Observations – Statistics – Commentary
Infighting Besets Financial-Oversight Council
Treasury Email on FDIC Securitization Policy Underscores Hurdles to Cohesion; Can Independent Agencies Work Together?
By DAMIAN PALETTA
WASHINGTON-Some of the country’s top financial regulators are clashing over turf just days before a crucial meeting designed to kick off a new oversight council, a centerpiece of the financial-regulation bill, according to people familiar with the matter.
**** Has anyone sent them “Committee Decision Making for Dummies” yet?
Oversight panel to tackle systemic-risk task
By Ronald D. Orol, MarketWatch
WASHINGTON (MarketWatch) – The Financial Stability Oversight Council is poised to begin the process of identifying institutions that could pose a risk to the financial system and should be subject to expanded supervision by the Federal Reserve, a key Obama administration official said Thursday.
**** You don’t eliminate risk, you manage it. Not sure what tackling it is, other than a bad sports metaphor.
Goldman’s New Ads: Healing the Damage from ‘God’s Work’?
Wall Street Journal Blogs
Goldman Sachs rolled out a new ad campaign after a year of blows to its public image. A brand expert says Goldman is “trying to show that its shedding the arrogance.”
Goldman in ad blitz to repair reputation
By Francesco Guerrera and Greg Farrell in New York
FT.com / Companies / Banks
Goldman Sachs on Wednesday launched the biggest advertising campaign in its history in an attempt to improve its reputation with the US public by highlighting its role in job creation and economic growth.
Goldman Sachs Will Win America Over With Newspaper Ads
The New York Observer
To combat its image as a hive of profit-hungry, ethically challenged brainiacs, Goldman Sachs is kicking off a national advertising campaign today. The PR push includes full-page ads in today’s New York Times and Wall Street Journal . As the campaign continues into 2011, Goldman will buy ads in other national, regional and local newspapers and put banner ads on Web sites. So far, the ads …
**** It is not true Goldman is pumping estrogen in the office water to make employees kinder and gentler.
Blankfein Says Clearinghouses May Increase Risks in Crisis
By Elena Logutenkova and Fabio Benedetti-Valentini
Lloyd Blankfein, Goldman Sachs Group Inc.’s chairman and chief executive officer, said using clearinghouses increase risks in an “extreme” crisis. “I agree that clearinghouses make things less risky for the regular crisis, but in an extreme crisis that could affect the clearinghouse itself” and it’s “dramatically more risky,” Blankfein said at a finance and regulation conference in Brussels today. “We have to make sure that something that we do to reduce the risk in a once-in-a-20-year storm doesn’t increase the risk in a once-in-a-50-year storm.”
*** It is way to late for that. Clearing Houses are the cure for everything according to Congress.
High Frequency Trading as a Cyber-War Weapon
By Roderick Jones
As the SEC and the Commodity Futures Trading Commission prepares to jointly produce its long-awaited report on the “flash crash” of May 6th it is worth considering some of the security risks that are attached to the practice of High Frequency Trading.
**** It is not high frequency trading that would be the risk, rather high frequency quoting of irrelevant prices.
Green Exchange And CME Set Date For Contract Migration To Green Exchange Designated Contract Market (DCM)
Green Exchange LLC (“GreenX”) today announced the date for the migration of the environmental suite of products currently listed and traded on the New York Mercantile Exchange, Inc. (“NYMEX”) Designated Contract Market (DCM) to the GreenX DCM.
**** GreenX sounds like something to get stains out.
US CFTC seeks comments on precious metals ETFs
* CFTC considers how to regulate precious ETFs in future
* Should platinum, palladium ETF options have same rules?
NEW YORK, Sept 29 (Reuters) – The Commodity Futures Trading Commission said on Wednesday it is soliciting comments in the next 30 days about how it regulates trading of precious metal-based exchange traded funds (ETFs). The U.S. futures regulator said in a Federal Register notice on Wednesday it is trying to determine whether options and futures of platinum and palladium ETFs should be regulated like those of gold and silver ETFs.
**** PGM ETFs don’t sound like a good idea to me.
Gold as the “ultimate bubble”
Billionaire financier George Soros this month repeated his warning gold is locked in the “ultimate bubble”, and told investors bluntly it was “certainly not safe” in troubled times. Soros was simply repeating a warning he issued at the World Economic Forum (WEF) back in February. At the time gold was trading at less than $1,150 per ounce. It has since risen to touch $1,300 this week, and is up more than 400 percent from its low of $252 in 1999. There is no end in sight for the bull run. Anyone who shorted gold back in February would be sitting on huge losses.
**** The first book I was recommend to read about the markets was “Extraordinary Popular Delusions and the Madness of Crowds.” This would seem to be the perfect time to re-read this.
CME Group Names Alice Hackett As Managing Director, Global Client Development & Sales
Martin Koopman is now Head of Strategy – NYSE Technologies at NYSE Euronext
CME Group: An Overview of On-The-Run U.S. Treasury Futures: Concepts and Opportunities
Thursday, October 14, 2010
3:00 p.m., CT
The introduction of On-The-Run (OTR) U.S. Treasury Futures on October 25, 2010 will provide the marketplace with a tool for gaining direct and capital-efficient exposure to on-the-run Treasury yields-the most liquid points on the Treasury yield curve. 2-Year, 5-Year, and 10-Year OTR Treasury futures allow market participants to gain synthetic exposure to the Treasury cash market, but with the added benefit of cross-margining with other interest rate products at CME Group exchanges. These contracts will also add an array of intriguing new spread trading strategies with cash securities, Eurodollar, Interest Rate Swap, and traditional Treasury futures, as well as OTR yield curve spreads. This webinar will examine the key aspects of OTR Treasury futures, including contract design, pricing and settlement, and trading strategies.
