The extended-hours trading in grain futures isn’t going away, and it appears that neither is the controversy that it is creating. Brokerage ICAP is discussing the possibility of taking over the otherwise-closing Plus Markets. LME’s annual income is down substantially on investments and rising costs. In a packed top box today, you’ll find a reminder about tomorrow’s MarketsWiki Spring Cleaning; community notes that include a death, an honor and a charitable request; and a JLN Options interview with Tony McCormick of BOX Options Exchange, talking about the possibility of after-hours options trading at the exchange.
Observations – Statistics – Commentary
No JLN blogs on Friday, in honor of MarketsWiki Day
Just a reminder that we will not be publishing JLN blog updates tomorrow (the John Lothian Newsletter will arrive as usual, however). Instead, the staff will be focused on MarketsWiki, cleaning up and improving its pages. With nearly 7,000 article pages full of content, we won’t get to them all, of course; so if you’d like to help out or suggest pages that need work, we’d welcome the contribution! See the notice further down in this box (look for the MarketsWiki balloons) to see how you can help!
Also, if you have not noticed recently, MarketsWiki has been on a hot streak. We are fast approaching 24 million page views after ending 2012 with 17.5 million page views since the start of the wiki. That is almost 6.5 million page views in less than 5 months. Recently we have seen days of 70,000 page views. We are doing in a month more than what we did the whole first year. So our spring cleaning is really important to help get pages up to date and represent our markets, institutions and people the most accurately we can.
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Longtime CBOT Member Fritz Guth passed away
From CME Group:
We regret to inform you of the passing of Fred “Fritz” Guth. Mr. Guth was a CBOT member from June 1954 to present. Memorial Service will be held Saturday, May 19, 2012 at 9:30 a.m. at the Incarnation Catholic Church, 5757 West 127th Street, Palos Heights, IL 60463.
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Not a Market Story
Dr. Patrick Hourigan was honored by the Geneva Lake West Chamber of Commerce as Citizen of the Year …for his integrity and humanity…he was especially instrumental in dealing with the crisis involving poisoned geese on the lakefront…his care for endangered species. Pat Hourigan is the godfather of my daughter, Katherine Grace Lothian. A great guy!
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From CME Group’s Elizabeth Gisch: CFF’s Great Strides Chicago 2012
Dear Friends,
We are preparing for the Cystic Fibrosis Foundation’s Great Strides walkathon on June 2 at Soldier Field! This will be the eighth consecutive year that Team Gisch is participating.
Of course, our inspiration is my Goddaughter and niece, Catherine Kitz, who just turned 17 in April. She is a Junior at Montini and is on the Varsity track team. We are so proud of Catherine and her many achievements, despite the many, ongoing challenges of this disease. Over the past year, typically every day, Catherine has taken numerous meds that have been developed through your donations and the work of the CF Foundation. In fact, the CF Foundation helped fund a major break-through: a new drug Kalydeco, recently approved by the FDA, has reversed the effect CF has on the lungs in people who have one particular version of the CF gene. It is the first drug that treats the underlying cause of CF. We are hoping that, with more research, this same drug will be modified for use by Catherine and others with her version of the CF gene. This exciting development has made our fundraising efforts even more important.
Please consider joining us in our fight for a cure for Cystic Fibrosis by making a 100% tax deductible donation at this link: http://www.cff.org/Great_Strides/TeamGischGisch6700
As always, our entire family is so very grateful for your generosity and support!
We thank you,
Elizabeth Gisch, Kate and Don Ogilvie, Peggy and Randy Zahora, the Kitz Family
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New Supervisory Board elected at Deutsche Börse AG
The shareholders of Deutsche Börse AG elected the company’s new Supervisory Board at the AGM today. The Supervisory Board members then elected Dr Joachim Faber as Chairman and Gerhard Roggemann as deputy. Faber takes over the office from Dr Manfred Gentz (70) who is retiring from the board. Elections were held for the entire Supervisory Board and Chair due to the expiry of the existing terms of office.
http://jlne.ws/KhAOLb
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GFI Group Voted Top Overall Broker In 2012 Energy Risk Awards
GFI Group Inc., a leading provider of wholesale brokerage, electronic execution and trading support products for global financial markets, has been named the 2012 Broker of the Year for Energy Risk magazine’s 16th Annual Awards.
http://jlne.ws/KhAP1L
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STREET MOVES: Nagy To Depart TD Ameritrade For New Venture
By Jacob Bunge Of DOW JONES NEWSWIRES
Christopher Nagy, head of order routing for TD Ameritrade Holding Corp. (AMTD), plans to depart the retail brokerage firm at the end of this month to set up a new consulting venture, he said Wednesday.
http://jlne.ws/KhB64T
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JLN Options Newsletter: A Chat with Tony McCormick, CEO of BOX, on the Exchange’s Proposal for After-Hours Options Trading
The Financial Times published a story on May 14 revealing that the BOX Options Exchange is developing a plan to trade U.S. stock options after the closing bell (see below under Lead Stories). JLN Options wanted to follow up with BOX’s chief executive, Tony McCormick, with some questions about the plan, so options editor Sarah Rudolph spoke with him by phone after having heard him speak on the Exchange Leaders panel at the Options Industry Conference in New Orleans.
