John Lothian Newsletter: Veronica Augustsson new CEO of Cinnober; Exchanges Cancel Trades That Sent Kraft Up 29%; Bank-Friendly U.S. Regulator Shifts Focus to Revamp Reputation

Oct 4, 2012

Software company Cinnober promotes Veronica Augustsson to CEO.  In what is becoming a fairly common occurrence, trades in a stock spiraled out of control for reasons not immediately known; and after reviewing the market behavior, exchanges canceled abnormal orders and trades.  The US Comptroller of the Currency, long viewed as a rubber-stamp overseer of the banking industry, is shifting direction under new leadership to begin taking a more careful hand in regulation.  In First Read today, follow the link to the fourth part of the John Lothian Profiles video interview series featuring Tom Cashman of the CBOT, who in today’s installment talks about trading during times of crisis and extreme volatility.

First Read

Profiles: Tom Cashman (Part 4: Crises & Volatile Markets)
MarketsWiki.tv
Our fourth segment profiling Tom Cashman features questions about trading in crises, trading volatile markets and the 1970s Russian grain and soybean purchases.
jlne.ws/P3bEaV

*** John Lothian Profiles is a series of video interviews focused on the stories of an eclectic selection of traders and the lessons they learned about trading.

++++

CFE Temporarily Postpones Launch Date For S&P 500 Variance Futures
CBOE Futures Exchange, LLC (CFE) today announced that it has temporarily postponed the launch of S&P 500 Variance futures, originally scheduled to begin on Thursday, October 4. The additional time will allow market participants to further prepare for the trading and clearing of S&P 500 Variance futures.
jlne.ws/OEVmoM

**DA: OK; but please hurry. I am a big fan of realized vs. implied volatility measures and would like to see this one take off.

++++

Change in Scoach Management Board
Scoach, Europe’s leading European trading platform for structured products, today announced a change to its Management Board. After three years’ service, Marco Steeg (39) is returning to Deutsche Börse AG to head Controlling & Billing with effect from 1 November 2012. Simone Kahnt-Eckner (46) is to become the new Chief Financial Officer (CFO) and Chief Operating Officer (COO) of Scoach Schweiz AG, Zurich, and Scoach Europa AG, Frankfurt, also from 1 November 2012.
jlne.ws/OEVmoS

++++

ISE Enhances “Kill Switch” Risk Management Tool
The International Securities Exchange (ISE) today announced the implementation of its electronic “Kill Switch” functionality in PrecISE Trade, ISE’s innovative, front-end execution system. The Kill Switch has already been available for exchange members that are connected to ISE via a Direct Trading Interface (DTI) or FIX connection. By extending this functionality to PrecISE, this segment of ISE’s membership community now has the ability to utilize the Kill Switch to cancel all open orders and prevent new order submissions for more comprehensive risk management. In addition, if a DTI or FIX user is unable to access their system during a session, PrecISE serves as an alternative means of enabling the Kill Switch.
jlne.ws/OEVlkL

**DA: Back when I was crammed into a trading pit, I often prayed for a kill switch. A different kind, though.

++++

FFastFill offers its global deployment services to BGC Partners, Inc
FFastFill plc, the leading provider of Software as a Service to the global derivates community, is pleased to announce an extension of its contract with BGC Partners to include the global deployment of FFastFill’s execution platform, which incorporates the Horizon Multi-Broker Network, across BGC’s current international brokerage offices. The deal extends FFastFill’s role within BGC Partners from an initial presence in selected locations to full worldwide market presence.
jlne.ws/Vty3OW

**DA: For more on FFastfill, see our recent video on MarketsWiki.tv.

++++

Bats and Morgan Stanley take spoils at FN awards
Michelle Price – Financial News
Bats Chi-X Europe and Morgan Stanley swept up at this year’s Financial News Awards for Excellence in Trading & Technology, taking home three awards each at the annual prize-giving gala dinner held in London last night.
jlne.ws/OEVowQ

