee-owned company, is very pleased to announce that Phil Flynn, internationally televised oil and commodity market analyst, and his team, are joining the firm. Phil is one of the world’s leading energy and general market analysts, providing investors, professional traders, and institutions with his up-to-the minute advice for over 25 years.
http://jlne.ws/LJZxr7

**** Welcome to The Price Group, Phil.  Come visit the Lothian branch sometime.  We have great coffee and an unending supply of peanut M&Ms.

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Analysis: Jones’ departure follows tough start to 2012
William Mitting – FOW
It has been a tough start to 2012 for Liffe, the London-headquartered derivatives exchange. Volumes for the first four months are down over 20% and a new launch on the AMX Dutch mid cap index on Liffe Amsterdam flopped in April. The departure of its bullish global head Garry Jones adds to its woes.
http://jlne.ws/LJZvQ3

**** The end of 2011 was not so hot either.

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New platform aims to limit ‘flash’ orders
By Philip Stafford – Financial Times
Five major investment banks are backing a new foreign exchange trading platform that discourages high-frequency trading in the world’s largest and most liquid market. The platform, to be called traFXpure, will be operated by Tradition, the Swiss interdealer broker, and will look to cut down on potential “flash” orders – trades made at lightning speeds on electronic systems.
http://jlne.ws/LJZvQ5

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Ken Tropin to Accept Managed Futures Lifetime Achievement Pinnacle Award
At the upcoming Managed Futures Pinnacle Awards, CME Group and BarclayHedge will be presenting Ken Tropin, Chairman, Founder and a Principal of Graham Capital Management, with the well-deserved Managed Futures Lifetime Achievement Pinnacle Award.
http://jlne.ws/KcKRXg

**** What is left after winning the PInnacle Award?

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The European Elephant in the Room
Peter Atwater | Minyanville
Countries don’t fail; they come apart. As I talk to policymakers, economists, investors, and capital markets participants, I am amazed at how few grasp this distinction. In fact, as I listen to them discuss what is happening in Greece or Spain, I sometimes wonder if I am witnessing a real-time version of the old joke about the four blind men and the elephant.
http://jlne.ws/KeQ8h7

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A Diabolical Mix: U.S. Wages and European Austerity
Robert Reich
What if Europe and the US converged on a set of economic policies that brought out the worst in both – European fiscal austerity combined with a declining share of total income going to workers? Given political realities on both sides of the Atlantic, it is entirely possible.
http://jlne.ws/LJZvQb

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Facing Down the Bankers
By ANNIE LOWREY – NY Times
Sitting in a corner office high above K Street here, Dennis M. Kelleher, one of the most powerful lobbyists on financial regulatory reform, looks every bit the corporate lawyer and high-ranking Senate aide he formerly was: tailored suit, quick smile, assertive tone. Dennis M. Kelleher, a former lawyer at Skadden, Arps, runs Better Markets, a nonprofit group focused on the regulatory overhaul of the financial industry. But Mr. Kelleher does not work for banks. He works against them.
http://jlne.ws/LJZxHu

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Tempted, U.S. Funds Hop the Pond
By MATT WIRZ – WSJ
For years, many U.S. hedge funds have made only rare forays into Europe. But the recent turmoil, and lack of high-yielding investments at home, is proving tempting enough for some to add to their investments, open new funds and even offices.
http://jlne.ws/LJZxHz

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Woman Who Couldn’t Be Intimidated by Citigroup Wins $31 Million
Bloomberg
Sherry Hunt never expected to be a senior manager at a Wall Street bank. She was a country girl, raised in rural Michigan by a dad who taught her to fish and a mom who showed her how to find wild mushrooms. She listened to Marty Robbins and Buck Owens on the radio and came to believe that God has a bigger plan, that everything happens for a reason.
http://jlne.ws/LJZw6y

**** Great Bloomberg quality story about a woman who stood up and did the right thing.

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Closing a bank account can cost you, Consumers Union says
Denver Post
In a survey of the practices of the 10 largest banks in the country – including JPMorgan Chase, Bank of America, Citibank and Wells Fargo – policy and advocacy group Consumers Union found that people who want to close their accounts at big banks and switch to a smaller bank can face costly obstacles.
http://jlne.ws/LJZw6D