* OTR U.S. Treasury Futures Overview
* Product Characteristics
* Listing Cycle
* Pricing Implications
* Settlement Procedures
* Trading Applications
* Spreading Strategies
James Boudreault, Associate Director, Financial Research and Product Development
John Brosnan, Head of U.S. Yield Curve Trading
Special introduction by John Dempsey, international business development expert.
Please RSVP by paying a $20 reservation fee securely through PayPal. Space is limited. Please register by October 20.
MarketsWiki Page of the Day
Jeffrey M. Christian
MarketsWiki Recent Updates
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Companies, Organizations and Groups
6,490,478 pages viewed, 5,642 articles, 101,828 edits
CFTC Swaps Proposal May Force Ownership Changes at LCH.Clearnet, Tradeweb
By Matthew Leising
LCH.Clearnet Ltd., Tradeweb Markets LLC, NYSE Euronext and other companies may be forced to change their ownership structure under proposed rules by the Commodity Futures Trading Commission.
**** I don’t get this. They are weakening clearing houses at the same time they are filling them with more risk.
CFTC May Limit Banks to 20% Stakes for Clearinghouses
By Matthew Leising
The Commodity Futures Trading Commission is considering limiting banks and investors to owning no more than 20 percent of swaps clearinghouses, exchanges and trading systems, three people familiar with the matter said.
CFTC eyes ownership caps for swaps infrastructure
* Will propose plan Fri to prevent conflicts of interest
* May limit ownership of banks, other major players
* Eyeing 20 pct cap for stakes in exchanges, SEFs
* Two ownership limit options in play for clearinghouses
* Concerns caps to hurt investment in new infrastructure
By Jonathan Spicer and Roberta Rampton
NEW YORK/WASHINGTON, Sept 29 (Reuters) – The U.S. futures regulator is leaning toward proposing ownership caps for banks and other major players in swaps markets who have stakes in exchanges, swap execution facilities, and clearinghouses, two sources said on Wednesday.
Gensler To Offer Details On Likely Swap Dealers Under New Law
By Sarah N. Lynch Of DOW JONES NEWSWIRES
WASHINGTON -(Dow Jones)- The chairman of the Commodity Futures Trading Commission on Thursday will offer the most detailed breakdown yet on the kinds of firms that may face new regulations as swap dealers under the Dodd-Frank financial law.
Interactive Brokers Reconsidering Market-Making Role – CEO
By Jacob Bunge Of DOW JONES NEWSWIRES
The head of Interactive Brokers Group Inc. (IBKR) said that his firm’s market-making unit may withdraw from some options markets or even convert into a high-frequency trading firm because of what the company views as an unfair regulatory regime.
Spanish MTF PAVE takes first steps
Plataforma Alternativa de Valores Españoles (PAVE), the Spanish multilateral trading facility (MTF), has chosen Equiduct Systems as its technology provider, with two of Equiduct’s shareholders, Knight Capital and Citadel Securities, selected to be market makers for the trading venue.
The Trade News
Equiduct Systems Limited To Be Technology Provider For Spain’s First MTF, PAVE – Letter Of Intent Signed Today
Equiduct Systems Limited has been chosen as the technology provider to PAVE, Plataforma Alternativa de Valores Españoles, Spain’s first MTF. Using Equiduct Systems Limited’s technology, PAVE will establish both a traditional MTF and a retail-focused best execution model supported by experienced market makers.
Regulators May Release Final Flash Crash Report Today
Top U.S. market regulators are finalizing the hugely anticipated “flash crash” report after debating whether to name Waddell & Reed Financial Inc as having played a role in the May market plunge, a source said.
* Report said slowed by debate on whether to name firm
* Waddell & Reed not expected to be named says one source
* Report may come as soon as Today
WASHINGTON/NEW YORK – Top U.S. market regulators are finalizing the hugely anticipated “flash crash” report after debating whether to name Waddell & Reed Financial Inc as having played a role in the May market plunge, a source said Wednesday.
TARP Bailout Plan May Cost Less Than One-Tenth Initial Estimate
By Rebecca Christie
Sept. 30 (Bloomberg) — Bailed-out banks, insurers, and automakers are a sore spot for millions of Americans hit hard by the financial crisis. Candidates running in November, especially those waving the Tea Party banner, are using “no more bailouts” as their mantra to attract voters. Yet there’s a disconnect between the political rhetoric and the facts on the ground.
France Said to Block E.U. Hedge Fund Rules
New York Times
France’s finance minister, Christine Lagarde, is set to dash hopes of an imminent deal on E.U. hedge fund rules when she meets finance ministers in Brussels this week, Reuters reported , citing sources with direct knowledge of the matter.
France threatens to veto EU hedge fund legislation
The consensus on new controls for hedge funds has been blown apart as French officials threaten to veto EU legislation in a move that risked isolating the UK.
Will hedge funds meet their Waterloo?
And so it has come to this. Following a last-minute surprise-attack by the French at the weekend, the UK has a fight on its hands if it wants to defend Europeans’ right to invest in US hedge funds.
Eastday-U.S. House of Representatives passes bill on foreign currency
The U.S. House of Representatives on Wednesday passed the proposed Currency Reform for Fair Trade Act, to allow the United States to seek trade sanctions against its trade partners for allegedly manipulating their currency, a new move of the nation’s rising trade protectionism.
US House passes bill targeting China currency
by Olivier Knox
WASHINGTON (AFP) – US lawmakers overwhelmingly approved a bill Wednesday to punish China for what they branded its unfairly undervalued currency, blaming the weak yuan for killing US jobs weeks before key elections.
US Congress backs action on renminbi
Beijing says legislation violates WTO rules
IMF boss sees low risk of ‘currency war’
by Hugues Honore and Andrew Beatty
WASHINGTON (AFP) – The risk of a global currency war is “low” but cannot be ruled out, IMF managing director Dominique Strauss-Kahn said on Tuesday, following a spate of currency interventions.
