Observations - Statistics - Commentary
CFE TO INTRODUCE TRADING IN CBOE MINI-VIX FUTURES MARCH 2 CHICAGO, February 25, 2009 -The CBOE Futures Exchange, LLC (CFE) today announced that on Monday, March 2, it plans to launch trading in CBOE mini-VIX futures, a new contract which will be one-tenth the size of CFE's standard CBOE VIX futures contract.The CBOE Volatility Index (VIX), based on real-time S&P 500 Index (SPX) options listed on Chicago Board Options Exchange (CBOE ), reflects investors' consensus view of future expected market volatility of the S&P 500 Index.
"We expect that the mini-VIX futures contract will attract the attention of sophisticated investors and institutions who are looking for a smaller-scale play on implied volatility that's independent of the direction and level of stock prices, or a way to hedge equity returns, diversify portfolios, and spread implied against realized volatility," said CFE Managing Director Andrew Lowenthal. "As seen over the last year, the VIX has experienced some dramatic spikes, and a smaller VIX futures contract with proportionately lower margins may be more manageable for a wider variety of users."
http://www.cboe.com/AboutCBOE/ShowDocument.aspx?DIR=ACNews&FILE=cboe_cfe_20090225.doc
CBOE unit to offer fear-based futures
(Reuters) — The CBOE Futures Exchange, a subsidiary of the Chicago Board Options Exchange, said on Wednesday it plans to offer a new product tied to the so-called VIX, Wall Street's favorite barometer of investor fear. Trading in CBOE mini-VIX futures, a contract which will be one-tenth the size of the standard CBOE VIX futures contract, will debut on Monday, the CFE said.
http://www.chicagobusiness.com/cgi-bin/news.pl?id=33121
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Opening Day for New NYSE Amex Options Trading Floor On Monday, March 2, 2009, join us in celebrating the opening of the new NYSE Amex Options Trading Floor.
Please see the link below to the NYSE Amex Options Transition Video that features an informative tour of the new floor with Ed Boyle and Jim Hyde, Vice President, NYSE Amex Options.
http://www.nyse.com/futuresoptions/nyseamex/1218155409117.html?
http://www.nyse.com/futuresoptions/nyseamex/1218155409117.html?sa_campaign=/internal_ads/callouts/02022009nyseamexopts
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In Geithner We Trust Eludes Treasury as Market Fails to Recover
By Yalman Onaran and Michael McKee Feb. 25 (Bloomberg) -- It was 2004 and Tim Geithner, president of the Federal Reserve Bank of New York, had a message for the Federal Open Market Committee in Washington. He told his 18 colleagues gathered around the long mahogany table that a clearinghouse was needed to monitor risks in the burgeoning $5 trillion market for credit-default swaps -- the over-the-counter derivatives that would later spin out of control and help take down Wall Street.
http://bloomberg.com/apps/news?pid=20601109&sid=aLhs5Byln00k&refer=home
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Soft nationalization
February 25, 2009, 11:04 am by Daniel P. Collins An often repeated saying is that the definition of insanity is to continue to do the same things and to expect different results. I know we have made this point several times here, but it is worth pointing out until it sinks in everywhere: We have a problem caused by easy credit and the solution our leaders have offered is more easy credit; we have a problem of “too large to fail” institutions and our leaders have encouraged even greater consolidation as a solution.
http://buytherumorsellthefact.com/2009/02/25/soft-nationalization/
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How bank bonuses let us all down
By Nassim Nicholas Taleb
One of the arguments one hears in the compensation debate is that the bonus system used by Wall Street – as John Thain, former Merrill Lynch chief executive, put it – is there to “reward talent”. While I find this notion of “talent” debatable, I fully agree that incentives are the heart of capitalism and free markets – but certainly not that incentive scheme.
In fact, the incentive scheme commonly in place does the exact opposite of what an “incentive” system should be about: it encourages a certain class of risk-hiding and deferred blow-up. It is the reason banks have never made money in the history of banking, losing the equivalent of all their past profits periodically – while bankers strike it rich. Furthermore, it is thatincentive scheme that got us in the current mess.
http://www.ft.com/cms/s/fa89be08-02aa-11de-b58b-000077b07658,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2Ffa89be08-02aa-11de-b58b-000077b07658.html&_i_referer=http%3A%2F%2Fwww.ft.com%2Fhome%2Fus
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Private equity investors flock to sale platform
By Martin Arnold in London Cash-strapped investors have put more than $540m (€420m) of private equity and hedge fund stakes up for sale on a new platform launched Tuesday, aiming to draw out possible buyers for the otherwise illiquid holdings. The platform introduced by newcomers SecondMarket is a bold move to break the log-jam in markets for second-hand private equity and hedge fund stakes, where prices have plunged to record lows as sellers have far outweighed buyers.
