John Lothian Newsletter: Australian Exchange Chief Criticises HFT; Money-Laundering Inquiry Said To Target U.S. Banks; ASEAN Link Lures Retail Investors To Boost Trade

Sep 18, 2012

The leader of Australia’s ASX says high-frequency trading is inherently dangerous, and he doesn’t much fancy the exchange model of depending on its high-volume presence for survival. A money-laundering probe is taking shape in multiple agencies, targeting a number of American banks that may have allowed sloppy money controls to help criminal enterprises hide their cash. The ASEAN link between Malaysia and SGX goes live today, raising hopes of better trade in that region from the network.

First Read

Will The SEC’s Fine Against NYSE Open A Can of Worms?
Melanie Rodier – Wall Street & Technology
The New York Stock Exchange has settled accusations from the SEC that its trading data gave certain clients a head start on stock data over retail investors. It was the first time the SEC slapped a fine on an exchange.
jlne.ws/OamLyA

**** There is a clear need to update this cliche.  When did you really last see a can of worms?  I have seen cartons of worms, I have seen plastic bags of fake rubber worms, but I can’t remember seeing a can of worms. The cliche is so old that if you did open a can of worms, the worms would all be dead.

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NYSE Euronext and CF&B Communication launch 12th Midcap Event, 24 & 25 September 2012 at Palais Brongniart in Paris
NYSE Euronext (NYX) and CF&B Communication today announced that the 12th annual Midcap Event will take place on September 24 and 25 at Palais Brongniart in Paris. It will bring together 150 companies listed on the European market of NYSE Euronext and 400 institutional investors from around Europe.
jlne.ws/OamLyF

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MGEX to Present at International Citrus & Beverage Conference
MGEX, a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO), will attend and present at the International Citrus & Beverage Conference (ICBC) this week, September 18-21, 2012, at the Sheraton Sand Key Resort in Clearwater Beach, Florida.
jlne.ws/OamLyL

**** First apple juice and then even more liquidity.

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Deutsche Börse AG Extends Term Of Reto Francioni
Press Release
The Supervisory Board of Deutsche Börse AG resolved changes to the
composition of the Executive Board in a meeting held today. CEO Dr Reto
Francioni (57) was reappointed, and will serve a further term of office
until 31 October 2016. He has been CEO of Deutsche Börse AG since 2005.
http://jlne.ws/QyU8HG

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Dark pool chiefs exit Icap
Tom Osborn – Financial News
Daemon Bear, Chris Turnbull and Steve Townsend all left Icap earlier this month, according to the Financial Services Authority register. Several others, including traders and trade support staff, have also left the broker, according to two people familiar with the matter.
jlne.ws/OamKef

**** Are there worms in Dark Pools?

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Firms go through hell and high water in ‘need for speed’
Tim Cave – Financial News
Over land and sea, no stone is left unturned, no path not pursued, no obstacle too big in the perennial quest to shave an extra millisecond off trading speeds. Nowhere is this extreme “need for speed” more evident than in the latest generation of routes for fibre-optic cables.
jlne.ws/OamLyN

**** It used to be that traders just wanted fast cars.

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Is the sea the next frontier for high-frequency trading?
Michelle Price – Financial News
It sounds like something out of a bad Kevin Costner film, but “seasteading” – the establishment of cities floating on the world’s seas – has grown into a genuine political movement. While some people see them as testbeds for pioneering societies, others see a trading opportunity.
jlne.ws/OamLyP

**** Sea worms?

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FINRA Targeting Options Manipulation
Peter Chapman – Traders Magazine
The Financial Industry Regulatory Authority is investigating allegations of manipulation in the options market. Specifically, the regulator is targeting newly discovered types of “mini manipulation,” or the trading of an option’s underlying equity in order to profit from movements in the price of the option.
jlne.ws/OamKuw

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Deferred Prosecution Agreements and Cookie-Cutter Justice
PETER J. HENNING – NYTimes.com
Lanny A. Breuer, the head of the Justice Department’s Criminal Division, last week spoke to the New York City Bar Association, extolling the virtues of deferred and nonprosecution agreements as the new standard for how the Justice Department deals with criminal conduct by corporations.
jlne.ws/OamKuy

