Nasdaq OMX announces plans to start up a London-based derivatives platform, and nabs social media listings in the U.S. The SEC considers softening its stance on requiring large amounts of confidential data from hedge funds. Banks pledge to be ethical in the future, and UBS and Credit Suisse (both of which are banks) are fined millions by FINRA and the FSA respectively. The top box of the newsletter features JLN interviews with Keizo Goto of the Financial Futures Association of Japan; Alice Botis of Fidessa; and Lauren Teigland-Hunt of Teigland-Hunt LLP. Sovereign “Hot Potato”, FX commentary by Doug Ashburn, rounds out the section.
Observations – Statistics – Commentary
TABB Says Proposed Margin Rules For OTC Interest-Rate Derivatives Will Severely Damage Swaps Market Liquidity
Proposed Rules Will Render Many Trade Structures Extinct And Represent $1.4 Trillion In New Capital Allocation Globally For Rates Swaps
Press Release
Regulatory mandates requiring firms to post initial margin on over-the-counter derivatives (OTCD) are among the biggest changes that Dodd-Frank legislation is set to bring about. According to TABB Group estimates in new research, these new margin rules will cause OTC interest-rate derivatives market participants to shoulder at least $1.4 trillion in new capital charges globally within the next three to five years.
http://jlne.ws/uYDZQ9
**** If you want to play, you have to pay.
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MiFID II 10 key takeaways that will give you indigestion
Steve Grob - Fidessa
Just back from a two week trip around Asia and Australia that took in dark pool seminars in Hong Kong and Singapore and attendance at the FPL conference in Sydney. In my absence, it seems like the Eurocrats in Brussels have been busy as the official version of the widely leaked MiFID II proposals came out last Thursday. For a good roundup of the general themes look no further than Michelle Price’s piece outlining the 10 key takeaways, but I fear that nearly all of them are likely to cause us severe indigestion. I won’t take all the themes apart right now but, just for starters, here’s my take:
http://jlne.ws/tOavFo
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Five Minutes with Keizo Goto
Keizo Goto is the senior managing director of the Financial Futures Association of Japan (FFAJ), a self-regulatory organization with jurisdiction over derivatives, financial futures as well as on- and off-exchange margin FX trade and options. He sat down with MarketsWiki’s Jessica Titlebaum to discuss the association’s mission, Japanese market reform and regulatory changes in the FX markets.
http://jlne.ws/t3vRf0
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MarketAxess Reports Third Quarter 2011 Record Revenues of $46.6 Million, Record Pre-Tax Income of $22.3 Million and Diluted EPS of $0.34
MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a leading electronic trading platform for U.S. and European high-grade corporate bonds, emerging markets bonds and other types of fixed-income securities, today announced results for the third quarter ended September 30, 2011. “We are very pleased to report another record quarter of revenues, pre-tax income and operating margin,” said Richard M. McVey, chairman and chief executive officer of MarketAxess. “This represents the 10th consecutive quarter of record results and has been driven by strong U.S. high grade market share gains and continued expense discipline.”
http://jlne.ws/vIsJZC
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Incentive structures still favour risk-taking
By John Plender – Financial Times
In the welter of regulatory reforms that has followed the financial crisis, one area has received far too little attention. It concerns the role of incentives in prompting excessive risk taking. So much the better, then, that Andrew Haldane, executive director for financial stability at the Bank of England, devoted the latest Wincott Annual Memorial Lecture to the poor alignment of incentives in banking with the public good.
http://jlne.ws/vqpyOS
**** I want to be paid for taking no risk. Let me just stay in bed and get paid.
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Proposed tax break for CME, CBOE worries traders
Reuters via Yahoo! News
CHICAGO (Reuters) – A proposed tax break designed to keep exchange operators CME Group Inc and CBOE Holdings Inc from leaving Illinois has some floor traders worried it could crimp their business.
http://jlne.ws/vRcjiR
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The PIPEs Conference returns to New York City.
Now in its 9th straight year, The PIPEs Conference is your opportunity to gather with industry experts and participate in a forum for discussion of all the changes affecting the market. After successful events in Shanghai, Beijing, Hong Kong, London and Las Vegas, The PIPEs Conference has become the largest and most influential event in the small cap equities market.
This year’s program will tackle all of the changes in market dynamics, funding structures, challenges in raising capital, and regulatory initiatives that will impact the PIPE market and the market for registered directs, follow-ons, CMPOs and other deals.
For agenda, registration and more details, visit http://jlne.ws/udXWMK
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Alice Botis – Fidessa [INTERVIEW]
MarketsWiki.tv
Alice Botis‘ experience spans from being the first female NASDAQ market maker to heading up Latin American business development for Fidessa. She sat down with John Lothian News editor Jessica Titlebaum to discuss the high frequency trading environment in Latin America, how the MILA initiative (otherwise known as the Integrated Latin American Market) is impacting growth in the region and how the industry has changed for women in this global marketplace.
Watch the video >
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Lauren Teigland-Hunt – Teigland-Hunt LLP [INTERVIEW]
MarketsWiki.tv
Lauren Teigland-Hunt is managing director of Teigland-Hunt LLP, a law firm based in New York which focuses on U.S. commodities law and regulation. She advises financial institutions and buy side firms on regulatory issues related to derivative transactions and acts as counsel to several ISDA drafting committees. John Lothian News Editor-in-Chief Jim Kharouf spoke with Teigland-Hunt about documentation standards for cleared swap transactions (Section 723 and 724 in the Dodd-Frank Act), the FCM “agency model” imposed by the Dodd-Frank Act, and the first iteration of a standard execution agreement, released by FIA and ISDA in June 2011.
Watch the video >
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JLN FX Newsletter
Sovereign “Hot Potato”
by Douglas Ashburn
Editor’s Note: This column marks another installment of The Eurozone, an occasional series that highlights and expands upon the major news topics coming out of Europe and its periphery. Over time, additional story lines will manifest themselves; but you are encouraged to participate as well, by suggesting topics, or even submitting guest commentary.
As the Eurozone continues its retrenchment from the excesses of the last decade, it has begun to see the magnitude of bad debt on its collective balance sheet. However, the question still remains: who will absorb the losses – banks, debtor nations, creditor nations, institutional investors, taxpayers, the International Monetary Fund (IMF), or some combination thereof? Europe is locked in a high-stakes game of “hot potato” with an ever-elusive ending date.
No clear progress was made Sunday in round 13 of “Sovereign Hot Potato” (aka the Oct. 23 EU Summit), unless we count the gushing optimism of French President Nicolas Sarkozy who claimed there “have been advances” in the plans. As usual, he believes the EU to be just one meeting away from solving the entire crisis. That meeting will be held on Wednesday. We shall see.
The pessimists seem to outnumber the optimists by a wide margin. Naysayers include noted economist James Galbraith, professor of economics at the University of Texas, who said yesterday that moving beyond the crisis will take “an almost complete reversal in the ideas that presently govern Europe.” He added that you would “have to have a much greater sense of European solidarity, and have a willingness to invest European funds into the peripheral countries in a much more serious and sustained way and to have a strategic plan for their growth and development. None of that is presently in the offing.”
For the rest of the commentary and more FX news, visit the JLN FX website at http://jlne.ws/vJ6Yie
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MarketsWiki Page of the Day
Joerg Asmussen
http://jlne.ws/sIEQOP
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MarketsWiki Recent Updates
People
Georgina Franks; Lauren Teigland-Hunt; Alice Botis; Chris LaRosa; Christopher Lazarus Gust; Mario Albert; Clarke Dryden Camper
Companies, Organizations and Groups
Clarium Capital; Ciena Corporation; Interactive Data Corporation; China Zhengzhou Grain Wholesale Market; Cheevers & Company, Inc.; China Securities Depository and Clearing Corporation; Autorité Des Marchés Financiers
Products
Miscellaneous
Statistics
15,152,804 pages viewed, 6,532 articles, 130,954 edits
MarketsWiki Statistics
Lead Stories
Nasdaq plans European derivatives platform
By Jeremy Grant in Naples, Florida – Financial Times
Nasdaq OMX, the US exchange operator, is planning to set up a European derivatives trading platform based in London in a bid to compete against Deutsche Börse, NYSE Euronext and the London Stock Exchange, three people familiar with the matter said.
http://jlne.ws/uJiV88
Exclusive: SEC weighs easing hedge fund data rule
Reuters via Yahoo! News
WASHINGTON (Reuters) – Regulators are considering easing a proposed rule so that fewer hedge fund advisers would have to hand over troves of confidential data to the government, according to people familiar with the deliberations.
http://jlne.ws/v7pk8D
Nasdaq Fights Back In Social-Media Listings Fray With NYSE
By Brendan Conway and Jacob Bunge Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)–Nasdaq OMX Group (NDAQ) is rediscovering its sweet spot, landing three big technology-related listings in recent days as the exchange operator fights to reclaim ground lost to arch rival NYSE Euronext (NYX).
http://jlne.ws/rNG1h1
Dexia brought to a halt
By Stanley Pignal in Brussels – Financial Times
Pierre Mariani was desperate to raise cash. The eurozone crisis had made investors shy away from lending to just about any European bank in recent months, but Dexia, the Brussels-based financial group where he was entering his fourth year as chief executive, was finding it even more difficult.
http://jlne.ws/vpPero
SEF Operators Eager to Cross the Finish Line
By Rob Daly – Waters Technology
After the Dodd–Frank Wall Street Reform and Consumer Protection Act was signed into law in July 2010, it dangled a glittering prize in front of over-the-counter (OTC) swaps dealers—a chance to bag a windfall in trading fees from a good portion of the $601 trillion OTC derivatives market that would be made to trade on swaps execution facilities (SEFs) by the second half of next year.
http://jlne.ws/sXDu3s
European Parliament: Global Finance And Its Institutions Need A Facelift
Press Release
In the run-up to the November G20 summit in Cannes, Parliament on Tuesday adopted its contribution to reviewing global economic governance by a large majority. The resolution calls for an overhaul of the IMF, primarily to make it a more political body, a halt to political meddling with exchange rates, and global rules to separate speculative banking activities from traditional retail ones. The G20 is also called upon to agree on the elements for a global financial transaction tax.
http://jlne.ws/vCMEay
Assistant Secretary For International Finance Charles Collyns Written Testimony Before The House Committee On Financial Services Subcommittee On International Monetary Policy And Trade – The Eurozone Debt Crisis And Implications For The United States
Press Release
Chairman Miller, Ranking Member McCarthy, and distinguished members of the committee, thank you for the opportunity to discuss recent developments in Europe and how we are engaging with our partners to limit risks to the U.S. economy and encourage swift resolution of the crisis.
http://jlne.ws/t95k0h
Under Secretary For International Affairs Dr. Lael Brainard Testimony Before The House Committee On Ways And Means On The U.S.-China Economic Relationship
Press Release
Chairman Camp, Ranking Member Levin, distinguished members of the Committee, thank you for the opportunity to testify today on our economic relationship with China.
http://jlne.ws/thd6WH
Environmental Trading News
NYSE Euronext Ranks No. 15 on EPA’s Fortune 500 List of Green Power Purchasers
Press Release
NEW YORK, Oct. 25, 2011 – NYSE Euronext announced today that for the first time it appears as No. 15 on the U.S. Environmental Protection Agency’s (EPA’s) Fortune 500 list of the largest green power purchasers. NYSE Euronext is purchasing more than 127 million kilowatt-hours (kWh) of green power annually in the United States alone, which is enough green power to meet 100 percent of the organization’s electricity use for its U.S. operations.
http://jlne.ws/v3W4Tj
In Clean Tech, Venture Capital Looks for Problem-Solvers
New York Times
Many investors are shying away from the high risks and costs of creating new forms of energy in favor of using software to cope with problems caused by climate change.
http://jlne.ws/tPzGTk
Cutting Business Carbon Emissions Can Be Easily Managed Say Carbon-Clear.com
PRWeb
At a recent party conference, the UK chancellor highlighted the need to continue to reduce business carbon emissions, but at a sustainable rate which allows business to continue to grow. The UK has the world’s toughest targets for cutting the carbon emissions that create global warming, but how do businesses begin the process of managing their carbon impact? (PRWeb October 26, 2011) Read the …
http://jlne.ws/usUG0a
U.S. seen respecting EU carbon law -EU climate commissioner
Reuters Company Finance News via Yahoo! Finance
BRUSSELS, Oct 25 (Reuters) – The European Union’s climate commissioner said on Tuesday she was sure the United States would fall in line with EU legislation that will force U.S. airlines landing or taking off from Europe to buy permits for carbon emissions from Jan. 1.
http://jlne.ws/vhbk6v
China fires back over SolarWorld issue
TG Daily
China and U.S. solar manufacturers are trading shots in the wake of the SolarWorld-led effort to slap big tariffs on Chinese imports of crystalline silicon solar panels . read more
http://jlne.ws/vU614Y
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
ISE Introduces ISE Implied Volatility and Greeks Feed
Press Release
New York, October 25, 2011 – The International Securities Exchange (ISE) has introduced the ISE Implied Volatility and Greeks Feed, a joint offering from ISE and Hanweck Associates. Powered by Hanweck Associates’ high-performance Volera engine, this feed provides real-time, low-latency, tick-level options analytics for all equity, index and ETF options traded on the nine U.S. options exchanges.
http://jlne.ws/rDcQer
D.Boerse, NYSE Euronext CEOs to defend deal on October 27
Reuters Company Finance News via Yahoo! Finance
BRUSSELS (Reuters) – Deutsche Boerse’s (DB1Gn.DE: Quote, Profile, Research, Stock Buzz) $9 billion deal with NYSE Euronext (NYX.N: Quote, Profile, Research, Stock Buzz) will create a heavyweight able to better compete with rivals, the chief executive of the U.S.-based exchange operator will tell EU regulators at a closed-door hearing on Thursday.
http://jlne.ws/rv92Z7
NYSE to Host Third Annual Floor Broker Charity Trading Day
Press Release
New York, Oct. 25, 2010 – The New York Stock Exchange, a unit of NYSE Euronext (NYX), today announced that it will hold its third annual Floor Broker Charity Trading Day on Friday, Nov. 4, 2011. On that day all net transaction fees on orders executed by floor brokers in NYSE and NYSE Amex securities will be donated to St. Jude Children’s Research Hospital, one of the world’s premier centers for the research and treatment of pediatric cancer and other deadly childhood diseases.
http://jlne.ws/uRbAQ1
Swiss Exchange bids to attract high-frequency flow
By Luke Jeffs – Reuters
LONDON, Oct 25 (Reuters) – The Swiss Exchange has pledged to launch ultra-fast trading next year, making it the latest European stock market to appeal directly to the region’s controversial high-frequency trading firms.
http://jlne.ws/tvKO79
SIX Swiss Exchange to offer co-location services for new X-stream INET trading platform with Equinix [PDF]
Press Release
SIX Swiss Exchange will offer co-location services for its new equities trading platform X-stream INET together with Equinix, a provider of global data center services. Connection to the new platform, scheduled for launch in the first half of 2012, will be provided in Equinix’s Zurich International Business Exchange (IBX) data center, and will offer market participants significantly enhanced trading capacity and reduced latency.
http://jlne.ws/rTzoOq
Swiss International Commodities and Futures Exchange to Launch Free Technical Analysis Informative Trading Seminars
Press Release
Swiss International Commodities and Futures Exchange is set to launch and offer free informative trading seminars focused on technical analysis and designed for traders and investors for the expected
http://jlne.ws/t8MYy1
Nasdaq 3Q Net Up 8.9% On Higher Trading Volume, Revenue Tops Views
BY MIA LAMAR – WSJ
Nasdaq OMX Group Inc.’s third-quarter profit rose 8.9% as increased trading helped spur revenue gains at the exchange operator.
http://jlne.ws/uakmft
NASDAQ Announces Mid-Month Open Short Interest Positions in NASDAQ Stocks as of Settlement Date October 14, 2011
Press Release
http://jlne.ws/vtIhx1
NASDAQ OMX Adopts ICB Company Classification Standard Globally
Press Release
NASDAQ OMX has decided to adopt the ICB (Industry Classification Benchmark) standard globally, effective as of February 1, 2012. The NASDAQ OMX exchanges in Stockholm, Copenhagen, Helsinki, Reykjavik, Tallinn, Riga, and Vilnius will adopt ICB which is the current standard on the NASDAQ OMX exchanges in the US.
http://jlne.ws/vKkbgF
TMX Group Announces Retirement Of NGX President At The End Of 2012
Press Release
TMX Group Inc. today announced that Peter Krenkel, President of NGX, a leading North American energy exchange and wholly-owned subsidiary of TMX Group, will retire at the end of 2012.
http://jlne.ws/vn1WC8
NYSE AMEX TO DELIST SECURITIES OF PRESIDENTIAL REALTY CORPORATION
Press Release
http://jlne.ws/scYchH
NYSE Amex Issues Short Interest Report
Press Release
http://jlne.ws/v58Psu
NYSE Group Inc. Issues Short Interest Report
Press Release
http://jlne.ws/vnMsu5
FORTS: The Average Daily Trading Volume In Russian Federation Government Bonds Futures Has Increased By 13 Times
Press Release
http://jlne.ws/vviEZG
RTS Group Weekly Trading Results
Press Release
http://jlne.ws/tsdUkh
Banks, Brokers & Dark Pools
Banks make ‘ethical’ behaviour pledge
FT Finance News (ext) via Yahoo! Finance
Three years after the financial crisis decimated banks’ reputations as well as their earnings, the UK’s biggest institutions have signed up to a new “ethical” code of conduct aimed at improving …
http://jlne.ws/t2z16q
Knight Appoints Sundar Varadarajan as Managing Director, Fixed Income Desk Strategist
citybizlist Philadelphia
JERSEY CITY, N.J., — Knight Capital Group, Inc. (NYSE Euronext: KCG) today announced the appointment of Sundar Varadarajan as Managing Director, Fixed Income Desk Strategist with responsibility for coverage of the technology and telecommunications sectors.
http://jlne.ws/sy22Yt
TD Ameritrade 4Q profit up 44 pct on heavy trading
AP via Yahoo! News
Market turmoil during the summer helped push online investment broker TD Ameritrade Holding Corp’s fiscal fourth-quarter profit up 44 percent.
http://jlne.ws/s7tTpH
DealBook: Wall Street’s Fondness for Spinoffs May Turn on Itself
New York Times
Wall Street banks are pushing spinoffs to compensate for declining takeover volume, but they may find themselves facing the same pressure from their own investors to split up.
http://jlne.ws/tNv2Fe
DealBook: Wall St. Giants Seek a Piece of Nigeria’s Sovereign Fund
New York Times
Goldman Sachs, JPMorgan Chase and Morgan Stanley are among Wall Street investment firms vying to manage the sovereign wealth fund being established by oil-rich Nigeria.
http://jlne.ws/vWmcsI
UBS Ermotti Appointment Faces Fraud Charges
Dow Jones
ZURICH — One of the first appointments made under UBS AG (UBS) interim Chief Executive Sergio Ermotti was the nomination of Fabio Innocenzi, who is being investigated in Milan for alleged falsification of balance sheets and market price manipulation, as head of the Swiss bank’s Italian business, the daily TagesAnzeiger newspaper reports Tuesday.
http://jlne.ws/uqcCYU
Meet Kevin Ryan, The Morgan Stanley Rockstar Who Goldman Sachs Couldn’t Poach
Business Insider
Morgan Stanley’s solution to prevent Goldman Sachs from taking their top talents: a promotion. Getting a detail like that printed online — specifically, being so hot that you were not only a poach candidate but then got re-poached by your own firm, is just the first of the praises that proclaim near “rockstar status” loudly from Ryan’s Google profile.
http://jlne.ws/tLkO9R
Morgan Stanley Smith Barney Said to Change Broker Pay Structure
Bloomberg
Morgan Stanley (MS) Smith Barney, the world’s largest brokerage, plans to adjust its compensation structure to boost profitability, according to a person familiar with the discussions.
http://jlne.ws/v2Ajpa
Morgan Stanley Sells Mortgage Servicing Unit to Ocwen Financial
Forbes
Morgan Stanley (MS) announced late yesterday it has agreed to sell its Saxon Mortgage Service unit to Ocwen Financial Corporation (OCN). Ocwen is paying $59.
http://jlne.ws/rHd3gm
Morgan Stanley Smith Barney Global Stock Plan Leaders Are Featured Speakers at 2011 NASPP Annual Conference
Press Release
Morgan Stanley Smith Barney announced today that it will have two speakers featured at the 19th annual conference of the National Association of Stock Plan Professionals (NASPP)1 on November 1–4, 2011, in San Francisco. Morgan Stanley Smith Barney provides stock plan services to nearly 2.5 million participants at more than 500 corporations globally, including more than 20 percent of the Fortune 500.
http://jlne.ws/w08yAz
UPDATE 1-Nomura eyes major cost-cutting drive -WSJ
Reuters Company Finance News via Yahoo! Finance
TOKYO, Oct 26 (Reuters) – Japan’s Nomura Holdings is planning major cost cuts that will likely have the biggest impact on its loss-making European operations, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.
http://jlne.ws/snamD4
Deutsche Bank commodities trading hits new record
Reuters via Yahoo! News
LONDON (Reuters) – Deutsche Bank reported record-beating performance in commodities trading in the third quarter as it grabbed business from U.S. and European rival despite some of the sharpest falls in commodities prices since the 2008 financial crisis.
http://jlne.ws/v2MWMV
Deutsche Bank Joins UBS in Signaling More Jobs at Risk as Crisis Persists
Bloomberg
Deutsche Bank AG (DBK) and UBS AG (UBSN) , the biggest banks in Germany and Switzerland , signaled more jobs may be at risk as the European sovereign debt crisis and global economic slowdown crimp investment-banking revenue.
http://jlne.ws/tMEVWx
Hartford names Robert Rupp its chief risk officer
Boston Globe
The Hartford Financial Services Group Inc. on Tuesday named Robert Rupp its chief risk officer.
http://jlne.ws/u0UMIh
Chicago commercial finance firm raises $318M
Chicago Tribune
A Chicago-based commercial finance firm founded last year and led by former Merrill Lynch Capital executives has raised $318 million in additional equity commitments, bringing its total capital pool to $850 million. NXT Capital LLC, which invests in middle-market businesses, said it received commitments from new and existing investors, including an additional $125 million investment from the Ontario Teachers’ Pension Plan.
http://jlne.ws/vzZ4B2
Rick Bensignor Joins Merlin Securities as Chief Market Strategist
Business Wire
NEW YORK–(BUSINESS WIRE)–Merlin Securities, a premier technology solutions provider and prime brokerage services firm, announced today that Rick Bensignor has joined the firm as chief market strategist. In this new position, Bensignor will produce behavioral market strategy research focused on a wide variety of asset classes and macro-economic commentary that will be made available to all of …
http://jlne.ws/tk7CwE
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/2011/dig102611.htm
CFTC Charges Texas Residents Linda Harris, Chance Harris and Two of Their Companies with Solicitation Fraud, Misrepresentation, and Misappropriation in Multi-Million Dollar Forex Scheme
Press Release
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) filed a complaint in the U.S. District Court for the Northern District of Texas, Dallas Division, charging Linda Faye Harris, Chance Domel Harris, CDH Forex Investments, LLC and CDH Global Holdings, LLC, all of Flower Mound, Texas, with solicitation fraud, making false statements, and misappropriation of investors’ funds in connection with the trading of off-exchange foreign currency (forex) contracts.
http://jlne.ws/tmIdzj
CFTC Staff Allows Taiwan Futures Exchange’s Futures Contract Based on the GreTai Securities Market Capitalized Weighted Stock Index (“GTEX”) To Be Offered and Sold in the United States
Press Release
Washington, DC – The Commodity Futures Trading Commission’s (CFTC’s) Office of General Counsel today announced that it issued a no-action letter on October 24, 2011, permitting the offer and sale in the United States of Taiwan Futures Exchange’s futures contract based on the GTEX.
http://jlne.ws/rMYcaj
Former Goldman Sachs Board Member to Surrender in N.Y. Insider Trading Case
Fox News
A former Goldman Sachs board member linked to a massive hedge fund insider trading case is set to surrender to face criminal charges in New York City.
http://jlne.ws/u5VE4Y
Ex-Goldman Sachs Director Gupta Said to Be Surrendering to FBI
BusinessWeek
Rajat Gupta, the former Goldman Sachs Group Inc. director once accused of feeding Galleon Group LLC co-founder Raj Rajaratnam inside information, will surrender to the FBI on criminal charges tomorrow, a person familiar with the matter said.
http://jlne.ws/u4n3r1
FSA fines Credit Suisse UK £5.95 million for systems and control failings
Press Release
The Financial Services Authority (FSA) has fined Credit Suisse (UK) Limited (Credit Suisse UK) £5.95 million for systems and controls failings in relation to sales by its private bank of structured capital at risk products (SCARPs).
http://jlne.ws/vglL0D
UBS Woes Continue With $12 Million Fine
TheStreet.com
NEW YORK (TheStreet) –T he Financial Industry Regulatory Authority (FINRA) fined UBS $12 million for “failing to properly supervise short sales of securities.” In a press release Tuesday, FINRA described a UBS supervisory system as “significantly flawed,” leading to “serious” violations of a trading rule known as RegSHO “across its equities trading business.” RegSHO requires dealers such as UBS …
http://jlne.ws/sGFyaD
FINRA Fines UBS Securities $12 Million For Regulation SHO Violations And Supervisory Failures
Press Release
The Financial Industry Regulatory Authority (FINRA) announced today that it has fined UBS Securities LLC $12 million for violating Regulation SHO (Reg SHO) and failing to properly supervise short sales of securities. As a result of these violations, millions of short sale orders were mismarked and/or placed to the market without reasonable grounds to believe that the securities could be borrowed and delivered.