http://www.ft.com/cms/s/c9ab3f8a-02ac-11de-b58b-000077b07658,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2Fc9ab3f8a-02ac-11de-b58b-000077b07658.html&_i_referer=http%3A%2F%2Fwww.ft.com%2Fcompanies
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Coupon clippers go digital
By Jonathan Birchall
This Saturday’s “Extreme Couponing 101” workshop at the leisure centre in Lexington, South Carolina, is entirely booked out, with 30 people paying $10 each for a two-hour course in how to save money when shopping. The event is organised by Jenny, the author of Southern Savers, one of a plethora of online blogs devoted to the art of saving money when shopping, traditionally by clipping the coupons delivered each weekend with the local newspaper.
http://www.ft.com/cms/s/8736f746-01cd-11de-8199-000077b07658,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2F8736f746-01cd-11de-8199-000077b07658.html&_i_referer=http%3A%2F%2Fwww.ft.com%2Fbusinesslife
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In Silicon Valley, Recruiters Are Sending Out Their Own Résumés
Peter DaSilva for The New York Times MOUNTAIN VIEW, Calif. — It is hard to think of any job-hunting skills that Alexis Lovell lacks. As a recruiter for Silicon Valley technology companies, and before that, for retailers, she has advised job candidates on résumé preparation, personal presentation and interview skills for the last eight years. Networking strategies and trolling social networks and online job sites are the tools of her trade.
http://www.nytimes.com/2009/02/25/technology/companies/25recruiter.html?ref=business
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Hearst Threatens to End San Francisco Paper
By RICHARD PÉREZ-PEÑA Hearst Corporation said Tuesday that it would close or sell The San Francisco Chronicle unless it could wring concessions from its unions, raising the prospect of San Francisco becoming the largest city in the country to lose its dominant newspaper.
http://www.nytimes.com/2009/02/25/business/media/25paper.html?ref=business
Lead Stories
CFTC nominee vows to fight futures speculation
By Joanna Chung in New York Barack Obama's chosen leader of the Commodity Futures Trading Commission has vowed to crack down on the kind of speculation that many blamed for last year's sky-high oil prices and volatile swings across agricultural markets. Gary Gensler, a former US Treasury official and partner at Goldman Sachs, has also pledged to help bring transparency to the hitherto unregulated market for credit default swaps, which many claim exacerbated the financial crisis.
http://www.ft.com/cms/s/0/3a1ae18c-02dd-11de-b58b-000077b07658.html?nclick_check=1
Gensler Urges Swaps Regulation After Backing Rubin Over Born
By Ian Katz and Tina Seeley Feb. 25 (Bloomberg) -- Gary Gensler, the nominee to head the Commodity Futures Trading Commission, is dogged by a decade- old debate with former Chairman Brooksley Born over whether to regulate private derivative contracts blamed in part for $1 trillion in global bank losses.
http://www.bloomberg.com/apps/news?pid=20601109&sid=a5tv7.d12WJ8&refer=home
Government Offers Details of Bank Rescue Plan
Treasury Department officials said Wednesday that the new support would be provided through the government’s purchase of preferred shares of the bank stock that are convertible into common shares at a 10 percent discount to their price before Feb. 9.
http://www.nytimes.com/2009/02/26/business/economy/26banks.html?_r=1&ref=business
LCH.Clearnet considers fees shake-up
By Jeremy Grant in London
LCH.Clearnet, Europe's largest independent clearing house, is considering a major shift in the way it charges fees, which would reduce clearing costs for some of the region's largest market participants.
http://www.ft.com/cms/s/0/bee28d7e-02de-11de-b58b-000077b07658.html
OBAMA CHOOSES LOCKE TO RUN COMMERCE
WASHINGTON - President Barack Obama introduced former Washington Gov. Gary Locke as his nominee for Commerce secretary Wednesday, trying a third time to fill a key Cabinet post for a country in recession.
http://www.nypost.com/seven/02252009/business/obama_chooses_locke_to_run_commerce_156901.htm
Bernanke rules out total bank buyouts
By Alan Beattie in Washington and Alan Rappeport in New York The US has no plans for anything like a full-scale nationalisation of banks which would completely wipe out private shareholders, Ben Bernanke, Federal Reserve chairman, said on Wednesday. His comments gave a lift to bank stocks, which had fallen along with other share prices on Wednesday morning after data were released showing no sign of a bottoming out in the beleaguered US housing market.