++++

Blue Sky Pumps Water as Next Liquid Commodity Market
Gillian Tan – WSJ
While heavily invested asset classes like commodities and equities remain volatile, one Australian fund is poised to benefit from the fact it isn’t correlated to global markets.
jlne.ws/OEVmoX

**DA: I have found that cloudy skies pump a lot more water.

++++

TABB Group Dissects the Death of a SEF
No one wants to be a SEF, a swap execution facility, which is an entity with no clear meaning, created out of thin air by the Dodd-Frank Act and left to the Commodity Futures Trading Commission (CFTC) to define, says TABB Group in new research published today, “The Death of a SEF: The Coroner’s Report.” TABB believes that the OTC derivatives market is going to change more dramatically than regulations require. If not, it’ll cease to exist, warns Adam Sussman, a TABB partner, director of research and the report’s author.
jlne.ws/OEVmFe

**DA: So that’s it? DCMs have won the war? I would not count out the inter-dealer broking community just yet. Granted, Dodd-Frank has forced platforms to spend billions now in hopes that the market will be there afterward, but technological progress is forcing a reset anyway. But, yes, SEFs drew the short straw as the last set of rules to be finalized.

++++

Want to Fix a System? Break It First
Gregg Wirth – Traders Magazine
Want to see what happens to your trading desk or matching engines when you shut down a part of the electronic systems that support them? Try it. That, in effect, is what the U.S. equities industry’s post-trade processing utility, the Depository Trust and Clearing Corp., does. At the Securities and Exchange Commission’s Market Technology Roundtable Tuesday, DTCC managing director and chief development officer Albert Gambale detailed a tactic his firm routinely uses to test its systems.
jlne.ws/OEVlkW

**DA: I have used that same argument for the Fed’s recent bank “stress tests.” Want to see how well the banks are doing these days? Raise the Fed Funds rate 25 basis points and see what happens.  

++++

CME sticks with its own position limits after ruling against CFTC
Reuters
Exchange operator CME Group said on Wednesday it will maintain its existing position limits regime after the U.S. Commodity Futures Trading Commission’s new rule to curb commodity market speculation was thrown out by a court.
jlne.ws/OEVmFk

**DA: The new regime, which would have forced an aggregation of all “economically equivalent” products together in one bucket. It would have been much more accurate, but also much much much more expensive to monitor.

++++

SEC Market Technology and Trading Roundtable
Clarke Camper – Inside the Beltway
Is there a way to address the concerns expressed by some over high-speed electronic trading, without harming efficiency, liquidity and long-term competitiveness in equities markets? That was a central question for yesterday’s SEC market technology roundtable, which brought together academics, regulators and leaders in the industry to discuss recent glitches and ways to address them to ensure that U.S. capital markets remain the center of global finance.
jlne.ws/OEVmFr

**DA: The blue-ribbon panel put together after the flash crash put out their recommendations as well, and then…nothing. Will something get implemented this time?

++++

Vendors of the world unite!
Hamish Purdey – FOW
STP is the holy grail of the futures industry – both for buy and sell side – and we know that true straight through processing is very difficult to achieve. But it’s not impossible.
jlne.ws/OEVogo

++++

[Video] Position Limits Difficult to Enforce, Wolkoff Says
Bloomberg
Neal Wolkoff, of counsel at Richardson & Patel LLP and former chief executive officer of the American Stock Exchange, talks about a federal judge’s decision to strike down efforts by the Commodity Futures Trading Commission to limit speculative derivatives trading under the Dodd-Frank financial overhaul law.
jlne.ws/QQvmWu

++++

Argentine navy ship seized in asset fight
Sam Jones in London and Jude Webber in Buenos Aires – FT.com
An Argentine naval vessel crewed by more than 200 sailors has been seized in Ghana as part of an attempt by the US hedge fund Elliott Capital Management to collect on bonds on which Buenos Aires defaulted in 2001.
jlne.ws/QIEbhs