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Get Prepared for Eurex Exchange’s New Trading System
Tuesday, June 5, 2012 9:00 AM – 10:00 AM CDT
Join Eurex and RTS Realtime Systems for an interactive webinar on Eurex Exchange’s new trading system. Eurex will be implementing the launch of a new trading system in December 2012. As RTS prepares for full support of this new technology, the timing is perfect to share details on a smooth transition for all traders trading on Eurex.
http://jlne.ws/LJZw6H

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JLN Options

Bears Draw Blood on Facebook’s First Options Trading Day
Steven M. Sears, Barron’s
Facebook’s stock now has something in common with Mark Zuckerberg, the company’s founder. Both are under 30. And it appears that option investors think that the stock can sink further.
http://jlne.ws/LfKyGD

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Facebook Contracts Top 365K in Fastest IPO Start
Cecile Vannucci and Nikolaj Gammeltoft, Bloomberg Businessweek
Investors flocked to the options market to protect shares of Facebook Inc. from more losses, making contracts on the social network website the most popular among the biggest initial public offerings in the last decade.
http://jlne.ws/KcUZ28

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CBOE volatility index up 11%, most since April 13
Sue Chang, MarketWatch
The CBOE Market Volatility Index jumped on Wednesday as U.S. stocks retreated on a combination of weak economic data at home and unrelenting problems in Europe.
http://jlne.ws/LTPljf

MarketsWiki

Ted Leveroni of Omgeo Discusses Collateral Requirements Under Dodd-Frank
MarketsWiki.tv
Ted Leveroni is the executive director of derivatives strategy and external relations for Omgeo, a financial services company specializing in post-trade operations such as trade allocation, confirmation and settlement for investment managers, broker/dealers and custodians. John Lothian News Editor-at-Large Doug Ashburn spoke with Leveroni about collateral requirements under new regulations, and how firms are responding with innovation in collateral efficiency.
http://jlne.ws/KsI9uH

MarketsWiki Page of the Day
Garry Jones
http://jlne.ws/L6h3re

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MarketsWiki Recent Updates

People

Joseph Ahearn; Phil Flynn; Garry Jones; Ted Leveroni; Ken Tropin; Adam Felesky; Borje Ekholm; Stephen H. Hurst

Companies, Organizations and Groups

TradingScreen Inc.; Moscow Interbank Currency Exchange; Omgeo; Investor AB

Products

John Lothian News; Environmental Markets Newsletter; JLN Environmental/Energy; John Lothian Newsletter

Miscellaneous

Upcoming Events

Statistics

24,407,171 pages viewed, 6,880 articles, 141,422 edits
MarketsWiki Statistics

Lead Stories

Financial News: Jones To Leave In NYSE Euronext Revamp -Sources
By Michelle Price, Jacob Bunge and Tom Osborn Of FINANCIAL NEWS
Garry Jones, global head of derivatives at NYSE Euronext (NYX), is due to step down following a management restructure at the U.S.-headquartered exchange, according to sources familiar with the matter. NYSE Euronext issued a memo today confirming his departure after a transitional period, according to one source. It is not known where he is moving to. A spokesperson for NYSE Euronext had no immediate comment.
http://jlne.ws/LJZwn1

Stock Exchanges Aim New Flash-Crash Fixes For February Launch
By Jacob Bunge Of DOW JONES NEWSWIRES
U.S. stock-exchange operators plan to roll out a new system designed to shield investors from massive price swings next February as part of an expanded plan that would give brokers a greater say in administering the plan.
http://jlne.ws/LJZwn3

Final Bidders For LME To Present Thursday To Board-Sources
Andrea Hotter – Dow Jones Newswires
The London Metal Exchange’s board is to hear presentations Thursday from teams including the chief executives of the two final bidders in the race to buy the metals-trading exchange, after which the board could choose its preferred bidder by as early as the end of the day, people familiar with the matter told Dow Jones Newswires.
http://jlne.ws/LJZwna

LME suitors woo the board
By Jack Farchy – Financial Times
The London Metal Exchange has been playing the field for the best part of a year. Now the time is drawing near for the 135-year-old exchange to choose one of its suitors and settle down. The choice, narrowed down to just two from an early field of more than 10, is stark.
http://jlne.ws/LJZwDv