Q: Has anyone tried after-hours trading of options before?
A: I’m trying to remember – I think a long way back, possibly in the late 1990s, the CBOE tried to put up a pre-market session for options and maybe the way it was structured it didn’t have any traction. I think it was at about the time the equity markets decided to do pre- and post-market trading.
But the equity world has had an after-hours market for a long time. That’s a pre-existing condition, because if the underlying wasn’t trading you wouldn’t be able to trade the option, of course.
Q: I saw one person on Twitter who thought the idea was a “no-brainer.” But in the article in the Financial Times, Ed Provost was quoted as saying: “Since individual equity options are a derivatives equities [sic] and are dependent on stock prices, post-market trade on an options exchange currently is not very feasible.” Why do you think he might say that, and someone else would think it’s a “no-brainer”?
A: I don’t know why, because equities trade post-market and that would be sufficient for the derivative to trade. That is not to say that all equities trade post market, but the big ones do. You obviously wouldn’t list on things that don’t trade.
Clearly you have to limit the availability of names and make sure the OCC can handle exercise and assignment instructions. It’s all about facilitating the process and making sure the options clear properly. With stocks that are traded in extended-hour sessions, the orders are only good during the extended hours. So you have to have set some rules around trading these options, similar to the rules for extended-hour equities. The brokerages would determine some of those.
The after-hour options would not be in a displayed quote environment. You would put in a limit order at a certain price and see if it gets acted on. If a buy limit matches a seller limit, it’s a trade. So it’s like an electronic bulletin board.
If you get participation with enough limit orders, you will have trade matches. If the contract is a success, you’ll attract enough retail interest that the professional community will start to look at that market too. Whether they would actually quote markets remains to be determined. But you wouldn’t need them to quote to make a market.
For the rest of the interview and news from the options sector, visit the JLN Options website at http://jlne.ws/K8A5fU
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Norway’s day traders take on the algos
By Michael Stothard in Stockholm – Financial Times
Sophisticated algorithmic trading systems have become the bane of an equity day trader’s life, reacting faster to news than any human can and spotting price irregularities across thousands of stocks at once. Yet despite the prevalence of these supposedly smart machines, some traders are making a tidy profit getting the better of these systems, which can make costly mistakes if they are not set up correctly or if their trading patterns can be understood.
http://jlne.ws/KhARqv
**** What, algos can lose?
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Statement By William J. Brodsky, Chairman And CEO, CBOE Holdings, Inc. On Illinois Pension Reform
William J. Brodsky, Chairman and CEO of CBOE Holdings, Inc., today issued the following statement regarding Illinois pension reform: “CBOE Holdings joins the Illinois State Chamber, the Civic Committee of the Commercial Club of Chicago, the Civic Federation and others in support of a call to action to reform Illinois’ pension laws and review Medicaid policy this legislative session.”
http://jlne.ws/KhARGS
**** Can’t wait for the Crain’s Chicago business editorial criticizing Mr. Brodsky again.
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US Comptroller Of Currency Warns Of Operational Risk At Banks
Dow Jones Newswires
A top U.S. banking regulator warned the risk that operational weaknesses could harm national banks is high and rising. Operations failures, including those stemming from faulty models used to assess market risk, are “currently at the top of the list of safety and soundness issues for the institutions we supervise,” Comptroller of the Currency Thomas J. Curry said in prepared remarks Wednesday at the Exchequer Club in Washington.
http://jlne.ws/KhARH3
**** Kind of late, huh?
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SEC’s Khuzami Set To Defend Settlement Practices
Dow Jones Newswires
The Securities and Exchange Commission‘s enforcement chief is set to defend the SEC’s heavy use of settlements in enforcement actions, including its practice of allowing defendants to settle charges while neither admitting nor denying wrongdoing.
http://jlne.ws/KhASur
“Quick action by law enforcement communicates to other potential wrongdoers that those who violate the law face swift and certain sanctions,” Khuzami said in prepared testimony for a U.S. House Financial Services Committee hearing.
***JM: A true win-win arrangement! The SEC gets paid; and the companies they regulate can plan ahead regarding the cost of a settlement and ensure that it doesn’t ruin the profit from the illegal activities.
