John Lothian Newsletter: NYSE Euronext puts UK data centre under review; Bats to target index providers amid benchmark debate; Critics say SEC rule enshrines failed model

Oct 22, 2012

NYSE Euronext is taking a closer look at the strategic value of its giant, two year old data center in the UK, in the hopes of finding a way to get more revenue from the underused facility. BATS Chi-X Europe is reaching out to independent index providers in the hopes of getting its trading data included in various industry benchmarks. The SEC takes heat from some regarding its new capital requirements for derivatives. In today’s First Read, check out our latest MarketsWiki.tv interview: Byron Baldwin of Eurex exchange talks OTC clearing, portfolio margining, and segregation.

First Read

Shanghai Association for International Exchange of Personnel and The Options Industry Council Sign MOU Regarding Options Education in Shanghai
Shanghai Association for International Exchange of Personnel (SAIEP) and The Options Industry Council (OIC) announced today that they have signed a Memorandum of Understanding (MOU) to strengthen cooperation on options research and education. This is the first MOU in China for OIC. Members of SAIEP and OIC attended the signing ceremony in Shanghai, China on Friday, October 19, 2012.
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**** One more acronym is needed to make this announcement complete. ASAP please!

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Mifid-born trading venues feel the heat
Tim Cave – Financial News
Less than a week will separate the fifth anniversary of the European Union’s markets in financial instruments directive and a crunch vote on its second iteration in the European Parliament. “That answers your question as to whether Mifid has succeeded or not”, said one practitioner.
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Byron Baldwin

Byron Baldwin of Eurex Discusses OTC Clearing, Portfolio Margining and Individual Segregation
MarketsWiki.tv

Byron Baldwin is senior vice president of buyside relations for Eurex. He moved to New York from Eurex’s London office to in February 2011 in order to promote the firm’s listed products, connectivity for high frequency trading firms, and to promote Eurex’s move into OTC clearing. Baldwin spoke with John Lothian News Editor-at-Large Doug Ashburn about regulatory changes across jurisdictions, mandatory clearing of OTC derivatives, margin and collateral efficiency and Eurex’s individual segregation model.

Watch the video »

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Five Minutes With Scot Warren
Interviewed by Doug Ashburn – John Lothian News

Scot Warren is senior managing director of equity index products and services at CME Group, a position he has held since February 2010. He is responsible for leading the company’s equity and equity index product lines, including new product launches such as the U.S. dollar-denominated Ibovespa futures contract, which is set to launch Oct. 22, 2012. Warren spoke with John Lothian News Editor-at-Large Doug Ashburn about the new Ibovespa contract, how it differs from the existing Brazilian real-based Ibovespa that trades at BM&FBOVESPA (“BVMF”), and how this product launch fits with current trends in market participation, capital and regulation, and how it fits with CME Group’s global strategy.

Q: What is the new Ibovespa contract, and how does it differ from the Ibovespa index futures contract traded in Brazil?

A: This is a U.S. dollar-denominated version of the Ibovespa contract that trades on BVMF, which is a total return index and reflects the Brazilian market. We have had a multi-year partnership with BVMF, where we had mutual investments in each other’s firm, and we are trying to find ways to take down barriers to participation and bring incremental participants into the market. So when we look at U.S. investors trying to access Brazil, there are offshore registration requirements and demand for localized clearing and execution capabilities that present barriers to entry. For U.S. asset managers and hedge funds that want to transact business in Brazil, but maybe have a relatively modest amount to invest, it was a lot of work to access that market.

Having Ibovespa on a U.S. platform, which will clear trades in the U.S. and settle in dollars, removes many of those barriers to participation. We think this is a way to incrementally grow the market.

Continue reading »

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Investors fall out of love with hedge funds
James Mackintosh – FT.com
Have hedge fund managers lost their mojo? This week another of the industry’s rock stars retired and one of the most successful funds cut its fees, as figures showed hedge funds struggling to attract new money.
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**** We will always have Paris.