ASX CEO: Chi-X unlikely to help trading costs
Market Watch
The presence of challenger Chi-X in Australia’s exchange market is unlikely to lower trading costs for investors, even as its market share continues to climb, the chief executive of ASX Ltd. said Thursday.
http://jlne.ws/LJZwDB

Fed to consider Basel III rules next week
Reuters via Yahoo! News
The Federal Reserve is scheduled to vote next week on a highly anticipated proposal for implementing an international agreement on higher capital standards for banks, known as Basel III. The Fed announced the June 7 meeting, which will be open to the public, on its website on Wednesday.
http://jlne.ws/LJZwU4

Turmoil Frays Ties Across Continent
By DAVID ENRICH and ALESSANDRA GALLONI – WSJ
Amid Europe’s intensifying debt crisis, a spat between banking authorities in Germany and Italy shows how Europe’s carefully nourished financial ties are fraying.
http://jlne.ws/LJZyeA

Spain’s Banking Rescue Should Become Example for Europe
Bloomberg
Europe’s leaders can’t save their currency union without figuring out a way to salvage the region’s banks. Spain is a perfect place to start.
http://jlne.ws/LJZzPF

It’s a ‘Flight to Safety, Whatever the Cost’
Wall Street Journal Blogs
The euro has dropped to its lowest level since July 1, 2010, underscoring how investors are fleeing risky investments and scouring for safe-haven assets in any way, shape or form as Europe’s sovereign-debt crisis hits fever pitch.
http://jlne.ws/LJZyeP

U.S. Steps Up Pressure on Europe to Resolve Euro Crisis
By DAVID JOLLY – NY Times
President Barack Obama has held conference calls with the leaders of France, Germany and Italy to help lay the groundwork for action before a G-20 summit in June.
http://jlne.ws/LJZyvb

Greek Banks Regain Access to European Central Bank Loans
By JACK EWING – NY Times
Greece’s four largest banks have regained access to normal credit lines from the European Central Bank after they received fresh capital from the European Union, Mario Draghi, the E.C.B. president, said Thursday.
http://jlne.ws/LJZyvh

Irish Vote on Fiscal Pact
By EAMON QUINN – WSJ
Irish voters deliver their verdict Thursday on a European Union treaty designed to bring financial stability to the euro zone by binding countries to tougher rules on balancing their budgets.
http://jlne.ws/LJZA6a

Regulatory

Draghi calls for EU-wide bank oversight
By Claire Jones, Economics Reporter – Financial Times
Mario Draghi, ECB president, has criticised the Spanish government for underestimating the scale of Bankia’s woes and called for the regulation of Europe’s most important banks to be taken out of the hands of national supervisors.
http://jlne.ws/LJZA6e

After JPMorgan Loss, U.S. Regulator Ponders Tighter Volcker Rule
Bloomberg
The main U.S. derivatives regulator will discuss whether to tighten exemptions to a proposed ban on proprietary trading after JPMorgan Chase & Co. (JPM) announced at least $2 billion in credit-derivatives trading losses.
http://jlne.ws/LJZA6m

SEC Reviewing Finra’s Pay Packages
BY JESSICA HOLZER – WSJ
The Securities and Exchange Commission is reviewing the executive compensation and governance practices of Wall Street’s self-policing body, according to a government report released Wednesday.
http://jlne.ws/LJZA6n

SEC should push FINRA to review rules: watchdog
Market Watch
The Securities and Exchange Commission should encourage the Financial Industry Regulatory Authority, which it oversees, to conduct retrospective reviews of its rules, a government watchdog said in a report Wednesday.
http://jlne.ws/LJZAmH

Jon Rymer Named Interim Inspector General
The Securities and Exchange Commission today announced that Jon T. Rymer will serve as Interim Inspector General until the Commission hires a permanent Inspector General. Mr. Rymer, who currently serves as Inspector General of the Federal Deposit Insurance Corporation, will continue his duties at the FDIC’s Office of Inspector General after starting at the SEC on May 30.
http://jlne.ws/LGURD7