**DA: What part of “default” do you not understand? It means we ain’t paying.

++++

Ina Drew, Jamie Dimon and JPMorgan Chase’s $6 Billion Mistake
SUSAN DOMINUS – NYTimes.com
In February of 2011, Jamie Dimon, the chief executive officer of JPMorgan Chase, approached the podium of one of the ballrooms at the Ritz-Carlton Hotel in Key Biscayne, Fla., where 300 senior executives from around the world were attending the bank’s annual off-site conference. By that time, the cold fear of the financial crisis was cordoned off in the near-distant past, replaced by a dawning recognition that the ensuing changes in business – the comparatively trifling risk limits, the dwindling bonuses, the elevated stress levels – might actually be permanent.
jlne.ws/OEVogw

++++

Connecting the Dots: From Networking to Coordinating
By Jessica Titlebaum – Glass Hammer
While networking is a crucial skill for success, it’s a stale concept. These days, every conference, seminar or workshop is followed by a networking reception offering attendees a chance to meet and mingle with their peers. Don’t get me wrong, I am a strong believer in sipping a cocktail, rolling up your sleeves and shaking a few hands. I never go anywhere without business cards. However, success doesn’t come in establishing relationships, it’s in the nurturing of them.
jlne.ws/OEVogx

**DA: Words of wisdom from the best networker ever to cross our doors at John Lothian & Co.

MarketsWiki.tv

Frank Pusateri of CTA Expo Discusses the Potential for Managed Futures ETFs
MarketsWiki.tv
Frank Pusateri is the president and founder of CTA EXPO, the conference group which hosts events for emerging managers in Chicago, New York, London and for the first time, in Miami on December 13. He spoke with JLN editor-in-chief Jim Kharouf about the trends he is seeing in the managed futures space, the challenges they face and the prospects for managed futures ETFs as well as mutual funds.
jlne.ws/SuCiZC

JLN Options

Wall Street Equities Traders Face Worst Year Since 2006
Michael J. Moore, Bloomberg
Wall Street banks’ equities-trading units aren’t getting much relief from the strongest stock rally since 2009, as sinking volume and already thin margins threaten to make their annual performance the worst in six years.
jlne.ws/PPBI5B

Calm stock market? Not according to two option gauges
Doris Frankel, Reuters
The options market is showing signs of increasing worry about the path of the stock market over the next few months — and some traders are bidding up puts to protect their assets in case of a decline in equities.
jlne.ws/PPvz9s

Get ready for a roller-coaster ride
Commentary: October has historically been most volatile of the year
Mark Hulbert, MarketWatch
Fasten your seatbelts, investors, and get ready for a wild ride. I say this not because I think the stock market will necessarily decline for the month, though it could. But the judgment of history is that, regardless of how stocks behave in October, the path the market takes between now and Halloween is likely to be a particularly volatile one.
jlne.ws/T1B2yy

MarketsWiki

MarketsWiki Page of the Day
Smith Barney
jlne.ws/SFzoxm

++++

MarketsWiki Recent Updates

People

Dave Oxner; Jeffrey M. Christian; Bill Murphy; Jeff Mezger

Companies, Organizations and Groups

Gate39MEDIA; Permal; MF Global Holdings Ltd

Statistics

29,152,522 pages viewed, 7,131 articles, 148,120 edits
MarketsWiki Statistics

Lead Stories

Veronica Augustsson new CEO of Cinnober
As a successful young woman in the finance industry, Veronica Augustsson has made an impressive journey and was recently mentioned in Financial News’ “40 Under 40 Rising Stars of Trading and Technology” list. She has now been appointed CEO of leading financial technology company Cinnober.
jlne.ws/QK8ZhR

Exchanges Cancel Trades That Sent Kraft Foods Up 29%
Bloomberg
Erroneous trades that sent Kraft Foods Group Inc. (KRFT) up as much as 29 percent in the first minute of trading were canceled by exchanges, the latest incident to fuel scrutiny of the electronic infrastructure of U.S. markets.
jlne.ws/OEVmVV

Bank-Friendly U.S. Regulator Shifts Focus to Revamp Reputation
Bloomberg
In a stately hearing room stuffed with senators and bankers, Thomas Curry began his apologies. His agency should have stopped a major bank from helping drug cartels launder cash. The violations went on for years while his agency was overly passive.
jlne.ws/OEVowV

