In the “important but unsurprising” department, MF Global appears to have improperly used customer funds for its own trading. DB-NYSE Euronext confirms that they have submitted a proposal regarding their anticipated merger. The CFTC’s Bart Chilton declares his support for voice broking with regard to SEF derivative deals, opposite the perspective of CFTC chairman Gary Gensler. Mexico’s main exchange reveals plans to allow block trading of stocks to compete with dark pools in the U.S. And underneath the headlines, the usual hum of news regarding European bank woes and the Occupy movement continues. Subscribe to the daily newsletter here.
Observations – Statistics – Commentary
Judge Approves Transfer Of 22,000+ MF Global Accounts To New Firms
By Joseph Checkler Of DOW JONES DAILY BANKRUPTCY REVIEW
NEW YORK (Dow Jones)–A judge approved on Thursday the transfer of more than 22,000 MF Global Holdings Ltd. (MFGLQ) brokerage accounts to new dealers, granting an emergency request from the trustee unwinding the company’s brokerage.
http://jlne.ws/vrXZkD
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ICE Clear U.S. Completes Transfer Of MF Global Positions
Press Release
IntercontinentalExchange (NYSE: ICE), a leading operator of global regulated futures exchanges, clearing houses and over-the-counter (OTC) markets, today announced that ICE Clear U.S. has completed the transfer or closure of all MF Global customer positions executed on ICE Futures U.S. and held at the clearing house.
http://jlne.ws/tkFMaF
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NFA Signs Agreement with Tullett Prebon to Provide Regulatory Services to Tullett Prebon’s Swap Execution Facility
Press Release
November 17, 2011, Chicago and New York - National Futures Association (NFA) and Tullett Prebon today announced that they have entered into an agreement that paves the way for NFA to perform regulatory services for Tullett Prebon’s swap execution facility (SEF). The Agreement establishes a preliminary framework for the exchange of information and the development of technology standards that will enable Tullett Prebon and NFA to develop, test and launch automated trade practice and surveillance systems and also to develop procedures and processes necessary for Tullett Prebon to fulfill its SEF self-regulatory obligations.
http://jlne.ws/uv9yUQ
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Mexican Exchange To Speed Up Trading, Compete With ‘Dark Pools’
By ERIN MCCARTHY AND BRENDAN CONWAY Of DOW JONES NEWSWIRES
NEW YORK — Mexico’s main exchange operator said it is creating a new type of block trading in stocks to compete with U.S. dark pools and is also launching a faster trading engine to lure more high-frequency traders, top exchange executives said Thursday.
http://jlne.ws/vuBWqo
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NYPC Awarded “Best Innovation by a Clearinghouse, North America” by Futures and Options World, 2011
Press Release
NEW YORK, NY–November 17, 2011–New York Portfolio Clearing, LLC (NYPC), the innovative new clearing platform for interest rate futures, today announced that it has been awarded “Best Innovation by a Clearing House, North America,” by Futures and Options World (FOW), 2011.
http://jlne.ws/tAcQDH
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ICE Futures US: Cotton No. 2 Daily Price Expands To 5 Cents [PDF]
Press Release
Effective with the start of trading for Friday, November 18, 2011, the Daily Trading Limit for all Cotton No. 2 futures delivery months will expand to 5 cents per pound (500 points) above and below the prior day Settlement.
http://jlne.ws/tod0Tp
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Exclusive: Lax security at Nasdaq helped hackers
Reuters via Yahoo! News
WASHINGTON (Reuters) – A federal investigation into last year’s cyber attack on Nasdaq OMX Group found surprisingly lax security practices that made the exchange operator an easy target for hackers, people with knowledge of the probe said. The sources did not want to be identified because the matter is classified. The ongoing probe by the Federal Bureau of Investigation is focused on Nasdaq’s …
http://jlne.ws/vqaQGl
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Real Free Market Capitalists Demand that Financial Fraud Be Prosecuted
Zero Hedge
There is a widespread myth that free market supporters are against regulation or prosecuting fraud. In fact, Adam Smith – the father of free market capitalism – was for regulation of banks, and believed that trust is vital for a healthy economy . Because strong enforcement of laws against fraud is a basic prerequisite for trust , Smith would be disgusted by the lack of prosecution of Wall …
http://jlne.ws/tcOjIb
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JLN Interest Rates Newsletter
ISDA: The Electronic Execution Mandate
In a podcast, ISDA Chief Executive Officer Conrad Voldstad and Executive Vice Chairman Robert Pickel discuss the Commodity Futures Trading Commission’s (CFTC) Electronic Execution Mandate (EEM) and ISDA’s new discussion paper that assesses the mandate’s costs and benefits. Also, in a new post “Small-User Benefit Amounts To Small Change,” ISDA focuses on one of the key issues in the discussion paper – the alleged benefits of the EEM to small users.