**** Wormy prosecution?

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Can regulation open up European clearing?
Tomas Kindler – FOW
The gradual phasing in of interoperability has been the biggest development in recent years to the clearing layer in Europe. Under interoperability, market participants choose their CCP of choice from a number of alternatives. This introduction of competition to European clearing is designed to create market efficiency, in order to bring down costs and improve the quality of service.
jlne.ws/OamLyS

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Into the breach: managing risk and effective change in the era of compliance
James Keenan – FOW
The internal workings of organisations are being scrutinised like never before. This stems not only from regulatory measures to improve transparency, but also from a social change. Perceived wrong-doing is now more closely investigated by, amongst others, an increasing cadre of small but active shareholders, as well as a growing contingent of so-called ‘whistleblowers’.
jlne.ws/OamKuC

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Winklevoss Twins of Facebook Fame Return to Invest in SumZero
WSJ.com
The Winklevoss twins lost the biggest social-network showdown ever when their rival, Mark Zuckerberg, walked away with Facebook. Now they are trying again—with a social network for professional investors.
jlne.ws/OamKuE

**** SumZero sums it up.

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Nearly Twice as Many Young Adults Say They Would Rather Work on Wall Street Than Protest Against It
76 Percent Say the Lack of Job Opportunities Is Shrinking the Middle Class, as Young Adult Unemployment Remains at 12.7 Percent
jlne.ws/OamLPe

**** A job is an empowering thing. Living in your parent’s basement after college is not.
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Occupy Wall Street: a Frenzy That Fizzled
By ANDREW ROSS SORKIN – NYTimes.com
It will be an asterisk in the history books, if it gets a mention at all. A year ago this week, the Occupy Wall Street movement got under way in Zuccotti Park in Lower Manhattan. The loose group of protesters, frustrated by the economic downturn, sought to blame Wall Street and corporate America for many of the nation’s ills.
jlne.ws/OamKuH

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Young Markets: A New Event Discussing the Future of Finance
Young Markets, a unique new conference devoted to the future of finance, will be inaugurated Wednesday 19th September with a speech by His Excellency Charles Crawford, the former British Ambassador to Belgrade, Sarajevo and Warsaw. The inaugural event will take place in Sibiu, Transylvania 19-21st September, a historic city in the New Europe, an intriguing mid- point between the established west and the emerging east.In addition to the delegates attending in Sibiu, Young Markets will also be live on the internet broadcasting to virtual delegates. For a 100 Euro fee, anybody anywhere in the world can watch Young markets live.

For complete details, visit jlne.ws/OamLPg

JLN Managed Futures

Managed Funds Association Announces 2012/2013 Board of Directors, Continued Focus on Coordinated Global Outreach
Business Wire via Yahoo! Finance
Managed Funds Association , the voice of the global alternative investment industry representing hedge fund and managed futures firms managing approximately seventy-percent of industry assets, today announced its 2012/2013 Board of Directors.
jlne.ws/RRudxN

**DA: Maverick Capital’s William Goodell re-elected as chairman; new board members include Christopher Greene of Tudor, David Haley of HBK, Steve Kessler of S.A.C. Capital, and Kimberly Summe of Partner Fund Management. Congrats to all.

Trend to overcharge and overtrade persists
Jonathan Davis – FT
The damning money-weighted rates of return analysis carried out by Simon Lack in his book The Hedge Fund Mirage has prompted a useful debate about the true returns recorded by hedge funds. Industry lobbyists have not had much luck in undermining his critique, which is hardly surprising as the data, interpreted correctly, is essentially unanswerable, although the conclusions people draw from the data is another matter.

**JK – Food for thought in the managed futures space – are fees too high?

SEC Weighs Up Sophisticated Investors’ Sophistication
Stephen Taub – Institutional Investor
As the Securities and Exchange Commission prepares to permit hedge funds and other private partnerships to advertise, the trade group that looks out for the interests of hedge funds has asked the regulator to spell out exactly what they must do to verify whether investors are accredited after the rules in the Jump Start Our Business Start-ups Act (JOBS Act) are finalized.