Court Accepts Guilty Plea From Peregrine Financial CEO Wasendorf
JACOB BUNGE – WSJ.com
A federal court in Iowa formally accepted a guilty plea by the chief executive of Peregrine Financial Group Inc., charged with defrauding his customers in a nearly 20-year scheme.
jlne.ws/OEVox0

Eyes on Spain as ECB meets, bazooka ready
Reuters via Yahoo! News
European Central Bank President Mario Draghi will keep his bond-buying bazooka on display when the bank meets on Thursday, but Spain’s reluctance to request aid from EU partners means he is unlikely to pull the trigger soon.
jlne.ws/OEVncm

Survey Signals That Euro Zone Has Fallen Into Recession
JACK EWING – NYTimes.com
The euro zone was most likely in recession in the third quarter, a private sector survey showed Wednesday, a day before the European Central Bank’s governing council was to meet to discuss monetary policy.
jlne.ws/OEVox9

Greece Leader’s Shift Wins Favor
ALKMAN GRANITSAS and MARCUS WALKER – WSJ.com
Greek Prime Minister Antonis Samaras is undergoing one of the biggest metamorphoses of his long political life: from shrill opponent of Europe’s rescue plan for Greece, to the man the Continent’s leaders now see as the best bet for keeping the country in the euro zone.
jlne.ws/OEVoNp

Regulatory

CFTC’s Gensler to push on with position limits
Reuters
Gary Gensler, chairman of U.S. regulator the Commodity Futures Trading Commission (CFTC), vowed to push ahead with a new rule to curb speculation in commodity markets after a court threw out the CFTC’s plans last week.
jlne.ws/T1uDTY

Speculators Vindication
Phil Flynn – PRICE Futures Group
As oil prices soared to a record high in 2008, traders, politicians and regulators were stunned as oil made a move of historical portions. Some said we hit peak oil! Others said it was an oil company conspiracy! And others said it was a sign of pure market manipulation by speculators!
jlne.ws/OEVoNr

Swap Regulators Face Push for Delays as Oct. 12 Deadline Looms
Silla Brush and Matthew Leising – Bloomberg
The U.S. Commodity Futures Trading Commission, facing an Oct. 12 start date for a slate of derivatives rules, is being bombarded with requests from lobbying groups to ease or delay the Dodd-Frank Act measures.
jlne.ws/OEVoNv

The SEC Came Out Of Yesterday’s Big High Frequency Trading Conference With One Concrete Idea
Business Insider
Despite the SEC’s reputation for being ineffectual, the fact that it had a day-long roundtable on high frequency trading yesterday was big news.
jlne.ws/OEVoNw

Singapore Exchange Derivatives Trading Limited’s MSCI Indonesia Index Futures Contract has been Certified and may be Offered to U.S. persons through Direct Access Effective October 2, 2012
On August 15, 2012, Singapore Exchange Derivatives Trading Limited (SGX) requested expedited Commodity Futures Trading Commission (CFTC) review of the SGX’s MSCI Indonesia Index futures contract so that it may be offered to U.S. persons. SGX also requested that the contract may be made available through direct access terminals in the United States.
jlne.ws/OEVnsT

NFA Notice to Members
Effective Dates of Amendments to NFA Bylaw 301 and Registration Rules 401 and 402 Regarding Swap Registration Requirements for FCMs, IBs, CPOs, CTAs and APs
jlne.ws/OEVnt0

ASIC releases new information guides on reporting misconduct
jlne.ws/OEVp3S

[Austria] EBA Exercise to Strengthen Capital Positions of Large European Banks Successfully Concluded
Erste Group Bank & Raiffeisen Zentralbank Meet Capital Requirements
jlne.ws/OEVnJk

Exchanges & Trading Facilities

TMX Group Consolidated Trading Statistics – September 2012
Trading volume on Toronto Stock Exchange increased 20% in September 2012 compared to the prior month; it was down 22% compared to September 2011. TSX Venture Exchange trading volume was up 11% in September 2012 compared to August 2012 and was down 12% compared to September 2011. Volume on TMX Select was up 5% compared to August 2012 and was down 46% compared to September 2011. Volume on Alpha increased 11% compared to the prior month and declined 36% compared to September 2011.
jlne.ws/OEVp41