See the ISDA postings here: http://jlne.ws/pZFQ0O
Factor Advisors Says Large-Cap U.S. Stocks And T-Bonds Moving In Opposite Directions – Most Since Early 2003
According to asset managment firm Factor Advisors, from a longer-term perspective, the correlation between large-cap U.S. stocks and T-Bonds is at a historical low — the 30-month correlation between the S&P 500 and the T-Bond hit its lowest point in over three decades on Oct. 31, 2011. Despite its lower credit rating, T-Bonds have been used for protection even though they are perceived by rating agencies to be “riskier” than in the past.
Dudley: Fed Options Include Bond Buying
By Steve Matthews and Caroline Salas Gage, Bloomberg
Federal Reserve Bank of New York President William C. Dudley said there’s more the Fed could do to boost the economy, such as providing clearer guidance on how long interest rates will stay low or resuming asset purchases.
http://jlne.ws/seCbl0
Fed’s Pianalto: European Slowdown Could Trim 0.5% From U.S. Growth
By Doug Cameron, WSJ.com
A U.S. Federal Reserve official said Thursday that she sees signs of inflationary pressure moderating, and upgraded her growth forecasts for the next two years.
http://jlne.ws/sTmvps
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MarketsWiki Page of the Day
Patrick Fitzgerald
http://jlne.ws/uqCZDu
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MarketsWiki Recent Updates
People
Li Wen Long; Patrick Fitzgerald
Companies, Organizations and Groups
Fidessa group plc; Tradeweb; MF Global Holdings Ltd; TradeStation Securities; Tullett Prebon Ltd; Securities Investor Protection Corporation
Miscellaneous
Swap execution facility; Directive on Alternative Investment Fund Managers; Five Minutes With Joanna Mallers; Upcoming Events
Statistics
15,804,130 pages viewed, 6,564 articles, 132,237 edits
MarketsWiki Statistics
Lead Stories
MF Global Is Said to Have Used Customer Cash Improperly
New York Times
MF Global borrowed against customer funds without putting up collateral, a serious violation of Wall Street rules, said people briefed on an investigation into the firm’s collapse.
http://jlne.ws/vJiYkY
Deutsche Börse AG and NYSE Euronext confirm submission of remedy proposal
Press Release
Deutsche Börse: New York, Frankfurt, November 18, 2011 — NYSE Euronext (NYSE:NYX) and Deutsche Börse AG (XETRA: DB1) today confirm that they have submitted a remedy proposal to the European Commission’s Directorate-General for Competition (DG Competition). The proposed remedies are designed to address the remaining concerns of DG Competition in derivatives trading and clearing while preserving the compelling industrial logic of the transaction. The remedy proposal aims at eliminating the existing overlap in European single equity derivatives and ensures continued competition in European interest rate and equity index derivatives.
http://jlne.ws/unelYh
CFTC’s Chilton supports voice broking
By Jeremy Grant in London – Financial Times
Bart Chilton, a commissioner at the Commodity Futures Trading Commission, has thrown his weight behind preserving voice broking as a way of executing derivatives deals within the definition of how “swap execution facilities” (SEFs) are to function. Mr Chilton’s stance places the commissioner, a Democrat, at odds with Gary Gensler, the CFTC chairman, who wants to ensure that prices on SEFs be quoted and disseminated to a wide variety of market participants in the interest of greater transparency.
http://jlne.ws/vOVtql
Crisis Ensnares Central Bank in Desperate Bid to Save Euro
BY BRIAN BLACKSTONE AND MATTHEW KARNITSCHNIG – WSJ
FRANKFURT—At a mid-July meeting of the European Central Bank’s governing board, the bank’s longtime president, Jean-Claude Trichet, was summoned from a conference room to take an urgent call from Berlin. It was Angela Merkel. The German chancellor and French President Nicolas Sarkozy were about to meet in Berlin to deal with Greece’s debt crisis and were at odds over what losses investors might be forced to take. They hoped the ECB could broker a compromise.
http://jlne.ws/swE4QY
Draghi turns tables on eurozone leaders
By Ralph Atkins in Frankfurt – Financial Times
Mario Draghi has turned the tables on eurozone leaders by demanding they implement urgently measures to combat the escalating debt crisis, and warned of massive economic and social costs if instead the European Central Bank’s credibility was put at stake.
http://jlne.ws/t2nPGR
Hungary’s unorthodox mix makes new IMF deal tough
Hartford Courant
BUDAPEST (Reuters) – Hungary will tell the International Monetary Fund on Friday it wants a new “insurance” deal to shield it from the storm engulfing the euro zone, but Budapest faces tough talks with the Fund if it sticks to its unorthodox policies.
http://jlne.ws/v9x2gt
European bank funding slows to a trickle
By Tracy Alloway – Financial Times
A recent Bank of Italy warning on funding of the country’s banks is starting to come true. Just last month, the central bank said a persistent shortage of long-term financing could “distort” the strategies of commercial Italian banks. On Wednesday, UniCredit, Italy’s biggest bank, announced a retrenchment in its investment banking business as it seeks to shore up its balance sheet. Then Federico Ghizzoni, chief executive, urged the European Central Bank to increase access to its financing for Italian banks.