http://www.ft.com/cms/s/f2f5721c-036e-11de-b405-000077b07658,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2Ff2f5721c-036e-11de-b405-000077b07658.html&_i_referer=http%3A%2F%2Fwww.ft.com%2Fhome%2Fus
President's perilous balancing act
By Nina Easton, Washington Editor
WASHINGTON (Fortune) -- It's true: He didn't break it. But now he owns it. With President Obama's three major (and expensive) salvage plans in place, we can apply a version of the Pottery Barn rule that Colin Powell made famous in his warning about invading Iraq. Obama now has a controlling ownership stake in this economy and how it performs.
http://money.cnn.com/2009/02/25/news/economy/obama_speech.fortune/index.htm?section=money_latest
EU taskforce proposes tougher regulation
By Nikki Tait in Brussels A number of new pan-European bodies should be established to beef up the supervision and monitoring of financial institutions in the region, a closely-watched high-level report recommended on Wednesday. A taskforce, headed by Jacques de Larosière, a former French central banker, suggested that the “European Systemic Risk Council” would collate and analyse issues and information relating to systemic risk and financial stability.
http://www.ft.com/cms/s/346c05c8-031d-11de-b405-000077b07658,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2F346c05c8-031d-11de-b405-000077b07658.html&_i_referer=http%3A%2F%2Fwww.futuresindustry.org%2F
EU considers new, stronger financial supervision
BRUSSELS: A key report commissioned by the European Union wants more powerful financial supervisors — both within Europe and globally — to monitor the banking industry and avoid a repeat of the crisis that has derailed the global economy.
http://www.iht.com/articles/ap/2009/02/25/business/EU-EU-Banking-Oversight.php
Big Madoff investors targeted
By Brooke Masters in London and Joanna Chung in New York The trustee charged with tracking down money to repay victims of Bernard Madoff’s alleged $50bn Ponzi scheme will target big investors such as hedge funds that pulled what he termed substantial amounts of false profits out of the broker’s operation. Under federal and New York law, investors who withdrew either principal or profits in the 90 days before Mr Madoff’s December 11 arrest are particularly vulnerable to so-called “clawbacks”, but the trustee will be able to reach back up to six years in some cases.
http://www.ft.com/cms/s/3b5c320e-0368-11de-b405-000077b07658,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2F3b5c320e-0368-11de-b405-000077b07658.html&_i_referer=http%3A%2F%2Fwww.ft.com%2Fhome%2Fus
‘Clawback’ is sure to get messy
By Brooke Masters in London and Joanna Chung in New York Investors who cashed out of investments made with Bernard Madoff before his arrest are gearing up for what is set to be one of the biggest legal battles to emerge from the New York broker’s alleged $50bn “Ponzi’’ scheme. Many lawyers expect that Irving Picard, the court-appointed trustee charged with liquidating Mr Madoff’s assets and returning cash to defrauded investors, will try to retrieve the money paid out by Mr Madoff to investors in the months – and even possibly up to six years – before he was shut down.
http://www.ft.com/cms/s/9609ea1e-036a-11de-b405-000077b07658,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2F9609ea1e-036a-11de-b405-000077b07658.html&_i_referer=http%3A%2F%2Fwww.ft.com%2Fhome%2Fus
Commentary - Paradox Squared
Author: Paul L. Kasriel
Mainstream economists and the mainstream media continue to embrace John Maynard Keynes' notion of the "paradox of thrift." While most economists subscribe to the view that the pace of long-run economic growth is a function of productivity and thrift (saving), short-run growth can be retarded by too much thrift.
http://www.garp.com/resources/newsfeed.aspx?Category=6&MyFile=2009-02-24-17893.html
Industry Fears Proposal in Congress Would Destroy High-Frequency Trading and Liquidity
By James Ramage Trading industry experts said the passage of a new bill to tax each buy and sell transaction by up to 25 basis points would devastate liquidity in the equities market. The proposed House of Representatives' bill-H.R. 1068: Let Wall Street Pay for Wall Street's Bailout Act of 2009-would, they say, dramatically increase trading costs, widen bid-ask spreads, kill off high-frequency market making firms, slash volumes and move trading to overseas markets.
http://www.tradersmagazine.com/news/103465-1.html
Environmental Trading News
Obama seeks U.S. carbon emissions cap
By Tom Doggett
WASHINGTON (Reuters) - President Barack Obama on Tuesday called on Congress to send him legislation that places a market-based cap on U.S. carbon polluting emissions and pushes the production of more renewable energy.
http://www.reuters.com/article/politicsNews/idUSWAT01104320090225
CCFE Announces the Successful Launch of Futures Contracts on California Climate Action Registry -
Climate Reserve Tons Chicago Climate Futures Exchange® (CCFE®), a Commodity Futures Trading Commission (CFTC) Designated Contract Market, announces the successful launch of new futures contracts on California Climate Action Registry – Climate Reserve Tons (CCAR-CRT). Each CCAR-CRT contract calls for delivery of 1,000 Climate Reserve Tons (CRTs), are project-based emission reductions issued by the Climate Action Reserve, the offset program of the California Climate Action Registry.