ASX Group Monthly Activity Report – September 2012
In September 2012 the average daily number of trades was 13% lower than the pcp, and the average daily value of trading was 21% lower than the pcp. In September 2012 average daily derivatives traded on ASX decreased 9% on the pcp. Average daily futures and options on futures volume on ASX 24 increased 22% on the pcp.
jlne.ws/OEVnJx

ASX Compliance Monthly Activity Report – September 2012
jlne.ws/OEVnZR

EEX Trading Results in September
In September 2012, the total trading volume on the Natural Gas Market of the European Energy Exchange (EEX) amounted to 4,526,607 MWh. In September, short-term trading developed particularly well due to increased member activity. The traded volume on the Natural Gas Spot Market doubled in comparison to September 2011.
jlne.ws/OEVp49

Vienna Stock Exchange Derivatives Market Monthly Statistics – September 2012
jlne.ws/OEVqVv

Vienna Stock Exchange Monthly Statistics – September 2012
jlne.ws/OEVpkx

Ljubljana Stock Exchange Monthly Statistical Report – September 2012
jlne.ws/OEVqVF

Athens Exchange Monthly Statistical Bulletin September 2012
jlne.ws/OEVpAV

BM&FBOVESPA Monthly Bulletin – September: Corporate Sustainability Index (ISE) Accumulates High Of 22,26% In 12 months
jlne.ws/OEVpAX

LifeLock, Inc. Celebrates IPO on the New York Stock Exchange
jlne.ws/OEVrc0

NASDAQ OMX Holds Third Quarter 2012 Investor Conference Call
jlne.ws/OEVpB0

Bulgarian Stock Exchange: Serious Investor Interest Shown For The Shares Of Energo-Pro Power Distribution Companies – Updated
jlne.ws/OEVrc4

Hedge Funds & Managed Futures

M Stanley in talks over commodities unit
Tracy Alloway in New York and Javier Blas in London – FT.com
Morgan Stanley is in talks to sell as much as a majority stake of its commodities unit to the Qatar Investment Authority, according to people familiar with the potential deal.
jlne.ws/OEVrc8

Louis Dreyfus to sell energy trader
Dan McCrum in New York, and Javier Blas in London – FT.com
Glenn Dubin, Paul Tudor Jones and a group of commodity market luminaries are to buy an energy trading business from Louis Dreyfus Group and Highbridge Capital, the hedge fund owned by JPMorgan Chase.
jlne.ws/OEVpBb

BlackRock CFO named most powerful woman in finance
Shanny Basar in New York – Financial News
Ann Marie Petach, the chief financial officer at fund manager BlackRock, has been named American Banker’s most powerful woman in finance in the magazine’s 10th edition of the list. But Heidi Miller, ex-president of international operations at JP Morgan Chase, says women haven’t made the progress she expected in the last decade.
jlne.ws/OEVpRs

Tips for Self-Discipline in Investing
MICHAEL A. POLLOCK – WSJ.com
Dieting is easier if you don’t have a half-eaten cake staring at you when you open the refrigerator door. And successful mutual-fund investing is easier, too, if you limit the temptations to act badly.
jlne.ws/OEVpRu

Lansdowne launches long-only fund for Davies and Roden
Harriet Agnew – Financial News
Lansdowne Partners, the largest equities hedge fund manager in Europe, has launched a long-only fund for its well-known portfolio managers Pete Davies and Stuart Roden, Financial News has learnt.
jlne.ws/OEVpRx

Carlyle Buys Control of a Commodities Trader
WILLIAM ALDEN – NYTimes.com
The Carlyle Group is expanding into the business of trading commodities. The private equity firm said on Wednesday that it had taken a 55 percent stake in Vermillion Asset Management, a commodities hedge fund with about $2.2 billion in assets. Carlyle, which paid a mix of stock and cash, will make Vermillion its main commodities trading platform.
jlne.ws/OEVpRC

