John Lothian Newsletter: Oslo Børs buys Sweden’s Burgundy; Tradeweb launches 5,000-stock ETF platform; NYSE Euronext And Taiwan Futures Exchange Sign Memorandum Of Understanding

Oct 16, 2012

Oslo’s exchange signs up to purchase the Burgundy from its Swedish owners as a way to consolidate influence in Scandinavian trading.  Tradeweb launches an ETF trading platform, allowing access to thousands of ETF products. NYSE Euronext and the Taiwan Futures Exchange sign a memorandum of understanding to share connectivity and access via NYSE’s order routing system.

First Read

Mounting venue losses spark fears of fresh consolidation
Tim Cave – Financial News
Mounting losses at Europe’s largest alternative trading venues have reignited speculation that the platforms could be subject to a fresh round of consolidation. Five years on from regulation that paved the way for their creation, trading venues Chi-X Europe, Bats Europe, Turquoise, Equiduct and Burgundy, reported combined losses totalling almost £30m in their most recent financial statements.


LME opens doors to high-speed traders
Tim Cave – Financial News
This week marks the start of an important fixture in the mining and metals industry calendar, which attracts thousands of practitioners to London to catch up, network and discuss the health of the sector. The likely hot topic at London Metal Exchange Week this year: the rise of electronic trading in commodities markets, and particularly on the LME. According to market sources, the arrival, via brokers, of high-frequency trading firms on to the exchange in recent months is the clearest sign yet that the LME’s electronic platform, Select, holds sway over its traditional open outcry ring.


World Federation of Exchanges elects Andreas Preuss as new Chairman
At its annual meeting in Taipei, the General Assembly of the World Federation of Exchanges (WFE) has elected Andreas Preuss, Deputy CEO of Deutsche Börse AG and Eurex CEO, to be its new Chairman.

***Great choice.


Eurex to launch new incentive scheme for participants located in Asia and Australia
The international derivatives market Eurex Exchange has announced a new incentive program for trading participants based in Asia and Australia. The initiative – launched at the beginning of October – aims to attract new participants to Eurex and to make trading even more interesting for existing members. The program offers significant reductions in connection fees and will grant additional volume-based discounts for Asian-based subsidiaries of existing Eurex members.


ICAP and Rapid Ratings launch Credit Derivatives Service
ICAP plc, the world’s leading interdealer broker and provider of post trade and information services, announces today that it has launched a joint credit derivatives rating service with Rapid Ratings, an alternative rating, research and analytics firm. The new product brings together two independent sources of market-leading information to deliver a unique and innovative view of the credit derivatives market.


Dubai Merc plans product expansion
Tom Osborn – Financial News
The Dubai Mercantile Exchange, the Middle Eastern oil trading platform, is looking to expand its range of derivatives contracts as it begins to capitalise on its half-ownership by US futures giant CME Group. CME Group upped its stake in the bourse in February, when the Dubai government cut its holding in the exchange. A group of investment banks and oil firms, including Shell and Goldman Sachs, account for 12% of the company’s shares between them.


[Video] DME CEO Aims to Tap Arab, Indian Banks for Funds
Christopher Fix, chief executive officer of Dubai Mercantile Exchange, talks about attracting lenders to facilitate funding for energy trading. He speaks with Manus Cranny on Bloomberg Television’s “Last Word.”


It’s what you didn’t say….
ISDA Media Comment
A number of stories last week chronicled the fact that regulations stemming from Dodd-Frank on the OTC derivatives markets have begun to take effect. These stories quite frankly come as a bit of surprise. But it’s not because of what they say. It’s because of what they don’t say.


Brokers accelerate white-labelling
Richard Partington – Financial News
To rebrand another company’s product and sell it on as your own is a well-known business model in the food, drink and electronic industries. This concept of “white-labelling” is becoming more prevalent, and lucrative, in the banking sector too.


DealBook: Nowadays, Wall Street Saviors May Wish They Weren’t
The banks that bought up failing rivals are now being sued for the misdeeds of those firms before their rescues. Next time, Wall Street may be less cooperative.


CTA Corner: Are correlations finally falling?
William Mitting – FOW
2011 was the worst year on record for CTAs. According to the BarclayHedge CTA Index, which tracks the reported returns of over 600 CTAs, overall performance dropped to -3.83% in 2011, the steepest, but only the fifth annual negative return, since 1980 when the index begins.


Natural-Gas Market Stung by High-Speed Traders
Veteran natural-gas trader John Woods has a simple trading strategy around data on U.S. gas stockpiles: Stay away. Mr. Woods and other floor traders on the New York Mercantile Exchange used to look forward to the weekly report of gas-inventory figures by the U.S. Energy Information Administration, widely considered the best reading of gas supply and demand in the U.S. Traders would be glued to their computers before the data’s release at 10:30 a.m. on Thursdays, ready to dive into the busiest trading window of the week. But in the past few months, unusual trading patterns have pushed many seasoned traders to the sidelines.


Cruden: Is Libor a trustworthy index?
Christopher Cruden – FOW
According to some politicians it isn’t. (Can we trust politicians?) The issue came into question after last summer’s scandal, when banks’ were caught red-handed misreporting submissions for the calculation of the Libor indices. Two reasons were behind the large banks’ violations of Libor’s integrity, both seemingly confirmed: 1. To make banks look healthier 2. To reap insider trading profits.


SunGard Study Reveals Gaps in Financial Risk Management Methods Among Corporations
A recent SunGard study, “Financial Risk Management in Treasury,” has revealed that corporate treasurers around the world find it difficult to consistently and accurately measure and monitor financial risk exposure. The study of more than 200 treasury professionals from more than 25 countries examined practices around interest rate, credit, counterparty, commodity, liquidity, foreign exchange, and market risk.


The Wasendorf Case Hotline Is Up and Running
Jacob Bunge – WSJ
Russell Wasendorf Sr.’s media empire continues to expand more than three months after his brokerage Peregrine Financial Group collapsed in scandal, but it’s probably not the expansion he had in mind.

JLN Managed Futures

New Whitepaper: Managed Futures and Hedge Funds: A Match Made in Heaven
A newly released white paper featuring hedge funds, Revisiting Kat’s Managed Futures and Hedge Funds: A Match Made in Heaven (pdf), has been released by hedge fund risk management and research firm Sunrise Capital Partners LLC. The whitepaper points out that adding allocations of hedge funds to traditional portfolios of stocks %26 bonds “helps” – e.g. increases the return and reduces standard deviation of the overall portfolio. However, it also introduces a negative side effect – increased tail risk.

**The white paper can be found HERE. Ten years after the first Kat study, Rollinger looks at June 2001 to December 2011 and concludes that Kat’s study still holds, that managed futures and hedge funds combined, proved best for traditional portfolios.

Emerging Manager Forum Miami, December 13, 2012
CTA Expo
In response to interest from Latin American and South American investors and traders CTAExpo LLC is holding its first conference in Miami on December 13, 2012, at the Eden Roc Renaissance. The focus of Emerging Manager Forum Miami is to help these Professional Capital Raisers, Investors, Asset Allocators and Traders meet their counterparts from the United States and Europe.

Rising Global Equities Lift Hedge Fund Performance; Barclay Hedge Fund Index Gains 1.79% in September
Hedge funds gained 1.79% in September, according to the Barclay Hedge Fund Index compiled by BarclayHedge. The Index is up 5.99% year to date. “In spite of news that highlighted continuing economic deterioration in the US, Europe, and China, investors remained in mild risk on mode,” says Sol Waksman, founder and president of BarclayHedge.

**DA: For more data, see the scorecard below.


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Lead Stories

Oslo Børs buys Sweden’s Burgundy
Philip Stafford –
Oslo Børs, the Norwegian stock exchange, is to buy Burgundy, the Swedish alternative trading platform, as it bids to fend off fierce regional competition. Norway’s main stock market operator will use its smaller rival, which is owned by a consortium of banks and brokers, to push further into the listing of bonds and equities in the Nordic region.

Tradeweb launches 5,000-stock ETF platform
Tom Osborn – Financial News
Electronic market operator Tradeweb has launched an execution platform for exchange-traded funds, aiming to bring what it calls a significant amount of liquidity to the European ETF marketplace. The platform will offer buyside firms access to 5,000 European-listed ETFs via request-for-quote trading. The firm, which is owned by Thomson Reuters and a consortium of investment banks, has already signed 11 dealers to the platform and expects several more.

NYSE Euronext And Taiwan Futures Exchange Sign Memorandum Of Understanding – Exchanges Enter Into Agreement To Connect Trading Communities
NYSE Euronext (NYX) and the Taiwan Futures Exchange (TAIFEX) today signed a Memorandum of Understanding (MOU) to explore bilateral business opportunities and connect their respective customer bases in Asia, Europe and the U.S. through NYSE Euronext’s order routing system. This alliance will support the development of the exchanges’ futures and options markets.

HKEx chief looks for ‘lowest hanging fruit’
Michelle Price – Financial News
The head of the Hong Kong stock exchange – the world’s second largest exchange by its own market capitalisation – has downplayed the prospect of a further game-changing acquisition in the wake of its takeover of the London Metal Exchange. Charles Li, the chief executive of Hong Kong Stock Exchanges and Clearing, said yesterday in a press briefing that “all exchanges are resource-constrained”.

Nasdaq OMX market share slips in Nordics
Tim Cave – Financial News
Nasdaq OMX has suffered from a decline in its market share in the Scandinavian region – where it operates four stock exchanges – in marked contrast to other European bourses, as it faces increased competition from rival venues.

Fed Governor’s Plan to Limit Bank Size Fuels Debate
Since the financial crisis, academics, politicians and even former bank chieftains have called for the nation’s banking behemoths to be broken up or shrunk — calls that appear to have fallen largely on deaf ears among Washington’s policy makers. Now, a powerful insider has suggested a simple tool that could place a tight limit on the size of individual banks.

Sweden says no taxpayer money for bailouts under banking union
Sweden said on Monday it wanted a make sure its tax payers would not end up paying for foreign bank bailouts under any European banking union and that it was allowed to set higher capital demands on its banks than others.

Commodity trade finance lures Arab banks
Javier Blas in London –
Liquidity-rich Arab banks have been quietly participating in commodity trade finance, which until recently, was dominated by a handful of French banks that provided credit lines to top trading houses such as Glencore, Vitol and Cargill.

NY Fed sends thousands of Libor documents to Congress
The New York Federal Reserve said on Monday that it sent Congress a second trove of documents that show that the central bank took action to fix problems with the key interest rate Libor.


Dodd-Frank Poses Unique Challenges for Energy Firms
By Mayra Rodriguez Valladares
Energy and other commodity businesses recently caught a break when a U.S. District Court judge ruled against a Dodd-Frank provision on trading position limits. But because Dodd-Frank focuses substantially on regulating over-the-counter derivatives and making them more transparent, companies using energy derivatives will be impacted just as much, if not more so, than banks in some ways.

CFTC’s clearing timeline prompts backloading “meltdown”
Matt Cameron, Duncan Wood – Risk magazine
Preparations for mandatory central clearing of over-the-counter derivatives hit a speed bump this week when it appeared the industry had misunderstood a crucial element of the timeline laid out by the Commodity Futures Trading Commission (CFTC).

UK’s Financial Services Authority: Martin Wheatley Sets Out The “Journey To The FCA”
The Financial Services Authority (FSA) has published the Journey to the FCA a paper that sets out how the UK’s new financial conduct regulator will operate. The Financial Conduct Authority (FCA) will start work next year with a remit to make financial markets work well so consumers get a fair deal.

Speech Delivered Before The Cadwalader Energy Conference, CFTC Commissioner Jill E. Sommers

ESMA Publishes Updated Statistics In The CEREP Database
The CEREP database is updated today with new statistical data on the performance of credit ratings including transition matrices and default rates. The new set of statistics covers ratings data up to 30 June 2012.

Exchanges & Trading Facilities

Cleartrade Exchange to list bunker fuel swap contracts
Cleartrade Exchange (CLTX) has today announced the listing of three Fuel Oil single Swap contracts, which allow bunker traders and users to execute swaps of as little as one metric tonne of fuel oil via the CLTX OTC commodity and freight derivatives platform.

NYSE Euronext launches retail matching facility
NYSE Euronext (NYX) today announced the launch of a Retail Matching Facility (RMF) on its European regulated cash markets¹, a new service which enables Retail Liquidity Providers to offer price improvements to retail investors. This initiative, which meets all pre- and post-trade MiFID requirements, will be available as of mid- January 2013.

World Federation of Exchanges Unveils New Statutes at 52nd General Assembly
Today the General Assembly of the World Federation of Exchanges (WFE) approved new statutes that alter the structure of the organization from a secretariat to a corporate body. Chairmen and Chief Executives from more than 50 of the world’s leading exchanges gathered in Taipei this week for the 52nd WFE General Assembly and Annual Meeting and officially ratified a new structure for the organization.

Dalian Commodity Exchange And NASDAQ OMX Sign MOU
Dalian Commodity Exchange (DCE) and The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) (Nasdaq OMX) signed a memorandum of understanding (MOU) on October 15 in Taipei, with an aim to seek new business opportunities on a global scale as well as substantial business exchanges and cooperation in more fields. DCE President %26 CEO Liu Xingqiang and NASDAQ OMX Vice Chairman Sandy Frucher were present at the signing ceremony.

Hong Kong Exchanges’ LME Buy Will Bring New Commodity Products-CEO
Dow Jones
Hong Kong Exchanges and Clearing Ltd.’s deal to buy the London Metal Exchange will lead to new commodity offerings and provide the best opportunity for exposure to Chinese growth and liberalization, Hong Kong Exchanges’ Chief Executive Charles Li said Monday.

TMX Is Focused on Integration, Not Acquisitions, CEO Says
TMX Group Inc. will focus on integrating recent acquisitions before seeking another deal, Chief Executive Officer Thomas Kloet said, the latest indication that no takeover of Direct Edge Holdings LLC is imminent.

BME Launches New Cloud Solutions Service
BME, through its innovation subsidiary, BME Innova, and in association with Anadat Consulting, one of Spain’s main virtualisation integrators, has launched the solution BME InCloud, a Cloud computing service tailored to the needs of SMEs.

Burgundy To Continue Its Nordic Growth With Oslo Børs
Press Release
Together with Burgundy, Oslo Børs will offer a competitive and effective alternative in the Nordics. The Nordic owners of the Swedish exchange Burgundy have entered into an agreement for Oslo Børs ASA to take over 100% of the shares in the company.

Biggest Wins From Exchanges In Three Corners Of The Globe – FTSE Mondo Visione Exchanges Index Bounces Back To Health In Q3 2012 With 5.5 Per Cent Increase – September Index Closed Up 4.8 Per Cent
The performance of the world’s leading exchanges saw the FTSE Mondo Visione Exchanges Index bounce back to health in quarter three, with a 5.5 per cent increase in value compared to the brutal results of quarter two this year which saw the Index value drop by 11.4 per cent.

September 2012 FIF Market Share And Market Dynamics Reports – Executive Summary

ATHEX Announces The Launch Of Its New Upgraded Range Of Statistical Products
ATHEX is proud to announce the launch of its new, series of Statistical Products, providing all interested parties, with highly reliable statistical data extracted directly from the information systems that produce them.

BM%26FBOVESPA Debates Sustainability At The 52nd General Assembly And Annual Meeting Of The World Federation Of Exchanges (WFE) – For The First Time Environmental, Social And Corporate Governance Questions Will Be Covered By A Panel Dedicated To These Matters

Equity Options Exercise Totals BRL 3.25 Billion On BM%26FBOVESPA

The MiG Report September 2012 Brought To You By: The Market Intelligence Group At TSX And TSX Venture Exchange

NYSE Euronext Announces Expiration And Final Results Of Tender Offer For Any And All Of Its 4.80% Notes Due 2013

ICE Completes Transition of Energy Swaps to Futures
ATLANTA, Oct. 16, 2012 /PRNewswire/ — IntercontinentalExchange (NYSE: ICE), a leading operator of global markets and clearing houses, today announced that it has completed its transition of cleared over-the-counter energy swaps to futures. This transition was initiated based upon feedback from customers seeking the regulatory certainty of futures markets amid the continued evolution of new swap rules.

Hedge Funds & Managed Futures

A Rare Look Into How High Frequency Trading Firms Are Actually Doing
Business Insider
There’s been a lot of talk about what high frequency trading firms do to the market. But this weekend, the New York Times took a rare step into how HFT firms are doing for themselves.

Qatar Weighs Stake in Morgan Stanley Commodities Unit
Qatar, the Persian Gulf country seeking to reduce its dependence on gas reserves, is weighing a potential stake in Morgan Stanley ’s commodities unit, Prime Minister Sheikh Hamad bin Jassim Al Thani said.

2100 Xenon Management Team To Acquire Equity Interest Held by Parent, Old Mutual Asset Management
2100 Xenon Group, an affiliate of Old Mutual Asset Management, is pleased to announce it will acquire the majority ownership interest in its business from its parent company Old Mutual Asset Management.

Platts Metals Week To Be Re-Launched As A Daily Beginning October 30 – News, Analysis, Commentary And Key Nonferrous Prices
Platts Metals Week, a publication reporting on news and prices in the nonferrous metals markets, will be renamed and issued daily beginning October 30, 2012. The newsletter has been published by Platts, a leading global energy, petrochemicals and metals information provider, since 1972.

Sugar Glut Extending to Longest in More Than Decade: Commodities
Luzi Ann Javier, Pratik Parija and Supunnabul Suwannakij – Bloomberg
The global sugar glut is extending into a third year, the longest stretch in more than a decade, as Brazil and Australia expand output and imports contract to the smallest since 2008.

Cargill’s new Managing Director Cocoa focuses on innovation and customer service

Funds’ Bullish Positions In U.S. Precious Metals Futures, Options Continue To Grow — CFTC
Funds increased their net bullish positions in precious metals futures and options contracts traded on Comex division of the New York Mercantile Exchange and the Nymex, making it eight straight weeks of gains for gold and platinum group metals, according to U.S. government data released Friday.

MLC Appoints DGAM as Hedge Fund Advisor
TORONTO, ONTARIO– – MLC, the wealth management division of the National Australia Bank, has appointed Diversified Global Asset Management Corporation, a leading institutional alternative investment manager and advisor, as its hedge fund advisor.

Penn chief investment officer to step down
Daily Pennsylvanian
Gilbertson was appointed the second CIO in the University’s history in 2004 to oversee the management of the then-$3.9 billion endowment.

Banks & Brokers

RBS Said to Suspend European Rates Trading Head on Libor
Gavin Finch and Liam Vaughan – Businessweek
Royal Bank of Scotland Group Plc suspended its head of rates trading for Europe and the Asia- Pacific region, the first senior manager to be put on leave as part of the lender’s probe into allegations of Libor-rigging, two people with knowledge of the move said.

Integral Selected to Launch Wells Fargo’s New FX Platform
Business Wire via Yahoo! Finance
Integral Development Corp., a leading provider of FX trading solutions and services, announced today it was selected by Wells Fargo %26 Company, to launch Wells Fargo’s new FX pricing service.

Citigroup’s margins rise, results beat expectations
Reuters via Yahoo! News
Citigroup Inc made more money from trading in the third quarter and its lending profitability rose, surprising investors and lifting the bank’s shares 5.5 percent.

Video – J.P. Morgan Like Other Banks Not Earning Enough Money to Justify Its Existence
Something remarkable happened Friday in the banking sector. No, it wasn’t J.P. Morgan Chase %26 Co. and Wells Fargo %26 Co. kicking off the third-quarter earnings season by touting record profits. Or J.P. Morgan boss James Dimon declaring that the U.S. housing market “has turned the corner.” The wondrous event took place deep in J.P. Morgan’s financial statements.

State Street investors seek new blood at top
Dan McCrum and Tom Braithwaite in New York –
Four of the 10 largest shareholders at State Street are agitating for the removal of the custody bank’s chief executive or chief financial officer amid growing frustration at its stagnant share price and the pace of cost-cutting.

Fed Should Push to Cut Biggest Banks Down to Size
Daniel Tarullo, a governor of the Federal Reserve System, spoke for the first time last week about potentially imposing a size cap on the largest U.S. banks. His language, naturally, was that of a central banker.

NY Fed’s Dudley: No bond bubble
Market Watch
NEW YORK — The head of the New York Federal Reserve on Monday denied that the Fed’s expansionist monetary policy has created a bubble in bond yields.

Morgan Stanley facing discrimination lawsuit
Associated Press via Yahoo! News
Morgan Stanley is being accused of discriminating against black homeowners and violating federal civil rights laws by providing strong incentives to a subprime lender to originate mortgages that were likely to go unrepaid.

Santander blames IT integration costs for collapse of RBS branch deal
Spanish banking giant Santander has pulled out of a deal to buy 316 UK branches from the Royal Bank of Scotland, blaming IT integration costs and complications.

Adebayo O. Ogunlesi to Join Goldman Sachs Board of Directors
The Board of Directors of The Goldman Sachs Group, Inc. today announced the appointment of Adebayo O. Ogunlesi as an independent director of the firm, effective October 15, 2012

JonesTrading Names Tucker To Head Convertible Bonds – New Initiative Continues Asset And Regional Growth

E*TRADE Hosts Investor Education Day in New York

Judge Tosses Key Claims in Lehman Executive Class Action
A federal judge dismissed some key claims in a class action lawsuit against former officers of Lehman Brothers Holdings Inc., including claims based on repurchase agreements, known as Repo 105, as well as claims based on overvalued real estate.

Clearing & Settlement

Capital ruling adds headache to LCH deal
Tom Osborn – Financial News
Proposals unveiled by European regulators last month will force clearing houses to hold more capital. This is unwelcome news for the European clearing industry and bad timing for the London Stock Exchange, which is in the final stages of a 60% takeover of the continent’s largest central counterparty clearing house LCH.Clearnet.

Newedge to Serve as Exclusive Swap Counterparty of New UCITS Fund by EEA Fund Management Limited
Newedge, a global leader in multi-asset class prime brokerage, execution and clearing services, announced today that the firm has been appointed as exclusive swap counterparty to the EEA Diversified Trends fund.

Indexes & Products

ETF price war expands to BlackRock’s iShares ETFs
Associated Press via Yahoo! News
BlackRock Inc.’s iShares unit is reducing the investment fees charged at six of its largest exchange-traded funds as the biggest ETF provider expands a fee-cutting war that’s benefiting cost-conscious investors.

The Dow Jones Credit Suisse Hedge Fund Index Finished Up 1.04% in September

Ignoring Sub-$100M ETFs: A Costly Idea
Perhaps the worst number to come along in the history of exchange-traded products is $100 million. As in $100 million in assets under management means the fund is “good,” it will

Invesco PowerShares to Expand Factor-Driven Suite With High Dividend ETF


OTP Bank Goes Live with SunGard’s Valdi for Trading and Order Management
OTP Bank, the banking arm of the OTP Group, the Magyar universal financial services group, has gone live with SunGard’s Valdi trading and order management suite of solutions.

Kimberly-Clark Joins SWIFT With Broadridge As Its Global Service Provider

Misys Launches Summit Ft Version 5.6 To Comply With Increased Regulatory Controls
Misys, the global leader in treasury and capital markets solutions, announced today the release of Summit FT Version 5.6, which enables capital markets firms to quickly adapt their operations to accommodate the growing volumes of OTC trades being centrally cleared, and to meet the latest requirements of both Dodd-Frank and EMIR.