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=81054
http://www.chicagoclimatex.com/news/press/release_20090225_CCFE_CCAR.pdf
Europe's Nuclear Option
Author: Ken Silverstein, EnergyBiz Insider, Editor-in-Chief Members of the Europe Union are shifting their energy positions. Carbon emission policies there are giving nuclear energy added appeal -- even among nations that once eschewed such ideas.
http://www.garp.com/resources/newsfeed.aspx?Category=6&MyFile=2009-02-24-17891.html
Energy Projects to Struggle for Investment in 2009?
Author: Martin Dunlea
It is virtually impossible to pick up a magazine, view an online report or read about infrastructure developments in the utility transmission and distribution industry that do not touch on smart meters and smart grids. Whether utilities are engaged in implementing technology locally or in the process of implementing solutions on a large scale, the number and cost of utility infrastructure projects is proportionally higher when compared to investments in other industries.
http://www.garp.com/resources/newsfeed.aspx?Category=6&MyFile=2009-02-24-17889.html
U.S. Congress Begins Talks on Energy Bill
Just days after U.S. President Barack Obama delivered a gift to the renewable energy industry - a multi-billion-dollar stimulus package - leaders in both Congress and the Administration discussed plans Monday for an energy bill that would greatly expand clean energy capacity.
http://www.enn.com/energy/article/39376
Economic Crisis Complicates California’s Goals on Climate
COLTON, Calif. — Only a few years ago, CalPortland planned on keeping its plant here operating as long as Mount Slover’s limestone held out. For more than a century, Colton’s kilns and crushing machines have been churning out cement for the streets and buildings of Los Angeles.
http://www.enn.com/energy/article/39374
For more environmental trading news, subscribe to the Environmental Markets version of the John Lothian Newsletter edited by Jim Kharouf.
Click here to subscribe: jimkharouf-request@johnlothiannewsletter.com?subject=subscribe
Exchange & ECN News
NYSE Euronext Group Captures 23.96% Of Equities
In 2008 Xtrakter, the fixed income market utility, announced today the fourth edition of its league table of execution venues. This edition tracks the movement of liquidity for both fixed income and equities during the whole of 2008 with additional analysis being provided on the last quarter.
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=81048
Turkey's derivatives bourse opens to US citizens IZMIR
A recent application to the Commodity Futures Trading Commission, or CFTC, the regulatory authority that arranges futures contracts in the United States, opens way for individual US investors to trade on futures contracts in Turkey. Turkey's derivatives bourse opens to US citizens The path is opening for U.S. investors to put money into the Turkish Derivatives Exchange, or VOB, based in the Aegean city of Izmir.
http://www.hurriyet.com.tr/english/finance/11076487.asp?scr=1
Colombian Stock Exchange Launches Short-Term And Long-Term Treasury Bond Futures
On February 16, 2009, the Colombian Stock Exchange listed for the first time 2 Year and 10 Year Treasury Bond Futures. The new futures complement an already existing future based middle-term (5Y) Treasury Bonds.
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=81056
Futures-Style Options Start Trading On FORTS
On February 27, 2009 futures-style options will start trading on FORTS, RTS derivatives market.
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=81055
Warsaw Stock Exchange: Cooperation Agreement With Belarusian Currency And Stock Exchange
On 23 February 2009 in Minsk the Warsaw Stock Exchange (WSE) signed a Memorandum of Understanding on Co-operation with Belarusian Currency and Stock Exchange (Bie?orusskaja Waluto-Fondowaja Bir?a - BWFB).
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=81049
LSE-owned derivatives market cuts fees amid dwindling trades
Luke Jeffs The Italian derivatives market owned by the London Stock Exchange has cut its fees to become “more competitive” amid dwindling trading volumes at the Milan-based bourse.
http://www.efinancialnews.com/homepage/content/1053437599/restricted
Information Committee Approved Modifications In The List Of RTS Indices’ Constituents
The new lists of shares, RTS Indices constituents, approved by the Information Committee, will be in force starting from March 16, 2009 until June 11, 2009.