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Sometimes Markets Can Be Too Slow, Not Too Fast
Tim Worstall – Forbes
I know it’s fashionable to worry about High Frequency Trading , HFT, these days. I will admit to never really understanding what it is that people are worrying about. I can’t get it out of my head that the complaint is just that it wasn’t done that way when I was young and why do the kids of today need to do it all so darn quickly?
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**** Fast Markets were when things were slowed down.

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Hedge Fund Transparency: Is It Possible?
Peter Laurelli – Forbes
Hedge funds are not what they used to be. Gone are the days when investing directly in a hedge fund was only for the super-rich. The influence and practices of fund to funds is in decline while consultants and large institutional investors like pension funds have more say in the hedge fund world.
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**** There is always a way to hide things for people with lots of resources and the intent to hide.

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Rothschild’s glass half empty
William Hutchings – Financial News
Lord Jacob Rothschild, one of the grandest figures in the investment trust market, has cast doubts over the future of the £95bn industry and questioned the viability of investment trusts’ business model.
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**** Yes, but what is in the glass?

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FN100 Women: On the front line of the regulatory debate
Yasmine Chinwala – Financial News
This year’s FN100 Women, Financial News’ sixth annual editorial pick of the most influential female executives working in European financial markets, is dominated by those negotiating the plethora of new rules governing every single aspect of the industry.
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***** It should be the FN1000.

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Young Markets Announces Inaugural Award Winners
Young Markets, a new event devoted to the future of finance and opportunities therein which took place recently in Sibiu, Transylvania has announced the winners of their Inaugural Awards.
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***** The new effort from Patrick Young.

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Russia opts for market forces over export ban
Javier Blas in London – FT.com
The Kremlin has let the market to do its job. Russian wheat exports have slowed down to a trickle this month after prices in the port of Novorossiysk, the country’s major export terminal in the Black Sea, surged to a 20-year high recently.
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**** Can’t wait for the US Congress to effect an export ban now.

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London and New York fight to win technology flotations
Giles Turner – Financial News
Capturing listings of European technology companies is developing into a fight between London and New York. According to one London-based venture capitalist, at least 20 European tech companies are looking to list in London but regulation is said to be forcing firms across the Atlantic.
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**** Gee, there is a battle going on, like forever.

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Is ‘uncertainty’ really that big a deal?
Kate Mackenzie | FT Alphaville
In attempts to explain why companies (particularly in the US) are so reluctant to invest and hire of late, the word “uncertainty” will usually make an appearance. “Policy uncertainty” is generally seen as the enemy of business confidence, and the combination of post-crisis regulatory reforms and ever-increasing partisanship in the US Congress make it a very big theme of late. Intuitively it makes sense that uncertainty would affect business decisions, but can that be separated from the effect of actual economic activity itself?
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***** Please jump head first into a swimming pool covered with green slime. You don’t know how deep the water is. You are uncertain. You don’t do it.

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On His Holiness’s public service
The Economist
RENÉ BRÜLHART made his name as head of Liechtenstein’s financial-intelligence unit. Thanks to his diligence in rooting out financial crime over the past eight years, the tiny European principality, nestled between Switzerland and Austria, is no longer widely condemned as a haven for dirty money. This success, combined with his good looks, led one magazine to dub the 40-year-old Swiss lawyer the James Bond of the financial world.
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**** And who is Miss Moneypenny?

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Business spells COO a new way: MIA
By Emily Lambert – Crain’s
Until last month, Hyatt Hotels Corp. had two chief operating officers. Rakesh Sarna presided over international operations, and H. Charles Floyd handled things in North America. But in early October, the company reorganized from two divisions to three and gave both operating chiefs different responsibilities
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***JM: Thankfully, I’ve been MIA so long that John has forgotten to get rid of me. I’m kind of like Milton in Office Space. Ok, a lot like Milton.