**JK – Much is made of the JOBS Act and hedge fund advertising. It may not be the boost everyone expects though.

MarketsWiki

MarketsWiki Page of the Day
Cliff Weber
jlne.ws/PtcUk4

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MarketsWiki Recent Updates

People

Clifford J. Weber; Scott Gordon; Leslie Rosenthal; Maureen C. Downs; J. Robert Collins; Jennifer Ropiak

Companies, Organizations and Groups

NYSE Liffe U.S.; APX-ENDEX; Rosenthal Collins Group LLC

Miscellaneous

Occupy Wall Street; Electronic trading; Five Minutes With Cliff Weber

Statistics

28,544,921 pages viewed, 7,108 articles, 147,632 edits
MarketsWiki Statistics

Lead Stories

Australian exchange chief criticises HFT
Philip Stafford – FT.com
The head of the Australian Stock Exchange has criticised businesses models that encourage high-frequency trading as regulators prepare an indepth report on the country’s market structure. Elmer Funke Kupper, chief executive of ASX, described some economic models that encouraged HFT as “inherently dangerous” and pointed to the experience of US equities markets in which high-frequency trading accounts for more than half of the daily average volume.
jlne.ws/OamM5G

Money-Laundering Inquiry Said to Target U.S. Banks
JESSICA SILVER-GREENBERG and BEN PROTESS – NYTimes.com
Federal and state authorities are investigating a handful of major American banks for failing to monitor cash transactions in and out of their branches, a lapse that may have enabled drug dealers and terrorists to launder tainted money, according to officials who spoke on the condition of anonymity.
jlne.ws/OamKL6

Asean Link Lures Retail Investors to Boost Trade: Southeast Asia
Bloomberg
The Malaysian and Singaporean stock exchanges are seeking to attract individual investors and bolster volumes by offering cross-border trading, the first step in creating a Southeast Asian platform.
jlne.ws/OamM5M

Buyside laments over-the-counter liquidity drought
Michelle Price – Financial News
Liquidity in the over-the-counter markets is in a “dire” state as dealers steadily reduce their marketmaking activity, according to buyside firms. Speaking at an industry conference hosted by Worldwide Business Research last week, buyside traders said that industry-wide deleveraging combined with the impending introduction of more stringent capital requirements had led dealers, the main source of liquidity in the OTC markets, to wind down their inventories, the stockpile of securities dealers hold to facilitate marketmaking.
jlne.ws/OamM5R

Microwave networks reheat the trading arms race
Tom Osborn – Financial News
When the use of fibre-optic networks spread through the electronic securities markets in the early Noughties, many thought it marked the end of one element of the e-trading arms race. Surely, they reasoned, trading could not get faster than the speed of light?
jlne.ws/OamKL9

Peregrine’s Wasendorf Jr. Sues US Bank
By Jacob Bunge
The son of Peregrine Financial Group Inc. chief Russell Wasendorf Sr. filed a lawsuit against the company’s bank, charging it failed to properly supervise the movement of customer funds.
jlne.ws/OamM5T

Peregrine CEO pleads guilty; to stay in jail
Reuters
Peregrine Financial Group Chief Executive Russell Wasendorf Sr. pleaded guilty to embezzling more than $100 million from customers of his futures brokerage, lying to regulators to cover his tracks, and mail fraud on Monday. Previously expected to be set free from jail pending his sentencing, Wasendorf was told he will remain behind bars while a judge determines whether he is a flight risk.
jlne.ws/OamM5U

CFTC searching for cause of rapid oil price plunge
Reuters via Yahoo! News
The U.S. Commodity Futures Trading Commission is in contact with futures exchanges over a brief plunge in oil prices on Monday afternoon, a top regulator at the agency said, adding that it is unclear if high-frequency trading played a role.
jlne.ws/OamKLf

CME Group says no technical issues in crude oil sell-off
Reuters via Yahoo! News
NEW YORK – CME Group Inc , the parent company of the New York Mercantile Exchange, was not immediately aware of any technical issues that might have triggered a sharp sell-off in U.S. crude oil futures on Monday afternoon, a CME spokesman said.
jlne.ws/OamKLg

Oil Prices Projected to Get Hammered Even More
JERRY A. DICOLO AND CAROLYN CUI – WSJ.com
A plunge in crude-oil prices rippled through financial markets, leaving traders confused and regulators seeking answers. Oil prices dropped more than $3 in less than a minute late in the trading day on Monday, just as trading volume spiked. The move also dragged down prices of gold, copper and even the euro.
jlne.ws/OamMmd

Europe Banks Fail to Cut as Draghi Loans Defer Deleverage
Bloomberg
European banks pledged last year to cut more than $1.2 trillion of assets to help them weather the sovereign-debt crisis. Since then they’ve grown only fatter.
jlne.ws/OamMme

Credit Suisse to reveal more data, staff names in U.S. tax probe
Reuters via Yahoo! News
Credit Suisse said it would transfer more information on its money management arm for wealthy Americans to U.S. officials, including more names of its own employees, as part of an effort to settle a tax evasion probe.
jlne.ws/Uh9NMv

Merkel Backs Bond-Buying Program
WILLIAM BOSTON – WSJ.com
German Chancellor Angela Merkel reiterated her support for the European Central Bank’s bond-buying program as she tried to walk a fine line in endorsing ECB President Mario Draghi without alienating the Bundesbank, Germany’s influential central bank.
jlne.ws/Uh9Qrv

Regulatory

SEC crackdown turns spotlight on personal account trading
Harriet Agnew – Financial News
Personal account trading, the practice by which managers invest their own money, is coming under more scrutiny as hedge funds face increased regulatory oversight. As part of the Dodd-Frank financial reforms Act, all US hedge funds with more than $150m in assets under management are required to register with the US Securities and Exchange Commission.
jlne.ws/Uh9NMw

ECB to Set Up Repo Database as EU Moves to Rein in Shadow Banks
Bloomberg
The European Central Bank plans to boost oversight of trading in repurchase agreements by setting up a transactions database amid a push by regulators to rein in so-called shadow banking, a European Union document shows.
jlne.ws/Uh9Qrw

Global Regulators Weigh Lending-Rate Overhaul Amid Libor Scandal
Bloomberg
Global regulators and central bankers debated tougher oversight of interbank lending rates in the wake of the scandal engulfing Libor, according to an EU official.
jlne.ws/Uh9Qrz

FSA Gets SMARTS For Compliance from NASDAQ OMX
Forbes
At least one market segment isn’t complaining about regulation — software vendors. Providers of compliance applications are happy to see increased pressure from exchanges and regulatory authorities because it helps them increase sales. And while many technology acquisitions for trading or customer management systems can be postponed indefinitely, regulators often set deadlines.
jlne.ws/Uh9O2S

Pershing Finds Many Broker Dealers Still Mired in Manual Compliance Processes
Albridge Solutions, Inc., an affiliate of Pershing LLC, a BNY Mellon company, today released an update to its 2010 white paper, “Broker Dealer Sales Practices Oversight: Secrets of Their Success.” The new findings for 2012, which come from in-depth surveys with 53 broker dealer firms, show that compliance continues to be a major challenge for broker dealers.
jlne.ws/Uh9QrA

[ASIC] Guidance on hedge fund disclosure
jlne.ws/Uh9O2X

[ASIC] Report on early termination fees for residential loans entered into before 1 July 2011
jlne.ws/Uh9QrG

ASIC consults on the constitutions of registered managed investment schemes
jlne.ws/Uh9QrI

[Japan] FSA publishes Weekly Review No.12
jlne.ws/Uh9QHZ

Japan’s Financial Services Agency: Publication Of The English Version Of The Points And Composition Of Basic Policy For Financial Inspections In Program Year 2012
jlne.ws/Uh9O34

Exchanges & Trading Facilities

ASX Dark Pool Trades at Record as Bourse Seeks More Rules
Bloomberg
Centre Point, the dark pool owned by ASX Ltd. , reported record trading in August, with A$2.7 billion worth of shares changing hands even as Australia’s main bourse operator sought greater regulation.
jlne.ws/Uh9QI3

NYSE Euronext Scores Higher in Dow Jones Sustainability Index
NYSE Euronext today announced that it has been named to the Dow Jones Sustainability North America Index for the third consecutive year, and that its overall score again rose year-over-year.
jlne.ws/PL1DgY

Direct Edge Trading Notice #12-40: SIFMA Industry-Wide Business Continuity Test on Saturday, October 27, 2012
Direct Edge will participate in the annual SIFMA Industry-Wide Business Continuity Test on Saturday, October 27, 2012. Both EDGA Exchange Inc. (EDGA) and EDGX Exchange Inc. (EDGX) will be available for testing. We encourage all members to register and participate in this test.
jlne.ws/Uh9Ojl

NZX New Chief Financial Officer Appointment
NZX is pleased to announce the appointment of Bevan Miller as Chief Financial Officer, effective December 10, 2012
jlne.ws/Uh9QI8

Toronto Stock Exchange And TSX Venture Exchange Launch Online Training On CoursePark
Toronto Stock Exchange and TSX Venture Exchange today announced the launch of a new online training portal for issuers and other stakeholders through CoursePark, a cloud-based learning management solution developed by Bluedrop.
jlne.ws/Uh9Ojm

BM&FBOVESPA Registers Record 1,500,477 Stock Market Trades
jlne.ws/Uh9QIf

[CBOE] Location of Expected Opening Price Information for S&P 500 Index (SPX) Options on Volatility Index Product Settlement Days
jlne.ws/Uh9QYs

[CBOE] Flu Shots
jlne.ws/Uh9QYu

The London Stock Exchange Welcomes Eland Oil & Gas PLC To AIM
jlne.ws/Uh9QYy

Hedge Funds & Managed Futures

Measuring Hedge-Fund Manager Einhorn’s Sway Over Investors
JULIET CHUNG, JOE LIGHT AND TOM MCGINTY – WSJ.com
I’ve got a couple questions for you, hedge-fund manager David Einhorn told Herbalife Ltd. executives in a May conference call for analysts and investors, before prodding them for five minutes about sales practices at the nutritional-supplement company. By the time Mr. Einhorn said, “Thanks so much, guys,” Herbalife’s highflying shares were down 8.8%—and on their way to a one-day slide of 20% that erased $1.6 billion of the stock-market value in the Los Angeles company.
jlne.ws/Uh9Ojw

EU Council proposes trading tape tender
Michelle Price – Financial News
The Cypriot presidency of the Council of the European Union has proposed putting the creation of a trading tape out to tender, in the latest attempt to end a five-year industry spat over how European trading data is reported and aggregated.
jlne.ws/Uh9QYB

Analysis: Fidelity’s Abby Johnson faces challenges on many fronts
Reuters via Yahoo! News
As Abigail Johnson takes control of Fidelity Investments’ most important businesses, she will have to deal with some of the biggest threats to the fund group’s franchise and profitability in its 66-year history.
jlne.ws/Uh9OzP

Success of Crowdfunding Puts Pressure on Entrepreneurs – NYTimes.com
JENNA WORTHAM
An effort to build a sleek aluminum charging dock for the iPhone generated fervor online when it was announced last December. The project’s creators raised close to $1.5 million through Kickstarter, a crowdfunding Web site, and promised to start shipping their Elevation Dock in April to those who had backed the project. But last week Apple announced a redesigned iPhone that is not compatible with the dock — and because of manufacturing delays, some of the project’s original backers were still waiting to receive theirs.
jlne.ws/Uh9QYI

Recession 2013: Here’s What Jim Rogers is Doing
Resource Investor
If legendary investor Jim Rogers is right, not only is Recession 2013 unavoidable, it’s going to be a doozy.”Be very worried about 2013 and be very worried about 2014, because that’s when the next slowdown comes,” Rogers said recently.
jlne.ws/Uh9QYL

220 US Mortgage Banks Connect On Thomson Reuters Eikon
Thomson Reuters today announced that over 220 US mortgage banks have joined the Thomson Reuters Eikon community to access and trade the US secondary mortgage market.
jlne.ws/Uh9OzV

Boerse Stuttgart Bondm Segment For Medium-Sized Enterprises – getgoods.de AG Issues Bond In Bondm Segment
jlne.ws/Uh9OzZ

Banks & Brokers

Knight Capital Group Releases August 2012 Volume Statistics
Knight Capital Group, Inc. today released U.S. equity Market Making, Knight Direct equity and Knight Hotspot FX foreign exchange volumes at www.knight.com/ourfirm/volumestats.asp for the month of August 2012.
jlne.ws/Uh9OA0

Standard Bank Argentina Stake Sale to China’s ICBC Delayed
Bloomberg
Standard Bank Group Ltd., which expected to close the sale of a stake in its Argentine unit to Industrial & Commercial Bank of China Ltd. by June, said the deal may not conclude before year’s-end on regulatory hurdles.
jlne.ws/Uh9Rf8

Private banks work wonders to lure the super-rich
Reuters via Yahoo! Finance
What do you get the client who has everything? An evening at a sleep school to get tips on how to beat insomnia? A chance to play cricket with former England star Andrew Flintoff? Advice on finding the right school? These are just some of the services offered by Barclays in its “Little Book of Wonders,” underscoring the lengths to which the bank is prepared to go to win the custom of the super-wealthy at a time when its traditional businesses are struggling with weak economies and tougher regulators.
jlne.ws/Uh9Rf9

Fannie Mae Didn’t Overpay BofA for Servicing Rights, Audit Finds
Bloomberg
Fannie Mae didn’t give Bank of America Corp. special consideration when it agreed to pay the lender more than $500 million to transfer the servicing of 384,000 high-risk mortgages to firms more likely to prevent their foreclosure, a U.S. auditor said.
jlne.ws/Uh9OQu

Elliott Faults Lehman Brokerage’s Navigator Sale Plan
Bloomberg
Elliott Management Corp. stepped up pressure on defunct brokerage Lehman Brothers Inc., faulting a plan to sell a major asset to billionaire Wilbur Ross for what the hedge fund called an “artificially low” price.
jlne.ws/Uh9OQv

JPMorgan Sued by Lehman Over $2.2 Billion Derivatives Claims
Bloomberg
JPMorgan Chase & Co. , fighting over $6.3 billion it says Lehman Brothers Holdings Inc. owes it, was sued by the defunct investment bank as it seeks to reject $2.2 billion in derivatives obligations.
jlne.ws/Uh9Rfh

Deutsche Bank names COO of new wealth management unit
Reuters via Yahoo! News
FRANKFURT – Deutsche Bank said Jon Eilbeck was to be chief operating officer of its recently launched asset and wealth management business which has 900 billion euros investments under its control.
jlne.ws/Uh9OQw

Deutsche Cuts Mideast IB Team
Zacks via Yahoo! Finance
Deutsche Bank AG is trimming its Dubai workforce in the investment baking section, according to a Reuters report. This involves a number of senior level job cuts.
jlne.ws/OamNGN

ING U.S. Announces Expanded Roles for Executive Team
ING U.S., Inc., the holding company for ING U.S.’s core Retirement, Investment Management and Insurance businesses, announced today that it has expanded the roles and responsibilities for some members of its executive team.
jlne.ws/OamNGT

Court says Merrill must pay two former brokers $10 million
Reuters via Yahoo! News
A U.S. district court confirmed on Monday that Bank of America Corp’s Merrill Lynch must pay $10.2 million to two former brokers for unpaid deferred compensation, denying the firm’s petition to vacate the award.
jlne.ws/OamOe0

HSBC Said to Hire Michael Regan to Head US Credit Trading Group
Bloomberg
HSBC Holdings Plc hired Michael Regan from Royal Bank of Scotland Group Plc to head its U.S. credit trading group, according to a person with direct knowledge of the move.
jlne.ws/OamNGW

Morgan Stanley Declares A Regular Quarterly Dividend on Preferred Stock
jlne.ws/OamOuk

Clearing & Settlement

BofA Merrill strengthens clearing controls
Michelle Price – Financial News
Bank of America Merrill Lynch has strengthened the risk management controls within its European cash equities clearing business, as new regulations push risk oversight up the agenda at providers of post-trade services. The bank has implemented a product provided by Nasdaq OMX subsidiary FTEN within its general clearing member business, which will allow the bank to better monitor its aggregate intra-day risk profile, Nasdaq OMX said this morning.
jlne.ws/OamNH1

Monte Titoli Launches ‘X-COM’, New Service For Tri-Party Collateral Management
London Stock Exchange Group today announces that Monte Titoli has launched ‘X-COM’, its tri-party collateral management service*. The new service will allow banks’ treasury departments and operations departments to manage their investment strategies and financing more efficiently.
jlne.ws/OamQCr

CME Group: September 2012 Final Foreign Currency Settlement Prices
jlne.ws/OamQCu

Indexes & Products

The Dow Jones Credit Suisse Hedge Fund Index Finished Up 0.84% in August
jlne.ws/OamQCx

Global ETFs Snap Win Streak As QE3 Euphoria Wanes
IBD
Global exchange traded funds broke a four-day winning streak Monday as the U.S. and foreign markets pulled back from overbought conditions and the Federal Reserve’s quantitative easing-induced euphoria waned.
jlne.ws/OamQCy

Contrarian ETF managers find ways to outperform
Market Watch
Contrarian managers of exchange-traded fund portfolios prepackaged for advisers are proving their value this year, handily beating returns of broader managed account programs steeped in everything from hedge funds to private equity.
jlne.ws/OamQCD

ALPS, Goldman Sachs to Partner on ETFs
ETF Trends via Yahoo! Finance
ALPS, an exchange traded fund service provider, is teaming up with Goldman Sachs to create new exchange traded fund products.
jlne.ws/OamQSV

STOXX Expands Global Index Family With The Launch Of Over 1,200 Indices
jlne.ws/OamQSY

Singapore Mid Cap Index makes new 2012 high
jlne.ws/OamOKS

S&P Dow Jones Indices Announces Changes To The S&P/TSX Canadian Indices – A Deletion From S&P/TSX Venture Indices
jlne.ws/OamQT1

Semi-Annual Changes To The NASDAQ Clean Edge Green Energy Index
jlne.ws/OamQT4

Quarterly Changes To The NASDAQ Q-50 Index
jlne.ws/OamQT9

Europe’s Exchanges Show Strong Performance In August – Listed Exchanges Remain Steady With A 1.1 Per Cent Increase In The FTSE Mondo Visione Exchanges Index
jlne.ws/OamQTa

One Company To Be Excluded From FTSE IDFC India Infrastructure 30 Index – Following 2012 Semi-Annual Review
jlne.ws/OamR9r

FTSE4Good Extends Supply Chain Labour Criteria And Completes September Semi-Annual Review – Index Review Sees 21 New Additions While 7 Companies Exit The Index
jlne.ws/OamR9u

Technology

Banque Internationale à Luxembourg (BIL) Selects Numerix CrossAsset for Model Validation
Numerix (www.numerix.com), the leading provider of cross-asset analytics for derivatives valuations and risk management today announced that Banque Internationale à Luxembourg (BIL), a pioneer in the Luxembourg financial industry has selected the Numerix CrossAsset analytics platform to support its model validation and model comparison processes.
jlne.ws/OamP1t

International Securities Exchange Joins IPC’s Connexus Financial Extranet
IPC Systems, Inc ., a leading provider of voice and electronic trading communications solutions to the world’s top financial services firms and global enterprises, today announced that the International Securities Exchange (ISE), operator of a leading U.S. options exchange, has joined IPC’s Connexus Financial Extranet service.
jlne.ws/OamP1B

TMX Atrium To Offer Unrivalled Access To Canadian Market Data Feeds From Interxion’s Data Centres
jlne.ws/OamPhT

Enforcement

Kweku Adoboli, Ex-UBS Trader, Is Accused of Brazen Gambling at Fraud Trial
MARK SCOTT – NYTimes.com
Fictitious trading and brazen gambling by a single individual could have brought down the Swiss financial giant UBS, a British prosecutor said on Friday at the trial of a former bank employee accused of causing a multibillion-dollar trading loss.
jlne.ws/OamR9I

SEC Charges Former Systemax Director in Compensation Scheme
The Securities and Exchange Commission today charged a former director at Port Washington, N.Y.-based consumer electronics retailer Systemax Inc. for fraudulently reaping hundreds of thousands of dollars in undisclosed compensation over a five-year period.
jlne.ws/OamPi4

BCSC: Securities regulator alleges illegal distributions, fraud, and breach of an order
The executive director of the British Columbia Securities Commission has issued a notice of hearing alleging that Jeffrey Karl Wiegel and Michael Jerome Knight, both from B.C., and four real estate development companies illegally traded and distributed securities
jlne.ws/OamRq9

New Zealand’s Financial Markets Authority: Home detention for National Finance director
The former National Finance director Carol Braithwaite has today been sentenced to ten months home detention and 300 hours community work, in a prosecution taken by the Financial Markets Authority.
jlne.ws/OamPyq

Dubai Financial Services Authority: Arqaam and Ernst & Young Sanctioned Over Accounting and Audit Standards
The Financial Markets Tribunal (FMT), an independent tribunal of the Dubai Financial Services Authority (DFSA), today made orders in respect of Arqaam Capital Limited (Arqaam) and its auditor, Ernst & Young (E&Y). The orders were made with the consent of both Arqaam and E&Y.
jlne.ws/OamRGu

Environmental & Energy

GOP to renew attack on climate regulations this week
Business Green
Republican politicians are this week expected to step up their attacks on what they see as President Obama’s “war” on coal as the House of Representatives prepares to vote on a series of bills.
jlne.ws/S4iZWO

UK helps China map out low-carbon future
Business Green
A UK government delegation will this week travel to China to help the country and others replicate an online tool praised for furthering the debate on climate change and energy policy.
jlne.ws/RlBYrC

EU Backs German Plan for China Talks on Solar Spat, Merkel Says
Bloomberg
The European Union, the 27-nation bloc locked in a trade dispute with China over solar-panel sales, backed a call from German Chancellor Angela Merkel for talks to resolve the impasse.
jlne.ws/QxrrL8

Asia-Pacific

Foreign Firms Line Up to List in China
Wall Street Journal Blogs
Long-delayed plans to let foreign companies list their stocks in China could move ahead in 2013. Much of the technical work on a listing venue has been finished, and the naming of new leadership is expected to lead to a broad range of policy initiatives.
jlne.ws/OamRGy

Banks may retreat from Asia swap markets as regulation bites
Reuters via Yahoo! Finance
Major Western banks may have to scale back or even withdraw from some of Asia’s developing financial derivative markets due to regulatory hurdles and rising costs.
jlne.ws/OamRGz

Osaka Securities Exchange: Disciplinary Action On Transaction Participant: Takagi Securities Co., Ltd.
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Thai Bourse Attracts China Funds On First Roadshow In Shanghai
The Stock Exchange of Thailand (SET) and Maybank Kim Eng Securities (Thailand) pcl today organized the roadshow “Thailand Corporate Day” in Shanghai for the first time to highlight the strength of Thailand’s listed companies and potential of the Thai capital market, gaining interest from more than 40 China-based securities firms and asset management companies which the fund firms have combined assets under management of over USD 150 billion.
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Osaka Securities Exchange: Derivatives Trading After The Launch Of Nighttime Trading – Five Years Have Passed Since The Launch
jlne.ws/OamPOR

Dalian Commodity Exchange: Notice On the Trading Of New Contracts
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Hong Kong’s Securities And Futures Commission’s Legal Proceedings On Alleged Insider Dealing In Schramm Shares
jlne.ws/OamPOW

HKEx: First Day Trading Of RMB Currency Futures
Turnover of Hong Kong Exchanges and Clearing Limited’s (HKEx) RMB Currency Futures, the world’s first exchange-traded deliverable RMB futures, was 415 contracts on the futures’ first day of trading today.
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HKEx Announces Temporary Holiday Risk Management Arrangements
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HKFE Announces Revised Margins For HKEx Futures
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Frontier Markets

Myanmar to delay foreign investment law
Gwen Robinson in Yangon – FT.com
Myanmar is to delay the implementation of controversial foreign investment legislation passed this month, but will step up reforms in areas including the financial sector and land use and will streamline government structures.
jlne.ws/OamRWZ

Futures trading in power to begin as turf war ends
Power Engineering
Futures trading in electricity based on actual delivery is set to commence soon, with the Forward Markets Commission (FMC) agreeing to keep Power Exchange of India and India Energy Exchange out of its regulatory control. Futures trading, analysts reckon, would help reduce the volatility in the short-term power market by adding to the depth of the market.
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