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WILD New York Invitation: Join us for a wine tasting and to hear Denise Shull, author of Market Mind Games
WHO: Women in listed and OTC derivatives
WHAT: Wine Tasting, Speaker, & Membership Drive
WHEN: Wednesday May 23, 2012
5:30 pm: Sign-in, mingle, & enjoy a glass of sparkling wine
6:00 – 6:45 pm: Speaker: Denise Shull, TraderPsyches/The ReThink Group/Author of Market Mind Games
Topic: Your Brain on Risk: Surprising Findings from Decision Science
Denise Shull curates the relevant information in emotion neuroscience to bring us the latest in the rapidly-expanding world of perception, judgment, and decision-making science. She explains the important value of emotional context as well as the answer to “why (or how) did I do that again?”
6:45 – 8:00 pm: Enjoy wine tasting, light hors d’oeuvres, & book signing with Denise
WHERE: City Winery (in the Winery Room) ,155 Varick Street (corner of Varick and Vandam), New York, NY 10013, 212-608-0555
RSVP: Email us at events@womeninlistedderivatives.org by May 14th
COST: $10 – You can pay securely through PayPal here: http://jlne.ws/KuqBtI or by cash or check at the door
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MarketsWiki Spring Cleaning Party – May 18, 2012
Join the MarketsWiki staff on Friday, May 18 as we clean up our most popular pages and take suggestions from MarketsWiki users all day.
Help us by participating in one of three ways:
(1) Help us edit – Spend some time on May 18 to help update a page. We’ll give you (and your organization) a shout out in the newsletter and on the front page of MarketsWiki during the party. Don’t have a MarketsWiki account? You can start a FREE MarketsWiki account for this event. Send Jeff Bergstrom an email to get signed up. We’ll also have help available all day for those new to wiking (or are a bit rusty).
(2) Suggest a page to clean up – Tweet your suggestion to @MarketsWiki with the #MWParty hashtag on (or before) May 18. You can also suggest a page at http://jlne.ws/MWSuggest.
(3) Spread the word – Contact colleagues that might have suggestions or want to become MarketsWiki editors. For a quick explanation of MarketsWiki, send them our short animated video: http://jlne.ws/WhatIsMW. Use the the #MWParty hashtag on Twitter to help us spread the word about our newly updated pages on May 18.
We hope you’ll join us on May 18, and remember to watch our progress by following the #MWParty hashtag on Twitter or visiting MarketsWiki.com.
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MarketsWiki Page of the Day
Michael Warren
http://jlne.ws/Jw4LfF
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MarketsWiki Recent Updates
People
John J. Lothian; Susanna W. Jung; Glen Akin, Jr.; William D. Felder; Vickie L. Lambert; Michael Warren
Companies, Organizations and Groups
Eurex Credit Clear; Envex; European Energy Exchange AG; Penson Worldwide, Inc.
Products
ZCE Early Rice futures; ICE US Dollar Index; ICE Euro Index; ISE index options
Miscellaneous
The History of MarketsWiki; Upcoming Events; Renminbi
Statistics
23,626,577 pages viewed, 6,856 articles, 140,211 edits
MarketsWiki Statistics
_______________________________________________________
Lead Stories
Backlash to longer grain futures sessions
By Gregory Meyer in New York – Financial Times
Exchanges face a growing furore over a longer trading day in grain futures as traders fear it will lead to knee-jerk reactions to sensitive crop reports. The backlash puts CME Group, the biggest US futures exchange operator, in a delicate position as it fends off new competition in agriculture and balances the needs of farmers and grain handlers with electronic traders.
http://jlne.ws/KhARXC
ICAP in talks to buy Plus Markets
By Philip Stafford – Financial Times
ICAP, the world’s largest interdealer broker by market capitalisation, is in talks to buy Plus Markets Group, the UK exchange for fledgling companies that is planning to close after failing to secure a buyer.
http://jlne.ws/KhASL4
Costs and investments cut LME profits
By Jack Farchy in London – Financial Times
The London Metal Exchange suffered a 19 per cent drop in profits last year as higher costs and investments outweighed a sharp rise in trading volumes. The results highlight the challenges facing the 135-year-old exchange should it remain independent in an increasingly competitive and more stringently regulated industry. They also underline the dilemma for the LME’s shareholders, the banks and brokers that use it, as they decide whether or not to sell the exchange.
http://jlne.ws/KhAV9C
Settlement failures linger as regulation looms
Sophie Baker – Financial News
Improvements to settlements systems across the globe have failed to make an impact on trade failure rates, at a time when the industry is preparing for new regulations that will place higher emphasis on risk mitigation and the importance of a robust clearing infrastructure.