http://jlne.ws/tqRUrj
Greek bond losses put role of CDS in doubt
By Gillian Tett – Financial Times
Earlier this year, Deutsche Bank quietly decided to reduce its exposure to Italian government bonds. But it did not do that by simply selling debt; instead it achieved this partly by buying protection against sovereign default with credit derivatives contracts. That duly enabled the doughty German giant to report that its exposure to Italian sovereign bonds had dropped an impressive 88 per cent during the first half of the year – at least, when measured on a net basis – from E8bn to less than E1bn.
http://jlne.ws/rIs5FB
The dangerous cocktail of global money and local politics
Moises Naim – Financial Times
The elites didn’t revolt and the people didn’t take to the streets. What ended Silvio Berlusconi’s 17-year run as Italy’s most powerful man was the skyrocketing spread between Italian bonds and the German bunds. Had this stayed at under five per cent, Il Cavaliere would still be in power today.
http://jlne.ws/rHilp7
MF Global News
MF Global Said to Have Shifted Client Funds to Own Brokerage
BusinessWeek
MF Global Holdings Ltd. moved hundreds of millions of dollars from its futures client accounts to its own securities brokerage before its Oct. 31 bankruptcy, according to person familiar with the audit of the company.
http://jlne.ws/vrUHsZ
CME May Face ‘Liability’ In MF Global Disclosure, Goldman Says
By Matthew Leising and Silla Brush – Bloomberg
Nov. 17 (Bloomberg) — CME Group Inc., the world’s largest futures exchange that’s fallen 8.5 percent this week, may face liability related to concerns it misled regulators over what it knew about MF Global Holdings Ltd., according to Goldman Sachs Group Inc.
http://jlne.ws/su2iN0
CME: Followed CFTC, Exchange Rules In Review Of MF Global Books
By Jacob Bunge, Of DOW JONES NEWSWIRES
CME Group Inc. (CME) reiterated Thursday that it followed all proper protocols in its review of MF Global Holdings Ltd. (MFGLQ), following reports that the exchange operator was slow to report a shortfall in customer funds held by the broker-dealer.
http://jlne.ws/v4jWq4
CME Group Statement On MF Global Segregation Violation
Press Release
In response to inaccuracies reported yesterday, CME Group confirmed today that it followed CFTC requirements and CME Rules and procedures in reviewing MF Global’s segregated funds statements and coordinating that review with the CFTC. CME was advised in the early hours of
http://jlne.ws/vlnMS8
UK staff cut as court frees MF Global cash
By Philip Stafford in London, Hal Weitzman in Chicago and Gregory Meyer in New York – Financial Times
MF Global’s UK arm is to axe more than half its workforce of about 725 as KPMG, its special administrator, winds down the overseas operations of the failed US-based futures broker.
http://jlne.ws/vguBwN
Volcker Rule Is Irrelevant to MF Global Collapse: Frank Keating
BusinessWeek
Schadenfreude is misplaced when considering the wreckage of a financial firm in today’s weak economy. Yet empathy for the employees of MF Global Holdings Ltd. and the investors who owned its shares also is compatible with gratitude that no government agency came to the rescue.
http://jlne.ws/sJhhH0
Risk-Taker Corzine Now Under Fire for Big Bets
Fox News
Former U.S. Senator and New Jersey Gov. Jon Corzine is a man known for taking risks. In 2007, he wasn’t wearing a seatbelt when his chauffeur-driven SUV crashed on the New Jersey Turnpike doing 90 miles per hour. Corzine was severely injured.
http://jlne.ws/suIw7b
Environmental Trading News
Obama: Cutting CO2 Helps Economy
Forbes
During an official visit Down Under, Obama praises Australia’s new carbon pollution law, calling it a ‘bold strategy’ that’s ‘good for our economies.’
http://jlne.ws/vAO2ZG
EU Rules May Soak Up $93 Billion of Utility Cash: Energy Markets
Bloomberg
Companies from RWE AG (RWE) to Vattenfall AB may have to find an extra 69 billion euros ($93 billion) to meet unprecedented European Union regulations designed to crack down on speculation in the region’s energy markets.
http://jlne.ws/sefC96
Green Exchange Holiday Hours for Thanksgiving
Press Release
http://jlne.ws/vEOaxW
“Validated Carbon Credits”: a Correction, a Confirmation, Questions, and No Hint of an Apology
By Richard Smith – Naked Capitalism
Validated Carbon Credits is a trading name of Baron Traders Limited, a company operated by an expatriate British scammer called James Richards. I wrote about him here; when he popped up in the post’s comments threatening litigation, I snarled at him a little. Now I have a few minor updates.
http://jlne.ws/sm65V6
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
D.Boerse, NYSE propose remedies to seal mega-deal
Reuters via Yahoo! News
FRANKFURT (Reuters) – Exchanges Deutsche Boerse AG and NYSE Euronext will sell some businesses and give rivals access to a major derivatives clearing house in concessions aimed at winning support from antitrust regulators for their $9 billion merger. People working directly on the deal told Reuters the exchange operators submitted the plan to the European Commission late on Thursday, the …
http://jlne.ws/tNmWBX
NYSE and D Börse gamble on concessions
By Alex Barker in Brussels and Jeremy Grant in London – Financial Times
NYSE Euronext and Deutsche Börse have launched a high-stakes gamble to assuage serious competition concerns in Brussels over the exchanges’ planned merger with a package of concessions offering rivals partial access to their Germany-based clearing house.