Treasury to probe high-frequency trading
By Jeremy Grant
FT.com / UK / Politics & policy
The UK Treasury has commissioned a study into the practice in markets of ultra-fast automated trading because of concerns that a computer-generated error could have “significant impact” on the economy.
High-frequency trading investigation
High-frequency trading investigation LONDON (SHARECAST) – The Treasury has commissioned a study into high-frequency trading following last May’s 1,000 point slump in the Dow Jones after a computer error.
Will Dodd-Frank Help High Frequency Traders Crash The Bond Market Too?
By: John Carney
Senior Editor, CNBC.com
Lawmakers may have unintentionally opened the bond-market up to high frequency traders by passing controversial derivatives-clearing requirements as part of the Dodd-Frank financial reform bill.
Bank Regulators to Give Dodd-Frank Progress Report Amid Rulemaking Delays
U.S. lawmakers summoned banking watchdogs to Capitol Hill today for the first progress report on implementing July’s financial-regulatory overhaul, amid reports that deadlines may be missed and rules postponed.
Regulators start putting Volcker rule in place
By Dave Clarke and Rachelle Younglai
WASHINGTON (Reuters) – U.S. regulators will begin tackling two of the most contentious parts of financial reform this week as they try to convince lawmakers they can police Wall Street and prevent another financial crisis.
Minimum Thresholds For Swaps Urged In US Rulemaking
By Katy Burne Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)–A large regional bank last week wrote to U.S. regulators suggesting that new rules being crafted for the privately negotiated derivatives market include a threshold, below which certain users would not be burdened by the law. The letter came in response to a call for comments on key terms in the newly passed Dodd-Frank Wall Street Reform and Consumer Protection Act.
Timeline: Long road to implement U.S. financial reforms
(Reuters) – The landmark U.S. financial reform law will take years to implement, with hundreds of new rules to be written and dozens of authorities transferred among agencies, some of which must be created from scratch.
ECB chief warns Europe to stick with financial reforms
FRANKFURT (AFP) – European Central Bank president Jean-Claude Trichet urged politicians and financial market actors on Wednesday to stay the course and push for reforms to avoid future crises.
Congress funding fight may delay Wall Street reforms
By Andy Sullivan and Roberta Rampton
WASHINGTON (Reuters) – The Obama administration may have to wait several months to begin enforcing parts of the landmark Dodd-Frank financial reform law because Congress has delayed funds necessary for its implementation.
Special Report: The ties that bind at the Federal Reserve
By Kristina Cooke, Pedro da Costa and Emily Flitter
NEW YORK/WASHINGTON (Reuters) – To the outside world, the Federal Reserve is an impenetrable fortress. But former employees and big investors are privy to some of its secrets — and that access can be lucrative. On August 19, just nine days after the U.S. central bank surprised financial markets by deciding to buy more bonds to support a flagging economy, former Fed governor Larry Meyer sent a note to clients of his consulting firm with a breakdown of the policy-setting meeting.
Senate Confirms Yellen, Bloom Raskin as Fed Board Members
By COREY BOLES
WASHINGTON — The U.S. Senate unanimously confirmed two of the three outstanding Federal Reserve Board governor nominees on Wednesday night, filling key slots on the central bank’s board.
Environmental Trading News
Traders Say Uncertainty Over CERs Is ‘Unsustainable’
By Ewa Krukowska
“Complete regulatory uncertainty” over the use of United Nations carbon offsets from 2013 in the European Union is unsustainable, the European Federation of Energy Traders said today. The EU is considering quality restrictions on carbon credits from projects that cut industrial gases, including hydrofluorocarbon-23. UN Certified Emission Reduction credits, awarded on projects that lower emissions in developing nations, can now be swapped one-for-one with permits in the EU cap-and- trade program, the world’s largest. Emitters can also use for compliance another type of UN-sponsored credits, called Emission Reduction Units.
European Union Cap-and-Trade Hasn’t Given Price Signal, Investor Poll Says
The European Union’s carbon trading system hasn’t provided the needed long-term price signal for investors to switch away from carbon-intensive technologies, the Institutional Investors Group on Climate Change said.
Conditions for China to launch emission rights trading scheme premature: official
A senior official of China’s top economic planning body said Wednesday that conditions for the country to launch a carbon emission rights trading system remain premature.
Agriculture ETS Advisory Committee announced
Agriculture Minister David Carter has appointed an eight-member strong Agriculture Emissions Trading Scheme Advisory Committee.
Fund to ease carbon cost
Small businesses and community organisations will have access to a $1.4 billion fund to help them cut their energy use and avoid the brunt of price increases to be caused by Australia’s emissions trading scheme.
UBS Launches Renewable Energy Banking Group
Wall Street Journal Blogs
UBS is launching a group devoted to capital raising and deal advice for the renewable energy and clean technology sectors, according to an internal memo.
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 the Launch of Clearing Services for Iron Ore (Platts) Swap Futures
LONDON, Sept. 30 /PRNewswire/ — CME Group, the world’s leading and most diverse derivatives marketplace, today announced the launch of trading and clearing services for iron ore 62% Fe, CFR China (Platts) swap futures, reflecting changing dynamics in the global ferrous industry. Trading will be available on the New York trading floor.
Equiduct to provide systems to new Spain MTF
By Jeremy Grant
FT.com / FT Trading Room
Equiduct, the pan-European share trading platform, plans to provide trading technology to a planned new Spanish share trading platform, known as Plataforma Alternativa de Valores Españoles (Pave).
Turquoise launches price promotion, adjusts fees
Turquoise, the pan-European multilateral trading facility (MTF) owned by the London Stock Exchange (LSE), has announced a pricing promotion to attract more trading volume to its platform.