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6 Wall Street blogs you should be reading
Jon Friedman, MarketWatch
Meet six of the most influential bloggers on the Wall Street scene. They consistently go beyond what the traditional media have always done: report the news. Unlike journalists who remain a step removed from the subjects they report on, these bloggers possess a keen understanding of what market enthusiasts want to read, often thanks to their participation in the market. And their Twitter feeds have made them more influential, allowing readers to stay on top of their every publishable thought.
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MarketsWiki.tv

Gary DeWaal

Gary DeWaal of Newedge on 30 Years of Futures, Retirement and What’s Next
MarketsWiki.tv

Gary DeWaal, group general counsel at Newedge, has been a stalwart of the futures industry for 30 years. He recently announced his “retirement” from Newedge, effective at yearend. DeWaal spoke with JLN Editor-in-Chief Jim Kharouf about how the futures industry has evolved and changed over the past three decades, where it goes from here, and why the word retirement should not really be used in the same sentence as Gary DeWaal.

Watch the video »

MarketsWiki

MarketsWiki Page of the Day
Black Monday
http:// jlne.ws/T5oN2K

People

Christine Marie Nielsen; Guo Shuqing; Byron Baldwin; Shang Fulin; Scot E. Warren; Gary DeWaal; Nicola Tavendale

Companies, Organizations and Groups

China Securities Regulatory Commission; Eurex; Newedge; Depository Trust & Clearing Corporation; Continuum

Miscellaneous

T+3

Statistics

29,817,039 pages viewed, 7,171 articles, 148,965 edits
MarketsWiki Statistics

Lead Stories

NYSE Euronext puts UK data centre under review
Tim Cave – Financial News
NYSE Euronext, the operator of stock exchanges in Paris, Amsterdam, Brussels and Lisbon, is “strategically and financially” reviewing the operation of its two-year-old, multimillion-pound UK data centre, which covers the area of more than six football pitches, Financial News has learnt.
jlne.ws/TCdgEk

Bats to target index providers amid benchmark debate
Michelle Price – Financial News
Bats Chi-X Europe is in discussions with independent index providers to include the platform’s trading data within their calculations. The development would see volumes on alternative trading venues reflected in some of the industry’s main benchmarks for the first time.
jlne.ws/TCdifm

Critics say SEC rule enshrines failed model
Market Watch
A proposal issued by the Securities and Exchange Commission Wednesday requiring banks to hold more capital for their securities derivatives enshrines an approach that some regulatory observers believe has failed.
jlne.ws/TCdifp

Sponsors suffer as tough fundraising market bites
Paul Hodkinson and Kiel Porter – Financial News
Private equity firms are showing signs that they are struggling to raise capital amid one of the toughest markets for a decade.
jlne.ws/TCdifu

Wary Swiss Banks Shun Yanks
ANITA GREIL – WSJ.com
When Scott Schmith finally got his Swiss passport last month, it was time for him to take a drastic step: hand back his American one. Among the reasons was a pending U.S. regulation aimed at tracking down tax cheats that is making life difficult for some Americans abroad. These expatriates say that foreign banks, which have expressed concern about compliance costs and potential penalties for failing to report on their American clients, are turning away their business.
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Kenny, Merkel Say Ireland’s Bank Debt Special Case
EAMON QUINN – WSJ.com
DUBLIN—Irish Prime Enda Kenny said that he and German Chancellor Angela Merkel had spoken together Sunday and agreed that the euro zone would look at Ireland’s plans to lessen the huge debts it had incurred in saving stricken banks as a “special case.”
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Merkel to warn UK on Europe budget veto
Quentin Peel in Berlin and Alex Barker in Brussels – FT.com
Germany is planning to warn Britain that it will seek to cancel next month’s European budget summit if David Cameron, the prime minister, insists that he will veto any deal other than a total freeze on spending.
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MF Global ‘most traded bankruptcy claim’
Tracy Alloway in New York – FT.com
MF Global has edged out Lehman Brothers as the most actively traded bankruptcy claim, the first time since 2008 that the failed investment bank has not held the top spot.
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Regulatory

