John Lothian Newsletter: Brokers Fretted Over NYSE Backup Plan For Hurricane; Blizzard of regulation has its effect; First Libor damages trial set to proceed

Oct 30, 2012

Open-With-Hurricane plans from the NYSE and other exchanges are made and then pulled back as financial closures extend into Tuesday; much analysis ensues. The Financial Times investigates the far-reaching consequences of a new and heavy regulatory burden at financial companies. In the UK, a LIBOR liability trial is cleared and ready for takeoff. In First Read today, be sure to check out the new MarketsWiki.tv interview with Justin Bouchard about the better side of algorithmic trading.

First Read

Equity Trading in U.S. Shut for Second Day, Joining Bonds
Rita Nazareth, Nina Mehta and Whitney Kisling – Bloomberg
For the first time in more than a century, weather has stopped U.S. equity trading for two straight days as Hurricane Sandy swept across New York City. NYSE Euronext (NYX) will this morning test a back-up plan in case its headquarters or trading floor are unable to open tomorrow.
jlne.ws/TRyApD

++++

Why the NYSE flip-flopped on electronic trading
Stephen Gandel – CNN Money
The market was closed on Monday for all trading, and it will stay closed on Tuesday. It’s not exactly clear why. We won’t know now, but trading experts seem convinced that the market could have functioned normally with the actual exchange closed on Monday.
jlne.ws/TRyCxD

**** People matter even with electronic markets.

++++

Justin Bouchard

Justin Bouchard of AlgoFast on the Potential for Event Driven Trading
MarketsWiki.tv

In today’s markets, new technology is getting more granular. Justin Bouchard, CEO of AlgoFast, has built his firm on event trading with new technology that allows traders to take positions on events such as Federal Reserve and central bank statements, employment reports, earnings and GDP numbers. He spoke with John Lothian News editor-in-chief Jim Kharouf about event trading, how AlgoFast works and why algorithms are not a bad thing.

Watch the video »

++++

CME won’t cut longer grain-trading hours, Duffy says
Reuters
CME Group Inc. will not trim electronic grain-trading hours, which it expanded in May to fend off a challenge from rival IntercontinentalExchange, a top executive told Reuters. “Just because the IntercontinentalExchange has not garnered a lot of market share … there is a competitive issue for us,” CME Executive Chairman Terrence Duffy said Monday. “We need to remain competitive, and we will keep our markets open as long as others are open at that time.”
jlne.ws/TRyAFS

**** The battle continues.

++++

Can Credit Suisse Own an Exchange? Maybe Not
Tom Steinert-Threlkeld – Traders Magazine
Credit Suisse is not likely to be able to register its Light Pool trading system as a national exchange and retain sole or even majority ownership in it. Larry Tabb, namesake founder of the Tabb Group consultancy, said Friday he is “not sure you can do that from a regulatory perspective as a single entity. They may have to sell it off, spin it out.’’
jlne.ws/TRyCxH

**** Own a piece. Share with your friends.

++++

Futures: Prominent failures leave self-oversight in spotlight
Gregory Meyer – FT.com
After an annus horribilis, the futures industry is trying to make scandal a thing of the past. On October 31 2011, broker MF Global failed and left a $1.6bn hole in customer accounts. Then in July a smaller broker, Peregrine Financial Group, went bust after its founder acknowledged a massive fraud. Clients of both are still fighting to get their money back.
jlne.ws/TRyCxJ

**** So many spotlights.

++++

The US: Increase in competition raises the stakes
Arash Massoudi – FT.com
The leading US stock exchanges have had a difficult year, and there are few signs to suggest business is going to recover.
jlne.ws/TRyCxL

**** This story is not bearish enough to put in a bottom.

++++

OneChicago Achieves Milestone in No Risk Dividend Product
OneChicago, LLC (OCX), the only U.S. equity finance exchange, today celebrates the second-year anniversary of the OCX.NoDivRisk product that eliminates the dividend risk, revealing its true nature – an exchange traded equity finance product.
jlne.ws/TRyAG2