One In Nine Fund Managers Has Regulatory Black Mark, New Forms Show
Forbes
A study of new forms required by the SEC shows more than 11% of hedge fund and private equity managers have been involved in a major regulatory violation of some sort.
http://jlne.ws/LJZyLR

ESMA: Publication Of The First Regulatory Technical Standards On Credit Rating Agencies (CRAs)
Today, four European Commission Delegated Regulations establishing regulatory technical standards for credit rating agencies have been published in the Official Journal of the European Union.
http://jlne.ws/LJZz2d

Exchanges & Trading Facilities

NYSE Euronext Announces Departure of Garry P. Jones
Press Release
NYSE Euronext announced today that, as part of an organizational realignment of its customer facing product and sales organizations, it was eliminating the role of Global Head of Derivatives. As a result of the realignment, the company said that Garry P. Jones, NYSE Euronext’s current Global Head of Derivatives has decided to leave the Company effective at the end of June.
http://jlne.ws/LJZz2f

Federation Of Euro-Asian Stock Exchanges (FEAS) Newsletter May 2012
http://jlne.ws/LJZATM

Direct Edge Trading Notice #12-22: Pricing Changes On EDGA And EDGX Exchanges
http://jlne.ws/LJZATR

Toronto Stock Exchange and TSX Venture Exchange Host Life Sciences Finance Event
http://jlne.ws/LJZATY

Leading Global Pharmaceutical Company, Teva Pharmaceutical Industries, Transfers Stock Listing to the New York Stock Exchange from NASDAQ
http://jlne.ws/LJZBai

C2 Disaster Recovery Facility
http://jlne.ws/LJZCuM

[CBOE] June 2012 Fee Changes
http://jlne.ws/LJZCuO

Hedge Funds & Managed Futures

Investors rush into haven bonds
By Michael Mackenzie in New York and Robin Wigglesworth in London – Financial Times
The once unthinkable is stalking global investors. And record low yields on haven government bonds such as US Treasuries, UK gilts and German Bunds are proving no deterrent to buyers.
http://jlne.ws/LJZBqT

Daniel Saieh Named Head of Latin American Sales at VelocityShares
VelocityShares announced today the appointment of Daniel Saieh as Managing Director and Head of Latin American Sales. Mr. Saieh is a 20-year industry veteran and spent the last 10-years at Blackrock (formerly Barclays Global Investors) where he was the Director of Institutional Business Latin America.
http://jlne.ws/LJZCv4

Dividends key as cult of equity withers
By Andreas Utermann – Financial Times
Is the cult of the equity dying a slow death? The seemingly inexorable rise of stock markets in the 1980s and 1990s, which saw the S&P 500 compound at an annual growth rate of 28.8 per cent, created a set of expectations often described as the cult of the equity. Those expectations, though, have been sorely disappointed in the past 12 years, with developed markets today standing 24.9 per cent below where they started the century.
http://jlne.ws/LJZBHk

UK Start-Up Readies Buy-Side Bond Trading Venue In The US
A fledgling European company backed by former bankers is looking to expand in the U.S. by launching an electronic trading platform for junk bonds, hoping to capitalize on the growing interest among large investors in trading with each other directly and cutting out banks as middlemen.
http://jlne.ws/LJZBHt

Guggenheim Investments Announces Appointment of a New Trustee and Election of Chief Executive Officer for Certain Closed-End and Exchange Traded Funds
Business Wire via Yahoo! Finance
The exchange traded funds and certain closed-end funds advised by Guggenheim Funds Investments Advisors, LLC today announce the appointment of Mr. Donald C. Cacciapaglia as a Trustee of each of the Funds.
http://jlne.ws/LJZCLy

Ex-Credit Suisse Trader’s Macro Fund Returns 20% on Euro Crisis
Bloomberg
CC Asia Macro Fund, run by a former Credit Suisse Group AG (CSGN) proprietary trader, returned 20 percent this year through April as it bought Asian currencies, fixed income and equities, and sold the yen amid the European crisis.
http://jlne.ws/LJZBXT

Exchange Data International Fully Contingent For Worst Eurozone Break-Up Scenario
Exchange Data International (EDI), a proven provider of global corporate actions and reference data, announced today they are fully contingent in case the Eurozone crumbled.
http://jlne.ws/LJZD1T