TIAA-CREF Trust Company Selects Citi’s OpenWealth to Provide Wealth Management Services for its Private Asset …
Business Wire via Yahoo! Finance
TIAA-CREF Trust Company, FSB, a leading financial services provider has selected OpenWealth, Citi’s award-winning wealth management solution, as its new service delivery platform for its Private Asset Management offering, extending and expanding the relationship it began in 2009 for its Portfolio Advisor business.
jlne.ws/OEVpRH

Banks & Brokers

ICAP electronic broking volumes up 11% in September
ICAP, the world’s leading interdealer broker, announces today that average daily volumes on the BrokerTec and EBS platforms for September were US$716.8bn, 11% higher than in August. For the month of September there was a year-on-year decrease of 16%.
jlne.ws/OEVrsI

Liquidnet takes knife to European business
Tim Cave – Financial News
Liquidnet, a provider of buyside trading platforms, has made cuts from its European workforce in recent weeks, Financial News has learnt, as it fights to contain costs amid the global drought in equities trading.
jlne.ws/OEVq83

JPMorgan Rivals Face Billions in Damages After MBS Case
David McLaughlin – Bloomberg
JPMorgan Chase & Co. (JPM)’s rivals may face government lawsuits claiming tens of billions of dollars in damages tied to investor losses on mortgage bonds after New York’s attorney general filed a fraud lawsuit against the nation’s biggest bank by assets.
jlne.ws/Vty05E

BNP Is Coming Under Pressure With SocGen to Isolate Risk
Fabio Benedetti-Valentini – Bloomberg
French lenders’ trading assets have grown to almost match the size of the nation’s economy, making them vulnerable to government efforts to wall off banking risk.
jlne.ws/OEVq86

New York is a tall order for Europeans
Patrick Jenkins and Daniel Schäfer – FT.com
Wall Street may never have been as cosmopolitan a financial centre as the City of London. Foreign banks have been eager enough, but their US rivals have traditionally grabbed most of the spoils. Today, more than ever, many bankers believe Wall Street is becoming an American-only club.
jlne.ws/OEVrJ2

BofA Agrees to Sell 12-Building New Jersey Office Campus
Bloomberg via Yahoo! Finance
Bank of America Corp. agreed to sella 12-building office campus in central New Jersey that itinherited from Merrill Lynch & Co., part of the company’sefforts to cut costs.
jlne.ws/OEVrJ4

European Bank Authority Releases Details Of How European Banks Are Meeting Capital Recommendation
jlne.ws/OEVq8f

Brown Brothers Harriman, Hilliard Lyons, Legg Mason, Edward Jones, And JPMorgan Chase Recognized With SIFMA Diversity Leadership Awards
jlne.ws/OEVqow

Clearing & Settlement

TriOptima’s triReduce portfolio compression service eliminates more than $300 trillion in interest rate and credit default swap notional principal outstandings
TriOptima announces today that its triReduce multilateral portfolio compression service has terminated more than $300 trillion in notional principal outstandings since its launch in 2003. Participation in triReduce’s 715 termination cycles for interest rate swaps and credit default swaps included 163 financial institutions around the globe.
jlne.ws/OEVrJ9

Euroclear Bank Receives Russia’s Approval To Service OFZs
Euroclear Bank is pleased to have been granted access to Russia’s central securities depository (CSD) by Russia’s Federal Financial Markets Service to offer post-trade services for Russian OFZs, one of the most actively traded classes of Russian government bonds. Euroclear Bank will also be able to offer services for other Russian government and municipal bonds, corporate bonds and securities issued by foreign entities. This welcome development ends months of speculation as to whether OFZs would become ‘Euroclearable’.
jlne.ws/OEVrJc

CME Group Clearing Advisory: Columbus Day Holiday Clearing Schedule-Monday, October 8, 2012
jlne.ws/OEVrJf

