John Lothian Newsletter

May 25, 2012: Some frayed nerves as USDA grains data goes ‘live’; Big European funds dump euro assets; CFTC’s Gensler on JP Morgan: Firms Have ‘Right To Make A Bad Decision

2012-05-25T07:54:53Z

Grain traders had to move faster today after the USDA report, given the expanded trading hours; some did fine, some not so much. Big funds in and focused on Europe are dumping assets and positions denominated in the euro, given the uncertainty spreading through the eurozone. CFTC’s Gary Gensler points out that trading firms are not prohibited by regulation from making bad market calls. The news channels are thick with stories from the eurozone today on the state of both the currency and the union; and for those with less of a European focus, there’s plenty of news about JPMorgan, the size of the recent loss, and more importantly the size of the risk that was being taken.

First Read

CME Group Announces Five-for-One Stock Split
CME Group, the world’s leading and most diverse derivatives marketplace, today declared a five-for-one split of its common stock, in the form of a 400 percent stock dividend. The dividend will be paid on July 20, 2012, to shareholders of record on July 10, 2012.
http://jlne.ws/JxEJEd

**** This is a long time in the coming. While many people will tell you stock splits don’t work, I hate when people make broad all encompassing generalizations. There are always exceptions. This is one where it is a positive thing. One of the reasons exchange stocks were successful in the pre-financial crisis era is that their prices allowed more people to own a piece of the exchange. No longer did you have to buy a million dollar membership. This could have the same benefit for stock traders and investors wanting to own the CME Group.

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CME Group Opens its First Futures Contract on East European Crop
By Matthew Leising, Anastasia Ustinova and Tony Dreibus – Bloomberg
CME Group Inc.’s decision to spend a year-and-a-half developing its first futures contract on an Eastern European crop began with a newspaper. Leo Melamed couldn’t believe it when he read that Vladimir Putin wished there was a way to insure a wheat harvest after Russia’s disastrous 2010 drought.
http://jlne.ws/JxEHMB

**** The things to watch will be convergence to the delivery points, and all the politics. If you think commodity prices are an issue in the US, you should check out Eastern Europe.

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Alacra Releases the Periodic Table of Bank Regulation and Compliance
PRWeb via Yahoo! News
Alacra, Inc., a leading provider of business information-based solutions for the financial and professional services industries, today announced the release of “the Periodic Table of Bank Regulation and Compliance”.
http://jlne.ws/JxEHfE

**** Don’t mix the elements, you won’t like the reaction.

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Short Sellers Find Friends in Banks
By TOM LAURICELLA, JENNY STRASBURG and JONATHAN CHENG – WSJ
As traders at Morgan Stanley were frantically trying to shore up Facebook Inc.’s share price following the company’s initial public offering, other managers on the deal were helping short sellers bet that the newly minted stock would fall.
http://jlne.ws/JxEHfM

**** Finding a friend anywhere on Wall Street is an accomplishment. I always say, if you want a friend, get a dog.

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Greece’s Brain Drain Has Begun
BusinessWeek
By the end of 2011, Yanis Varoufakis was a celebrity. The director of the Ph.D. program in economics at the University of Athens, Varoufakis had been arguing for two years that Greece was insolvent and the country should default while staying in the euro region.
http://jlne.ws/JxEHfQ

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Goldman Sachs to start tweeting Thursday
Market Watch
Goldman Sachs Group Inc., which has a reputation for being publicity-shy, has set up an official account with micro-blogging site Twitter and the investment bank is expected to start tweeting later Thursday. The bank is holding its annual shareholder meeting in Jersey City on Thursday. Its Twitter handle is @GoldmanSachs.
http://jlne.ws/JxEHMT

**** This should be interesting.

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Morgan Stanley Is Holding A Firm-Wide Conference Call To Blame The Facebook IPO Scandal On… Me (!?)
By Henry Blodget | Business Insider
A source close to Morgan Stanley tells me the firm is holding a firm-wide conference call at 4PM New York time today to discuss the firm’s role in the burgeoning Facebook IPO scandal.
http://jlne.ws/JxEHw9

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Phillip Securities Acquires TOCOM Broker Membership
The Tokyo Commodity Exchange (TOCOM), Japan’s largest commodity futures exchange, announced that Phillip Securities Japan, a Japanese subsidiary of Phillip Capital, a major Singapore based financial institution, acquired Broker Membership on May 24, 2012. Phillip Securities Japan is entitled to trade and clear for its global customers in the precious metals, oil and rubber markets. The total number of TOCOM members is now 84 (including 21 Broker Members).
http://jlne.ws/JxEOrF

**** The latest deal from the company across the hall from John Lothian News’s 30 Jack offices.

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Last tweet for Derwent’s Absolute Return
By James Mackintosh, Investment Editor
The only dedicated “Twitter” hedge fund has shut down after deciding to offer its social media indicators to day traders instead. Derwent Capital Markets’ Absolute Return fund was quietly liquidated just a month after starting up last year. Paul Hawtin, chief executive and founder of Derwent Capital, said that one of its largest investors suggested taking the trading signals to private investors rather than trading on them directly.
http://jlne.ws/JxEHwd

***JM: This is not really about Twitter. This is a different though similarly common bird song: “We plan to use [a recently created or popular thing] as a way to make money, and we will all be rich.” Fill in “artificial intelligence,” “expert systems,” “candlestick charts”, “social media” – it’s all the same. Never hurts to experiment, of course; but like with any bird call, it gets a little old around the thousandth time you hear it through the window.

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Cooperative banking has arrived
Ellen Brown, Alternet
Alternative to the bad corporate giants are growing in the U.S. and abroad — and they could transform our economy.
http://jlne.ws/JxEHwj

JLN Interest Rates

FDIC: Bank profits at highest level since 2007
MarketWatch
Bank profits rose in the first quarter of 2012, reaching their highest quarterly levels since the second quarter of 2007, according to the Federal Deposit Insurance Corp.’s quarterly banking report, released Thursday. However, total loan and lease balances on the books of banks declined by $56 billion in the quarter, a situation that FDIC Chairman Martin Gruenberg said was “disappointing” after the industry saw three quarters of growth last year.
http://jlne.ws/LjuenB

Regulators Designate Swaps Clearinghouses Systemic
Bloomberg
A panel of U.S. regulators voted to designate swaps clearinghouses as systemically important, a step that would put them under heightened supervision.
http://jlne.ws/MGD2Ja

European Economic Outlook Dims Amid Impasse
The New York Times
http://jlne.ws/MKuVLz

Ponzi Scheme Mastermind Sentenced to 50 Years in Prison
Keith Franklin Simmons, 47, of West Jefferson, North Carolina, was sentenced today to 50 years in prison in connection with a $40 million Ponzi scheme he operated, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Robert J. Conrad, Jr. also ordered the defendant to serve three years under court supervision following his prison term and to pay $35,331,632 in restitution.
http://jlne.ws/KKS6kT

MarketsWiki

MarketsWiki Page of the Day
Joseph A. Walker
http://jlne.ws/MveJeJ

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MarketsWiki Recent Updates

People
Steffen Köhler; Joseph A. Walker

Companies, Organizations and Groups
European Energy Exchange AG; NYSE Euronext; North American Derivatives Exchange (Nadex)

Miscellaneous
Clearing house; Sponsor Page

Statistics
24,056,594 pages viewed, 6,871 articles, 141,267 edits
MarketsWiki Statistics

Lead Stories

Some frayed nerves as USDA grains data goes ‘live’
By Sam Nelson – Reuters
Some CBOT grain traders suffered frayed nerves on Thursday as they got their first taste of trading without a two-hour cushion between the release of price-sensitive U.S. government data and markets being open under the new 21-hour trading cycle.
http://jlne.ws/JxEI3l

Big European funds dump euro assets
By David Oakley and Alice Ross in London – Financial Times
Some of Europe’s biggest fund managers have confirmed they are dumping euro assets amid rising fears over a possible Greek exit from the eurozone and single currency turmoil.
http://jlne.ws/JxEIjG

CFTC’s Gensler on JP Morgan: Firms Have ‘Right To Make A Bad Decision -CNBC
DOW JONES NEWSWIRES
Companies have the “right to make a bad decision,” Commodity Futures Trading Commission Chairman Gary Gensler told CNBC on Thursday when asked for his response to J.P. Morgan Chase & Co.’s (JPM) recent $2 billion trading loss.
http://jlne.ws/JxEKrP

JP Morgan Had $101.3 Billion One-Sided Exposure, Fed Data Show
By Katy Burne Of DOW JONES NEWSWIRES
J.P. Morgan Chase & Co. (JPM) sold $101.3 billion more long-dated derivatives insuring against defaults by investment-grade companies as of March 31 than it had bought back, according to quarterly data from the Federal Reserve. The amount of insurance-like credit-default swaps the bank sold was double its $50.2 billion net position at the end of December and more than four times its $23.6 billion net position as of Sept. 30, 2011.
http://jlne.ws/JxEKrU

Morgan Stanley adjusting some Facebook trades
Reuters via Yahoo! News
Morgan Stanley will adjust thousands of trades to ensure outstanding limit orders to sell will be filled at no more than $42.99 a share for Facebook stock from last Friday’s botched initial public offering, the firm told its brokers on Thursday, according to several who listened to the call.
http://jlne.ws/JxEIA8

Critics Say Dimon Should Quit The New York Fed
Forbes
In the wake of the $2 billion-plus trading loss at , revealed earlier this month, a debate has been heating up about whether JPMorgan’s chief, James Dimon, should step down from the Federal Reserve’s Board of Governors. Today, one of Dimon’s critics, former Monetary Fund chief Simon Johnson, started a petition on Change.org, calling for …
http://jlne.ws/JxENnq

Bankers Belong On Fed Boards: KC Fed Chief
FOX Business
Bankers should be allowed to serve on the board of directors of the dozen Federal Reserve district banks because they provide critical in-depth information about current economic conditions, said Esther George, the president of the Kansas City Fed, on Thursday.
http://jlne.ws/JxENnt

Bankia to request more state aid
By Miles Johnson in Madrid – Financial Times
Shares in Bankia were suspended on Friday morning before a board meeting at the part-nationalised bank to finalise the amount it will request in aid from the Spanish government.
http://jlne.ws/JxEIAb

EU running out of time as Greece nears the exit
Associated Press via Yahoo! News
European leaders insist they want to keep Greece in the eurozone, but are putting off any agreement on how they hope to accomplish that. Greece says it, too, wants to stay in the eurozone, but until after elections it’s uncertain whether it can implement the austerity that Europe has set as a condition for doing so.
http://jlne.ws/JxEKs1

Beware hidden costs as banks eye ‘Grexit’
By Gillian Tett – Financial Times
Earlier this month, I asked the leaders of a group of US-based companies what – if anything – they were doing to prepare for “Grexit”, or a possible exit of Greece from the eurozone. The responses from the manufacturers were rather vague.
http://jlne.ws/JxEKs2

David Malpass: Greece’s False Austerity
BY DAVID MALPASS – WSJ
Currency traders are cheering for Greece to exit the euro. That would create currency volatility and, if other countries exit, mega-profits for traders. The cost would be much lower living standards and even bigger government—including the power to print money—for those exiting the euro.
http://jlne.ws/JxEKIi

In Spain, Bank Transfers Reflect Broader Fears
By LANDON THOMAS Jr. and RAPHAEL MINDER – NY Times
Angel de la Pena, a Spanish government worker, is seriously considering the once unthinkable: converting some of his savings from euros to British pounds.
http://jlne.ws/JxEKIp

SEC unlikely to file charges in Lehman case: memo
Reuters via Yahoo! Finance
The staff of the U.S. Securities and Exchange Commission has concluded its investigation into Lehman Brothers Holdings and will not likely recommend charges, according to the excerpt of a memo sent to Reuters.
http://jlne.ws/JxEKIv

Regulatory

CFTC Staff to Host a Public Roundtable to Discuss the Proposed Volcker Rule
The Commodity Futures Trading Commission (CFTC) today announced that staff will hold a public roundtable on Thursday, May 31, 2012, from 9:30 a.m. to 4:30 p.m., to discuss the proposed regulations to implement Section 619 (commonly known as the Volcker Rule) of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
http://jlne.ws/JxEIAn

Esma sets timetable for derivatives rules
By Philip Stafford – Financial Times
Brokers, exchanges, pension funds and clearing houses face a two-month deadline to offer their views on detailed proposals to toughen supervision of the derivatives market as European regulators race to meet a year-end deadline.
http://jlne.ws/JxEIAq

John Bates: The Rat Race to Regulate High Frequency Trading
The Huffington Post
While it is true that HFTs have a vested interest in keeping market abuse to a minimum, it is not yet clear that their liquidity has been healthy enough to withstand the pressure of incoming regulations.
http://jlne.ws/JxEIQI

European Financial Integration In Times Of Crisis – Speech By Peter Praet, Member Of The Executive Board Of The European Central Bank, At The ICMA Annual General Meeting And Conference 2012, Milan, 25 May 2012
http://jlne.ws/JxEIQN

ESMA Announces Vacancies For Two TA And One CA Posts
http://jlne.ws/JxEKYM

ESMA Finds High Level Of Consistency In EU National Regulators’ Practices For The Approval Of Investment Prospectuses
http://jlne.ws/JxEIQS

New appointment at the Autorité des marchés financiers
Julien RUDERMAN has been appointed Deputy Head of Division of the European and International Affairs Division, part of the Regulatory Policy and International Affairs Directorate, on the 3rd of May 2012.
http://jlne.ws/JxEIQT

FMA presents 2011 Annual Report23.05.2012
Supervisory activities further stepped up – gradual implementation of lessons learned from the financial crisis
http://jlne.ws/JxEKYZ

Swedish Financial Supervisory Authority – Finansinspektionen – Market Risks Management
http://jlne.ws/JxEKZ3

Swedish Financial Supervisory Authority – Finansinspektionen – Supervision Report 2012
http://jlne.ws/JxELfk

[ASIC] Get a sneak peek of the new national business names service
http://jlne.ws/JxEJ7r

ASIC welcomes remote community fee-free ATM transactions
http://jlne.ws/JxEJnH

BCSC publishes proposed recognition orders regarding Maple Group application
http://jlne.ws/JxELfr

Exchanges & Trading Facilities

China sharpens LME’s focus on Hong Kong exchange
By Susan Thomas and Melanie Burton – Reuters
A fast track into China could be the deciding factor in the race to win backing from shareholders in the London Metal Exchange, making Hong Kong Exchanges and Clearing’s bid enticing.
http://jlne.ws/JxEJnM

Deutsche Börse expands its European network
Deutsche Börse continues to expand its high-performance network. The company announced today that it will set up an additional access point to its global trading network in the Equinix ZH4 data centre in Zurich. This access should be ready for use in the third quarter. SIX Swiss Exchange already uses the Zurich data centre operated by Equinix as a co-location centre for its customers.
http://jlne.ws/JxELfx

NYSE Euronext to Acquire Corpedia Corporation
NYSE Euronext (NYX) announced today that it has entered into a definitive agreement to acquire Corpedia Corporation (Corpedia), a leading global provider of ethics and compliance e-learning and consultative services.
http://jlne.ws/JxELvQ

CME Group Inc. Declares Quarterly Dividend
CME Group, the world’s leading and most diverse derivatives marketplace, today declared a second-quarter dividend of $2.23 per share, payable June 25, 2012, to shareholders of record June 8, 2012.
http://jlne.ws/JxEJEi

IntercontinentalExchange Announces Record Brent Crude Option Volume
IntercontinentalExchange (NYSE: ICE), a leading operator of global regulated futures exchanges, clearing houses and over-the-counter (OTC) markets, reported record daily volume in ICE Brent Crude options of 78,508 contracts on May 24, 2012. The previous daily volume record was 63,494 on May 2, 2012.
http://jlne.ws/KfRS7J

Major US Shares Start Trading On Chile’s Main Stock Exchange
Dow Jones
Chilean investors will now be able to locally trade some of the heaviest weighted and most reknowned U.S. shares as 16 U.S. companies started trading on the Santiago Stock Exchange Thursday.
http://jlne.ws/JxELMv

TMX Group CEO Addresses the Canadian Venture Capital Association Annual Conference
http://jlne.ws/JxEJEp

[CBOE] Continuation of CFLEX 2.0 Rollout
http://jlne.ws/JxEJEs

[CBOE] Price Protection Level Updates and Order Price Reasonability Checks For Options on Facebook Inc. (FB)
http://jlne.ws/JR378m

NASDAQ Announces End-of-Month Open Short Interest Positions in NASDAQ Stocks as of Settlement Date May 15, 2012
http://jlne.ws/JxEJUM

Program Trading Averaged 30.3 Percent of NYSE Volume during May 14-18
http://jlne.ws/JxEM2S

NYSE Group Inc. Issues Short Interest Report
http://jlne.ws/JxEJUW

NYSE MKT Issues Short Interest Report
http://jlne.ws/JxEM35

New Zealand’s Financial Markets Authority Releases KiwiSaver Performance Fees Guidance Note
http://jlne.ws/JxEMjm

Cyprus Stock Exchange Monthly Bulletin – April 2012
http://jlne.ws/JxEMjp

Hedge Funds & Managed Futures

Junk-Bond Funds See $2.46Bln Outflow, Fourth-Largest In Lipper Records
By Katy Burne Of DOW JONES NEWSWIRES
High-yield mutual funds and exchange-traded funds saw a net outflow of $2.46 billion in the week ended Wednesday, according to Thomson Reuters-owned Lipper, the fourth-largest outflow from junk bond funds since the data provider’s records began in 1992 and the biggest withdrawal since early August.
http://jlne.ws/JxEMjs

Recent Junk-Bond ETF Outflows Were Offset By Shorts -UBS
By Katy Burne Of DOW JONES NEWSWIRES
Last week’s net $917 million outflow from junk-bond dedicated exchange-traded funds–their second weekly outflow this year–would have been bigger if not for traders who bet against the ETFs and had to cover their short positions, according to strategists at UBS.
http://jlne.ws/JxEMjy

[Video] Bloomberg Link Panel on Alternative Investments
Bloomberg
Olwyn Alexander, partner at PricewaterhouseCoopers LLP, Louis Gargour, chief investment officer and founding partner of LNG Capital LLP, and John Hydeskov, chief analyst at Danske Bank A/S, discuss the alternative investment environment in Ireland.
http://jlne.ws/JxEKbw

Hedge Fund Got Most South Carolina Fees While Lagging on Returns
Bloomberg
Mariner Investment Group LLC, a hedge fund founded by a former Bear Stearns Cos. fixed-income executive, charged South Carolina’s pension fund more than any other manager while delivering returns that trailed competitors.
http://jlne.ws/JxEMjC

Goldman Said to Plan Private REIT to Invest in Japan Properties
Bloomberg
Goldman Sachs Group Inc. (GS) plans to start a private real estate investment trust with as much as 50 billion yen ($628 million) that will invest in Japan ‘s property market, two people familiar with the situation said.
http://jlne.ws/JxEN6X

May Hedge Funds Performance Update: Red Is Bad
Zero Hedge
And it was shaping up to be such a good year. According to the latest just released HSBC hedge fund performance update, increasingly more funds are starting to lose it, certainly for the month, but increasingly more for the year.
http://jlne.ws/JxEN74

New Book Reveals The Cool Childhood Of Hedge Fund God David Tepper
Business Insider
CNBC’s Hedge Fund Specialist/ “Squawk Box” producer Maneet Ahuja’s book “The Alpha Masters” comes out at the end of this month and it’s definitely a must-read.
http://jlne.ws/JxEN75

Banks & Brokers

Moody’s downgrades Nordic banks
By Michael Stothard in Stockholm – Financial Times
Some of the largest and best capitalised banks in the Nordic region have been downgraded by Moody’s in a stark warning on how contagion from the eurozone crisis may affect even those areas perceived to be safe havens.
http://jlne.ws/JxEN78

JPMorgan Gave Risk Oversight to Museum Head Who Sat on AIG Board
Bloomberg
The three directors who oversee risk at JPMorgan Chase & Co. (JPM) include a museum head who sat on American International Group Inc.’s governance committee in 2008, the grandson of a billionaire and the chief executive officer of a company that makes flight controls and work boots.
http://jlne.ws/JxENnu

JP Morgan Private Bank’s Watered-Down Fiduciary Standard of Care
Edward Siedle – Forbes
Conventional wisdom is that there are two types of financial advisers – securities brokers and investment advisors – and that each is held to a different standard of care. Most investors consider the advice they receive from brokers and investment advisers to be similar, but according to experts there is a key difference between the standards applicable to each. Pick an adviser subject to the …
http://jlne.ws/JxENnx

DealBook: Citigroup Wins Fed Auction for Maiden Lane Bonds
New York Times
On Thursday, the Federal Reserve Board of New York announced that Citigroup had won an auction for $1.6 billion of assets, beating out six other financial firms for the bonds.
http://jlne.ws/JxENny