Teucrium Trading, LLC Names Steve Kahler as Chief Operating Officer
Business Wire
Teucrium Trading, LLC, the sponsor of the Teucrium Family of Funds, today announced that Steve Kahler, who joined the firm in November 2011, has been named Teucrium’s Chief Operating Officer.
http://jlne.ws/LJZBXX

Einhorn’s Greenlight funds returned 6.8% in Q1
Market Watch
Hedge fund manager David Einhorn’s Greenlight Capital funds reported a return of 6.8% in the first quarter, underperforming the S&P 500’s return of 12.6%, according to an investor letter obtained by MarketWatch on Wednesday.
http://jlne.ws/LJZCej

CalPERS Awards Citi $28B in Securities Lending Assets in Most Recent Auction
Business Wire via Yahoo! Finance
eSecLending, a leading global securities lending agent, announced today it recently conducted a securities lending auction of $43 billion in US equities for the California Public Employees’ Retirement System .
http://jlne.ws/LJZDiy

Bain Capital Said to Plan Raising New Fund
By MICHAEL J. DE LA MERCED – NY Times
Bain Capital will soon begin raising its 11th leveraged buyout fund, with an aim of drawing in about $8 billion from investors, a person briefed on the matter told DealBook on Wednesday.
http://jlne.ws/LJZCex

The Carlyle Group Launches New Corporate Website
Business Wire
Global alternative asset manager The Carlyle Group today launched its new corporate website, www.carlyle.com. The website outlines in detail the scope of Carlyle’s global investment platform, the investment approach for each fund, and our extensive portfolio of 200+ corporate and 250+ real estate investments.
http://jlne.ws/LJZDyW

Och-Ziff Capital Management Group LLC to Present at the Keefe, Bruyette & Woods 2012 Asset Management Conference
http://jlne.ws/LJZFaa

Hedge Funder Peter Thiel Taught A Class At Stanford – Here Are Some Of The Coolest Things We Learned
Business Insider
Venture capitalist and hedge fund manager Peter Thiel just finished guest teaching a course at Stanford University, where he gets to impart his wisdom on hungry minds.
http://jlne.ws/LJZDPo

Gupta lawyer: Hot air drove Galleon
New York Post
At Raj Rajaratnam’s Galleon Group hedge fund, “boasting or bragging” about phony corporate connections was commonplace, a Manhattan federal jury was told yesterday.
http://jlne.ws/LJZDPv

Banks & Brokers

Moody’s Downgrades Nordic Banks
By DOMINIC CHOPPING And GUSTAV SANDSTROM – WSJ
Credit rating agency Moody’s Investors Service late Wednesday downgraded a range of financial institutions in Denmark and Finland, noting their strong reliance on wholesale funding and a weak operating environment.
http://jlne.ws/LJZE5U

JPMorgan to spin out ‘special investments’
By Tom Braithwaite in New York – Financial Times
JPMorgan Chase is spinning out the “special investments group” from its troubled chief investment office as executives clean up the division that caused $2bn trading losses, say people familiar with the matter.
http://jlne.ws/LJZFHf

Ackermann defends record at Deutsche
By James Wilson in Frankfurt – Financial Times
Josef Ackermann ended his turbulent decade-long leadership of Deutsche Bank with a robust defence of his record, saying Germany’s flagship bank would have needed a state bailout in the crisis if he had not improved its profitability.
http://jlne.ws/LJZE64

JPMorgan’s $40 Billion Mistake
Forbes
JPMorgan as a whale got noticed, then harpooned, not for $3 billion in paper losses, but $40 billion in market value blubber. Is this an overreaction to a trading loss of up to $3 billion? Yes, but macro storm clouds fill the sky. Euroland’s mess is not going away.
http://jlne.ws/LJZFXF

BGC Partners To Acquire Wolfe & Hurst, Inc.
BGC Partners, Inc., a leading global brokerage company servicing the wholesale financial and property markets, today announced that its subsidiary[1] has entered into a purchase agreement to acquire the assets of Wolfe & Hurst Bond Brokers, Inc., a leading municipal bonds interdealer broker in North America.
http://jlne.ws/LJZEms