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=81053
FORTS: Open Interest In Gold Futures Exceeds 4.6 Billion Roubles
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=81050
FORTS Weekly Trading Results: February 16 – 20, 2009
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=81041
RTS Indices Weekly Review
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=81047
RTS Stock Market Weekly Trading Results: February 16 – 20, 2009
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=81039
RTS Board: February 16 – 20, 2009
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=81043
ASX Ltd Half-Year Results
Media transcript
http://www.asx.com.au/about/pdf/asx_dec08_hy_media_transcript_170209.pdf
CME Group Statement on Media Access to Trading Facilities
CME Group policy permits print and broadcast media to access CME Group trading facilities for reporting on world events, economic conditions and financial markets activity. CME Group does not sponsor such media nor does it endorse or censor the diverse and personal views of journalists, members or trading floor personnel who access our trading facilities.
http://cmegroup.mediaroom.com/
IC09-014 Off-Floor DPM Program
http://www.cboe.org/publish/InfoCir/IC09-014.pdf
RG09-028 CBOE Direct 7.2 Enhancements
http://www.cboe.org/publish/RegCir/RG09-028.pdf
RG09-029 Obvious Error Rule Change
http://www.cboe.org/publish/RegCir/RG09-029.pdf
Gold Options
Trading Hours in March and April 2009
http://www.eurexchange.com/trading/products/COM/news_COM/productNews_2009_02_25_928_en.html
HKEx
Arrangements For Adjustment Of Bank Of East Asia Futures And Options
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=81044
Brokers & Dark Pools
Group of Rich Americans Sues UBS to Keep Names Secret in Tax Case
By LYNNLEY BROWNING UBS was sued on Tuesday in a Swiss federal court by wealthy American clients seeking to prevent the disclosure of their identities as part of a tax-evasion investigation by the United States Justice Department.
http://www.nytimes.com/2009/02/25/business/worldbusiness/25ubs.html?ref=business
Merrill hit by unseen $500m charge
By Greg Farrell in New York
Ineffective internal controls at Merrill Lynch caused the firm to understate its 2008 losses by more than $500m, the investment bank said on Tuesday in its annual report.
http://www.ft.com/cms/s/0/b7451256-02d1-11de-b58b-000077b07658%2Cdwp_uuid%3De8477cc4-c820-11db-b0dc-000b5df10621.html
UBS in $31bn bond order mistake
As costly errors go, mistakenly placing a order for 3 trillion yen ($31bn; £21bn) of company bonds is likely to rank as one of the worst. Yet that is just what has happened at a Japanese unit of Swiss bank UBS, which blamed a computer glitch for the error.
http://news.bbc.co.uk/2/hi/business/7909627.stm
MF Global Announces Cash Tender Offer for Outstanding Convertible Senior Notes Company Also Intends to Register Common Shares Held by Former Parent Company
NEW YORK Feb. 24, 2009-- MF Global Ltd. (NYSE: MF), a leading intermediary offering customized solutions in global cash, derivatives and related markets, today announced the commencement of a cash tender offer to purchase any and all of its $210 million outstanding 9.00% Convertible Senior Notes due 2038 (CUSIP Nos. 55276YAA4 and G60642AA6) (the “Notes”) at a purchase price equal to $620 per $1,000 of the principal amount of such Notes. [...] Separately, at the request of its former parent company, Man Group plc, MF Global intends to register the outstanding common shares currently held by Man Group for sale under its registration rights agreement.
http://www.mfglobalinvestorrelations.com/phoenix.zhtml?c=194911&p=irol-newsArticle&ID=1259610&highlight=
MF Global Rises After Offer to Buy Convertible Notes (Update1)
By Matthew Leising Feb. 25 (Bloomberg) -- MF Global Ltd., the derivatives broker that wants to become a prime dealer, rose as much as 26 percent in New York trading after offering to buy back $210 million in convertible notes for more than their price in the market. MF Global offered $620 per $1,000 of the principal amount on the 9 percent notes due 2038, the Hamilton, Bermuda-based company said yesterday. The price represents a “slight premium” to the bond’s recent market price, Patrick O’Shaughnessy, an analyst with Raymond James Associates Inc. in Chicago, said in a note to clients today. “We like this decision by MF Global,” O’Shaughnessy said. “It reduces the firm’s debt burden while also demonstrating its improving cash position.”