**** OneChicago, where the CEO is on the ball. Literally.

++++

‘Hello, kitty’ – in a jungle of high-frequency tigers
Letter to the editor – FT.com
Sir, The Foresight report’s conclusions about high-frequency trading (“UK report calls for measures to limit risks of high-speed trading”, October 23) remind me of what my mother once said about the neighbours: they mean well and they set the garden on fire only when they’re drunk.
jlne.ws/TRyAG6

++++

OTC derivatives: Asia watches and learns from European and US rulemakers
Jeremy Grant – FT.com
Asia may only make up about eight per cent of the $648tn in notional value traded in the over-the-counter (OTC) derivatives market, but that does not mean the region is standing idly by as waves of regulations wash over the industry.
jlne.ws/TRyAG7

++++

The ‘monster’ of VaR has not gone away
Vince Heaney – FT.com
Common sense and experience are more powerful tools than a slavish adherence to mathematical models. This is the conclusion I reached in 2009 when writing a critique of the efficient markets hypothesis and the tools it has spawned, including risk measurement metrics such as Value at Risk. Three years on the debate is still very much alive.
jlne.ws/TRyAWo

**** Something is better than nothing?

++++

Corzine Searches for What’s Next
AARON LUCCHETTI and JULIE STEINBERG – WSJ.com
A year ago Wednesday, Jon S. Corzine left the elevator and headed out the door after a marathon weekend effort failed to save MF Global Holdings Ltd. The brokerage firm had just filed for bankruptcy, ending Mr. Corzine’s dream of making it into a major Wall Street player.
jlne.ws/TRyAWr

***** I recommend golf, quiet evenings with a good book and staying away from Wall Street.

++++

Why Does the SEC Protect Banks’ Dirty Secrets?
William D. Cohan – Bloomberg
Remember Richard Bowen? He is the former senior executive at Citigroup Inc. (C) who in November 2007 issued a clarion call to his colleagues and Citi’s board that a major credit-quality problem loomed for the bank.
jlne.ws/TRyCO7

***** Blinded by the light?

++++

Your Employee Is an Online Celebrity. Now What Do You Do?
ALEXANDRA SAMUEL – WSJ.com
Meet your newest management headache: the co-branded employee. A growing number of professionals are using social media to build a personal, public identity—a brand of their own—based on their work. Think of an accountant who writes a widely read blog about auditing, or a sales associate who has attracted a big following online by tweeting out his store’s latest deals.
jlne.ws/TRyCOc

**** I don’t see this happening at all.

++++

MGEX Announces Second In Series Of AJC Webinars
MGEX, a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO), will present the second in a series of three free webinars on November 1,2012 at 2:30 p.m. central time. This webinar will explore the details of futures and options Apple Juice Concentrate (AJC) trading.
jlne.ws/TRyCOg

***** Make sure you try the juice. It is good for you.

++++

WILD Hosts Symposium: Industry in Transition
3:30 pm, Thursday, December 6, 2012
Federal Reserve Bank of Chicago, 230 South La Salle Street, Chicago IL
Women in Listed Derivatives (WILD), a group that promotes relationship-building and education for women in listed and OTC derivatives, will hold a half-day symposium in December to discuss how the regulatory landscape and recent events in the derivatives industry are impacting market participants and operators. “As the industry comes to terms with the changes brought on by Dodd-Frank, MF Global and other critical events; we hope to gain new insights by focusing on the roles women play in the industry and how we can take advantage of opportunities born in this time of transition,” said WILD President Jessica Titlebaum.

Keynote speakers will include:
* Terry Savage, Author and Chicago Sun-Times Columnist
* Carol Burke, Senior Legal Advisor/Financial Markets/Federal Reserve Bank of Chicago

RSVP: marketing@womeninlistedderivatives.org

++++

MarketsWiki

People

Justin Bouchard; Michael Aitken; Edward Boyle; Peter Wind

Companies, Organizations and Groups

SMARTS Group Holdings; Dubai Financial Services Authority

Products

AlgoFast

Miscellaneous

Hurricane Sandy

Statistics

30,142,483 pages viewed, 7,188 articles, 149,256 edits
MarketsWiki Statistics

Lead Stories

Brokers Fretted Over NYSE Backup Plan For Hurricane -Sources
Jacob Bunge and Jenny Strasburg – WSJ.com
Exchanges abandoned plans to open for electronic trading Monday after broad resistance from banks and brokers who worried about the safety of staff and potential problems with the New York Stock Exchange’s method of shifting its main stock market to an electronic backup, according to persons involved in the discussions. Short notice of NYSE Euronext’s (NYX) plan to run the Big Board on the company’s all-electronic Arca exchange posed potential difficulties that brokers were not prepared to address with a little over 12 hours to go before trading was to begin, according to these people.
jlne.ws/TRyAWC