http://jlne.ws/rRpdI3
Global Investment Further Strengthens the Mexican Exchange (BMV Group)
Press Release
NEW YORK, Nov 17, 2011 (BUSINESS WIRE) — The Mexican Exchange (BMV Group), the second largest exchange in Latin America and home to some of the world’s leading companies, today announces the successful implementation of a number of strategic initiatives designed to further promote foreign investment in the Mexican financial markets. Senior exchange leadership, including Luis Tellez, President and CEO of BMV Group, are hosting the “2nd Annual Connect & Trade Mexico” event today in New York City to discuss the new benefits for global investors and how the Exchange has succeeded in closing the gap to international standards.
http://jlne.ws/vwCg2A
Banks in Italy Find an Unusual Liquidity Lifeline
By MARK SCOTT – NY Times
LONDON — The London Stock Exchange is becoming the lender of last resort for many banks in Italy as concerns over the country’s debt levels squeeze liquidity out of the Italian financial market.
http://jlne.ws/tKdZDO
[ASX] Content sharing agreement brings world-class equity options research to Australia
Press Release
The Australian Securities Exchange (ASX) has entered into a content sharing agreement with the United States Options Industry Council (OIC), the premier body in the US created to educate investors and financial advisers about the benefits and risks of exchange-traded equity options.
http://jlne.ws/uN2lX1
ICE Futures US: Revisions to Spread Margin Rates [PDF]
Press Release
Effective Monday, November 21, 2011, ICE Clear U.S. and the Exchange will implement revised margin rates for agricultural futures spread positions. In many cases the new rate schedule will result in significantly lower margin rates for spreads involving two futures contract months (or “simple spreads”) and also for butterfly spread positions involving three futures contract months, as described below.
http://jlne.ws/t8odu2
N2EX Announces Spot Market Volume Test 21 December 2011
Press Release
There will be a spot market volume test on Wednesday 21 December between 10 a.m. and 2 p.m. All N2EX members have the opportunity to provide volume on the N2EX spot market to stress test their systems in a live environment during this time.
http://jlne.ws/uck2tP
WSE Introduces Futures On The Stock Of The First Foreign Company
Press Release
http://jlne.ws/u1TWdp
CME Group Clearing Advisory [PDF]
Press Release
REMINDER: File Packaging and VPS Decommission – Effective November 21st, 2011
http://jlne.ws/rvugth
[CBOE] Restrictions on Transactions in General Maritime Corporation (“GMR”)
Press Release
http://jlne.ws/tXGFG0
[CBOE] Relocation of the Industrial Select SPDR Fund (XLI) and the Consumer Discretionary Select SPDR Fund (XLY) Option Classes
Press Release
http://jlne.ws/tvle4n
[CBOE] Clarification Regarding Limited Extension to Deadline to Comply with Registration and Qualification Requirements
Press Release
http://jlne.ws/rEUAz6
Program Trading Averaged 30.3 Percent of NYSE Volume during Nov. 7-11
Press Release
http://jlne.ws/uMIraG
NYSE to Suspend Trading in General Maritime Corporation Moves to Remove from the List
Press Release
http://jlne.ws/sTn3Rt
BM&F BOVESPA S.A. – Bolsa de Valores, Mercadorias e Futuros – The Brazilian Stock, Commodities and Futures Exchange – Dividends Distributed To Shareholders
Press Release
http://jlne.ws/vYAXrj
The MiG Report October 2011 – Brought To You By: The Market Intelligence Group At TSX And TSX Venture Exchange
Press Release
http://jlne.ws/tGMR5E
NASDAQ OMX Commodities Welcomes Mercuria Energy Trading SA To The UK Power Futures Market
Press Release
http://jlne.ws/rXP9PF
RTS Group Weekly Trading Results
Press Release
http://jlne.ws/sQBqXz
Banks, Brokers & Dark Pools
Jefferies In Clearing Partnership With BNY Mellon; Nabs Clients From MF Global
By Brett Philbin Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)–Jefferies Group Inc. (JEF), the midsize investment bank that has recently faced questions about its European exposure, unveiled a clearing partnership with Bank of New York Mellon Corp. (BK) and said it has attracted some “dislocated” clients from bankrupt MF Global Holdings Ltd. (MFGLQ). The moves represent a return to some degree of normalcy for Jefferies, which earlier this month spent a week allaying investors’ concerns about how much it could stand to lose if European banks defaulted on their debt. The company’s stock is down 22% this month. “We want everyone to be aware that we are open for business and are focused on our clients as always,” said Brian Friedman, chairman of Jefferies’ executive committee, in an interview.