The Trade News
Irish Stock Exchange Adopts New Rules In Relation To Corporate Governance
The ISE is to require Irish listed companies to comply or explain against the provisions of the UK Corporate Governance Code. Additional corporate governance provisions arising from the recommendations contained in the report on Compliance with the Combined Code on Corporate Governance by Irish listed companies (“the ISE/IAIM Commissioned Report”)1 will come into force later this year. These requirements are outlined in the feedback statement on proposed changes to the ISE Listing Rules relating to corporate governance published today.
BM&FBOVESPA Sets New Trading Record For ETFs – The Number Of ETF Trades Hits New Historic High Of 4,737
MEFF: Good Progress For The New Rule Book With Three Segments: Financial Derivatives, Energy (Electricity) And Fixed Income (Repos)
Earlier LME trading draws Asia players
By Kevin Brown in Singapore
FT.com / FT Trading Room
Asia-based investors are accounting for up to 30 per cent of trading volume on benchmark contracts on the London Metals Exchange, according to the LME’s newly appointed regional managing director, disputing suggestions that an expansion of trading hours had not been a success.
TSX agrees low-latency connection for US, European traders
Market participants in Europe and the US can now trade on the Toronto Stock Exchange (TSX) via a direct, low-latency link, following a deal between Canadian exchange group TMX and trans-Atlantic connectivity provider Hibernia Atlantic.
The Trade News
Lead Futures in China May Boost Trading on LME, Exchange Says
By Glenys Sim
Sept. 30 (Bloomberg) — The launch of lead futures in China is “good news” for the London Metal Exchange, as it may lure more investors to trade contracts on the bourse, according to Liz Milan, managing director for LME Asia.
STS Group Listed On NYSE Alternext
NYSE Euronext today announced the transfer of STS Group from the Free Market to NYSE Alternext.
CME’s Future Speaks Bigger Volumes
Ticonderoga raised estimates on the exchange.
LSE halts fall in share of trades
By Jeremy Grant
FT.com / Companies / Financial Services
The London Stock Exchange’s battle to stop the erosion of its share of trading in UK blue-chips at the hands of smaller rivals has started to bear fruit with signs that its market share has stabilised.
Figures released by the exchange on Wednesday showed that the proportion of all trading on FTSE 100 stocks done on the LSE averaged 57 per cent during the past five months.
London Stock Exchange Says U.K. Market Share Has Been `Stable’ This Year
London Stock Exchange Group Plc said its share of U.K. equity trading was “broadly stable� over the first five months of the fiscal year as Europe’s oldest independent bourse seeks to stem losses to rivals.
OneChicago is pleased to announce the listing of 1 new product available for trading on October 01, 2010.
SIFMA Market Close Recommendations For The US Columbus Day And Japanese Sports Day Holidays In The US, The UK And The Japanese Markets
Banks, Brokers & Dark Pools
First Electronic Tri-Party Client Interest Rate Swap Trade Executed
Reduces Trade Processing Time to Less than Thirty Minutes from Execution to Clearing
LONDON, September 30, 2010 /PRNewswire/ — Tradeweb, a leading global provider of fixed income and derivatives markets, today announced the execution of the first ever, fully electronic tri-party interest rate swap trade, involving client, dealer, clearing member and clearing house. The transaction was executed on the Tradeweb platform between MPS Capital Services (the investment banking arm of Banca Monte dei Paschi di Siena, the oldest bank in the world) and Credit Suisse. The trade was affirmed by both parties, with Barclays Capital being the clearing member. The trade was cleared by LCH.Clearnet, with the total transaction taking less than 30 minutes to complete.
Tradeweb Wraps Innovative Electronic Interest-Rate Swap
By Katy Burne of DOW JONES NEWSWIRES
NEW YORK -(Dow Jones)- Derivatives online marketplace Tradeweb has completed what it believes is the first fully electronic interest-rate swap trade to be centrally cleared, involving four separate parties.
Icap boosted by high-frequency trading
By Alistair Gray
FT.com / Companies / Financial Services
Icap said it was on track to lift interim revenues by an expected 9 per cent but the world’s largest interdealer broker disappointed investors by signalling annual profit was unlikely to beat existing analyst forecasts.
ICAP Sees Full-Year Pretax Profit Within Forecasts
By Vladimir Guevarra Of DOW JONES NEWSWIRES
LONDON (Dow Jones)–U.K. interdealer broker ICAP PLC (IAP.LN) said Thursday that it expects revenue in its fiscal first half ending Sept. 30 to be up 9% from a year earlier, helped by active trading in financial markets, and that full-year pretax profit would be in line with analysts’ forecasts.
Broker snap: Panmure still neutral on ICAP
Broker snap: Panmure still neutral on ICAP LONDON (SHARECAST) – Inter-dealer broker ICAP was the weakest blue-chip performer on Thursday morning after it said earnings would be hit by debt refinancing costs but the shares are still worth holding on to, in the view of Panmure Gordon.
ICAP plc Trading Statement
London, 30 September 2010 – ICAP plc (IAP.L), the world’s premier interdealer broker, announces the following trading update ahead of the close period following its financial half year ended 30 September 2010. ICAP expects to announce its results for the half-year ended 30 September 2010 on 17 November 2010.
SmartPool targets further growth in France
SmartPool, the pan-European dark multilateral trading facility operated by NYSE Euronext, has reported strong market share gains in France this month and has added Société Générale to its member base.
The Trade News
SmartPool welcomes Societe Generale Corporate & Investment Banking to trading community
Amsterdam, Brussels, Lisbon, London, Paris, 30 September 2010, SmartPool, the European dark liquidity pool created by NYSE Euronext in partnership with HSBC, J.P.Morgan and BNP Paribas, today reported record trading gains in France and confirmed Societe Generale Corporate & Investment Banking as the latest firm to join the European dark pool.