Esma to investigate cross-sector risks
Tom Osborn – Financial News
The European Securities and Markets Authority, one of Europe’s new supranational regulators formed in the wake of the financial crisis, is to begin publishing reports on trends, risks and vulnerabilities in European securities markets.
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French tax changes loom over securities lending market
Sophie Baker – Financial News
Institutional investors take an interest in any transaction that can generate a fee – an attitude that has made them enthusiastic participants in the securities lending market. The scale of their income from this activity, however, has come under threat after a ruling by the European Court of Justice.
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Plan to ban money fund bailouts
Steve Johnson – FT.com
European regulators are believed to be exploring controversial plans to ban managers of money market funds from bailing out investors if their funds suffer a loss. Such “sponsor support” has proved crucial to the stability of the $4.1tn money market fund industry, which is a vital source of short-term funding for banks, governments and companies.
jlne.ws/TCdivQ

Australia Regulator Plans ‘Simpler, Safer’ Securitization Market
Bloomberg
Australia’s banking regulator is working on securitization reforms that it says will make the nation’s market for such debt simpler, safer and more attractive to global investors.
jlne.ws/TCdgUK

UK’s Financial Services Authority: Andrew Bailey Sets Out Details Of The PRA’s Approach To Regulation
Andrew Bailey, the head of the prudential business unit at the Financial Services Authority (FSA) and executive director at the Bank of England, is hosting an event today with banks, insurers, building societies, credit unions and investment firms to discuss the details of the two Prudential Regulation Authority (PRA) approach documents published last week.
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More Than 1,500 Private Fund Advisers Registered With the SEC Since Passage of the Financial Reform Law
The staff of the Securities and Exchange Commission today reported that 1,504 advisers to hedge funds and other private funds have registered with the agency since the Dodd-Frank Wall Street Reform and Consumer Protection Act mandated such registration.
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“Welcome To The Machine” – Statement Of CFTC Commissioner Bart Chilton
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The EESC President Welcomes The EU’s Progress On Banking Union
jlne.ws/TCdivU

ESMA Publishes Two Lists Of Links To National Websites Relating To The Notification And Disclosure Of Net Short Position
According to Article 9(4) of Regulation (EU) No 236/2012 on short selling and certain aspects of credit default swaps, ESMA has to post on its website the addresses of the central websites operated or supervised by each competent authority where the
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ESMA Publishes A Guide To Investing
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Dion Publishes FATCA Whitepaper – Brings Clarity To Current Global Picture On Foreign Account Tax Compliance Act And Highlights Need For ‘Intelligent Compliance’
Dion Global Solutions (Dion) (BSE: 526927), technology partner to the financial services industry, has announced the publication of a new global whitepaper entitled Intelligent Compliance: Finding a solution to FATCA and all that follows.
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FSA Should And Could Have Intervened In RBS Takeover Of ABN AMRO, Says UK’s Treasury Committee Report
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[AMF France] Financial Regulation Newsletter No 8 – October 2012
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[Japan] FSA publishes Weekly Review No.17
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Exchanges & Trading Facilities

ICE ends 142-year tradition of open outcry trading
Reuters via Yahoo! News
NEW YORK – Louis Barbera will go to work in downtown Manhattan on Monday to trade soft commodities as he has done for almost two decades. But instead of stepping into a circular trading pit to take part in a more than century-old tradition of open-outcry trading, he will place trades for his customers – from textile mills to merchants – entirely electronically.
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Oslo Børs Launches Pre-Market Trade In The OBX
Oslo Børs today launched trading in the OBX Future from 08.30 CET, i.e. half an hour before the market in Oslo opened. The pre-market trade in the OBX Future will give a good indication of how the market will open, in addition to being an instrument for investors who want to hedge their equity positions through derivative investments.
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TOM MTF Statistics Week 42 – 2012
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Bucharest Stock Exchange October Newsletter
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Hedge Funds & Managed Futures