Blizzard of regulation has its effect
Philip Stafford – FT.com
For those in trading, exchanges, clearing and settlement gathered this week at two conferences on either side of the world, this has been a sobering year. Executives meeting at the Futures Industry Association’s “Expo” in Chicago and Swift’s Sibos post-trade services event in Osaka have struggled for three years with persistent declines in volumes, as the low interest rates and worries about the global economy discourage investors from trading.
jlne.ws/TRyCOj

First Libor damages trial set to proceed
Daniel Schäfer in London – FT.com
The stage has been set for the first British damages claim trial over the manipulation of Libor after a London judge allowed a case brought by a care home operator against Barclays to go ahead.
jlne.ws/TRyD4z

Behind Decision to Close Markets
JENNY STRASBURG, JONATHAN CHENG and JACOB BUNGE – WSJ.com
Superstorm Sandy forced regulators and exchange operators to keep U.S. stock markets closed Tuesday, in the first weather-related shutdown to last more than one day since the Blizzard of 1888. The decision to close the New York Stock Exchange and other U.S. equity markets for a second straight day—reached by midafternoon Monday—renewed questions about the industry’s disaster preparedness.
jlne.ws/TRyD4D

NYSE to Test New Contingency Plan Tuesday
JACOB BUNGE – Dow Jones
U.S. stock exchange operators are preparing to test a new contingency plan Tuesday morning to ensure domestic equity trading restarts this week. Under the backup plan outlined late Monday, all trading in NYSE-listed securities would execute on the Arca exchange, according to the notice from NYSE Euronext. Above, the floor of the New York Stock Exchange was closed on Monday. NYSE Euronext officials also dismissed reports that its headquarters in lower Manhattan had been affected by flooding, though they said they have a backup plan should the building and its storied trading floor suffer “irreparable damage.”
jlne.ws/TRyD4J

Global regulators probe how banks tot up risks
By Huw Jones – Reuters
Global banking regulators are investigating why banks use such a wide variety of ways to assess risk amid fears the current method for calculating capital safety cushions is not safe and is being gamed.
jlne.ws/TRyBcX

Securities: Collateral drive puts the focus on settlements
Philip Stafford – FT.com
The regulatory push to safeguard the world’s financial markets is being felt at the end of the trading cycle: securities settlement. As a result, the world of central securities depositories (CSDs) is coming under pressure from banks keen to break into this closely guarded market.
jlne.ws/TRyBd1

Swaps market: Fight looms over which model is best
Michael Mackenzie – FT.com
A new era is close at hand for the US derivatives industry and the battle lines are being drawn up over two very different approaches to how the vast swaps market will trade in the future.
jlne.ws/TRyBd5

FN from Sibos: ECB bond-buying scheme threatens bank’s own existence
Michelle Price in Osaka – Financial News
The European Central Bank’s bond-buying scheme to alleviate Europe’s ongoing fiscal crisis is both “unprecedented” and “precarious” and could result in the bank precipitating the type of crisis – an exit from the eurozone – that it is attempting to avert, at top economist has warned.
jlne.ws/TRyBd9

Greece Moves Quickly to Put Editor on Trial
New York Times
A case surrounding the publication of a list of Greeks with Swiss bank accounts has raised questions about press freedom and Greece’s willingness to crack down on tax evasion.
jlne.ws/TRyDl2

Nordea chief takes a swipe at Liikanen
Richard Milne in Oslo and Patrick Jenkins in London – FT.com
Bank regulators need to avoid making “a religion around ringfencing”, according to one of Europe’s most senior bankers, as he took a swipe at the EU-commissioned Liikanen review.
jlne.ws/TRyE8A

Regulatory

Pieces still missing from regulatory puzzle
Christine Senior – Financial News
More than a quarter of exchange-traded fund market participants want to see increased regulation of their industry, according to the findings of Financial News’ ETF Snapshot Survey 2012.
jlne.ws/TRyDl5

Whistleblowing tip-offs to FSA treble
Brooke Masters – FT.com
Calls to the City regulator’s whistleblowing helpline have more than trebled since the start of the financial crisis, with new figures showing that 3,713 tip-offs were received by the Financial Services Authority in the year to May.
jlne.ws/TRyE8I

Commodity Futures Trading Commission Confirms Technology Advisory Committee Meeting on October 30, 2012
jlne.ws/TRyE8K

NFA: Hurricane Sandy Update
Due to the severe weather forecast for New York city, NFA’s New York office will be temporarily closed Tuesday, October 30, 2012. The Chicago office is operating as normal. If you have any questions, please contact NFA’s Information Center at 312-781-1410 or 800-621-3570 from 8:00 a.m. – 5:00 p.m. CST.
jlne.ws/c1noA6

FINRA: Industry Communications Related To Hurricane Sandy
jlne.ws/TRyDlj

The SEC Will ‘Closely’ Review NASDAQ’s Plan To Pay Back Investors Who Got Hosed During The Facebook IPO
Business Insider
WASHINGTON – Securities regulators are taking a closer look at Nasdaq OMX’s $62 million plan to compensate brokers who suffered losses from the exchange operator’s botched handling of Facebook’s initial public offering.
jlne.ws/TRyE8Q

IOSCO Reviews Implementation Of Commodity Derivatives Market Principles
The International Organization of Securities Commissions has published today the final report Survey on Implementation of the Principles for the Regulation and Supervision of Commodity Derivatives Markets, which reviews how Market Authorities comply with IOSCO’s recommendations on commodity derivatives markets.
jlne.ws/TRyDBy

FSB welcomes Report Of The Enhanced Disclosure Task Force
The Financial Stability Board (FSB) welcomes the publication of the Report of the Enhanced Disclosure Task Force (EDTF) and views it as a valuable step to improve the quality of risk disclosures. The EDTF’s principles and recommendations for improved bank risk disclosures and leading disclosure practices are designed to provide timely information useful to investors and other users, which together with current regulatory developments and standard setter recommendations can contribute, over time, to improved market confidence in financial institutions.
jlne.ws/TRyE8S

ESMA Announces A Vacancy For A Team Leader In The Investment Management Area
jlne.ws/TRyE8T

Opening Statement Before CFTC Technology Advisory Committee, Chicago, Illinois, CFTC Commissioner Scott D. O’Malia, Chairman
jlne.ws/TRyEp6

Canadian Securities Regulators Seek Comment On Amendments Relating To Direct Electronic Access
jlne.ws/TRyDBJ

Remarks Before Ontario Securities Commission (OSC), OSC Dialogue 2012 In Toronto, Canada, CFTC Chairman Gary Gensler
jlne.ws/TRyDBO

Report on the Australian OTC Derivatives Market
jlne.ws/TRyDBR

Exchanges & Trading Facilities

Deutsche Börse Q3/2012: Net Revenue Of Roughly Half A Billion Euros In Weak Market Environment
Net Revenue Of E471 Million In Weak Market Environment – Adjusted Earnings Per Share Of E0.87 – Cost Target For 2012 Confirmed – Expenditures For Growth Are To Be Increased Further In 2013 – Share Buyback Program Of Around E100 Million In Q4/2012
jlne.ws/TRyDS6

CME Rate-Futures Trade to Open Tomorrow, Equity Indexes Halted
Matthew Leising – Bloomberg
CME Group Inc., the world’s largest futures market, will re-open floor trading for interest-rate contracts while keeping its equity index futures closed tomorrow as Hurricane Sandy approaches the U.S. East Coast.
jlne.ws/TRyEpj

US Exchange and Market Closings on October 29-30, 2012
The International Swaps and Derivatives Association, Inc. (ISDA) has issued guidance for parties to over-the-counter (OTC) derivative transactions that are affected by the closing of US exchanges and bond markets on Monday, October 29 and Tuesday, October 30 due to Hurricane Sandy.
jlne.ws/TRyEpn

CBOE Holdings Announces Exchange Closures for Tuesday, October 30
jlne.ws/TRyEpo

NYSE Euronext Statement on Closure of U.S. Markets on Tuesday, Oct. 30, 2012
jlne.ws/TRyDSb

International Securities Exchange Closed On Monday, October 29, 2012 Due To Hurricane Sandy – Update
jlne.ws/TRyEFH

BOX Options Exchange Closed Tuesday, October 30, 2012 Due To Hurricane Sandy
jlne.ws/TRyDSg

Concerning October 30, 2012 OSE DJIA Futures Night Session Trading
jlne.ws/TRyEFM

The Ibovespa Futures Contract is now available for trading at the CME Group in Chicago
CME Group launched on October 22 the U.S. Dollar-Denominated Ibovespa Futures contract, a cross-listed product in partnership with BM&FBOVESPA. The contract, which is listed at CME and cleared through CME Clearing, will be traded on the CME Globex electronic trading platform
jlne.ws/TRyDSk

Finasta To Become A Market Maker For Ekspress Grupp
The NASDAQ OMX Group, Inc. announces that as of October 30, 2012 Finasta bank will become a liquidity provider for the shares of Ekspress Grupp listed on NASDAQ OMX Baltic Main List. Ekspress Grupp is the second issuer whose shares are covered by Finasta.
jlne.ws/TRyEFU

NYSE Euronext welcomes Nanobiotix to its European market
jlne.ws/TRyDSm

NZX: Diversity Takes Its Place In Listed Company Reporting
jlne.ws/TRyGNO

Direct Edge Trading Notice #12-47: Direct Edge to Participate in Test Scenario with Other Exchanges on October 30th
In cooperation with other exchanges, Direct Edge will participate in a test scenario whereby NYSE Arca assumes the role as the listing market for Tape A securities.
jlne.ws/TRyGNP

Bahamas International Securities Exchange Re-Opens From Hurricane Sandy
Please be advised that The Bahamas International Securities Exchange is re-opened today, October 29, 2012 for normal operations after the passage of Hurricane Sandy.
jlne.ws/TRyGNS

Another Foreign Company Newly Listed On The WSE
jlne.ws/TRyGNT

Hedge Funds & Managed Futures

Quant hedge funds headed for worst month since August 2007
Reuters via Yahoo! Finance
Computer-driven hedge funds are headed for their worst monthly performance since the start of the credit crunch after making losing bets in dozens of markets including bonds, currencies and commodities.
jlne.ws/TRyGNW

Tetragon Buys Affiliated Hedge Fund Polygon for $99 Million
Bloomberg
Tetragon Financial Group Ltd. bought Polygon Management LP, a hedge-fund firm founded by the same management team, for about $99 million as the publicly traded investor in structured loans expands its business.
jlne.ws/TRyGO2

Credit Suisse Said to Start Asset-Management Venture With Qatar
Bloomberg
Credit Suisse Group AG and a unit of Qatar Investment Authority, the Persian Gulf emirate’s sovereign-wealth fund, plan to start an asset-management joint venture, three people with knowledge of the matter said.
jlne.ws/TRyEWl

Maverick launches best ideas fund
The Wall Street Journal
Maverick Capital has launched a new fund that places concentrated bets on the firm’s best stock trades, reflecting the hedge-fund industry’s push to juice returns that have lagged behind the market and disappointed investors.
jlne.ws/TRyH4h

Reech bids farewell to the Ucits market
William Hutchings – Financial News
European alternatives asset manager Reech AiM has turned its back on the Ucits fund market, six months after saying it was hiring more sales people to cover it, as part of a fundamental restructuring of its business.
jlne.ws/TRyEWq

Evercore Partners and VTB Capital Announce a Strategic Cooperation Agreement
Evercore Partners Inc. and VTB Capital have today announced that the two firms have established a strategic cooperation agreement to work together in developing cross-border transactions between Russia and North America.
jlne.ws/TRyFcG

Cat Bonds Drop Most Since February as Storm Barrels Toward Coast
Bloomberg
Bonds designed to protect insurers from payouts on natural disasters dropped last week by the most in eight months with the Atlantic’s largest-ever tropical storm poised to strike the East Coast with a life-threatening surge.
jlne.ws/TRyH4l

David Simon’s Twin Securities Wins Best Merger Arbitrage Fund at HFMWeek’s 2012 U.S. Hedge Fund Performance Awards
jlne.ws/TRyFcM

Deutsche Boerse Group: Bond Subscription Ends Early
jlne.ws/TRyH4s

U.S. Treasury Under Secretary Brainard To Attend G-20 Meeting Of Finance Ministers In Mexico City, Mexico, November 4-5, 2012
jlne.ws/TRyH4v

Banks & Brokers

DealBook: Behind an Estimated $30 Trillion Drain on Banks, a Lot of Hypotheticals
New York Times
A banking industry group looked into a new derivatives rule and sketched out a situation in which banks were forced to come up with as much as $30 trillion in cash. But a deeper look suggests that many of the worries might be overdone.
jlne.ws/TRyH4w

Bringing up the rear at Morgan Stanley
William Wright – Financial News
For a bank with such a white-shoe history and reputation, Morgan Stanley has demonstrated a masochistic tendency over the past few years to trip up almost every time it looked like it was getting back on its feet.
jlne.ws/TRyH4z

Deutsche Bank Says Profit Rose on Investment Bank Revenue
Bloomberg
Deutsche Bank AG , Europe ’s biggest bank, said third-quarter profit rose three percent after investment banking revenue exceeded targets.
jlne.ws/TRyFtc

UBS’s Third-Quarter 2012 Results
jlne.ws/TRyHkR

StanChart weighed down by $340m fine
Adam Jones – FT.com
Standard Chartered said it hoped to resolve the outstanding regulatory inquiries into its US sanctions compliance by the end of 2012 as it published a quarterly trading update weighed down by August’s $340m fine over its dealings with Iran.
jlne.ws/TRyHkW

TD Ameritrade Delivers 4th Consecutive Year of Double-Digit Net New Client Asset Growth Rate
Business Wire via Yahoo! Finance
TD Ameritrade Holding Corporation has released results for fiscal 2012. Despite a continued difficult economic environment, the Company gathered $41 billion of net new
jlne.ws/TRyFto

[Video] Morgan Stanley COO: How We Run Our Bank in a Crisis
Bloomberg
Jim Rosenthal, COO at Morgan Stanley, talks with Bloomberg’s Erik Schatzker and Stephanie Ruhle about the bank’s preparations for Hurricane Sandy and contingency plans for workers and clients. He speaks on Bloomberg Television’s “Market Makers.”
jlne.ws/TRyFtq

Clearing & Settlement

SunGard Launches IntelliMatch Operational Control for Reconciliations on Tablets and Touch-based Notebooks
SunGard has launched tablet versions of IntelliMatch Operational Control for Windows 8 and Apple IOS6 to help business and IT users access reconciliations online virtually anytime, anywhere. The new versions, one of the first in the reconciliations industry, bring real-time, 24×7 access to SunGard’s IntelliMatch Operational Control solution suite.
jlne.ws/TRyHl0

SunGard and CEB TowerGroup Reveal Risk Management is Driving Innovation in Reconciliations
An annual reconciliations survey* conducted by TowerGroup, a Corporate Executive Board company, on behalf of SunGard, has revealed that risk management and regulatory concerns are driving innovation in reconciliations as more operational executives recognize its critical role in addressing regulation and internal compliance demands. This is a key conclusion from the research, which explores the changing face of reconciliations in the rapidly evolving global business environment.
jlne.ws/TRyFJK

Omgeo Announces 25% Increase in Omgeo CTM Clients to More Than 1,175 Investment Managers and Broker/Dealers
Omgeo, the global standard for post-trade efficiency, today announced a 25% increase in the number of investment managers and broker/dealers using Omgeo Central Trade ManagerSM (Omgeo CTM) since the beginning of 2012. Omgeo CTM is the strategic platform for the central matching of cross-border and non-U.S. domestic equity, fixed income, contract for difference and exchange traded derivative (ETD) transactions.
jlne.ws/TRyFJL

ECC Welcomes Prague-Based PXE As A New Partner Exchange
The European Commodity Clearing (ECC) has won the Praguebased POWER EXCHANGE CENTRAL EUROPE (PXE) as a new partner exchange. According to the co-operation agreement between the two companies, ECC is scheduled to begin its activities as the central counterparty for PXE from the end of the first quarter of 2013.
jlne.ws/TRyHBu

DTCC Remains Open For Operation On October 29 Clearing, Settlement And Operational Processes Will Operate As Usual
jlne.ws/TRyFJR

CME Clearing Hurricane Sandy Update – Monday, October 29th, 2012
jlne.ws/TRyFJU

Japan Securities Clearing Corporation Launches New IRS Clearing Service Using The Calypso System – Partnership Extended From Clearing CDS To IRS
Calypso Technology Inc., the global capital markets platform provider, announced today that Japan Securities Clearing Corporation (JSCC), a member of the Tokyo Stock Exchange Group, has gone live with the Calypso system for its interest rate swaps (IRS) central counterparty (CCP) clearing service.
jlne.ws/TRyFJY

Clearing rules need integrated approach to portability
Dan Barnes – Financial News
Market participants fear there is some way to go before European rules on the safe separation and movement of investment firms’ assets from a bankrupt broker can be met.
jlne.ws/S6IKUr

Indexes & Products

ProShares’ Joanne Hill Discusses Hedge Fund ETFs
ETF Trends via Yahoo! Finance
ETF Trends Editor Tom Lydon speaks with ProShares’ Head of Investment Strategy, Joanne Hill, about alternative investments and why she thinks a hedge fund ETF is attractive in this market.
jlne.ws/TRyHRR

Technology

SunGard Third Quarter Earnings Release Postponed to October 31, 2012 Due to Expected Severe Weather Conditions
SunGard, one of the world’s leading software and technology services companies, today postponed the release of its financial results for the third quarter ended September 30, 2012 to the afternoon of Wednesday, October 31, 2012, followed by a conference call at 4:15 p.m. (Eastern Time) to discuss the financial results.
jlne.ws/TRyHRS

SunGard’s AvantGard Treasury and Payments Solutions and Services Earn SWIFTReady Labels
Demonstrating SunGard’s commitment to enabling efficient corporate to bank connectivity via the international SWIFT network, SunGard’s AvantGard solutions and services have earned a total of six SWIFTReady labels in 2012.
jlne.ws/TRyG0d

Xignite Powers MoneyChakra iPad App for Tracking Investments by Top Hedge Fund Managers
Business Wire via Yahoo! Finance
MoneyChakra today announced the availability of its iPad app that tracks top hedge fund managers’ actions using the Xignite Market Data Cloud. MoneyChakra uses innovative data services from Xignite to reveal the portfolios and buy/sell actions for top hedge fund managers, including Warren Buffett, Carl Icahn, George Soros, Bill Ackman and other leading money managers.
jlne.ws/TRyHRY

C24 Technologies Announces New SWIFT Financial Messaging Validation Services
Business Wire via Yahoo! Finance
C24 Technologies, a leader in financial services messaging and integration solutions, today announced free software services for testing SWIFT MT and SWIFTNet Derivatives messages.
jlne.ws/TRyG0e

Enforcement

UBS bosses influenced my trading, says accused trader
Reuters via Yahoo! News
LONDON – Ex-trader Kweku Adoboli told a court on Monday his bosses at UBS , including senior executive Carsten Kengeter, had been pushing him to take more risks when he took positions that eventually cost the Swiss bank $2.3 billion.
jlne.ws/TRyG0i

Stop Order Proceedings Instituted Against Caribbean Pacific Marketing
The Securities and Exchange Commission today announced that it has instituted proceedings to determine whether to issue an order that would prevent sales of shares in Caribbean Pacific Marketing, Inc., based on allegations that the company’s disclosure is misleading.
jlne.ws/TRyG0j

Environmental & Energy

Global carbon trading ‘near’
China Daily
China’s efforts to combat climate change win praise from leading expert. A global platform for carbon trading may be in place this decade, an official at one of the world’s major environmental think tanks said.
jlne.ws/UbYiW9

**RKB — So says World Resource Institute President Andrew Steer.

Cap-and-Trade Failure Aided U.S. to Cut Carbon Emissions
Bloomberg
The failure by Congress to pass cap- and-trade legislation in 2010 had one unanticipated impact: It helped to cut greenhouse gas emissions.
jlne.ws/SXvRfC

**RKB — It’s a good thing, say these researchers. And, they add, so is a cap-and-trade or carbon tax plan in support of long-term cuts in emissions.

Rule Tweaks May Dissuade California Carbon Bidders, RBC Says
Bloomberg
Tweaks to the rules governing the California carbon market may dissuade bidders in the state’s first auction next month, said a trader at RBC Capital Markets.
jlne.ws/TQR5ud

Asia-Pacific

FN from Sibos: Social inequities pose challenge to Asian dominance
Michelle Price in Osaka – Financial News
Increasing socio-economic disparity and political instability pose a challenge to the Asia-Pacific growth story, regional experts have warned. Their comments come amid violent protests in China that have underlined growing tensions between economic growth and social harmony.
jlne.ws/TRyG0m

Thai Futures Exchange’s Sector Futures Welcomed On First Trading Day
The Thailand Futures Exchange PCL (TFEX), under The Stock Exchange of Thailand (SET) group, revealed that its Sector Index Futures, tracking the movement of five sector indices on SET, were well-received from investors with trading volume of 101 contracts on its first trading day.
jlne.ws/TRyI8m

BlackRock Confident in China Demand for Commodities
Dow Jones
China’s appetite for commodities continues to grow and, with the steady recovery in the U.S. economy, should support prices for raw materials such as iron ore and copper, portfolio managers for BlackRock Inc.’s natural resources equity team said Tuesday.
jlne.ws/TRyI8p

Thai Bourse Announces 55 Companies, 6 CEOs As Nominees For SET Awards 2012
jlne.ws/TRyG0s

Tokyo Stock Exchange Has Published The Index Value Of TSE Home Price Index For August
jlne.ws/TRyI8s

Frontier Markets

UBS’s India Investment Banking Head Leaves
Wall Street Journal Blogs
Swiss bank UBS AG said its head of investment banking for India, Ashok Mittal, has left the bank.
jlne.ws/TRyGgJ

Key IMF loan talks begin in Cairo, reducing budget deficit is focus
Reuters via Yahoo! News
The goal, according to IMF director for the Middle East and North Africa Masood Ahmed, is to phase out wasteful subsidies, especially in the energy sector, and to use the resources for more spending on health, education and infrastructure development as the country emerges from decades of authoritarian rule.
jlne.ws/TRyGgL

S.Africa’s Nedbank lifted by higher-risk lending
Reuters via Yahoo! News
JOHANNESBURG – Nedbank Group announced on Monday that it is on track for double-digit earnings growth this year, the latest South African bank to benefit from a rise in higher-risk lending.
jlne.ws/TRyI8z

Bursa Malaysia Reprimands, Fines And Orders To Strike Off/Suspend Two Dealers’ Representatives For Manipulative Dealing Activities
jlne.ws/TRyI8A

Dubai Financial Market Announces Its Board Of Directors Meeting To Be Held On 3rd November 2012
jlne.ws/TRyI8D

Miscellaneous

Bank of England director: Occupy was right
UPI
The protesters who occupied Wall Street and parts of London and other cities were morally and intellectually right, a senior Bank of England official said.
jlne.ws/TRyGgW

John Lothian Newsletter

We visit more than 100 websites daily for financial news (Would YOU do that?)

“John Lothian and Company… our industry intelligence.”

Rick Lane

CEO, Trading Technologies

Past JLN Newsletters

CFTC Votes to Pass Final Rule on Position Limits

CFTC Votes to Pass Final Rule on Position Limits

First Read ++++ $6,491/$300,000 (2.2%) Thank you today's backers: Rama Pillai and Blake Brockway ++++ Joe Sullivan's Influence and Success, Part 2 John Lothian - JLN Wayne Luthringshausen is another person whose career was influenced by the arc of Joseph Sullivan's...

Water futures meet cool reception

Water futures meet cool reception

First Read $5,291/$300,000 (1.8%) Thank you today's backers: Les Male, Ananda Radhakrishnan, Julie Bauer and a donation in honor of TJC. ++++ Hits & Takes JLN Staff It is with sadness I report to you the death of longtime SG/Newedge technology executive Ed Netter....

Pin It on Pinterest

Share This Story