Goldman Sachs enjoys relatively calm shareholder meeting
New York Post
For once, the spotlight wasn’t on Goldman Sachs. The bank that Wall Street critics love to hate enjoyed a relatively calm shareholder meeting Thursday while two of its peers, Morgan Stanley and JPMorgan Chase, grappled with public-relations nightmares.
http://jlne.ws/JBFpgM

Citigroup Completes Sale Of 10.1% Equity Interest In Akbank
Dow Jones
Citigroup Inc. (C) said Friday it sold 404 million common shares in Turkish lender Akbank TAS, representing a 10.1% stake, for 5.24 Turkish lira per share.
http://jlne.ws/JxEMQo

UBS Sued in New York Over $331 Million in Losses on CDOs
Bloomberg
UBS AG (UBS) , Switzerland’s biggest bank, was sued for fraud in New York , accused of misleading investors in a group of collateralized debt obligations.
http://jlne.ws/JxEMQp

BGC Partners Files Historical Consolidated Financial Statements of Grubb & Ellis
http://jlne.ws/JxEMQq

Clearing & Settlement

DTCC Joins The 100,000 Jobs Mission In Pledge To Increase Hiring Of Veterans
http://jlne.ws/JxENnF

CME Group Clearing Advisory
REVISED HOLIDAY CLEARING SCHEDULE – MEMORIAL DAY, MAY 28, 2012
http://jlne.ws/Lo13yZ

CME Clearing – Performance Bonds / Margins
Performance Bond Requirements: Agriculture, Coal, Crude Oil, Ethanol, Freight, Metals, NGLs, and Refined Products Outrights – Effective Tuesday, May 29, 2012
http://jlne.ws/JxEPM4

Indexes & Products

Safe-Haven Currency ETFs Shine in Euro Crisis
ETF Trends via Yahoo! Finance
Currency exchange traded funds pegged to perceived safe havens such as the U.S. dollar and Japanese yen have rallied on fears Greece will leave the euro.
http://jlne.ws/JxEPM7

AdvisorShares Partners with Cousteau on Sustainable ETF
ETF Trends via Yahoo! Finance
AdvisorShares has partnered with environmental advocate Philippe Cousteau, Jr. to launch an actively managed exchange traded fund that focuses on sustainable investment themes, with a philanthropic objective.
http://jlne.ws/JxENE6

Now You Can Trade Black Sea Wheat
After Russia’s ruinous 2010 drought, Leo Melamed read a newspaper story that quoted Vladimir Putin saying he wished there had been a way to insure the wheat harvest. http://jlne.ws/MAxqgU

El Ezz Aldekhela Steel-Alexandria To Join Dow Jones EGX Egypt Titans 20 Index
http://jlne.ws/JxENEf

Viacom Inc. To Join The NASDAQ-100 Index Beginning May 30, 2012
http://jlne.ws/JxEPMj

STOXX Launches ESG Leaders Blue-Chip Indices And Becomes UNPRI Signatory
http://jlne.ws/JxEQ2G

ETF Fund Flows: GLD Adds $135.3 Million
http://jlne.ws/JxEQ2J

UBS Debuts Two Monthly Leveraged Dividend ETNs
http://jlne.ws/JxENUD

Technology

NYSE Euronext Opens U.S. Liquidity Center to Third-Party Service Providers
NYSE Euronext (NYX) today announced that its U.S. Liquidity Center in Mahwah, New Jersey has enhanced its data center community, managed by NYSE Technologies, by revising a number of policies aimed at reducing customer costs, increasing platform flexibility and broadening access to the facility. For the first time, the financial services vendor community now has the opportunity to acquire data center space and offer their services within NYSE Technologies’ state-of-the-art liquidity center.
http://jlne.ws/JxENUH

Enforcement

CFTC Charges Chicago-based Trader Bradley Schiller with $7.8 Million Commodity Fraud
The U.S. Commodity Futures Trading Commission (CFTC) today filed a complaint in the U.S. District Court for the Northern District of Illinois, charging Bradley Scott Schiller of Chicago, Ill., with solicitation fraud, misappropriating investors’ funds, and issuing false statements in connection with soliciting at least $7.8 million from at least six investors to trade commodity futures contracts in managed accounts.
http://jlne.ws/KlpuzF

SEC Charges Northern California Fund Manager in $60 Million Scheme
The Securities and Exchange Commission today charged an investment adviser in Scotts Valley, Calif., with running a $60 million investment fund like a Ponzi scheme and defrauding investors by touting imaginary trading profits instead of reporting the actual trading losses he incurred.
http://jlne.ws/JxEOb0

SEC Bars Former Staffer From Practice Before The Commission
http://jlne.ws/JxEOb5

SEC suspends trading of 7 non-compliant companies
By Melodie Warner – Market Watch
The U.S. Securities and Exchange Commission temporarily suspended trading of Indocan Resources Inc. IDCN -50.00% because of questions concerning the adequacy of the company’s publicly available information.
http://jlne.ws/JxEOb6

Ex-Lloyds security chief accused of fraud
By Caroline Binham, Legal Correspondent – Financial Times
The former head of fraud and security for digital banking at Lloyds Banking Group, which is 40 per cent-owned by the taxpayer, faces a criminal charge for allegedly claiming nearly 2.5m in expenses dishonestly.
http://jlne.ws/JxEObe

New Zealand’s Financial Markets Authority Welcomes Belgrave Finance Guilty Plea
http://jlne.ws/JxEQjl

Bursa Malaysia Reprimands, Fines And Orders To Strike Off Zackery Bin Aziz For Unlawful And Unethical Conduct
http://jlne.ws/JxEOry

Environmental & Energy

UN’s Ban Sees Industry Advancing Climate Treaty in Rio
Bloomberg
The United Nations will pursue partnerships with global industry leaders to help drive climate change negotiations in Rio de Janeiro next month as governments struggle to find common ground, Secretary General Ban Ki-moon said.
http://jlne.ws/K1IWTC

Bonn Talks Disappoint On Land-Based Offsets
Matt Leggett of Global Canopy Group on Ecosystem Marketplace
Progress at the Bonn UNFCCC Climate Conference has been frustratingly slow. One of the key goals for the conference was to lay the foundations for scaling up the finance needed for REDD+, and to secure short term additional finance commitments to support this transition in advance of COP18 in Doha. However, as the conference draws to a close, Parties are still struggling to agree on whether sources of private finance (e.g. market based approaches) can, or should, be used to supplement flows of public finance (e.g. non-market based approaches) to support REDD+ activities. While most interventions from Parties have supported pursuing a combination of market and non-market based approaches to fund REDD+, key parties such as India, Bolivia and others continue to disagree. Their argument is that any reliance on funds from markets (with most Parties equating this to carbon offset markets), will provide insecure and insufficient flows of funding for REDD+ between now and 2020.
http://jlne.ws/JqOuHM

Asia-Pacific

Asia Stocks to Watch: Tokyo Stock Exchange plans to woo global investors
Market Watch
The Tokyo Stock Exchange plans to tout the attractiveness of Japanese companies to overseas investors as part of efforts to increase its trading volumes, Managing Director Hironaga Miyama says.
http://jlne.ws/JxEOrC

SGX and UOB Bullion and Futures set up new Professional Traders Development Centre
Singapore Exchange (SGX) and UOB Bullion and Futures Limited (UOBBF) today announced that they are setting up a new Professional Traders Development Centre to grow and strengthen Singapore’s talent pool of professional futures traders.
http://jlne.ws/KDdvu4

Analysis: China’s new privatization plan faces push-back risk
Reuters via Yahoo! News
BEIJING (Reuters) – China’s new push to open state controlled industries may look bold after a decade of stuttering privatization progress, but Beijing faces stiff resistance from vested interests in its effort to extend its World Trade Organisation dividend.
http://jlne.ws/JxEOrI

Tokyo Grain Exchange: SPAN Parameters Effective From June 1, 2012 To June 15, 2012
http://jlne.ws/JxEOrN

Tokyo Grain Exchange: Revised SPAN Parameters For Rice Futures
http://jlne.ws/JxEQQg

Tokyo Grain Exchange: First Rice Agreed Early Delivery For The June 2012 Contract Month Concluded
http://jlne.ws/JxEOI4

Osaka Securities Exchange: Price Limits For Futures And Options Trading From June 1, 2012 To August 31, 2012
http://jlne.ws/JxEOI6

Hong Kong’s Securities And Futures Commission: Court Fixes Pre-Trial Review Date Of Market Manipulation Case
http://jlne.ws/JxEOIe

Frontier Markets

Asia private equity funds line up dollars for Myanmar
Reuters via Yahoo! Finance
Hong Kong’s Cube Capital and Marc Faber-backed Leopard Capital are among Asian private equity firms lining up nearly $500 million aimed at Myanmar, hoping to tap into its rich natural resources and fill its infrastructure void, as sanctions on the former pariah state are lifted.
http://jlne.ws/JxER6M

India Ink: India’s Faltering Economy Could Get Worse
New York Times
A bearish economist’s plea to Sonia Gandhi to allow economic reforms.
http://jlne.ws/JxER6P

In the Persian Gulf, Struggling to Adapt as Deals Dry Up
By SARA HAMDAN and STANLEY REED – NY Times
As a new wave of austerity has left many financial firms around the world struggling, their counterparts in the Persian Gulf region have too been forced to hunker down.
http://jlne.ws/JxER6W

What It Takes To Win In Emerging Markets
Forbes
Companies racing to capture their share of emerging markets’ booming growth find something unexpected: Along with unprecedented expansion, these markets are undergoing rapid changes that make the opportunities trickier to pursue.
http://jlne.ws/JxERnd

A Good Place To Gobble Up Some Retail Stocks? Turkey.
Forbes
Among young people, Turkey’s unemployment rate is considerably lower than many countries in Europe, including Spain, Greece, Ireland and Italy. Germany is the only country with a lower unemployment rate than Turkey. This low rate translates to a vibrant, young workforce with rising wealth.
http://jlne.ws/JxERnl

MCX Weekly Market Report: May 18, 2012 – May 24, 2012
http://jlne.ws/JxEOYN

Updated List Of Shariah-Compliant Securities By Securities Commission Malaysia’s Shariah Advisory Council
http://jlne.ws/JxEPf2

Futures for Kids Walk to Work raises £60,000 for 4 chidren’s charities

2012-05-24T13:28:37Z

From Futures for Kids:

London’s futures and options industry joined forces with the foreign exchange community last Friday in the 2nd annual35 mile plus Walk to Work on 4 routes to the City for 4 children’s charities raising in the process almost £60k.

The Futures For Kids Walk to Work 2012 raised funds for four children’s charities with a mix of local, regional and international coverage – Demelza House, Hope HIV, Everychild and Variety.

The inaugural 2011 Walk consisted of a single route but this year the event was greatly expanded with walkers starting out on 4 routes from Tunbridge Wells, Guildford, Tring and Billericay.

Almost 100 Futures for Kids supporters joined the effort including executives from brokerage houses, banks, proprietary trading firms and software vendors. They were boosted by a very strong contingent of senior management from London-based derivatives and stock exchanges, trade associations and specialist publications. Exchanges represented included Turquoise, Deutsche Boerse, Eurex, NYSE Liffe, Nasdaq OMX, Hong Kong Mercantile Exchange and Singapore Exchange.

The team, some striding gracefully, others limping, arrived triumphantly at Paternoster Square after the long day’s ‘yomp’ between 5 and 8 pm to celebrate their efforts with the beneficiary charities and support groups at a Finish Line party sponsored by Eurex, who also supported the checkpoints on the 4 routes, and to receive awards sponsored by ICAP-owned post-trade software company, Traiana.

A group of housewives from Surrey, known as the Haslemere Normans, triumphed in the team fund raising category having summoned up at last count well over £4k from their followers. Queen of fund raising in advance of the event was Profit and Loss magazine journalist, Alice Attwood, while Steve Barber of brokerage ADM raised most funds overall as an individual. The prize for most funds raised on the day was taken by Rob Brophy of futures prop shop OSTC, taking part in the Walk to Work for the second time, while the inaugural FFK County Cup for the route raising most money was proudly held aloft by the Kent Route Master Team at the Finish Line reception after a close tussle with Essex.

The Walk to Work should also do much to raise the profile of the caring side of the City. Total funds raised from the 2012 event so far are now approaching £60k and the rapidly growing numbers of participants would tend to imply that the event will become a mainstay of the City charity fund-raising calendar.

Needless to say participants are still accepting sponsorship funds. Those individuals and companies wishing to contribute can select their favourite futures and foreign exchange industry characters at http://www.justgiving.com/teams/ffkw2w2012

PBS Frontline: Six Billion Dollar Bet

2012-05-24T13:01:27Z

Watch Six Billion Dollar Bet on PBS. See more from FRONTLINE.

From PBS Frontline:

Jon Corzine, former head of Goldman Sachs and political power broker, took over MF Global in the spring of 2010 with oversize ambition and a passion for risk. But after a massive bet on European debt turned sour, the firm lay in ruins, with more than a billion dollars of customer funds missing. Six Billion Dollar Bet, our latest addition to Money, Power and Wall Street, examines how Corzine’s traders went around MF Global’s risk officers and how he swayed regulators in Washington to allow risky practices to continue.

May 24, 2012: CME, ICE Clearinghouses Designated Systemic by U.S. Panel; Oslo Bors to charge for excessive orders; Euro Zone Crisis Boils as Leaders Fail to Signal New Steps

2012-05-24T07:15:36Z

The clearinghouse operations for CME Group and IntercontinentalExchange are now said to be “systemically important” by regulators, bringing them closer to increased Dodd-Frank supervision. Oslo Bors takes action against quote stuffers, and announces penalties for placing too many orders without enough accompanying dealmaking. Eurozone leaders fail to conclusively identify a useful salvation plan in recent meetings, rekindling fears of a messy and painful resolution to the region’s financial woes.

First Read

New and Improved JLN; Redesigned Newsletter with New Categories
Good morning and welcome to the new and improved John Lothian Newsletter. Taking another step forward, we have redesigned JLN to be more easily readable for those accessing the newsletter from a variety of devices. While the newsletter is still designed first and foremost to be read on a computer, most mobile users should see a vast improvement in readability.

And we have changed the categories of the newsletter to make it easier to find the information you are looking for. The categories include: Lead Stories, Regulatory, Exchange and Trading Facilities, Hedge Funds and Managed Futures, Banks and Brokers, Clearing and Settlement, Indexes and Products, Technology, Enforcement, Environmental and Energy, Asia-Pacific, Frontier Markets and Miscellaneous. The top of the box section is now called “First Read.”

Additionally, Managing Editor Christine Nielsen and Senior Editor/Producer Sarah Rudolph have taken over the final pre-publishing editing from JLN Assistant Editor Jon Matte. Mr. Matte still produces the search results from Norway for us first thing in the morning, but Ms. Nielsen and Ms. Rudolph will be collaborating with me to get JLN finished and out to the Internet first thing in the morning in the U.S.

If you like this new redesign, please send me an email and tell me. If you don’t like the redesign, please send JJLCO Chief Marketing Officer Ryan Lothian an email.

~John J. Lothian

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London’s Futures And FX Communities Slog 35 Miles From Home Counties To City For Children’s Charities
The Futures For Kids Walk to Work 2012 raised funds for four children’s charities with a mix of local, regional and international coverage – Demelza House, Hope HIV, Everychild and Variety. The inaugural 2011 Walk consisted of a single route but this year the event was greatly expanded with walkers starting out on 4 routes from Tunbridge Wells, Guildford, Tring and Billericay.
http://jlne.ws/LsSiqU

**** Congratulations to my friends in London on their valuable journey.

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CME Group Inc. Announces Preliminary Results from its 2012 Annual Meeting of Shareholders
CME Group Inc. today announced the preliminary shareholder voting results from its 2012 annual meeting. At the meeting, shareholders:
* elected Dennis H. Chookaszian, Larry G. Gerdes, Daniel R. Glickman, James E. Oliff, Edemir Pinto, Alex J. Pollock and William R. Shepard each for a two-year term expiring in 2014;
* ratified the appointment of Ernst & Young as the company’s independent registered public accounting firm for 2012;
* approved on an advisory basis the compensation of the company’s named executive officers;
* approved the Fourth Amended and Restated Certificate of Incorporation of CME Group Inc. to eliminate the classification of the company’s board as of the 2014 annual meeting;
* approved the CME Group Inc. Amended and Restated Omnibus Stock Plan; and
* approved the CME Group Inc. Amended and Restated Employee Stock Purchase Plan.
http://jlne.ws/LsSgPV

**** Jeff Bernacchi was also re-elected to the board by the B-1 stock holders.

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SunGard Named Regulatory Advisory Firm of the Year by Energy Risk
SunGard‘s energy consulting services practice has been named “Regulatory Advisory Firm of the Year” by Energy Risk Magazine.
http://jlne.ws/LsSiHo

**** Did you know Sungard was spun off from Sun Oil Company in 1982?

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Let Data, Not Politics, Guide Regulation
Tobias J. Moskowitz – Bloomberg
Several years after the global financial crisis, the fierce debate over regulation continues to be driven by strong beliefs — largely uninformed ones — rather than hard facts. Some believe more regulation is necessary, others that it would cause the downfall of our markets. No one, however, seems to be talking about the evidence for or against regulation. This is partly because very little evidence exists on the effects of regulation or its efficacy.
http://jlne.ws/LsSjLx

**** Why let facts and data get in the way of your conclusions?

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JPMorgan shows fighting complexity is futile
By Sallie Krawcheck – Financial Times
There has been much ink spilled on the $2bn – and counting – JPMorgan trading loss: what happened, how it happened, who made the trade, who agreed the trade, whether the Volcker rule would have prevented the loss and whether such a loss should even be of concern given the size of the bank’s balance sheet. Much of this commentary misses a crucial point: the size and risk of the trading position was identified to the management team by an outside party (the press) and once highlighted, it took weeks for them to understand and quantify the loss. This occurred despite JPMorgan being run by one of the financial sector’s savviest management teams.
http://jlne.ws/LsSk1Q

**** They did not and don’t understand the risk they have. Good firms can make mistakes and disappear as a result. Anyone remember Bear Stearns? I could go on, but I won’t.

++++

Markets: Out of stock
By John Authers and Kate Burgess – Financial Times
Nikhil Srinivasan, the man who decides where one of the world’s biggest insurance funds places its assets, wants to know why he should invest in stocks. “We are delivering what policyholders want,” says Allianz Investment Management’s chief investment officer, speaking from his Munich base. “So there is no need to get aggressive about equities.”
http://jlne.ws/LsSk22

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Cotton traders probed on squeeze
By Gregory Meyer in New York and Javier Blas in London – Financial Times
The US commodities regulator has launched a probe into cotton markets in response to concerns that a squeeze last year caused hundreds of millions of dollars in losses for several high-profile trading houses.
http://jlne.ws/LsSkir

**** Timely investigations are at the core of good regulation. And then, there is the thing we do a year later.

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Singapore reviews rules for clearers
By Jeremy Grant in Singapore – Financial Times
Overseas clearing houses wanting to offer over-the-counter derivatives clearing in Singapore would have to show that they were subject to standards of oversight in their home country that were “comparable” with those in the Asian city-state.
http://jlne.ws/LsSkiv

**** Getting Jeremy Grant to Singapore should be considered a great foreign policy win.

++++

CME annual meeting disrupted by chanting activists
Reuters via Yahoo! News
CME Group ejected about 50 activist shareholders from a raucous annual meeting on Wednesday after they shouted for the exchange operator to pay its “fair share” of taxes. “Pay your fair share! Pay your fair share!” demonstrators chanted as they were escorted out of the meeting room by CME security guards.
http://jlne.ws/LsSjer

**** We have not had this much protest since I first came into the futures business and dairy farmers were spilling milk on LaSalle street to protest low prices. Remember low prices?