SEC Facebook IPO Probe Said to Find No Wrongdoing So Far
Linda Sandler and Greg Farrell – Bloomberg
The Securities and Exchange Commission, which began probing Facebook Inc.’s (FB) May 17 IPO after its stock price plummeted, hasn’t found evidence that the company withheld material information from investors, a person familiar with the matter said.
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Archer Daniels bids $2.8 bln for Graincorp
Reuters via Yahoo! Finance
Archer Daniels Midland has bid A$2.68 billion ($2.77 billion) for Australian rival Graincorp, a 33 percent premium to the last traded share price, as the U.S agriculture giant seeks to push ahead in the global race for grains trading power.
jlne.ws/TCdiMl

Mitsubishi seeds first US alternatives fund
Harriet Agnew – Financial News
Japan’s giant Mitsubishi Corporation is set to build its first large alternative investment manager in the US with hundreds of millions of dollars targeting shipping, aircraft, railway equipment leasing and commercial real estate through MC Asset Management.
jlne.ws/TCdiMn

BlackRock brings in new broom for Europe
Sarah Krouse – Financial News
Leland Clemons’ childhood ambitions to be an architect may not have resulted in skyscrapers, but when it comes to developing and delivering growth in the exchange-traded fund market, he’s aiming high.
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Ruffer delivers more of the profits magic
Giles Turner – Financial News
Jonathan Ruffer, chief executive of the asset management company that bears his name, saw profits rise 40% in the year to March – his last in operational charge of the firm. In April, after 18 years running the firm, Ruffer, 61, already chairman, handed the reins over to Henry Maxey, Ruffer’s chief investment officer.
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Argentina Is Evacuating A Navy Ship Seized In Ghana By A Hedge Fund
Business Insider
Argentina announced the immediate evacuation Saturday of about 300 crew members from the ARA Libertad, a navy training ship seized in Africa nearly three weeks ago as collateral for unpaid bonds dating from the South American nation’s economic crisis a decade ago.
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Lessons In Fiat Reality: “Why I Learned To Trade Less And Love The Farm”
Zero Hedge
Stephen Diggle is one of the least well known and yet most successful hedge fund managers over the past decade – having made around two-and-a-half billion dollars during the financial crisis – but in the last few years, he came to a dramatic perspective.
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Weschler Rise From Grace Leads to Role Advising Buffett
Bloomberg
Ted Weschler’s first job after college was at chemical maker W.R. Grace & Co. In 2007, six years after the company filed for bankruptcy, his hedge fund held 15 percent of the shares. That’s when he called Joe Rice.
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Swiss to vote on taking away some tax breaks for wealthy foreigners
chicagotribune.com
A tax system that has attracted wealthy foreigners like Phil Collins and Michael Schumacher to live in Switzerland will be put to a vote to see if the people want to scrap it.
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The 40 Highest-Earning Hedge Fund Managers
Forbes
Ray Dalio, the new king of hedge funds, tops the list of traders and investment titans who made the most in 2011.
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Princeton endowment return drops, in line with other Ivies
Daily Princetonian
The University’s endowment returned 3.1 percent for the fiscal year that ended on June 30, a significant decrease from the returns during the previous years but comparable to returns posted this year by other Ivies. The University endowment returned 21.9 percent and 14.7 percent in fiscal year 2011 and fiscal year 2010, respectively.
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Al Lewis: D.C. revolving door didn’t protect hedge fund
Market Watch
A hedge fund put a former SEC commissioner on its board, but that didn’t protect it from getting sued in a fraud case, Al Lewis reports.
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JIM ROGERS: Only 2 Things Can Save America
Business Insider
Legendary investor Jim Rogers is bearish on the U.S. economy. In the past, he’s said he expects a few ‘lost decades.’ And he dismissed talks of a housing recovery and a manufacturing renaissance.
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CFTC.Gov Commitments Of Traders Reports Update
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Banks & Brokers