TD Bank, TD AMERITRADE Raise More Than $1 Million for Special Olympics
OMAHA, Neb.–(BUSINESS WIRE)–TD Bank, America’s Most Convenient Bank, and TD AMERITRADE Holding Corporation (NASDAQ: AMTD) today announced that, together, the companies raised more than $1 million for the Special Olympics and 2010 Special Olympics National Games through the second annual “Be a FAN!� campaign. TD Bank and TD AMERITRADE surpassed their original $1 million goal through a …
AIG Lays Out Plan To Pay Back U.S. Government
The U.S. Treasury Department will swap debt it currently holds in AIG for common stock and then sell those shares over time. AIG will also repay loans it received from the Federal Reserve Bank of New York as part of the deal.
AIG Announces Plan to Repay U.S. Rescue With Stock
By Hugh Son
American International Group Inc. agreed with U.S. regulators to repay its bailout by converting the government’s holdings into common shares for sale, a step toward independence for the insurer whose near collapse two years ago threatened the global economy.
Man Group profits fall as investors withdraw money
London-listed hedge fund manager sees first-half profits fall significantly as investors continued to pull their money.
Trading limit spurs job cuts at bank
NEW YORK – Bank of America Corp. , the largest US bank, is eliminating 20 to 30 proprietary trading jobs to comply with limits on banks trading their own capital, a person briefed on the decision said.
As Trading Slows, So Do Investment Banks
The Motley Fool
Slowdown in trading volumes is slowing bank profits.
UBS Won’t Pay Dividends for Some Time to Satisfy New Basel Capital Rules
UBS AG , Switzerland’s biggest bank, said it probably won’t pay dividends for “some time” to satisfy new capital requirements without selling shares.
UBS Won’t Resume Payouts Until Basel Introduction
By Katharina Bart – Dow Jones Newswires
ZURICH -(Dow Jones)- UBS AG Thursday said it won’t return profits to shareholders again until international bank reforms start coming into force in 2013, and that it plans sharply cutting back ts riskier assets, which will nearly double when classified under the new rules.
UBS: No dividends for now to meet new capital rule
GENEVA – Swiss bank UBS AG says it won’t be paying dividends “for some time” as it seeks to bolster its capital reserves to meet new rules designed to protect banks from sudden collapse.
UBS Names Paul Raphael Head Wealth Management In Emerging Markets
UBS changes ad campaign after Le Corbusier controversy
[AFP] – Swiss bank UBS has decided to withdraw part of an advertising campaign based on Le Corbusier, a spokesman said on Wednesday, after fresh controversy over antisemitic comments by the historic Swiss architect.The …
Lloyds is worst high street bank for complaints
Lloyds Banking Group has topped the bank complaints league so far this year with nearly 290,000 grievances, figures showed today.
Citigroup Is Failing to Invest Enough in Franchise, Mayo Says
Citigroup Inc. isn’t spending enough on its computer equipment, ATMs, real estate and other things that make up its franchise, said Mike Mayo, the analyst who complained last month that the bank wouldn’t meet with him.
US will sell $2.2b of Citigroup stake
NEW YORK – The Treasury Department plans to sell $2.2 billion of Citigroup Inc. securities under a plan to lock in profits from the bank’s 2008 bailout. Citigroup – United States Department of the Treasury – NEW YORK – Business – Treasury Department
HSBC directors put on brave face at their Shanghai board meeting
HSBC was attempting to gloss over the bitter infighting that has wracked its board in recent days as directors met in Shanghai yesterday. The meeting had originally been scheduled with the aim of selecting a new chairman to replace Stephen Green, who is departing early to take an unpaid role as David Cameron’s Trade Minister from the House of Lords.
Piraeus Bank withdraws offer for Greek state banks
(AP:ATHENS, Greece) Greece’s private Piraeus Bank, one of the country’s largest lenders, on Thursday withdrew its offer to buy stakes in two state-controlled banks, saying the government had taken too long to made a decision on the bid.
Barclays to enforce encryption in all software applications
Barclays Bank is enforcing the use of encryption for rewriting its entire portfolio of software applications. The bank has also begun vetting software supplied by vendors, ranking suppliers by their level of risk
JPMorgan Regains Top Spot Among California’s Technology Debt Underwriters
JPMorgan Chase & Co. leapfrogged six competitors including Bank of America Corp. to become this year’s top underwriter for California technology companies, amid a jump in borrowing for acquisitions and stock buybacks.
Direct Edge Update
October Pricing Changes
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.
FBI Charges 60, Arrests at Least 10 in Global Cyber Fraud Scam, U.S. Says
By Patricia Hurtado and Erik Larson
At least 10 people were arrested in the U.S. in connection with an alleged global scheme to hack into bank accounts and steal millions of dollars using a computer virus, the Federal Bureau of Investigation said.
SEC Charges Bay Area Investment Adviser For Not Disclosing Conflict Of Interest To Investors
The Securities and Exchange Commission today charged a Bay Area investment adviser with securities law violations for switching his clients between two related investments without informing them that the switch would boost the commissions they had to pay.
SEC Charges ABB For Bribery Schemes In Mexico And Iraq
The Securities and Exchange Commission today charged ABB Ltd with violations of the Foreign Corrupt Practices Act (FCPA) for using subsidiaries to pay bribes to Mexican officials to obtain business with government-owned power companies, and to pay kickbacks to Iraq to obtain contracts under the U.N. Oil for Food Program.
UK’s Financial Services Authority Bans Partner At First Colonial Investments LLP For Governance Failings
The Financial Services Authority (FSA) has banned Gerald Classey, a partner at First Colonial Investments LLP (FCI), for several failings, including failing to exercise proper oversight of the stock-broking business of the firm and not telling the FSA about previous convictions.