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JLN Options

Livevol Receives Private Funding from Institutional Investor
Press Release
Livevol Inc., a leading provider of real-time and historical data solutions to professional and retail equity and index option traders, today announced that it has raised private funding from an institutional investor to fund the acceleration of Livevol’s development.
http://jlne.ws/Jd5ixe

VXN Futures Debuting Today
Jill Malandrino, The Street
Today the CBOE Futures Exchange, LLC (CFE) will launch trading on CBOE NASDAQ-100 Volatility Index(SM) (VXN(SM)) futures contracts. VXN is a key measure of market expectations of near-term volatility conveyed by NASDAQ-100 Index (NDX) option pricing.
http://jlne.ws/MoIg9H

OptionsCity Software launches Algo Store, the ‘iTunes’ of trading world
Press Release
OptionsCity Software, a leading provider of electronic trading solutions,announced today that it has launched Algo Store, an online algorithm repository and collaborative environment that provides a market for traders and developers to create, purchase, and download trading algorithms, available at algostore.optionscity.com.
http://jlne.ws/JxPqLZ

MarketsWiki

Page of the Day
Susan M. Schultz
http://jlne.ws/LoLHh2

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Recent Updates

People
Natasha de Terán; Susan M. Schultz

Companies, Organizations and Groups
Options Industry Council; European Energy Exchange AG; Futures For Kids

Miscellaneous
Upcoming Events; Job Postings

Statistics
23,989,586 pages viewed, 6,870 articles, 141,222 edits
MarketsWiki Statistics

Lead Stories

CME, ICE Clearinghouses Designated Systemic by U.S. Panel
By Silla Brush and Matthew Leising
Derivatives clearinghouses owned by CME Group Inc. and Intercontinental Exchange Inc. have been designated systemically important by U.S. regulators, moving them closer to heightened supervision under the Dodd-Frank Act.
http://jlne.ws/LsSjex

Oslo Bors to charge for excessive orders
By Michael Stothard in Stockholm – Financial Times
Oslo Bors will issue punitive charges to traders if they send too many orders into the exchange that do not result in deals being done, as the industry seeks to crack down on the practice of “quote stuffing”.
http://jlne.ws/LsSjuP

Euro Zone Crisis Boils as Leaders Fail to Signal New Steps
Lionel Bonaventure/Agence France-Presse — Getty Images
President François Hollande of France spoke with reporters in Brussels on Wednesday.
By NICHOLAS KULISH and PAUL GEITNER – NY Times
With Greece’s membership in the euro zone teetering, fears of bank insolvency rising and Europe’s leaders bickering about what to do, the euro crisis is once again intensifying and threatening to undermine fragile growth globally.
http://jlne.ws/LsSjuT

Key regulators learned of JPMorgan loss from media reports
By Jim Puzzanghera, Los Angeles Times
The public won’t be protected from the type of risky bets that led to the huge trading loss at JPMorgan Chase & Co. until new rules are approved to allow better monitoring of complicated derivatives transactions, two key federal regulators told a Senate committee. As it was, the heads of the Securities and Exchange Commission and the Commodity Futures Trading Commission said Tuesday that they learned of the unusual trading activity that led to JPMorgan’s $2.3-billion trading loss through media reports.
http://jlne.ws/LsSkPt

JPMorgan Hearing: Market Regulators Warn They’re Broke, Outgunned By Wall Street
D.M. Levine – Huffington Post
Two of the most important financial regulators in the country have a message for Congress: We need more money. At a hearing before the Senate Banking Committee Tuesday morning, Securities and Exchange Commission Chairman Mary Schapiro and Commodity Futures Trading Commission Chairman Gary Gensler told lawmakers that the demands on their agencies to expand oversight are growing, but that their pocketbooks are not.
http://jlne.ws/KJsVhU

Facebook eyes move to NYSE
Fort Wayne Journal Gazette
Facebook is in talks with the New York Stock Exchange to move its stock from the Nasdaq Stock Market after a botched initial public offering Friday, according to a person familiar with the matter.
http://jlne.ws/LsSkPF

JPMorgan’s Big Loss: Why Banks Still Haven’t Learned Their Lesson
Knowledge at Wharton
When JPMorgan Chase announced its $2 billion trading loss on May 10, some analysts asked, “What’s the big deal?” Even though the loss now appears to have grown to $3 billion, and could, by some accounts, soar to $5 billion or more, that’s pocket change to this enormous bank, which is healthy and making money.
http://jlne.ws/LsSmqF

Eurogroup head admits possibility Greece could ditch euro, though ‘working assumption’ is no
AP
European Union leaders concluded their latest summit with few concrete steps to fix the continent’s festering financial crisis even as the potential for a messy Greek exit from the euro appears to be rising. Some leaders stressed the importance of planning for just such an event but offered no measures that might help Greece avoid it.
http://jlne.ws/LsSl62

ECB questions holes in Greek bank recap plans
Reuters via Yahoo! News
The European Central Bank has given its backing to Greece’s plans to recapitalize its banks but raised a number of key questions about how the fund set up to do the job will work.
http://jlne.ws/LsSl67

Greece’s Ministry Of Finance Denies Reports That Each Eurozone Country Should Prepare Contingency Plans For Potential consequences Of Departure Of Hellenic Republic From Single Currency Area
http://jlne.ws/LsSmH7

Regulatory

The SEC News Digest
The SEC News Digest provides daily information on recent Commission actions, including enforcement proceedings, rule filings, policy statements, and upcoming Commission meetings.
http://www.sec.gov/news/digest.shtml

Hedge exemption should not be layup
By Daniel P. Collins – Futures Magazine
The heads of the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) both stated that there are specific criteria for banks to meet the hedge exemption allowed under the Volcker rule of the Dodd-Frank Act, stating that a hedge must be used “to mitigate specific risks.”
http://jlne.ws/LsSqXh

European Parliament Adopts Ambitious Approach On Financial Transaction tax
http://jlne.ws/LsSrKP

Steven Maijoor Chair Of ESMA Speaks At The Government Borrowers Forum
http://jlne.ws/LsSrdU

ISDA Publishes Paper Examining Differences In Derivatives Reporting Between US GAAP And IFRS Accounting Standards
http://jlne.ws/LsSrL0

Joaquin Almunia Vice President Of The European Commission Responsible For Competition Policy Overcoming The Crisis: The Role Of Finance Second European Financial Congress Sopot, 23 May 2012
http://jlne.ws/LsSs1m

[ASIC] MoneySmart wins best website award
http://jlne.ws/LsSrup

ASIC relief decisions: October 2011 to January 2012
http://jlne.ws/LsSruz

BCSC panel issues lifetime ban against B.C. man for fraud
A British Columbia Securities Commission panel has sanctioned a B.C. man for committing fraud and engaging in unregistered trading.
http://jlne.ws/LsSuq1

BCSC panel cease trades unregistered Bahamian company for misconduct and refusal to provide information
A British Columbia Securities Commission panel has issued a cease trade order against a Bahamian company for trading and advising in securities in B.C. without being registered, and for refusing to provide BCSC staff with information relating to B.C. residents who have held accounts with the company.
http://jlne.ws/LsSuqf

Buffett banker details ‘top secret’ deal
By Kara Scannell in New York – Financial Times
A former top Goldman Sachs banker testified in an insider trading trial involving a former Goldman director that Warren Buffett’s $5bn investment in the bank was “about as top secret as you could get” before it was announced to the public.
http://jlne.ws/LsSsyp

Exchanges & Trading Facilities

CME set to extend hours for pit grain trading: traders
Reuters via Yahoo! News
The CME Group will ask federal regulators on Thursday to approve a plan to increase hours for its open-outcry grain trading at its Chicago Board of Trade grain futures, grain traders told Reuters following their private meeting with CME officials on Wednesday.
http://jlne.ws/LsSlmw

Vanguard picks London Stock Exchange and FTSE for European ETF debut
London Stock Exchange today welcomes Vanguard Asset Management (Vanguard) as a new ETF issuer on its Main Market. Vanguard has listed five ETFs on LSE – its first such products in Europe. FTSE Group has licensed Vanguard with its flagship FTSE All-World, FTSE Emerging and FTSE 100 indices to support the products.
http://jlne.ws/LsSlD0

MSCI And BM&FBOVESPA Reach A Preliminary Agreement On Tthe Expansion Of Their Business Relationship And The Provision Of Real Time Data
With this preliminary agreement, the calculation of MSCI real time indices will continue as normal to support a range of financial products. The parties will now work on the completion of binding documentation.
http://jlne.ws/LsSne0

Deutsche Boerse Expands Its European Network – New Direct Access Point Planned At Equinix ZH4 Data Centre In Zurich
http://jlne.ws/LsSne6

Warsaw Stock Exchange Accepts 400th New Listing On NewConnect After Announcing Major Market Reform
http://jlne.ws/LsSlTH

11th Annual General Meeting Of Hellenic Exchanges
http://jlne.ws/LsSnee

Hellenic Exchanges – Dividend For Fiscal Year 2011
http://jlne.ws/LsSma4

Direct Edge Trading Notice #12-21: Market Holiday Reminder – Memorial Day
http://jlne.ws/LsSmaa

NZX Limited Ordinary Shares Update
http://jlne.ws/LsSmae

Hedge Funds & Managed Futures

Goldman sets $40 billion clean energy investment plan
Reuters via Yahoo! News
Goldman Sachs Group Inc plans to channel investments totaling $40 billion over the next decade into renewable energy projects, an area the investment bank called one of the biggest profit opportunities since its economists got excited about emerging markets in 2001.
http://jlne.ws/KEd3he

Laying a golden egg
New York Post
Investors with legendary hedge-fund manager John Paulson aren’t taking a shine to his gold metal performance – in fact, some are heading for the exits. Investors are upset over Paulson’s huge gold positions – specifically, his outsize holding of AngloGold Ashanti, down 20 percent this year, The Post has learned.
http://jlne.ws/LsSsOU

Hedge Funds’ Top 10 Stocks: For This They Get Two-and-Twenty?
Forbes
Hedge fund managers barely old enough to buy their first Ferrari keep showing up on the Forbes 400 list of richest Americans, so, one surmises, these guys must really be smart.
http://jlne.ws/LsSsOZ

Silver Lake in E1bn Global Blue deal
By Richard Waters – Financial Times
Silicon Valley buyout firm Silver Lake Partners is set to lead a E1bn acquisition of Swiss-based retail technology concern Global Blue, in what would count among the top handful of private equity deals in Europe this year.
http://jlne.ws/LsSsP4

New York pension fund assets hit $150 billion, near peak
Reuters via Yahoo! News
New York state’s pension fund assets rose 5.96 percent to $150.3 billion in the 2012 fiscal year, not far from the $154 billion peak set in 2007, the state’s comptroller said on Wednesday. Despite the improvement, the return remained below the assumed rate of return of 7.5 percent.
http://jlne.ws/LsSuXa

Will investors take to crowdfunding?
Reuters via Yahoo! Finance
Artists are not renowned for financial savvy, but their success in raising money on the Internet through donations to crowdfunding websites like Kickstarter and Indiegogo could lead the way for a new class of investing.
http://jlne.ws/LsSt5q

Searching for yield in uncertain times
Reuters via Yahoo! Finance
The hunt for yield in a low-interest-rate world is driving investors into markets such as U.S. junk bonds and Japanese stocks as they shrug off the risk the global recovery could stall.
http://jlne.ws/LsSt5F

Banks & Brokers

M Stanley turns profit on Facebook support
By Tracy Alloway in New York – Financial Times
Morgan Stanley and other banks made a profit from the rescue of Facebook shares in the wake of the social network’s troubled initial public offering last week. The profit is likely to focus attention on the mechanics of how big Wall Street banks “stabilise” shares in IPOs.
http://jlne.ws/LsSmaf

When Jamie Went To Sleep: The JP Morgan Debacle
Forbes
The current J P Morgan debacle is instructive on so many levels. At the J P Morgan annual meeting held a week ago, Jamie Dimon strenuously assured shareholders that those responsible for recent $2.3 billion in trading losses would be disciplined. That’s just great. As far as I know, three culpable parties, including chief investment officer Ina Drew are leaving, been demoted, or may be leaving
http://jlne.ws/LsSp5K

Knight Capital: Facebook Trading Losses May Rise To $35M
By Jacob Bunge Of DOW JONES NEWSWIRES
Knight Capital Group Inc. may suffer pretax losses of up to $35 million linked to its trading in Friday’s glitch-ridden initial public offering of Facebook Inc. on the Nasdaq Stock Market, the company disclosed Wednesday.
http://jlne.ws/LsSnL8

Morgan Stanley to adjust prices on Facebook trades
Reuters via Yahoo! News
NEW YORK (Reuters) – Morgan Stanley told brokers on Wednesday it is reviewing every Facebook Inc trade and will make price adjustments for retail customers who paid too much during the social network company’s debut last week, according to an internal memo.
http://jlne.ws/LsSpmc

JPMorgan takes more risk than rivals
By Ajay Makan in New York – Financial Times
JPMorgan Chase’s chief investment office, still reeling from a $2bn-plus trading loss, has been taking a much more aggressive approach to investing the bank’s own funds than its competitors, according to regulatory filings.
http://jlne.ws/LsSpmn

Positive PR Lessons from JPMorgan’s Derivatives Loss
Forbes
The past two weeks have certainly not been pleasant for Jamie Dimon, but under the circumstances they could have been a lot worse. For a start Mr. Dimon has retained his position as both CEO and Chairman of JPMorgan after last week’s annual meeting, despite a sharp increase (40%) in shareholders calling for him to …
http://jlne.ws/LsSpCP

Central Banks, IMF To Supervise Spain Bank Audits
Dow Jones
Euro-zone central banks, the International Monetary Fund and the European Banking Authority will supervise the audits to be carried out on the Spanish banking sector by independent consulting firms hired by the country’s government, reports El Pais in its Thursday Internet edition, citing people close to the process.
http://jlne.ws/LsSpCS

Fitch Wavers Over Plans to Relax Banks’ Derivatives Rules
Bloomberg
Fitch Ratings is wavering over part of its plan to loosen rules for banks that sell derivatives contained in securitizations and covered bonds. The company is readying a series of adjustments to its guidelines for transactions that rely on counterparties in the $700 trillion derivatives market. Swaps can be used to turn mortgages in one currency into securities in another or to create floating-rate bonds out of fixed car loans.
http://jlne.ws/LsSpTe

JPMorgan Appoints Senior Investment Banker
By MARK SCOTT – NY Times
JPMorgan Chase is naming Joseph A. Walker as senior vice chairman of its investment banking unit, according to an internal e-mail obtained by DealBook. Mr. Walker, who previously spent 22 years working at JPMorgan before leaving the firm in 2001, will be based in New York and will start later this month.
http://jlne.ws/LsSoic

Former Billionaire Schickedanz Seeks EUR1.9 Billion From Deutsche Bank Unit
Dow Jones
Former billionaire Madeleine Schickedanz has filed a long-awaited lawsuit against Deutsche Bank AG’s (DBK.XE) private wealth management unit Sal.
http://jlne.ws/LsSpTs

AIG Can’t Pursue Some Countrywide Claims in $10 Billion Lawsuit
Bloomberg
American International Group Inc. (AIG) was blocked from pursuing some of its claims against Bank of America Corp .’s Countrywide unit that are part of a lawsuit over $10 billion in losses related to residential mortgage-backed securities.
http://jlne.ws/LsSoil

Instinet Adds McBee Strategic Insight As Research Provider
http://jlne.ws/LsSqqh

Investment Banking & Securities Brokerage in the UK Industry Market Research Report Now Updated by IBISWorld
PRWeb
The Investment Banking and Securities Brokerage industry has been on a roller-coaster ride over the past five years. IBISWorld estimates industry revenue will contract at an annualised 1.6% over the five years through 2012-13 to total £41.6 billion.
http://jlne.ws/LsSqGI

HighTower Releases Enhanced Host Platform: Built By Advisors For Advisors
PR Newswire via Yahoo! Finance
HighTower, the first advisor-owned national financial services company serving wealthy families and institutional clients, announced today the expansion of the financial industry’s first comprehensive technology solution providing direct access to multiple custodians and clearing firms, best-in-class tools, and an unconflicted expanse of investment products.
http://jlne.ws/LsSqGR

Goldman Sachs to Present at Sanford C. Bernstein’s 2012 Annual Strategic Decisions Conference 2012
http://jlne.ws/LsSoP9

Clearing & Settlement

Indexes & Products

BNP Paribas CIB Licenses Its Diversified USD Covered Bond Index to ProShares
Marketwire
BNP Paribas Corporate and Investment Banking announced today that it has entered into an agreement to offer ProShares an exclusive license to use the BNP Paribas Diversified USD Covered Bond Index.
http://jlne.ws/LsSt5s

Bloomberg BNA Conference to Offer Comprehensive Look at Issues and Uses of Financial Products and Derivatives
PR Newswire via Yahoo! News
Financial products and derivatives have become the primary instruments in the global financial markets for corporations and financial institutions seeking to hedge risks or lock in certain financial or economic benefits. Bloomberg BNA | CITE will host a live conference, Introduction to U.S. Taxation of Financial Products and Derivatives, June 4-5 at the Sentry Conference Center in New York City, that will examine the basic economic and U.S. tax aspects of typical financial products and derivative instruments used in financial markets today.
http://jlne.ws/LsSt5B

Technology

NYSE Technologies And The Warsaw Stock Exchange Announce Market Data Partnership
NYSE Technologies, the commercial technology division of NYSE Euronext, today announced its market data partnership with the Warsaw Stock Exchange (WSE). Customers will now have access to the WSE’s market data services via NYSE Technologies’ innovative suite of market data products and services.
http://jlne.ws/LsSvu9

Object Trading Extends Global Colocation Direct Market Access Coverage for The Kyte Group
Object Trading, an independent provider of global direct market access (DMA), today announced that The Kyte Group, an integrated clearing, broking and investment service provider for professional traders and investors around the world, is extending its global collocation DMA coverage with Object Trading.
http://jlne.ws/LsStm3

Asset Control Wins Inside Reference Data’s “Best Enterprise Data Management Vendor” Award for Fifth Consecutive Year
Asset Control, provider of financial data management solutions and services, has been selected as the “Best Enterprise Data Management Vendor” by readers of Inside Reference Data. This is the fifth year in a row that Asset Control has received this award.
http://jlne.ws/LsSvKC

Enforcement

Federal Court in New York Orders Chicago Resident and Former Floor Broker, Kent R.E. Whitney, to Pay $600,000 for Margin Call Avoidance Scheme
The U.S. Commodity Futures Trading Commission (CFTC) obtained a federal court consent order of permanent injunction requiring defendant, Kent R.E. Whitney (Whitney), a former floor broker of Chicago, Ill., to pay a $600,000 civil monetary penalty for making false and misleading statements to Chicago Mercantile Exchange (CME) representatives, futures commission merchants (FCMs), and others in connection with an elaborate scheme to trade options without posting the required margin.
http://jlne.ws/LsSoPj

The AMF and the ACP update the list of unauthorised websites and entities offering forex investments
On 20 September 2011, the Autorité des marchés financiers (AMF) and the Autorité de contrôle prudentiel (ACP) published an update of the 7 July 2011 news release warning retail investors about proposals to invest in the currency (or forex) market.
http://jlne.ws/LsSoPm

Environmental & Energy

Green Exchange Holiday Hours for Memorial Day Holiday
http://jlne.ws/LsSmHe

Goldman sets $40 billion clean energy investment plan
Reuters
Goldman Sachs Group Inc plans to channel investments totaling $40 billion over the next decade into renewable energy projects, an area the investment bank called one of the biggest profit opportunities since its economists got excited about emerging markets in 2001.
http://jlne.ws/KEd3he

**RKB — Applies to investment and financing for solar, wind, hydro, biofuels, biomass conversion, energy efficiency, energy storage, green transportation, efficient materials, LED lighting and transmission.

ICE’s EUA open interest hits fresh record early
Reuters Point Carbon
Open interest on ICE Futures Europe’s EU Allowance futures rose to a record 735.5 million units on Tuesday, exceeding the previous high months earlier than expected.
http://jlne.ws/KVAKl4

EU warns climate talks at risk of floundering
AFP
Europe warned at climate talks in Bonn on Wednesday that efforts to forge a new global pact to avert environmental disaster were in danger of floundering, and some pointed fingers at China.
http://jlne.ws/MIx0rl

Asia-Pacific

The wobbly panda won’t fall yet
By David Pilling – Financial Times
April was a truly gripping month for Chinese politics. Bo Xilai, the nearest thing in China to a politician running for national office, was purged with a brutality reminiscent of the Mao era he had so enthusiastically invoked. But while the country, and the world, was spellbound by the unfolding political drama, something strange was happening to the economy – nothing at all.
http://jlne.ws/LsStT1

Tokyo Stock Exchange Group, Inc. and GreTai Securities Market Sign Memorandum of Understanding
Tokyo Stock Exchange Group, Inc. (TSE Group) and GreTai Securities Market (GTSM) signed a Memorandum of Understanding (MOU) today. With the MOU, both markets wish to build a closer relationship and explore opportunities for exchanging information and working on the development and listing of financial products. Under the agreement, the two markets will consider the possibility of cooperating in the listing promotion and other marketing activities for the benefits of issuers in both regions.
http://jlne.ws/LsStT9

World Bank sees China as drag on emerging Asia
MarketWatch via Yahoo! Finance
The World Bank on Wednesday forecast slower economic expansion for developing nations in East Asia this year due to weakness in China, and urged governments in the region to look domestically for growth rather than relying on exports.
http://jlne.ws/LsSwhD

Hong Kong tycoon charged with bribery
By Enid Tsui in Hong Kong – Financial Times
Shares in Chinese Estates Holdings were suspended in Hong Kong on Thursday after Joseph Lau, its chairman, was charged overnight with bribery and money laundering in Macau. The allegations are likely to further tarnish the reputation of Hong Kong developers and could undermine efforts to improve Macau’s corporate image.
http://jlne.ws/LsSu9F

EU to China: ‘We don’t want a trade war’
Air Transport World
EU has appealed to China to join global emission talks as tensions escalate over the country’s refusal to join the European Union’s Emissions Trading Scheme (EU ETS).
http://jlne.ws/LsSwy8

BT Taking Steps To Open Up Hong Kong Markets To Global Investors
BT Radianz Portfolio To Be Offered From Hong Kong Exchange’s New Data Centre To Deliver Fully Managed Hosting And Low-Latency Interconnectivity Services
http://jlne.ws/LsSx5e

Thai Bourse Announces Three Members Elected To Its Board
The Stock Exchange of Thailand (SET) announced that three members were elected to its board of governors to replace those whose terms will end on May 27, 2012, at a general meeting of member companies today.
http://jlne.ws/LsSx5j

SGX Welcomes Swee Hong To Mainboard
Singapore Exchange (“SGX”) is pleased to welcome the listing of Swee Hong Limited on the Mainboard board under the stock code, “QF6”.
http://jlne.ws/LsSx5l

Monetary Authority Of Singapore Issues Response To Feedback On Proposed Regulation Of Derivatives Market in Singapore And Consultation Paper On Amendments To The Securities And Futures Act
http://jlne.ws/LsSwOF

Shenzhen Stock Exchange Promulgates
http://jlne.ws/LsSwON

Frontier Markets

DFSA Meets Finance Leaders in Hong Kong and Singapore
The Dubai Financial Services Authority (DFSA) met, today and last week, senior government officials, financial regulators, industry figures and academics in Hong Kong and Singapore.
http://jlne.ws/LsSxlT

May 23, 2012: JPMorgan Joins MF Global in Lobbying Victories That Backfire; US looks at cutting settle lag on trades; CME Group Eliminated From LME Sale Process

2012-05-24T13:06:52Z

J.P. Morgan has joined MF Global in a list of lobbying victories that have gone awry. The U.S. is contemplating ways to reduce settlement time for stocks and bonds below the current “three days, or possibly longer” threshold. CME Group gets a home edition of the Stock Exchange Purchase Game, and is shown the door by LME; now the bidding is down to two companies. Two major investors in the London Stock Exchange are selling their holdings, triggering some pondering as to the future of the exchange at the hands of remaining large investors.

Observations – Statistics – Commentary

10th Annual Chicago Open Your Heart to the Children Benefit, May 23, 2012
Hedge Funds Care
Join in the celebration at the 10th Annual Hedge Funds Care Midwest Wednesday, May 23, 2012, 5:30 pm at Venue One, 1044 W. Randolph in Chicago. They will be raffling off a 2012 Fisker Karma plug-in hybrid luxury sedan. According to Committee Co-Chair Ron Suber of Merlin Securities, the event has already taken in over $600,000 from over 400 paid attendees, who represent accounting firms, law firms, fund administrators, prime brokers, managers and investors. All proceeds will go to Hedge Funds Care, whose mission is the prevention and treatment of child abuse.
http://jlne.ws/JA5OVy

***DA: Thanks to CME veteran Steve Mendes for passing along the information.

++++

JPMorgan Joins MF Global in Lobbying Victories That Backfire
By Heidi Przybyla and William McQuillen – Bloomberg
MF Global Holdings Ltd. argued in a December 2010 letter to regulators that futures brokers didn’t need tighter restrictions on how they invest client funds. Ten months later, as MF Global filed for bankruptcy, about $1.6 billion in customer accounts was missing.
http://jlne.ws/JR338D

**** Ask and you shall receive something that you never expected or wanted.

++++

Singapore vies to become commodities hub
By Jeremy Grant in Singapore and Javier Blas in London – Financial Times
When Sir Stamford Raffles founded Singapore in 1819, a flourishing trade hub quickly followed in commodities such as rubber, tin, gold and opium from India. The southeast Asian city-state later fell under the shadow of fast-growing Hong Kong as a financial centre. But the rapid growth of Asia’s economies, coupled with the generous tax breaks it offers, means Singapore is challenging its regional rival for supremacy.
http://jlne.ws/JR30tA

**** Here it comes, the beginning of the Singapore stories from Jeremy Grant. If you did not want to do business there before, you will now.

++++

CME Group to Allow Brokers to Trade Futures, Swaps on One Screen
By Matthew Leising – Bloomberg
CME Group Inc., the world’s largest futures exchange, will allow traders who arrange transactions between banks to buy and sell futures and swaps through one electronic screen.
http://jlne.ws/JR324H

***** It used to take two screams, not it takes one screen.

++++

Quick View: A share in the LSE
By Philip Stafford – Financial Times
The sale of the stakes in the London Stock Exchange by UniCredit and Banca Intesa Sanpaolo brings back into focus the future share ownership of the bourse.
http://jlne.ws/JR30JW

**** Did they sell them, oh I can’t say it, to NASDAQ?

++++

In Volatility Trading, Accept No Substitute
By Geoffrey Rogow, OF DOW JONES NEWSWIRES
When it comes to fear gauges, traders will accept no substitutes. After the Chicago Board Options Exchange Volatility Index, commonly called the market’s fear gauge, surged in 2008 amid the height of the financial panic, exchanges all over the world began launching their own volatility indexes. But despite several rather volatile years, the imitators are flopping.
http://jlne.ws/JR30JY

**** Flopping is what I did to get back into a canoe a week ago after swamping it. I was successful flopping.

++++

CME Group Hires Schultz as Executive Director and Counsel to the Executive Chairman and President; and Appoints Rich to Management Team Role
CME Group, the world’s leading and most diverse derivatives marketplace, today announced that it has appointed Susan M. Schultz to the newly created position of Executive Director and counsel to the Executive Chairman and President.
http://jlne.ws/LkJIKB

++++

BATS CHI-X Europe Names Guy Simpkin Head Of Business Development
Mr. Simpkin, who will initially focus on opportunities in European indexes and derivatives, joins the BATS Chi-X Europe executive committee and reports to Mark Hemsley, chief executive officer of BATS Chi-X Europe.
http://jlne.ws/JR30K6

++++

The stock exchange: Bourse promises a sharper eye on small listings
By Jan Cienski in Warsaw – Financial Times
Too much growth can sometimes be a bad thing – as the Warsaw Stock Exchange, with its big appetite for attracting listings to its main and alternative markets, is finding out.
http://jlne.ws/JR32lg

**** There is not a Polish Facebook IPO I hope.

++++

Barchart.com Introduces Free Real-Time Prices on U.S. Stocks and a New Economy Section
Barchart.com, Inc., a leading provider of market data and information, today announced the introduction of free real-time US stock market data and a new economy section available through Barchart’s financial website (www.barchart.com). The real-time US stock market data is sourced from the BATS BZX Exchange, the third largest US securities exchange, and provides Barchart.com users with access to the latest US stock market prices at no cost
http://jlne.ws/JR32BA

++++

A fragile Europe must change fast
By Martin Wolf – Financial Times
I sympathise with the Germans. This is not because I agree with their prevailing view of how the crisis occurred or what to do about it. I sympathise because the German elite were the ones who understood what creating the euro implied. They realised that a currency union could not work without a political union. But the French elite wanted, instead, to end their humiliating dependence on the monetary policy set by Germany’s Bundesbank. Now, two decades later, Germany’s partners, including France, have learnt a painful lesson. Far from being liberated from German control, they are now far more firmly under it. In a big crisis, creditors rule.
http://jlne.ws/JR310z

++++

Deal Professor: Disclosure by Short-Sellers Would Improve Market Clarity
By STEVEN M. DAVIDOFF – New York Times
Wild gyrations of stocks based on the barest mention by short-sellers are reviving the debate on whether rules should require disclosures of big short positions.
http://jlne.ws/JR32BI

**** The answer is yes.

++++

SEC Needs to Investigate Facebook Estimate Cut: Blodget
CNBC
The SEC has to look at this – it’s bizarre, says Henry Blodget on Halftime. “How can you have an estimate cut in the middle of a road show and not have that communicated widely?”
http://jlne.ws/JR310L

++++

A Can’t-Miss Season Finale: The 99 Percent Takes on the CME
Elizabeth Parisian – Huffington Post
With NATO tumult competing on the airwaves with the very last performances of American Idol finalists, we’re in the midst of big-time drama. And it’s about to get even bigger. As we speak, thousands of “average” Chicago taxpayers are putting on their protest shoes and gearing up for an incredible season finale.
http://jlne.ws/JuTbld

++++

MarketsWiki Page of the Day
Nicole Wesch
http://jlne.ws/JO8tkY

++++

MarketsWiki Recent Updates

People
Linda Dallas Rich; Susan M. Schultz; Jack Sandner; Chris McMahon; Nicole V. Rohr; David J. Smith; John C. Nelson; Nicole Wesch; Jessica Titlebaum; Andy Coyne

Companies, Organizations and Groups
Thomson Reuters

Products
Frontier Markets Newsletter

Miscellaneous
Upcoming Events

Statistics
23,922,548 pages viewed, 6,870 articles, 141,184 edits
MarketsWiki Statistics

Lead Stories

US looks at cutting settle lag on trades
By Tracy Alloway in New York – Financial Times
The US financial industry is examining whether the time it takes trades of stocks and bonds to settle should be cut, in an effort to reduce risk and costs. At the moment, trades of equities and bonds usually settle within three days, in a market convention known as “T+3.” That means money and securities actually exchange hands three days after a trade is agreed, though sometimes trades can “fail” to settle, further extending settlement time.
http://jlne.ws/JR32S4

CME Group Eliminated From LME Sale Process – Sources
Dow Jones Newswires
CME Group Inc. (CME) has been eliminated from the sale process to buy the London Metal Exchange after being given more time to come up with a higher priced offer, leaving just two bidders in the frame to acquire the 135-year-old exchange, people familiar with the matter told Dow Jones Newswires Tuesday.
http://jlne.ws/LcuZPh

Two Italian banks to sell stakes in LSE
By Philip Stafford – Financial Times
UniCredit and Intesa Sanpaolo are to sell their stakes in the London Stock Exchange, only days after two of Italy’s biggest banks were downgraded by a credit-rating agency on fears about limited access to funding.
http://jlne.ws/JR32Se

Morgan Stanley subpoenaed over IPO
By Telis Demos and Kara Scannell in New York – Financial Times
The top securities regulator in Massachusetts has issued a subpoena to Morgan Stanley as part of an investigation into whether its analysts communicated revisions of Facebook’s revenue forecasts broadly to all clients ahead of last week’s initial public offering.
http://jlne.ws/JR34cP

Eurozone warned ‘severe recession’ looming
Associated Press via Yahoo! News
The 17-country eurozone risks falling into a “severe recession,” the Organization for Economic Cooperation and Development warned on Tuesday, as it called on governments and Europe’s central bank to act quickly to keep the slowdown from dragging down the global economy.
http://jlne.ws/JR34ta

European Central Bank Reportedly Propping Up Greece With Secret E100 Billion Emergency Aid
International Business Times
The European Central Bank (ECB) is propping up Greece with a secret infusion of E100 Billion in “emergency liquidity assistance” (ELA) funds, the Financial Times reported Tuesday.
http://jlne.ws/JR338L

Combine Austerity With Measures To Boost Growth, Say Eurobarometer Respondents
http://jlne.ws/JR338Q

Beware the quant models
Posted by Izabella Kaminska – Financial Times
If you thought the headlines were bearish… you haven’t seen the bank quant models (the ones which presumably can’t read headlines). Looking at SocGen’s latest cross asset quant research, the picture painted on all signal fronts is increasingly coming across on the dire side
http://jlne.ws/JR33p9

US ‘fiscal cliff’ looms into view
By Michael Mackenzie, Arash Massoudi and Vivianne Rodrigues in New York – Financial Times
If you think America’s debt problems have gone away, think again. With US presidential elections just months away, wary investors are gauging the impact on markets of a so-called “fiscal cliff” of huge tax rises and spending cuts that are due to kick in.
http://jlne.ws/JR34th

The world’s ‘New Tigers’ lie ready to pounce
By Myra P. Saefong, MarketWatch
As the big headliners for economic growth lose their appeal, the search for new stars has begun. The “New Tigers” of the world are nations that have flown below investors’ radar, but are most likely to stand out in the years ahead as economic powerhouses such as the U.S., Japan, Germany, France, the U.K., Italy and Canada give up the spotlight to countries experiencing stronger growth.
http://jlne.ws/JR34tl

Environmental Trading News

German bourse scraps EU carbon emissions trading
Reuters
Bavaria’s stock exchange will abandon its carbon emissions certificate trading operations in the EU-traded CO2 market on June 30 after volumes in Europe “plunged to practically zero” in recent months, it said on Tuesday.
http://jlne.ws/Kajnhb

**RKB — The is the exchange arm known as Greenmarket.

Bayerische Borse Press Release (in German)
http://jlne.ws/JnhJru

New CEO, Dirk Forrister, Takes Over the Helm at IETA
Press Release
Earlier this month, the International Emissions Trading Association (IETA) welcomed Dirk Forrister as its new Chief Executive. A veteran of Washington, D.C., Forrister has served in several influential roles that have shaped global policy and markets for climate change and clean energy. Today, Forrister announced a restructuring of IETA’s presence at its U.S. headquarters in Washington, D.C.
http://jlne.ws/JvncS3

For more environmental trading news, subscribe to the Environmental Markets version of the John Lothian Newsletter edited by Jim Kharouf.
Visit http://www.jlnenvironmental.comto subscribe.

Exchange & ECN News

Nasdaq OMX Chairman Backs CEO After Facebook IPO Fiasco
By Jacob Bunge Of DOW JONES NEWSWIRES
The chairman of Nasdaq OMX Group Inc. expressed support for the exchange group’s chief executive Tuesday, days after Nasdaq OMX’s mishandling of the Facebook Inc. share offering Friday sparked confusion and anger across Wall Street.
http://jlne.ws/KJgHKa

Finra: Nasdaq To Have Final Say On Paying Facebook Trade Losses
By Caitlin Nish and Jacob Bunge Of DOW JONES NEWSWIRES
Nasdaq OMX Group Inc. will make the final decisions on making up losses sustained by brokers and traders after glitches struck the initial public offering of Facebook Inc., according to a senior official with the agency tasked to review the matter.
http://jlne.ws/JR33FI

Investor Sues Nasdaq Over Facebook IPO Glitches
By Dan Strumpf Of DOW JONES NEWSWIRES
Nasdaq OMX Group Inc. is facing a lawsuit on behalf of Facebook Inc. (FB) investors claiming that the glitches surrounding the company’s initial public offering led to millions of dollars in trading losses.
http://jlne.ws/JR34tr

In retrospect, it was incorrect says NASDAQ on Facebook IPO
SlashGear
NASDAQ today is letting investors know that they will not necessarily get “dollar on the dollar” compensation for the losses they experienced at the hands of the blackout felt at the start of Friday’s Facebook IPO.
http://jlne.ws/JR33FM

CME gauges support for longer open-outcry grain cycle
Dairy Herd
CME Group, fresh off increasing electronic trading hours for grain futures and options, has asked for feedback about longer hours for open-outcry trading, floor traders said on Tuesday.
http://jlne.ws/JR33FP

LME transaction update
The Chairman of the London Metal Exchange (LME) has today issued an update to shareholders regarding the potential acquisition of the Exchange. The Board of the LME has decided to continue discussions with two parties regarding their proposals for the potential acquisition of the LME.
http://jlne.ws/JR33FT

The NYSE Big StartUp Launches Small Business Connections: Marketing Meets Microfinancing
NYSE Euronext today announced, in partnership with national microlender Accion and online review site Yelp, Small Business Connections: Marketing Meets Microfinancing, a nationwide small business marketing and financing workshop series in conjunction with The NYSE Big StartUpSM. The tour, which debuts in Tucson, AZ, on June 12, 2012, will provide small business owners across the U.S. with access to local resources to help finance their entrepreneurial dreams and increase their online marketing power by learning best practices for engaging with online review sites.
http://jlne.ws/JR34JS

CME Group Launches CME Direct Technology for Online Trading of Exchange Listed and OTC Markets
CME Group, the world’s leading and most diverse derivatives marketplace, today announced the launch of CME Direct, a new technology offering side-by-side trading of exchange-listed and over-the-counter (OTC) markets. CME Direct will initially support trading of CME Group’s benchmark energy futures markets alongside OTC energy swaps through leading inter-dealer brokers.
http://jlne.ws/JR34JW

IntercontinentalExchange Announces 2012 Annual Meeting Results
PR Newswire
IntercontinentalExchange (NYSE: ICE), a leading operator of global regulated futures exchanges, clearing houses and over-the-counter (OTC) markets, today announced the results of the company’s 2012 Annual Meeting of Stockholders, which was held May 18, 2012.
http://jlne.ws/LzIlL5

Equity Options Exercise Totals BRL 2.99 Billion On BM&FBOVESPA
http://jlne.ws/JR350l

NYSE Arca Memorial Day Observance
http://jlne.ws/JR36RX

KCBT Memorial Day Trading Hours
http://jlne.ws/JR350v

[CBOE] Registration and Qualification Requirements
http://jlne.ws/JR378m

[CBOE] Extension of End-of-Week S&P 500 Index (“SPXW”) Option Listings
http://jlne.ws/JR35gN

OneChicago Closed On Monday May 28, 2012 – Memorial Day
http://jlne.ws/JR378t

NZX IPO Masterclass
http://jlne.ws/JR35gT

Bermuda Stock Exchange Will Be Closed For Bermuda Day
http://jlne.ws/JR35gY

Banks, Brokers & Dark Pools

Chi-X Global Looks for Expansion as Chi-East Closes: CEO
Bloomberg
Chi-X Global Holdings LLC, the operator of alternative trading venues that’s owned by Nomura Holdings Inc., plans to expand in Asia and South America, even as it closes the first-ever pan-Asian dark pool, Chi-East, tomorrow.
http://jlne.ws/JR35xr

Troubleshooter in running to succeed Dimon
By Tom Braithwaite in New York – Financial Times
For relaxation, Matt Zames shoots things. Mostly birds. But the 41-year-old JPMorgan Chase executive does not have much free time for hunting now. He is busy mopping up his bank’s biggest mess since the financial crisis.
http://jlne.ws/JR35xu

JPMorgan hires former SEC enforcer over loss
Reuters via Yahoo! News
JPMorgan Chase & Co has hired former U.S. Securities and Exchange Commission enforcement chief William McLucas to assist the firm in probes of its loss of at least $2 billion on credit derivatives trades, according to bank spokesman Joseph Evangelisti.
http://jlne.ws/JR35xw

JPMorgan, CFTC held talks a day after losses revealed
Reuters via Yahoo! News
JPMorgan Chase & Co officials met with the U.S. futures regulator one day after revealing a $2 billion loss on trades booked in London, according to information from the Commodity Futures Trading Commission.
http://jlne.ws/JR35NL

No Longer The Envy Of Wall Street: Morgan Stanley’s Facebook Problem
Forbes
An IPO that should have made Morgan Stanley the envy of all its Wall Street competitors is turning into a bit of a mess.
http://jlne.ws/JR35NO

Banco Santander’s Emilio Botin Won’t Face Tax Charges
New York Times
Spain’s national court on Tuesday closed a tax fraud investigation focusing on Emilio Botín, the chairman of Banco Santander, and 11 of his relatives.
http://jlne.ws/JR37Fp

Cantor Fitzgerald & Co. Arranges New Asset-Backed Commercial Paper Program
PR Newswire via Yahoo! Finance
Cantor Fitzgerald & Co. today announced that it has arranged a new, fully-supported asset-backed commercial paper program called Institutional Secured Funding (Jersey) Limited and Institutional Secured Funding LLC, which together are called ISF.
http://jlne.ws/JR35NX

HSBC Appoints Michael Cummins Head of U.S. Payments and Cash Management
Business Wire via Yahoo! Finance
HSBC Bank USA, N.A. today announced the appointment of Michael Cummins as the head of Payments and Cash Management in the United States.
http://jlne.ws/JR37FC

HSBC: Hong Kong Remains Leading Yuan Offshore Market; London Complementary
FOX Business
Hong Kong will remain the leading yuan market outside China and will be complemented rather than rivalled by London as the offshore market develops, HSBC Holdings PLC (HBC) Hong Kong Chief Executive Anita Fung said Wednesday.
http://jlne.ws/JR37VU