Tradition to launch bank-backed FX platform
Tom Osborn – Financial News
Tradition Financial Services, the interdealer broker, is to launch an electronic platform for spot FX trading backed by several of the market’s largest banks, a move that comes as European banks seek trading platforms which neutralise the more predatory activities of high-frequency trading firms.
http://jlne.ws/Lf5Fcl

JPMorgan’s top hedge fund liaison out
CNN Money
Lou Lebedin, the head of JPMorgan’s prime brokerage unit, is out, according to a source close to the company. The prime brokerage unit executes and clears trades for hedge fund clients. JPMorgan is one of the giants in the space.
http://jlne.ws/LJZGef

Gorman, Greifeld ‘Face’ off
New York Post
Morgan Stanley is prepared to take Nasdaq to court to recoup money it believes it lost in the flubbed Facebook initial public offering. CEO James Gorman’s investment bank, which led the now-notorious, snafu-ridden Facebook IPO, believes Bob Greifeld’s Nasdaq owes it roughly $10 million, sources said.
http://jlne.ws/LJZEmH

Morgan Stanley CEO defends Facebook IPO conduct
Market Watch
Morgan Stanley (MS) Chairman and Chief Executive James Gorman defended the securities firm’s role in Facebook Inc.’s (FB) tumultuous initial public offering, telling employees internally that the firm worked “100% within the rules” and calling the steep decline in Facebook’s stock “disappointing.”
http://jlne.ws/LJZGuy

New Chairman Of The Board And Board Member Appointed At Neonet
Peter Melbi Has Been Appointed New Chairman Of The Board And Stellan Abrahamsson New Board Member Of Neonet
http://jlne.ws/LJZGuK

STREET MOVES: EF Hutton Adds Former UBS Executive, Price, To Board
By Brett Philbin, Of DOW JONES NEWSWIRES
E.F. Hutton Group, a once dormant, storied Wall Street firm, said former UBS AG brokerage executive Jamie Price would join its board. The move is the company’s latest step as it prepares to re-launch as a boutique financial-advisory firm in the second half of 2012.
http://jlne.ws/LJZETq

Citi Launches Enhanced Liquidity and Portfolio Analytics Capabilities for Funds of Hedge Funds Clients
Business Wire via Yahoo! Finance
Citi has expanded its global capabilities for administration and custody services to assist fund managers in establishing a more efficient, informed and effective investment proces
http://jlne.ws/LJZGLd

Ladenburg Thalmann Names Senior Investment Banker David Strupp to Bolster Healthcare Practice
Business Wire via Yahoo! Finance
Ladenburg Thalmann Financial Services Inc. today announced that David J. Strupp, Jr., a senior investment banker in the healthcare space, has joined Ladenburg Thalmann & Co.
http://jlne.ws/LJZETF

RBS says CEO needs “freedom” to carry out turnaround
Reuters via Yahoo! News
Royal Bank of Scotland’s chief executive and management team need to be given the freedom to complete their five-year turnaround plan without excessive interference, the British bank’s chairman said.
http://jlne.ws/LJZHP9

Citigroup’s Pandit: Not Planning To Sell Polish Unit – Report
Dow Jones
Citigroup Inc. (C) isn’t planning to sell its Polish unit, Bank Handlowy w Warszawie SA, and is pleased with how it has performed in recent years, Citigroup Chief Executive Vikram Pandit was quoted as saying in Polish daily Rzeczpospolita Thursday.
http://jlne.ws/LJZH1J

Clearing & Settlement

Burgundy CCP Interoperability With EuroCCP – Project Update
Based on regulatory approval, the launch date for interoperability with EuroCCP will be 28 June.
http://jlne.ws/LJZI5C

CME Group Clearing Advisory
IMPORTANT: CDS Margin Parameter Change – Effective May 31, 2012
http://jlne.ws/LJZH1R

Indexes & Products

Seven new UBS ETFs launched on Xetra
http://jlne.ws/LJZHi9

FC Schalke 04 plans bond in Entry Standard
http://jlne.ws/LJZHii

ETFs to Weather Europe’s Debt Storm
ETF Trends via Yahoo! Finance
After the recent European elections, notably in France and Greece, the markets experienced another period of high volatility that left stocks and exchange traded funds reeling.
http://jlne.ws/LJZHyA