As A.I.G.’s Losses Grow, Its Survival Options Shrink
By MARY WILLIAMS WALSH and MICHAEL J. de la MERCED The American International Group faced two distasteful options on Tuesday: selling prized assets to competitors or handing over a big part of its business to the federal government. Grappling with huge losses, A.I.G. appears to have few choices as the government focuses on trying to keep the giant insurer from toppling and perhaps injuring other institutions.
http://www.nytimes.com/2009/02/25/business/25insure.html?ref=business
Citi close to deal with Treasury
By Francesco Guerrera in New York
Citigroup and the US Treasury are nearing agreement on a deal that would give the federal government a stake of about 40 per cent in the troubled bank in exchange for bolstering its depleted capital base.
http://www.ft.com/cms/s/5889269e-02a4-11de-b58b-000077b07658,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2F5889269e-02a4-11de-b58b-000077b07658.html&_i_referer=http%3A%2F%2Fwww.ft.com%2Fcompanies
Santander revives Cepsa stake sale talks
By Mark Mulligan in Madrid Santander has rekindled talks on selling its 32 per cent stake in oil group Cepsa in what could lead to the divestment of the Spanish bank’s last remaining equity holding of importance.
http://www.ft.com/cms/s/0/d4c59db8-0331-11de-b405-000077b07658.html
OUT OF BOUNDS NORTHERN TRUST'S LAVISH GOLF OUTING DRAWS FIRE
By KAJA WHITEHOUSE Call it Northern Distrust. That's the sentiment of several lawmakers who are blasting Chicago-based financial firm Northern Trust for throwing several lavish parties last week in Los Angeles just months after accepting $1.6 billion in government-rescue money - and now they want some of their money back.
http://www.nypost.com/seven/02252009/business/out_of_bounds_156767.htm
TD Bank’s Q1 profit falls 27%
But revenue rises 15% Toronto-Dominion Bank reported a 27% drop in net income for the first quarter ended Jan. 31, to $712 million from $970 million a year ago. However, its revenue increased by 15% during that time to almost $4.2 billion from $3.6 billion in Q1 2008.
http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=48314&IdSection=149&cat=149
SunGard’s Ambit Named Top Asset and Liability Management Solution in 2008
Risk Technology Rankings SunGard’s Ambit Risk & Performance solution has been voted as the number one asset and liability management (ALM) solution for the second straight year in Risk magazine’s annual technology rankings. SunGard’s Ambit solution also scored highly in several other categories, including integrated market and credit risk management, credit risk management, and risk management – Basel II and International Accounting Standards (IAS) compliance.
http://www.sungard.com/pressreleases/2009/ambit022509.aspx
ICMA: Survey Of European Repo Market Reflects Deleveraging By Banks
The European Repo Council of the International Capital Market Association (ICMA) today released the results of its 16th semi-annual survey of the European repo market. The survey, a snapshot of the volume of repo trades outstanding on a single day in December 2008, based on returns from 61 financial institutions, sets the baseline figure for market size at EUR 4,633 billion, the decline, adjusted for changes in the survey sample, is 26% from the June 2008 figure of EUR 6,504 billion.
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=81040
Regulatory News
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/2008/dig022509.htm
CFTC Charges New York Residents With Operating $1.3 Billion Investment Scam Washington, DC
The U.S. Commodity Futures Trading Commission (CFTC) today charged Stephen Walsh of Sands Point, New York, and Paul Greenwood of North Salem, New York, with misappropriating at least $553 million from commodity pool participants in connection with entities they owned and controlled, such as Westridge Capital Management, Inc., WG Trading Investors, LP, and WGIA, LLC. The defendants’ alleged misappropriation was uncovered during an audit by the National Futures Association.
http://www.cattlenetwork.com/Content.asp?ContentID=293991
CFTC Charges South Florida Firm, Zurich Futures & Options, Inc., and Michele LaBruce with Defrauding Customers of Over $1.4 Million in Commodity Options Scam Washington, D.C.
The Commodity Futures Trading Commission (CFTC) announced today the filing of an enforcement action against Zurich Futures & Options, Inc. (Zurich) and Michele LaBruce, both of Hollywood, Florida, charging them with fraudulent solicitation of customers, using false claims of CFTC registration and membership with the National Futures Association (NFA), and with operating as an unregistered Introducing Broker (IB).
http://www.cftc.gov/newsroom/enforcementpressreleases/2009/pr5620-09.html
CFTC Charges Fund Manager Mark Bloom and His Firm, North Hills Management LLC, with Misappropriating Over $13 Million
The Commodity Futures Trading Commission (CFTC) announced today that it filed an action in the United States District Court in the Southern District of New York against New York City fund manager Mark Evan Bloom and his firm, North Hills Management LLC (NHM). The complaint charges Bloom and NHM with: misappropriating over $13 million of the assets of North Hills LP. (North Hills Fund or the Fund), a fund managed by defendants and investing North Hills Fund assets contrary to the represented investment strategy.