BNY Melon Clearing, LLC Selects Jefferies Bache To Partner On Clearing Initiatives
Press Release
http://jlne.ws/tPZqYE
Swiss Central Bank Forces MegaBanks UBS and Credit Suisse to Shrink and De-Risk
Naked Capitalism
The Financial Times gives prominent play to a story that I suspect will go largely unnoticed in the US, that of the way that the Switzerland’s bank regulator, the Swiss National Bank, has forced its two biggest banks, UBS and Credit Suisse, to shed risk in a serious way and shrink.
http://jlne.ws/tuDAqo
Banks Face On-Site Capital, Liquidity Checks by Basel Group
BusinessWeek
Global regulators will carry out on- site inspections of banks to ensure they have enough capital and liquidity under rules designed to prevent another financial crisis.
http://jlne.ws/sUR2gK
Morgan Stanley Hires Guggenheim’s Lindquist for Asset Management
BusinessWeek
Morgan Stanley, owner of the world’s largest brokerage, hired Richard Lindquist from Guggenheim Partners LLC as head of high yield in its asset-management business.
http://jlne.ws/sPvkYo
UBS to take axe to investment banking
By Haig Simonian in Zurich and Megan Murphy in New York – Financial Times
UBS has outlined long-awaited plans to shrink its business dramatically and refocus on its core wealth management operations, making deep cuts to its investment bank.
http://jlne.ws/v1zZ3Z
UBS Sets Profitability Goal, First Cash Dividend in Five Years
BusinessWeek
UBS AG, Switzerland’s biggest bank, set a target for profitability, announced its first cash dividend in five years and said it will shrink the investment bank to concentrate on wealth management.
http://jlne.ws/vF76lZ
UBS Plans Lay-Offs In Cuts To Investing Business
Forbes
UBS is among the banking institutions in Europe that can sleep more soundly these days, as the Swiss bank holds a good amount of capital requirements to meet the standards set forth in the Basel III requirements. Thursday UBS took a further measure to distance itself from the euro zone’s bad assets by moving away from its investment banking business. The company also said it will reduce its …
http://jlne.ws/uVlOhg
ABN Amro takes E500m Greek hit
By Matt Steinglass in Amsterdam – Financial Times
Dutch bank ABN Amro, which was taken over by the state during the 2008 financial crisis, reported a blow to its hopes to return to the private sector as its profits in the third quarter were wiped out by a E500m ($675m) impairment on its holdings of E1.4bn in Greek government-guaranteed corporate bonds.
http://jlne.ws/sVPdop
Tullett Prebon slows down in helter-skelter markets
By Alistair Gray – Financial Times
Tullett Prebon has become the second inter-dealer broker this week to report a slowing of activity in helter-skelter financial markets.
http://jlne.ws/tGuDbs
Macquarie Hiring Advisers in Canada as Brokerages Scale Back
BusinessWeek
Macquarie Group Ltd.’s Canadian brokerage plans to increase advisers by as much as 30 percent within a year as rivals such as HSBC Holdings Plc and UBS AG retrench.
http://jlne.ws/v3P7x9
Sovereign CDS Concerns Shift To Counterparty Risk
By Katy Burne Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)–Investors and policy makers scrambling to determine how banks may be hurt by losses on risky European sovereign debt are looking beyond the hedges those banks have on and are trying to determine how reliable the banks’ trading partners are. Banks have tried to reduce their exposures to sovereign debt by entering into credit-default swaps, an insurance-like contract designed to pay out if the issuer of the underlying bond fails to make repayments or forces a change in terms, such as reducing the amount of principal it will pay when the debt matures.
S&P to update bank credit ratings within 3 weeks
Reuters via Yahoo! News
(Reuters) – Standard & Poor’s plans to update its credit ratings for the world’s 30 biggest banks within three weeks and may well mete out a few downgrades in the process, possibly surprising battered global bond markets. Among the institutions that could be downgraded are Bank of America Corp , Citigroup Inc and Morgan Stanley , said Baylor Lancaster, an analyst at CreditSights Inc. Spokesmen …
http://jlne.ws/ufGAx0
Deutsche Bank Denies Two Top Managers Called For Early CEO Exit
Dow Jones
FRANKFURT -(Dow Jones)- Germany’sDeutsche Bank AG (DB) Friday denied that two unnamed executive board members have called for Chief Executive Josef Ackermann to leave his position earlier than planned, as reported in Friday’s edition of Handelsblatt newspaper.
http://jlne.ws/vm4Y4M
Currensee Launches Foreign Exchange Investment Service for Institutional Clients
Press Release
BOSTON, MA, Nov 17, 2011 (MARKETWIRE via COMTEX) — Currensee ( www.currensee.com ), the leader in bringing the world currency markets to investors and financial institutions across the globe, today launched the availability of its Trade Leaders(TM) Investment Program for institutional clients and their investors.
http://jlne.ws/t1Mymz
TradeStation Announces Launch of All-New Options Trading Platform
GlobeNewswire Finance Press Releases via Yahoo! Finance
PLANTATION, Fla. — TradeStation, the award-winning broker-dealer for stock, options, futures and forex traders, today announced the launch of its all-new OptionStation Pro options trading platform. The …
http://jlne.ws/sDECao
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/dig111811.htm
Florida Man Charged With Selling Fake Investments in Facebook, Groupon
Bloomberg
The U.S. charged a South Florida man with running an $11 million scam that lured investors into paying for non-existent shares in closely held companies including Facebook Inc. and Groupon Inc.
http://jlne.ws/vTlsH5
SEC Halts Scam Touting Access to Pre-IPO Shares of Facebook and Groupon
Press Release
Washington, D.C., Nov. 17, 2011 — The Securities and Exchange Commission today filed an emergency enforcement action to stop a fraudulent scheme targeting investors seeking coveted stock in Internet and technology companies like Facebook and Groupon in advance of a public offering.
http://jlne.ws/sTeBFj
Hoenig Tells Lawmakers Fed Career Prepared Him for FDIC Role
Bloomberg
Thomas Hoenig told lawmakers that his 38 years of experience in bank supervision and regulation while working in the Federal Reserve System have prepared him for the No. 2 job at the Federal Deposit Insurance Corp.
http://jlne.ws/rUU74e
FDIC Nominee, Investor Fraud, MF Global, Sandoz: Compliance
Bloomberg
Federal Deposit Insurance Corp. nominee Thomas Hoenig told lawmakers that large financial firms must be accountable for their own capital and risk-taking and shouldn’t count on government help in the event of a collapse.
http://jlne.ws/ubfBIj
Former hedge fund chief gets 20 years in prison for fraud
Chicago Sun-Times
A former managing director of a Chicago hedge fund was sentenced to 20 years in prison Thursday after he admitted to a scheme that cost 900 investors $294 million.U.S. District Judge John Darrah sentenced Philip Baker, 46, to 20 years – the maximum allowed – after Baker pleaded guilty in August to wire fraud.Baker is a Canadian citizen who ran the now-defunct Lake Shore Asset Management Ltd …
http://jlne.ws/ugpgNk
Galleon Says It Was ‘Victim’ of Skowron Crimes as He Faces Judge
BusinessWeek
Galleon Group LLC, the defunct hedge fund at the center of the biggest insider trading scheme in U.S. history, is seeking restitution as a victim of the crimes committed by Joseph F. “Chip” Skowron, the ex-FrontPoint Partners LLC fund manager to be sentenced today.
http://jlne.ws/uN3QUU
Prosecutors seek leniency in sentencing for ex-UBS banker because of assistance in tax probes
Washington Post
MIAMI – Federal prosecutors are seeking a lenient prison sentence for a former Swiss banker convicted of tax fraud because of his assistance in uncovering other tax evasion cases. A judge in Miami will sentence former UBS AG banker Renzo Gadola on Friday. He pleaded guilty in 2010 to tax fraud conspiracy and has been working extensively with prosecutors since then. Read full article
http://jlne.ws/tp8Fyw
Facilitating Small Business Capital Formation Does Not Need To Be At the Expense Of Protecting Investors – SEC Commissioner Luis A. Aguilar
Press Release
http://jlne.ws/vBczr0
Small Business Capital Formation – SEC Commissioner Troy A. Paredes
Press Release
http://jlne.ws/uxMCrn
Remarks At The 2011 SEC Government-Business Forum On Small Business Capital Formation – SEC Commissioner Daniel Gallagher
Press Release
http://jlne.ws/vVUI9n
The Autorite Des Marches Financiers Opens An Investigation After Standard & Poor’s Dissemination Of Mistaken Information
Press Release
The AMF Secretary General opened an investigation after the rating agency Standard & Poor’sindicated that it had mistakenly sent a message announcing a downgrade of France’s credit rating to some of its clients.
http://jlne.ws/uXsGFT
Gold Coast company director jailed for 7.5 years
Press Release
A Gold Coast-based company director who defrauded investors in a property unit trust of $2 million has been sentenced to seven-and-a-half years in jail following an ASIC investigation.
http://jlne.ws/uPLg4x
Former Schwab Employee Lost Defamation Arbitration But Employer Gets Slammed By Panel
Forbes
It seems like the former employee won his defamation case against Schwab except for the fact that the FINRA Arbitration Panel denied his claims.
http://jlne.ws/rFBBHn
Investments – Indexes – Managed Futures – Managed Funds
Coffey Gets Second Chance From Moore as Returns Fail to Impress
BusinessWeek
Greg Coffey was described by Louis Moore Bacon as “one of the most impressive traders in the world” when the billionaire founder of Moore Capital Management LLC hired him in 2008 to help manage his hedge funds. His investment performance since has been subpar.
http://jlne.ws/sHoLzY
Miller hands over Legg Mason Value Trust
By Dan McCrum in New York – Financial Times
Bill Miller, one of the most successful US stock-pickers of his generation, is to retire from management of Legg Mason’s flagship Capital Management Value Trust, following its dismal performance in recent years.
http://jlne.ws/tCVb5w
End Of An Era: Bill Miller To Step Down At Legg Mason Value Trust
Forbes via Yahoo! News
Legendary manager to give up oversight of flagship fund.
http://jlne.ws/rytwjl
Legg Mason’s Miller to step down from main fund
Reuters via Yahoo! News
(Reuters) – Bill Miller, a star mutual fund stock-picker who posted a 15-year-long winning streak before losing his touch as the financial crisis hit, will step down from his flagship fund at Legg Mason Inc in April. Sam Peters, 42, who was named co-manager with Miller last year will become the sole manager of the $2.8 billion Value Trust fund and the Value Equity strategy, Legg Mason said on …
http://jlne.ws/rtqOW0
‘Best ideas,’ bad investments
MSN
It goes without saying that a mutual fund represents management’s “best ideas.” No one would ever invest in a fund without believing management was putting forth its top investment strategies.
http://jlne.ws/t6Tdvb
The Nordic Currency That’s Ready to Heat Up
CNBC
The Norwegian krone is getting ready to rise against the currency next door, this strategist says.
http://jlne.ws/uqVmfg
Dow Jones Indexes To License Dow Jones Canada High Dividend 50 Index To Matrix Funds Management For Matrix Dow Jones Canada High Dividend 50 Fund
Press Release
http://jlne.ws/vDZrxb
New Exchange Index WIGPlus Added To The Index Family WIG20, mWIG40 And sWIG80
Press Release
http://jlne.ws/uaY7LE
RTS Indices Weekly Review
Press Release
http://jlne.ws/sc5Ooe
RTS To Employ Prices Of The MICEX FX Market On FORTS And For Calculation Of The RTS Indices
Press Release
http://jlne.ws/tPubgW
Replacements In BSE Indices
Press Release
http://jlne.ws/s3JpQ6
Technology News
Fidessa continues global expansion with new Latin American base in São Paulo
Press Release
New York, November 17, 2011 – Fidessa group plc (LSE: FDSA), provider of high-performance trading, investment management and information solutions for the world’s financial community, has today announced the expansion of its Latin American operations with a new headquarters in the region, new staff and data centers that provide resilient, redundant hosting. This move continues Fidessa’s global growth as the preferred supplier to both the buy-side and sell-side, and builds on the recent expansion of its Asia Pacific business with the opening of its Australian office in Sydney last month.
http://jlne.ws/tPSuFW
SunGard Named “Software Provider of the Year” for the Third Consecutive Year by Private Equity News
Press Release
SunGard has been named Software Provider of the Year by Private Equity News, for the third consecutive year, at its annual Awards for Excellence in Advisory Services.
http://jlne.ws/s0mBg2
Exegy Releases Feed Handler For Bloomberg B-Pipe – Feed Handler Helps Reduce Expenses By Aggregating Direct Data Feeds
Press Release
Exegy, the market data appliance company, today announced a feed handler for Bloomberg’s B-Pipe, a consolidated market data feed. The new feed handler for the Exegy appliance consolidates market feeds from exchanges, brokers and contributors so customers can manage market data flow efficiently and at a lower total cost.
http://jlne.ws/rKGXvA
Trading Continuity Services Joins Telx Financial Business Exchange
Press Release
NEW YORK, NY, Nov 16, 2011 (MARKETWIRE via COMTEX) — Telx(R) today announced that Trading Continuity Services (TCS) has joined the Financial Business Exchange (FBX). As a colocation and InterConnection customer in Telx’s strategically-located data center in downtown Chicago, TCS, a leader in the Data Protection and Disaster Recovery/Business Continuity industry, can now offer Telx’s financial markets customers secure, low latency access to its highly redundant, fully managed Data Protection solutions.
http://jlne.ws/sl80b5
Sky Road Integrates Panopticon Real-Time Data Visualizations into Swap Trader and Motion
Press Release
Stockholm, Sweden, November 17, 2011 – Panopticon Software, the major provider of visual data analysis software for real-time, CEP and historical time series data, today announced that Sky Road, a leading provider of innovative cloud-based solutions to the financial services industry, has integrated Panopticon visual data analysis tools into its Swap Trader application as well as its innovative Motion application platform.
http://jlne.ws/ukDs8S
TwoFour Announces the Release of Version 5.0
Press Release
New York – November 17, 2011 – TwoFour, a specialist provider of global real-time financial software solutions and a trusted consultancy in capital markets today announced the release of Version 5.0 of its software solutions. V5.0 signifies a major technical upgrade to the underlying components of TwoFour’s software solutions, furthering TwoFour’s ongoing commitment to evolving its solutions with the latest technologies.
http://jlne.ws/sqZJKj
Motorola holders approve acquisition by Google
Reuters
Motorola Mobility Holdings Inc. said late Thursday that its stockholders approved the $12.5 billion deal to be acquired by search giant Google.
http://jlne.ws/s2SCCJ
Media News
Zynga Shakes Up Ranks
By EVELYN M. RUSLI – NY Times
Zynga, which is headed for an initial public offering in the next few months, is shaking up its upper ranks.