http://jlne.ws/vEQ5aP
Absolute Immunity for FINRA: FUHGEDDABOUDIT
Forbes
Should FINRA, the brokerage industry’s self- regulatory organization, have absolute immunity from lawsuits???even when FINRA issues a false and misleading proxy statement to its membership? As a former SEC attorney and owner of a FINRA-member brokerage for more than 20 years, in 2008 I thought the answer to this question was pretty simple. Almost four years later, I’m still waiting to learn …
http://jlne.ws/sJd2e7
Quick View: SEC shines light into dark pools
By Telis Demos – Financial Times
After two years, the Securities and Exchange Commission is finally shining a bit of light into dark pools. On Monday the SEC announced it had settled the first-ever charges against a dark pool operator, Pipeline Trading Systems, charging it with not being forthcoming with its customers about how exactly it handles orders.
http://jlne.ws/rz5aTL
US CFTC cancels meeting to accommodate commissioner
Reuters Company Finance News via Yahoo! Finance
WASHINGTON, Oct 25 (Reuters) – The U.S. futures regulator said on Tuesday it has canceled its latest rule-making meeting scheduled for Nov. 1 in order to accommodate a new commissioner. After nearly a five-month …
http://jlne.ws/rQ6fCi
SEC Announces Agenda For First Meeting Of Advisory Committee On Small And Emerging Companies
Press Release
The Securities and Exchange Commission today announced the
http://jlne.ws/sFTYCi
Commission panel permanently bans U.S. man for $6 million fraud
Press Release
Vancouver – A British Columbia Securities Commission panel has ruled that a United States citizen operating under an assumed name in British Columbia committed a fraud when he sold securities in two B.C. companies to hundreds of investors. Between February 2008 and March 2010, Robert Lee Flickinger II (a.k.a. Robert Reynolds), sold limited partnership units in Lavaca III Limited Partnership and Gulf Coast Basin Limited Partnership to over 200 investors, promising them that their investment would be used for the acquisition and production of oil and gas properties. None of the money was used for that purpose.
http://jlne.ws/soyvbz
October – Investor Education Month – AMF is source of objective information about travel insurance
Press Release
Montréal – As the days draw in, many Quebeckers are planning their next sun vacation or holiday outside the province. The Autorité des marchés financiers (the “AMF”) wishes to offer travellers some advice to ensure that they have adequate travel insurance.
http://jlne.ws/smTx90
ASIC accepts enforceable undertaking from Commonwealth Financial Planning
Press Release
ASIC today announced it has accepted an enforceable undertaking (EU) from Commonwealth Financial Planning Limited (CFP) following an investigation into the provision of advice by some of its financial advisers.
http://jlne.ws/t0Wwuo
ASIC appoints new Queensland Regional Commissioner
Press Release
ASIC Chairman Mr Greg Medcraft today welcomed the appointment of ASIC Senior Executive Leader Brett Bassett as Queensland Regional Commissioner.
http://jlne.ws/uUhUEz
Investments – Indexes – Managed Futures – Managed Funds
KKR Said to Seek Up to $6 Billion for Second Asia Buyout Fund
BusinessWeek
KKR & Co., the U.S. buyout firm co- founded by Henry Kravis, is seeking as much as $6 billion for its second Asian buyout fund, according to a person with direct knowledge of the plan.
http://jlne.ws/u3s4LH
How One Hedge Fund Beat The Market In August
Forbes
How shorting China and buying less risky options instead of stock helped one hedge fund profit in the August volatility.
http://jlne.ws/rxTJEx
Robert Bass, General Atlantic Invest In Oak Hill Advisors
Wall Street Journal Blogs
Texas billionaire Robert M. Bass and growth-capital-private-equity firm General Atlantic LLC have acquired stakes in credit-investment firm Oak Hill Advisors L.P., in a sign that corporate debt remains in vogue among private-equity investors.
http://jlne.ws/tLmyA0
Unscheduled free float adjustment in SDAX
Press Release
http://jlne.ws/tain8L
Technology News
Bloomberg Named ‘Technology Company of the Year’ by Asia Risk
Business Wire
HONG KONG–(BUSINESS WIRE)–Asia Risk selects Bloomberg the “Technology Company of the Year 2011″, for creating innovative technology, data and analytics that increased participation and investment in APAC derivatives markets.
http://jlne.ws/so6fG2
Automated Online Trading Technology Available for Sale at Upcoming ICAP Patent Brokerage Fall 2011 Live IP Auction …
PR Newswire
SAN FRANCISCO, Oct. 25, 2011 /PRNewswire/ — ICAP Patent Brokerage, the global leader in intellectual property brokerage and a division of ICAP plc, the world’s premier interdealer broker, and ICAP Ocean Tomo Auctions, are offering for sale technology related to automated online trading…
http://jlne.ws/rJlelj
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
Vietnam eyes merger of two exchanges
By Jeremy Grant in London – Financial Times
Vietnam is working on a plan to merge its two stock exchanges in a sign that some countries are starting to believe that having a single bourse is needed to ensure the survival of their capital market infrastructure as mega-exchanges span the globe.
http://jlne.ws/tWkDJC
Bank of China Beats HSBC as Dim Sum Market Opened: China Credit
BusinessWeek
Bank of China Ltd. is overtaking HSBC Holdings Plc. to become the top underwriter of yuan bonds in Hong Kong this month after Vice Premier Li Keqiang allowed domestic companies to tap the city’s lower borrowing costs.
http://jlne.ws/tUt1OH
CFTC Staff Allows Taiwan Futures Exchange’s Futures Contract Based On The GreTai Securities Market Capitalized Weighted Stock Index
Press Release
The Commodity Futures Trading Commission’s (CFTC’s) Office of General Counsel today announced that it issued a no-action letter on October 24, 2011, permitting the offer and sale in the United States of Taiwan Futures Exchange’s futures contract based on the GTEX.
http://jlne.ws/tNpgF1
Analysis: China expected to spurn Europe’s bailout fund
Reuters via Yahoo! News
HONG KONG/NEW YORK (Reuters)- China is expected to steer clear of Europe’s bailout fund and its investment vehicles as regulators and politicians scramble to pull together a plan aimed at expanding the debt clean-up.
http://jlne.ws/tPBrIB
Tokyo Grain Exchange: SPAN Parameters Effective From November 1, 2011 To November 15, 2011
Press Release
http://jlne.ws/w4wPEm
Tokyo Stock Exchange: Request In Relation To Recent Issues Pertaining To Listed Companies
Press Release
http://jlne.ws/vNN305
[TFX] Six-month Euroyen LIBOR Futures
Press Release
http://jlne.ws/vo0oWD
Frontier Markets
HSBC Launches the Emerging Markets Debt Fund in Canada
CNW Group Finance Press Releases via Yahoo! Finance
VANCOUVER , Oct. 25, 2011 /CNW/ – HSBC Global Asset Management ( Canada ) Limited, manager of the HSBC Mutual Funds, has launched the HSBC Emerging Markets Debt Fund in Canada .
http://jlne.ws/s5QElM
Derivatives Trading At BSE On 25th October 2011
Press Release
http://jlne.ws/vIzFRU
Miscellaneous News
Be bold, Mario, put out that fire
By Martin Wolf – Financial Times
Dear Mario,
Congratulations and commiserations: next week, you will take up one of the most important central banking jobs in the world; but you will also bear a frightful responsibility. The European Central Bank alone has the power to quell the eurozone crisis. You must choose between two paths: the orthodox one leads towards failure; the unorthodox one should lead towards success.
http://jlne.ws/vWFdVH
Why Paul Volcker Soured on His Own Rule
Time Magazine
The Volcker Rule, which was passed as part of the Dodd-Frank financial reform bill and is supposed to ban risky trading by large banks, doesn’t have a lot of fans
http://jlne.ws/se8o3S
Bankers, quit whining about the Volcker Rule
CNN Money
Could constraining the behavior of dealers in the short-term have a negative impact on financial markets and therefore financing costs? Sure, it could. But reform isn’t free, and it’s not the end of the world.
http://jlne.ws/v433WD
Billionaire Living Out of Tote Bag Amasses Fortune to Give Away
Bloomberg
Nicolas Berggruen can’t sit still. An hour into our interview, at the poolside restaurant of the Hotel Cipriani in Venice, Italy, the billionaire investor glances at the lunchtime crowd drifting over from their sun loungers. He fidgets. His fingers pirouette along the table edge. Polishing off a cappuccino that’s heaped with mounds of whipped cream, he suggests we move.
http://jlne.ws/vPSUYI
Don’t Mix The Ecclesiastical With The Economical
NPR
On Monday, the Vatican released a document examining the financial crisis and calling for a new world economic authority. Commentator Thomas E. Woods Jr. says that although the church may be a moral authority, it shouldn’t be an economic one.
http://jlne.ws/rZCrzn