Warsaw Stock Exchange Starts To Calculate Regional Stock Index WIG-CEE
http://jlne.ws/LJZHyP

FTSE Establishes New ESG Service Unit With Two Senior Appointments
http://jlne.ws/LJZICM

Technology

Fixnetix Introduces Exchange Membership Service Software: iX-EMS
Fixnetix, global managed services provider for market data, trading and risk controls, announced today a new product, iX-EMS, a software version offering similar functionality to iX-eCute, the nanosecond Field Programmable Gate Array.
http://jlne.ws/LJZICT

Sapient Global Markets helps Research Affiliates Enhance Investment Product Delivery through Improved Data Management
http://jlne.ws/LJZITb

S&P Capital IQ Selects Euroclear’s Xtrakter For Daily Pricing Data
http://jlne.ws/LJZKKP

Hibernia Atlantic Announces New Low Latency Managed Connectivity to Key New Jersey Financial Trading Facility
Business Wire via Yahoo! Finance
Hibernia Atlantic, a global and metro provider of diverse high bandwidth connectivity, announces today that its newly constructed low latency route connecting 165 Halsey to 1400 Federal Blvd in New Jersey is ready for service.
http://jlne.ws/LJZITt

ConvergEx Group Hires Jeremy Bruce to Head European Sales
PR Newswire via Yahoo! Finance
ConvergEx Group, a leading technology company, today announced that Jeremy Bruce has been named managing director and head of European Sales for the company’s global execution business.
http://jlne.ws/LJZKKY

Enforcement

SEC Charges Phoenix-Based Investment Adviser and Firm With Fraud
The Securities and Exchange Commission today charged a Phoenix-based investment adviser and his firm for recommending investments without telling clients about his personal stake and exploiting a client who was buying an ownership share in the firm.
http://jlne.ws/LJZJ9O

CFTC: Federal Court In New Jersey Orders Victor Eugene Cilli And His Company, Progressive Investment Funds LLC, To Pay Over $700,000 In Restitution And Penalty In Commodity Pool Ponzi Scheme – Cilli Also Pled Guilty To Related Fraud And Other Criminal Charges
http://jlne.ws/LJZJqd

Hedge fund boss found guilty in $600 million fraud
Reuters via Yahoo! News
Magnus Peterson, the boss of collapsed hedge fund business Weavering, has been found guilty of defrauding investors and ordered to pay hundreds of millions of dollars in damages. London’s High Court ruled that Peterson, manager of the Weavering Macro Fixed Income fund, deceived clients and breached his duty of care to investors with a strategy that could not cope with the vagaries of markets at the height of the global credit crisis.
http://jlne.ws/LJZL1s

Further Arrest In UK’s Financial Services Authority Unauthorised Business Investigation
A 54 year old man was arrested yesterday on suspicion of committing offences under the Financial Services and Markets Act 2000 and the Fraud Act 2006 in connection with an ongoing FSA investigation into a suspected unauthorised foreign exchange trading scheme.
http://jlne.ws/LJZJqq

Ex-UBS Client Roessel Pleads Guilty in Offshore Tax Case
Bloomberg
Former UBS AG (UBS) client Wolfgang Roessel pleaded guilty to failing to report more than $11 million in Swiss accounts to the U.S. Internal Revenue Service.
http://jlne.ws/LJZLhT

SEC Obtains Final Judgement Against Robert Bard
Fulton County News
A U.S. District Court for the Middle District of Pennsylvania has entered a final judgement and order in the U.S. Securities and Exchange Commission’s (SEC) securities fraud case against Warfordsburg financial advisor Robert Bard and his firm, Vision Specialist Group.
http://jlne.ws/LJZJGN

[ASIC] Former AWB managing director acknowledges directors duty breaches
http://jlne.ws/LJZJGV

Environmental & Energy

EEX wins Energy Risk Award in the category ‘Energy Exchange of the Year’
The European Energy Exchange (EEX) has won Energy Risk’s ‘Exchange of the Year’ Award. Each year, the Energy Risk magazine rewards excellence in a number of energy business disciplines.
http://jlne.ws/LJZLym