http://jlne.ws/sY62U4
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
SKorea orders US private fund to sell local bank
AP via Yahoo! News
South Korea’s financial regulator cleared the way Friday for U.S. private equity group Lone Star to sell its controlling stake in a once-troubled South Korean lender.
http://jlne.ws/vTnAKJ
[TSE] Regarding News Reports
Press Release
Today, specific details of merger discussions between Tokyo Stock Exchange and Osaka Securities Exchange were reported in the media. However, there is no factual basis regarding such a decision or announcement at the present time.
http://jlne.ws/vz9P8Z
Tokyo Commodity Exchange Statement On Trading Disruption On November 1, 2011
Press Release
Tokyo Commodity Exchange deeply regrets the inconvenience to market participants and concerned parties fromthe disruption to trading on November 1, 2011.
http://jlne.ws/vYGYdY
Platform Of Communications, Cornerstone Of Mutual Trust – Shenzhen Stock Exchange New Version
Press Release
Shenzhen Stock Exchange (SZSE) launched the “Listed Companies and Investors Relation Interaction Platform of Shenzhen Stock Exchange” on January 1, 2010, being the first to provide a convenient, quick and centralized Internet-based communication channel for the investors and listed companies. Within nearly two years after the platform was launched, both the number of questions from the investors and the response rate of the listed companies have been increasing steadily.
http://jlne.ws/s8bHbg
Monetary Authority Of Singapore Financial Stability Review 2011
Press Release
http://jlne.ws/rr5UWe
Governance group urges Tokyo bourse not to delist Olympus
Reuters via Yahoo! News
TOKYO (Reuters) – A corporate governance advocacy group whose members include institutional investors that collectively manage assets of more than $10 trillion urged Tokyo’s stock exchange on Friday not to delist disgraced Olympus Corp . Olympus, a once-proud maker of cameras and medical equipment, has admitted to hiding losses for decades through improper accounting, but it has yet to disclose …
http://jlne.ws/u1yCRo
Frontier Markets
Dim Sum Market Gives Indian Bank Cheaper Dollars Than U.S.: China Credit
Bloomberg
India ‘s IDBI Bank Ltd. (IDBI) says it cut a percentage point off its dollar funding costs by going to Hong Kong’s Dim Sum bond market , where appetite for a strengthening Chinese yuan is offsetting concern over emerging-market risk.
http://jlne.ws/vOPx3i
HSBC India Unit Client Charged with US Tax Evasion
International Business Times
A San Jose, California, man faces charges of tax evasion after failing to report $1.3 million in interest income from HSBC Holdings Plc’s India unit, U.S. prosecutors said on Thursday.
http://jlne.ws/tIMU3X
Bombay Stock Exchange F&O Turnover Hits Record High Volumes Of Rs. 1600 Crore – Crosses Previous Record High Turnover Of Rs. 1509.8 Crore In The Year 2008
Press Release
Today at market close, BSE’s F&O turnover hit a record high of Rs. 1600.1 crore. The previous recorded highest volumes in BSE derivative segment was Rs. 1509.8 crore on February 13, 2008.
http://jlne.ws/s4sJId
The Many Ways Into Emerging Markets
Bloomberg
While some travelers are wary of visiting emerging-market countries, they feel very differently about investing money there. Some $19.5 billion cascaded into emerging-market equity mutual funds in the first nine months of 2011, following a $46 billion flood from U.S. investors in 2010, according to the Boston Consulting Group. In both periods, emerging-market fund inflows exceeded those of any …
http://jlne.ws/txQ4wP
Miscellaneous News
Occupy Wall Street `Hit the Mark,’ Angelides Says
Bloomberg
Nov. 17 (Bloomberg) — Philip Angelides, who served as chairman of the Financial Crisis Inquiry Commission, talks about the Occupy Wall Street protests and U.S. banking regulation. He speaks with Adam Johnson on Bloomberg Television’s “Street Smart.”
http://jlne.ws/ubf7AG
NY protesters march on Brooklyn Bridge after clashes
AFP via Yahoo! News
Thousands of Occupy Wall Street protesters marched across the Brooklyn Bridge Thursday as clashes with police led to over 250 arrests on the two-month anniversary of the anti-capitalist movement.
http://jlne.ws/rslCxS
Occupy Wall Street: Income Inequality And The Burden Of Action
Forbes
The Occupy Wall Street movement turned two months old on November 17 and protested with a mass mobilization. Even though they succeeded in putting income inequality in the debate, now they have to act on it.
http://jlne.ws/rDC9YQ
House committee to hold insider trading hearing
Market Watch
WASHINGTON (MarketWatch) – House Financial Services Committee Chairman Spencer Bachus said Thursday that he will hold a hearing on Dec. 6 looking at how insider trading laws apply to lawmakers and legislation seeking to limit insider trading by members of Congress. The hearing comes after CBS’s “60 Minutes” reported details about alleged insider trading by lawmakers, including Bachus. Bachus …
http://jlne.ws/sPAQbI
Momentum Builds for Insider Trading Ban for Congress
Wall Street Journal Blogs
Momentum for insider-trading legislation continues to grow in Congress.
http://jlne.ws/ur2zFm