http://jlne.ws/KhAV9O
Spanish Banks Face Imminent Ratings Cut
WSJ
Moody’s Investors Service Inc. told several Spanish banks Thursday that it will lower their ratings in the coming 12 hours, Spanish newspaper Expansion reports, citing unidentified sources.
http://jlne.ws/KhAVqi
Banks are short $566bn, says Fitch study
By Brooke Masters, Chief Regulation Correspondent – Financial Times
The world’s 29 largest global banks will need to raise an additional $566bn in new capital or shed about $5.5tn in assets by 2018 to meet the new tougher Basel III bank capital standards, a new study by Fitch Ratings has found.
http://jlne.ws/KhAVGG
‘London Whale’ Said to Be Leaving JPMorgan
By JESSICA SILVER-GREENBERG and NELSON D. SCHWARTZ – NY Times
The $2 billion trading loss at JPMorgan Chase has claimed another victim. Bruno Iksil, the so-called London Whale at the center of the trading debacle, is expected to leave the bank, according to current and former colleagues. The timing of the departure is unclear.
http://jlne.ws/KhATOZ
JPMorgan still employs “whale” trader
Reuters via Yahoo! News
Bruno Iksil, the London-based JPMorgan Chase & Co trader known as the “whale” believed to have been involved in the company’s $2 billion loss in derivatives, is still employed by JPMorgan, a spokeswoman for the bank said on Wednesday.
http://jlne.ws/KhAVXh
From ‘Caveman’ to ‘Whale’
By GREGORY ZUCKERMAN – WSJ
Months before Bruno Iksil became famous as the “London whale,” the trader who contributed to a loss of more than $2 billion at J.P. Morgan Chase & Co., he earned a different nickname: the “Caveman,” for pursuing trades that rivals sometimes thought were overly aggressive but often led to huge profits.
http://jlne.ws/KhAU5H
FBI’s Mueller Confirms Probe Into JP Morgan Trading Loss
Dow Jones
The Federal Bureau of Investigation’s chief confirmed his organization has opened a probe into J.P. Morgan Chase and Co.’s (JPM) $2-billion-plus trading loss.
http://jlne.ws/KhAUma
European Central Bank will temporarily halt lending to some Greek banks
Denver Post
The European Central Bank said it will temporarily stop lending to some Greek banks to limit its risk as President Mario Draghi signaled that the ECB won’t compromise on key principles to keep Greece in the eurozone.
http://jlne.ws/KhAUmh
Cameron fears eurozone unravelling
By George Parker and Chris Giles – Financial Times
David Cameron, Britain’s prime minister, will on Thursday warn that the single European currency could unravel in a way that “carries huge risks for everyone” unless the eurozone’s 17 members move rapidly towards full fiscal and political union.
http://jlne.ws/KhAUCL
There’s No Gentle Way for Greece to Exit the Euro
BusinessWeek
Those who favor Greece’s exit from the euro like to argue that the transition from Europe’s single currency back to the drachma, or some newfangled scrip, need not devolve into chaos.
http://jlne.ws/KhAUT6
Anxious Greeks withdraw $894 million in one day
MSNBC
Political leaders in Athens were due to discuss an emergency government Wednesday to deal with a possible run on banks as it emerged Greeks withdrew almost $900 million in a single day, fearing their country could crash out of the euro currency by the end of the week.
http://jlne.ws/KhAUTk
Spain Debt Fight Intensifies as Valencia Test Looms: Euro Credit
Bloomberg
Spanish Prime Minister Mariano Rajoy’s bid to fight off the European debt crisis is about to intensify as his government wields new powers to tame the country’s indebted regions.
http://jlne.ws/KhAXhR
Environmental Trading News
EEX: First EIB Auction To Be Held On 7 June
http://jlne.ws/KhAXyc
Could a Carbon Tax Save Europe?
The Atlantic
Turmoil over budget cuts roils Greek streets. France elects an anti-austerity president. Even Germany’s Austerity Queen Angela Merkel faces electoral backlash. It appears Europeans are getting sick of tightening their belts. But when you can’t cut any more, there’s little else to do but hustle up more cash. For governments allergic to raising income taxes, a European Climate Foundation analysis released yesterday shows there’s a less painful way to slash deficits — one that could save the planet as it saves the economy. A carbon tax.
http://jlne.ws/JO2k4M
**JK – A quick to way to waste the goodwill feeling about helping the environment.
China injects vigour into carbon debate
Financial Times
This year is not turning out well for the climate change business. The pace of global climate talks is sluggish. Prices have collapsed in the world’s biggest carbon market. Eurozone woes have shoved environmental concerns well down the list of priorities for leaders worldwide.
http://jlne.ws/IZsleX
EU energy chief favors carbon at 12-18 eur/t
Reuters
European carbon prices should be at least twice their current value of just over 6 euros ($7.66) a metric ton (1.1023 tons) in order spur investment in cleaner technology, EU Energy Commissioner Guenther Oettinger said on Wednesday.
http://jlne.ws/Jg6qFd
For more environmental trading news, subscribe to the Environmental Markets version of the John Lothian Newsletter edited by Jim Kharouf.