http://www.cftc.gov/newsroom/enforcementpressreleases/2009/pr5622-09.html
CFTC Proposes to Amend Reporting Requirements for Commodity Pool Operators
Washington, D.C. – The Commodity Futures Trading Commission (CFTC) has proposed to amend its regulations regarding periodic and annual reporting requirements applicable to commodity pool operators (CPOs).
http://www.cftc.gov/newsroom/generalpressreleases/2009/pr5619-09.html
SEC sanctions RBC Capital Markets
By James Langton
The U.S. Securities and Exchange Commission sanctioned RBC Capital Markets Corp. over allegations that it excessively wined and dined certain clients.
http://www.investmentexecutive.com/client/en/News/DetailNews.asp?id=48283&IdSection=8&cat=8&BImageCI=1
Former Broker Is Sentenced to 5 Years for Insider Trading
A former trader who admitted to participating in an insider-trading scheme that made millions was sentenced Tuesday to more than five years in prison.
http://www.nytimes.com/2009/02/25/business/25insider.html?ref=business
ASIC bans Tasmanian financial adviser
A financial adviser convicted of giving false and misleading information to ASIC during an examination has been banned from providing financial services for 18 months.
http://www.asic.gov.au/ASIC/asic.nsf/byHeadline/AD09-28%20ASIC%20bans%20Tasmanian%20financial%20adviser?opendocument
Regulators: An apology
Readers of these and other pixels may have garnered the entirely mistaken impression that US financial industry regulators demonstrated stunning incompetence in their non-pursuit of various allegedly fraudulent investment schemes.
http://nakedshorts.typepad.com/nakedshorts/2009/02/regulators-an-apology.html
Consent Order in the matter of SCIL Ventures Limited
http://www.sebi.gov.in/press/2009/200997.html
Consent order in the matter of dealing in futures and options contracts on NSE http://www.sebi.gov.in/press/2009/200998.html
Investments - Indexes - Managed Futures - Managed Funds
The United States Oil Fund mystery
Olivier Jakob at Petromatrix continues his crusade against the United States Oil Fund in his Tuesday note, an issue increasingly being picked up across the commodities and investment spectrum.
http://ftalphaville.ft.com/blog/2009/02/24/52836/the-united-states-oil-fund-mystery/
A self-propelled pyramid?
Posted by Izabella Kaminska on Feb 25 11:37.
Stephen Schork of the Schork report jumps on the United States Oil Fund issue on Wednesday. He too is blaming the size of the ETF for current distortions in front-month Nymex WTI contracts.
http://ftalphaville.ft.com/blog/2009/02/25/52879/a-self-propelled-pyramid/
Dow Jones Euro STOXX 50 Double Short And Dow Jones STOXX 600 Double Short Indexes To Underlie Exchange-Traded Funds
Strategy Indexes Licensed To BNP Paribas Asset Management STOXX Limited, the leading provider of European equity indexes, today announced that the Dow Jones EURO STOXX 50 Double Short and Dow Jones STOXX 600 Double Short indexes have been licensed to BNP Paribas Asset Management to serve as the basis for two exchange-traded funds. The EasyETF Euro Stoxx 50 Double Short and EasyETF DJ Stoxx 600 Double Short will be available on Euronext Paris today.
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=81038
FundSettle Accelerates Automation With Ten Leading Fund Promoters
Euroclear and ten leading fund promoters are providing incentives to fund distributors to further automate their back-office operations. All ten promoters endorse Euroclear’s new approach to entice greater use of FundSettle, the low cost, STP platform for fund transaction settlement and asset servicing. By sharing the challenge of convincing the remaining 50% of the market’s distributors to automate through cost and service incentives, this partnership will move the market closer to fully automated fund-transaction processing, and save the industry EUR 300 million per year.
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=81046
Managed futures managers post negative returns for January
After topping the hedge fund strategies performance league table in 2008, managed futures managers suffered in January posting a negative 1.89 per cent return, according to a report from Lipper.
http://www.hedgeweek.com/articles/detail.jsp?content_id=295562
Five new EasyETF listings!
The new EasyETF trackers on the NYSE Euronext market in Paris The EasyETF range is making even greater strides forward: after launching 20 new trackers in less than six months last year, it is expanding its offer its yet again with five new additions to the family. The EasyETF Topix tracker further diversifies the range’s geographic coverage and will be available in euros and dollars. Three double-short ETFs, designed to meet hedging requirements due to the financial market decline, are also now available.
http://www.euronext.com/news/press_releases/pressReleases-1731-EN.html
Claymore launches laddered corporate Bond ETF Toronto-based Claymore Investments, Inc. has launched the Claymore 1-5 Year Laddered Corporate Bond ETF on Wednesday, which seeks to provide a return based on the price and performance, less expenses, of the DEX 1-5 yr Laddered Corporate Bond Index.
http://www.investmentexecutive.com/client/en/News/DetailNews.asp?id=48286&IdSection=146&cat=146&BImageCI=1
Give pension funds greater voice: report Regulators should eliminate the rule that restricts pension funds from holding more than 30% of the voting equity in a corporation, suggests a C.D. Howe Institute study released on Wednesday.
http://www.investmentexecutive.com/client/en/News/DetailNews.asp?id=48301&IdSection=147&cat=147&BImageCI=1
February 2009 “Islamic Market’s Measure” – Preliminary Monthly Report On The Performance Of The Dow Jones Islamic Market Indexes
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=81045
Infobolsa To Disseminate Information From VDOS Stochastics
The Agreement Facilitates Infobolsa Users Better Research For Their Investment Decision Infobolsa, the information dissemination company jointly owned by BME and Deutsche Börse, has reached an agreement with VDOS Stochastics whereby Infobolsa will disseminate all the information from this company. VDOS Stochastics is the leading company in the provision of information and services about Mutual Funds, Investment firms, Collective Investment firms and Pension Schemes in Spain.
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=81042
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
Asia taps LME steel futures, but interest still weak
By Miyoung Kim SEOUL, Feb 25 (Reuters)
Asia, the world's biggest steel producing region, is increasingly tapping futures markets to hedge against price volatility, but traders here said it may take years for LME steel contracts to gain sufficient liquidity.
http://uk.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUKLP64379420090225
Tepid interest in AIG Asia unit
By Sundeep Tucker in Hong Kong
AIG, the stricken insurance giant, may have to scrap the sale of its Asian life assurance unit after attracting only lukewarm interest from potential bidders, according to people familiar with the matter.
http://www.ft.com/cms/s/0/4a472de4-031a-11de-b405-000077b07658.html
Thai bourse lists Asia Green Energy on Feb 26 Asia Green Energy PCL, an importer and distributor of high quality clean coal from Indonesia and distribute to industries, will commence trading on the Thai bourse’s Market for Alternative Investment (mai) on February 26, after raising funds worth THB227.50 million (approx. USD 6.36) to construct and improve its plants and screening site at Petchaburi, and use as working capital.
http://www.thaipr.net/nc/readnews.aspx?newsid=06DA543049EBF1A8C216A884402D5041
Thai bourse adds gold-related agents in futures Thailand Futures Exchange PCL (TFEX) authorized four gold-related agents to trade gold futures, beginning March 2. Also, as the recent volatility in gold prices encourages investing in its futures, TFEX expects to introduce more such agents in mid-year.
http://www.thaipr.net/nc/readnews.aspx?newsid=0969EF05E1DC4D735A8049D0917B2502
Frontier Markets
Indian Rupee Futures Take Off
MUMBAI -- India's young currency futures markets are showing signs of promise, prompting some players to demand even more tools and leeway to hedge against foreign currency risk.
http://online.wsj.com/article/SB123554580121168781.html?mod=googlenews_wsj
Sonangol Won’t List Yet on Luanda Stock Exchange (Update1)
By Candido Mendes Feb. 25 (Bloomberg) -- Sonangol SA, Angola’s state oil company, won’t float its shares on the planned Luanda stock exchange and the officials organizing the start up of the bourse may be “rethinking the process,” Manuel Vicente, the company’s chairman, said.
http://www.bloomberg.com/apps/news?pid=20601116&sid=av4L2xAwvHM8
India NCDEX To Reduce Evening Trading Hours 25 Minutes
Mar 9 MUMBAI (Dow Jones)--India's National Commodity & Derivatives Exchange, the second-largest commodity futures bourse by turnover, will reduce the trading hours of its evening session by 25 minutes due to a change in daylight savings timings, the exchange said in a circular.
http://news.ino.com/headlines/?newsid=20090224021820
Miscellaneous News
FACTBOX-Steel futures contracts: Who's doing what
Feb 25 - The London Metal Exchange launched steel futures contracts a year ago, aiming to set a benchmark price for the $500 billion steel industry. Turnover has been growing slowly, with interest shown mainly by physical traders, LME brokers and mini-mills.
http://ph.news.yahoo.com/rtrs/20090225/tbs-steel-lme-7318940.html
CQG and Otkritie Securities ink software licensing and distribution deal CQG and Otkritie Securities Limited today announced that they have entered into a global software licensing agreement in which Otkritie Securities Limited will make CQG's trading software available to its customers and internal trading desks.
http://tinyurl.com/apgmh2
Wednesday, February 25, 2009
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