Credit Suisse, UBS could cut a total 7,000 jobs: paper
Reuters via Yahoo! News
ZURICH – UBS is to cut 3,000-5,000 jobs as part of cost-saving measures to offset falling profit, while rival Swiss bank Credit Suisse may announce 1,000-2,000 cuts, Der Sonntag newspaper reported.
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Citigroup Agreed to Carve Out Hedge Funds Before Pandit’s Exit
Donal Griffin and Bradley Keoun – Bloomberg
Citigroup Inc. (C) agreed to move a stable of internal hedge funds to an entity controlled by bank managers in a deal reached before the firm’s top two executives, Vikram Pandit and John Havens, left this week.
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Goldman loses bid to end lawsuit by hedge fund over CDO
Reuters via Yahoo! News
NEW YORK – A judge refused to dismiss a $1.07 billion lawsuit against Goldman Sachs Group that accuses it of selling risky debt that it intended to lose value to an Australian hedge fund, causing the fund to become insolvent. New York state Supreme Court Justice Shirley Kornreich denied Goldman Sachs’ bid to toss claims …
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Parsons Sipping Red Wine Calls Pandit Exit ‘Appropriate’
Bloomberg
Former Citigroup Inc. Chairman Richard Parsons , who in 2011 awarded Chief Executive Officer Vikram Pandit a retention package valued at about $40 million, said the CEO’s departure last week was “appropriate.”
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JPMorgan Readies Clients for Negative Euro Money Yields
Bloomberg
JPMorgan Chase & Co. , squeezed along with other money-market fund providers by low interest rates , has become the first to prepare investors for negative yields from funds that maintain a constant net-asset value.
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UBS banker Guy Phillips to take on wealth management role
The Wall Street Journal
A senior UBS banker is shifting focus to wealth management, as the bank itself makes the same move on a broad scale.
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RBS, U.K. Wrestle Over Fate of Citizens
MAX COLCHESTER and DAVID ENRICH – WSJ.com
Royal Bank of Scotland Group PLC is facing pressure from the British government to sell a valuable operation in the U.S. that has nearly 1,500 branches in 13 states.
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RBS to Spend GBP80 Million to Upgrade Computer Systems – Report
Dow Jones
Royal Bank of Scotland Group PLC is to spend 80 million pounds to upgrade its computer systems in the wake of June’s shutdown, the Sunday Telegraph reported, citing unnamed sources.
jlne.ws/TCdjjr

Lloyds eyes shake-up of banker bonuses
Patrick Jenkins, Banking Editor – FT.com
Lloyds Banking Group is examining whether to ditch the concept of annual bonuses for senior staff and extend the timeframe of longer-term incentives to up to 10 years, according to people briefed on a project to overhaul remuneration.
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Our Communication to the People of Goldman Sachs Regarding the Book by Former Employee Greg Smith
Press Release
Following is the memo circulated on October 19, 2012 to the people of Goldman Sachs:
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Goldman Executives Cash In Decade-Old Options for $14.6 Million
Bloomberg
A half-dozen top Goldman Sachs Group Inc. officials, including Chief Executive Officer Lloyd C. Blankfein and President Gary D. Cohn, reaped $14.6 million by exercising 10-year-old stock options due to expire next month.
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Clearing & Settlement

Swaps Rule Sends Wall Street Into Clearing Limbo: Credit Markets
Bloomberg
The securities industry misinterpreted rules it assumed allowed as many as nine months to start moving swaps into clearinghouses that are meant to limit risks to the financial system.
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Indexes & Products