Moynihan: Bank of America is not ‘too big to manage’
WCNC Charlotte
When asked to defend the universal bank model Monday, Bank of America CEO Brian Moynihan said that the Charlotte bank is not “too big to manage,” thanks in part to the streamlining the company has done over the past few years.
http://jlne.ws/JR364l

Interactive Brokers Group, Inc. Receives NASDAQ Notice of Non-Compliance with Listing Rules
Business Wire via Yahoo! Finance
http://jlne.ws/JR364q

Minutes Of Federal Reserve Board Discount Rate Meetings From April 2 Through April 23, 2012
http://jlne.ws/JR364x

IMF Economic Health Check – United Kingdom Could Ease Monetary Policy, Credit To Boost Growth
http://jlne.ws/JR37Wa

Thomson Reuters Launches New Junior Banker Solution – Advanced Analytics For Deal Making Reduces Time Spent Gathering Data, Allowing More Time For Analysis
http://jlne.ws/JR36kS

Regulatory News

SEC dealt blow in financial-crisis case
International Business Times
The U.S. Securities and Exchange Commission was dealt a setback in its cases tied to the financial collapse when a federal judge dismissed large parts of its case against former executives at failed mortgage lender IndyMac Bancorp.
http://jlne.ws/JR38cG

UK’s FSA Steps Up Probe Of Swap Sales To Small Firms
Dow Jones
The Financial Services Authority has stepped up an investigation into the sale of complex derivatives to small U.K. firms amid concerns that some of the products may have breached regulations designed to protect customers, according to letters released by lawmakers Wednesday.
http://jlne.ws/JR38sY

SEC Charges Two Feeders for One of South Florida’s Largest-Ever Ponzi Schemes
The Securities and Exchange Commission today charged two individuals who provided the biggest influx of investor funds into one of the largest-ever Ponzi schemes in South Florida.
http://jlne.ws/JR36Bl

FINRA Fines Citigroup Global Markets $3.5 Million for Providing Inaccurate Performance Data Related to Subprime Securitizations
The Financial Industry Regulatory Authority (FINRA) announced today that it has fined Citigroup Global Markets, Inc. $3.5 million for providing inaccurate mortgage performance information, supervisory failures and other violations in connection with subprime residential mortgage-backed securitizations (RMBS).
http://jlne.ws/JR36Bp

Senate Testimony Of SEC Chair Schapiro Updates Dodd-Frank Derivatives Progress
Forbes
On May 21, 2012, Securities and Exchange Commission Chair Mary Schapiro testified before the U.S. Senate Committee on Banking, Housing, and Urban Affairs concerning SEC’s ongoing implementation of Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
http://jlne.ws/JR38tb

Testimony On Implementing Derivatives Reform: Reducing Systemic Risk And Improving Market Oversight By SEC Chairman Mary L. Schapiro – Before The Committee On Banking, Housing, And Urban Affairs United States Senate
http://jlne.ws/JR38Ju

Testimony Before The US Senate Committee On Banking, Housing And Urban Affairs, Washington, DC, CFTC Chairman Gary Gensler
http://jlne.ws/JR36Bx

Update On Rulemakings Pursuant To The Dodd Frank Act: It Shouldn’t Be This Difficult Remarks By Commissioner Scott D. O’Malia, U.S. Commodity Futures Trading Commission At The Annual Nuclear Industry Conference: Nuclear Energy Assembly, Nuclear Energy Institute, Charlotte, NC
http://jlne.ws/JR36BA

Penal Proceedings Launched – AMF Takes a Position on Damage Insurance Consultants
The Autorité des marchés financiers (the “AMF”) recently launched penal proceedings against a firm of damage insurance consultants that was acting as a damage insurance firm.
http://jlne.ws/JR38JJ

Securities Industry Examines Faster Payment For Stock And Bond Trades – DTCC, With The Guidance Of SIFMA, Oversees Cost-Benefit Analysis For Shortening The Time Period Between Trade Execution And Settlement Date
http://jlne.ws/JR39x1

IOSCO: Final Communique On The 37th Annual Conference
http://jlne.ws/JR3901

Investments – Indexes – Managed Futures – Managed Funds

Ex-Société Générale commodity traders plan discretionary hedge fund for end of 2012
Vita Millers – Hedge Funds Review
Former Société Générale commodity traders plan to launch a hedge fund in Q4 to take advantage of an expected increase in investor appetite for commodities. The fund will combine three strategies.
http://jlne.ws/JR39x6

Morgan Stanley’s Housing Chief Is Quitting To Launch His Own Buy-To-Rent Fund
Business Insider
( Reuters ) – Oliver Chang, head of U.S. housing strategy at Morgan Stanley , who has written more about foreclosed homes as an investment opportunity than any other Wall Street analyst, is leaving his firm to start his own buy-to-rent housing fund.
http://jlne.ws/JR39x7

Singapore’s low taxes lure Trafigura
By Javier Blas in London and Jeremy Grant in Singapore – Financial Times
Singapore has enticed Trafigura, one of the world’s biggest commodities trading houses, to move its legal headquarters from Switzerland to the Asian city state, highlighting the attractions of its low-tax regime and proximity to China.
http://jlne.ws/JR39xa

Horizon Cash Management Hires Michael Markowitz as CIO
Horizon Cash Management LLC, the leading investment advisor specializing in active cash management for the alternative investment industry, today has announced the appointment of Michael Markowitz as Chief Investment Officer.
http://jlne.ws/JTU3xC

REPORT: Hedge Fund Manager Boaz Weinstein Up 16% This Month
Business Insider
Hedge fund manager Boaz Weinstein, the founder of Saba Capital and former co-head of credit trading at Deutsche Bank , is said to be killing it this month.
http://jlne.ws/JR39xd

UPDATE 1-Ex-Millennium Collison shuts Asia hedge fund -sources
Reuters via Yahoo! Finance
Singapore-based Orvent Asset Management has shut its $130 million event-driven hedge fund after its Swedish seed capital investor pulled out at the end of April, two sources with direct knowledge of the matter said.
http://jlne.ws/JR39Nu

EDHEC-Risk Research Shows That Dynamic Portfolio Strategies Can Provide Solutions To Corporate Pension Fund Challenges
A new publication entitled “Dynamic Investment Strategies for Corporate Pension Funds in the Presence of Sponsor Risk,” produced as part of the BNP Paribas Investment Partners research chair on asset-liability management and institutional investment management at EDHEC-Risk Institute, shows that sophisticated dynamic allocation strategies can usefully be implemented by pension funds.
http://jlne.ws/JR39gs

HEDGE FUNDER: NASDAQ’s Facebook IPO Screw-Up Saved Normals From Losing Their Shirts
Business Insider via Yahoo! Finance
The IPO process only worked because it was broken.
http://jlne.ws/JR39NF

Vanguard Picks London Stock Exchange And FTSE For European ETF Debut
http://jlne.ws/JR39NJ

Dow Jones Indexes To Launch The Dow Jones Parala Macro Allocation Indexes
http://jlne.ws/JR39gB

STOXX Changes Composition Of Benchmark Indices – Results Of The First Regular Quarterly Review To Be Effective On June 18, 2012
http://jlne.ws/JR39gE

ISDA Americas Credit Derivatives Determinations Committee: Houghton Mifflin Harcourt Publishing Company Bankruptcy Credit Event
http://jlne.ws/JR39gI

Technology News

CQG and Continuum Support Industry Development with FIX Protocol Limited Membership
CQG, together with its Continuum division, joins other industry leaders in supporting the FIX Protocol through its FIX Protocol Limited (FPL) membership. As a member of FPL, CQG and Continuum hope to expand their influence within the FIX community and strengthen the Continuum platform.
http://jlne.ws/JR3ccb

Bloomberg Acquires PolarLake And Launches EDM Services
http://jlne.ws/JR3a4g

Media News

Facebook, Blodget And The Return Of The Internet Bubble
Forbes
Henry Blodget, the Global Research Settlement and a hot Internet IPO. Where are you Eliot Spitzer?
http://jlne.ws/JR3akD

Google Privacy Inquiries Get Little Cooperation
NY Times
http://jlne.ws/JR3csP

Reports

Briefing.com Economic Calendar
http://www.briefing.com/Investor/Public/MarketAnalysis/Calendars/EconomicCalendar.htm

USDA Today
http://www.nass.usda.gov/Publications/index.asp

CBOE Events Calendar
http://www.cboe.com/AboutCBOE/EventCalendar.aspx

Economic Release Calendar
The Economic Release Calendar (PDF) is a schedule of government, academic and industry economic releases, provided as a service to CME customers.
http://www.cmegroup.com/tools-information/calendars/

Asia-Pacific News

China plans brokerage reforms to create its own Goldman Sachs
International Business Times
China is rolling out sweeping brokerage reforms to nurture future global investment banks that officials hope could eventually compete with the likes of Goldman Sachs and Morgan Stanley , a regulatory document showed.
http://jlne.ws/JR3csW

Singapore Exchange launches Indonesia equity futures
Reuters via Yahoo! Finance
SINGAPORE, May 22 (Reuters) – Singapore Exchange Limited (SGX) said on Tuesday that it will launch the firstever offshore Indonesian equity futures contract in June.
http://jlne.ws/JR3cJk

SGX offers MSCI Indonesia Futures from 11 June
Singapore Exchange’s (SGX) MSCI Indonesia Index Futures will begin trading from 11 June 2012. The world’s first offshore Indonesian equity futures, the new contract is based on the MSCI Indonesia Index which is a widely followed Indonesian benchmark for institutional investors.
http://jlne.ws/JR3cJq

Industry Increases Automation in Taiwan, Reduces Operational Risk
Omgeo is working with investment managers across Taiwan to significantly improve trade processing efficiency among the local Taiwanese broker/dealer community. BlackRock, one of the world’s leading providers of investment, advisory and risk management solutions, is playing a key role in automating the Taiwanese market with Omgeo.
http://jlne.ws/JR3aRJ

Shanghai Stock Exchange: Notice Of Taking ETFs As Underlying Securities Of Margin Trading, Securities Lending
http://jlne.ws/JR3cZU

HKEx To Introduce Three New Stock Option Classes On 11 June
http://jlne.ws/JR3b8b

Frontier Markets

DIFC Widely Recognised By US Firms As The Ideal Platform To Access The Region’s Economies – DIFC Concludes Roadshow To The United States
http://jlne.ws/JR3b8g

Soaring Eagle Academy Raffle

2012-05-22T15:32:47Z

From Kevin Brennan of FCStone LLC:

Good day friends,

I am reaching out to you with an opportunity to, “Win a Car” or “$15,000!!!!!!! (Scroll down to the link below). This fundraiser will benefit Soaring Eagle Academy, a specialized school for children with Autism. My son Connor has attended this wonderful school since the summer of 2011 and the strides he has made are amazing!!!!

Thank you for your consideration.

https://soaring.ejoinme.org/?tabid=360816

May 22, 2012: Swaps Clearinghouses Said Set for Systemic Designation by U.S.; Nasdaq Chief Blames Software for Delayed Facebook Debut; Regulator spurred in push for swaps rules

2012-05-22T15:32:11Z

Some swaps clearinghouses are set to go on the “Too big to fail” list in the USA. Facebook-related finger pointing increases, and Nasdaq’s chief has his pointed at software designers to explain how his exchange’s order handling failed to meet the market’s needs. US banks are stung as the CFTC’s Gary Gensler says their offshore branches probably wouldn’t be exempt from Dodd-Frank regulation. In the top box today, definitive analysis demonstrates that Glass-Steagall’s return will absolutely help improve the safety of the markets. Or not.

Observations – Statistics – Commentary

DTCC signals expansion into Asia
By Jeremy Grant in Singapore – Financial Times
The Depository Trust & Clearing Corporation, the US securities post-trade group, signalled expansion into Asia on Monday by picking Singapore as the site for its first data centre in the region to store electronic records of over-the-counter derivatives trades.
http://jlne.ws/KFimQX

**** I have a theory. I call it my Jeremy Grant is in Singapore so let’s do something there theory.

++++

Reinstating an Old Rule Is Not a Cure for Crisis
By ANDREW ROSS SORKIN – NY Times
Call it the Glass-Steagall myth. A meme around Glass-Steagall has been created, repeated so often that it has almost become conventional wisdom: the repeal of Glass-Steagall led to the financial crisis of 2008. And, the thinking goes, has become almost religious for some people, that if the law were reinstated, we would avoid the next crisis.
http://jlne.ws/Lo10mH

Bringing Back Glass-Steagall Would Rebuild Shattered Confidence In Wall Street
Forbes
Give the country a break. It can’t handle another financial meltdown. In 1929, again in 2000, and yet again in 2008, we’ve seen how those meltdowns are inevitable if the financial industry is left to its own devices.
http://jlne.ws/Lo10mK

**** No, wait, Yes, wait, I don’t know anymore.

++++

Phil Angelides: Pay No Attention to That Man Behind the Curtain
The Huffington Post
Jamie Dimon was hailed as the wizard of Wall Street. Until the revelation of JPMorgan Chase‘s disastrous derivatives bet, he was the man who supposedly could do no wrong. But, alas, even wizards are not all powerful, not in Oz and not when trading in financial derivatives.
http://jlne.ws/Lo106o

**** Isn’t there a more contemporary movie reference we can use? Jamie Dimon is no Avenger. Jamie Dimon is a mud blood wizard, something like that.

++++

Time to plan a velvet divorce for the euro
By Gideon Rachman – Financial Times
As I read the umpteenth article on the “Grexit”, a phrase from the film Marathon Man ran around my head. In this cult-thriller, Laurence Olivier plays a war criminal turned dentist who tortures Dustin Hoffman by drilling through his dental nerves without anaesthetic. As he does so, he asks repeatedly “Is it safe?”
http://jlne.ws/Lo12uV

**** OK, that is a movie reference I could have lived without.

++++

Computer Trading Takes Human Turn
By JENNY STRASBURG
When Robert C. Jones started working on Wall Street 30 years ago, few investors placed their faith—and made big trading bets—in computer-driven models.
http://jlne.ws/Lo12v0

++++

Nicole Wesch Joins Newedge as Global Head of PR
Newedge, a global leader in multi-asset brokerage and clearing, today announced the appointment of Nicole Wesch as Global Head of Media and Public Relations. Ms. Wesch is based in the company’s London office and is responsible for leading Newedge’s PR activities internationally.
http://jlne.ws/Lo12uS

++++

Raymond J. Learsy: Does JPMorgan’s Derivatives Fiasco Portend The Collapse Of Crude Oil and Gasoline Prices?
The Huffington Post
According to The Wall Street Journal, JPMorgan’s losses on what has been reported as big directional bets on credit derivatives, but never fully disclosed by JPMorgan, could reach $5 billion and counting. Along with credit derivatives and other commodities such as copper JPMorgan Chase is a behemoth trader in crude oil and petroleum products, both as physical product and its financial derivatives.
http://jlne.ws/Lo12v5

***JM: No. Next!

++++

Wall Street & Washington: More Partisan Gridlock
Clarke Camper – NYSE Euronext
Crystal balling the end of 2012 regarding the November election; Taxmageddon; and Dodd-Frank.
http://jlne.ws/Lo10mQ

++++

SEC’s Investigation Unit ‘Outgunned, On A Roll’
NPR
The Securities and Exchange Commission (SEC) – once accused by a whistle blower of not being able to find ice cream at a Dairy Queen – is experiencing something of a culture shift. Last year the agency filed a record 735 enforcement actions and collected nearly a billion dollars in penalties from companies with SEC violations.
http://jlne.ws/Lo12Lo

++++

Calm Seas Can Mask Market Risks That Remain
BY FRANCESCO GUERRERA – WSJ
Whether you are a whale, a squid or one of the smaller fish swimming in the investing sea, “yield” has been hard bait to find. The hunt for the elusive return that can vault fund managers above rivals and benchmarks as well as give investors that bang-for-their-buck feeling is dominating market psychology and driving its behavior. With the Federal Reserve keeping interest rates close to zero to stimulate a sluggish economy, those looking for yield have had to move toward risky assets.
http://jlne.ws/Lo12Lt

++++

The Case of the Missing Skills
By CATHERINE RAMPELL – NY Times
More than half of American employers reported having difficulty filling positions because of a lack of suitable skills in 2010, one of the highest shares for developed countries.
http://jlne.ws/Lo10mW

++++

MarketsWiki Page of the Day
Andy Coyne
http://jlne.ws/Lo131T

++++

MarketsWiki Recent Updates

People

Natasha de Terán; Jessica Titlebaum; Gil Mandelzis; Andy Coyne; Barry Vasudevan; Nicole V. Rohr; John Denza; Gary Delany; Hazem Dawani

Companies, Organizations and Groups

Traiana

Miscellaneous

Job Postings; Group of 8

Statistics

23,870,270 pages viewed, 6,868 articles, 140,938 edits
MarketsWiki Statistics
_______________________________________________________

Lead Stories

Swaps Clearinghouses Said Set for Systemic Designation by U.S.
By Cheyenne Hopkins, Silla Brush and Ian Katz
A panel of U.S. regulators plans to designate some swaps clearinghouses as systemically important as soon as tomorrow, putting them under heightened supervision, according to two people familiar with the panel’s work.
http://jlne.ws/Lo131X

Nasdaq Chief Blames Software for Delayed Facebook Debut
By Nina Mehta – Bloomberg
Nasdaq OMX Group Inc. (NDAQ), under scrutiny after shares of Facebook Inc. were hit by delays and mishandled orders on its first day, blamed “poor design” in the software it uses for driving auctions in initial public offerings.
http://jlne.ws/Lo1322

Regulator spurred in push for swaps rules
By Shahien Nasiripour in Washington – Financial Times
US banks were dealt a blow on Monday after the main US swaps regulator said new rules will probably apply to overseas branches of America’s lenders and the affiliates they guarantee.
http://jlne.ws/Lo10Do

Regulators Explore Dodd-Frank Powers To Rescue ‘Another AIG’
By Katy Burne Of DOW JONES NEWSWIRES
Federal regulators tasked with ensuring the safety and soundness of the U.S. financial system have started exploring new powers they have to address the failure of a large and interconnected nonbanking institution that the supervisors may deem “too big to fail.”
http://jlne.ws/Lo1327

Insight: Morgan Stanley cut Facebook estimates just before IPO
International Business Times
In the run-up to Facebook’s $16 billion IPO, Morgan Stanley, the lead underwriter on the deal, unexpectedly delivered some negative news to major clients: The bank’s consumer Internet analyst, Scott Devitt, was reducing his revenue forecasts for the company.
http://jlne.ws/Lo13iq

As Facebook’s Stock Struggles, Fingers Start Pointing
By MICHAEL J. DE LA MERCED, EVELYN M. RUSLI and SUSANNE CRAIG – NY Times
Wall Street is playing the Facebook blame game. As shares of the social network tumbled in their second day of trading, bankers, investors and analysts wondered what had gone wrong with the initial public offering of Facebook, the most highly anticipated technology debut in years.
http://jlne.ws/Lo13ix

Jamie Dimon Shows Some Love for Volcker Rule
By BEN PROTESS – NY Times
Jamie Dimon has a love-hate relationship with the Volcker Rule. On Monday, he was showing the love.
http://jlne.ws/Lo13iA

Fitch Downgrades Japan
By WILLIAM SPOSATO – WSJ
Fitch Ratings downgraded Japan’s sovereign rating to A-plus and said it was maintaining a negative outlook due to the “leisurely” pace of the county’s efforts to remedy its dire fiscal situation. The firm’s long-term foreign-currency rating had been AA and its local currency issuer default rating had been AA-minus.
http://jlne.ws/Lo11af

Top U.S. Money-Laundering Regulator Dismissed
BY DAMIAN PALETTA – WSJ
The Treasury Department has dismissed the country’s top anti-money-laundering regulator from his post, people familiar with the matter said, a rare move that the Obama administration isn’t explaining.
http://jlne.ws/Lo13yT

Environmental Trading News

G-8 to Eliminate Fossil Fuel Subsidies, Curb Climate Pollutants
ENS
Leaders of the world’s most developed economies, the Group of Eight, have agreed to phase out government subsidies for coal, oil and gas and pursue sustainable energy and low carbon policies “in order to tackle the global challenge of climate change.”
http://jlne.ws/K8qzus

**RKB – Camp David declaration: http://jlne.ws/JxRE7m

President Obama, Other G8 Leaders Commit to Cutting Short-Lived Climate Pollutants
Institute for Governance & Sustainable Development Development
Press Release
President Obama announced Saturday at the conclusion of the G8 Summit at Camp David, Maryland that the G8 leaders have committed to cutting short-lived climate pollutants to mitigate near-term climate change, save lives, and improve crop yields, and have joined the new Climate and Clean Air Coalition for Reducing Short Lived Climate Pollutants (CCAC).
http://jlne.ws/KGCwu0

**RKB — President Obama’s G-8 Closing remarks: http://jlne.ws/JAH8BS

Business leaders downplay Rio influence
Business Green
Businesses have little faith that next month’s international climate talks in Rio will see much progress and expect private sector initiatives to have more of an impact, according to a new survey of chief executives.
http://jlne.ws/JLVUXg

For more environmental trading news, subscribe to the Environmental Markets version of the John Lothian Newsletter edited by Jim Kharouf.
Visit http://www.jlnenvironmental.comto subscribe.

Exchange & ECN News

Nasdaq Confronts Liability On Traders’ Losses In Facebook IPO
By Jacob Bunge Of DOW JONES NEWSWIRES
Nasdaq OMX Group Inc. on Monday faces demands from irate brokers and traders that want the exchange group to make up losses driven by its mishandling of Friday’s initial public offering of Facebook Inc.
http://jlne.ws/Lo11am

Clearstream and Iberclear to develop collateral management service for Spain
Iberclear, the Spanish central securities depository and subsidiary of BME (Bolsas y Mercados Españoles), and the international central securities depository Clearstream have signed an agreement to develop a new tri-party collateral management service for the Spanish market. The service will target the collateralisation of exposures in the Spanish market of Iberclear clients.
http://jlne.ws/Lo11ap

CME Group Clearing Advisory
HOLIDAY CLEARING SCHEDULE – MEMORIAL DAY, MAY 28, 2012
http://jlne.ws/Lo13yZ

CBOE, C2, CFE, And CBSX Trading Schedule For Memorial Day Holiday
http://jlne.ws/Lo11qN

Banks, Brokers & Dark Pools

JPMorgan to Suspend Stock Buybacks
By NELSON D. SCHWARTZ – NY Times
Two months after announcing a $15 billion share buyback program, JPMorgan Chase reversed course on Monday, saying it was halting the repurchases after the bank’s multibillion-dollar trading loss.
http://jlne.ws/Lo11qR

JPMorgan Veered From Hedging Practices at Competing Banks
Bloomberg
JPMorgan Chase & Co.’s biggest U.S. competitors say their corporate investment offices avoid the use of derivatives that led to the bank’s $2 billion loss and buy fewer bonds exposed to credit risk.
http://jlne.ws/Lo13Pn

JPMorgan Counterparty Platt Says Bank’s Loss May Widen
By Erik Schatzker and Stephanie Ruhle – Bloomberg
JPMorgan Chase & Co. (JPM) may face even bigger losses on faulty bets in credit markets if Europe’s debt crisis worsens, according to one of the hedge funds that took the other side of the trades.
http://jlne.ws/Lo11qX

JPMorgan’s Dimon: Losing trades were ‘isolated event’
CNN Money
JPMorgan Chase’s multibillion trading loss will be forgotten before the year is through, Chief Executive Jamie Dimon predicted Monday at the Deutsche Bank Global Financial Services Investor Conference.
http://jlne.ws/Lo11qZ

FDIC sues big banks over mortgage debt losses
Reuters via Yahoo! News
(Reuters) – The U.S. government has filed three lawsuits against a group of large banks over losses on soured mortgage debt purchased by two small Illinois banks that failed in 2009.
http://jlne.ws/Lo11r0

Goldman Sachs Spreads Tech Investments After Facebook
Bloomberg
Goldman Sachs Group Inc. (GS) , the bank which last week doubled its money from a 2010 bet on Facebook Inc. (FB) , is ramping up investments in Web startups, underscoring the allure of high-growth tech companies to financiers far from Silicon Valley.
http://jlne.ws/Lo13PC

Citigroup Disclosure Suit Cancelled
Zacks via Yahoo! Finance
Citigroup Inc. and its Chief Executive Vikram Pandit achieved a dismissal of a lawsuit that indicted them for not disclosing its risk during the financial meltdown in 2008, according to a Reuters report.
http://jlne.ws/Lo13PF

Icap unveils top brass across FX and Traiana
By Luke Jeffs – Reuters
ICAP has announced a swathe of senior management changes across its foreign exchange and post-trade systems units, another reshuffle at the British broker as it gears up for regulatory reforms.
http://jlne.ws/Lo145T

RBC Registers $12 Billion Covered-Bond Program After SEC Letter
Bloomberg
Royal Bank of Canada won permission from the Securities and Exchange Commission to issue covered bonds as publicly registered securities in the U.S., potentially broadening the pool of investors for debt now sold through private placements.
http://jlne.ws/Lo11Hp

Bank Of America’s Brian Moynihan Says Universal Banking Model Isn’t Dead
Forbes
There’s been a lot of talk about the return of Glass Steagall but Bank of America CEO Brian Moynihan thinks the universal banking model is crucial for his business.
http://jlne.ws/Lo145U

Jefferies Expands Its Footprint in European Restructuring
Business Wire
Jefferies today announced the hiring of Lyndon Norley as a Managing Director and Head of European Restructuring & Recapitalization Investment Banking. He is based in the firm’s
http://jlne.ws/Lo11Hs

Deutsche Bank’s Jain: Europe Has Made ‘Tremendous Progress’ In Recent Months -CNBC
DOW JONES NEWSWIRES
Deutsche Bank AG (DB) investment-banking chief Anshu Jain, who will become co-chief executive in June, said in an interview with CNBC that outside of Greece, the situation in Europe is “encouraging,” with “tremendous progress” in recent months.
http://jlne.ws/Lo1465

Corzine Pay Plan Topped $8 Million
BY PATRICK FITZGERALD AND MIKE SPECTOR – WSJ
MF Global Holdings Ltd. approved more than $8 million in compensation for former Chief Executive Jon S. Corzine in the year before the firm’s collapse and a shortfall in customer funds estimated at $1.6 billion.
http://jlne.ws/Lo146a

Prominent Team Of Capital Markets Experts Further Boosts BGC Partners’ / Newmark Grubb Knight Frank’s Growing Real Estate Platform
BGC Partners, Inc., a leading global brokerage company servicing the wholesale financial and property markets, today announced the appointments of Mark F. Brown, Jeremy D. Stoler, N. Dante LaRocca, and John B. Tesoriero, who add to BGC/Newmark Grubb Knight Frank’s growing roster of leading professionals within its commercial real estate platform.
http://jlne.ws/Lo14mo

Final Reminder: BGC Partners to Host Investors and Analysts on Wednesday May 30, 2012
http://jlne.ws/Lo14mq

Morgan Stanley Smith Barney Launches Customized Edition of It’s A Money Thing! A Girl’s Guide to Managing Money
http://jlne.ws/Lo14ms

Regulatory News

CFTC Confirms Investigation Into JP Morgan
By Katy Burne Of DOW JONES NEWSWIRES
The Commodity Futures Trading Commission has launched a formal investigation into trades that caused J.P. Morgan Chase & Co. (JPM) to report $2 billion in losses earlier this month. CFTC spokesman Steven Adamske, who confirmed the investigation early Monday, said the agency “could not share any additional information at this time” with regard to the specifics of its probe.
http://jlne.ws/Lo14mz

CFTC Chief Criticizes Swaps Bill Post-J.P. Morgan
Dow Jones
The nation’s top commodities regulator on Monday said he was concerned about legislation under consideration in the House that would exempt derivatives transactions made by offshore branches of a U.S. bank from regulation required by the Dodd-Frank Act.
http://jlne.ws/Lo12es

SFO in ‘urgent’ review of Tchenguiz case
By Ed Hammond and Caroline Binham in London – Financial Times
The Serious Fraud Office said on Tuesday that it is reviewing its investigation and status of Vincent Tchenguiz, the property tycoon, “as a matter of urgency” after new material raised questions over his suspected role in the collapse of Iceland’s Kaupthing bank.
http://jlne.ws/Lo14mA

SEC Charges Former Yahoo Executive And Former Ameriprise Manager With Insider Trading
http://jlne.ws/Lo12ex

Keynote Address On The Cross-Border Application Of Dodd-Frank Swaps Market Reforms Before The 2012 FINRA Annual Conference, CFTC Chairman Gary Gensler
http://jlne.ws/Lo14mG

Richard G. Ketchum, Chairman And Chief Executive Officer, FINRA, FINRA Annual Conference, Washington, DC, Monday, May 21, 2012
http://jlne.ws/Lo14mH

Gupta ‘Threw Away His Duties,’ Prosecutor Says in Opening
Bloomberg
Rajat Gupta , who was a director at Goldman Sachs Group Inc. (GS) , “threw away his duties” when he tipped hedge-fund co-founder Raj Rajaratnam to news that the bank would get a $5 billion investment, a prosecutor told jurors.
http://jlne.ws/Lo15a0

Galleon prosecutor aims to cement legacy in U.S. Gupta trial
Reuters via Yahoo! News
It was during a quiet afternoon in the sixth week of the insider-trading trial of hedge fund billionaire Raj Rajaratnam that prosecutor Reed Brodsky sprang one of those rare surprises usually seen only in the movie version of a courtroom drama.
http://jlne.ws/Lo15a1

FINRA Suspends, Orders Pennsylvania Woman to Pay $200K in Restitution
Cantone Research Inc. and Christine L. Cantone submitted an Offer of Settlement in which the firm was censured, fined $25,000, $10,000 of which was jointly and severally with Christine Cantone, and ordered to pay a total amount of $200,000 in partial restitution to customers, jointly and severally with Christine Cantone.
http://jlne.ws/Lo14CW

Tribunal Upholds UK’s Financial Services Authority Decision To Ban And Fine Former UBS Advisers £1.3m For Not Being Fit And Proper In Relation To An Unauthorised Trading Scheme
http://jlne.ws/Lo15a6

ASIC’s forward plan for insolvency industry
http://jlne.ws/Lo14D2

New Zealand’s Financial Markets Authority Consultation On Disclosure Of Non-GAAP Financial Information
http://jlne.ws/Lo14Da

Autorite Des Marches Financiers: Extension Of Transaction Reporting Requirements To OTC Derivatives
http://jlne.ws/Lo15a9

Investments – Indexes – Managed Futures – Managed Funds

Unusual ETF Redemption Adds To Investors’ Nerves
By Katy Burne Of DOW JONES NEWSWIRES
An unusual $788 million trade that stripped an exchange-traded fund of 6.5% of its assets–and caused a record one-week decline in assets of the entire market for junk bond ETFs–has long-term investors nervous that similar arcane practices will come at their expense.
http://jlne.ws/Lo14Tt

Barclays to sell $6.1BN stake in BlackRock
Associated Press via Yahoo! News
Britain’s Barclays Bank PLC said Monday it intends to dispose of its entire 19.6 percent stake in the U.S. asset management company BlackRock Inc., valued at $6.1 billion.
http://jlne.ws/Lo15ae

Institutional Investors Spur Hedge Funds To Grow Operational Infrastructure And Increase Transparency, Says AIMA/KPMG Survey
New global report by KPMG and AIMA covered 150 managers with $550bn in assets under management
http://jlne.ws/Lo15qt

Man Group to Buy Hedge Fund-of-Funds Manager FRM Holdings
Bloomberg
Man Group Plc, the world’s largest publicly traded hedge fund, agreed to buy FRM Holdings Ltd., adding $8 billion of assets invested in other hedge fund managers as its own stock price sinks.
http://jlne.ws/Lo15qu

5 hedge fund stars, 5 perspectives
CNN Money
From John Paulson to Daniel Loeb, the best of the best from Maneet Ahuja’s new book The Alpha Masters: Unlocking the Genius of the World’s Top Hedge Funds.
http://jlne.ws/Lo15qv

Wall Street Strategists Are Getting Wishy-Washy
Business Insider
This morning, UBS’s US Equity Strategy team led by Jonathan Golub published a report titled Cautious But Constructive . That’s Wall Street-speak for “we kinda like stocks, but we’re also scared to death of them.”
http://jlne.ws/Lo15qy

Ray Dalio of Best-Performing Hedge Fund Interview with Barron’s
Ray Dalio, who last year usurped the title of all-time best-performing hedge fund manager from George Soros, makes profitable bets based on his understanding of the world economy. He explains what he is seeing going on in the macro picture now with Barron’s:
http://jlne.ws/Lo14TH

Susquehanna Financial Group, LLLP Announces Tom Claps in New Role as Litigation Desk Analyst
http://jlne.ws/Lo15qB

iShares Plans LatAm Bond ETF
http://jlne.ws/Lo15qH

Semi-Annual Changes to the NASDAQ OMX CRD Global Sustainability Index
http://jlne.ws/Lo17Pa

Technology News

RTS Announces Readiness for Eurex’s New Trading System
RTS Realtime Systems Group (RTS), a leading global trading solutions provider, today announced that it is preparing for full support of Eurex’s new trading system. With this support, RTS will help global clients achieve an easy transition to the new system Eurex will introduce in December, pending approvals.
http://jlne.ws/Lo15GZ

GreySpark Partners Releases Detailed Analysis Of OMS And EMS Offerings
Research Identifies Need For Specialised And Sophisticated Systems – New Regulation, Increased HFT And Required Efficiency Shape Vendor Offerings
http://jlne.ws/Lo17Pe

Media News

Bloomberg TV’s Stephanie Ruhle Likes To Eat Erik Schatzker’s Lunch For Breakfast
Business Insider
Bloomberg TV’s Stephanie Ruhle, a former managing director at Deutsche Bank, has become a star at the financial news network. We asked her to take our Clusterstock questionnaire. Check out her responses below.
http://jlne.ws/Lo15H7

Reports

Briefing.com Economic Calendar
http://www.briefing.com/Investor/Public/MarketAnalysis/Calendars/EconomicCalendar.htm

USDA Today
http://www.nass.usda.gov/Publications/index.asp

CBOE Events Calendar
http://www.cboe.com/AboutCBOE/EventCalendar.aspx

Asia-Pacific News

Chi-X Japan Launches Hosted Risk Controls Platform
Chi-X Japan Limited, a wholly owned subsidiary of alternative trading venue operator Chi-X Global Holdings LLC, today announced the introduction of its Hosted Risk Controls (HRC), becoming the first market centre in Japan to offer this service.
http://jlne.ws/Lo17Pj

Exclusive: U.S. lets China bypass Wall Street for Treasury orders
Reuters
China can now bypass Wall Street when buying U.S. government debt and go straight to the U.S. Treasury, in what is the Treasury’s first-ever direct relationship with a foreign government, according to documents viewed by Reuters.
http://jlne.ws/Lo17Pn

SGX offers MSCI Indonesia Futures from 11 June
MarketWatch
Singapore Exchange’s (SGX) MSCI Indonesia Index Futures will begin trading from 11 June 2012.
http://jlne.ws/KjcvPK

Huatai-PineBridge Completes US $5.3 billion Exchange Traded Fund Initial Public Offering
Business Wire
PineBridge Investments, the global multi-asset class investment manager, is pleased to announce that its China joint venture, Huatai-PineBridge Fund Management Co , successfully launched its CSI 300 ETF product in Mainland China, raising US$5.3 billion in its initial public offering.
http://jlne.ws/Lo17Po

Chinese tycoon jailed after death sentence revoked
Channel 8 San Diego
A former Chinese tycoon who was convicted of illegally raising money for her business was sentenced Monday to prison after China’s supreme court overturned a death sentence following a public outcry.
http://jlne.ws/Lo185E

Japan seeks to get in on act investing in Myanmar
Reuters
Japan will start negotiations on an investment treaty with Myanmar on Wednesday, the trade ministry said, as corporations around the world scramble to do business in one of the last frontier markets in response to encouraging political reforms.
http://jlne.ws/Lo185H

Koreans Need to Recoup Woori Funds Soon, Regulator Says
Bloomberg
More than 10 years after South Korea spent $11 billion bailing out its weakest banks, taxpayers are still waiting to get their money back. It’s time to fix that, says Kim Seok Dong, the nation’s top financial regulator.
http://jlne.ws/Lo185M

Thai Bourse Visits Myanmar For Future Capital Market’s Cooperation
Charamporn Jotikasthira, President of The Stock Exchange of Thailand (SET), together with other SET executives, were recently invited to visit U Hla Tun (6
http://jlne.ws/Lo185O

Shanghai Stock Exchange: Heavy Punch On New Share Speculation
http://jlne.ws/Lo185R

Hong Kong’s Securities And Futures Commission Calls Investors’ Attention To Recent Ordinance Amendments
http://jlne.ws/Lo185U

Hong Kong’s Securities And Futures Commission Introduces Measures To Facilitate Establishment Of FDRC
http://jlne.ws/Lo185V

Osaka Securities Exchange SPAN Parameter Updated (May 28, 2012 – Jun. 01, 2012)
http://jlne.ws/Lo16eg

HKEx Participates In Give & Gain Day 2012
http://jlne.ws/Lo16uA

Osaka Securities Exchange: SPAN Parameters For DJIA Combined Commodity
http://jlne.ws/Lo18mq

Frontier Markets

Bursa Malaysia Derivatives Launches Revamped Options On Index Futures
Bursa Malaysia Derivatives Berhad (BMD) has launched a revamped options contract based on Malaysia’s composite index futures (FKLI) to complement the index futures market and to provide traders with more hedging, arbitraging and trading choices.
http://jlne.ws/Lo16uO

CCFA Team Challenge Fundraising

2012-05-22T15:15:06Z

From Dave Macfadden:

Thank you for supporting me in my personal challenge to complete the Napa to Sonoma Wine Country Half Marathon on July 15, while raising money and awareness for the Crohn’s & Colitis Foundation (CCFA)! Through Team Challenge, I have committed to raising $3,900 to help the estimated 1.4 million Americans living with Crohn’s disease or ulcerative colitis. A minimum of 82 cents per dollar raised by CCFA goes directly to research and patient support. Your tax-deductible contribution will go toward curing Crohn’s and ulcerative colitis, and improving the quality of life of children and adults affected by these diseases.

Thank you again for your generous support!

http://www.active.com/donate/napa12illinois/NDMacfad

Special Report: Chicago Financial Community Readies For NATO

2012-05-17T10:34:42Z

On May 20-21 the NATO summit will take place in Chicago. Financial industry firms and exchanges have braced themselves for potential protests and traffic snarls, and even cyber attacks. While the vast majority of entities will conduct business as usual, off site work plans and contingency and disaster recovery maps have been put into place to ensure it’s business uninterrupted.

Five Minutes With ChicagoFIRST Executive Director Brian Tishuk

Brian Tishuk became the first executive director of ChicagoFIRST in February of 2004. At the non-profit organization – formed in 2003 to help financial firms in the Chicagoland business community to collaborate with one another and government to promote resilience for the organizations – he is responsible for forging a relationship between members and government to promote information sharing about employee safety and business continuity issues. He’s been very busy lately working with the current 31 firm members ahead of the NATO summit to be held in Chicago Sunday and Monday. Despite his schedule, he was able to talk with JLN Managing Editor, Christine Nielsen.

   Q: So what is ChicagoFIRST telling members of the Chicago financial community in reference to NATO?  

A: What we are doing with members is twofold. We have been providing opportunities since last fall to learn what the city is planning for the event so [members] can put together their security and continuity plan. We have sent out surveys, had related calls and meetings and discussed the surveys for operational plans. Executives like to know what other companies are doing.   

Members are taking several approaches. They are focusing on communication with employees. They want to make sure employees and executives understand what parts of the plan impact them.   

For many firms, some portion of a plan will involve working from home or working from alternate sites. Everybody is operating, though. Some banks will close a branch here or there, but other branches will be open.

  It’s being done for a couple of reasons. There will be some disruption in the area, even if there are no protests. There will be motorcades. marches, rallies, etc. that cause concern. This could make it difficult for people to commute.   

Most of the firms have home plans. [With the NATO summit] they will be testing them. A number of firms are looking at this as a good opportunity in that regard. If they have to report to their executives that something nefarious has happened, [having a plan] will put them in a better situation to do so.  

Some firms are doing business as usual, but they do have a contingency plan in place.

    Q: Is there a specific list of recommendations being made? Were these instructions derived from any similar events in the past?  

A: There has been a good deal of experience working from home. Certainly this got a spark when Avian Flu was coming in 2006. They developed work-from-home plans then. The financial regulators also released guidelines at that point, and so most of the members are very well versed in work-from-home plans.

   Q: What types of questions have you been getting from members of the community?

  A: Aside from planning-type questions, there’s a great deal of interest in knowing what protesters are planning. The protest community is a very fluid one, so some events are known about with very little lead time. We’ve been trying to keep everyone up to speed, watching social media.   

Right now it’s just a matter of being ready to act upon whatever comes their way. Our contribution is having daily communications about this. We’ll be working through the weekend to make sure they get the information they need.    

Q: Will there be a review next week to look at how the plans worked?  

A: We’ve spent a good amount of time putting together the planning process. Then you have the event. You look at what succeeded and what wasn’t contemplated that should have been learned. The one thing we have learned during the planning process is that a National Special Security Event is different from a regular emergency because you are dealing with national government as well as local government.    