UK’s Financial Services Authority Pushes For Further Improvements In Firms’ Complaints Handling Standards
The Financial Services Authority (FSA) has today proposed changes to its complaints handling rules as part of a package of measures to drive up standards of complaints handling within the industry. Today’s consultation paper is key to the FSA’s consumer protection agenda and is aimed at ensuring that more firms resolve complaints promptly and fairly.
Regulator has its say on top jobs
By Brooke Masters, chief regulation correspondent
FT.com / UK
UK regulators are playing an increasingly important role in the hiring decisions for top jobs in the City and Canary Wharf. Although the Financial Services Authority has always had the power to reject candidates for jobs that require formal authorisation, regulators generally kept their powder dry, except in cases involving personal unfitness – perhaps because of a criminal conviction or past history of regulatory problems.
SEC wiretap diss
New York Post
No wiretaps for you! A federal appeals court yesterday rejected the Securities and Exchange Commission’s request for immediate access to tens of thousands of private telephone conversations federal prosecutors have collected as part of its high-profile insider-trading case centering on Galleon Group founder Raj Rajaratnam. The ruling by the…
SEC Can’t Have Rajaratam Wiretaps, Appeals Court Says
A federal appeals court blocked a demand by the Securities and Exchange Commission for wiretaps from the insider-trading prosecution of Galleon Group co-founder Raj Rajaratnam for use in its related civil suit.
SEC considers civil suit against Indian outsourcer Mahindra Satyam after $1.7B fraud
MUMBAI, India – The U.S. Securities and Exchange Commission is considering a civil suit against India’s Mahindra Satyam seeking damages for fraud
SEC considers civil suit against Indian outsourcer Mahindra Satyam after $1.7B fraud
MUMBAI, India – The U.S. Securities and Exchange Commission is considering a civil suit against India’s Mahindra Satyam seeking damages for fraud in the aftermath of the company’s near collapse.
SEC: Fee Rate Advisory #2 For Fiscal Year 2011
U.K. Financial Regulator Proposes Tougher Bank Customer-Complaint Rules
By Erik Larson and Nandini Sukumar
Britain’s financial regulator proposed tougher rules for how banks must handle customer complaints even as such grievances about customer service reached the lowest level since 2006.
Goldman’s Fabrice Tourre Seeks Dismissal of SEC’s Suit Over Subprime CDOs
Goldman Sachs Group Inc. ‘s Fabrice Tourre asked a federal judge to dismiss a Securities and Exchange Commission lawsuit, saying the transactions at issue in the complaint didn’t take place in the U.S.
Goldman’s Tourre Says SEC Can’t Sue Him for Overseas CDO Deal
By Karen Gullo and Bob Van Voris
The Securities and Exchange Commission can’t sue Fabrice Tourre over a Goldman Sachs Group Inc. deal involving collateralized debt obligations because the transaction wasn’t in the U.S., his lawyers told a judge.
If Fabrice Tourre’s Lawyers Are RIght, The SEC Are Idiots
Fabrice Tourre’s (or should we say Goldman’s?) lawyers are playing the SEC for fools. In their latest attempt to get a judge to dismiss his case , Tourre’s lawyers remind the SEC, “you have no case,” by telling them that they charged him in the wrong country.
AMF publishes Q&A on the transfer of Euronext-listed companies to Alternext
ASIC issues consultation paper on financial requirements for managed investment scheme responsible entities
ASIC has today released a consultation paper, setting out issues for consultation regarding the financial requirements for responsible entities (REs) of managed investment schemes (MISs).
NSW Supreme Court finds Richmond property development company contravened the law
The Supreme Court of New South Wales (the Court) has found that Great Northern Developments Pty Ltd (Great Northern) offered securities without a disclosure document, following action by ASIC.
Consent Order on the application submitted by M/s. Dartmour Holdings Pvt. Ltd. in the matter of Wockhardt Limited
Order in the matter of Gujarat Arth Limited
Investments – Indexes – Managed Futures – Managed Funds
Firm creates alternative strategies fund
Long Island Business News
Ladenburg Thalmann, an investment firm based in Miami with an office in Melville, filed documents with the Securities and Exchange Commission earlier this month to create an “alternative strategies fund.” The fund basically makes alternative investments – such as public non-traded real estate investment trusts, managed futures and master limited partnerships – available to the everyday [...]
FN100 Women: hedge funds
Hedge fund returns have been subdued this year in volatile markets and raising new money remains difficult for firms. Elsewhere, the cloud of increased regulation continues to hang over the industry and prime brokers fight for a slice of smaller revenue pool.
PIMCO commodities fund to keep TIPS, no hedge funds
Commodities mutual fund up 7% on year, above benchmark. 30 Sep 2010 9:50 AM
Hedge Fund D. E. Shaw Lays Off 10 Percent: Reports
The New York Observer
D. E. Shaw, the brainiac hedge fund with flexible hours and no dress code, has cut 10 percent of its staff, according to a report by Institutional Investor. Institutional says that around 150 people have been let go, as the company’s assets have dropped by half over the past two years. A D. E. Shaw Spokesman said, “The D. E. Shaw group has taken steps to strengthen our business and maximize …
Big hedge fund cutting 150 Jobs
One of the largest hedge-fund firms is slashing 150 jobs after losing more than half of its hedge-fund assets since the financial crisis.
Source Reveals Why Hedge Fund DE Shaw Had To Cut 150 Staff
News that the $21 billion hedge fund DE Shaw had cut 150 employees (10% of its staff) shook up the hedge fund world. The source is an investor who’s been trying to get his money out, which tells you something to begin with.
Are Hedge Funds in for a Blood-Letting?
New York Times
It’s rare for a Wall Street firm to sack a tenth of its work force in one go. In finance, the compact between employers and their bankers and traders is simple: work hard and get paid well. But any employee is also a flexible cost that can be removed the moment business halts.