Visit http://www.jlnenvironmental.comto subscribe.
Exchange & ECN News
China Financial Futures Exchange Expands Collaboration Efforts
By Jacob Bunge and Melodie Warner Of DOW JONES NEWSWIRES
The China Financial Futures Exchange this week sealed agreements with four Western exchange operators, aiming to tap the expertise of established markets following a surge in trading volume.
http://jlne.ws/KhB0tU
Chicago Board Options Exchange and China Financial Futures Exchange Sign Memorandum of Understanding
The Chicago Board Options Exchange (CBOE) and the China Financial Futures Exchange (CFFEX) announced today that they signed a Memorandum of Understanding (MOU), which establishes an open channel of communication and lays the foundation for future collaborative efforts between the exchanges. Executives from both exchanges signed the MOU today at a ceremony in Beijing, China.
http://jlne.ws/KhB0ua
HKEx May Win LME With China Card
Wall Street Journal Blogs
A new owner for the London Metal Exchange could be announced soon, and Hong Kong’s stocks-focused bourse, one of the three remaining bidders, sees it as the quick entry it is seeking into the commodities business.
http://jlne.ws/KhB0KA
Direct Edge May Separate Chairman, Chief Executive Roles
By Jacob Bunge Of DOW JONES NEWSWIRES
Electronic-stock-market company Direct Edge Holdings LLC could separate the roles of chairman and chief executive, following a similar move by a larger peer and prevailing trends in corporate governance. The Jersey City, N.J., market operator notified regulators of a change to its bylaws that will give directors of its exchanges flexibility to name a chairman who is not the CEO, though both roles continue to be held by William O’Brien.
Deutsche Boerse CEO: Merger Costs Include EU Legal Challenge Costs
Dow Jones
Deutsche Boerse AG’s expenses for the planned merger with NYSE Euronext, which eventually was vetoed by the European Union, include legal costs for challenging the EU decision, Reto Francioni, the exchange operator’s chief executive, told shareholders Wednesday.
http://jlne.ws/KhAYSQ
LME Clear to move into new premises
The London Metal Exchange (LME) plans to move LME Clear staff into dedicated offices close to the main premises in Q3 2012. The LME Clear team continues to expand as the selection processes for both the technology supplier and treasury partner reach the final stages.
http://jlne.ws/MnCFmB
NYSE Euronext Joins Discover America Partnership
http://jlne.ws/KhB1hs
Bulgarian Companies To Have Access To The Romanian Bourse
http://jlne.ws/KhB1hF
CME Group Clearing Advisory
Minimum Price Fluctuation Reduction for Petroleum Swap Futures Contracts
http://jlne.ws/KhAZpO
CME Clearing – New Product Advisory
Short Dated New Crop Corn and Soybean Options
http://jlne.ws/KhAZpU
CME Group Clearing Advisory
CDS New Release and CME CORE – Removal of 100k Notional Rounding for Margin Calculation of our CDS Products in New Release
http://jlne.ws/KhB25b
[CBOE] AIM “Opt-Out”
http://jlne.ws/KhAZGu
Direct Edge Regulatory Notice #12-03: Telemarketing Rules – Effective June 29, 2012
http://jlne.ws/KhAZWY
Burgundy CCP Interoperability With EuroCCP – Project Update
http://jlne.ws/KhB0dn
Banks, Brokers & Dark Pools
Lloyds Banking Said to Suspend Two Traders Amid Libor Probe
Bloomberg
Lloyds Banking Group Plc, the U.K.’s second-biggest government-backed lender, suspended at least two derivatives traders in a probe of potential interest-rate manipulation, two people briefed on the matter said.
http://jlne.ws/KhB0dD
Goldman, Merrill E-Mails Show Naked Shorting, Filing Says (Update 2)
By Karen Gullo – Bloomberg
Goldman Sachs Group Inc. (GS) and Merrill Lynch & Co. employees discussed helping naked short-sales by market-maker clients in e-mails the banks sought to keep secret, including one in which a Merrill official told another to ignore compliance rules, Overstock.com Inc. (OSTK) said in a court filing.
http://jlne.ws/IXIYYn
Bankia hit by E1bn withdrawals report
By Alexandra Stevenson – Financial Times
Shares in Bankia, the Spanish bank that was part-nationalised last week, plunged by more than a quarter on Thursday morning, after a report that customers had withdrawn E1bn from the bank over the past week.
http://jlne.ws/KhB39g
Dimon Shows No Retreat: Bloomberg Businessweek Opening Remarks
Bloomberg
Jamie Dimon has the silver mane and piercing, gray-blue eyes of a chief executive officer from central casting, but he talks like one of his own charged-up traders.
http://jlne.ws/KhB3pD
JPMorgan cutting 20 from London trading office
Reuters
JPMorgan is cutting a group of investment bankers in its London operations, two sources familiar with the situation said, on top of any departures in the unit that caused its recent trading loss of more than $2 billion. The number of people affected is 20, one of the people said, a relatively small group in comparison to the Wall Street firm’s 8,000 people in London.
http://jlne.ws/KhB5Ou
Morgan Stanley fined over coding error
By Michael Stothard in Stockholm – Financial Times
Morgan Stanley has been fined Skr400,000 ($55,000) by Nasdaq OMX after a coding error in one of its client algorithms led to three separate breaches of exchange rules and a frantic few minutes of trading in Stockholm.
http://jlne.ws/KhB64M
Saxo Bank A/S Announces New Chairman of the Board
Marketwire via Yahoo! Finance
Saxo Bank, the parent company of Saxo Capital Markets, announced the Bank’s new Chairman of the Board after its board meeting yesterday. Dennis Malamatinas, currently Deputy Chairman of the Board, takes over from Kurt K. Larsen who has been Chairman since 2010.
http://jlne.ws/KhB6li
HSBC says turnaround plan on target, costs cut by $2 billion
Reuters via Yahoo! News
HSBC , Europe’s biggest bank, said it cut costs by $2 billion after one year of a 3-year turnaround plan, and is on target to meet its return on equity and other financial targets.
http://jlne.ws/KhB6lr
BofA pulling out of small-town America: report
Philly.com
Bank of America’s plan to trim its 5,700 US branches will likely include the sale of more small-market offices, and may also include a review of branches in “lower-income” areas, write SNL Financial LC’s Tahir Ali and Nathan Stovall in this report.
http://jlne.ws/KhB6BR
Barclays Expands Its Wealth And Investment Management Team In New York
PR Newswire via Yahoo! Finance
Barclays announced today that it has hired four Investment Representatives who will be based in New York in the Wealth and Investment Management division.
http://jlne.ws/KhB6Sq
Inter-Dealer Broker ICAP Reported To Be In Talks To Buy Plus Markets Group
http://jlne.ws/KhB4Ka
Bank Of England Quarterly Inflation Report Q&A – 16th May 2012 Press Conference Transcript
http://jlne.ws/KhB4Kp
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.shtml
OCC’s Curry: Regulators Working To Define Hedging
Dow Jones Newswires
A top U.S. banking official Wednesday said regulators are working to define hedging, a key term in Washington this week amid questions about whether J.P. Morgan Chase & Co.’s more than $2 billion loss was the result of a move to hedge against losses or a bet aimed at generating big profits.
http://jlne.ws/KhB7FR
Proxy Fee Advisory Committee Proposes Recommendations On Proxy Distribution Fees – Recommendations Reflect The Views Of Issuers, Brokers And Investors And Propose To Streamline Proxy Fees And Make Them More Transparent To Issuers
The Proxy Fee Advisory Committee (PFAC), formed by the New York Stock Exchange, today published its recommendations for changes to the fees paid by public companies to banks and brokers for the distribution of proxy materials to shareholders who hold their stock in “street name.”
http://jlne.ws/KhB7G4
SEC Charges U.S. Perpetrators in $35 Million International Boiler Room Scheme
The Securities and Exchange Commission today charged a Hawaii resident and two firms he used to orchestrate a scheme in which he covertly founded small companies, installed management, and recruited overseas boiler rooms that pressured investors into buying their stock while he pocketed more than $2 million in consulting fees from proceeds of the fraudulent stock sales.
http://jlne.ws/KhB5xO
Federal Court in South Carolina Orders Ronald E. Satterfield and Nicholas and Patricia Bos to Pay over $7.5 Million for Fraud in Connection with a Forex Ponzi Scheme
http://jlne.ws/KhB7WB
FINRA Enhances BrokerCheck Capabilities
The Financial Industry Regulatory Authority (FINRA) today announced that it has added features to BrokerCheck to help users more easily access broker-dealer and investment adviser registration information. Several changes implemented by FINRA address recommendations made in a January 2011 study by the Securities and Exchange Commission (SEC).
http://jlne.ws/KhB8cZ
FINRA Warns Investors of Nutraceutical Stock Scams
The Financial Industry Regulatory Authority (FINRA) issued a new Investor Alert called Nutraceutical Stock Scams—Don’t Supplement Your Portfolio With These Companies to warn investors about stock scams related to companies selling everything from fortified foods and energy drinks to “natural” medicines.
http://jlne.ws/KhBb8A
Testimony Of U.S. Treasury Under Secretary For International Affairs Lael Brainard Before The House Financial Services Subcommittee On International Monetary Policy And Trade,
http://jlne.ws/KhBb8J
Testimony Of U.S. Treasury Deputy Assistant Secretary Lance Auer Before The House Financial Services Financial Institutions Subcommittee On Implementing Title I Of The Dodd-Frank Act: Regulating Ssystemically Important Nonbank Financial Institutions
http://jlne.ws/KhBbpb
Michael S. Gibson, Federal Reserve Director, Division Of Banking Supervision And Regulation – Systemically Important Financial Institutions And The Dodd-Frank Act – Before The Subcommittee On Financial Institutions And Consumer Credit, Committee On Financial Services, U.S. House Of Representatives, Washington, D.C., May 16, 2012
http://jlne.ws/KhBbFD
ESMA Chairman, Steven Maijoor, Delivered A Speech At IOSCO’s 2012 Annual Conference In Beijing
http://jlne.ws/KhBbW4
AMF And ACP Academic Symposium:
http://jlne.ws/KhBa4w
ASIC to launch new website for insolvency and deregistration notices
http://jlne.ws/KhBccL
Investors warned about dealing with Dellingworth Pty Ltd
http://jlne.ws/KhBct8
BCSC panel sanctions two men for illegally trading and distributing securities
http://jlne.ws/KhBaBy
Swedish Financial Supervisory Authority – Finansinspektionen – Revokes The Authorisation For Nordisk Kapitalfoervaltning
http://jlne.ws/KhBaBI
Swedish Financial Supervisory Authority – Finansinspektionen – Folksam LO Fond Receives A Remark And An Administrative Fine
http://jlne.ws/KhBd0i
New Zealand’s Financial Markets Authority: Unsolicited Offers – Guidance For Investors – What’s In Your Mailbox?
http://jlne.ws/KhBd0q
Goldman Sachs Lawyer From Sullivan May Testify on Gupta
Bloomberg
A Goldman Sachs Group Inc. (GS) lawyer from Sullivan & Cromwell LLP may testify at next week’s insider- trading trial of Rajat Gupta, a former director at the bank, a prosecutor said.
http://jlne.ws/KhBdgQ
Investments – Indexes – Managed Futures – Managed Funds
Man Worst as Private Funds Trail Markets: Riskless Return
Bloomberg
Man Group (EMG) Plc is leading declines among global investment firms as private-equity and hedge funds , the best-paid money managers, produce the worst returns for public shareholders.
http://jlne.ws/KhBdNW
JP Morgan’s $2 Billion-Plus Loss Came On Three-Legged Trade
By Katy Burne Of DOW JONES NEWSWIRES
The complex web of trades that saddled J.P. Morgan Chase & Co. (JPM) with at least $2 billion in losses had three key components, according to people familiar with the bank’s strategy. Now, rival traders, seeking to reap gains from J.P. Morgan’s losses, are scurrying to guess which parts the bank is unwinding, and how.
http://jlne.ws/KhBe4j
Cassina leaves Citadel Execution Services
By Philip Stafford – Financial Times
Matteo Cassina has left his role as president of Citadel Execution Services Europe, the trading arm of the Chicago-based fund manager. People familiar with the situation said Mr Cassina left on Wednesday. A spokesperson for Citadel confirmed that Mr Cassina had departed the firm.
http://jlne.ws/KhBgt9
No big insights at “best ideas” hedge-fund event
Reuters via Yahoo! Finance
A highly anticipated hedge-fund conference on Wednesday where managers are invited to share their “best ideas” with investors fell flat on that score.
http://jlne.ws/KhBekR
A Great Lesson From Jeff Gundlach On The Limits Of Hedging
Business Insider
Jeff Gundlach gave a presentation at the Ira Sohn conference today, and as always it was filled with incredibly colorful stories and vivid charts. This might have been his best lesson though.
http://jlne.ws/KhBeBk
CalPERS And GI Partners Launch $500 Million Fund To Buy Technology Advantaged Core Real Estate
http://jlne.ws/KhBeBx
Advisers move toward alternative investments-study
Reuters via Yahoo! Finance
Some U.S. financial advisers are steering away from traditional investments and looking to alternative portfolio allocations as their clients are more willing to take on risk, a study released on Wednesday showed.