Global carbon market value rises to record $176 bln
Reuters
Carbon market trading rose 11 percent to a record value of $176 billion in 2011 as an increase in secondary trading volumes offset lower prices and slowing economies, the World Bank said on Wednesday.”
http://jlne.ws/Ky5A68

**JK – Trading in secondary UN offsets rose 43 percent.

THE REPORT
State and Trends of the Carbon Market 2012 (Executive Summary)
World Bank
http://jlne.ws/LURY4m

Asia-Pacific

TSE and JASDEC Agree on New Joint Service Enhancement of Corporate Action Information Service and Implementation of ISO20022
http://jlne.ws/LJZJXk

Citigroup Selling Fund for Japan’s Local Banks to Hedge JGB Risk
Bloomberg
Citigroup Inc. (C) started selling a fund for Japanese regional banks to hedge against the risk of a decline in the value of their government bond holdings as the world’s biggest public debt swells.
http://jlne.ws/LJZJXm

Broker Ginga launches China coal swaps on June 1
Reuters
Asia-headquartered commodity brokers Ginga Petroleum will launch a new China thermal coal swap – API8 – on June 1 on its electronic trading system, the company announced on Wednesday.
http://jlne.ws/LJZLOT

ING Short Lists Bidders for Asia Life Insurance Assets
BY ALISON TUDOR-ACKROYD – WSJ
Hong Kong—ING Groep NV and its advisers have narrowed down the field of suitors for its Asian life insurance operations to a short-list that includes Canada’s Manulife Financial Corp. and Hong Kong’s AIA Group Ltd., people familiar with the matter have said.
http://jlne.ws/LJZLP2

[TSE] Summary of Comments Submitted in the Public Consultation Procedure Regarding “Revisions to Listing Rules Regarding Corporate Governance to Restore Confidence in the Securities Market” (Related to Comments made in English)
http://jlne.ws/LJZKdZ

Shenzhen Stock Exchange: First Public Censure Issued To ChiNext-Listed Company
http://jlne.ws/LJZM5p

Tokyo Grain Exchange: Maximum Rate For Additional Discharging Ports Charges
http://jlne.ws/LJZN9z

Stock Exchange Of Thailand Visits Clearing Site Of India’s MCX
http://jlne.ws/LJZN9C

Shenzhen Stock Exchange Publicly Reprimands Zhendong Pharmaceutical And Relevant Parties
http://jlne.ws/LJZM5B

Frontier Markets

DGCX Enhances Trading Proposition By Extending Trading Hours – Exchange Will Open 30 Minutes Before Indian Exchange Traded Currency Derivatives Markets
The Dubai Gold and Commodities Exchange (DGCX) today announced an extension of its trading hours. From the 4th June, 2012, the Exchange will open from 07:00 (UAE time), 1 hour and 30 minutes earlier than its previous opening time. The extended trading time will provide DGCX participants with a 30 minute window before the exchange traded currency derivatives markets open in India.
http://jlne.ws/LJZMlT

Zambia picks Barclays, Deutsche for debut Eurobond
Reuters via Yahoo! News
Zambia, Africa’s biggest copper producer and one of its most promising frontier markets, has selected Barclays and Deutsche Bank as book runners for a debut $500 million Eurobond, a government source said on Thursday.
http://jlne.ws/LJZMm0

PMEX Holds Technical Training Workshops In Lahore And Islamabad
http://jlne.ws/LJZMm5

Egypt Celebrates 50th Anniversary Of The CFA Program With Opening Of The Egyptian Exchange
Event Coordinated With 22 Stock Exchanges Around The World – The Largest Number Of Markets Opened Or Closed By One Organization In A Single Day – New CFA Institute Logo Unveiled To Mark Anniversary
http://jlne.ws/LJZNqc

Deutsche Rules EMEA Research, Sales and Trading, Institutional Investor Surveys Find
Marketwire via Yahoo! Finance
Deutsche Bank leads the lineup in Institutional Investor’s Emerging-Markets Equity & Fixed-Income Research Team for a second year running — and claims the top spots on both the Emerging-Markets Sales Team and the Emerging-Markets Trading Team.
http://jlne.ws/LJZMm8

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