Why hedge funds are on the run
Hedge funds, prophets of the ‘old normal’, are packing up their bags, and with good reason. A future of low investment returns, and a heap of trouble for those expecting more, is what lies ahead.
Arrow launches Curvature Market Neutral Fund
Arrow Hedge Partners Inc. is launching a new fund that targets investors seeking a market-neutral strategy with above-average growth and moderate volatility.
Pimco’s Bill Gross: The Days of 10% Returns Are Gone
By CHARLES WALLACE
PIMCO’s Bill Gross Gets Dramatic: Hedge Fund Returns Are Going To Be Horrible From Now On
Getting rich as a hedge fund manager is a thing of the past, says Gross. Druckenmiller’s exit was like a punctuation point at the end of an era. It’s all very dramatic, the way Gross explains it, though the reality is much more boring.
Maybe There Shouldn’t Be 6,000 Hedge Funds
This may sound cynical, but I see Darwinism underway in the hedge fund industry and I’m not sure it’s a bad thing. Maybe there shouldn’t be 6,000 hedge funds.
Harbinger Head, Falcone, Hits Out at Media
New York Times
Hedge fund manager Philip Falcone is not happy with the news media — especially some of the recent coverage of his $9 billion Harbinger Capital Partners, Reuters reports.
Dreyfus-Olam in focus as cotton traders meet
By Gregory Meyer in New York
FT.com / Commodities
When a “who’s who” of the cotton world gathers in Liverpool on Thursday, international trade will be on their official agenda. But the topic on everyone’s lips will be a potential merger between two of the biggest names in the business.
In a Withering Market, Where Will Your Investments Grow?
Knowledge at Wharton
After losing equity in their homes and stock portfolios, Americans are now scrambling to make up lost savings by moving money into bonds and a host of other investments once considered either risky or unattractive. Although the dramatic shift in investment behavior is unlikely to have a long-term impact on the economy, analysts warn that the new strategies could have a profound effect on …
Confidence High Among Multifamily Investors
LIVINGSTON, NJ-Some of the strongest signs of economic recovery in the commercial real estate sector are rooted in multifamily investments, as highlighted by the more than 44 deals recorded by locally based Gebroe-Hammer Associates in 2010 thus far.
It’s time commodities got some respect
Pundits believe the commodities bull market may only be halfway through its 18-year cycle
Contrarian Paulson likes stocks, housing
The Globe and Mail
Hedge fund manager is advocating another tack against the prevailing winds in the markets: Sell bonds, and buy stocks
Hedge funds are not Gecko-like evils but they are greedy
These funds are often wrongly blamed for sharemarket failures.
Apex Fund Services Expands North America Market with Opening of Toronto Office
TORONTO–(BUSINESS WIRE)–Apex Fund Services, the leading, independent global fund-administration business, with over US$13bn AUM, to expand North American fund administration services and client base – opening of Toronto
Corporate Counsel’s Fourth Annual Hedge Fund General Counsel Summit to Take Place October 4 in New York City
NEW YORK–(BUSINESS WIRE)–ALM’s Corporate Counsel today announced plans for its 4th Annual Hedge Fund General Counsel Summit. The one-day conference will take place October 4 at The Harvard Club in New York City. The Summit will address impending regulatory changes affecting the hedge fund industry and offer concrete guidance on how firms can ensure compliance and attract investor capital …
UNX Upgrades Catalyst EMS To Support International Trading
UNX LLC (www.unx.com), a leading provider of innovative trading technology solutions, has upgraded its Catalyst Execution Management System (EMS), an open-architecture electronic trading solution.
Oracle Capital Chooses Options IT
Wall Street and Technology
Hong Kong-based hedge fund selects Options PIPE Core service, which offers full site of office and mobile technology.
Hedge fund firm picks Options IT as tech provider
HONG KONG: Options IT, a provider of ultra-low latency market data and connectivity, for the buyside and sellside, today announced that Oracle Capital, a hedge fund founded by two former Lehman Brothers traders, has selected Options IT as its technology infrastructure provider.
Trans-Atlantic Cable Plan Targets High-Frequency Traders
By Doug Cameron and Jacob Bunge Of DOW JONES NEWSWIRES
Hibernia Atlantic announced plans Thursday to build a new trans-Atlantic communications cable aimed at high-frequency traders, shaving 500 kilometers from the shortest existing route and cutting execution times by about 8%.
U.S. looks at ways to control militant websites
Los Angeles Times
A House subcommittee hears testimony on sites promoting terrorist groups and extremist ideology. One expert suggests studying the sites for information, closing them or providing countering ideology. Militant websites are becoming more accessible and appealing to Americans, experts told members of Congress on Wednesday, adding that the sites must be monitored and some should be shut down.
Inside Market Data
Briefing.com Economic Calendar
CBOE Events Calendar
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.
AsiaPac surpasses N.America in futures trading
By Rachel Kelly
SINGAPORE: Asia Pacific has taken the lead in futures trading, surpassing North America for the first time.
The region now accounts for more than 37 per cent of futures contracts traded globally. North America, meanwhile, accounts for 32.7 per cent.
Tokyo Grain Exchange Will Extend Trading Hours And Implement NASDAQ OMX Trading Platform From January 4, 2011
Thai Bourse Appoints Executives To Enhance Regional Competitiveness
The Stock Exchange of Thailand (SET) has strengthened its executive team after restructuring to support all groups of customers. Mr. Pakorn Peetathawatchai will be SET Chief Marketing Officer, effective October 1, and Mr. Bordin Unakul will be SET Executive Vice President, Post-Trade Services & Development, effective November 1, 2010. SET will more fully support customers’ needs, create more products, increase liquidity to match that of leading exchanges, thus increasing business opportunities and enhancing SET’s potential to compete internationally.