Indexes & Products

Once Upon A Time, Vanguard Loved MSCI
Nasdaq
On Tuesday, Vanguard rocked the exchange-traded products world by announcing it would drop MSCI indexes on 22 of its funds. Pennsylvania-based Vanguard, the firm that pioneered index funds and today is the third-largest U.S. ETF sponsor, said the moves “should save millions of dollars in licensing expenses for the funds-savings that will ultimately benefit shareholders,” according to a statement issued by the firm .
jlne.ws/OEVrJj

ETF investors shift to eurozone recovery play
Sarah Krouse – Financial News
Exchange-traded funds focused on peripheral European countries gained traction in September, with both Spanish and Italian ETFs reporting inflows as investors began to bet on a eurozone recovery.
jlne.ws/OEVqoE

Dow Jones-UBS Commodity Indexes: September 2012 Commodities Commentary – Dow Jones-UBS Commodity Indexes Up As Investors Ponder Global Central Bank Measures And Market Fundamentals, By Christine Marie Nielsen
jlne.ws/OEVqoJ

Dow Jones-UBS Commodity Indexes – September 2012 Performance Report
jlne.ws/OEVrZH

New SPDR ETF launched on Xetra
jlne.ws/OEVrZI

ETFGI: Global ETFs And ETPs Gather Record Inflows Of US$188 Billion Year-To-Date Through End Of Q3 2012 And Assets Reach New Record High Of US$1.86 Trillion
jlne.ws/OEVrZK

Dow Jones Islamic Market Titans 100 Index Closed Up 2.76% In September
jlne.ws/OEVrZP

IndexIQ To List Hedge Fund ETF Thursday
jlne.ws/OEVqFb

Technology

Fixnetix Wins Best High Frequency Trading Product In The Financial News Awards For Excellence In Trading And Technology, Europe 2012 – Pre-Trade Risk Control For Europe Recognised As Industry Best
Fixnetix, managed services provider for ultra-low latency market data, trading and risk control, announced today they are the winner of the Best High Frequency Trading Product presented by the Financial News Awards for Excellence in Trading and Technology, Europe 2012.
jlne.ws/OEVqFe

Enforcement

Adoboli’s UBS Colleague Denies Bar Meeting Over Trades
Bloomberg
Simon Taylor, a former UBS AG trader, told a U.K. jury he didn’t attend a secret meeting with his co- worker Kweku Adoboli at a bar last year to decide who should take the blame for mounting losses from unauthorized trades.
jlne.ws/OEVsga

SEC Charges Hedge Fund Managers with Defrauding Investors; 2012-206; October 3, 2012
The Securities and Exchange Commission today separately charged a pair of hedge fund managers and their firms with lying to investors about how they were handling the money invested in their respective hedge funds. The charges are the latest in a series of actions taken by the SEC Enforcement Division and its Asset Management Unit against hedge fund-related misconduct in the markets.
jlne.ws/OEVqFf

Dark-Pool Operator to Pay $800,000 for Disclosing Trades
JENNY STRASBURG AND SCOTT PATTERSON – WSJ.com
A stock-trading “dark pool” backed by some of Wall Street’s biggest banks agreed to settle a regulator’s allegations that it improperly shared confidential client-trading information with a unit of Citigroup Inc., one of its investors. The Securities and Exchange Commission alleged in its order that Boston-based broker-dealer eBX LLC allowed the third-party operator of its trading platform, called LeveL ATS, to use details on client orders, including the stocks involved and whether they were buy or sell orders, to its own advantage
jlne.ws/OEVsgd

SEC Charges Repeat Violator in South Florida with Fraudulently Offering Investments Tied to Oil Drilling Projects; 2012-205; October 3, 2012
The Securities and Exchange Commission today announced that it has obtained an emergency court order to freeze the assets of a South Florida man who has been charged with fraudulently offering investments in oil drilling projects.
jlne.ws/OEVsgi

Environmental & Energy

Emission guidelines need ‘regulatory flexibility’
CBC
An influential think-tank wants Ottawa to adopt a “regulatory flexibility” that incorporates elements of a cap-and-trade system when it drafts much-anticipated emissions regulations for the oil and gas industry.
jlne.ws/PXrgK4