ETFs and pensions: a match not made in heaven?
Christine Senior – Financial News
In the television series Sex and the City, based on the lives of four women in New York City, one of the characters comes to the liberating conclusion that a prospective boyfriend didn’t call her after the first date because he “simply was not that into her”. Has the time come for exchange-traded fund providers, long-time wooers of defined contribution pension schemes, to realise that DC plans are just not that interested in them? Or is there still life in the relationship?
jlne.ws/TCdhs2

WisdomTree To Shut 3 ETFs With Low Assets
IndexUniverse.com via Yahoo! Finance
WisdomTree Investments, the ETF firm known for its quasi-active index funds that use selection screens targeting dividends and earnings, is closing three ETFs—one a U.S. equities fund and the other two currency funds focused on the South African rand and the Japanese yen.
jlne.ws/TCdjjy

New Ossiam equity index ETF launched on Xetra
jlne.ws/TCdjjz

Vienna Stock Exchange Introduces New Total Return Indices
jlne.ws/TCdjjB

Deutsche Boerse: New Daily Record In MDAX On 18 October 2012 – Index Reaches All Time High Of 11556.11 Points
jlne.ws/TCdjjC

New Dow Jones Credit Suisse Hedge Fund Index Commentary Offers Insight into September Hedge Fund Performance
jlne.ws/TCdjjD

Technology

Moscow Exchange MICEX-RTS Deploys Its First Connectivity Point In Equinix’s London LD4 Data Center
Russia’s largest financial exchange, the Moscow Exchange MICEX-RTS deploys its first connectivity point in Equinix’s London LD4 Data Center.
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Enforcement

A Secretary to a Salomon Is Accused of Embezzling
New York Times
The secretary for William R. Salomon, the former head of Salomon Brothers, has been accused of stealing nearly $2 million from her 98-year-old boss.
jlne.ws/TCdjzV

UK’s Financial Services Authority Fines Bank Of Scotland L4.2 Million For Failing To Keep Accurate Mortgage Records
jlne.ws/TCdjzW

City Index Australia pays infringement notice penalties
jlne.ws/TCdhIu

Environmental & Energy

UN ERU CO2 Credits Have Busiest Day Ever After EU Proposes Ban
Bloomberg
Trading volume in United Nation Emission Reduction Units rose to a record on London’s ICE Futures Europe exchange after the European Union proposed a ban on the use of the offsets from April.
jlne.ws/UldpBC

After the Boom in Natural Gas
The New York Times
THE crew of workers fought off the blistering Louisiana sun, jerking their wrenches to tighten the fat hoses that would connect their cement trucks to the Chesapeake Energy drill rig — one of the last two rigs the company is still using to drill for natural gas here in the Haynesville Shale.
jlne.ws/QKPQfE

Poland to Boost Renewable Power Use Targets as Output Beats Plan
Bloomberg
Poland will from next year increase its short-term targets for renewable energy use as output surpasses plans, damping the price of green certificates.
jlne.ws/XEe006

Asia-Pacific

China’s coffee industry is starting to stir
Patti Waldmeir in Shanghai – FT.com
Coffee in China used to be tarred with the same brush as capitalism. But as capitalism has caught on in China, so has coffee: the mainland market for retail packaged coffee has grown at a compound rate of 18 per cent a year since 2007, and could rise another 75 per cent to Rmb16bn ($2.5bn) by 2017, according to research firm Mintel.
jlne.ws/TCdjzZ

Thailand to push ahead with capital flow relaxation
Reuters via Yahoo! Finance
Thailand is pushing ahead with measures to liberalise capital movements, such as allowing Thais to invest more easily in foreign securities, in order to nurture regional integration and foster balanced capital flows, the central bank said on Monday.
jlne.ws/TCdhIz