http://jlne.ws/KhBeS2
Federal Open Market Committee Announces Revised Tentative 2012 Meeting Schedule And Tentative 2013 Meeting Schedule
http://jlne.ws/KhBf8r
Minutes Of The Federal Open Market Committee, April 24-25, 2012
http://jlne.ws/KhBhNC
Changes To The Composition Of The Oslo Bors Benchmark Index (OSEBX)
http://jlne.ws/KhBfFk
Technology News
WhenTech Partners With CQG for Trade Execution
WhenTech LLC, the premier provider of option pricing, analytics and risk management software solutions to the futures and commodities options industry, announced that its core product, WhenTech Markets, is now available with option trade execution capability through an integration with CQG, Inc.’s CQG Trader platform.
http://jlne.ws/KhBikv
Broadway Technology Set to Launch Turnkey Liquidity Aggregation, STP, and E-Commerce Solutions for Six Interest Rate Swaps Markets in June
Broadway Technology, LLC, a leader in high-performance trading solutions for top-tier global banks and hedge funds, announced today that in response to Dodd-Frank regulations and the emergence of Swap Execution Facilities (SEFs), Broadway is set to launch turnkey liquidity aggregation, straight-through processing (STP), and e-commerce solutions for six Interest Rate Swaps markets in June 2012.
http://jlne.ws/KhBiAZ
Verizon to scrap unlimited plans for 4G users
Chicago Tribune
Verizon Wireless plans to force customers to give up their unlimited data plans when they move to its high-speed wireless service.
http://jlne.ws/KhBiBf
Media News
Facebook IPO: Limit to Stock Orders When Trading Begins
By Jacob Bunge – Dow Jones
When Facebook shares open for trading Friday, individual investors hoping to ride any day-one pop in the stock initially won’t be able to buy at any cost.
http://jlne.ws/KhBgcm
Goldman to Cash Out $1 Billion of Facebook Holding in IPO
Bloomberg
Goldman Sachs Group Inc. (GS) and funds managed by the firm will sell about $1 billion of stock in Facebook Inc. (FB) ‘s initial public offering, cashing out almost half their stake after the social network doubled in value.
http://jlne.ws/KhBgcD
Here Are 10 Reasons Not to Buy Facebook Before You Buy It Anyway
By DAVID WEIDNER – WSJ
By now, you’ve probably made your mind up about Facebook Inc.’s initial public offering. You’re buying it—at any price and by any means necessary. No one is going to convince you otherwise. That’s fine.
http://jlne.ws/KhBj8a
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
CITIC Securities Selects SunGard’s Asset Arena Investment Accounting Solution
CITIC Securities (CITICS) has chosen SunGard’s Asset Arena Investment Accounting solution as the accounting solution for its asset management business.
http://jlne.ws/KhBjoD
SunGard Launches New Solution to Help Automate Japanese Securities Lending
SunGard has extended its suite of securities finance solutions with the launch of Apex JSFC Trade Manager, which helps reduce the costs and increase the productivity of lenders participating in the Japan Securities Finance Corporation’s (JSFC) daily auction of securities lending requirements.
http://jlne.ws/Jyxlgc
SIFMA Testifies On Increasing Market Access For U.S. Financial Firms In China
http://jlne.ws/KhBm3S
Launch of Tokyo Stock Exchange’s Official Facebook Page
http://jlne.ws/KhBmkh
Nomura Hires Wendy Liu As Head Of China Equity Research
http://jlne.ws/KhBmAN
HKFE Announces Revised Margins For CNOOC Futures
http://jlne.ws/KhBmAW
HKEx: Stock Exchange Participants’ Market Share Report
http://jlne.ws/KhBmRk
Frontier Markets
DFSA Enters Into Agreement With China’s Banking Supervisor
The Dubai Financial Services Authority (DFSA), this week, entered into a supplementary agreement on co-operation with the China Banking Regulatory Commission (CBRC).
http://jlne.ws/KhBn7M
MARK MOBIUS: There Is A Huge Opportunity In Ghana
Business Insider
This year could prove an interesting one for Africa’s west coastal country, Ghana. Presidential and parliamentary elections are slated to be held by year-end, the results of which are almost sure to impact the shape of the country’s future.
http://jlne.ws/KhBnol
CEO Of The Tel-Aviv Stock Exchange To Ring The NASDAQ Stock Market Opening Bell To Commence The 5th TASE And NASDAQ Investor Conference At NASDAQ MarketSite
http://jlne.ws/KhBnEU
Bursa Malaysia Derivatives’ Total Contracts And Crude Palm Oil Futures Contracts Hit Historical Daily Volume High
http://jlne.ws/KhBkZJ