U.N. carbon price forecasts to 2020 cut further: Reuters poll
Reuters
Analysts cut their price forecasts for United Nations’ carbon permits to 2020 further on Tuesday as over-supply continued to put pressure on prices, a Reuters poll of 14 analysts showed.
jlne.ws/Wlk7px

**RKB – Barclays Capital analysts said last week over-supply and stagnant demand will ensure CER prices remain below 3 euros indefinitely, even if European Union governments intervene in the EU’s Emissions Trading System (ETS) to help boost prices. From the survey: The average forecast for CERs in the second half of this year was 2.50 euros a tonne on Tuesday, down 16 percent from the previous poll in September, while the 2013 forecast was cut by 22 percent to 3.44 euros.

EU considers limiting carbon offsets from 2013
The Age
The European Commission proposed to prohibit in the region’s carbon trading program the use of certain carbon credits issued after 2012 by countries without binding emission-reduction targets, according to two people with knowledge of the matter.
jlne.ws/SyAHSy

Asia-Pacific

Malaysian PM warns on high speed trade
Jeremy Grant in Kuala Lumpur and Michael Mackenzie in New York – FT.com
The emergence of high-frequency trading means the risk of financial shocks spreading fast is “greater than ever”, Malaysia’s prime minister, Najib Razak, has warned.
jlne.ws/OEVtAI

JP Morgan creates Southeast Asia debt team
The Wall Street Journal Deal Journal blog
JP Morgan Chase has created a new team in Southeast Asia focusing on debt, according to a memo seen by The Wall Street Journal, highlighting the growing importance of both the region and debt capital markets to investment banks in Asia amid an explosion in bond issuance this year.
jlne.ws/OEVsgk

Vanguard FTSE Switch to Boost China as Korean Stocks Sold
Bloomberg
Vanguard Group Inc. fund managers investing in emerging markets will have to sell South Korean stocks and step up purchases of Chinese and Brazilian shares after the largest U.S. mutual-fund provider switched benchmarks for its six equity funds.
jlne.ws/OEVtAN

Audit Oversight Board Malaysia Establishes Collaboration With Japan Counterparts
The Audit Oversight Board Malaysia (AOB) today established official collaboration in audit oversight with the Japan Financial Services Authority (JFSA) and the Certified Public Accountants Audit Oversight Board (CPAAOB).
jlne.ws/OEVtAO

Frontier Markets

Rashid Bin Ali Al-Mansoori new CEO of Qatar Exchange
The Board of Qatar Exchange (QE) has appointed Rashid Bin Ali Al-Mansoori as CEO of Qatar Exchange. Dr. Hussain Ali Al Abdulla, Acting Chairman of QE’s Board, stated that the appointment of Al-Mansoori as the CEO of Qatar Exchange comes in line with the general policy of the State of Qatar in terms of appointing highly-qualified Qataris in leading positions in government and semi government institutions
jlne.ws/OEVtAS

Kenya eyes deeper market with first bonds index
Reuters via Yahoo! News
NAIROBI – Kenya’s Nairobi Securities Exchange has launched a new government bonds index that will help investors to better measure the performance of their portfolios. The move marks a step forward for a market that is still in its infancy but now has more than 60 outstanding government bonds with a value of 690 billion shillings.
jlne.ws/OEVtAV

TheCityUK Extends International Financial Centre Network To North Africa – Morocco Becomes Latest Financial Hub To Join Global Financial Alliance
TheCityUK, the independent body responsible for promoting financial and professional services in the UK and overseas, will today add Casablanca in Morocco to its network of international financial centres. The signing of a new agreement between TheCityUK and the Moroccan Financial Board will assist the development of the securities and derivative markets; encourage education and training in the financial services sector; and help build an insurance and reinsurance sector that will benefit the wider African market.
jlne.ws/OEVtAW

Sukuk Taking Flight as Airline Readies Debut Sale: Turkey Credit
Bloomberg
Turkey’s Islamic bond market is gathering momentum as companies from the national airline to the biggest telephone operator plan offerings after the government sold its first local-currency sukuk.
jlne.ws/OEVswJ

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

Pin It on Pinterest

Share This Story