Thai Bourse Creates Steel Sector Listing Under Industrials Group
The Stock Exchange of Thailand (SET) has created the Steel Sector under the Industrials Industry Group to reflect the importance of listed companies in the steel business and benefit research and investment decision-making. The SET will move 27 listed companies to this new Sector, starting on January 4, 2011.
The Five Races That Lie Ahead For China
The country faces crucial challenges in demographics, energy, the environment and more.
Pentagon Loses Control of Bombs to China Metal Monopoly
By Peter Robison and Gopal Ratnam
A senior manager at a company that churns out metals routinely used in U.S. smart bombs pauses in mid-sentence when his phone rings: a Wall Street stockbroker looking for information. He makes a note to have an assistant call back — someone who is fluent in English, not just Chinese.
Bourse declares shift to new system a success
THE PHILIPPINE Stock Exchange (PSE) and NYSE Technologies, the commercial technology division of financial market operator NYSE Euronext, said yesterday the migration of the local bourse to a new electronic trading platform has been successful.
KRX Releases New Indices; KRX SRI Eco And KOSPI 200 Strategy Indices
KRX releases three new indices from October 1, 2010; KRX SRI Eco, KOSPI 200 Covered Call (C-KOSPI 200) and KOSPI 200 Protective Put (P-KOSPI 200). Also, KRX changes the name of KOSPI 200 Volatility Index from ‘VKOSPI’ to ‘V-KOSPI 200.’
HKEx: Report On Initial Public Offering Applications, Delisting And Suspensions(As At 30 September 2010)
Tokyo Commodity Exchange: Deliverable Goods Of Precious Metals
TSEC Taiwan Index Series To Be Renamed FTSE TWSE Taiwan Index Series
DGCX Indian Rupee Futures Exceed 4,000 Contracts
DGCX Indian Rupee / Dollar futures achieved further new records this week, with daily volumes surpassing 4,000 contracts for the first time on Tuesday 28th and again on Wednesday 29th September 2010.
Mishal Kanoo expresses concerns at Alternative Investments in Asia Forum
30 September 2010 Dubai: Mishal Kanoo, Deputy Chairman of The Kanoo Group The Kanoo Group , one of the biggest independent companies in the Gulf region which runs diversified businesses from oil and gas, travel, shipping, machinery and logistics, addressed almost 600 people at the “Dawn of the New Decade: Alternative Investments in Asia” conference in Kuala Lumpur, Malaysia on September 28, 2010.
Ban on futures trading of sugar lifted
New Delhi, Sep 30 (PTI) Commodity market regulator FMC today lifted the ban on trading in sugar futures, as retail prices of the sweetener have dropped by 40 per cent since January and also buoyed by expectations of a bumper output in 2010-11.
IBN Live News
MIDA seeks to attract FDIs from US
Sin Chew Jit Poh
KUALA LUMPUR, Thursday 30 September 2010 (Bernama) — The Malaysian Investment Development Authority (MIDA) hopes to attract more foreign direct investments (FDIs) from the United States following the visit of Mary Buffett, author of “The Buffettology Workbook”, to Malaysia.
Malaysia Debt Ventures plans third Islamic bond sale next year
KUALA LUMPUR: Malaysia Debt Ventures Bhd, a venture capital firm owned by the Finance Ministry, plans to issue about RM500mil of Islamic bonds in its third sukuk sale next year to fund investments, chief executive officer Md Zubir Ansori Yahaya said.
Fund managers urged to slash charges
Asset management firms operating in the region need to cut various fees they charge from their clients that would in turn give a boost to their assets and volumes, a senior official has said.
Malaysia’s global profile gets a lift from visit
New Straits Times
PRIME Minister Datuk Seri Najib Razak sees his just-concluded visit to New York as a successful attempt in raising Malaysia’s global profile, especially among the international business and diplomatic communities.
HSBC awards RM360,000 in academic scholarships
Sabah Daily Express
Kuala Lumpur: HSBC Bank Malaysia Bhd Wednesday awarded RM360,000 in scholarships to 11 undergraduate students as well as two HSBC employees’s children studying various courses in local universities and colleges.
Speculation in Food Commodities Should Be Limited, German Candy Group Says
By Chris Kay
Speculative trading of food commodities by banks and funds should be restricted or their positions in items such as wheat and cocoa publicly disclosed, the Association of the German Confectionery Industry said.
Preventing Circuit Breakers from Being Triggered by an Erroneous Trade
NYSE Exchanges Blog
NYSE Arca announced to customers earlier today that a single erroneous trade no longer will trigger the single-stock circuit breakers in NYSE Arca-listed pilot issues.
Clock That Once Overlooked LSE Floor Moves to Texas in Time for Christmas
A clock that hung over the trading floor at the London Stock Exchange for a quarter of a century is heading to Texas after an unidentified woman outbid Chi-X Europe Ltd., the bourse’s biggest rival, for the relic.
All We Are Saying Is Give Dick Fuld a Chance: Jonathan Weil
Enough of this going-halfway stuff. It’s time Barack Obama found someone capable of doing something bold to the U.S. economy. And I’ve got a list of candidates who could do it.
Mystery of Disappearing Proprietary Traders: Michael Lewis
By Michael Lewis
In the run-up to the vote on the financial overhaul bill, the big Wall Street banks squashed an attempt by Senator Carl Levin to pass a simple ban on any form of proprietary trading.
A Senate staffer close to the process told me the amendment was one of Wall Street’s highest priorities, spreading money around to exert as much pressure as possible.
Lloyd Blankfein Channels SWP
In this post-crisis (or is it continuing crisis?) world, Lloyd Blankfein and Goldman Sachs (a/k/a “The Giant Squid”) may not be considered the most savory company to keep, but that’s where I find myself today. That’s because Goldman CEO Blankfein is also raising the alarm about the systemic risks posed by a vast expansion of derivatives clearing: