Observations – Statistics – Commentary

High-speed traders keep their technology close by
By Michael Mackenzie and Jeremy Grant
Thirty miles outside London near Basildon in Essex, a hangar-shaped building big enough to accommodate three football pitches sits in a featureless industrial park. Inside, NYSE Euronext, parent of the New York Stock Exchange, is building what it hopes is the exchange of the future. It is a far cry from the noisy trading floors of New York. Racks of computer space sit in vast, bomb-proof, air-conditioned halls. They will contain the electronic trading “engines” that allow millions of trades in equities, options and futures contracts to change hands every day on NYSE Euronext’s platforms.
http://bit.ly/Oaqu5

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The Commodity Index Reborn
As readers of HardAssetsInvestor.com know, the Commodity Futures Trading Commission spent all summer pushing for tighter regulation of commodity ETFs, which the agency blames (rightly or wrongly) for running up energy prices last year. For the CFTC, it’s not a question of whether they should impose new regulations, but how much: Position limits, tighter regulation of swaps contracts and higher capital and margin requirements for derivatives are all possibilities currently on the table.
http://bit.ly/UWuXJ

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Derivatives moolah
Posted by: Matthew Goldstein
The nation’s top commercial banks are poised to generate record revenue from trading derivatives this year. And that’s as good a reason as any why no one should expect the nation’s bank to go along peacefully with a plan to regulate the trading of these sophisticated instruments.
http://bit.ly/QEwuY

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Futures and Options
From Cross-Margining to Risk Management, Trading Across The Two Markets Remains Riddled in Complexities
http://bit.ly/2EqAQd

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Orc Software Invites to a Press and Analyst Meeting on October 15
http://bit.ly/4nSpVh

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[Video] George Hanley
http://bit.ly/nuEQr

*** Here is an interesting video of George Hanley of the Hanley Group.

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Don’t Be Blinded by Window Dressing
By STEVEN M. SEARS
End-of-the quarter trading throws the options market out of whack.
THE OPTIONS MARKET LIKES TO BOAST that what you see is what you get. There is even an acronym for it: WYSIWYG (pronounced wizzy-whig).
http://bit.ly/12wnlp

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How Authentic Leaders ‘Walk the Walk’
By Alan Deutschman
The best leaders take the same hits as their employees and stick to the primary values they promised to uphold
http://bit.ly/BoqiW

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Homeowners in financial trouble often redefault
WASHINGTON – Lenders are ramping up efforts to avoid home foreclosures, but a report by bank regulators says more than half of borrowers who get help fall behind again.
http://bit.ly/N9gXA

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Gorkana US Alert: Wednesday 30th September 2009
The Wall Street Journal / Dow Jones Newswires
Mohammed Hadi, Asia Pacific Editor for Heard on the Street, has relocated to Hong Kong from Singapore. He can be reached on +852 2831 2522 and mohammed.hadi@dowjones.com. Andrew Peaple and James Simms, both Heard on the Street Columnists in Asia, remain in Beijing and Tokyo, respectively. Andrew can be reached on +86 10 6588 5848 and andrew.peaple@dowjones.com. James can be contacted on +81 3 6895 7576 and james.simms@dowjones.com
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Brother, Can You Give Your Two Cents’ Worth to the Recession Wiki?
By Peter A. McKay
Everyone has a favorite company or person or event to blame for the economic downturn that has gripped the U.S. for nearly two years. Now they’ll have a new venue to argue about it. The Museum of American Finance today launched a new site dubbed Recessipedia, which borrows Wikipedia’s underlying technology and wisdom-of-crowds concept to tackle the relatively narrow topic of the recent recession. But there are some twists.
http://bit.ly/Y4icG

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Social media’s success formula
Influence and trust will be key factors for Google and Microsoft to consider as they enter the social media fray with Facebook and Twitter. Trust me on this: social media continues to revolutionise the internet. According to data released by The Nielsen Company last week, 17 per cent of all time spent on the Internet in August took place on either social networking or blogging sites, a 300 per cent increase from the previous year.
http://bit.ly/liTh8

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Software Polices Employees’ Twitter, Facebook, LinkedIn Posts
http://bit.ly/4Eo4B1

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MarketsWiki Recent Updates

People

George Hanley; Raj Mahajan; Brian Conlon; David Downey; Rudy Fasouliotis; Robbie McDonnell; Steve Kosanovich

Companies, Organizations and Groups

First Derivatives

Products

Tokyo Grain Exchange Raw Silk; Tokyo Grain Exchange; OptionsCity Metro
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Lead Stories

London Stock Exchange to leave FESE
By Jeremy Grant in London
The London Stock Exchange plans to withdraw from the Federation of European Exchanges (FESE), dealing a blow to the trade association for the region’s established bourses as its steps up its lobbying efforts on issues such as “dark pools”. John Wallace, LSE spokesman, told FT Trading Room: “We are reviewing a number of our memberships across the organisation. We have decided to leave FESE and will seek to work more directly with regulators, legislators and the markets we serve across Europe.”
http://www.ft.com/cms/s/0/f1119514-adac-11de-bb8a-00144feabdc0.html

S&P Lawyer Abrams Says Ratings Bill Would Deter Competition
By Caroline Salas
Sept. 30 (Bloomberg) — Proposed U.S. legislation to make credit-ratings companies liable for one another’s missteps would discourage competition, according to Floyd Abrams, an attorney representing Standard & Poor’s.
http://www.bloomberg.com/apps/news?pid=20601103&sid=aYjp.SyQLb2s

Ex-Moody’s employee warned SEC about muni issues
WASHINGTON – As Congress steps up scrutiny of the credit rating industry, allegations by another former employee of Moody’s Investors Service have come to light and the big rating agency is being called to account before a House panel.
http://news.yahoo.com/s/ap/20090930/ap_on_bi_ge/us_moody_s_whistleblowers_congress

Options Market Wins Ally In Bid To Get Short Sale Exemption
By Tennille Tracy
NEW YORK (Dow Jones)–The options market has gained an important ally as it attempts to secure an exemption from future short-selling restrictions. Rep. Barney Frank, the Massachusetts Democrat who chairs the House Financial Services Committee, has asked the U.S. Securities & Exchange Commission to grant an exemption to market makers in the options market, saying these traders engage in “legitimate short selling activity.”
http://online.wsj.com/article/BT-CO-20090929-710658.html

Geithner: Proposal is a ‘revolution’
By EAMON JAVERS
Treasury Secretary Timothy Geithner on Tuesday highlighted one area of the Obama administration’s keynote proposals in the regulatory reform debate, arguing that the planned overhaul of the derivatives market is the kind of sweeping change that will help prevent another market meltdown.
http://www.politico.com/news/stories/0909/27714.html

CTFC pushed to curb speculators
By Gregory Meyer in New York
The US senator who last year blocked key appointments to the US commodities regulator wants nominees to the watchdog to back a clampdown on speculators. Maria Cantwell, a Democrat, wants the nominees to support “strong position limits” to be set by regulator, a spokeswoman said. Some members of the Commodity Futures Trading Commission have voiced reservations about planned regulatory changes, which would impose strict caps on the number of energy futures held by investors because of concerns that they are inflating prices.
http://www.ft.com/cms/s/0/182aa4da-ad24-11de-9caf-00144feabdc0.html

Italy’s Berlusconi backs ban of futures markets
ROME, Sept 29 (Reuters) – Italian Prime Minister Silvio Berlusconi said on Tuesday futures’ markets should be heavily regulated and possibly even scrapped altogether to fight speculation.
http://in.reuters.com/article/oilRpt/idINLT36666420090929

TD AMERITRADE Institutional Survey: Independent Registered Investment Advisors Upbeat about Career and Economy
OMAHA, Neb.–(BUSINESS WIRE)–A new survey of independent registered investment advisors (RIAs), released by TD AMERITRADE Institutional, a division of TD AMERITRADE Holding Corporation (NASDAQ:AMTD – News), shows advisors are upbeat about their jobs and the outlook on the U.S economy.
http://finance.yahoo.com/news/TD-AMERITRADE-Institutional-bw-2145212144.html?x=0&.v=1

Pro-Business ‘New Democrats’ Try to Shape Financial Regulations
Sept. 30 (Bloomberg) — After traveling to Manhattan this month to rally support for overhauling financial regulations, President Barack Obama invited several lawmakers to fly with him back to Washington on Air Force One. Among the chosen few: Jim Himes, a first-term congressman from Connecticut.
http://news.yahoo.com/s/bloomberg/20090930/pl_bloomberg/amigi3hvz3es_1

Gordon Brown: ‘City is ideologically bankrupt’
Prime Minister promises that bankers ‘will pay back the British people’ in a speech positioning the Government against the Square Mile.
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/6244778/Gordon-Brown-City-is-ideologically-bankrupt.html

I.M.F. Calls for Overhaul of Financial System
By CARTER DOUGHERTY
Banks still have to write off $1.5 trillion in bad loans or worthless securities, the International Monetary Fund estimated in a new report.
http://www.nytimes.com/pages/business/index.html?adxnnl=1&adxnnlx=1254330163-kxT/Jb6TaXAqidVaZZZWQA

Environmental Trading News

First Trading Platform for Voluntary Emission Credits Announced
HONG KONG, September 29 /PRNewswire/ — Irish Investment Bank and CITIC GROUP Begin Joint Venture Carbon Bank Ireland, Ltd., an Irish investment bank, today announced the execution of a joint-venture agreement with the Chinese financial conglomerate, CITIC GROUP, to implement a trading platform for Voluntary Emission Credits (VERs).
http://www.itnews.it/news/2009/0929224001525/first-trading-platform-for-voluntary-emission-credits-announced.html

Europe proposes carbon trading VAT fraud crackdown
James Murray, BusinessGreen, 30 Sep 2009
The European Commission yesterday set out proposals designed to tackle the surge in VAT fraud that reportedly dogged the EU’s emissions trading scheme over the summer, prompting several countries to suspend VAT on carbon allowances.
http://www.businessgreen.com/business-green/news/2250351/europe-proposes-carbon-trading

$100 Billion Annual Climate-Change Adaption Costs Forecast by World Bank
Developing countries will need as much as $100 billion per year until 2050 to adapt to climate change, an amount that would nearly double current foreign aid flows from developed nations, the World Bank said.
http://www.bloomberg.com/apps/news?pid=20601130&sid=auGuETV2KCGc

Six Keys to Running an Efficient Green Business
By Andre de Fontaine
With unprecedented energy price volatility and looming climate regulations, businesses face a new and complex energy paradigm that few are fully prepared to manage. While individual approaches will vary by sector and company, new research from the Pew Center on Global Climate Change shows a growing number of companies recognize that energy efficiency must form the backbone of any corporate strategy to address the new energy frontier.
http://www.greenbiz.com/blog/2009/09/29/six-keys-efficient-green-business

Senators’ Climate Draft Mirrors House Bill, With Some Exceptions
http://www.nytimes.com/gwire/2009/09/29/29greenwire-senators-climate-draft-mirrors-house-bill-with-41562.html

Senate May Seek Greater U.S. Carbon Cuts Than House
http://www.bloomberg.com/apps/news?pid=20601087&sid=a171CF510JIE

Alternative Energy Projects Stumble on a Need for Water
By TODD WOODY
Many plans to meet the nation’s demand for power with renewable energy could consume billions of gallons of water every year.
http://www.nytimes.com/2009/09/30/business/energy-environment/30water.html?ref=business

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

Exchange & ECN News

LCH.Clearnet inks interoperability pact with EMCF; partners FIS on clearing for fertilizer swaps
LCH.Clearnet Ltd (LCH.Clearnet) and the European Multilateral Clearing Facility (EMCF) have signed a master link agreement to achieve interoperability by November 2009.
http://bit.ly/o6Qfk

Boerse Stuttgart extends scope of Euwax Sentiment Index
Intraday figures particularly valuable to investors with short-term horizons / Lammersdorf: Euwax Sentiment proving to be a popular information tool for market assessments
Beginning today, Boerse Stuttgart, Europe’s leading exchange for investment and leverage products, will be offering investors an extended version of the Euwax Sentiment Index. The new intraday chart will now be updated every minute in response to many requests from retail investors, for whose investment behaviour an ongoing, intraday version of the index is of real value. Boerse Stuttgart’s retail investor index offers a scientifically based picture of the investment behaviour of retail investors and provides an important aid in decision-making.
http://www.boerse-stuttgart.de/

NYSE’s 400,000 sq ft data centre in New Jersey
http://www.ft.com/cms/s/0/d1c86346-ad15-11de-9caf-00144feabdc0.html

Toronto Stock Exchange and TSX Venture Exchange land in Los Angeles
September 30, 2009 (LOS ANGELES) – Toronto Stock Exchange and TSX Venture Exchange’s 2009 U.S. Campaign arrives in Los Angeles today to highlight how California-based companies can benefit from listing on the Canadian equity exchanges.
http://www.tmx.com/en/news_events/news_releases/9-30-2009_TSX-USCampaign.html

ASX seeks compo for shake-up
ERIC JOHNSTON
THE Australian Securities Exchange will demand compensation from the Rudd Government as a result of a sweeping shake-up of market regulation which will see the exchange operator stripped of some of its powers to supervise brokers.
http://www.brisbanetimes.com.au/business/asx-seeks-compo-for-shakeup-20090930-gcq7.html

ASX Limited Annual General Meeting Results
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=85667

RTS Stock Market Weekly Trading Results: September 21 – September 25, 2009
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=85680

FORTS Weekly Trading Results: September 21 – September 25, 2009
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=85682

CBSX Trader News Update CBSX to Update Clearly Erroneous Policy Effective October 5, 2009
http://www.cboe.org/publish/InfoCir/IC09-306.pdf

CBOEdirect Version 8.1 System Enhancements
http://www.cboe.org/publish/RegCir/RG09-107.pdf

Banks, Brokers & Dark Pools

Bank of America to Sell Columbia Management’s Long-Term Asset Management Business to Ameriprise Financial
CHARLOTTE, N.C., Sept. 30 /PRNewswire/ — Bank of America Corporation today announced it has signed an agreement to sell the long-term asset management business of Columbia Management to Ameriprise Financial, Inc. for approximately $1 billion, subject to certain adjustments.
http://finance.yahoo.com/news/Bank-of-America-to-Sell-prnews-61726277.html?x=0&.v=1

BofA to sell asset management unit for $1 billion
NEW YORK (Reuters) – Bank of America Corp has struck a deal to sell a long-term asset management business, part of its Columbia Management division, to Ameriprise Financial Inc for about $1 billion.
http://news.yahoo.com/s/nm/20090930/bs_nm/us_bankofamerica

MTF status may weaken appeal of broker dark pools
Europe’s broker-owned dark pools or crossing engines will be more open to toxic flow and less able to provide price improvement if they are forced to register as multilateral trading facilities (MTFs), brokers claim.
http://www.thetradenews.com/asset-classes/equities/3686

Northern Trust joins ‘safer prime brokerage’ push
Northern Trust has become the latest custodian to tap into the hedge fund sector’s heightened awareness of counterparty risk by partnering with a prime broker to offer better safeguarding of client assets.
http://www.efinancialnews.com/homepage/content/1055291428

No truth to CIT-IndyMac merger talk: source
By Joseph A. Giannone
NEW YORK (Reuters) – CIT Group Inc (CIT.N) shares surged on Tuesday following a newspaper report that hedge fund Paulson & Co wants to combine the cash-strapped lender with a Paulson-affiliated bank once known as IndyMac. But a person familiar with the matter denied the report.
http://news.yahoo.com/s/nm/20090929/bs_nm/us_citgroup_paulson_2

Merger Between CIT and IndyMac Unlikely, Reports Say
Doubt has been cast in a report that that hedge fund Paulson & Co. wants to combine cash-strapped lender CIT Group with a Paulson-affiliated bank once known as IndyMac.
http://dealbook.blogs.nytimes.com/2009/09/30/merger-between-cit-and-indymac-unlikely-reports-say/

Macquarie to Buy Investment Bank Fox-Pitt Kelton for About $146.7 Million
Macquarie Group Ltd., Australia’s largest investment bank, agreed to buy Fox-Pitt Kelton Cochran Caronia Waller LLC, an investment bank focused on financial services, for about $146.7 million.
http://www.bloomberg.com/apps/news?pid=20601208&sid=anTpQ4Eyh2LA

Morgan Stanley’s Mack Proposes Single Regulator to Oversee Banks Worldwide
Morgan Stanley Chief Executive Officer John Mack, who struggled to return the bank to profitability amid the financial crisis, said a single regulator should oversee financial institutions worldwide.
http://www.bloomberg.com/apps/news?pid=20601109&sid=awUvgMs67W94

Bank of New York Mellon appointed as depositary bank by Hikma Pharmaceuticals
Bank of New York Mellon, the global leader in asset management and securities servicing, has been selected by Hikma Pharmaceuticals PLC (Hikma) as the depositary bank for its American depositary receipt (ADR) program.
http://www.ameinfo.com/210653.html

BNY Mellon Appointed as Depositary Bank by Sinotel Technologies Limited
NEW YORK, Sept. 30 /PRNewswire-FirstCall/ — BNY Mellon, the global leader in asset management and securities servicing, has been selected by Sinotel Technologies Limited (Sinotel) as the depositary bank for its American depositary receipt (ADR) program.
http://finance.yahoo.com/news/BNY-Mellon-Appointed-as-prnews-2918889213.html?x=0&.v=1

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/2009/dig093009.htm

SEC Is `Dog Chasing Its Own Tail’ on Probes, Investigators Say in Survey
The U.S. Securities and Exchange Commission, which was faulted for missing Bernard Madoff’s fraud, is unwise when choosing cases and rewards “quantity” rather than “quality,” according to its own investigators.
http://www.bloomberg.com/apps/news?pid=20601208&sid=agopC8.GGugM

In Harsh Reports on S.E.C.’s Fraud Failures, a Watchdog Urges Sweeping Changes
http://www.nytimes.com/2009/09/30/business/30sec.html?ref=business

SEC develops post-Madoff rules
The internal watchdog at the US Securities and Exchange Commission yesterday released two large reports detailing ways to improve the SEC’s enforcement and.
http://www.nypost.com/p/news/business/sec_develops_post_madoff_rules_VEaX4S39bHlksFCyJvRwhL

Schapiro: Securities lending rules ‘may need to be improved’
By Ronald D. Orol, MarketWatch
WASHINGTON (MarketWatch) — Securities and Exchange Commission head Mary Schaprio said Tuesday that the major financial crisis has raised questions about the multi-trillion dollar practice of securities lending, where investors such as hedge fund managers borrow shares from institutional investors for a price.
http://www.marketwatch.com/story/schapiro-stock-lending-rules-could-be-improved-2009-09-29?siteid=rss&rss=1

Two Senators Say S.E.C. Panel is “Stacked” Against Banning Naked Short Sales
On the eve of a second day of roundtable discussions of securities practices, Sens. Ted Kaufman (D-DE) and Johnny Isakson (R-GA) said Tuesday evening that the Securities and Exchange Commission’s has, in effect, stacked discussions on the practice of selling stocks short before first buying the shares.
http://www.securitiesindustry.com/news/-24010-1.html

Regulatory divergence
Attitudes to derivatives reform either side of the Atlantic appear to be diverging. While US regulators last week pushed for more stringent rules than those set out in the Treasury Bill, officials in Europe seem to be playing down broad-brush regulation in favour of a more piecemeal approach. Helen Bartholomew reports.
http://www.ifre.com/story.asp?sectioncode=730&storycode=310771

New Jersey Trader Is a Fraud, SEC Says
By ADAM KLASFELD
NEWARK (CN) – New Jersey-based investor Robert J. Sucarato pocketed $494,000 in a Ponzi scheme, the SEC says in Federal Court. Sucarato, 40, whose “last known place of residence” was in New Brunswick, N.J., lied about his education and experience, falsified documents, including audits and business records, and claimed he was managing $7 billion when he actually had $110,000, the SEC says.
http://www.courthousenews.com/2009/09/29/New_Jersey_Trader_Is_a_Fraud_SEC_Says.htm

SEC Charges Virtual Reality Product Maker and Individuals in Boiler Room Fraud
Washington, D.C., Sept. 29, 2009 — The Securities and Exchange Commission today charged a virtual reality technology company, its principals, and three former sales agents for conducting a fraudulent offering scheme that garnered investors primarily through telemarketer sales out of a boiler room in the company’s Delray Beach, Fla., offices.
http://www.sec.gov/news/press/2009/2009-210.htm

Federal Court Freezes Assets of Texas Trading Firms M25 Investments, Inc. and M37 Investments, LLC, and Scott Kear, Sr., Jeffrey Lyon and David Seaman, Charged by the CFTC with an $8 Million Forex Fraud,
http://www.cftc.gov/newsroom/enforcementpressreleases/2009/pr5723-09.html

ASC issues “recovery room” warning
York-Rio and TLC Explorations investors targeted by scheme
“Recovery room” schemes that are reportedly surfacing in Manitoba, Saskatchewan and British Columbia, the Alberta Securities Commission warned Tuesday. Recovery room schemes involve companies that contact investors who may have lost money in an illiquid investment with an offer to buy their shares at an inflated price. Once investors agree to the deal, the operators of the scheme ask them to pay a fee for the transaction. The scammers keep the fee but do not repurchase the shares.
http://www.investmentexecutive.com/client/en/News/DetailNews.asp?id=50843&IdSection=8&cat=8&BImageCI=1

U.K.’s Biggest Banks Probed for the First Time Over Tax Payments by FSA
Britain’s financial regulator is demanding information from the country’s biggest banks on how they structure themselves to minimize tax payments and what tax advice they give corporate clients, advisers to the banks said.
http://www.bloomberg.com/apps/news?pid=20601127&sid=aIJH6UzgVkzQ

FSA spells out priorities as it publishes Turner feedback
The Financial Services Authority has set out its stall on how it will carry out financial regulation in the UK in the next few months, as it published industry feedback to its Turner Review, which it launched in March.
http://www.efinancialnews.com/homepage/content/1055297570

FSA feedback: the key points
The Financial Services Authority today published a response to the feedback received to the Turner Review, in a document that outlines the key priorities for the regulator in the coming months. Here Financial News takes a look at the key points.
http://www.efinancialnews.com/content/1055299164

Canadian regulators seek comment on the introduction of dark pools and orders
Issues of transparency, liquidity, fairness and information leakage outlined in consultation paper
Canadian securities regulators have issued a consultation paper on the development of dark pools in Canada….
http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=50854&IdSection=148&cat=148

Metavante court ruling retains swap safe harbor-ISDA
NEW YORK, Sept 30 – The safe harbors attributed to derivatives in bankruptcy are not threatened by a recent, widely-watched decision in a New York-bankruptcy court, according to an internal memo by a trade association.
http://asia.news.yahoo.com/rtrs/20090930/tbs-derivatives-metavante-isda-7318940.html

Investments – Indexes – Managed Futures – Managed Funds

Man Group Assets Rise on Lower Outflows
Man Group, the world’s largest listed hedge fund firm, said slowing outflows helped lift assets to an estimated $43.8 billion at end-September, at the top end of forecasts, boosting its shares.
http://dealbook.blogs.nytimes.com/2009/09/30/man-group-assets-rise-on-lower-outflows/

Man Group Stems Redemptions, Lifts Assets To $43.8B In 1H
http://online.wsj.com/article/BT-CO-20090930-701852.html

Man Group Assets Rise Through September; Profit Falls as Fee Income Slides
Man Group Plc, the largest publicly traded hedge-fund manager, said assets under management rose in its fiscal second quarter, the first gain in more than a year, and that first-half profit will fall as fee income dropped.
http://www.bloomberg.com/apps/news?pid=20601014&sid=aL0fkjUCdnBY

London begins to lose appeal for hedge funds
By Sam Jones, Hedge Fund Correspondent
London’s position as the world’s number two city for hedge funds is beginning to slip after almost a decade of gaining ground. New York, meanwhile, is reasserting itself in spite of the Madoff scandal, the fall of Lehman Brothers and a series of high-profile fund liquidations.
http://www.ft.com/cms/s/0/2f6b9c88-add0-11de-87e7-00144feabdc0.html?ftcamp=rss

Peter Thiel: Too Dignified For Hedge Funds
By Ryan Tate
Peter Thiel is not a clown. The PayPal co-founder and Facebook investor sees right through bubbles and rampant, ongoing Wall Street fraud, or at least says he does. So why is he running a hedge fund, again?
http://gawker.com/5370498/peter-thiel-too-dignified-for-hedge-funds

We Call Upon the Hedge Funds
Mises Daily by Dan O’Connor
The brains and talent of the financial industry have been moving enormous pools of wealth away from the highly regulated commercial and investment banks into the fast-paced, creative, and aggressive hedge funds. This is because, in many ways, the hedge funds represent a more pure capitalist system.
http://mises.org/story/3728

Taibbi’s Naked-Shorting Rage: Goldman’s Lobbying, SEC’s Fail
http://www.dailykos.com/storyonly/2009/9/30/787963/-Taibbis-Naked-Shorting-Rage:-Goldmans-Lobbying,-SECs-Fail

Hedge Funds Become Sugar Daddies
Hedge funds, it seems, are getting high on sugar. Massive bets by hedge funds are pushing sugar prices near 30-year highs, much like their previous moves on crude oil sent prices doubling, The New York Post reported.
http://dealbook.blogs.nytimes.com/2009/09/30/hedge-funds-become-sugar-daddys/

Leaping off of the Hedge Fund slush pile: How to get noticed during Capital Intros
How to get noticed at capital intros, meet-the-manager forums, and other close encounters with potential investors — With increased competition…
http://www.hedgetracker.com/article/Leaping-off-of-the-Hedge-Fund-slush-pile-How-to-get-noticed-during-Capital-Intros

Derivatives markets tackle trade dispute procedures
By Karen Brettell
NEW YORK, Sept 29 (Reuters) – Large derivatives dealers and fund managers are developing new methods to resolve disputes over collateral used to back the trades which if left unchecked can threaten large unexpected losses.
http://www.reuters.com/article/marketsNews/idUSN2956179720090929

65% of investment managers bullish on Canadian equities: Russell
But a growing number believe Canadian stocks are overvalued
http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=50851&IdSection=147&cat=147

Athens Exchange S.A.: The First Multimarket ETF On The New Greek Turkish Index GT30
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=85669

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

SGX wins exchange of year award
By Mok Fei Fei, Channel NewsAsia
SINGAPORE : The Singapore Exchange (SGX) has been named Asia’s “Exchange of the Year” by trade magazine Energy Risk.
http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1008326/1/.html

The long road to success in China
By Barbara Kollmeyer
MADRID (MarketWatch) — With the stock market in China having soared from its lows a year ago, talk of a bubble has been growing louder. But veteran investors say you should avoid any attempt to time the volatile China market and simply ride out the ups and downs for what promises to be steady long-term gains.
http://www.marketwatch.com/story/its-a-long-road-to-investment-success-in-china-2009-09-30?siteid=rss&rss=1

China Investors Opened 350,382 New Stock Accounts Last Week
http://www.bloomberg.com/apps/news?pid=20601089&sid=aETgJdV5iKiE

Shanghai beckons biggies
Investment banks, securities brokerages and law firms are actively preparing to assist multinational companies to list on the proposed Shanghai international board although the timing of the bourse’s launch has yet to be announced.
http://english.people.com.cn/90001/90778/90857/90859/6773688.html

Need for more money managers depends on results of Fund study
By Moneth Deposa
The NMI Retirement Fund’s board of trustees will soon decide whether to hire or retain more money managers once the results of an assets liability study are issued and endorsed for board approval.
http://www.saipantribune.com/newsstory.aspx?cat=1&newsID=93951

Japan set to end 115-year-old raw silk futures trading
Tokyo: Japan on Wednesday will end 115 years of raw silk futures trading that help to support its modernisation through the latter half of the 19th century but declined during the course of post-war industrial restructuring.
http://www.zeenews.com/news567282.html

HKEx: Report On Initial Public Offering Applications, Delisting And Suspensions (As At 30 September 2009)
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=85672

Frontier Markets

Are investors missing out on sub-Sahara Africa?
By Alonzo Fulgham
Washington – Here’s some good, if counterintuitive, news for American investors. Normally, by the time an investment tip makes its way into a newspaper, conventional wisdom says the money is already off the table. Not so in the case of sub-Saharan Africa. American investors and companies are overlooking an investment opportunity in plain sight. And the smart money will climb aboard before the economic tide rises. The rest will miss a fast-moving boat.
http://www.csmonitor.com/2009/0929/p09s01-coop.html

India extends commodity bourse investment deadline
MUMBAI, Sept 30 – India has given a final six-month extension to foreign firms who have to reduce their individual stakes in local commodity exchanges to 5 percent to meet foreign investment regulations, the government said on Wednesday.
http://malaysia.news.yahoo.com/rtrs/20090930/tbs-india-commodity-bourses-02c71ef.html

Abu Dhabi bourse warns banks on Saudi exposure
By Stanley Carvalho
ABU DHABI, Sept 30 – The Abu Dhabi Securities Exchange has directed banks to provide details of exposure and provisions taken to troubled Saudi groups Saad and Algosaibi as part of regulatory measures, the bourse said on Wednesday.
http://sg.news.yahoo.com/rtrs/20090930/tbs-adx-banks-7318940.html

Ivorian Cocoa, Coffee Bourse Workers Threaten Strike (Update1)
By Monica Mark
Sept. 29 (Bloomberg) — Workers at Ivory Coast’s cocoa and coffee exchange threatened to disrupt the new season that begins on Oct. 1 unless the government clarifies the effects of proposed budget cuts and reforms, a labor union official said.
http://www.bloomberg.com/apps/news?pid=20601116&sid=aa5zfTWNWnVg

Sharjah Islamic Bank Loaned 55.4 Million Dirhams to Algosaibi
http://www.bloomberg.com/apps/news?pid=20601104&sid=aC0nYDVehKfo

Miscellaneous News

CQG Adds Price Capturing and Risk Tools to Futures Trading Platform
CQG said Tuesday it has added real-time price capture, error detection and risk management features to its trading platform, by working with algorithm supplier Progress Software. This is the second result of a partnership first disclosed in November. That gave the CQG futures trading platform the ability to automate trading activity and employ custom algorithms provided by Progress Apama. CQG gives futures traders routing, graphics and technical analysis tools.
http://www.securitiesindustry.com/news/-24009-1.html

Cogent Consulting Releases Free Broker Review System for Hedge Funds
SUMMIT, N.J.–(BUSINESS WIRE)–Cogent Consulting LLC today announced a free version of its HedgeTrak web-based broker review and evaluation service for hedge funds. HedgeTrak Lite enables hedge funds to properly value trading and research services provided by their brokerage firms, in anticipation of upcoming registration requirements, and to meet the competitive requirements demanded by clients.
http://finance.yahoo.com/news/Cogent-Consulting-Releases-bw-3599475612.html?x=0&.v=1

Improving OTC Derivatives Valuations
ROCKVILLE, MD–(Marketwire – 09/30/09) – MarketResearch.com has announced the addition of TowerGroup’s new report “How Much Is That Security in the Window?
http://finance.yahoo.com/news/Improving-OTC-Derivatives-iw-951882253.html?x=0&.v=1

Integral Development Corp. Launches TrueFX
http://www.financetech.com/news/wallstreet/showArticle.jhtml;jsessionid=MMFAMI0EAKOBDQE1GHPSKH4ATMY32JVN?articleID=220300500

What Happens Next? Chicago City Day
October 19, 2009
11:30AM – 6:00PM

Chicago Marriott Downtown
540 North Michigan Avenue
Chicago, Illinois 60611

What Happens Next?” It’s the question on everyone’s lips.

You’re invited to join us in Chicago to find out how turbulent times in the financial markets can create exceptional opportunities for companies that are disciplined and decisive. John Lothian, our general session keynote speaker, will explore the key issues impacting your business in order to help you to seize the advantage in an uncertain economic climate. Also, hear from industry leaders discussing new trends and opportunities in the following areas:

Observations – Statistics – Commentary

SEC Reviewing Securities Lending
The SEC chairman said the agency is conducting a “wholesale review” of the securities-lending marketplace.
http://online.wsj.com/article/SB125415836962146789.html?mod=WSJ_hps_LEFTWhatsNews

SEC Announces Panelists for Securities Lending and Short Sale Roundtable
Overview of Securities Lending: Participants; Process; Benefits and Pitfalls
* Jerry Davis, New Orleans Municipal Employees’ Retirement System
* David Downey, OneChicago * Irving Klubeck, Pershing LLC
* William Pridmore, William F. Pridmore, Ltd.
* Professor Adam Reed, University of North Carolina
http://www.sec.gov/news/press/2009/2009-207.htm

*** This should be the most interesting panel with the outspoken David Downey of OneChicago talking about his favorite subject.

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Testimony of Chairman Gary Gensler, Commodity Futures Trading Commission Before the House Committee On Agriculture
September 22, 2009

“I believe it would be appropriate for clearing members, most of whom would be financial institutions, to have the ability to enter into individualized credit arrangements with end-users that are not major market participants to satisfy the margin obligations of such end-users.”

http://www.cftc.gov/stellent/groups/public/@newsroom/documents/speechandtestimony/opagensler-10.pdf

**** This is a really bad idea by CFTC Chairman Gensler, in my humble opinion. First off, currently if FCM customers borrow money from the FCM (in the form of uncollected debits), there is a capital charge of 100% of the amount of the debit/borrowing for the FCM. Secondly, FCM’s are not investment banks, though they may be owned by investment banks. Most of the time, these are different operations, profit centers, cultures, values, expertise and fiefdoms. If a customer has collateral and wants to borrow money, have them go to the bank. Don’t make FCM’s into something they are not. They don’t want to lend money against something they can’t quickly liquidate if necessary. A power plant is a great asset to own, but it is pretty difficult to turn into instant liquidity. Futures clearing works because firms put up liquid assets. And it works because Futures Commission Merchants are not at the mercy of their clients credit needs as well as their market risk.

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`Black Swan’ Author Nassim Taleb Asks Why Bernanke, Geithner Kept Posts
Nassim Taleb, author of “The Black Swan,” questioned why Federal Reserve Chairman Ben S. Bernanke, and Treasury Secretary Tim Geithner kept their posts after failing to foresee the collapse in global credit markets.
http://www.bloomberg.com/apps/news?pid=20601014&sid=ajnBClVe3IrM

**** Perhaps Bernake and Geithner have been fooled by randomness.

++++

NYMEX Green Exchange‘s new CEO thinks global
By Michael Szabo
LONDON (Reuters) – Less than two weeks after taking the helm of NYMEX’s struggling Green Exchange, Tom Lewis is wasting no time preparing to battle for supremacy in the $126 billion global emissions market. “We’ve got many arrows in our quiver. Our goal is to go at this from all fronts,” he told Reuters in an interview, adding that Green Exchange has the backing of major investment banks. “We intend on becoming the largest global platform for emissions trading.”
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE58O4ZV20090925

**** For once I would like a CEO to say, “we want to be the best, not necessarily the biggest.”

++++

Hedge Fund Executive Dies After Escalator Fall
ATLANTIC CITY, N.J. — Atlantic City police are investigating how a hedge fund executive fell to his death from an escalator.
http://www.foxnews.com/story/0,2933,556324,00.html

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The London Stock Exchange today declared more than 130 staff redundant after a difficult five months that saw a sharp drop in demand for its core services.
LSE cuts 130 jobs after fall in trading
• London Stock Exchange admits ‘challenging’ year ahead
• Drop in volumes and competition from rivals hit demand
http://www.guardian.co.uk/business/2009/sep/24/lse-demand-falls-layoffs

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KC Board of Trade sets wheat-trading record
The Kansas City Board of Trade on Friday set a new daily volume record for electronic trading in its hard red winter wheat futures contract. The exchange tallied 27,454 contracts, a 22.5 percent increase from the previous daily record of 22,407 contracts set in February 2008.
http://economy.kansascity.com/?q=node/4032

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CME hit 5% above yesterday’s closing price.
http://finance.aol.com/quotes/cme-group-inc/cme/nas

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In defence of financial innovation
By Robert Shiller
http://www.ft.com/cms/s/0/c4a74ba2-ab83-11de-9be4-00144feabdc0.html

A Better Blueprint for Financial Regulation
By ROBERT C. POZEN
Ideas on how to restructure financial regulation.
http://online.barrons.com/article/SB125391751717842265.html

++++

Orc | News – Issue 6, September 2009
http://hosted.vresp.com/284092/5d0d1ce994/1323001448/4b000c4d69/

Orc Software: Bank of America Merrill Lynch expands participation in Orc ExNet to provide algorithmic Trading services for US options and equities
http://www.businesswire.com/news/home/20090928005347/en

++++

Cinnober extends agreement with Borsa Italiana
28 Sep 2009: News alert – Cinnober and Borsa Italiana—part of the London Stock Exchange Group—have extended the license and support agreement for the real-time market data system DDM Plus.
http://www.cinnober.com/pressrelease/cinnober-extends-agreement-borsa-italiana

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Webinar: Accessing MexDer Today- What’s on the Horizon
Thursday, October 1st, 3:30pm Chicago Time (Central time)
Co hosted with MexDer
Join RTS us as John Dempsey interviews MexDer’s CEO,Jorge Alegria.

In this webinar, you will:
• Hear about new products and the future of this exchange
• Understand what opportunities are available in this market
• Learn how you can access this market remotely and fast
• Hear about milestones achieved in order to make access easy
• Learn about the history and evolution of MexDer what is on the horizon
Please email events@rtsgroup.net to register for this webinar.

++++

JLN IR Here

Should the Reserve Bank of India transfer bond, forex market regulation to Securities and Exchange Board of India?
http://tiny.cc/Dj9MV

Chinese Bond Sale Tests Global Demand: China started selling yuan-denominated sovereign bonds
http://bit.ly/16MYQU

Noted in blog:
High levels of government debt around world remain most likely trigger of next economic downturn-IMF http://bit.ly/j3jXw

You can follow the newly launched JLN Interest Rate blog at www.jlninterestrates.com.

MarketsWiki Recent Updates

People

Dominick A. Chirachella‎; Paul Cicio‎;

Companies, Organizations and Groups

National Futures Association‎; The Federal Reserve‎; BNY ConvergEX Group, LLC‎; National Commodity & Derivatives Exchange‎; CCP12‎; NYSE Arca Options‎; BATS Global Markets‎; Liquidnet‎; Burgundy‎; Jaypee Capital Services‎; RTS Realtime Systems Group‎;

Products

ETF Securities Natural Gas ETC‎;

Miscellaneous

Trading in the Retail Off-Exchange Foreign Currency Market – What Investors Need to Know‎; Security Futures: An Introduction to Their Uses and Risks‎; NFA Arbitration: Resolving Customer Disputes‎; Introduction to National Futures Association‎; Direct Market Access‎; Job Postings‎;

Notes: Some of you may have been invited to an Oktoberfest. Here is a guide for Dress for Oktoberfest, http://howto.wired.com/wiki/Dress_for_Oktoberfest

_______________________________________________________

Lead Stories

Nobel Prize Winning Economist Harry Markowitz to Receive 2009 CME Group Fred Arditti Innovation Award
http://cmegroup.mediaroom.com/#

City hedge fund exodus begins
BREVAN HOWARD, the UK’s largest hedge fund, is planning to open an office in Switzerland, perhaps signalling the beginning of a mass exodus by financial groups from London.
The hedge fund, which has assets under management of close to $27 billion (£17 billion), has instructed property agents to find an office in the tax haven with capacity for at least 100 staff. It has narrowed the search to Geneva and the nearby Nyon.
http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article6850919.ece

A New Investment Vehicle for Taming Futures
By TOM SULLIVAN
Managed futures offer greater yields, lower risk.
THE RED SOX ARE CHASING A PLAYOFF SPOT in Major League Baseball, but club co-owner and legendary investor John Henry is busy chasing what he hopes will turn out to be a sweet spot for alternative investors — managed futures.
http://online.barrons.com/article/SB125391758735842269.html?mod=googlenews_barrons

Toronto Stock Exchange to Implement 25% Dilution Threshold for Public Company Acquisitions
http://finance.yahoo.com/news/Toronto-Stock-Exchange-to-cnw-778634902.html?x=0&.v=1

Fast traders could shake up US options pay system
OPTIONS/FEES (ANALYSIS):ANALYSIS-Fast traders could shake up US options pay system
* Payment-for-order-flow long used by biggest exchanges
* SEC official: a “distasteful” system long on the agenda
By Jonathan Spicer
NEW YORK (Reuters) – The influx of high-speed electronic traders in U.S. options markets may spur regulators to finally move on decades-long concerns over how some exchanges lure business their way.
http://www.forbes.com/feeds/reuters/2009/09/25/2009-09-25T203204Z_01_N25499490_RTRIDST_0_OPTIONS-FEES-ANALYSIS.html

LSE’s Capuano Tells Corriere the Exchange May Make Acquisitions
By Elisa Martinuzzi
Sept. 27 (Bloomberg) — London Stock Exchange Group Plc’sMassimo Capuano said the company will grow through “external and internal” means, Corriere della Sera reported, citing an interview with the executive.
http://www.bloomberg.com/apps/news?pid=20601102&sid=ahnsk5xRmxjY

Italian Bond Futures Falter as Volumes Slide (Update1)
By Anchalee Worrachate
Sept. 28 (Bloomberg) — Italian bond-futures trading fell last week to a third of the level on the first day, prompting concern about the effectiveness of the contract as a hedging tool for Europe’s lower-rated debt, Commerzbank AG said. Trading in so-called BTP futures slid to 2,600 contracts at the end of last week, compared with 8,090 on Sept. 14, when the contract on Eurex began following a 10-year absence, according to data from the exchange. On the week, the average number of futures changing hands dropped 23 percent.
http://www.bloomberg.com/apps/news?pid=20601009&sid=albopczQD8xc

New players spur hedge-fund secondary market
As redemption freeze melts, there may not be enough business to go round
http://www.marketwatch.com/story/new-entrants-swamp-secondary-hedge-fund-market-2009-09-25

Industrial groups warn on OTC rules
By Jeremy Grant in London
Some of Europe’s largest industrial companies have warned they could shift their financial hedging away from Europe if proposed reforms of the vast over-the-counter (OTC) derivatives markets go ahead as proposed by the European Commission.
http://www.ft.com/cms/s/0/1a399154-ab81-11de-9be4-00144feabdc0.html

NYSE Euronext chief sounds alarm against overregulation
By TAKASHI KITAZUME
When the major economies map out their postcrisis financial reforms, they should avoid overregulating the financial services industry in the United States and focus instead on smarter application of existing regulations, the chief executive officer of NYSE Euronext said in Tokyo recently.
http://search.japantimes.co.jp/rss/nb20090928d1.html

Greek, Turkish bourses launch common stock index
http://malaysia.news.yahoo.com/rtrs/20090928/tbs-greece-turkey-stocks-0b94ddd.html

G20 Leaders Tout Progress on Bank Regulation, But Big Issues Remain
By DAMIAN PALETTA
WASHINGTON—U.S. and foreign leaders meeting at the Group of 20 summit agreed to toughen regulation of global banks, but some key differences remain related to capital rules, compensation and derivatives oversight.
http://online.wsj.com/article/SB125399954972243719.html

Zoellick Favors Power for Treasury, Not Fed
By JON HILSENRATH
WASHINGTON — World Bank President Robert Zoellick questioned the wisdom of giving the Federal Reserve more power over banks, as the Obama administration has proposed.
http://online.wsj.com/article/SB125409936849345249.html

G-20 Leaders Vow to ‘Raise Standards’ on Financial Regulation
By Christine Harper
Sept. 26 (Bloomberg) — Leaders of the Group of 20 countries said they will implement financial regulatory reforms that “raise standards together” to prevent companies from seeking out jurisdictions with less-stringent oversight.
http://www.bloomberg.com/apps/news?pid=20601103&sid=aF5cR_E70CtU

Bond Traders Are Doubters, Lemmings or Sissies: Caroline Baum
Commentary by Caroline Baum
Sept. 28 (Bloomberg) — I’ve been watching the bond market recently, but frankly there hasn’t been much to see. Treasury yields ebb and flow in the narrowest of ranges, with an occasional hiccup to break the monotony, seemingly immune to economic news or what’s going on in other markets.
http://www.bloomberg.com/apps/news?pid=20601039&sid=aLDTrQhTKGis

An Interview With Barney Frank
http://voices.washingtonpost.com/ezra-klein/2009/09/an_interview_with_barney_frank.html

BATS CEO Sees Partnerships, Brand Growth In Index Launch
By Jacob BungeCHICAGO (Dow Jones)–BATS Global Markets on Monday launched a new equity benchmark that its chief executive claims will provide a better view of U.S. equities performance than existing indexes.
The launch of the BATS 1000 index will open up new partnership opportunities for the market operator, based in Kansas City, Mo., while boosting its name recognition among the general public, said CEO Joe Ratterman. “There hasn’t been a lot of movement in the broad market index space for a long, long time,” Ratterman said in an interview. “It did seem to us that there was room for some new material and a bit of innovation there.”

Speech of Chairman Gary Gensler, OTC Derivatives Regulation, European Commission, September 25, 2009
http://www.cftc.gov/stellent/groups/public/@newsroom/documents/speechandtestimony/opagensler-12.pdf

CFTC’s Gensler Calls For Uniform Global Derivatives Rules
By Sarah N. Lynch
WASHINGTON -(Dow Jones)- The head of the U.S. regulatory agency for the futures markets on Friday will try to convince European regulators to adopt a regime for all over-the-counter derivatives that is similar to the Obama administration’s proposal. In a speech before the European Commission in Brussels, U.S. Commodity Futures Trading Commission Chairman Gary Gensler will speak about the benefits of regulating derivative dealers and mandating that over-the-counter products be traded on regulated platforms and processed through clearinghouses, which guarantee trades.
http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=200909250345dowjonesdjonline000277&title=cftcs-gensler-calls-for-uniform-global-derivatives-rules

CFTC’s Gensler Sees Harmony With EU On New Derivatives Rules
http://online.wsj.com/article/BT-CO-20090925-708669.html

Treasury’s No. 2 Wolin Says Financial Rules Overhaul Is Likely This Year
Deputy Treasury Secretary Neal Wolin, the department’s No. 2 official, said he expects Congress to revamp financial regulations for Wall Street this year.
http://www.bloomberg.com/apps/news?pid=20601109&sid=aaPrdEtJLb2o

Environmental Trading News

Emissions Trading Scheme creates a new currency
http://www.linexlegal.com/content.php?content_id=114484

The Possibility of Carbon-Trading Fraud Elbows Into Senate Climate Debate
A year after the collapse of Lehman Brothers touched off a global crisis, concern that wild financial speculation and trading abuses would undermine a U.S. greenhouse gas emissions market has put the “trade” part of the proposed national cap-and-trade program on trial.
http://www.nytimes.com/cwire/2009/09/25/25climatewire-the-possibility-of-carbon-trading-fraud-elbo-90802.html

On to Senate for cap-and-trade bill
Action on national legislation to regulate emissions of carbon dioxide and other gases linked to global warming is expected to intensify next week.
http://www.jsonline.com/blogs/business/61450992.html

Visit http://www.jlnenvironmental.com to subscribe.

Exchange & ECN News

Quadriserv, Inc. Welcomes 26 New Member Firms to the AQS(R) Securities Lending Platform
http://finance.yahoo.com/news/Quadriserv-Inc-Welcomes-26-pz-1791638739.html?x=0&.v=1

United States: CME Group Releases White Paper Providing Recommendations For Imposing Position Limits In Energy Derivatives Markets
Article by Sohair Ahmadi, Paul J. Pantano Jr. and Gregory G. Mocek
http://www.mondaq.com/article.asp?articleid=86578

ASX gets a ‘please explain’ on BrisConn
MARK HAWTHORNE
IT’S rare for anything to be written about BrisConnections without the spectre of Nicholas Bolton hanging over it. Bolton made an opportunistic share grab late last year when the company’s units flatlined at 0.1¢ apiece, the lowest trading price allowed on the Australian Securities Exchange. Now the ASX is the subject of a ”please explain” from the Australian Securities and Investments Commission, which wants to know how BrisConnections traded at the floor price for five months with no intervention.
http://www.theage.com.au/business/asx-gets-a-please-explain-on-brisconn-20090928-g96n.html

kids.now and The Power of 10 Project Partners Open the Market
Janet King, President and Founder of charity kids.now, along with kids.now program participants and representatives from Jays Care Foundation, Rogers, State Farm, and TD Bank Financial Group, opened the market today to celebrate kids.now’s 10th anniversary.
http://www.tmx.com/en/index.html

Unscheduled Free Float Adjustment in TecDAX
Adjustment for IDS Scheer AG as of 29 September 2009
http://bit.ly/5MhVj

Julius Bär Gruppe AG and GAM Holding AG:Introduction of Stock Futures and Options
http://www.eurexchange.com/trading/products/EQU/news_EQU/productNews_2009_09_28_1037_en.html

Julius Bär Holding AG: Further Information on the Separation
http://www.eurexchange.com/trading/products/EQU/news_EQU/productNews_2009_09_28_1036_en.html

BATS Exchange Unveils BATS 1000 Index
09/28/09 New index from third-largest US equities exchange will “more accurately depict the direction, intensity and mood of the US market,” CEO says.
http://www.batstrading.com/resources/press_releases/BATS_Exchange_Unveils_BATS_1000_Index_FINAL.pdf

Advisors Asset Management Introduces the NASDAQ Q-50 Index Portfolio
http://bit.ly/rgu8l

NYSE Euronext Honors Employee Volunteers
NYSE Euronext employee volunteers ring The Opening BellSM. An archived webcast of The Opening Bell is available.
http://www.nyse.com/events/1254133022683.html

ETF Securities USA LLC Celebrates Recent ETFS Physical Swiss Gold Shares Listing
http://www.nyse.com/events/1253874621680.html

NYSE Announces Quarterly Changes to the NYSE Family of Indexes
http://www.nyse.com/press/1253874622044.html

ASIC Market Assessmenr Report of ASX and ASX Group Activities Report
http://www.asx.com.au/about/pdf/mr_280909_asx_response_asic_group_activities_report09.pdf

CBSX Trader News Update CBSX to Add New Stocks for Trading
http://www.cboe.org/publish/InfoCir/IC09-303.pdf

Systematizing Orders & COATS Requirements
http://www.cboe.org/publish/RegCir/RG09-105.pdf

BM&FBOVESPA sets new record via DMA order routing with CME GLOBEX
September 28th, 2009 – BM&FBOVESPA sets new record via DMA order routing with CME GLOBEX
http://www.automatedtrader.net/news/direct-market-access-news/17791/bmfbovespa-sets-new-record-via-dma-order-routing-with-cme-globex

Banks, Brokers & Dark Pools

Citigroup sues Morgan Stanley over credit-default swap agreement
On Friday, Citigroup Inc. (NYSE: C) filed suit in U.S. District Court in Manhattan against rival Morgan Stanley (NYSE: MS) for allegedly breaching a credit-default swap agreement. The suit seeks unspecified damages.
http://www.bloggingstocks.com/2009/09/26/citigroup-sues-morgan-stanley-over-credit-default-swap-agreement/

A bank by any other name is still called a bank, or Merrill Lynch
How nice. The bank we all know as Merrill Lynch is changing its name – from something you’ve never heard of to something you will probably never hear again.
http://bit.ly/1SJCKf

Ohio Atty General Targets Bank of America, Executives Over Merrill
http://bit.ly/9SY5Q

Boies Schiller Files Suit Against Bear Stearns
http://finance.yahoo.com/news/Boies-Schiller-Files-Suit-law-206224999.html?x=0&.v=1

Bank of America Merrill Lynch Expands Participation in Orc ExNet
Alexa Jaworski
Bank of America Merrill Lynch and Orc Software said today that users of Orc ExNet broker connectivity network will now gain expanded access to Bank of America Merrill Lynch’s U.S. options algorithm platform.
http://www.securitiesindustry.com/news/-24006-1.html

Merrill exec eyes return
Merrill Lynch’s onetime second-in-command, Greg Fleming, is gearing up for a return to Wall Street wheeling and dealing after spending a little more than eight… 3:57 A
http://www.nypost.com/p/news/business/merrill_exec_eyes_return_j4eUhg3jIvGQdRpZKkNFoM

He’s gunning for Bear
Big investor says fallen firm lied about its woes
Nearly two years after the stunning collapse of Bear Stearns, activist investor Bruce Sherman doesn’t appear able to put the firm’s demise behind him — and that’s bad news for former Bear CEO Jimmy Cayne.
Cayne is one of several targets that Sherman is aiming at in a lawsuit that claims Bear misled and misrepresented facts to investors about the firm’s financial health leading up to the Federal Reserve-forced sale of the once-venerable Wall Street firm to JPMorgan Chase in March 2008.
http://www.nypost.com/p/news/business/he_gunning_for_bear_LO3Yl0E1X5xxrD9IFJHLDL

JPMorgan’s London head slams ‘greed’ of bankers
One of the most senior investment bankers in London has weighed in on the controversy over pay in the industry, attacking City and Wall Street employees as “greedy” and “inept”. Bill Winters, the co-chief executive of JPMorgan’s investment banking arm, laid the blame for the financial crisis squarely on the shoulders of his fellow bankers.
http://www.thisislondon.co.uk/standard-business/article-23749028-jpmorgans-london-head-slams-greed-of-bankers.do

Banks Made $5.2 Billion in Derivatives Trading
http://online.wsj.com/article/SB125389784866941429.html

Goldman Sachs launches recruiting drive
By Kate Burgess in London
Goldman Sachs has launched an aggressive recruiting drive to build its asset management business at a time when its rivals are pulling back from fund management.
http://www.ft.com/cms/s/0/7e2a3312-ab90-11de-9be4-00144feabdc0.html

CHX ANNOUNCES EXTENDED TRADING HOURS
Chicago, September 25, 2009 – The CHX announced today that beginning Monday, September 28, 2009 it would extend its trading hours with the addition of two new trading sessions. An early session will run from 6:00 AM to 8:30 AM Central Time (CT) and a late session will run from 3:00 PM to 3:15 PM CT. The current “Late Trading Session” has been renamed the “Late Crossing Session” and operates in its current manner from 3:15 PM to 4:00 PM CT.
http://www.chx.com/content/Inside_CHX/PR_Article_092509.html

Bank of America Merrill Lynch expands participation in Orc ExNet to provide algorithmic trading services for US options and equities
http://www.orcsoftware.com/News/Rss-Detail-Page/?item=449434&type=Rss

Royal Bank of Scotland accused of ‘bullying’ loan clients
Royal Bank of Scotland, the part-nationalised lender, has been accused of “blackmailing” companies by demanding they sign it up as an investment banking adviser in return for debt.
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/6237733/Royal-Bank-of-Scotland-accused-of-bullying-loan-clients.html

Brevan Howard Says Unit May Open Switzerland Office After U.K. Taxes Rise
Brevan Howard Asset Management LLP, Europe’s largest hedge-fund manager, said the parent of its offshore unit may open an office in Switzerland.
http://www.bloomberg.com/apps/news?pid=20601014&sid=ayDRZGu3lcqw

UBS Names Jimmy Neissa, John Wall Investment Banking Co-Heads With Leaman
UBS AG, Switzerland’s biggest bank by assets, named Jimmy Neissa and John Wall global co-heads of investment banking alongside Rick Leaman.
http://www.bloomberg.com/apps/news?pid=20601208&sid=aVYZ8TTY_6CQ

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/2009/dig092509.htm

SEC Disability Program Office
http://www.sec.gov/eeoinfo/sec_access.htm

NYSE: Notice of Filing and Immediate Effectiveness of Proposed Rule Change by New York Stock Exchange LLC Extending Until October 4, 2009, the Operation of Interim NYSE Rule 128 which Permits the Exchange to Cancel or Adjust Clearly Erroneous Executions if they Arise Out of the Use or Operation of Any Quotation, Execution or Communication System Owned or Operated by the Exchange, Including those Executions that Occur in the Event of a System Disruption or System Malfunction (Release No. 34-60712; File No. SR-NYSE-2009-97; September 23, 2009)
http://www.sec.gov/rules/sro/nyse/2009/34-60712.pdf

FSA proposes significant strengthening of protections for sale and rent back customers
http://www.fsa.gov.uk/pages/Library/Communication/PR/2009/128.shtml

Australian Court Allows Claims Against Lehman
An Australian court has ruled that local governments can pursue financial claims against collapsed U.S. investment bank Lehman Brothers in Australia and elsewhere, a firm that is funding the litigation said Monday.
http://dealbook.blogs.nytimes.com/2009/09/28/australia-court-allows-claims-against-lehman/

SEC sues Waterford man accused in Ponzi scheme
BY Paul Egan
Detroit — The U.S. Securities and Exchange Commission filed a federal lawsuit today against a Waterford Township financial adviser, alleging he targeted seniors in a $250 million Ponzi scheme.
http://www.detnews.com/article/20090928/BIZ/909280384/1409/METRO

SEC Charges Broker With Fraud In Ties To $250 Million Ponzi Scheme
The Securities and Exchange Commission has charged a Michigan stock broker with fraud, alleging he acted as a salesman in an alleged $250 million Ponzi scheme the agency first exposed nearly two years ago.
The agency alleged Frank Bluestein lured elderly investors into the scheme after convincing many of them to refinance their homes. The SEC said Bluestein acted as the single-largest salesperson in the scheme operated by Edward May and his company E-M Management Co.
http://bit.ly/1ANFaA

SEC Charges Detroit-Area Stock Broker Who Lured Elderly into $250 Million Ponzi Scheme
http://www.sec.gov/news/press/2009/2009-208.htm

Trial starts for Sweden’s largest insider scandal
http://www.thelocal.se/22332/20090928/

U.S. Says It Has ‘Proof’ of Cioffi’s Insider Trading
Sept. 28 (Bloomberg) — Prosecutors said they have “direct proof” that former Bear Stearns Cos. hedge fund manager Ralph Cioffi used his investment in a fund he controlled to lie to a bank and obtain a $4.2 million line of credit for a condominium development project.
http://www.bloomberg.com/apps/news?pid=20601103&sid=aL_xCH0xNbgY

FINRA Warns Brokers Against Fraudulent IOIs
By Nina Mehta, Traders Magazine
The Financial Industry Regulatory Authority warned broker-dealers last week not to misrepresent so-called natural indications of interest they send out to institutions.
http://www.financial-planning.com/news/finra-warns-brokers-agains-fradulent-IOIs-2664069-1.html

Saskatchewan cease-trade order issued over inflated shares
SFSC issues temporary ban on two Hong Kong-based companies
http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=50788&IdSection=8&cat=8

National Registration Regime Implemented: Canadian Securities Regulators Announce New Registration Rules and Streamlined Process for Dealers and Advisers
http://www.lautorite.qc.ca/pdf/com28sept2009-acvm-31-103-ang.pdf

Litigation Investor to Fund Town Council Lawsuits Against Lehman Australia
IMF (Australia) Ltd., a litigation funder, will pay for lawsuits by town councils against Lehman Brothers Holdings Inc’s Australian unit after a court ruled that an agreement preventing them from pursuing Lehman was invalid.
http://www.bloomberg.com/apps/news?pid=20601127&sid=aImEy77Wb8zM

What were the consequences of the CFMA?
Newsweek.com is doing a big month-long series on the end of the decade, and, inevitably, it’s going to feature lots of listicles. One of them is a list of the top ten “history altering decisions” — seemingly-small moves that had massive consequences. Each one is going to be written up, and Newsweek has asked me for a very short essay (just 200 words or so) on the consequences of Bill Clinton signing the Commodity Futures Modernization Act in 2000.
http://blogs.reuters.com/felix-salmon/2009/09/25/what-were-the-consequences-of-the-cfma/

Investments – Indexes – Managed Futures – Managed Funds

Prepare for enhanced disclosure on fees and services, advisors told
http://www.investmentexecutive.com/client/en/News/DetailNews.asp?id=50767&IdSection=8&cat=8&BImageCI=1

ETFs Challenge Mutual Funds’ Supremacy
By John Spence
Exchange-traded funds pose a growing threat to the entrenched supremacy of mutual funds as more investors are drawn to these low-cost, passively managed vehicles, analysts say.
http://online.wsj.com/article/BT-CO-20090928-704910.html

Pletschet: New ETFs same as old the ETFs
It’s a safe bet that another exchange-traded fund was created this past week because during the past 20 years, at least 1,000 have popped up on the stock market. That’s roughly one a week, so why should this past week be any different? The fact is that there are so many ETFs out there that even Wall Street seems to have lost count.
http://www.mercurynews.com/columns/ci_13421325?nclick_check=1

Smartest Currency Traders Juggle Krone, Krona, Kiwi in Central Banking Bet
Just as the Group of 20 warns against ending stimulus efforts, investors are betting interest- rate increases from Oslo to Stockholm to Wellington will provide the biggest boost to this quarter’s strongest currencies.
http://www.bloomberg.com/apps/news?pid=20601109&sid=aNOPoSQeJPtE

The ‘Indiana Jones of Finance’
NEW YORK (TheStreet) — Jim Rogers, the “Indiana Jones of Finance,” is known throughout Wall Street for his independent, contrarian investing style and his association with George Soros and the Quantum Fund. Though he has since retired, he continues to be a presence with his world travels and bold economic commentary. His work with commodities, in particular, has helped to influence the way the average investor looks at personal finance today.
http://www.thestreet.com/story/10603618/1/the-indiana-jones-of-finance.html?puc=_tscrss

Phibro Fund Rose 22% as Commodity Indexes Fell, Document Shows
By James Sterngold
Sept. 26 (Bloomberg) — Phibro LLC, the Citigroup Inc. energy-trading unit that the bank may be forced to sell, said funds that it manages for outside investors rose 22 percent since the start of 2008 as commodity indexes fell, a solicitation document showed.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aoG0GH2PhTIA

Top hedge fund clones add to fee pressure
By Steve Johnson
The performance of synthetic hedge fund clones is strong enough to start to put pressure on the high fees charged by many real hedge funds, according to a comprehensive academic review of the controversial concept.
http://www.ft.com/cms/s/0/8ea759a6-a9f9-11de-a3ce-00144feabdc0.html

Fund managers warn new rules will cost €1.9bn
Investment firms wary of proposed regulation
INVESTMENT fund managers have voiced concern to the European Commission, the Department of Finance and the Financial Regulator about plans to regulate the industry.
http://www.independent.ie/business/irish/fund-managers-warn-new-rules-will-cost-836419bn-1898151.html

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

HSBC chief moving to Hong Kong from London
In a sign of the growing importance of the Asian economies, HSBC announced that Michael Geoghegan, the group chief executive, will move from London to Hong Kong next year.
http://www.cnn.com/2009/BUSINESS/09/27/hsbc.ceo.move/index.html?section=cnn_latest

SGX chief took big pay cut
by Fiona Chan
THE outgoing chief executive of the Singapore Exchange (SGX), Mr Hsieh Fu Hua, took a huge pay cut in the last financial year in the wake of the economic downturn and share market slump.
http://www.asiaone.com/Business/News/My+Money/Story/A1Story20090925-169960.html

First rice exchange to open on November 26
Vietnam, the world’s second-biggest rice exporter, will open the country’s first exchange for the grain on November 26 to boost trading, an official said.
http://www.thanhniennews.com/business/?catid=2&newsid=52768

CIC, China’s Wealth Fund, to Invest $1 Billion With Oaktree, WSJ Reports
China Investment Corp. plans to invest about $1 billion with Oaktree Capital Management LP as part of a bid to start to put money directly into hedge funds around the world, the Wall Street Journal reported.
http://www.bloomberg.com/apps/news?pid=20601014&sid=aExQ3NwjuCO8

Instinet Wins AsianInvestor’s “Best Execution-Only Broker” Award
http://www.businesswire.com/news/home/20090928005289/en

Frontier Markets

Iranian bourse introduces OTC market
TEHRAN, Sept. 28 (MNA) — Over-The-Counter (OTC) trading was introduced at the Tehran Stock Exchange on Monday.
http://www.mehrnews.com/en/NewsDetail.aspx?NewsID=954740

Group Securities tops among brokerages in trading on the bourse
Santhosh V Perumal
Group Securities was the leading brokerage in trading on the Qatar Exchange in July, according to the latest figures available with the Qatari bourse. With 54.75% share of the stock trading volume, 50.06% of value and 60.09% in transactions, Group Securities topped the trading among the seven registered brokerages.
http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=316868&version=1&template_id=48&parent_id=28

Signs of life stir Zimbabwe’s stock market
HARARE (AFP) – Zimbabwe’s moribund economy is slowly stirring, with signs of life in once-shuttered businesses helping to revive a stock market that was closed amid scandal last year, analysts said.
http://news.yahoo.com/s/afp/20090927/bs_afp/zimbabwestockseconomy_20090927055208

Gulf single currency should be phased: Kuwait
KUWAIT CITY (AFP) – Gulf states should implement a monetary union and single currency in phases, Kuwait’s central bank governor said in comments published on Sunday, casting further doubt on a 2010 target date.
http://news.yahoo.com/s/afp/20090927/bs_afp/gulfgcceconomymoneykuwait_20090927173811

Miscellaneous News

Where’s The Beef?
Courtney Comstock
Thomas Brause went from the stock exchange to the sausage exchange after he was laid off last December
A year after being laid off from his Frankfurt-based brokerage firm, Thomas Brause is on the street serving bratwurst to finance guys less than 100 feet from his old office. Some of the customers that come to his street cart are former colleagues. “Tie-users,” he calls them, meaning they wear neckties to work.
http://www.forbes.com/2009/09/28/sausage-thomas-brause-restaurant-markets-faces-food.html?feed=rss_personalfinance

WeatherBug Professional to Host Fourth Annual Energy Trader Seminar – 2009 Winter Outlook
http://finance.yahoo.com/news/Media-Advisory-WeatherBug-bw-1851117773.html?x=0&.v=1

Complex Investments Spur Lawsuits in Europe
By CLAIRE COE SMITH
If European banks thought their problems in structured finance were almost over, a growing band of lawyers is bidding them to think again. The development follows in the footsteps of the U.S., where cases against financial-services firms increased significantly last year compared with the previous year, according to data from advisory firm Nera Economic Consulting. Banks in Europe are having to increasingly defend their roles in selling or structuring complex financial products, such as credit default swaps or collateralized debt obligations.
http://online.wsj.com/article/SB125409456225744433.html

“This Time Is Different”: Reinhart and Rogoff worry about future financial crises
http://www.businessweek.com/the_thread/economicsunbound/archives/2009/09/this_time_is_di.html

USAble Life Deploys SunGard’s iWorks for Group and Worksite Benefits
USAble Life Insurance has successfully implemented SunGard’s iWorks insurance solution suite to help it develop, deploy, sell and administer group insurance and worksite products.
http://www.sungard.com/pressreleases/2009/iworks092809.aspx

G-20 Plans to End `Financial Balance of Terror’ After Summit in Pittsburgh
President Barack Obama and fellow Group of 20 leaders are trying to end what Obama adviser Lawrence Summers has called the “financial balance of terror.”
http://www.bloomberg.com/apps/news?pid=20601208&sid=aVpPMKLa50rc

Parisian Asset Management Firm to Use Imagine Portfolio, Risk Management
http://www.financetech.com/news/wallstreet/showArticle.jhtml;jsessionid=XX0KVA2KCPWXFQE1GHPCKHWATMY32JVN?articleID=220300054

Neonet offers trading access to QUOTE MTF
September 28th, 2009 – Neonet offers trading access to the new alternative market QUOTE MTF
http://www.automatedtrader.net/news/mtf-news/17790/neonet-offers-trading-access-to-quote-mtf

RTS provides additional real-time data and news feeds with SemLab’s ViewerPro
September 28th, 2009 – SemLab feeds to enhance RTD Tango offering
http://www.automatedtrader.net/news/algorithmic-trading-news/17792/rts-provides-additional-real_time-data-and-news-feeds-with-semlabs-viewerpro

Integral Development Corporation launches TrueFX
Harpal Sandhu, CEO, Integral Development Corporation: “TrueFX is a paradigm shifting event that will change the way foreign exchange markets are organized.” Integral Development Corporation has announced the launch of TrueFX. TrueFX provides retail brokers with direct access to the interbank foreign exchange market. By increasing transparency and auditability for everyone, Integral predicts that a safer more trustworthy market will emerge, resulting in greater market participation. Built upon F.
http://www.automatedtrader.net/news.xhtm

QuoteMedia Wins Contract to Provide Streaming Portfolio Management Solutions to JitneyTrade
http://www.businesswire.com/news/home/20090928005173/en

More tax cases vs wealthy, U.S. banks
CHICAGO (Reuters) – The U.S. government is stepping up prosecutions of wealthy individuals dodging taxes through off-shore accounts, with new cases expected to be made public “every couple of weeks,” a top government attorney said on Saturday.
http://news.yahoo.com/s/nm/20090926/bs_nm/us_ubs_usa_tax

Madoff Family to Be Sued for $198 Million
As victims of Bernard Madoff’s massive Ponzi scheme seek to recoup some of their losses, it looks like Madoff’s family will soon be targeted. The trustee who’s winding down the Madoff company said on “60 Minutes” that the imprisoned schemer’s two sons, brother and niece will be slapped with a $198 million suit.
http://www.bloggingstocks.com/2009/09/28/madoff-family-to-be-sued-for-198-million

Observations – Statistics – Commentary

CFTC Sends Gas Investors To Europe
The August 12 suspension of new share issuance by the main US investment vehicle tracking natural gas futures prices, the US Natural Gas Fund, has led to a surge of investor inflows into the main European equivalent, the ETF Securities Natural Gas ETC.
http://bit.ly/2dMThN

++++

S&P May Introduce a Commodity Index Excluding U.S. Contracts
By Chanyaporn Chanjaroen
Sept. 25 (Bloomberg) — Standard & Poor’s may introduce an international commodity index that excludes U.S. derivatives as concern mounts among investors about possible restrictions stemming from increased rulemaking.
http://bit.ly/2aXwu

++++

New ideas fail to lift mood over dark pools
By Jeremy Grant
This week, Liquidnet, a US operator of “dark pools”, unveiled the latest device to emerge in European share trading, which it called “Supernatural”. The company claims it will help European fund managers increase their chances of finding matches for large blocks of shares in Liquidnet’s dark pool by linking it up with other exchanges, brokers and alternative trading platforms such as Chi-X Europe.
http://bit.ly/1asvqL

++++

David Prosser: How to make bankers pick up the bill
Outlook They make unlikely bedfellows, especially as Germany has spent much of this week carping about Britain’s self-interested approach to reform of financial regulation, but on one thing, the country’s finance minister, Peer Steinbrück, and Lord Turner, head of the Financial Services Authority, are agreed. Both believe that a tax on financial transactions – the so-called Tobin tax – is one measure on which the G20 should settle today.
http://bit.ly/ueELm

++++

G-20 vows against protectionism not always kept
By David J. Lynch, USA TODAY
As President Obama and other leaders of the G-20 nations prepare to meet today in Pittsburgh, it’s worth recalling what became of their previous promises. At earlier summits, G-20 leaders solemnly vowed to refrain from worsening the crisis by erecting new trade barriers — then returned home and promptly began erecting new trade barriers.
http://bit.ly/VIkAv

++++

RTS Provides Additional Real-time Data and News Feeds to Algorithmic Traders SemLab Feeds Enhance RTD Tango Offering
RTS Realtime Systems Group, a leading global trading solutions provider, announced that it has added an additional third party data provider to further strengthen its offering of low latency data and news feeds for algorithmic trading clients interested in event-based trading opportunities. RTS has integrated into RTD Tango, its algorithmic trading solution, feeds from Netherlands-based SemLab BV, which provides computer-readable news within milliseconds of an event.
http://bit.ly/14BUkI

++++

Zombie stocks enjoy monster trading days despite the high risks
A year ago, Washington Mutual collapsed into bankruptcy and disappeared. But its stock is still trading— in fact, WaMu shares posted a 64 percent gain Monday.
http://bit.ly/L6tiV

++++

Man sues BofA for “1,784 billion, trillion dollars”
By, Joe Rauch
NEW YORK (Reuters) – Dalton Chiscolm is unhappy about Bank of America’s customer service — really, really unhappy. Chiscolm in August sued the largest U.S. bank and its board, demanding that “1,784 billion, trillion dollars” be deposited into his account the next day. He also demanded an additional $200,164,000, court papers show.
http://bit.ly/4qdel0

++++

Boss blames smartphones for stress as company suicide rate comes under scrutiny
A top executive at France’s biggest telecommunications company, which is dealing with a spate of suicides, warned that the barrage of emails from smartphones and personal computers was stressing out employees. France Telecom chief financial officer Gervais Pellissier said workers in all big companies were under more pressure in the age of the BlackBerry.
http://bit.ly/4kyktz

****JM I’m guessing the real problem lies more with what’s in the email than with the mode of delivery…

++++

The Journalism Job Market: Part II, Downturn
Posted by: Michael Mandel
Warning: I’m going to violate all the canons of journalism by putting my conclusions at the end.
In my first post on the journalism job market, I broke down journalistic employment by industry. In response, Jeff Jarvis quite correctly wondered “Is journalism an industry?” Perhaps not—but journalism certainly is an occupation. So rather than relying on industry employment data, we can ask a simpler question (and one that might please Jeff): How many Americans call themselves journalists?
http://bit.ly/145lKh

****JT – I get a lot of “ouch” looks when I tell people I am earning my Masters in Journalism. The industry has taken a beating lately but my opinion is that the world will always need to be informed. Where there is great crisis, there is great opportunity.

++++

Is Twitter Worth a Billion Bucks?
By, Stephen Baker
Twitter’s home crowd can be pretty tough. When reports emerged on Sept. 24 that the microblogging service was close to securing $100 million in funding that valued the company at $1 billion, flurries of 140-character jeers flooded the service. “Nutty valuation,” wrote @Nicklippis. “I’ve seen this movie before,” twittered @ericclovesbacon. “It starred eToys.com and ended in fail.”
http://bit.ly/11nfvK

Lead Stories

New S.E.C. Rule Heightens Risk of Insider Trading
By FLOYD NORRIS
The Securities and Exchange Commission spends a lot of time and money trying to discover insider trading in stocks. But when it comes to structured financial products — the funny securities that were at the heart of the financial crisis — it has just adopted a proposal that will facilitate such trading.
http://www.nytimes.com/2009/09/25/business/25norris.html

Volcker Finds Few Friends Among Dems On Financial Regulatory Overhaul
By Corey Boles, Of DOW JONES NEWSWIRES
WASHINGTON -(Dow Jones)- Some Democratic members of the House Financial Services Committee rejected Former Federal Reserve Board Chairman Paul A. Volcker’s suggestion Thursday that the Fed should be given broad oversight authority of the financial markets.
http://bit.ly/zBHT5

Geithner Sees Global Pay Pact by Year’s End
Posted by: Theo Francis
PITTSBURGH – Treasury Secretary Timothy Geithner predicted world leaders in Pittsburgh would sign off on a “really far-reaching … pretty detailed” executive-pay standards to take effect by year’s end, lay the foundation for rebalancing world consumption and set out a timetable for reforming key aspects of financial regulation.
http://bit.ly/1dyWH

CFTC’s Gensler Calls For Uniform Global Derivatives Rules
By Sarah N. Lynch, Of DOW JONES NEWSWIRES
WASHINGTON -(Dow Jones)- The head of the U.S. regulatory agency for the futures markets on Friday will try to convince European regulators to adopt a regime for all over-the-counter derivatives that is similar to the Obama administration’s proposal.
http://bit.ly/hQmFC

Tax havens talk back against G20 “finger pointing”
Alan Markoff
Caribbean and Atlantic offshore finance centres are hitting back against attempts to portray them as shady tax havens and say world leaders are making them scapegoats for the global downturn.
http://uk.news.yahoo.com/22/20090925/tpl-uk-g20-taxhavens-sb-b64c7e7.html

Catching bad guys: Tough times at SEC
The government’s securities regulator has been under fire for some high-profile misses. Catching high-profile insider traders may help the agency gain public favor again.
http://money.cnn.com/2009/09/24/news/companies/sec_insider_trading_enforcement/index.htm?section=money_latest

World leaders to expand G20 powers
By Chris Giles in Pittsburgh
World leaders will agree to expand the role of the Group of 20 leading economies on Friday, putting it at the centre of international economic policy making in future. Following what G20 sources said was a successful dinner on Thursday night, the group will agree a “framework for strong, sustainable and balanced growth” which will represent a new way of coordinating economic policies around the world.
http://bit.ly/aXlx1

Fed’s Warsh: Policy Turn Could Be Aggressive
CHICAGO (Reuters) – The turn in Federal Reserve interest rate policy will likely come before it is clearly necessary based on economic conditions, and could be aggressive, a top Fed policy-maker said on Friday. Fed Governor Kevin Warsh said that data in the past couple of months show continued improvement in the economy, and that a virtuous circle could be developing between more stable financial markets and real activity.
http://bit.ly/2WFUYf

Bernanke: Consumer Loan Program Still Needed
WASHINGTON (AP) — Federal Reserve Chairman Ben Bernanke said Friday a government program intended to spark lending to consumers and businesses is still necessary even with other emergency lending programs winding down as the economy recovers. ”An ongoing need still clearly exists” for the program, which also is aimed at making sure loans flow to the troubled commercial real estate market, Bernanke said in brief remarks to a conference here sponsored by the Congressional Black Caucus Foundation.
http://bit.ly/eQriA

New Signs Emerge That Recovery Will Be Shaky
By JACK HEALY
Although the economy is gradually clawing its way back, new figures on home sales and manufacturing activity suggest that the recovery is likely to occur in fits and starts because of high unemployment, a mercurial stock market and shaky consumer demand. “It’s not going to be smooth,” said Bernard Baumohl, managing director of the Economic Outlook Group, who is expecting a strong rebound. “We will be moving three steps forward and one step back. But on the whole, I expect this recovery’s going to be moving upward.”
http://bit.ly/9KUzN

Environmental Trading News

The Possibility of Carbon-Trading Fraud Elbows Into Senate Climate Debate
By JOEL KIRKLAND of ClimateWire
A year after the collapse of Lehman Brothers touched off a global crisis, concern that wild financial speculation and trading abuses would undermine a U.S. greenhouse gas emissions market has put the “trade” part of the proposed national cap-and-trade program on trial.
http://www.nytimes.com/cwire/2009/09/25/25climatewire-the-possibility-of-carbon-trading-fraud-elbo-90802.html

Greenhouse Gas Reporting Requirements Finalized
A major new regulatory requirement, starting January 1, 2010, will affect most large industrial and utility combustion sources in the US. Fossil fuel and industrial GHG suppliers, motor vehicle and engine manufacturers, and facilities that emit 25,000 metric tons or more of CO2 equivalent per year will be required to report GHG emissions data to EPA annually. This threshold is equivalent to about the annual GHG emissions from 4,600 passenger vehicles.
http://www.enn.com/ecosystems/article/40522

Australian Miners Plan Anti Carbon Trade Ads, Australian Says
By Sarah McDonald
Sept. 25 (Bloomberg) — Australian coalminers will pay for a multi-million dollar advertising campaign criticizing the country’s planned carbon emissions trading framework, the Australian newspaper reported.
http://www.bloomberg.com/apps/news?pid=20601081&sid=apvEyeMAzx8g

Rudd Urges Free Trade, Carbon Caps for World Growth (Update2)
By Rebecca Keenan
Sept. 25 (Bloomberg) — Australian Prime Minister Kevin Rudd said the world must push for freer trade, lower carbon pollution and boost investment in Internet technologies to pull the global economy out of its worst slump since World War II.
http://www.bloomberg.com/apps/news?pid=20601130&sid=a2V0KDFW1HsQ

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

Exchange & ECN News

NYMEX Green Exchange’s new CEO thinks global
By Michael Szabo
LONDON (Reuters) – Less than two weeks after taking the helm of NYMEX’s struggling Green Exchange, Tom Lewis is wasting no time preparing to battle for supremacy in the $126 billion global emissions market. “We’ve got many arrows in our quiver. Our goal is to go at this from all fronts,” he told Reuters in an interview, adding that Green Exchange has the backing of major investment banks.
http://bit.ly/c2N9u

Deutsche Börse seeks shelter from activists
Deutsche Börse has held talks with potential anchor investors including the German state of Hesse, as it seeks to defend itself against the kind of activist shareholder that previously helped oust its executive team.
http://www.efinancialnews.com/homepage/content/1055257485

Deutsche Börse has announced an unscheduled adjustment to the free float of IDS Scheer AG in TecDAX
http://bit.ly/g4zGE

OneChicago To List 50 New Single Stock Future
OneChicago is pleased to announce the listing of fifty new security futures for trading September 25, 2009.
http://www.onechicago.com/wp-content/uploads/content2009/9_25_2009.pdf

NASDAQ Announces Mid-month Open Short Interest Positions in NASDAQ Stocks as of Settlement Date September 15, 2009
http://bit.ly/6ooM3

OSE has approved the withdrawal of Cash Trading Qualification, Futures etc. Trading Qualification and Clearing Qualification, and also, approved the grant of Cash Trading Qualification, Futures etc
http://www.ose.or.jp/cms/news/detail.php?id=15168&style=en

[CBOE] 3:00 p.m. Close on Last Day of Trading for Expiring QIXs
http://www.cboe.org/publish/InfoCir/IC09-304.pdf

{CBOE] Reissue of RG08-172 regarding Clarification on Regular Expiring Exercise Declaration (EED) Procedures for Noncash-Settled Equity Options
http://www.cboe.org/publish/RegCir/RG09-104.pdf

Warsaw Stock Exchange: NewConnect Strengthens Its International Profile
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=85581

Tokyo Grain Exchange: Daily Price Limits From September 28, 2009
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=85576

Tokyo Stock Exchange: Base Prices And Daily Price Limits For Newly Listing Stocks
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=85578

HKEx: Listing Rule Amendments – Fees And Charges
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=85577

MCX Weekly Market Report: September 18- September 24, 2009
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=85579

Banks, Brokers & Dark Pools

Banks made $5.2B trading derivatives in 2Q
By MARCY GORDON, AP Business Writer
WASHINGTON – U.S. commercial banks earned $5.2 billion trading derivatives in the second quarter, as the level of risk eased in the global market for the complex financial instruments, according to a government report released Friday.
http://news.yahoo.com/s/ap/20090925/ap_on_bi_go_ec_fi/us_banks_derivatives_trading_1

U.S. banks report drop in 2nd-quarter trading revenue
WASHINGTON (Reuters) – U.S. commercial banks reported that trading revenue dropped dramatically during the second quarter to $5.2 billion, compared with record revenue of $9.8 billion in the prior quarter.
http://news.yahoo.com/s/nm/20090925/bs_nm/us_financial_banks_derivatives_2

UBS Client Admits Failure to Report Offshore Account (Update1)
By David Voreacos and Carlyn Kolker
Sept. 25 (Bloomberg) — A New Jersey businessman pleaded guilty to failing to tell the U.S. government about a $6.1 million account with UBS AG and is cooperating with prosecutors investigating the offshore enablers of tax evasion.
http://www.bloomberg.com/apps/news?pid=20601103&sid=amcUVmMAOMkU

UBS Client Enters Guilty Plea in Tax Case
A wealthy UBS private banking client who owns a building material company in New Jersey pleaded guilty on Friday to tax evasion, the fourth American caught in a widening investigation into the giant Swiss bank over its offshore services.
http://dealbook.blogs.nytimes.com/2009/09/25/ubs-client-enters-guilty-plea-in-tax-case/

Goldman Sachs May Benefit From Regulation, Citi Analyst Says
By Christine Harper
Sept. 25 (Bloomberg) — Goldman Sachs Group Inc. executives said that new rules on trading over-the-counter derivatives may benefit the firm because of the company’s technological edge, according to Citigroup Inc. analyst Keith Horowitz.
http://www.bloomberg.com/apps/news?pid=20601208&sid=a0wzGHyHBD3k

Deutsche Bank’s Ackermann Says G20 Proposals Will Curb Profit
By Jann Bettinga
Sept. 24 (Bloomberg) — Deutsche Bank AG Chief Executive Officer Josef Ackermann said plans by world leaders to overhaul financial regulation will curb banks’ profitability.
http://www.bloomberg.com/apps/news?pid=20601208&sid=aUwpL15FmZtI

Ex-Deutsche Bank Manager Says Boss Knew of Spy Case (Update2)
By Karin Matussek
Sept. 24 (Bloomberg) — Deutsche Bank AG’s former head of investor relations, who was fired for spying on a dissident shareholder, said his immediate superior “knew from the beginning” about the operation.
http://www.bloomberg.com/apps/news?pid=20601087&sid=anpwFPP.NDG4

Morgan Stanley leads as M&A shows signs of life
By Quentin Webb and Michael Erman
LONDON/NEW YORK (Reuters) – Morgan Stanley (MS.N) is outrunning archrival Goldman Sachs (GS.N) as 2009′s busiest adviser on mergers as optimism grows that the crippling effects of the financial crisis on dealmaking may be easing.
http://news.yahoo.com/s/nm/20090925/bs_nm/us_deals_ma_2

Financial groups hit by surge in loan losses
By Sarah O’Connor in Washington and Francesco Guerrera in New York
The US financial sector’s losses on large loans exploded over the past year, exceeding the combined losses since 2001, with hedge funds and other members of the “shadow banking system” hit the hardest, official figures revealed on Thursday.Regulators’ annual review of “shared national credits” – loans larger than $20m shared by three or more federally regulated institutions – highlighted the toll taken by the crisis on financial groups outside the traditional banking sector.
http://bit.ly/DXmvc

Lloyds and RBS commit to further property lending
By Daniel Thomas, Property Correspondent
Lloyds Banking Group and Royal Bank of Scotland, the largest UK property lenders, are prepared to commit further capital to the sector despite the possibility of further losses in existing loan books, according to senior bankers. Together, the two banks account for close to half the £225bn of outstanding UK property loans. Both have already been forced to take losses on real estate as the fall in values has hit customers.
http://bit.ly/17ZwFd

Instinet Europe Wins Financial News’ “Best Agency Broker” Award
LONDON–(BUSINESS WIRE)–Instinet Incorporated, a global leader in electronic trading and agency-only brokerage services, today announced that its European brokerage unit, Instinet Europe Limited, has been named “Best Agency Broker” in the Financial News’ “Awards for Excellence in I.T. Trading & Technology, Europe 2009”.
http://finance.yahoo.com/news/Instinet-Europe-Wins-bw-955966767.html?x=0&.v=1

Morgan Stanley Hires New Head of Latin America Private Wealth Management
By Lee Conrad
Morgan Stanley Private Wealth Management named Mauricio Sanchez as Executive Director and head of Latin America operations.
http://www.financial-planning.com/news/morgan-stanley-hires-mauricio-sanchez-latin-america-2664062-1.html

Saxo Bank Opens Athens Office in Response to Increasingly Sophisticated Greek Trading Market
Saxo Bank, the Online Trading and Investment Specialist, Today Announces the Opening of its New Office in Athens
http://bit.ly/PEx5R

French banks sue for billions over Lehman collapse
PARIS (AFP) – France’s top banks are demanding billions of dollars (euros) from the administrator of failed Wall Street investment bank Lehman Brothers, official documents issued on Friday showed.
http://news.yahoo.com/s/afp/20090925/ts_afp/franceusbankingbankruptcycompanylehman_20090925150235

Former Lehman Executives Said to Launch Fund
Former Lehman Brothers trader Alex Kirk is teaming up wit bank’s former president, Herbert Bart McDade, to launch a new investment fund, called River Birch Capital, The New York Post reported.
Lehman Brothers a ‘deadly domino’
By JENISE FOUTS Sentinel Staff Writer
As a historic, trustworthy investment bank, Lehman Brothers survived the Civil War, Great Depression, two world wars and even Sept. 11, 2001. But it couldn’t survive what it had become in recent years, an “out-of-control monarchy” and an $800 billion “deadly domino.” (Photo: Former Lehman Bros vice president Lawrence McDonald speaks to students at the Bowen-Thompson student union at BGSU
http://www.sent-trib.com/stnew/index.php?option=com_content&view=article&id=4984:lehman-brothers-a-deadly-domino&catid=1:fp&Itemid=115

Life after Lehman Brothers
John Sheehan was a rising star at Lehman Brothers for 10 years, culminating in his appointment as an Executive Director.
John will be the keynote speaker at an investment seminar organised by MBMG, Asia’s foremost professional advisory practice, to talk about what is arguably the most famous banking collapse in history, and what’s changed one year later. Drawing on his long history with the company, John brings a unique insight on what really happened when the bank failed, and a global financial icon collapsed
http://www.thaipr.net/nc/readnews.aspx?newsid=15B60D7CEE40C6665E6F94EDF784BC3E

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/2009/dig092509.htm

US SEC, CFTC Seek Exchange Data On Co-Location Fees, Access
By Jacob Bunge, Of DOW JONES NEWSWIRES
CHICAGO -(Dow Jones)- U.S. regulators are asking exchanges to reveal the pricing and access rules around co-location services, which allow traders to place their servers in the same building as the platform.
http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=200909241618dowjonesdjonline000646&title=us-sec-cftc-seek-exchange-data-on-co-location-fees-access

Speech of Chairman Gary Gensler, OTC Derivatives Regulation, European Commission
http://www.cftc.gov/stellent/groups/public/@newsroom/documents/speechandtestimony/opagensler-12.pdf

Nadel Again Seeks Release From Jail While Awaiting Fraud Trial
By David Glovin
Sept. 25 (Bloomberg) — Arthur Nadel, the Florida hedge- fund adviser who has been jailed since January, again asked a judge to release him on reduced bail while he awaits trial.
http://www.bloomberg.com/apps/news?pid=20601127&sid=aHNHOK8BIOBo

Investor Alert: Manitoba Securities Commission and BC Securities Commission uncover ‘re-victimization’ scheme
Winnipeg – The Manitoba Securities Commission (MSC) New window and the British Columbia Securities Commission (BCSC) are warning investors who may have lost money in a York-Rio Resources Inc. investment that they could be targets of a ‘re-victimization’ scheme in which investors are being contacted by an organization out of Japan identifying itself as Penn Capital Management Ltd.
http://www.bcsc.bc.ca/release.aspx?id=8682

Canadian Securities Regulators prepare for upcoming changeover to International Financial Reporting Standards
Toronto – The Canadian Securities Administrators (CSA) today published for comment National Instrument 52-107 Acceptable Accounting Principles and Auditing Standards, its Companion Policy and related amendments that are aimed at ensuring a smooth transition from current Canadian Generally Accepted Accounting Principles (GAAP) to International Financial Reporting Standards (IFRS).
http://www.lautorite.qc.ca/pdf/com25sept2009-acvm-ang.pdf

CESR Re-Assesses Application Of Its Standard No. 1 On Financial Information In Europe
CESR publishes today an updated self-assessment and peer review (Ref. CESR/09-374) on the application and implementation of CESR’s Standard No. 1 on financial information by EU National Enforcers. This report updates the findings of an earlier peer review (Ref. CESR/06- 181) conducted in 2006, on the basis of the same criteria
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=85580

[SEBI] Order in the matter of Cals Refineries Limited and others
http://www.sebi.gov.in/Index.jsp?contentDisp=SubSection&sec_id=25&sub_sec_id=25

Investments – Indexes – Managed Futures – Managed Funds

Slumping Energy Demand Has Bottomed, Fund Manager Melis Says
By Lars Paulsson and Alexander Kwiatkowski
Sept. 25 (Bloomberg) — The decline in energy demand and drop in German electricity prices may have ended, according to the chief executive officer of hedge-fund manager Energy Capital Management BV.
http://www.bloomberg.com/apps/news?pid=20601014&sid=a.jxd8hCg318

The Future For UNG
By Matt Hougan
The United States Natural Gas Fund (NYSEArca:UNG – News) will begin issuing new shares on Monday, ending a three-month stretch in which the popular exchange-traded fund had capped the number of shares available to the public.
http://finance.yahoo.com/news/The-Future-For-indexuniverse-404807483.html?x=0&.v=2

Estonia bourse urges privatisations as Baltics gain
By David Mardiste
TALLINN, Sept 25 (Reuters) – Estonia’s sale of shares in its main telecoms company should be followed by more privatisations to further attract investors, the head of the nation’s stock exchange said on Friday after a recent bounce in Baltic markets.
http://www.iii.co.uk/news/?type=afxnews&articleid=7542921&subject=economic&action=article

Baltic Investors Must Discriminate, Helenius Says (Update2)
By Ott Ummelas
Sept. 25 (Bloomberg) — Equity investors in the Baltic region should sell Latvian stocks and buy Estonia based on the countries’ divergent economic and fiscal outlooks, said Joakim Helenius, executive chairman of investment bank Trigon Capital.
http://www.bloomberg.com/apps/news?pid=20601095&sid=aovocyKLxsPQ

Citigroup Exits Money-Losing Bet on Canadian Dollar Versus Yen
By Chris Fournier
Sept. 25 (Bloomberg) — Citigroup Inc. exited a bet that the Canadian dollar would strengthen against the Japanese yen after the trade lost 3.9 percent.
http://www.bloomberg.com/apps/news?pid=20601083&sid=a3yEnw0ohI4E

Barclays Global Investors Lists Three iShares Russell 200 Index ETF’s on NYSE Arca
NYSE Euronext (NYX) announced that its wholly-owned subsidiary, NYSE Arca, today began trading theiShares Russell Top 200 Value Index Fund (IWX), iShares Russell Top 200 Index Fund (IWL) and iShares Russell Top 200 Growth Index Fund (IWY). The ETFs are sponsored by Barclays Global Investors
http://www.nyse.com/press/1253874620818.html

RTS Standard Prices To Be Used In Calculation Of RTS Indices
In accordance with the resolution passed by the Board of Directors of RTS Stock Exchange on September 24, 2009 stock prices discovered on RTS Standard are to be included into the basis for calculation of the RTS Index, RTS-2 Index and Sectoral RTS Indices. The resolution will come into effect after the Federal Financial Markets Service has approved new methodologies for calculation of RTS Indices
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=85574

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

Citi appointed settlement bank for Stock Exchange of Thailand
Citi Thailand has been appointed by the Stock Exchange of Thailand (SET) to serve as a settlement bank for the 39 SET clearing house members. Citi is the first foreign bank to be appointed by SET to faciliate the settlement role. Other settlement banks are Siam Commercial Bank, Bangkok Bank and Krung Thai bank.
http://www.thaipr.net/nc/readnews.aspx?newsid=D953BC2B23B20D6D28B662BDD0F4CDDB

Manulife Venture Wins Approval in China’s Tianjin (Update1)
By Sean B. Pasternak
Sept. 25 (Bloomberg) — Manulife Financial Corp., North America’s largest insurer by market value, said a venture with the Sinochem Group won approval to operate in China’s Tianjin province, extending its reach in the most populous country.
http://www.bloomberg.com/apps/news?pid=20601203&sid=aQ3JGs61BACw

HSBC CEO to Move to Asia to Focus on Emerging Markets (Update5)
By Jon Menon and Andrew MacAskill
Sept. 25 (Bloomberg) — HSBC Holdings Plc is moving Chief Executive Officer Michael Geoghegan to Hong Kong from London as Europe’s biggest bank increases its focus on emerging markets.
http://www.bloomberg.com/apps/news?pid=20601085&sid=ab6Kbx55OP20

HSBC to Move Chief to Hong Kong
In a move that underscores the growing importance of Asia and emerging markets for global financial institutions, the British bank HSBC said Friday that its chief executive would relocate to Hong Kong next year.
http://dealbook.blogs.nytimes.com/2009/09/25/hsbc-to-move-chief-to-hong-kong/

Frontier Markets

Malta to join FTSE Global Equity Index Series
FTSE Index Company confirmed the inclusion of Malta’s equity market operated by the Malta Stock Exchange within the Global Equity Index Series since it meets all of the eligibility criteria for “Frontier” status.
http://www.di-ve.com/Default.aspx?ID=72&Action=1&NewsID=64284&newscategory=4

Positive outlook for Qatari banks: Merrill Lynch
MENAFN: (MENAFN – The Peninsula) Qatari banks show a positive outlook for share price performance with an attractive combination of discounted valuations, solid growth and good visibility of risks.
http://www.menafn.com/qn_news_story_s.asp?StoryId=1093272868

Malawi Stock Exchange Weekly Report
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=85585

Miscellaneous News

Man Research Laboratory and Oxford-Man Institute of Quantitative Finance expand into new premises
Successful growth of a world leading centre of quantitative research.
Man Research Laboratory (MRL) and the Oxford-Man Institute of Quantitative Finance (OMI) opened new, larger premises in Jericho, Oxford, on 24 September, demonstrating that the two groups’ unique collaboration is flourishing as it moves into its third year.
http://www.mangroupplc.com/media/news-from-man/2009/press-release-25sep2009.jsf

Observations – Statistics – Commentary

U.S. Treasury Official Praises Futures Markets as “Model” for Market Reforms
Washington, D.C.–Sept. 23, 2009–A senior U.S. Treasury official said today that government officials are looking at the exchange-traded futures markets as a “model” for improving other areas of the financial system including over-the-counter derivatives and Treasury repurchase agreements.

With well-defined rules, explicit roles for policy-makers and regulators, a private sector with both the motivation and ability to act as a self-regulator of sorts, and the ability to adapt practices to changing market dynamics, the futures exchange can serve as a role model for market efficiency and transparency, Karthik Ramanathan, acting assistant secretary for financial markets, said on Sept. 23 at a conference organized by the Futures Industry Association.
http://bit.ly/2UxlVQ

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Merrill-BofA: Judge Jed Rakoff Exposes the Failures of the SEC
Georges Ugeux
Before the Bank of America/Merrill Lynch merger, shareholders were told that no large bonuses would be paid to Merrill executives prior to the closing of their merger without Bank of America’s consent. However there was a side agreement allowing Merrill Lynch $ 5.8 billion for bonuses. Because of this the SEC fined Bank of America/Merrill Lynch $33 million for its “misleading statement to shareholders.” This was not a “misleading statement.” It was a bold-faced lie.
http://bit.ly/17izK7

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COMPLIANCE WATCH: Hedge Funds Jittery About Registration
By Suzanne Barlyn
NEW YORK (Dow Jones)–The near-certainty that hedge funds will be obliged to register with regulators is creating anxiety for some of the investment advisers who directly manage client money. For some, the question is: Do I manage enough money to justify hiring a compliance officer and making major changes to my business model?
http://bit.ly/eu9nt

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Prosecuting Paupers Over Princes
By David Weidner
Justice is blind. On Wall Street it often appears lame and easily manipulated, too — a tool for serving political agendas without nary a wrist slap for the cartels controlling the game. A cynical assessment, to be sure, but what other conclusion can one come to watching New York State Attorney General Andrew Cuomo investigate the bejeezus out of Bank of America Corp. and American International Group Inc. without nary a parking ticket issued, while the federal government pursues its case against Ralph Cioffi and Matthew Tannin.
http://bit.ly/iZ0Or

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CEOs and the Pay-for-Performance Puzzle
By Ben Steverman
A highly skilled CEO is hard to find. Highly paid CEOs, however, are everywhere you look.
For decades, corporate boards, watchdogs, regulators, and shareholders have argued over the best way to reward corporate leaders for a job well done, while not overpaying mediocre chief executives.
http://bit.ly/3BKQCw

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Teens and Money: Fewer Financial Responsibilities Today Create More Savers among Teens
OMAHA, Neb.–(BUSINESS WIRE)–Today’s teenagers are saving for college more than ever before, according to a new survey released by TD AMERITRADE Holding Corporation. According to the survey, the vast majority (62%) of young adults surveyed (ages 14-19) report saving their money to pay for all or part of college or higher education programs, compared to just 40 percent of adults surveyed (ages 20-59) who saved for higher education during their adolescent years.
http://bit.ly/wULFm

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ICE FX Webinar
Trading ICE U.S. Dollar Index Futures (USDX): Fundamental and Technical Approaches
Wednesday, September 30, 2009, 4:15PM EST

Please be our guest for this special roundtable webinar featuring two premier FX analysts who will share valuable insight on price trends in the U.S. dollar and new ways to trade those trends.

Special guests include Andrew Busch, Global FX Market Strategist for BMO Capital Markets’ Investment Banking Division and a regular guest on CNBC, and Andrew Baptiste, Managing Director and Chief Technical Analyst for the Fixed Income Division at Morgan Stanley.

Ray McKenzie, Vice President, Market Development, ICE Futures U.S.® will be your moderator.

Register at
http://bit.ly/STgd7

++++

Baltimore firm sues Facebook for patent infringement
WhoGlue says system is ‘core to our business;’ Facebook says it will fight suit
A tiny Baltimore tech company is suing Facebook, alleging that Facebook infringed on a key patent it holds. The case could cut to the heart of the online social networking giant’s business.
http://bit.ly/19OJHc

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A Face-to-Face Meet for Twitterers
By Christopher Palmeri
Mr. Positive Thinking was skeptical at first. Motivational speaker Tony Robbins says he wasn’t sure he had time to use Twitter when he first heard about the popular social networking site. “Why would I want to read something someone else is doing?” Robbins asked. Like many people, he says he feels somewhat overwhelmed with the volume of information already bombarding him. “Remember when people said technology would give you free time?”
http://bit.ly/13RhGW

Lead Stories

SEC Clears NYSE Euronext Penny Pricing Plan
By JACOB BUNGE
CHICAGO — U.S. regulators have approved an NYSE Euronext proposal to expand the number of options priced in pennies on the company’s two options exchanges, part of a pilot program now set to run through the end of next year.
http://online.wsj.com/article/SB125381146430538199.html?mod=googlenews_wsj

SEC Approves Expansion of Options Penny Pilot
Peter Chapman
The Securities and Exchange Commission today approved NYSE Arca’s proposal to expand the so-called “penny pilot” whereby options trade in penny increments. The decision means that, within a year, industrywide, 300 more options will trade in pennies. That means 363 options, representing over 85 percent of volume, will be traded in penny increments. Currently 63 options, representing 50 percent of volume, are traded in pennies.
http://bit.ly/2CBbwa

US House chair opposes more authority for SEC
WASHINGTON, Sept 23 (Reuters) – The House Agriculture Committee chairman said on Wednesday he opposed a proposal to transfer jurisdication to the Securities and Exchange Commission to oversee broad-based securities index futures.
http://www.reuters.com/article/marketsNews/idUSN2337405220090923

Volcker Urges Giving Fed More Authority Over Financial System
By Mike Dorning
Sept. 24 (Bloomberg) — Former Federal Reserve Chairman Paul Volcker called on U.S. lawmakers to give the central bank more authority to oversee the financial system, according to remarks prepared for delivery today.
http://www.bloomberg.com/apps/news?pid=20601068&sid=ancLIOsCdjzA

Volcker: Obama plans maintain ‘too big to fail’
By DANIEL WAGNER, AP Business Writer
WASHINGTON – A top White House economic adviser says the Obama administration’s proposed overhaul of financial rules preserves the policy of “too big to fail,” and could lead to future bailouts.
http://news.yahoo.com/s/ap/20090924/ap_on_bi_ge/us_financial_overhaul_volcker_5

Possible flash ban faces options market resistance
By Jonathan Spicer – Analysis
NEW YORK (Reuters) – Banning so-called flash orders will prove difficult in U.S. options markets, where the biggest exchanges are teaming up to defend the practice that has been roundly criticized in equities markets.
http://www.reuters.com/article/ousivMolt/idUSTRE58M74H20090923

Geithner urges watchdog, Frank cites death panels
By Kevin Drawbaugh
WASHINGTON (Reuters) – An Obama administration proposal to create a government watchdog for financial consumers inched forward in Congress on Wednesday, with House Financial Services Chairman Barney Frank calling for “death panels” to close down troubled financial firms.
http://news.yahoo.com/s/nm/20090923/pl_nm/us_financial_regulation_congress_6

U.S. House Panel Postpones Ratings Company Hearings (Update3)
2009-09-24 16:13:36.413 GMT
As Banks Retreat, Lawmakers Press Attack
By MARSHALL ECKBLAD and JANE J. KIM
The U.S. banking industry’s signs of retreat on certain account fees mightn’t satisfy Washington lawmakers, including some who said Wednesday they are pushing ahead with broad restrictions on fee policies at banks.
http://bit.ly/CoHUe

U.S. House Panel Postpones Ratings Company Hearings
By Matthew Leising
Sept. 24 (Bloomberg) — The U.S. House Committee on Oversight and Government Reform postponed a hearing on ratings company performance after it obtained new information from Moody’s Investors Service. The panel obtained an internal Moody’s staff memo written by Eric Kolchinsky, a former analyst at the firm, expressing concern with how the company rated securities, and it didn’t have enough time to incorporate the information into the hearing, said committee chairman Edolphus Towns. A representative from New York-based Moody’s was invited to the hearing but didn’t come, Towns said.

U.S. House panel delays Moody’s hearing
By Rachelle Younglai
WASHINGTON (Reuters) – A House panel abruptly postponed a hearing into accusations that Moody’s Corp knowingly issued incorrect ratings after Republicans demanded more time to review a whistleblower’s complaint.
http://www.forbes.com/feeds/reuters/2009/09/24/2009-09-24T172337Z_01_N24445062_RTRIDST_0_FINANCIAL-REGULATION-RATINGAGENCIES-UPDATE-2.html

Banks Should Prioritize ‘Social Benefit,’ Turner Says (Update2)
By Caroline Binham
Sept. 23 (Bloomberg) — Large U.K. banks should place “social usefulness” above profitability, Financial Services Authority Chairman Adair Turner said in a speech interrupted three times by a heckler complaining about FSA bonuses.
http://www.bloomberg.com/apps/news?pid=20601085&sid=a3orv0jb7BEI

Canadian Government Seen Naming Advisory Committee On Common Regulator
By Monica Gutschi, Of DOW JONES NEWSWIRES
Representatives from several provinces are expected to be named by Canadian Finance Minister Jim Flaherty to an advisory committee on creating a common securities regulator for the country.
http://bit.ly/EDc6E

Steinbrück: G20 should tax financial trades
Peer Steinbrück
What went wrong with global financial markets? In a nutshell: the implosion of the brave new world of modern finance, and the economic crisis that followed, was rooted in the idea that free capital markets are all that is needed for economic prosperity. The prologue to the crisis was a combination of cheap money, deregulation, and a race for returns by executives undeterred by the risks. When the housing bubble burst and financial markets collapsed in its wake, the worldwide slump was the worst since the Great Depression.
http://bit.ly/2bNtYf

Merkel urges G20 focus on regulation
By Bertrand Benoit
Angela Merkel warned fellow world leaders on Thursday not to make the fight against global imbalances the central issue of a meeting of the world’s 20 largest economies, which kicks off in Pittsburgh on Thursday night. Speaking in Berlin before boarding her flight, Ms Merkel came close to accusing the US and Britain of backtracking on the issues of financial market regulation and global limits on bonuses for bankers by shining the spotlight on the export-oriented economic policies of Germany and China.
http://bit.ly/9brzb

Fed Scales Back 2 Emergency Lending Programs
WASHINGTON (AP) — The Federal Reserve said Thursday that it was further scaling back two emergency lending programs as the economy improves. The Fed will reduce the amount of money available to banks in short-term loans under a program called the Term Auction Facility.
http://bit.ly/Su1Oz

Hooked on TARP: Today’s Outrage
By Glenn Hall
NEW YORK (TheStreet) — There’s no question that the Troubled Asset Relief Program is going to be extended into next year. Some members of Congress may not like it, but the fact is the financial sector and by extension the economy are addicted to TARP. While Congress will hold endless hearings about the banking bailout (that’s what Congresses do), the Treasury will win the day.
http://bit.ly/4vQJlF

Environmental Trading News

China, BlueNext form standard to build CO2 market
*Covers voluntary emissions cuts in agriculture, forestry
*More details to be released at Copenhagen
By Timothy Gardner and Edward McAllister
WASHINGTON/NEW YORK, Sept 23 (Reuters) – A French emissions exchange and a Chinese group are forming a carbon market standard for China, marking a step toward a voluntary system to limit greenhouse gas emissions from agriculture and forestry in the world’s top emitter.
http://www.reuters.com/article/marketsNews/idUSN2338993020090923

Shipping industry flags support for carbon trading scheme
James Murray, BusinessGreen
Not to be outdone by this week’s commitment from the aviation industry to halve emissions by 2050, several leading shipping industry bodies have confirmed they too would support efforts to cut emissions through a global cap-and-trade scheme, although they stopped short of setting specific targets.
http://www.businessgreen.com/business-green/news/2250048/shipping-industry-flags-support

Court decision threatens to unravel Europe’s carbon market
Estonia and Poland have scored deeply significant wins in their battle with the EU over carbon quotas. In a decision that threatens to scupper Europe’s cap and trade scheme, the Court of First Instance annulled the European Commission’s decision to lower the carbon emission quotas of both countries.
http://www.euractiv.com/en/climate-change/court-decision-threatens-unravel-europe-carbon-market/article-185715?Ref=RSS#

Hu’s carbon commitment marks new era for China
By Emma Graham-Harrison
BEIJING (Reuters) – Chinese President Hu Jintao’s pledge this week to cut “carbon intensity” marked Beijing’s first acceptance that it must control emissions, a pivotal shift that could alter the dynamic of global climate change talks.
http://thestar.com.my/news/story.asp?file=/2009/9/24/worldupdates/2009-09-24T122430Z_01_NOOTR_RTRMDNC_0_-426727-1&sec=Worldupdates

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

Exchange & ECN News

LSE Trading Declines 43% on Equity Slump, Loss of Market Share
By Nandini Sukumar
Sept. 24 (Bloomberg) — London Stock Exchange Group Plc said trading dropped 43 percent as stocks slumped amid the worst financial crisis since the Great Depression and Europe’s oldest independent bourse lost market share.
http://www.bloomberg.com/apps/news?pid=20601084&sid=al1X4pTVR3tE

LSE’s stock has fallen but it is building a platform for success
By Josephine Moulds
In terms of trading, things look pretty grim. The value traded across the LSE’s various platforms in the five months to August was down by 43pc at £4.6bn, compared with the same period last year.
http://www.telegraph.co.uk/finance/markets/questor/6227852/LSEs-stock-has-fallen-but-it-is-building-a-platform-for-success.html

LSE cuts workforce as faces up to competition
By Josephine Moulds
Xavier Rolet, the new chief executive, said 113 jobs would go, split evenly between the UK and Italy, where the LSE owns Borsa Italiana. It is hoped the job cuts plus the acquisition of a trading platform will trim annual costs by £21m.
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/6227926/LSE-cuts-workforce-as-faces-up-to-competition.html

LSE sees possible M&A, cuts jobs
Daisy Ku
London Stock Exchange Group’s (LSE) new chief executive said he would consider acquisitions as he sought to make his mark on Thursday with plans to grow the business and cut costs by shedding jobs.
http://uk.news.yahoo.com/22/20090924/tbs-uk-lse-03c9bed.html

NYSE Euronext announces the appointment of Xavier Bommart and Marc Lefèvre
Paris, 24 September 2009 – NYSE Euronext (NYX) today announced the appointment of Xavier Bommart as Head of Business Development Listing Europe and of Marc Lefèvre as Head of European issuer coverage. Mr Lefèvre has also been appointed Head of Listing France and will remain Cash country manager in France.
http://www.euronext.com/news/press_release/press_release-1731-EN.html?docid=773802

CCP12 Elected New Executive Committee
Frankfurt/Main, 24 September 2009 – The members of CCP12 – The Global Association of Central Counterparties – elected a new Executive Committee at the special general meeting in Hong Kong.
http://bit.ly/2w74zH

Jasdaq Starts Using Osaka Securities Exchange’s Trading System
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=85533

Osaka Securities Exchange Wholly Takes Over Jasdaq
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=85554

[OSE] The adjustment on SPAN parameters
http://www.ose.or.jp/cms/news/detail.php?id=15156&style=en

[OSE] Approval of Application for Grant of Cash Trading Qualification, Futures etc. Trading Qualification and Clearing Qualification: Interactive Brokers Securities Japan,Inc.
http://www.ose.or.jp/cms/news/detail.php?id=15151&style=en

RTS Stock Market Weekly Trading Results: September 14 – September 18, 2009
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=85537

RTS Indices Weekly Review
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=85546

Banks, Brokers & Dark Pools

UBS Canada clients volunteer tax information
TORONTO (Reuters) – More than 50 Canadian clients of Swiss bank UBS have come forward to disclose unpaid taxes, and investigations so far have found C$7 million ($6.4 million) in unreported income, Canada’s tax authority said on Thursday.
http://ca.news.yahoo.com/s/reuters/090924/business/cbusiness_us_ubs_canada_tax_1

Lighthouse Hires Eight From JPMorgan to Run Portfolio Trading
By Jeff Kearns
Sept. 24 (Bloomberg) — Lighthouse Financial Group LLC hired eight JPMorgan Chase & Co. employees to trade large baskets of stocks and bonds worldwide for mutual funds, pensions and hedge funds.
http://www.bloomberg.com/apps/news?pid=20601103&sid=aQ0gEEDkSTXU

Nomura May Ally With Partner to Accelerate Commodity Expansion
By Anna Stablum
Sept. 24 (Bloomberg) — Nomura Holdings Inc., the brokerage that acquired Lehman Brothers Holdings Inc.’s Asian and European units, may ally with a partner to accelerate its expansion into commodity markets including crude oil.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aF.xR6.9oXKU

AIG Ex-CEO Says There’s No Going Back
By Lauren Tara LaCapra
GARDEN CITY, N.Y. (TheStreet) — American International Group (AIG Quote) will end up just a shell of its former self after working out the massive government support that staved off its collapse a year ago, its former chairman and CEO said Thursday. Robert Willumstad, who took over for Maurice “Hank” Greenberg as chairman of the company in 2006 before serving a short stint as CEO after Martin Sullivan was ousted in the wake of the government bailout, gave a bleak outlook for the troubled company in a speech at Adelphi University on Long Island, his alma mater
http://bit.ly/18iEZ

Fidelity Investments(R) Expands Clearing Operations With Launch of New Canadian-Based Business Unit
TORONTO, Sept. 24 /CNW/ – U.S.-based Fidelity Investments(R) today announced the launch of Fidelity Clearing Canada ULC, a new business dedicated to providing clearing, custody and back-office support services to Canadian-based brokerage firms and the Canadian brokerage arms of U.S.-based firms. The business is part of Fidelity’s U.S.-based clearing organization, National Financial, which services more than 300 broker/dealers in the U.S. with assets in excess of $520 billion.
http://finance.yahoo.com/news/Fidelity-InvestmentsR-Expands-cnw-1495014500.html?x=0&.v=1

HBOS and RBS came within hours of collapse, says Mervyn King
By Helia Ebrahimi
Mervyn King, the Governor of the Bank of England said two of Britain’s biggest banks came staggeringly close to total collapse when they both faced the prospect of running out of money within hours at the height of the financial crisis.
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/6227403/HBOS-and-RBS-came-within-hours-of-collapse-says-Mervyn-King.html
Lehman Owes $4.3 Billion, London’s Canary Wharf Says (Update2)
By Peter Woodifield and Linda Sandler
Lehman Brothers Holdings Inc., the securities firm that filed the biggest bankruptcy in U.S. history, owes its London landlord $4.3 billion in rent and charges, according to a claim filed by Canary Wharf Group Plc
http://www.bloomberg.com/apps/news?pid=20601208&sid=aluYmQ2G179c

WSJ: European Lehman Administrators To Claim $150 Billion Vs US Parent
By Cassell Bryan-Low, Of THE WALL STREET JOURNAL
LONDON -(Dow Jones)- Administrators representing Lehman Brothers Holdings Inc.’s main European unit have made the first of several claims they plan to make against the U.S. parent company that are expected to total about $150 billion.
http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=200909241126dowjonesdjonline000483&title=wsj-european-lehman-administrators-to-claim-150-billion-vs-us-parent

Youssef Dib named Head of Private Banking of Crédit Agricole Suisse
Youssef Dib has been named Head of Private Banking of Crédit Agricole Suisse. His experience and expertise will prove invaluable in consolidating and developing Crédit Agricole Suisse’s position in private banking, which has been its main business for more than 130 years.
http://www.calyon.com/sitegenic/medias/DOC/94509/2009-09-23-nomination-youssef-dib-ca-suisse-eng.pdf

TradeStation Launches Prime Brokerage Services
By Kerry Massaro
TradeStation Securities, Inc., a leading electronic brokerage firm for active, professional and certain buy-side institutional traders, today announced the launch of its new TradeStation Prime Services division.
http://www.financetech.com/feed/showArticle.jhtml?articleID=220200058&cid=RSSfeed_FTN_All

Ramirez Expands Firm with Financial Strategies Experts
NEW YORK–(BUSINESS WIRE)–Ramirez & Company today announced that Niso Abuaf and his team have joined the firm after a long career at Credit Suisse where Abuaf ran their Financial Strategy Group. Abuaf and his team will lead a new Financial Strategy Group providing balance sheet optimization strategies for Ramirez’s corporate and government clients. Prior to working with Credit Suisse, Abuaf led the International Financial Strategy Group at Salomon Smith Barney.
http://finance.yahoo.com/news/Ramirez-Expands-Firm-with-bw-1839903810.html?x=0&.v=1

Lighthouse Financial Enhances Institutional Sales & Trading Operations
NEW YORK, Sept. 24 /PRNewswire/ — Lighthouse Financial, a full-service broker dealer, today announced that it is expanding its Institutional Sales & Trading Operations by launching a Global Portfolio Trading Platform.
http://finance.yahoo.com/news/Lighthouse-Financial-Enhances-prnews-2194517745.html?x=0&.v=1

ETFS Marketing LLC, the US Marketing Agent for ETF Securities has appointed Garrett Smith to the growing US sales team. Garrett M. Smith is Senior Vice President ETFS Marketing LLC. His primary responsibilities will be focused on institutional and retail sales as well as national accounts. Prior to ETFS Marketing, Garrett was Senior Vice President at Claymore Securities assisting in the development of ETF distribution and marketing strategies.
http://www.etfsecurities.com/

UKFI sacks headhunter over RBS appt
LONDON (Reuters) – UK Financial Investments, the body managing the government’s stakes in bailed-out banks, has fired headhunters charged with finding its new boss after they recruited a disgraced top banker from Royal Bank of Scotland.
http://www.tiscali.co.uk/news/newswire.php/news/reuters/2009/09/23/business/ukfi-sacks-headhunter-over-rbs-appt.html&template=/business/feeds/story-template-reuters.html

European Central Bank Publishes The Euro Money Market Survey 2009
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=85544

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/2009/dig092409.htm

International Regulators Establish Forum To Tackle OTC Derivatives
International regulators established an over-the-counter derivatives regulators forum Thursday, saying the effort would encourage more open communication within the industry while promoting consistent standards.
http://bit.ly/a7Zfk

U.K. Says It Will Consider Derivatives Reporting Requirements
By Caroline Binham
Sept. 24 (Bloomberg) — The U.K. will consider introducing reporting requirements for derivatives trades if European Union efforts to improve transparency and cut risk don’t work.
http://www.bloomberg.com/apps/news?pid=20601085&sid=afuWXGNd9oXI

Brokers Accept Circuit Breakers But Wrangle Over Price Tests
By, John Hintze
Seeing the writing on the wall, the major financial organizations submitting comment letters on the Securities and Exchange Commission’s proposed short-sale restrictions reluctantly favored applying so-called circuit breakers to stocks plummeting in value, before imposing any price-related restrictions
http://bit.ly/f6mXH

Federal Court Issues Preliminary Injunction Against Florida Resident Beau Diamond and His Company, Diamond Ventures LLC, in CFTC Multi-Million Dollar Forex Fraud Action
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that it obtained a preliminary injunction against defendants Beau Diamond (Diamond) and his company, Diamond Ventures LLC (DVL), both of Sarasota, Fla. The order, entered on September 22, 2009, by U.S. District Court Judge Elizabeth A. Kovachevich in Tampa, continues the court’s September 3, 2009, asset freeze against Diamond and DV and prohibits them from further violating the Commodity Exchange Act, as charged (see CFTC Press Release 5711-09, September 4, 2009, and CFTC v. Beau Diamond, et al., No. 09 CV 1811 (M.D. Fl. 2009)).
http://www.cftc.gov/newsroom/enforcementpressreleases/2009/pr5721-09.html

CFTC looking at changes to CBOT Dec 2009 wheat
By Christopher Doering
WASHINGTON, Sept 23 (Reuters) – A Commodity Futures Trading Commission subcommittee on Wednesday proposed implementing variable storage rates on the Chicago Board of Trade December wheat 2009 contract despite concerns from the CME Group, parent of CBOT.
http://www.reuters.com/article/marketsNews/idUSN2342043520090923

FDIC Watched as ‘Hot Money’ Boomed at New Frontier (Update1)
By James Sterngold
Sept. 23 (Bloomberg) — New Frontier Bank, the largest lender in northern Colorado, had a lot to be proud of in early 2007. Assets had grown by 66 percent the previous year and profits by 53 percent. American Banker rated the bank the ninth- most efficient in the country.
http://www.bloomberg.com/apps/news?pid=20601208&sid=aSbs7G7u9boY

Ex-Hedge Fund Officer Gets 2 1/3 to 7 Years for Theft (Update1)
By Karen Freifeld
Sept. 23 (Bloomberg) — A former chief operating officer of 3V Capital Management LLC was sentenced to 2 1/3 to 7 years in prison after misappropriating more than $8 million from a Capital fund and stealing almost $1 million more.
http://www.bloomberg.com/apps/news?pid=20601087&sid=a0_WvxpRK7eQ

SEC charges Perot worker with insider trading
WASHINGTON, D.C. – The Securities and Exchange Commission said Wednesday it has charged Reza Saleh, an employee of a Perot Systems Corp. affiliate, with insider trading related to Dell Inc.’s offer to buy Perot Systems earlier this week.
http://news.yahoo.com/s/ap/20090924/ap_on_bi_ge/us_sec_perot_2

SEC: Insider trading charges in Dell deal
By David Goldman
NEW YORK (CNNMoney.com) — The Securities and Exchange Commission leveled insider trading charges against a Perot Systems investment firm employee for taking home $8.6 million in allegedly illicit profits just days after Dell’s $3.9 billion acquisition of the services company. Reza Saleh, who works for Perot Systems (PER) investment firm Parkcentral Capital Management, bought a number of large call options contracts on Perot Systems beginning two weeks prior to the deal. Call options give the buyer the right to purchase a stock at a specific price and a specific future date.
http://bit.ly/vxNvA

SEC Charges Perot Company Employee in $8.6 Million Insider Trading Scheme
Washington, D.C., Sept. 23, 2009 — The Securities and Exchange Commission today charged Richardson, Texas resident Reza Saleh with insider trading around the public announcement of Dell Inc.’s tender offer for Perot Systems earlier this week.
http://www.sec.gov/news/press/2009/2009-203.htm

Major Banks, Govts, Funds File Lehman Brothers Claims
By Marietta Cauchi and Margot Patrick, Of DOW JONES NEWSWIRES
LONDON -(Dow Jones)- Major financial institutions including Barclays Bank PLC (BCS) and Morgan Stanley (MS), Abu Dhabi’s sovereign wealth fund and hedge fund GLG Partners (GLG) have submitted claims against collapsed investment bank Lehman Brothers, according to the claims administrator’s Web site.
http://bit.ly/v87Oe

Ex-McDermott, Ex-Dorsey Lawyers Face U.K. Insider Trading Trial
Brian Baxter
Two lawyers formerly with McDermott Will & Emery and Dorsey & Whitney in the U.K. will stand trial on insider trading charges, sibling publication Legal Week reports.
http://www.law.com/jsp/article.jsp?id=1202434032216&rss=newswire

The FOA welcomes FSA’s approach to establishing sounder and more effectively-regulated OTC markets.
http://bit.ly/13RkzY

ASIC provides hedging relief to market makers
ASIC has issued Class Order [CO 09/774] that allows short selling to hedge risk from market making activities
http://www.asic.gov.au/ASIC/asic.nsf/byHeadline/AD09-182%20ASIC%20provides%20hedging%20relief%20to%20market%20makers?opendocument

The AMF publishes the position it will advocate as part of CESR’s work on classification criteria for money market funds
http://www.amf-france.org/documents/general/9097_1.pdf

European Commission Cuts Red Tape And Improves Investor Protection On Securities Prospectuses
In line with the “Better Regulation” principles, the European Commission has today put forward a proposal for the review of the Prospectus Directive. The proposal is part of simplification exercise within the Action Program of the European Commission for the Reduction of Administrative Burdens in the European Union
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=85543

Investments – Indexes – Managed Futures – Managed Funds

Hedge Fund Fees Remain Intact, Report Finds
Investors who expected hedge funds to prune fees after a particularly disastrous showing in 2008 may be disappointed by a recent study. The Wall Street Journal reported that a study compiled by French fund-of-hedge-funds firm Olympia Capital Management, found that for the most part fees remained steady at the 2,659 funds it analyzed. It also found that only a handful of the firms had shortened the time between one redemption date to the next, or reduced the initial lockup period they place on investors’ capital.
http://dealbook.blogs.nytimes.com/2009/09/24/hedge-fund-fees-remain-intact-report-finds/

Profile: Kevin Hayes, Man Group FD
Written by Melanie Stern
In replacing the man who replaced the man who replaced hedge fund titan Stanley Fink, Kevin Hayes is the clear CEO-in-waiting at Man Group. (no pun intended). “The CEO role is certainly something I’m interested in,” says Hayes . “You always want to have an FD who has those aspirations. Succession planning in organisations is more important nowadays and we’ve seen examples in many large FTSE companies where that planning is not completely apparent.”
http://www.accountancyage.com/accountancyage/features/2250038/profile-kevin-hayes-man-group

Pictet Plans Physical Gold Fund in October on Inflation Concern
By Chanyaporn Chanjaroen
Sept. 23 (Bloomberg) — Pictet & Cie., Switzerland’s biggest closely held private bank, will start a fund backed by physical gold on Oct. 1, expecting demand from investors looking to protect their wealth against inflation.
http://www.bloomberg.com/apps/news?pid=20601014&sid=a0VlpLR6aAOc

Hedge funds seek the Swiss life
Funds seeking lower tax and lighter regulation – and a headquarters far from public anger about bonuses – are fleeing to Switzerland, writes Elena Moya.
http://www.businessday.com.au/business/hedge-funds-seek-the-swiss-life-20090923-g2nu.html

United States Commodity Funds Lists United States Short Oil Fund, LP on NYSE Arca
NEW YORK , September 24, 2009 –- NYSE Euronext (NYX) announced that its wholly-owned subsidiary, NYSE Arca, today began trading the United States Short Oil Fund, LP, sponsored by United States Commodity Funds LLC, under the ticker symbol “DNO”. This is the sixth United States Commodity Funds LLC exchange traded vehicle to list on NYSE Arca.
http://www.nyse.com/press/1253787311105.html

CDO Trading Returns as Wall Street Plans $4.3 Billion Auction
By Pierre Paulden and Shannon D. Harrington
Sept. 24 (Bloomberg) — Babson Capital Management LLC and GoldenTree Asset Management LP are among investors bargain- hunting in the $650 billion market for collateralized debt obligations linked to corporate debt as credit markets open.
http://www.bloomberg.com/apps/news?pid=20601009&sid=a5KbYLsaKQhU

Four new EasyETFs investing in BRIC countries!
To exploit the growth of the four fastest-growing emerging countries…
Following the launch of these four ETFs investing in BRIC countries, the EasyETF range now includes 14 emerging market ETFs. Despite the recession, this region has, on the whole, continued to outperform most industrialised countries. Today, these 4 ETFs are listed on Euronext Paris.
http://www.euronext.com/news/press_release/press_release-1731-EN.html?docid=773803

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

Standard Chartered Bank expands Renminbi services to ASEAN Markets
Less than two months since China issued the rules for participation in the Renminbi (RMB) cross border trade settlement scheme, Standard Chartered Bank has led the way by becoming the first international bank in Hong Kong to settle two-way Renminbi trade settlement with China, the first international bank offer RMB Nostro services to ASEAN banks and the first international bank in China to lend Renminbi overseas, under the scheme.
http://www.thaipr.net/nc/readnews.aspx?newsid=1B1E1020B21F2E690A1454E5E6081900

ICAP Says Asia Pacific May Contribute 25% of Revenue (Update2)
By Jonathan Burgos
Sept. 24 (Bloomberg) — ICAP Plc, the world’s largest broker of transactions between banks, expects the Asia Pacific to account for a quarter of the group’s revenue within five years, up from the current 14 percent.
http://www.bloomberg.com/apps/news?pid=20601080&sid=a8FhGc.kGrwo

China start-up IPOs set high prices, stir worries
By Samuel Shen and Edmund Klamann Samuel Shen And Edmund Klamann – Thu Sep 24, 1:54 am ET
SHANGHAI (Reuters) – The first 10 firms due to list on China’s Nasdaq-style second board, ChiNext, plan to sell shares at prices 50 percent above their mainboard peers, just as worries over speculation spurred officials to tighten trading rules.
http://news.yahoo.com/s/nm/20090924/bs_nm/us_markets_china_startups_1

China sets ChiNext board debut trading limit
SHANGHAI (AFP) – – China has set an 80 percent limit on share price movements for the opening day of ChiNext, its planned Nasdaq-style board, to curb speculative trading, the Shenzhen bourse said Thursday.
http://asia.news.yahoo.com/afp/20090924/tbs-china-stocks-ipo-ec2362a.html

Tokyo Grain Exchange: With The Suspension Of Trading Of Raw Silk Futures The Composition And Weight Of The TG Index Will Be Adjusted
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=85532

BlackRock: China Leading The Way In Commodities Demand – Will The US Pick Up The Baton?
BlackRock’s Catherine Raw, fund manager in the natural resources team, believes that commodities are set to make further progress as investors become more confident that the majority of the world economic crisis has passed. While mining equities having rallied in 2009 (up 61% in US dollar terms) valuations are still attractive, being around half what they were in May 2008.
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=85536

South Korea Promoted To Developed Country Status In The FTSE Global Equity Index Series
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=85542

Frontier Markets

NSE waives online trading fees to encourage rural participation
Mumbai: In a relief to retail investors, the National Stock Exchange (NSE) will waive transaction charges up to Rs 1 lakh for trades emanating from VSAT trading terminals in semi-urban and rural locations.
http://www.financialexpress.com/news/NSE-waives-online-trading-fees-to-encourage-rural-participation/520716/

StanChart, Indian sugar body in derivatives row
NEW DELHI, Sept 24 – India’s leading sugar trading firm and Standard Chartered Bank are locked in a legal dispute over derivatives trading losses, according to industry officials and sources.
http://asia.news.yahoo.com/rtrs/20090924/tbs-india-sugar-derivatives-02c71ef.html

First Group Of Students In Sri Lanka Complete Securities & Investment Institute’s Islamic Finance Qualification
A first group of 26 students in Sri Lanka have completed the Securities & Investment Institute’s (SII) ground-breaking Islamic Finance Qualification (IFQ).
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=85548

Miscellaneous News

SunGard’s Kiodex Real Time Enhanced with Expanded Market Coverage for Commodity Trading
SunGard has released additional capabilities for its Kiodex Real Time trade capture, position-keeping, mark-to-market and risk management solution for commodities. The enhancements provide expanded coverage of trading venues to include several new markets under the Chicago Mercantile Exchange (CME), giving firms the ability to access real-time trade and pricing data on a single platform.
http://news.yahoo.com/s/prweb/20090924/bs_prweb/prweb2938704_1

Barchart Expands Data Centers to Equinix and Amazon EC2
CHICAGO–(BUSINESS WIRE)–Barchart.com, Inc., a leading provider of market data and information, today announced it has completed expansion into two new data center facilities, providing Barchart customers with additional connectivity and hosting options.
http://www.businesswire.com/portal/site/google/?ndmViewId=news_view&newsId=20090924005494&newsLang=en

SunGard and Orange Business Services connect trading networks
Today at SunGard’s London City Day, Orange Business Services – Trading Solutions, a leader in convergent voice and electronic trading infrastructure and services for trading communities, announced that it is linking its network to SunGard’s GL Net, a low latency market data and order routing network.
http://bit.ly/LIp5u

Fiserv to Release Third Quarter 2009 Earnings on October 27, 2009
BROOKFIELD, Wis.–(BUSINESS WIRE)–Fiserv, Inc. (NASDAQ: FISV – News), the leading global provider of financial services technology solutions, will announce its third quarter earnings for 2009 after the close of regular market trading on Tuesday, October 27, 2009.
http://finance.yahoo.com/news/Fiserv-to-Release-Third-bw-3630769162.html?x=0&.v=1

Russell Develops a Fully Objective Metric to Measure, Compare Target Date Fund Families
TACOMA, Wash.–(BUSINESS WIRE)–Russell Investments has developed pioneering methodology to provide investors with a consistent way to measure and compare target date fund families. The Russell Target Date Metric* offers a returns-based measure of how well a target date fund family performed over a specific time.
http://www.businesswire.com/portal/site/google/?ndmViewId=news_view&newsId=20090924005179&newsLang=en

Fiber Network Just For Connecting Exchanges and Data Centers in NY, NJ Soon to Launch
Shane Kite
RCN Metro is laying fiber for a low-latency co-location and exchange-only network connecting the major bourses and data centers in the New York and New Jersey financial hubs, according to John Romagnoli, senior manager of product development at RCN Metro.The firm will deploy services on the network by year end, he said, eventually offering speeds up to 100 gigabytes per interface. The project will be “100 percent complete” in six months, he said.
http://bit.ly/18i4gV

Observations – Statistics – Commentary

John J. Lothian & Co., Inc. Launches Interest Rate Blog
The Marketswiki Team is excited to announce the launching of the JLN Interest Rate Blog. This new component of the John Lothian Newsletters will focus and drill down on fixed income and credit derivative issues and news. It is edited by Christine Nielsen, Senior Editor/Producer of Marketswiki.

It’s a big day today. On this, the first day of the JLN Interest Rates blog, the Federal Reserve will make its Federal Open Market Committee announcement and in so doing indicate its balance sheet plans. No matter what the Fed announces, there are some out there who contend things are improving – at least in the Treasury market.

Bravely dipping his foot into the new JLN blog territory is Galen Burghardt, senior vice president and head of research at Newedge USA. He talked with us at John J. Lothian & Co. about his view of the interest rate markets and made the bold move of saying that even though the interest rate markets “basically went away” during the last year or so, these markets are getting back to having the footing they had before 2008.

“If you ask anyone in the Treasury market, they would say things are getting better and coming back,” says Burghardt. Everything I have seen in these markets “has suggested that these markets have regained most of their liquidity.”

For the rest of this article, please visit
http://www.jlninterestrates.com/

Follow the JLN Interest Rates Blog on Twitter:
http://twitter.com/JLNIR

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Dollar slides as G-20 looms
NEW YORK (Reuters) — The U.S. dollar slid to a one-year low against the euro Tuesday just over $1.48 as crumbling sentiment on the U.S. currency prompted selling ahead of a Federal Reserve meeting and Group of 20 summit this week.
http://bit.ly/SWewn

**** JMT- One of Chicago’s own young professionals, Jessica Hoversen, talks about the G-20′s impact on the dollar

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THE OPTIONS INDUSTRY COUNCIL ANNOUNCES NEW STUDY FINDS COLLAR STRATEGIES OUTPERFORM BUY AND HOLD
CHICAGO, IL — 09/23/09 — The results of a new study examining the use of options in a collar strategy (both active and passive implementations) on the PowerShares QQQ(TM) exchange-traded fund (ETF) show it provides superior returns to the traditional buy and hold strategy while reducing risk by almost 65%.
http://bit.ly/n0ilc

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ISE Introduces Dual Currency Conventions For ISE FX Options
The International Securities Exchange (ISE) today announced that dual currency conventions are now available for four currency pairs in its portfolio of ISE FX Options.
http://bit.ly/Yj06L

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Oslo Bors selects Scila Surveillance delivered by Cinnober
Sep 23, 2009 (Hugin via COMTEX) — LDNXF | Quote | Chart | News | PowerRating — Oslo Bors has chosen Scila Surveillance for their derivatives market. This makes Oslo the fourth market to take in the recently launched all-purpose surveillance system.
http://bit.ly/10sW5V

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Patsystems Signs Contract with TA Futures Sdn Bhd
Patsystems is pleased to announce that it has signed a software license agreement with TA Futures Sdn Bhd, a licensed Futures Broker of the Bursa Malaysia Derivatives Bhd and a Clearing Participant of the Malaysian Derivatives Clearing House (MDCH.) TA Futures will use the installation for the provision of electronic trading capability for Bursa Malaysia, along with other major global exchanges. TA Futures will provide its clients a choice of Patsystems’ industry-leading front-ends, J-Trader and Pro-Mark, both of which can be easily distributed via the internet.
http://bit.ly/Z8KsE

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Goldman sees high return on investing in women
By Alan Rappeport in New York
Lloyd Blankfein, chief executive of Goldman Sachs, said on Wednesday that there was more “leverage” investing in women around the world compared with men because they are starting from a lower position and have a greater tendency to reinvest in family.
http://bit.ly/2O7FQ0

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Goldman Sachs Among the 2009 Working Mother 100 Best Companies
New York, NY, September 22, 2009 – Defying expectations in this time of economic stress, The Goldman Sachs Group, Inc (Ticker: GS) has been named among the 2009 Working Mother 100 Best Companies for its unwavering dedication to family-friendly benefits.
http://bit.ly/bPXYj

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UBS Investment Bank’s Gramm: Pay Limits On Bankers Won’t Work
By Riva Froymovich, Of DOW JONES NEWSWIRES
NEW YORK -(Dow Jones)- Efforts to limit the compensation of banking executives won’t work, according to former U.S. Senator Phil Gramm, who is currently vice chairman of UBS AG’s (UBS) Investment Bank division.
http://bit.ly/1abL3r

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Could Social Networks Help Risk Managers?
Why current risk models and practices don’t work, and whether risk managers will be willing to share ideas in open forums.
By Penny Crosman
Risk models don’t work very well, do they? That’s the thought we were left with as we departed a professional risk managers conference held at Goldman Sachs’ headquarters last night. David Rowe, executive vice president of risk management at Sungard, led the group through some of the reasons Wall Street firms’ risk models failed them before and during the subprime crisis.
http://bit.ly/JhRti

Lead Stories

CME Plans OTC Forex Clearing Service By Year End – CEO
By Jacob Bunge Of DOW JONES NEWSWIRES CHICAGO – The head of CME Group Inc. (CME) said Wednesday that a renewed attempt to break into clearing the $2 trillion-a-day over-the-counter currency market signaled a new direction for the exchange operator. CME plans to start clearing OTC forex products by the end of the year, 11 months after pulling the plug on a loss-making joint venture to trade and clear currencies.
http://www.easybourse.com/bourse/actualite-financiere/updatecme-plans-otc-forex-clearing-service-by-year-end-ceo-735681

Fed Has Begun Bank Bonus Audit
By Lauren Tara LaCapra
NEW YORK (TheStreet) — The Federal Reserve already has begun its charge to restrict bank bonuses by poring over balance-sheet data, according to a report.
http://www.thestreet.com/story/10602107/1/fed-has-begun-bank-bonus-audit.html?puc=_tscrss

Neonet launches ‘dark pool’ scanner
By Jeremy Grant in London
The proliferation of technology aimed at helping traders navigate Europe’s increasingly fragmented pools of liquidity continued on Wednesday as Neonet, Scandinavia’s largest broker, launched a trading algorithm that scans multiple “dark pools” to hunt for trading possibilities.
http://bit.ly/icUNw

Rep. Frank extracts vanilla from consumer agency
By Kevin Drawbaugh
WASHINGTON (Reuters) – The Congress’ chief author of financial regulatory reform moved on Tuesday to kill the most controversial part of an Obama administration proposal for a new government watchdog for financial consumers.
http://news.yahoo.com/s/nm/20090922/pl_nm/us_financial_regulation_1

S.E.C. Warns Swaps May Evade White House Reform
The U.S. securities regulator warned Congress on Tuesday that parts of the $450 trillion private swaps market could still fall through regulatory cracks under the Obama administration’s financial reform plan.
http://dealbook.blogs.nytimes.com/2009/09/23/sec-warns-swaps-may-evade-white-house-reform/

CFTC’s Gensler Pitches Position Limits In Europe
By Sarah N. Lynch, Of DOW JONES NEWSWIRES
WASHINGTON -(Dow Jones)- The head of the U.S.Commodity Futures Trading Commission took his case for imposing speculative trading limits on energy products to Europe Wednesday where he urged foreign regulators to use all of their existing powers to police the markets.
http://bit.ly/JgH7A

Gensler Addresses International Energy Agency in Paris
Washington, DC – U.S. Commodity Futures Trading Commission Chairman Gary Gensler today addressed the International Energy Agency in Paris, France, on regulatory initiatives in the energy futures markets, including transparency efforts and position limits. The full text of Chairman Gensler’s remarks is attached.
http://www.cftc.gov/newsroom/generalpressreleases/2009/pr5720-09.html

Exchanges body issues ‘dark pools’ warning
By Jeremy Grant in London
The world’s stock and derivatives exchanges warned the Group of 20 leaders yesterday that the continued “proper functioning” of their markets could not be taken for granted because of a proliferation of alternative trading venues such as “dark pools”.
http://bit.ly/11H0A3

Financial Regulatory Blitz
Brian Wingfield and Aleksandra Kulczuga
WASHINGTON — Contrary to popular belief, health care has not entirely consumed the domestic policy agenda in Washington. This week, lawmakers are blitzing Capitol Hill with hearings on financial regulatory reform.
http://www.forbes.com/2009/09/22/financial-regulation-reform-business-washington-hearings.html?feed=rss_news

Treasury’s Ramanathan Says Borrowing to Remain ‘High’ (Update1)
By Gabrielle Coppola and Rebecca Christie
Sept. 23 (Bloomberg) — The Treasury Department’s borrowing needs, fueled by the budget deficit, will remain “high” without exhausting investor demand for U.S. government securities, a Treasury official said today. “Looking ahead, Treasury’s potential borrowing needs — and the uncertainty surrounding such forecasts — will remain high in the medium term,” Karthik Ramanathan, the department’s debt management director, said in a speech in New York.

WFE Board urges consistent regulation and more transparency from G20 market reform efforts
Paris, 22 September 2009 – The World Federation of Exchanges (WFE) Board of Directors urged leaders of the G20 nations at their upcoming summit in Pittsburgh, Pennsylvania (USA), to press for market reforms that enhance transparency and create more uniform rules between exchange-traded and less-regulated markets. In a letter to the G20 signed by WFE Chairman William J. Brodsky, the WFE Board applauded the efforts of the G20 leaders to improve unregulated markets and products by advocating the use of clearing houses and exchanges where risks can be better managed and prices are transparently set.Mr. Brodsky is Chairman and CEO of the Chicago Board Options Exchange.
http://bit.ly/u3rgO

Treasury Secretary Timothy F. Geithner, Written Testimony, House Financial Services Committee, Financial Regulatory Reform,
23-Sep-09
http://www.treas.gov/press/releases/tg296.htm

CFTC Chairman Gary Gensler’s Testimony to the House Committee on Agriculture
http://bit.ly/3LNDp0

Clinton Says Don’t Blame Him for the Economic Crisis
By S. JAMES SNYDER
Given the sweep and severity of today’s global economic crisis, it would seem there’s plenty of blame to go around. But Bill Clinton doesn’t think any of it should fall on his shoulders.
http://bit.ly/XUVdU

Russia’s Markets Making A Comeback
By Penny Crosman
But challenges remain to doing business in the former Soviet Union, says Josef Schroeter, president of CQG.
http://bit.ly/49SvUb

Union Chief Leads Protest of Wall St. ‘Apostles of Greed’
As one of his first acts as the new president of the A.F.L.-C.I.O., Richard L. Trumka led a rally on Wall Street on Tuesday to protest the “apostles of greed” and to back President Obama’s push for increased financial regulation.
http://bit.ly/TIz5F

Environmental Trading News

China Pledges to Curb CO2 Emissions
Chinese President Hu Jintao on Tuesday promised to put a “notable” brake on the country’s rapidly rising carbon emissions, but dashed hopes he would unveil a hard target to kickstart stalled climate talks.
http://www.enn.com/wildlife/article/40513

Poland, Estonia Win Challenge to CO2-Emission Limits (Update3)
By Stephanie Bodoni and Jonathan Stearns
Sept. 23 (Bloomberg) — Poland and Estonia won court challenges to European Union limits on carbon-dioxide emissions for energy and manufacturing companies, pulling down the price of EU pollution allowances as much as 5 percent today.
http://www.bloomberg.com/apps/news?pid=20601095&sid=ahlP2z11ukIY

Victoria in massive carbon stocktake
TOM ARUP
VICTORIA has undertaken a massive stocktake of all the carbon stored in its public land, hoping to access the billions of dollars expected to be created by offsets in an emissions trading scheme.
http://www.theage.com.au/environment/victoria-in-massive-carbon-stocktake-20090923-g2oo.html

North American Firms Increase Carbon Commitments Despite Economy
NEW YORK, Sept. 23 /CNW/ – EcoSecurities, a leading company in the business of sourcing, developing, and trading carbon credits from greenhouse gas emission reduction projects, has partnered with Baker & McKenzie LLP, a leading climate change law firm, and ClimateBiz, the resource for climate management, to launch the second year of its Carbon Management and Offsetting Trends Survey Report 2009.
http://finance.yahoo.com/news/North-American-Firms-Increase-cnw-1223537746.html?x=0&.v=1

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

Exchange & ECN News

CME Group Announces Latin American Fund Manager Incentive Program
CHICAGO, Sept. 23 /PRNewswire-FirstCall/ — CME Group, the world’s largest and most diverse derivatives marketplace, today announced a new Latin American Fund Manager Incentive Program (FMIP) that will enable registered Latin American-based funds to receive discounted trading fees for electronic trading of CME, CBOT and NYMEX products, scheduled to begin October 1.
http://finance.yahoo.com/news/CME-Group-Announces-Latin-prnews-799811241.html?x=0&.v=1

NYSE and NYSE Amex: Best Price and Size in Small-Cap Issues
From my colleague Steven Poser in our Strategic Market Analysis team:
NYSE Arcavision provided data for the 16-September-2009 article in the Wall Street Journal, which showed that quoted spreads are at their historically narrowest levels in Russell 1000® issues. The article noted that small-cap issues, as measured by the Russell 2000®, have not achieved similar spread narrowing, because high-frequency trading is not as prevalent in small-cap issues. We found a similar result for low-volume versus high-volume stocks, after adjusting for periods with similar volatility, in this Exchanges blog post.
http://exchanges.nyse.com/archives/2009/09/small_cap.php

Visa and NYSE Euronext Partner to Reinforce Commitment to Financial Literacy Education
Joseph W. Saunders, Chairman and Chief Executive Officer of Visa rings The Opening BellSMjoined by NYSE Euronext CEO Duncan Niederauer, soccer stars Landon Donovan and Brian McBride
NEW YORK , Sept. 23, 2009 – NYSE Euronext today welcomed executives and guests from Visa Inc.to celebrate the launch of Financial Soccer – a free, 2010 FIFA World Cup branded video game that combines the world’s most popular sport with an award-winning financial literacy curriculum.
http://www.nyse.com/press/1253614197500.html

NYSE Arca Europe Extends European Trading Scope
NYSE Arca Europe adds 334 large and mid cap stocks to its current instrument list, further broadening its proposition covering13 leading European indices.
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=85498

Chi-X Global Builds Out Asia-Pacific Management Team
Chi-X Global Inc., a holding company for regional Chi-X market centers and the Chi-Tech technology solutions provider, today announced several recent new additions to its management team in the Asia-Pacific region.
http://www.pr-inside.com/chi-x-global-builds-out-asia-pacific-management-r1494926.htm

Banks, Brokers & Dark Pools

EU Gives Green Light For BlackRock-Barclays Deal
BlackRock’s acquisition of Barclays Global Investors was given the green light by the European Commission on Tuesday. The deal will give the Barclays Group much-needed capital but marks a step back from investment banking.
http://dealbook.blogs.nytimes.com/2009/09/23/eu-gives-green-light-for-sale-of-barclays-division-to-blackrock/

Bank of America, Chase to lighten overdraft rules
By Kathy Chu, USA TODAY
As Congress considers legislation to crack down on bank overdraft fees, the industry is starting to scale back some controversial practices.
http://www.usatoday.com/money/industries/banking/2009-09-22-lightened-bank-overdraft-fees_N.htm?csp=34

UBS Is Said to Fire About 150 Brokers in U.S. Wealth Management
By Michael J. Moore
Sept. 22 (Bloomberg) — UBS AG, Switzerland’s largest bank by assets, plans to fire more than 150 new financial advisers in its U.S. wealth-management unit, according to a person familiar with the matter.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aGXcKgKzXHwA

UBS cuts jobs at U.S. wealth arm: sources
By Juan Lagorio and Lisa Jucca
NEW YORK/ZURICH (Reuters) – Swiss bank UBS AG, which suffered massive client withdrawals after a high-profile U.S. tax fraud probe, has cut around 200 jobs at its U.S. wealth management arm, sources familiar with the matter told Reuters.
http://news.yahoo.com/s/nm/20090923/bs_nm/us_ubs_2

UBS Cuts Rookie Brokers, Raising Questions About Firm’s Next Move
By Helen Kearney
The decision by UBS to cut rookie brokers has raised questions in the industry about their wealth management strategy in the United States. UBS intends to layoff around 180 junior advisors this week, according to sources close to the firm. The cuts will affect advisors who are new to the field or recently completed advisor training at the firm.
http://www.financial-planning.com/news/ubs-cuts-rookie-brokers-2664034-1.html

Citigroup, UBS, Deutsche Bank Fined for Lapses in Vonage IPO
By Joshua Gallu
Sept. 22 (Bloomberg) — Citigroup Inc.,UBS AG and Deutsche Bank AG were fined by regulators for leaving investors unaware they’d bought shares in the initial public offering of Vonage LLC while the Internet phone carrier was plunging.
http://www.bloomberg.com/apps/news?pid=20601204&sid=aBqk9TNXd41Y

Pay rules may prompt Goldman to shed bank charter
Steve Eder
Some investors believe Goldman Sachs Group Inc may try to shed its commercial banking charter to sidestep U.S. government efforts to rein in exorbitant Wall Street pay.
http://uk.news.yahoo.com/22/20090923/tbs-uk-goldman-charter-sb-29d6e98.html

Bank of America To Give Panel More Documents on Merrill Lynch Deal
Bank of America agreed to turn over more documents to the House Oversight and Government Reform Committee for its probe of the bank’s acquisition of Merrill Lynch, the panel’s chairman said Tuesday.
http://news.yahoo.com/s/cq/20090923/pl_cq_politics/politics3207670_2

MB Financial completes $201M stock offering
(AP) — Bank holding company MB Financial Inc. has completed a public offering of nearly 12.6 million common shares at $16 each for total proceeds of $201.3 million. The sale included more than 1.6 million shares issued to underwriters to cover over-allotments, the company said Thursday.
http://bit.ly/4auJxW

MB Trading Expands Intraday Futures Margin to 4-to-1
El Segundo, CA, September 23, 2009 –(PR.com)– Manhattan Beach Trading Financial Services, Inc. (“MBTFS”), a technology-driven, low-commission brokerage specializing in order routing in Equities, Futures, and Options through various global exchanges and electronic networks, announced Tuesday that it now offers 4-to-1 intraday margin leverage on all futures contracts offered by the firm.
http://www.pr.com/press-release/180719

Carlyle Hires Goldman Adviser
The Carlyle Group has tapped a senior adviser to Goldman Sachs Capital Partners to be vice president of the firm’s global buyout unit.
http://dealbook.blogs.nytimes.com/2009/09/23/carlyle-hires-goldman-advisor/

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/2009/dig092309.htm

Credit Suisse Hedge-Fund Lawsuit Is Revived by Court (Update1)
By Ben Bedell
Sept. 22 (Bloomberg) — Investors who lost 90 percent of their money in a Credit Suisse Group AG hedge fund had their fraud claim reinstated by a New York state appeals court in Manhattan.
http://www.bloomberg.com/apps/news?pid=20601127&sid=aY9bFeKrz1ZY

State gets $9M judgment against former hedge fund
UPPER MARLBORO, Md. (AP) — The Maryland attorney general’s office says it has won a $9.5 million judgment against the operator of several former hedge funds. The judgment was granted in Prince George’s County Circuit Court against John Henry Williams.
http://www.hometownannapolis.com/news/gov/2009/09/22-10/State-gets-9M-judgment-against-former-hedge-fund.html

Accused Bear Managers Battle With Prosecutors Over Evidence
U.S. prosecutors said on Tuesday that two former Bear Stearns hedge fund managers facing trial on fraud charges are trying to impede the government’s access to documentary evidence, Reuters reported.
http://dealbook.blogs.nytimes.com/2009/09/23/accused-bear-managers-battle-with-prosecutors-over-evidence/

Ex-Bear Fund Manager’s Bail Needs Review After Trip, U.S. Says
By Patricia Hurtado
Sept. 23 (Bloomberg) — Federal prosecutors asked a U.S. judge to review bail terms for ex-Bear Stearns Cos. hedge fund manager Ralph Cioffi after he traveled to Florida to recover documents sought by the government.
http://www.bloomberg.com/apps/news?pid=20601103&sid=ay_zK5JRDJBk

Schapiro Wants OTC Derivatives Regulated Like Securities
By Paul Menchaca
SEC Chairman Mary Schapiro, looking to improve upon the Treasury Department’s regulatory reform proposal released this summer, wants to see over-the-counter derivatives regulated like securities.
http://www.financial-planning.com/news/schapiro-otc-derivatives-regulation-2663961-1.html

British Financial Regulator Talks Tough
According to some, Britain’s flagging economy is on the mend. So does that mean the tough lessons of the last two years — including the first bank run since the 19th century and the humbling of some of Britain’s largest banks — have been put to good use? Not so, according to Adrian Turner, chairman of Britain’s Financial Services Authority (FSA) – the country’s equivalent to the SEC.
http://bit.ly/9sr5J

The Financial Services Authority (FSA) has today issued a feedback statement reaffirming its regulatory approach to balancing the responsibilities of consumers and firms, which it first set out in Discussion Paper 08/05.
The 2008 paper articulated how the FSA considers consumer responsibility in its decision and policymaking… In that publication the FSA also asked for feedback from industry and consumer bodies to gauge if a wider consensus could be reached as to what is the appropriate balance of responsibility between consumers and firms in the sale of financial services products… Dan Waters, director of retail policy and conduct risk, said: “The FSA believes in the importance of having a transparent policy-making framework. The feedback statement and our original discussion paper set out for the first time the approach we take to consumer responsibility and will help the industry understand our approach to this important topic.
http://bit.ly/lsA1g

ASC seeks Trading Ban against Tri-Link Consultants Inc. and Klaus Link
CALGARY, Sept. 23 /CNW/ – The Alberta Securities Commission (ASC) is seeking to reciprocate a Saskatchewan Financial Services Commission (SFSC) sanction imposed against Saskatchewan resident, Klaus Link and Saskatchewan based corporation, Tri-Link Consultants Inc., for securities laws violations.
http://finance.yahoo.com/news/ASC-seeks-Trading-Ban-against-cnw-3277875412.html?x=0&.v=1

FMA Executive Board welcomes EU proposal for a European System of Financial Supervisors – “a step in the right direction”
The Executive Board of the Austrian Financial Market Authority FMA, Helmut Ettl and Kurt Pribil, welcomed the legislative proposals, set forth today by EU Commissioners Charlie McCreevy and Joaquin Almunia, for a European System of Financial Supervisors, calling the proposals “a step in the right direction”. It is also planned to establish a European Systemic Risk Council (ESRC) as part of the European Central Bank (ECB), with the involvement of national supervisors, for the purpose of developing an early warning system for financial crises.
http://bit.ly/jn1Ay

Investments – Indexes – Managed Futures – Managed Funds

Hedge Funds Keep Watch on Washington
By David Bogoslaw
As legislators and officials in the Obama Administration debate and potentially draw closer to passing new rules regarding health care, carbon emissions, and financial services, hedge fund managers are awakening to the need to reexamine the assumptions they have long held about government’s role in the private sector.
http://www.businessweek.com/investor/content/sep2009/pi20090922_204361.htm?campaign_id=rss_null

Griffin’s Citadel Securities to Unveil Credit Team in October
By Kristen Haunss
Sept. 23 (Bloomberg) — Citadel Investment Group LLC will formally open its credit business next month as the $13.5 billion hedge fund founded by Ken Griffin expands into the market for leveraged loans and high-yield, high-risk bonds.
http://www.bloomberg.com/apps/news?pid=20601087&sid=a0_SiO9cnQwA

Ex-Marshall Wace star returns with hedge fund start-up
One of the most important partners at Marshall Wace, who left the hedge fund giant almost a year ago, has re-emerged to launch a new long/short European equities portfolio that will likely be one of the most closely watched start-ups of this year.
http://www.efinancialnews.com/homepage/index/content/1055233269

Fallen money-market fund makes $1B distribution
A money-market mutual fund that held more than $60 billion before it notoriously “broke the buck” a year ago said Wednesday it will hand out $1 billion in a fifth distribution to investors from the fund’s remaining assets.
http://bit.ly/jfZ46

The Madoff effect hits Fortitude Capital funds
MALCOLM SCOTT
FORTITUDE CAPITAL, an Australian hedge fund run by a former Citigroup trader, has been unable to arrest a slump in assets after redemptions from some investors who lost money with Bernard Madoff helped cut its managed funds in half.
http://www.brisbanetimes.com.au/business/the-madoff-effect-hits-fortitude-capital-funds-20090923-g2ns.html

Canadian hedge fund offers investors more transparency
OAKVILLE, ON, Sept. 23 /CNW/ – Acorn Global Investments is answering investor feedback about the hedge fund industry by providing the transparency they have been asking for.
http://finance.yahoo.com/news/Canadian-hedge-fund-offers-cnw-3267241408.html?x=0&.v=1

Hedge Funds Profit From Stock Sales, SAC’s Leach Says (Update1)
By Elisa Martinuzzi and Tom Cahill
Sept. 23 (Bloomberg) — Hedge funds that in the past sought to profit from rising and falling equities are gaining by buying into companies that sell shares to cut debt and fund purchases, according to SAC Global Investors LLP’sRob Leach.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aiQriro9pC4k

Hedge funds punt on LPT takeovers
ANALYSIS: Adele Ferguson
BESIDES a warming in sentiment by retail and institutional investors towards listed property trusts, the recent surge in share prices can also be attributed to the return of hedge funds.
http://www.theaustralian.news.com.au/story/0,,26116026-25658,00.html?from=public_rss

Lessons from Lehman
The collapse of Lehman Brothers sent a shockwave through the world and many tipped it would irrevocably change the economic landscape. Peter Switzer caught up with AMP Capital’s Chief Economist Dr Shane Oliver to discover what Lehman Brothers’ demise means for the economy, one year on.
http://bit.ly/tgDCG

New db x-trackers Strategy ETF Launched on Xetra
The new db x-trackers ETF tracks the performance of the HSI Short Index, which enables investors to participate in the inverse performance of the Hang Seng Index for the first time. The Hang Seng Index comprises 42 companies which represent approximately 70 percent of total market capitalization on the Hong Kong stock exchange. The stocks are weighted on the basis of market capitalization and freefloat.
http://bit.ly/sKAdd

Ten New EasyETFs Launched on Xetra
BNP Paribas Asset Management has listed ten new EasyETFs in the XTF segment on Xetra®. The new EasyETFs enable investors not only to replicate the performance of companies from Europe, the euro zone and the USA but also to invest in the euro money market.
http://bit.ly/DCUbx

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

KB Chairman Hwang Offers to Resign After Woori Losses Penalty
By Bomi Lim
Sept. 23 (Bloomberg) — KB Financial Group Inc. Chairman Hwang Young Key offered to resign after South Korean regulators barred him from seeking a second term because of investment losses at a rival company he ran until two years ago.
http://www.bloomberg.com/apps/news?pid=20601013&sid=aeZDvzvuaKCM

S.Korea KB Fin CEO offers to resign after sanction
SEOUL, Sept 23 (Reuters) – The chief executive of South Korea’s KB Financial Group on Wednesday offered to step down, after the country’s financial regulator penalised him over alleged mismanagement during a stint at a rival bank.
http://www.iii.co.uk/news/?type=afxnews&articleid=7537178&subject=companies&action=article

British pension funds tap into S Korean bourse
British pension funds stepped into the Seoul bourse last week, with the FTSE Group promoting Seoul’s stock exchange to developed market status, the nation’s financial watchdog said Wednesday.
http://english.people.com.cn/90001/90778/90858/90863/6765938.html

Goldman Sachs names Zhang Greater China head
http://www.marketwatch.com/story/goldman-sachs-names-zhang-greater-china-head-memo-2009-09-23?siteid=rss

Frontier Markets

The steady rise of Islamic finance
By Emily Buchanan and Bhasker Solanki
London has become one of the biggest centres for Islamic finance in the world, with five Islamic banks, and many others in the high street offering Islamic financial products, or “windows” as they are known.
http://news.bbc.co.uk/2/hi/business/8270490.stm

Daily turnover will double to Rs 3,200 cr by fiscal-end: NMCE
Anil MishraThe National Multi Commodity Exchange (NMCE) was confident of doubling its daily turnover in the next six months, Anil Mishra, chief executive officer of the bourse, said.
http://www.business-standard.com/india/news/daily-turnover-will-double-to-rs-3200-cr-by-fiscal-end-nmce/370921/

Kurdistan Oil Spat With DNO Signals New Risk in Iraq (Update1)
By Marianne Stigset and Anthony DiPaola
Sept. 23 (Bloomberg) — DNO International ASA’s suspension from producing oil in Iraq highlights the risks for explorers seeking to tap the world’s third-largest reserves.
http://www.bloomberg.com/apps/news?pid=20601207&sid=aHnYfBOp9QIk

Mark Mobius: Making money in emerging markets
Mark Mobius spends his working life visiting the world’s emerging markets. He tells Robert Miller why he believes they will continue to make money for investors.
http://www.telegraph.co.uk/finance/personalfinance/investing/6221575/Mark-Mobius-Making-money-in-emerging-markets.html

Miscellaneous News

IntraLinks Provides Hedge Fund Managers Help on Impending Regulatory Changes
Experts Discuss Strategies for Providing Transparent Communications and Safeguarding Material Information
http://finance.yahoo.com/news/IntraLinks-Provides-Hedge-iw-3234860987.html?x=0&.v=1

Omgeo learned lessons in a rough 2001
By Galen Moore
Sometimes your opportunity is gone before you even launch the company. That’s what happened to Omgeo LLC, a joint venture founded in 2000 by the electronic trading divisions of Thomson Financial and the Depository Trust & Clearing Corp. (DTCC) to take advantage of expected regulatory changes requiring one-day trade confirmation.
http://www.masshightech.com/stories/2009/09/21/weekly12-Omgeo-learned-lessons-in-a-rough-2001.html

SunGard’s AvantGard Launches Treasury XE With Flexible Deployment Options Including SaaS Delivery
SunGard today announced the availability of AvantGard Treasury Express Edition (XE), a Web-based treasury solution geared toward small to mid-sized treasuries with three deployment options: Software-as-a-Service (SaaS), hosted or installed. AvantGard Treasury XE complements the existing portfolio of enterprise treasury solutions offered by SunGard and provides more options to organizations that focus on the core treasury disciplines of cash management and foreign exchange.
http://bit.ly/3aInsP

Grant Capital Partners Goes Live With SunGard’s Sierra for Real-Time Cross-Asset Trading
Grant Capital Partners, a macro hedge fund that trades in liquid products, has gone live with SunGard’s Sierra, a real-time trading, risk and position management solution. Grant selected Sierra to help it manage its cross-asset trading activities. Sierra helps Grant manage its operations across instruments including FX cash, FX options, exchange-traded futures and options, fixed income and interest rates. The solution is delivered by SunGard to Grant on an ASP (application service provider) basis.
http://bit.ly/10eCqN

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Trading Technologies launches Autospreader Strategy Engine
September 22nd, 2009 – Trading Technologies launches server-based SE execution platform
http://bit.ly/FUxdL

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Credit default swaps should be made illegal
http://bit.ly/45jjWl

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Gold Market: Almost 100% Of Money Managers Are Long
Vincent Fernando
If you are long gold, you’re no contrarian. U.S. Commodity Futures Trading Commission (CFTC) data shows that the net long position of speculators in gold has reached an all-time high of 93.6%.
http://bit.ly/3e1iRH

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Gender bender at RBC
By CHUCK BENNETT
A Manhattan financial trader says sexism — not her relationship to an accused Ponzi scheme mastermind — spurred her firing from a top Street firm, according to her gender-discrimination suit.
http://bit.ly/ptrFb

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Hedge fund network lures 1000+ users
A social networking site set up by two former HSBC bankers to bring together smaller hedge fund managers has attracted 1,300 users, even before its official launch.
http://bit.ly/QWVoe

Lead Stories

Fed Rejects Geithner Request for Public Study of Its Governance, Structure
The Federal Reserve Board has rejected a request by U.S. Treasury Secretary Timothy Geithner for a public review of the central bank’s structure and governance, three people familiar with the matter said.
http://www.bloomberg.com/apps/news?pid=20601109&sid=adjvXg1zP.zY

SEC Says Big Regulatory Initiatives Coming This Fall
Nina Mehta
The Securities and Exchange Commission is engaging in a broad reassessment of equities market structure against the backdrop of an increasingly automated trading environment. This comes on the heels of a rule proposal last Thursday that would ban flash orders on equities and options exchanges.
http://www.tradersmagazine.com/news/sec-regulatory-changes-coming-104397-1.html

CBOE Stock Exchange (CBSX) Drops Taker Fee Significantly
CHICAGO, September 22, 2009 – The CBOE Stock Exchange, LLC (CBSX) today announced that the Exchange will significantly reduce its fee for taking liquidity, beginning on October 1, 2009. For stocks trading above $1.00, taker fees on CBSX will decrease to $0.0010 from $0.0030 per share, and liquidity rebates will be reduced to $0.0005 from $0.0025 per share. CBSX will continue to rebate to liquidity providers 50 percent of the Exchange’s market data revenue from both quotes and prints. It is the only U.S. securities exchange to offer a rebate of this kind.
http://www.cbsx.com/

CFTC, SEC to speak at US House derivatives hearing
WASHINGTON, Sept 22 (Reuters) – Leaders of the two major federal regulators of U.S. financial markets will testify before the House Agriculture Committee on Tuesday as concern mounts about the pace of the White House’s plan to regulate the multi-trillion over-the-counter derivatives market
http://www.reuters.com/article/marketsNews/idUSN2234109120090922

Schapiro: Derivatives Should Be Treated Like Stock
Ronald D. Orol
WASHINGTON – Over-the-counter derivatives should be regulated the same way as the commodities or securities they are based on, said Securities and Exchange Commission Chairwoman Mary Schapiro on Tuesday.
http://www.foxbusiness.com/story/markets/industries/finance/schapiro-derivatives-treated-like-stock/

CFTC chief urges broad oversight of derivatives
By CHRISTOPHER S. RUGABER
WASHINGTON – A key regulator on Tuesday urged Congress to go beyond an Obama administration proposal and impose comprehensive oversight on the sprawling, complex market for financial derivatives blamed for worsening the credit crisis last fall.
http://news.yahoo.com/s/ap/20090922/ap_on_bi_ge/us_financial_overhaul_derivatives_2

Obama administration pressures Congress to pass financial reform, despite its packed fall agenda
http://thehill.com/business-a-lobbying/59611-obama-administration-pressures-congress-to-pass-financial-reform-despite-packed-agenda

WFE Board urges consistent regulation and more transparency from G20 market reform efforts
http://bit.ly/c0YbH

Roger Liddell of LCH.Clearnet on balancing the need to cut risk through clearing
http://www.ft.com/cms/4683c1ac-71fd-11de-b7e1-00144feabdc0.html?_i_referralObject=9850485&fromSearch=n

Financial Crisis Inquiry Commission to Begin Investigations
http://blogs.law.harvard.edu/corpgov/2009/09/22/financial-crisis-inquiry-commission-to-begin-investigations/

Environmental Trading News

EEX/Eurex launch new emission rights contracts
The European Energy Exchange (EEX) and Eurex are expanding the offering of futures on emission rights. Pending approval of the EEX Exchange Council, the new futures will be launched as of 27 October 2009. The partners will be offering new EUA and CER futures with a different maturity and delivery date, in addition to the contracts already offered.
http://www.eex.com/en/Press%20Room/Press%20Release/press/53692

EU lists industries exempted from carbon trading
Experts from the 27-member bloc agreed on a list of industries ranging from plastics manufacturing to iron and food processing that will be largely exempted from CO2 trading after 2013 for fears that their inclusion would move production abroad.
http://www.euractiv.com/en/climate-change/eu-lists-industries-exempted-carbon-trading/article-185632?Ref=RSS

China To Launch Impressive CO2 Policies -De Boer
By Mark Peters and Ian Talley Of DOW JONES NEWSWIRES
NEW YORK -(Dow Jones)- The top United Nations climate official said Monday China is poised to unveil on Tuesday new policies to fight climate change that could help international negotiations ahead of a critical meeting in December. Yvo de Boer, executive secretary of the U.N. Framework Convention on Climate Change, said he has been told that Chinese officials will present a series of new policies on transportation, industrial efficiency, renewable energy and other areas.
http://www.easybourse.com/bourse/actualite-financiere/2nd-update-china-to-launch-impressive-co2-policies-de-boer-734614

China expected to unveil carbon trading plan
Chinese officials to outline proposals for national cap-and-trade scheme in latest effort to break Copenhagen deadlock
James Murray, BusinessGreen, 21 Sep 2009
Chinese officials attending this week’s UN climate change conference in New York are expected to outline proposals for its own national emissions trading scheme, as governments step up efforts to restart the stalled Copenhagen negotiations.
Airline industry plans 50% cut in emissions
BA chief to unveil initiative at UN forum
http://www.ft.com/cms/s/0/c65d6346-a75f-11de-9467-00144feabdc0.html

Airlines vow to cut carbon output by 2050: report
LONDON (AFP) – The aviation industry is set to make a dramatic pledge to slash carbon dioxide emissions in half by 2050, as key climate change talks get underway at the United Nations, a report said.
http://news.yahoo.com/s/afp/20090922/sc_afp/undiplomacyclimatewarmingaviation_20090922014359

SOCIALCARBON Credits Help the World Bank Group Go Carbon Neutral for Its Internal Operations
http://www.reuters.com/article/pressRelease/idUS109612+21-Sep-2009+BW20090921

Carbon policy ‘too important for govt’
Carbon reduction policy will bring sweeping change to the economy and is too important to be held to the prime minister’s November timetable, acting Opposition Leader Julie Bishop says.
http://www.skynews.com.au/politics/article.aspx?id=375225

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

Exchange & ECN News
Exchanges: BM&F Bovespa feels fee pressure
http://www.euromoney.com/Article/2296380/CurrentIssue/73085/Exchanges-BM-F-Bovespa-feels-fee-pressure.html

Ballista Appoints Christine Bookmyer as Vice President, Account Management
http://finance.yahoo.com/news/Ballista-Appoints-Christine-bw-3848973778.html?x=0&.v=1

Chi-X Canada Direct ATS Data Feed Now Connected To Bloomberg
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=85441

RTS Derivatives Market Turns 8
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=85430

COMEX Trade Correction Procedures
http://www.cmegroup.com/tools-information/lookups/advisories/clearing/Chadv09407.html

RBA Assessment of ASX’s Clearing & Settlement Facilities
http://www.asx.com.au/about/pdf/mr_220909_asx_response_rba_assessment_cs_09.pdf

Puda Coal Celebrates First Day of Trading on NYSE Amex
http://www.nyse.com/press/1253614197355.html

ICE Futures Canada: Delivery Month Reminders For October 2009 Contracts
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=85446

Banks, Brokers & Dark Pools

Bank of America to Pay for Merrill Guarantees as SEC to Sue Over Bonuses
Bank of America Corp., the biggest U.S. bank, said it will pay the government $425 million to cancel an unused guarantee of Merrill Lynch & Co.’s assets and cut reliance on federal support after two bailouts.
http://www.bloomberg.com/apps/news?pid=20601087&sid=ac1jAfbVCUSw

BofA to end $118 bln asset-guarantee deal
* Will pay $425 million exit fee
* Facility was to back-stop against losses in Merrill deal
* Bank also exits bank debt guarantee program (Adds comments, background, subheads, story link)
By Joe Rauch
NEW YORK, Sept 21 (Reuters) – Bank of America Corp (BAC.N) will pay $425 million to end a program to share losses on bad assets and derivatives with the United States, the bank said, marking its latest effort to extract itself from its fraught relationship with the government.
http://www.reuters.com/article/marketsNews/idUSN2132114220090922

UBS to tell Americans if they are on IRS list
BERN, Switzerland (AP) — Swiss bank UBS AG said Tuesday it will inform American clients whether their bank accounts are among the 4,450 that will be revealed to the U.S. Justice Department in a tax evasion investigation.
http://finance.yahoo.com/news/UBS-to-tell-Americans-if-they-apf-317751636.html?x=0&.v=1

Citi, UBS, Deutsche Bank fined over Vonage IPO
A U.S. regulator ordered Citigroup Inc, UBS AG and Deutsche Bank AG to pay up to $845,000 in fines and restitution because of communications breakdowns related to the 2006 initial public offering of Vonage Holdings Corp.
http://tech.yahoo.com/news/nm/20090922/wr_nm/us_finra_vonage_fines_1

How the Financial Crisis Reshaped Morgan Stanley
By Stephen Gandel
Two and a half years ago, at Morgan Stanley’s annual meeting, CEO John Mack fielded a question from a worried investor. Mack’s firm had had a good 2006 and early 2007, but the questioner was concerned that much of the new profits seemed to be coming from increased borrowing and bets the bank was making with its own capital. Mack answered defiantly.
http://www.time.com/time/business/article/0,8599,1925193,00.html

U.S. Banks Will Need More Capital to Cover Credit Losses, CLSA’s Mayo Says
U.S. bank shares are set to drop because loans made for commercial real estate will sour and lenders will need to raise more capital to cover credit losses, according to Mike Mayo, an analyst at CLSA Ltd.
http://www.bloomberg.com/apps/news?pid=20601083&sid=ajkyAkGU0vBE

HSBC chairman Stephen Green pushes for banking reform despite economic recovery
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/6215982/HSBC-chairman-Stephen-Green-pushes-for-banking-reform-despite-economic-recovery.html

Goldman Sachs’s Third-Quarter EPS Estimate Raised 28% at FBR
By Christine Harper
Sept. 22 (Bloomberg) — Goldman Sachs Group Inc.’s third- quarter earnings per share estimate was raised 28 percent by FBR Capital Markets analysts, who said they expect the New York- based bank to continue achieving high returns on assets.
http://www.bloomberg.com/apps/news?pid=20601087&sid=a8jdEknFUb9A

Deutsche Bank hires Egan back from Och-Ziff
By Alistair Barr, MarketWatch
SAN FRANCISCO (MarketWatch) — Deutsche Bank said Tuesday that it hired John Egan back from hedge fund firm Och-Ziff Capital Management Group to lead a new securities-lending group for the German bank.
http://www.marketwatch.com/story/deutsche-bank-hires-egan-back-from-och-ziff-2009-09-22?siteid=rss&rss=1

Wall Street’s Key Hirings
Banks Bet on Asian Hedge Funds, European Start-Ups
http://online.wsj.com/article/SB125356332993628807.html

Deutsche Bank Spy Saga Deepens
Deutsche Bank’s chairman knew more about the bank’s 2006 effort to spy on a shareholder
http://online.wsj.com/article/SB125356686762028947.html#mod=WSJ_hps_LEFTWhatsNews

HSBC staff carrying personal alarms in case credit crunch customers get angry
By Sean Poulter
HSBC staff have been issued with the latest hi-tech personal alarms to call for help if customers get upset or angry.
http://www.dailymail.co.uk/news/article-1215316/HSBC-staff-carrying-personal-alarms-case-credit-crunch-customers-angry.html?ITO=1490

Our clearing house is in order, says Reserve
ERIC JOHNSTON
AS MANY as 15 brokerages were placed on an alert watchlist by the nation’s equities and futures clearing house at the height of market volatility over the past year, amid concerns a squeeze in liquidity would hurt the smooth running of the Australian sharemarket.
http://www.smh.com.au/business/our-clearing-house-is-in-order-says-reserve-20090922-g0kj.html

Two AXA Equitable IT Execs Elected to SVP
Leann Bohner, a senior information officer, and Michael Healy, an operations officer, are among four executives recognized.
http://www.financetech.com/feed/showArticle.jhtml?articleID=220100503&cid=RSSfeed_FTN_All

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/2009/dig092209.htm

SEC Vows to `Vigorously’ Sue Bank of America on Bonuses, May Expand Claims
The U.S. Securities and Exchange Commission will press its case that Bank of America Corp. misled investors, and said additional claims may be added, after a judge rejected a $33 million settlement with the company.
http://www.bloomberg.com/apps/news?pid=20601127&sid=aUyPWVgaclkM

Bank of America may face new charges over Merrill bonuses
NEW YORK (AFP) – US regulators said Tuesday they could slap new charges against Bank of America over billions of dollars in bonuses paid to Merrill Lynch executives just before it took over the troubled firm last year.
http://news.yahoo.com/s/afp/20090922/ts_alt_afp/usbankingcourtregulatecompanybofatakeovermerrill_20090922151945

Bank of America to Pay $425 Million for Merrill Aid (Update1)
By Margaret Popper and David Mildenberg
Sept. 22 (Bloomberg) — Bank of America Corp., seeking to reduce its need for federal support after two bailouts, will pay $425 million to cancel an unused government guarantee of Merrill Lynch & Co.’s assets.
http://www.bloomberg.com/apps/news?pid=20601208&sid=a2c5hYE7Uv.Y

Madoff, Stanford Internal Reports May Be Released by Brokerage Regulator
The U.S. brokerage regulator’s board is debating whether to release an internal report of its examinations of firms run by Bernard Madoff and R. Allen Stanford, according to people familiar with the matter.
http://www.bloomberg.com/apps/news?pid=20601014&sid=aDh74.jjrLfc

SEC Charges Regions Bank for Role in Offering Fraud Harming Latin American Investors
Washington, D.C., Sept. 21, 2009 — The Securities and Exchange Commission today charged Alabama-based Regions Bank for its role in an offering fraud that victimized thousands of investors predominantly in Latin America.
http://www.sec.gov/news/press/2009/2009-202.htm

Dem donor in ‘Ponzi’ bust
By Andy Soltis
Democratic donor Hassan Nemazee has been indicted for running a “$292 million Ponzi scheme,” federal prosecutors announced yesterday. Nemazee, who raised big bucks for President Obama and Hillary Rodham Clinton last year, defrauded Citibank, Bank of America and HSBC by using forged documents to obtain loans, the feds said. The alleged scam lasted from 1998 until his arrest in August.
http://www.nypost.com/p/news/local/manhattan/dem_donor_in_ponzi_bust_3qXTaS4D5odWJpG3BZmNeM

FINRA Fines Citigroup Global Markets, UBS and Deutsche Bank $425,000, Orders Customer Restitution for Supervisory Failures in Vonage IPO
WASHINGTON–(BUSINESS WIRE)–The Financial Industry Regulatory Authority (FINRA) announced today that it has fined Citigroup Global Markets, UBS Securities and Deutsche Bank Securities a total of $425,000 – and ordered the firms to make payments to customers that could total $420,000 – in connection with the firms’ failure to adequately supervise communications with their customers in the initial public offering (IPO) of Vonage, LLC in May 2006.
http://finance.yahoo.com/news/FINRA-Fines-Citigroup-Global-bw-2597294385.html?x=0&.v=1

Effective Date of NFA Requirements Prohibiting Loans by Commodity Pools to CPOs and Related Entities
NFA has received notice that the Commodity Futures Trading Commission (“CFTC”) has approved new NFA Compliance Rule 2-45. This Rule and its accompanying Interpretive Notice, which both became effective September 11, 2009, prohibit commodity pools from making direct or indirect loans or advances of pool assets to the CPO or any other affiliated person or entity.
http://www.nfa.futures.org/news/newsNotice.asp?ArticleID=2359

ASIC winds up Western Australian funds management company
On 22 September 2009, ASIC obtained orders from the Federal Court in Perth to wind up Finchley Central Funds Management Limited (Finchley).
http://www.asic.gov.au/ASIC/asic.nsf/byHeadline/09-180AD%20ASIC%20winds%20up%20Western%20Australian%20funds%20management%20company?opendocument

[SEBI] Order in the matter of KLG Capital Services Limited
http://www.sebi.gov.in/press/2009/3012009.html

SEBI Board Meeting
http://www.sebi.gov.in/press/2009/2009300.html

Investments – Indexes – Managed Futures – Managed Funds

Amaranth Advisors Sues Touradji, Seeking at Least $350 Million Over Trades
Amaranth Advisors LLC, the hedge fund that lost $6.6 billion three years ago this month, sued Paul Touradji and his employees, seeking at least $350 million for claims including breach of contract and misappropriation of trade secrets.
http://www.bloomberg.com/apps/news?pid=20601014&sid=aPfcV7AX8S0Y

Vicis Capital Suspends Investors’ Redemptions After Hedge Fund Loses 12%
Vicis Capital LLC, the $2.9 billion hedge fund started by former Lehman Brothers Holdings Inc. trader John Succo in 2004, barred clients from withdrawing money from its main fund after losses this year.
http://www.bloomberg.com/apps/news?pid=20601014&sid=aG0s0wa_2z1o

FTSE, Record Currency Management Launch Indices
Global index provider FTSE Group and Record Currency Management, the specialist currency investment manager, have launched the first set of indices within the new FTSE Currency Forward Rate Bias (FRB) Index Series, allowing investors to access this alternative beta within FTSE’s range of alternative indices.
http://www.securitiesindustry.com/news/-23985-1.html

Bullish Signs From the Hedge Fund Crowd?
As Wall Street takes stock of its post-crisis appetite for risk, here’s an interesting data point, courtesy of Forbes.com’s Streetwise column.
http://dealbook.blogs.nytimes.com/2009/09/22/bullish-signs-from-the-hedge-fund-crowd/

Corzine calls hedge fund flap ‘ludicrous’
BY JOSH MARGOLINAND CLAIRE HEININGER
Governor Corzine on Monday said he never considered withdrawing his stake in a private hedge fund when the fund’s founder bought four New Jersey casinos, even as Republicans racheted up their criticism of the investment.
http://www.northjersey.com/news/Corzine_calls_hedge_fund_flap_ludicrous.html

Hedge fund sells part of its New York Times stock
Harbinger Capital Partners LLC says it has sold part of its 20 percent stake in The New York Times Co., but still considers the company a core holding.
http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2009/09/22/financial/f073308D99.DTL

Hedge Funds Make Babcock & Brown Infrastructure Offer (Update1)
By Sarah McDonald
Sept. 22 (Bloomberg) — Royal Bank of Scotland Plc is managing an offer by a group of hedge funds to refinance debt held by Babcock & Brown Infrastructure Group Ltd., an energy and transport investor whose shares tumbled 97 percent in two years.
http://www.bloomberg.com/apps/news?pid=20601080&sid=apZ6fXUXnZQY

Vicis Capital Bars Withdrawals After Losses
Vicis Capital the $2.9 billion hedge fund started by former Lehman Brothers trader John Succo in 2004, barred clients from withdrawing money from its main fund after losses this year.
http://dealbook.blogs.nytimes.com/2009/09/22/vicis-capital-barrs-withdrawls-after-hedge-fund-drops-by-12/

NASDAQ OMX and Clean Edge Introduce the NASDAQ OMX(R) Clean Edge(R) Smart Grid Infrastructure Index
http://bit.ly/14mJfv

Warsaw Stock Exchange: Quarterly Changes In Indices Portfolios
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=85437

Ten New EasyETFs Launched On Xetra
BNP Paribas Asset Management has listed ten new EasyETFs in the XTF segment on Xetra®. The new EasyETFs enable investors not only to replicate the performance of companies from Europe, the euro zone and the USA but also to invest in the euro money market.
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=85428

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

Bursa Malaysia’s Palm-Oil Trading to Double With CME
Sept. 22 (Bloomberg) — Bursa Malaysia Bhd., operator of the nation’s stock exchange, said it expects the volume of palm- oil futures trading to more than double in the next two to three years following a stake sale and tie up with CME Group Inc.
http://www.bloomberg.com/apps/news?pid=20601087&sid=a52m6T_OAsE4

CME Advising China on Stock Futures Trading, Sees Market Starting in 2010
China may allow trading in equity futures by next year, said Leo Melamed, chairman emeritus of CME Group Inc., the world’s biggest futures exchange.
http://www.bloomberg.com/apps/news?pid=20601013&sid=a5WbELAfFY.c

GIC makes $1.6bn from Citi stake sale
Singapore fund halves holding to below 5%
http://www.ft.com/cms/s/0/b8479e9a-a75d-11de-9467-00144feabdc0.html

Singapore Investment Fund Cuts Citigroup Stake, Realizes $1.6 Billion Gain
The Singapore government pared its stake in Citigroup Inc. to less than 5 percent, realizing a $1.6 billion profit as the city-state’s investment companies reduce holdings in European and U.S. banks.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aalfuzelYF94

Singapore cuts ownership stake in Citigroup
By STEPHEN BERNARD
NEW YORK – A Singapore sovereign wealth fund cut its stake in Citigroup Inc. to below 5 percent from 9 percent on Tuesday, reducing its ownership to the level planned before a recent debt exchange.
http://news.yahoo.com/s/ap/20090922/ap_on_bi_ge/us_citigroup_singapore_1

SICOM And Sino Rubber Sign MOU To Enhance Rubber Trading
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=85447

Frontier Markets

Jute futures may be banned from Nov
After suspending futures trading in sugar from May 26 till December this year, the Forward Markets Commission (FMC) is mulling a similar ban on jute from November, according to industry officials.
http://www.business-standard.com/india/news/jute-futures-may-be-bannednov/370842/

Mad rush to cover short-positions puts futures traders in a corner
MUMBAI: The frantic covering of short positions in the Nifty futures on every slight dip or even an indication of weakness of late, averting any major fall, has foxed many market participants. This is especially when charts are pointing to an ‘overbought’ position and stock valuations are considered rich.
http://economictimes.indiatimes.com/Analysis/Mad-rush-to-cover-short-positions-puts-futures-traders-in-a-corner/articleshow/5040304.cms

NCDEX suspends trading hours due to sun outage
New Delhi, Sep 22 (PTI) The National Commodity and Derivatives Exchange Ltd will suspend trading for 40 minutes during the period between September 22 and October 9 on account of disruption in satellite services due to sun outage.
http://www.ptinews.com/news/294054_NCDEX-extends-trading-hours-due-to-sun-outage

Kuwait’s Al Ahli Bank files $125mn suit vs al-Sanea and Saad
Al Ahli Bank of Kuwait, the country’s fourth biggest listed lender by market value, has filed a complaint against Saudi billionaire Maan al-Sanea and Saad Trading, Contracting and Financial Services Co seeking $125mn in compensation for alleged breach of contract and fraud, according to documents seen by Zawya Dow Jones.
http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=315915&version=1&template_id=48&parent_id=28

India ‘Waking Up’ to Extended Period of High Growth, UBS Says
By Kartik Goyal
Sept. 22 (Bloomberg) — India may be “waking up” to an extended period of high-trend economic expansion that will cause incomes to triple over the next decade, according to UBS AG.
http://www.bloomberg.com/apps/news?pid=20601091&sid=acf_cNuzgITE

Miscellaneous News

Samsung Securities goes live with Fidessa’s Asian trading platform »
http://www.fidessa.com/newsandevents/sellside/archive/article_20090922.asp

Pragma rolls out ONEPIPE 2.0
Douglas Rivelli, CEO, Pragma Securities: “The new ONEPIPE allows traders to employ the trading style that will best meet their particular objectives, controlling both the mix of liquidity destinations and their level of urgency in accessing the market.” Pragma Securities, the provider of quantitative trading solutions, has introduced ONEPIPE 2.0, an enhanced version of its liquidity aggregation and intelligent market access execution service. The next-generation of ONEPIPE unites over 40…
http://www.automatedtrader.net/news/dark-pools-news/17606/pragma-rolls-out-onepipe-20

New Jersey Nets to join First Annual Event to Fight Incurable Pediatric Disease

NEW YORK, September 21, 2009 – On October 1st, The First Annual Capstone Global Markets Charity Day will support research focused on finding a cure to Batten Disease, a rare but fatal neurodegenerative disorder affecting children. The boutique derivatives broker dealer has committed to donating 100% of its net commissions that day to The Jasper Against Batten Fund. The newly created annual event is part of Capstone’s commitment to giving back to the global community regardless of the macro financial environment. Every year, Capstone Global

Markets will select specific charities to donate to, each with the common goal of helping children.

Jasper Duinstra is a 4-year old boy who was diagnosed with Batten Disease in March 2009, and has subsequently been experiencing seizures, deteriorating vision, limited vocabulary and paralysis in his legs. After the urgency of finding a cure for Batten Disease was brought to the attention of representatives of The New Jersey Nets, the basketball team committed to joining Capstone Global Markets on October 1st to raise money for the cause. The New Jersey Nets’ involvement at the fundraiser will be highlighted by the participation of Nets president Rod Thorn, general manager (and former New York Knicks player) Kiki Vandeweghe, the Nets dance team and the Nets mascot. Each will be involved in thanking clients for their business and discussing the importance of the cause.

“We created this event to bring public awareness of this devastating disease and the urgency of Jasper’s need for support,” said Paul Britton, CEO of Capstone Holdings Group, LLC. “We are pleased with the enthusiasm from our clients to join us in this mission to help Jasper and other children affected by Batten Disease. Capstone Global Markets is committed to helping charities dedicated to helping children.”

Batten Disease is a rare, fatal autosomal recessive inherited disease of the nervous system that begins in childhood. Symptoms of the disorder usually appear around ages 4-10, with the onset of a series of degenerative symptoms including seizures, vision impairment, deteriorating mental acuity and declining motor skills. Today, Batten

Disease is always fatal. However, researchers are engaged. Scientists at Cornell University in New York are working on a gene therapy that offers hope, but funding is acute.

Jasper Against Batten Fund has teamed up with Partnership for Cures, a charitable non-profit 501(c)3 foundation. All donations are tax deductible. For more information, please visit www.jasperagainstbatten.org.

“There is significant momentum already toward finding a cure for Batten Disease,” concluded Mr. Britton. “Our hope is that Capstone Global Markets’ donation will help fund the research that will enable so many families to find a better tomorrow with their kids.”

About Capstone Global Markets, LLC

Capstone Global Markets, LLC is an affiliate of Capstone Holdings Group, LLC. Capstone Global Markets is a boutique broker dealer specializing in volatility trading strategies. The firm trades across equities, commodities, currencies, credit and fixed income markets. Capstone Global Markets provides institutional clients with access to markets in the U.S. and has a U.K. affiliate that provides access to markets in Europe. The firm’s platform is based on cutting-edge technology, dynamic volatility analysis and trading strategies, and an investment in distinguished human capital.

By John Lothian

“The time has come to ease the burden on our prosecutors, and to better protect consumers and markets” CFTC Commissioner Bart Chilton

In a speech before the Institutional Investors Carbon Forum here today, Commissioner Bart Chilton of the Commodity Futures Trading Commission called for a unprecedented change in the legal standard required to prove manipulation cases in commodity futures cases. Chilton, citing the high burdens on prosecutors and the resulting dismal record of successful manipulation cases, called for a shift to an “easier to prove” legal standard. In support of his position, Chilton cited the fact that, in its 35-year history, the CFTC has successfully prosecuted and won only one manipulation case, which is currently on appeal in federal court.