BMO’s Investment Funds Group Selects Milestone Group For NAV Control And Distribution Processing – Reinvents How Fund Administration Is Performed In Canada
Milestone Group, the specialist provider of optimized fund processing solutions to the global funds industry, has today announced that BMO Financial Group (BMO) has selected its pControl platform to automate the management and control of its NAV production and validation processes as well as distribution processing.

OptionsCity Software introduces Freeway 2.0, Metro 4.0.
OptionsCity Software, a leading provider of electronic trading solutions, today announced the release of Freeway 2.0 and Metro 4.0, the latest editions of the two award-winning trading platforms.


UBS rogue trader loss less than crisis damage, UK court told
Reuters via Yahoo! News
LONDON – UBS’s losses in the financial crisis dwarfed a $2.3 billion hit from a rogue trading scandal last year and caused longer-lasting damage, lawyers for accused fraudster Kweku Adoboli said in court on Monday. Adoboli’s lawyers have so far argued at his trial that he believed he was trading for the good of the bank, and that colleagues had turned a blind eye to his practices. …

UBS Whistle-Blower’s Ex-Lawyers Seek Share of IRS Award
A Washington law firm that worked for Bradley Birkenfeld, the former UBS AG banker who exposed how the Swiss lender helped Americans evade taxes, claims it’s owed $13 million of his $104 million whistle-blower award.

Investor Alert: BCSC issues warning about Pegasus Pharmaceuticals Group

Environmental & Energy

Voluntary market resilient to low CDM prices
The voluntary carbon market is growing and has remained unaffected by low prices in the clean development mechanism (CDM), project developers told Argus.

**RKB – Source says the massive price dip that has occurred in the CER market has not happened in the voluntary market — it has not had such a downward trend.

EU to Present Detailed Plan to Curb CO2 Oversupply on Nov. 14
The European Union’s regulatory arm said it will present next month a detailed proposal to curb oversupply on the carbon market, rebutting speculation it may delay the plan.

MEPs push to fast-track carbon market debate
Frustrated MEPs are planning to fast-track a long-delayed amendment to the Emissions Trading System (ETS) directive, which would confirm the EU’s legal ability to withhold carbon allowances from auction, so boosting depressed carbon prices.

**RKB – A vote on the amendment is not due until 19 February 2013, frustrating to the European Commission’s top climate civil servant Jos Delbeke – and a 90-day cooling-off period had been feared before a final plenary vote.


Nomura Gets Biggest Fine in 12 Years by Japan Brokers Group
Takahiko Hyuga – Bloomberg
Nomura Holdings Inc. (8604) was fined 300 million yen ($3.8 million), the biggest penalty by the Japan Securities Dealers Association against any firm in 12 years, after employees leaked information on clients’ plans.

In Reversal, Cash Leaks Out of China
China, once a catch basin for the world’s money, is now watching cash stream out. Wealthy Chinese citizens are buying beachfront condos in Cyprus, paying big U.S. tuition bills for their children and stocking up on luxury goods in Singapore, frequently moving cash secretly through a flourishing network of money-transfer agents. Chinese companies, for their part, are making big-ticket foreign acquisitions, buying up natural resources and letting foreign profits accumulate overseas.

Japan to Subject Foreign Banks to Deposit Insurance System -Kyodo
Dow Jones
Japan’s Financial Services Agency plans to subject foreign banks’ branches in Japan to its deposit insurance system to enhance depositor protection, people close to the matter said Monday, Kyodo News reported.

Jefferies Granted Capital Markets Services License by Monetary Authority of Singapore
Jefferies today announced that it has been granted a Capital Markets Services License by the Monetary Authority of Singapore for the regulated activity of trading in futures contracts, for the firm’s Jefferies Bache Futures %26 Options business.

ASEAN Exchanges Unveils Key Milestones In The Development Of The ASEAN Asset Class

Frontier Markets

Islamic finance struggles toward mainstream in Azerbaijan
Reuters via Yahoo! News
BAKU/TBILISI – When a businessman in Muslim-majority Azerbaijan wanted a bank loan that complied with Islamic principles, until a few years ago he had to negotiate it under the table.

Dubai Financial Market Launches “Efsah”, The Sophisticated Online Solution For Swift And Effective Disclosing

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