Q: Is there anything else that members of the Chicago financial community or financial community outside of Chicago should know about preparation for NATO?

  A: The preparation has been as robust as it could be. It’s been very collaborative and cooperative. It’s all a go. It looks to be set up well enough to get the information needed in a timely fashion.

A Sample Of Organization Plans

National Futures Association
The NFA will be open and is allowing employees to telecommute, or if they wish to do so, take a personal day on Monday, May 21.

Chicago Board Options Exchange
During the week leading up to the summit and immediately after the summit (May 14th through May 22nd):

CBOE will operate during normal business hours.
There may be times that an individual will not be allowed to leave the building (not more than one hour) or not be allowed into the building without a valid CBOE ID.
Casual dress code will be in effect.

NYSE Liffe U.S.
Has a contingency notification and employees have been told that they can work from home on Monday. The exchange only has business development people in Chicago, no exchange mechanics.

3Points Communications
3Points reports that the firm will be open 24/7/364, but that they have a plan in place where their team can work from home if things “get hairy.”

CHX
The Chicago Stock Exchange will be operating under normal business hours, with most departments open from 8 a.m. to 5 p.m.

CME Group
Plans to keep all business operations running as normal and trading floors will remain open during normal business hours.

OIC/OCC
The Options Industry Council and the Options Clearing Corporation will be open during normal business hours.

Guides and Maps

The 2012 NATO Summit
ChicagoNATO.com
A guide to the world leaders who will be visiting Chicago,
http://jlne.ws/L7uIMN

Road Closures Announced
The U.S. Secret Service has announced its plans for road closures and parking changes for the Summit weekend.
From ChicagoNATO.com: http://jlne.ws/JTLqmx
From Chicago Sun-Times: http://jlne.ws/J8F9V0

Follow the Chicago NATO meetings and news on Twitter:
@ChicagoNATO

Metra unveils tough rules for NATO weekend
Crain’s Chicago Business
http://jlne.ws/IW7KIe

NATO Protest Guide
NATOProtest.org
http://jlne.ws/J0MxNl

May 17, 2012: Backlash to longer grain futures sessions; ICAP in talks to buy Plus Markets; Costs and investments cut LME profits

2012-05-17T14:56:10Z

The extended-hours trading in grain futures isn’t going away, and it appears that neither is the controversy that it is creating. Brokerage ICAP is discussing the possibility of taking over the otherwise-closing Plus Markets. LME’s annual income is down substantially on investments and rising costs. In a packed top box today, you’ll find a reminder about tomorrow’s MarketsWiki Spring Cleaning; community notes that include a death, an honor and a charitable request; and a JLN Options interview with Tony McCormick of BOX Options Exchange, talking about the possibility of after-hours options trading at the exchange.

Observations – Statistics – Commentary

No JLN blogs on Friday, in honor of MarketsWiki Day
Just a reminder that we will not be publishing JLN blog updates tomorrow (the John Lothian Newsletter will arrive as usual, however). Instead, the staff will be focused on MarketsWiki, cleaning up and improving its pages. With nearly 7,000 article pages full of content, we won’t get to them all, of course; so if you’d like to help out or suggest pages that need work, we’d welcome the contribution! See the notice further down in this box (look for the MarketsWiki balloons) to see how you can help!

Also, if you have not noticed recently, MarketsWiki has been on a hot streak. We are fast approaching 24 million page views after ending 2012 with 17.5 million page views since the start of the wiki. That is almost 6.5 million page views in less than 5 months. Recently we have seen days of 70,000 page views. We are doing in a month more than what we did the whole first year. So our spring cleaning is really important to help get pages up to date and represent our markets, institutions and people the most accurately we can.

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Longtime CBOT Member Fritz Guth passed away
From CME Group:

We regret to inform you of the passing of Fred “Fritz” Guth. Mr. Guth was a CBOT member from June 1954 to present. Memorial Service will be held Saturday, May 19, 2012 at 9:30 a.m. at the Incarnation Catholic Church, 5757 West 127th Street, Palos Heights, IL 60463.

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Not a Market Story
Dr. Patrick Hourigan was honored by the Geneva Lake West Chamber of Commerce as Citizen of the Year …for his integrity and humanity…he was especially instrumental in dealing with the crisis involving poisoned geese on the lakefront…his care for endangered species. Pat Hourigan is the godfather of my daughter, Katherine Grace Lothian. A great guy!

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From CME Group’s Elizabeth Gisch: CFF’s Great Strides Chicago 2012
Dear Friends,

We are preparing for the Cystic Fibrosis Foundation’s Great Strides walkathon on June 2 at Soldier Field! This will be the eighth consecutive year that Team Gisch is participating.

Of course, our inspiration is my Goddaughter and niece, Catherine Kitz, who just turned 17 in April. She is a Junior at Montini and is on the Varsity track team. We are so proud of Catherine and her many achievements, despite the many, ongoing challenges of this disease. Over the past year, typically every day, Catherine has taken numerous meds that have been developed through your donations and the work of the CF Foundation. In fact, the CF Foundation helped fund a major break-through: a new drug Kalydeco, recently approved by the FDA, has reversed the effect CF has on the lungs in people who have one particular version of the CF gene. It is the first drug that treats the underlying cause of CF. We are hoping that, with more research, this same drug will be modified for use by Catherine and others with her version of the CF gene. This exciting development has made our fundraising efforts even more important.

Please consider joining us in our fight for a cure for Cystic Fibrosis by making a 100% tax deductible donation at this link: http://www.cff.org/Great_Strides/TeamGischGisch6700

As always, our entire family is so very grateful for your generosity and support!

We thank you,
Elizabeth Gisch, Kate and Don Ogilvie, Peggy and Randy Zahora, the Kitz Family

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New Supervisory Board elected at Deutsche Börse AG
The shareholders of Deutsche Börse AG elected the company’s new Supervisory Board at the AGM today. The Supervisory Board members then elected Dr Joachim Faber as Chairman and Gerhard Roggemann as deputy. Faber takes over the office from Dr Manfred Gentz (70) who is retiring from the board. Elections were held for the entire Supervisory Board and Chair due to the expiry of the existing terms of office.
http://jlne.ws/KhAOLb

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GFI Group Voted Top Overall Broker In 2012 Energy Risk Awards
GFI Group Inc., a leading provider of wholesale brokerage, electronic execution and trading support products for global financial markets, has been named the 2012 Broker of the Year for Energy Risk magazine’s 16th Annual Awards.
http://jlne.ws/KhAP1L

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STREET MOVES: Nagy To Depart TD Ameritrade For New Venture
By Jacob Bunge Of DOW JONES NEWSWIRES
Christopher Nagy, head of order routing for TD Ameritrade Holding Corp. (AMTD), plans to depart the retail brokerage firm at the end of this month to set up a new consulting venture, he said Wednesday.
http://jlne.ws/KhB64T

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JLN Options Newsletter: A Chat with Tony McCormick, CEO of BOX, on the Exchange’s Proposal for After-Hours Options Trading
The Financial Times published a story on May 14 revealing that the BOX Options Exchange is developing a plan to trade U.S. stock options after the closing bell (see below under Lead Stories). JLN Options wanted to follow up with BOX’s chief executive, Tony McCormick, with some questions about the plan, so options editor Sarah Rudolph spoke with him by phone after having heard him speak on the Exchange Leaders panel at the Options Industry Conference in New Orleans.

Q: Has anyone tried after-hours trading of options before?

A: I’m trying to remember – I think a long way back, possibly in the late 1990s, the CBOE tried to put up a pre-market session for options and maybe the way it was structured it didn’t have any traction. I think it was at about the time the equity markets decided to do pre- and post-market trading.

But the equity world has had an after-hours market for a long time. That’s a pre-existing condition, because if the underlying wasn’t trading you wouldn’t be able to trade the option, of course.

Q: I saw one person on Twitter who thought the idea was a “no-brainer.” But in the article in the Financial Times, Ed Provost was quoted as saying: “Since individual equity options are a derivatives equities [sic] and are dependent on stock prices, post-market trade on an options exchange currently is not very feasible.” Why do you think he might say that, and someone else would think it’s a “no-brainer”?

A: I don’t know why, because equities trade post-market and that would be sufficient for the derivative to trade. That is not to say that all equities trade post market, but the big ones do. You obviously wouldn’t list on things that don’t trade.

Clearly you have to limit the availability of names and make sure the OCC can handle exercise and assignment instructions. It’s all about facilitating the process and making sure the options clear properly. With stocks that are traded in extended-hour sessions, the orders are only good during the extended hours. So you have to have set some rules around trading these options, similar to the rules for extended-hour equities. The brokerages would determine some of those.

The after-hour options would not be in a displayed quote environment. You would put in a limit order at a certain price and see if it gets acted on. If a buy limit matches a seller limit, it’s a trade. So it’s like an electronic bulletin board.

If you get participation with enough limit orders, you will have trade matches. If the contract is a success, you’ll attract enough retail interest that the professional community will start to look at that market too. Whether they would actually quote markets remains to be determined. But you wouldn’t need them to quote to make a market.

For the rest of the interview and news from the options sector, visit the JLN Options website at http://jlne.ws/K8A5fU

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Norway’s day traders take on the algos
By Michael Stothard in Stockholm – Financial Times
Sophisticated algorithmic trading systems have become the bane of an equity day trader’s life, reacting faster to news than any human can and spotting price irregularities across thousands of stocks at once. Yet despite the prevalence of these supposedly smart machines, some traders are making a tidy profit getting the better of these systems, which can make costly mistakes if they are not set up correctly or if their trading patterns can be understood.
http://jlne.ws/KhARqv

**** What, algos can lose?

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Statement By William J. Brodsky, Chairman And CEO, CBOE Holdings, Inc. On Illinois Pension Reform
William J. Brodsky, Chairman and CEO of CBOE Holdings, Inc., today issued the following statement regarding Illinois pension reform: “CBOE Holdings joins the Illinois State Chamber, the Civic Committee of the Commercial Club of Chicago, the Civic Federation and others in support of a call to action to reform Illinois’ pension laws and review Medicaid policy this legislative session.”
http://jlne.ws/KhARGS

**** Can’t wait for the Crain’s Chicago business editorial criticizing Mr. Brodsky again.

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US Comptroller Of Currency Warns Of Operational Risk At Banks
Dow Jones Newswires
A top U.S. banking regulator warned the risk that operational weaknesses could harm national banks is high and rising. Operations failures, including those stemming from faulty models used to assess market risk, are “currently at the top of the list of safety and soundness issues for the institutions we supervise,” Comptroller of the Currency Thomas J. Curry said in prepared remarks Wednesday at the Exchequer Club in Washington.
http://jlne.ws/KhARH3

**** Kind of late, huh?

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SEC’s Khuzami Set To Defend Settlement Practices
Dow Jones Newswires
The Securities and Exchange Commission‘s enforcement chief is set to defend the SEC’s heavy use of settlements in enforcement actions, including its practice of allowing defendants to settle charges while neither admitting nor denying wrongdoing.
http://jlne.ws/KhASur

“Quick action by law enforcement communicates to other potential wrongdoers that those who violate the law face swift and certain sanctions,” Khuzami said in prepared testimony for a U.S. House Financial Services Committee hearing.

***JM: A true win-win arrangement! The SEC gets paid; and the companies they regulate can plan ahead regarding the cost of a settlement and ensure that it doesn’t ruin the profit from the illegal activities.

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WILD New York Invitation: Join us for a wine tasting and to hear Denise Shull, author of Market Mind Games
WHO: Women in listed and OTC derivatives
WHAT: Wine Tasting, Speaker, & Membership Drive
WHEN: Wednesday May 23, 2012
5:30 pm: Sign-in, mingle, & enjoy a glass of sparkling wine
6:00 – 6:45 pm: Speaker: Denise Shull, TraderPsyches/The ReThink Group/Author of Market Mind Games

Topic: Your Brain on Risk: Surprising Findings from Decision Science
Denise Shull curates the relevant information in emotion neuroscience to bring us the latest in the rapidly-expanding world of perception, judgment, and decision-making science. She explains the important value of emotional context as well as the answer to “why (or how) did I do that again?”

6:45 – 8:00 pm: Enjoy wine tasting, light hors d’oeuvres, & book signing with Denise

WHERE: City Winery (in the Winery Room) ,155 Varick Street (corner of Varick and Vandam), New York, NY 10013, 212-608-0555
RSVP: Email us at events@womeninlistedderivatives.org by May 14th
COST: $10 – You can pay securely through PayPal here: http://jlne.ws/KuqBtI or by cash or check at the door

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MarketsWiki Spring Cleaning Party – May 18, 2012
Join the MarketsWiki staff on Friday, May 18 as we clean up our most popular pages and take suggestions from MarketsWiki users all day.

Help us by participating in one of three ways:

(1) Help us edit – Spend some time on May 18 to help update a page. We’ll give you (and your organization) a shout out in the newsletter and on the front page of MarketsWiki during the party. Don’t have a MarketsWiki account? You can start a FREE MarketsWiki account for this event. Send Jeff Bergstrom an email to get signed up. We’ll also have help available all day for those new to wiking (or are a bit rusty).

(2) Suggest a page to clean up – Tweet your suggestion to @MarketsWiki with the #MWParty hashtag on (or before) May 18. You can also suggest a page at http://jlne.ws/MWSuggest.

(3) Spread the word – Contact colleagues that might have suggestions or want to become MarketsWiki editors. For a quick explanation of MarketsWiki, send them our short animated video: http://jlne.ws/WhatIsMW. Use the the #MWParty hashtag on Twitter to help us spread the word about our newly updated pages on May 18.

We hope you’ll join us on May 18, and remember to watch our progress by following the #MWParty hashtag on Twitter or visiting MarketsWiki.com.

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MarketsWiki Page of the Day
Michael Warren
http://jlne.ws/Jw4LfF

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MarketsWiki Recent Updates

People

John J. Lothian; Susanna W. Jung; Glen Akin, Jr.; William D. Felder; Vickie L. Lambert; Michael Warren

Companies, Organizations and Groups

Eurex Credit Clear; Envex; European Energy Exchange AG; Penson Worldwide, Inc.

Products

ZCE Early Rice futures; ICE US Dollar Index; ICE Euro Index; ISE index options

Miscellaneous

The History of MarketsWiki; Upcoming Events; Renminbi

Statistics

23,626,577 pages viewed, 6,856 articles, 140,211 edits
MarketsWiki Statistics
_______________________________________________________

Lead Stories

Backlash to longer grain futures sessions
By Gregory Meyer in New York – Financial Times
Exchanges face a growing furore over a longer trading day in grain futures as traders fear it will lead to knee-jerk reactions to sensitive crop reports. The backlash puts CME Group, the biggest US futures exchange operator, in a delicate position as it fends off new competition in agriculture and balances the needs of farmers and grain handlers with electronic traders.
http://jlne.ws/KhARXC

ICAP in talks to buy Plus Markets
By Philip Stafford – Financial Times
ICAP, the world’s largest interdealer broker by market capitalisation, is in talks to buy Plus Markets Group, the UK exchange for fledgling companies that is planning to close after failing to secure a buyer.
http://jlne.ws/KhASL4

Costs and investments cut LME profits
By Jack Farchy in London – Financial Times
The London Metal Exchange suffered a 19 per cent drop in profits last year as higher costs and investments outweighed a sharp rise in trading volumes. The results highlight the challenges facing the 135-year-old exchange should it remain independent in an increasingly competitive and more stringently regulated industry. They also underline the dilemma for the LME’s shareholders, the banks and brokers that use it, as they decide whether or not to sell the exchange.
http://jlne.ws/KhAV9C

Settlement failures linger as regulation looms
Sophie Baker – Financial News
Improvements to settlements systems across the globe have failed to make an impact on trade failure rates, at a time when the industry is preparing for new regulations that will place higher emphasis on risk mitigation and the importance of a robust clearing infrastructure.
http://jlne.ws/KhAV9O

Spanish Banks Face Imminent Ratings Cut
WSJ
Moody’s Investors Service Inc. told several Spanish banks Thursday that it will lower their ratings in the coming 12 hours, Spanish newspaper Expansion reports, citing unidentified sources.
http://jlne.ws/KhAVqi

Banks are short $566bn, says Fitch study
By Brooke Masters, Chief Regulation Correspondent – Financial Times
The world’s 29 largest global banks will need to raise an additional $566bn in new capital or shed about $5.5tn in assets by 2018 to meet the new tougher Basel III bank capital standards, a new study by Fitch Ratings has found.
http://jlne.ws/KhAVGG

‘London Whale’ Said to Be Leaving JPMorgan
By JESSICA SILVER-GREENBERG and NELSON D. SCHWARTZ – NY Times
The $2 billion trading loss at JPMorgan Chase has claimed another victim. Bruno Iksil, the so-called London Whale at the center of the trading debacle, is expected to leave the bank, according to current and former colleagues. The timing of the departure is unclear.
http://jlne.ws/KhATOZ

JPMorgan still employs “whale” trader
Reuters via Yahoo! News
Bruno Iksil, the London-based JPMorgan Chase & Co trader known as the “whale” believed to have been involved in the company’s $2 billion loss in derivatives, is still employed by JPMorgan, a spokeswoman for the bank said on Wednesday.
http://jlne.ws/KhAVXh

From ‘Caveman’ to ‘Whale’
By GREGORY ZUCKERMAN – WSJ
Months before Bruno Iksil became famous as the “London whale,” the trader who contributed to a loss of more than $2 billion at J.P. Morgan Chase & Co., he earned a different nickname: the “Caveman,” for pursuing trades that rivals sometimes thought were overly aggressive but often led to huge profits.
http://jlne.ws/KhAU5H

FBI’s Mueller Confirms Probe Into JP Morgan Trading Loss
Dow Jones
The Federal Bureau of Investigation’s chief confirmed his organization has opened a probe into J.P. Morgan Chase and Co.’s (JPM) $2-billion-plus trading loss.
http://jlne.ws/KhAUma

European Central Bank will temporarily halt lending to some Greek banks
Denver Post
The European Central Bank said it will temporarily stop lending to some Greek banks to limit its risk as President Mario Draghi signaled that the ECB won’t compromise on key principles to keep Greece in the eurozone.
http://jlne.ws/KhAUmh

Cameron fears eurozone unravelling
By George Parker and Chris Giles – Financial Times
David Cameron, Britain’s prime minister, will on Thursday warn that the single European currency could unravel in a way that “carries huge risks for everyone” unless the eurozone’s 17 members move rapidly towards full fiscal and political union.
http://jlne.ws/KhAUCL

There’s No Gentle Way for Greece to Exit the Euro
BusinessWeek
Those who favor Greece’s exit from the euro like to argue that the transition from Europe’s single currency back to the drachma, or some newfangled scrip, need not devolve into chaos.
http://jlne.ws/KhAUT6

Anxious Greeks withdraw $894 million in one day
MSNBC
Political leaders in Athens were due to discuss an emergency government Wednesday to deal with a possible run on banks as it emerged Greeks withdrew almost $900 million in a single day, fearing their country could crash out of the euro currency by the end of the week.
http://jlne.ws/KhAUTk

Spain Debt Fight Intensifies as Valencia Test Looms: Euro Credit
Bloomberg
Spanish Prime Minister Mariano Rajoy’s bid to fight off the European debt crisis is about to intensify as his government wields new powers to tame the country’s indebted regions.
http://jlne.ws/KhAXhR

Environmental Trading News

EEX: First EIB Auction To Be Held On 7 June
http://jlne.ws/KhAXyc

Could a Carbon Tax Save Europe?
The Atlantic
Turmoil over budget cuts roils Greek streets. France elects an anti-austerity president. Even Germany’s Austerity Queen Angela Merkel faces electoral backlash. It appears Europeans are getting sick of tightening their belts. But when you can’t cut any more, there’s little else to do but hustle up more cash. For governments allergic to raising income taxes, a European Climate Foundation analysis released yesterday shows there’s a less painful way to slash deficits — one that could save the planet as it saves the economy. A carbon tax.
http://jlne.ws/JO2k4M

**JK – A quick to way to waste the goodwill feeling about helping the environment.

China injects vigour into carbon debate
Financial Times
This year is not turning out well for the climate change business. The pace of global climate talks is sluggish. Prices have collapsed in the world’s biggest carbon market. Eurozone woes have shoved environmental concerns well down the list of priorities for leaders worldwide.
http://jlne.ws/IZsleX

EU energy chief favors carbon at 12-18 eur/t
Reuters
European carbon prices should be at least twice their current value of just over 6 euros ($7.66) a metric ton (1.1023 tons) in order spur investment in cleaner technology, EU Energy Commissioner Guenther Oettinger said on Wednesday.
http://jlne.ws/Jg6qFd

For more environmental trading news, subscribe to the Environmental Markets version of the John Lothian Newsletter edited by Jim Kharouf.
Visit http://www.jlnenvironmental.comto subscribe.

Exchange & ECN News

China Financial Futures Exchange Expands Collaboration Efforts
By Jacob Bunge and Melodie Warner Of DOW JONES NEWSWIRES
The China Financial Futures Exchange this week sealed agreements with four Western exchange operators, aiming to tap the expertise of established markets following a surge in trading volume.
http://jlne.ws/KhB0tU

Chicago Board Options Exchange and China Financial Futures Exchange Sign Memorandum of Understanding
The Chicago Board Options Exchange (CBOE) and the China Financial Futures Exchange (CFFEX) announced today that they signed a Memorandum of Understanding (MOU), which establishes an open channel of communication and lays the foundation for future collaborative efforts between the exchanges. Executives from both exchanges signed the MOU today at a ceremony in Beijing, China.
http://jlne.ws/KhB0ua

HKEx May Win LME With China Card
Wall Street Journal Blogs
A new owner for the London Metal Exchange could be announced soon, and Hong Kong’s stocks-focused bourse, one of the three remaining bidders, sees it as the quick entry it is seeking into the commodities business.
http://jlne.ws/KhB0KA

Direct Edge May Separate Chairman, Chief Executive Roles
By Jacob Bunge Of DOW JONES NEWSWIRES
Electronic-stock-market company Direct Edge Holdings LLC could separate the roles of chairman and chief executive, following a similar move by a larger peer and prevailing trends in corporate governance. The Jersey City, N.J., market operator notified regulators of a change to its bylaws that will give directors of its exchanges flexibility to name a chairman who is not the CEO, though both roles continue to be held by William O’Brien.

Deutsche Boerse CEO: Merger Costs Include EU Legal Challenge Costs
Dow Jones
Deutsche Boerse AG’s expenses for the planned merger with NYSE Euronext, which eventually was vetoed by the European Union, include legal costs for challenging the EU decision, Reto Francioni, the exchange operator’s chief executive, told shareholders Wednesday.
http://jlne.ws/KhAYSQ

LME Clear to move into new premises
The London Metal Exchange (LME) plans to move LME Clear staff into dedicated offices close to the main premises in Q3 2012. The LME Clear team continues to expand as the selection processes for both the technology supplier and treasury partner reach the final stages.
http://jlne.ws/MnCFmB

NYSE Euronext Joins Discover America Partnership
http://jlne.ws/KhB1hs

Bulgarian Companies To Have Access To The Romanian Bourse
http://jlne.ws/KhB1hF

CME Group Clearing Advisory
Minimum Price Fluctuation Reduction for Petroleum Swap Futures Contracts
http://jlne.ws/KhAZpO

CME Clearing – New Product Advisory
Short Dated New Crop Corn and Soybean Options
http://jlne.ws/KhAZpU

CME Group Clearing Advisory
CDS New Release and CME CORE – Removal of 100k Notional Rounding for Margin Calculation of our CDS Products in New Release
http://jlne.ws/KhB25b

[CBOE] AIM “Opt-Out”
http://jlne.ws/KhAZGu

Direct Edge Regulatory Notice #12-03: Telemarketing Rules – Effective June 29, 2012
http://jlne.ws/KhAZWY

Burgundy CCP Interoperability With EuroCCP – Project Update
http://jlne.ws/KhB0dn

Banks, Brokers & Dark Pools

Lloyds Banking Said to Suspend Two Traders Amid Libor Probe
Bloomberg
Lloyds Banking Group Plc, the U.K.’s second-biggest government-backed lender, suspended at least two derivatives traders in a probe of potential interest-rate manipulation, two people briefed on the matter said.
http://jlne.ws/KhB0dD

Goldman, Merrill E-Mails Show Naked Shorting, Filing Says (Update 2)
By Karen Gullo – Bloomberg
Goldman Sachs Group Inc. (GS) and Merrill Lynch & Co. employees discussed helping naked short-sales by market-maker clients in e-mails the banks sought to keep secret, including one in which a Merrill official told another to ignore compliance rules, Overstock.com Inc. (OSTK) said in a court filing.
http://jlne.ws/IXIYYn

Bankia hit by E1bn withdrawals report
By Alexandra Stevenson – Financial Times
Shares in Bankia, the Spanish bank that was part-nationalised last week, plunged by more than a quarter on Thursday morning, after a report that customers had withdrawn E1bn from the bank over the past week.
http://jlne.ws/KhB39g

Dimon Shows No Retreat: Bloomberg Businessweek Opening Remarks
Bloomberg
Jamie Dimon has the silver mane and piercing, gray-blue eyes of a chief executive officer from central casting, but he talks like one of his own charged-up traders.
http://jlne.ws/KhB3pD

JPMorgan cutting 20 from London trading office
Reuters
JPMorgan is cutting a group of investment bankers in its London operations, two sources familiar with the situation said, on top of any departures in the unit that caused its recent trading loss of more than $2 billion. The number of people affected is 20, one of the people said, a relatively small group in comparison to the Wall Street firm’s 8,000 people in London.
http://jlne.ws/KhB5Ou

Morgan Stanley fined over coding error
By Michael Stothard in Stockholm – Financial Times
Morgan Stanley has been fined Skr400,000 ($55,000) by Nasdaq OMX after a coding error in one of its client algorithms led to three separate breaches of exchange rules and a frantic few minutes of trading in Stockholm.
http://jlne.ws/KhB64M

Saxo Bank A/S Announces New Chairman of the Board
Marketwire via Yahoo! Finance
Saxo Bank, the parent company of Saxo Capital Markets, announced the Bank’s new Chairman of the Board after its board meeting yesterday. Dennis Malamatinas, currently Deputy Chairman of the Board, takes over from Kurt K. Larsen who has been Chairman since 2010.
http://jlne.ws/KhB6li

HSBC says turnaround plan on target, costs cut by $2 billion
Reuters via Yahoo! News
HSBC , Europe’s biggest bank, said it cut costs by $2 billion after one year of a 3-year turnaround plan, and is on target to meet its return on equity and other financial targets.
http://jlne.ws/KhB6lr

BofA pulling out of small-town America: report
Philly.com
Bank of America’s plan to trim its 5,700 US branches will likely include the sale of more small-market offices, and may also include a review of branches in “lower-income” areas, write SNL Financial LC’s Tahir Ali and Nathan Stovall in this report.
http://jlne.ws/KhB6BR

Barclays Expands Its Wealth And Investment Management Team In New York
PR Newswire via Yahoo! Finance
Barclays announced today that it has hired four Investment Representatives who will be based in New York in the Wealth and Investment Management division.
http://jlne.ws/KhB6Sq

Inter-Dealer Broker ICAP Reported To Be In Talks To Buy Plus Markets Group
http://jlne.ws/KhB4Ka

Bank Of England Quarterly Inflation Report Q&A – 16th May 2012 Press Conference Transcript
http://jlne.ws/KhB4Kp

Regulatory News

OCC’s Curry: Regulators Working To Define Hedging
Dow Jones Newswires
A top U.S. banking official Wednesday said regulators are working to define hedging, a key term in Washington this week amid questions about whether J.P. Morgan Chase & Co.’s more than $2 billion loss was the result of a move to hedge against losses or a bet aimed at generating big profits.
http://jlne.ws/KhB7FR

Proxy Fee Advisory Committee Proposes Recommendations On Proxy Distribution Fees – Recommendations Reflect The Views Of Issuers, Brokers And Investors And Propose To Streamline Proxy Fees And Make Them More Transparent To Issuers
The Proxy Fee Advisory Committee (PFAC), formed by the New York Stock Exchange, today published its recommendations for changes to the fees paid by public companies to banks and brokers for the distribution of proxy materials to shareholders who hold their stock in “street name.”
http://jlne.ws/KhB7G4

SEC Charges U.S. Perpetrators in $35 Million International Boiler Room Scheme
The Securities and Exchange Commission today charged a Hawaii resident and two firms he used to orchestrate a scheme in which he covertly founded small companies, installed management, and recruited overseas boiler rooms that pressured investors into buying their stock while he pocketed more than $2 million in consulting fees from proceeds of the fraudulent stock sales.
http://jlne.ws/KhB5xO

Federal Court in South Carolina Orders Ronald E. Satterfield and Nicholas and Patricia Bos to Pay over $7.5 Million for Fraud in Connection with a Forex Ponzi Scheme
http://jlne.ws/KhB7WB

FINRA Enhances BrokerCheck Capabilities
The Financial Industry Regulatory Authority (FINRA) today announced that it has added features to BrokerCheck to help users more easily access broker-dealer and investment adviser registration information. Several changes implemented by FINRA address recommendations made in a January 2011 study by the Securities and Exchange Commission (SEC).
http://jlne.ws/KhB8cZ

FINRA Warns Investors of Nutraceutical Stock Scams
The Financial Industry Regulatory Authority (FINRA) issued a new Investor Alert called Nutraceutical Stock Scams—Don’t Supplement Your Portfolio With These Companies to warn investors about stock scams related to companies selling everything from fortified foods and energy drinks to “natural” medicines.
http://jlne.ws/KhBb8A

Testimony Of U.S. Treasury Under Secretary For International Affairs Lael Brainard Before The House Financial Services Subcommittee On International Monetary Policy And Trade,
http://jlne.ws/KhBb8J

Testimony Of U.S. Treasury Deputy Assistant Secretary Lance Auer Before The House Financial Services Financial Institutions Subcommittee On Implementing Title I Of The Dodd-Frank Act: Regulating Ssystemically Important Nonbank Financial Institutions
http://jlne.ws/KhBbpb

Michael S. Gibson, Federal Reserve Director, Division Of Banking Supervision And Regulation – Systemically Important Financial Institutions And The Dodd-Frank Act – Before The Subcommittee On Financial Institutions And Consumer Credit, Committee On Financial Services, U.S. House Of Representatives, Washington, D.C., May 16, 2012
http://jlne.ws/KhBbFD

ESMA Chairman, Steven Maijoor, Delivered A Speech At IOSCO’s 2012 Annual Conference In Beijing
http://jlne.ws/KhBbW4

AMF And ACP Academic Symposium:
http://jlne.ws/KhBa4w

ASIC to launch new website for insolvency and deregistration notices
http://jlne.ws/KhBccL

Investors warned about dealing with Dellingworth Pty Ltd
http://jlne.ws/KhBct8

BCSC panel sanctions two men for illegally trading and distributing securities
http://jlne.ws/KhBaBy

Swedish Financial Supervisory Authority – Finansinspektionen – Revokes The Authorisation For Nordisk Kapitalfoervaltning
http://jlne.ws/KhBaBI

Swedish Financial Supervisory Authority – Finansinspektionen – Folksam LO Fond Receives A Remark And An Administrative Fine
http://jlne.ws/KhBd0i

New Zealand’s Financial Markets Authority: Unsolicited Offers – Guidance For Investors – What’s In Your Mailbox?
http://jlne.ws/KhBd0q

Goldman Sachs Lawyer From Sullivan May Testify on Gupta
Bloomberg
A Goldman Sachs Group Inc. (GS) lawyer from Sullivan & Cromwell LLP may testify at next week’s insider- trading trial of Rajat Gupta, a former director at the bank, a prosecutor said.
http://jlne.ws/KhBdgQ

Investments – Indexes – Managed Futures – Managed Funds

Man Worst as Private Funds Trail Markets: Riskless Return
Bloomberg
Man Group (EMG) Plc is leading declines among global investment firms as private-equity and hedge funds , the best-paid money managers, produce the worst returns for public shareholders.
http://jlne.ws/KhBdNW

JP Morgan’s $2 Billion-Plus Loss Came On Three-Legged Trade
By Katy Burne Of DOW JONES NEWSWIRES
The complex web of trades that saddled J.P. Morgan Chase & Co. (JPM) with at least $2 billion in losses had three key components, according to people familiar with the bank’s strategy. Now, rival traders, seeking to reap gains from J.P. Morgan’s losses, are scurrying to guess which parts the bank is unwinding, and how.
http://jlne.ws/KhBe4j

Cassina leaves Citadel Execution Services
By Philip Stafford – Financial Times
Matteo Cassina has left his role as president of Citadel Execution Services Europe, the trading arm of the Chicago-based fund manager. People familiar with the situation said Mr Cassina left on Wednesday. A spokesperson for Citadel confirmed that Mr Cassina had departed the firm.
http://jlne.ws/KhBgt9

No big insights at “best ideas” hedge-fund event
Reuters via Yahoo! Finance
A highly anticipated hedge-fund conference on Wednesday where managers are invited to share their “best ideas” with investors fell flat on that score.
http://jlne.ws/KhBekR

A Great Lesson From Jeff Gundlach On The Limits Of Hedging
Business Insider
Jeff Gundlach gave a presentation at the Ira Sohn conference today, and as always it was filled with incredibly colorful stories and vivid charts. This might have been his best lesson though.
http://jlne.ws/KhBeBk

CalPERS And GI Partners Launch $500 Million Fund To Buy Technology Advantaged Core Real Estate
http://jlne.ws/KhBeBx

Advisers move toward alternative investments-study
Reuters via Yahoo! Finance
Some U.S. financial advisers are steering away from traditional investments and looking to alternative portfolio allocations as their clients are more willing to take on risk, a study released on Wednesday showed.
http://jlne.ws/KhBeS2

Federal Open Market Committee Announces Revised Tentative 2012 Meeting Schedule And Tentative 2013 Meeting Schedule
http://jlne.ws/KhBf8r

Minutes Of The Federal Open Market Committee, April 24-25, 2012
http://jlne.ws/KhBhNC

Changes To The Composition Of The Oslo Bors Benchmark Index (OSEBX)
http://jlne.ws/KhBfFk

Technology News

WhenTech Partners With CQG for Trade Execution
WhenTech LLC, the premier provider of option pricing, analytics and risk management software solutions to the futures and commodities options industry, announced that its core product, WhenTech Markets, is now available with option trade execution capability through an integration with CQG, Inc.’s CQG Trader platform.
http://jlne.ws/KhBikv

Broadway Technology Set to Launch Turnkey Liquidity Aggregation, STP, and E-Commerce Solutions for Six Interest Rate Swaps Markets in June
Broadway Technology, LLC, a leader in high-performance trading solutions for top-tier global banks and hedge funds, announced today that in response to Dodd-Frank regulations and the emergence of Swap Execution Facilities (SEFs), Broadway is set to launch turnkey liquidity aggregation, straight-through processing (STP), and e-commerce solutions for six Interest Rate Swaps markets in June 2012.
http://jlne.ws/KhBiAZ

Verizon to scrap unlimited plans for 4G users
Chicago Tribune
Verizon Wireless plans to force customers to give up their unlimited data plans when they move to its high-speed wireless service.
http://jlne.ws/KhBiBf

Media News

Facebook IPO: Limit to Stock Orders When Trading Begins
By Jacob Bunge – Dow Jones
When Facebook shares open for trading Friday, individual investors hoping to ride any day-one pop in the stock initially won’t be able to buy at any cost.
http://jlne.ws/KhBgcm

Goldman to Cash Out $1 Billion of Facebook Holding in IPO
Bloomberg
Goldman Sachs Group Inc. (GS) and funds managed by the firm will sell about $1 billion of stock in Facebook Inc. (FB) ‘s initial public offering, cashing out almost half their stake after the social network doubled in value.
http://jlne.ws/KhBgcD

Here Are 10 Reasons Not to Buy Facebook Before You Buy It Anyway
By DAVID WEIDNER – WSJ
By now, you’ve probably made your mind up about Facebook Inc.’s initial public offering. You’re buying it—at any price and by any means necessary. No one is going to convince you otherwise. That’s fine.
http://jlne.ws/KhBj8a

Reports

Briefing.com Economic Calendar
http://www.briefing.com/Investor/Public/MarketAnalysis/Calendars/EconomicCalendar.htm

USDA Today
http://www.nass.usda.gov/Publications/index.asp

CBOE Events Calendar
http://www.cboe.com/AboutCBOE/EventCalendar.aspx

Asia-Pacific News

CITIC Securities Selects SunGard’s Asset Arena Investment Accounting Solution
CITIC Securities (CITICS) has chosen SunGard’s Asset Arena Investment Accounting solution as the accounting solution for its asset management business.
http://jlne.ws/KhBjoD

SunGard Launches New Solution to Help Automate Japanese Securities Lending
SunGard has extended its suite of securities finance solutions with the launch of Apex JSFC Trade Manager, which helps reduce the costs and increase the productivity of lenders participating in the Japan Securities Finance Corporation’s (JSFC) daily auction of securities lending requirements.
http://jlne.ws/Jyxlgc

SIFMA Testifies On Increasing Market Access For U.S. Financial Firms In China
http://jlne.ws/KhBm3S

Launch of Tokyo Stock Exchange’s Official Facebook Page
http://jlne.ws/KhBmkh

Nomura Hires Wendy Liu As Head Of China Equity Research
http://jlne.ws/KhBmAN

HKFE Announces Revised Margins For CNOOC Futures
http://jlne.ws/KhBmAW

HKEx: Stock Exchange Participants’ Market Share Report
http://jlne.ws/KhBmRk

Frontier Markets

DFSA Enters Into Agreement With China’s Banking Supervisor
The Dubai Financial Services Authority (DFSA), this week, entered into a supplementary agreement on co-operation with the China Banking Regulatory Commission (CBRC).
http://jlne.ws/KhBn7M

MARK MOBIUS: There Is A Huge Opportunity In Ghana
Business Insider
This year could prove an interesting one for Africa’s west coastal country, Ghana. Presidential and parliamentary elections are slated to be held by year-end, the results of which are almost sure to impact the shape of the country’s future.
http://jlne.ws/KhBnol

CEO Of The Tel-Aviv Stock Exchange To Ring The NASDAQ Stock Market Opening Bell To Commence The 5th TASE And NASDAQ Investor Conference At NASDAQ MarketSite
http://jlne.ws/KhBnEU

Bursa Malaysia Derivatives’ Total Contracts And Crude Palm Oil Futures Contracts Hit Historical Daily Volume High
http://jlne.ws/KhBkZJ

John Lothian Newsletter

May 25, 2012: Some frayed nerves as USDA grains data goes ‘live’; Big European funds dump euro assets; CFTC’s Gensler on JP Morgan: Firms Have ‘Right To Make A Bad Decision

First Read

JLN Interest Rates

MarketsWiki

Lead Stories

Regulatory

Exchanges & Trading Facilities

Hedge Funds & Managed Futures

Banks & Brokers

Clearing & Settlement

Indexes & Products

Technology

Enforcement

Environmental & Energy

Asia-Pacific

Frontier Markets

Futures for Kids Walk to Work raises £60,000 for 4 chidren’s charities

PBS Frontline: Six Billion Dollar Bet

May 24, 2012: CME, ICE Clearinghouses Designated Systemic by U.S. Panel; Oslo Bors to charge for excessive orders; Euro Zone Crisis Boils as Leaders Fail to Signal New Steps

First Read

JLN Options

MarketsWiki

Lead Stories

Regulatory

Exchanges & Trading Facilities

Hedge Funds & Managed Futures

Banks & Brokers

Clearing & Settlement

Indexes & Products

Technology

Enforcement

Environmental & Energy

Asia-Pacific

Frontier Markets

May 23, 2012: JPMorgan Joins MF Global in Lobbying Victories That Backfire; US looks at cutting settle lag on trades; CME Group Eliminated From LME Sale Process

Observations – Statistics – Commentary

Lead Stories

Environmental Trading News

Exchange & ECN News

Banks, Brokers & Dark Pools

Regulatory News

Investments – Indexes – Managed Futures – Managed Funds

Technology News

Media News

Reports

Asia-Pacific News

Frontier Markets

Soaring Eagle Academy Raffle

May 22, 2012: Swaps Clearinghouses Said Set for Systemic Designation by U.S.; Nasdaq Chief Blames Software for Delayed Facebook Debut; Regulator spurred in push for swaps rules

Observations – Statistics – Commentary

Lead Stories

Environmental Trading News

Exchange & ECN News

Banks, Brokers & Dark Pools

Regulatory News

Investments – Indexes – Managed Futures – Managed Funds

Technology News

Media News

Reports

Asia-Pacific News

Frontier Markets

CCFA Team Challenge Fundraising

Special Report: Chicago Financial Community Readies For NATO

Five Minutes With ChicagoFIRST Executive Director Brian Tishuk

A Sample Of Organization Plans

Guides and Maps

Related Stories

May 17, 2012: Backlash to longer grain futures sessions; ICAP in talks to buy Plus Markets; Costs and investments cut LME profits

Observations – Statistics – Commentary

Lead Stories

Environmental Trading News

Exchange & ECN News

Banks, Brokers & Dark Pools

Regulatory News

Investments – Indexes – Managed Futures – Managed Funds

Technology News

Media News

Reports

Asia-Pacific News