China’s rebalancing raises capital dilemma
Manoj Pradhan – FT.com
As mysterious as China’s political transition is turning out to be, the cloud of uncertainty over its economic path is more intriguing still. The need for rebalancing is now universally known. China’s growth needs to be driven by consumption. Indeed, emerging market growth in general needs to come from more sustainable (and hence domestic) sources. Less well known are the three dilemmas this rebalancing will raise.
jlne.ws/TCdjA3

SGX Bull Charge charity run contributions cross $1 million mark with ThaiBev donating $150,000
Singapore Exchange (SGX) announced today that the Bull Charge 2012 charity run contributions have crossed the $1 million mark with Thai Beverage Public Company Limited (ThaiBev) donating S$150,000.
jlne.ws/RQIjwy

Press Conference By Ikko Nakatsuka, Japan’s Minister For Financial Services
jlne.ws/TCdjA5

Notice Of Listing Of HKEx Convertible Bonds (Stock Code: 4575)
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Frontier Markets

Abreast of the Market: Emerging Markets Gain Fans on Wall Street
JONATHAN CHENG – WSJ.com
Northern Trust Corp.’s chief investment strategist, Jim McDonald, made a big call earlier this month. It was time to lighten up on the U.S. and put more money into emerging-market stocks, he concluded.
jlne.ws/TCdjAb

Akbank Rides the Turkish Tiger
EMRE PEKER AND JOE PARKINSON – WSJ.com
Suzan Sabanci Dincer, chairman of Turkey’s Akbank T.A.S., has banking in her blood. She also has an unyielding faith in the potential of Turkey’s economy. Perhaps that comes naturally to Ms. Sabanci Dincer, a scion of one of Turkey’s most famous business dynasties, who says Akbank, the country’s second-largest lender by market value, sees its fate intertwined with that of its homeland.
jlne.ws/TCdjQp

Egypt studying joint bourse trading with Turkey
Reuters via Yahoo! News
CAIRO – Egypt’s bourse is studying an alliance with the Istanbul Stock Exchange that would allow investors in the two countries to trade on each other’s markets.
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Phillip Futures DMCC Joins DGCX As Broker Clearing Member
The Dubai Gold and Commodities Exchange (DGCX) has announced that Phillip Futures DMCC, a leading provider of online trading services, has been approved as a Broker Clearing Member of DGCX.
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BSE Ltd. Constitutes Advisory Committee To The Board
The BSE Ltd has formed a 16 member Advisory Committee headed by Chairman of BSE Ltd., Mr. S Ramadorai to advise the Governing Board on non-regulatory and operational matters including product design, technology, charges and levies.
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Dubai Financial Market Inks An Agreement With Dubai eGovernment In Preparation For The Introduction Of Electronic Payment
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MCX Weekly Market Report October 12, 2012 – October 18, 2012
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Malawi Stock Exchange Weekly Trading Report
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The Saudi Stock Exchange – Tadawul – Market Closure During Eid Al-Adha Holiday
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Egyptian Exchange Eid Al El Adha Vacation – Market Holiday
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Dubai Financial Market Market Holiday – Eid Al Adha
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Closure Of Bursa Malaysia Berhad – Market Holidays
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Miscellaneous

Law Firms Face Fresh Backlash Over Fees
JENNIFER SMITH – WSJ.com
After the recession sparked a widespread revolt over generous law-firm fees, clients are increasingly raising objections to big bills for legal miscellany. Invoices for food, photocopies and legal research—items that once were rubber-stamped by companies—are drawing howls. As for charges for first-class flights? Clients are simply saying, “No more.”
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Dumb company names in a sound-bite world
CBS News
We’re all overloaded with news and information — the days of complex, confusing names nobody can remember or spell are over
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Goldman Sachs Op-Ed Wasn’t a ‘Betrayal,’ Smith Tells 60 Minutes
Christine Harper – Bloomberg
Greg Smith, who resigned from Goldman Sachs Group Inc. (GS) with a March 14 opinion piece criticizing the firm’s treatment of clients, told “60 Minutes” that he doesn’t think he betrayed the bank.
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