Last year through your support and generosity we raised a fantastic £12,000 for our industry charity, Futures for Kids, though FFastCricket, a highly competitive match between England and the Barbarians which saw the Three Lions, captained by FFastFill Chairman Keith Todd, narrowly pip the Babas, captained by our CEO Hamish Purdey.

In 2013, the Babas are out for revenge and have laid down the gauntlet for a rematch. The teams have been selected (and some have even been in the nets putting in a little prematch practice – cheating?) so come and join us for an afternoon of sport, sun and a glass of Pimms whilst we raise money for this fantastic charity.

We are looking for sponsorship for both teams, so please support whichever is closest to your own sporting affiliations by using the links below and help us to beat last year’s total.

Barbarians: http://www.justgiving.com/FFastCricket2013ROW

England: http://www.justgiving.com/FFastCricket2013England

Forget the Ashes, if there is one sporting event you attend this summer, make this it! We welcome you all to support the teams at this sporting spectacular which will take place at the HAC Cricket Ground, City Road, London, EC1Y 2BQ (http://the.hac.org.uk/location-map/) from 4.30pm on Weds 26th June. 

About Futures For Kids 

Futures for Kids is a Charitable Foundation to raise funds which will be used to provide better lives and futures for children. Since its inception Futures for Kids has raised over £1.5m thanks to the help and support of individuals and firms from within our industry.  

Money raised goes to a variety of charities both at home and abroad including:

• Every Child: www.everychild.org.uk
• Demelza: www.demelza.org.uk
• Fairbridge: www.fairbridge.org.uk
• Hope HIV: www.hopehiv.org
• Living and Loving: www.livingandloving.org
• Whizz Kidz: www.whizz-kidz.org.uk
• Variety – The Children’s Charity: www.varietyclub.org.uk

Many thanks in advance,

From all the Team at FFastFill

First Read

Jeremie Bacon on Taking the Reins at ORC Americas and Modular Technology
MarketsWiki.tv

After a decade of running his own technology firm, Jeremie Bacon decided it was time for a new challenge. In May, he took the reins as president of Orc Americas, the Chicago-based subsidiary of Orc Group.

Bacon sat down with JLN editor-in-chief Jim Kharouf to talk about why decided to leave the firm he co-founded, Backstop Solutions, a software-as-a-service company in the alternative investment space. Bacon said he was impressed with ORC’s established footprint in the industry and reputation it has built since its launch in 1987. He also likes the relatively new ownership structure of the firm. ORC, which had been publicly traded since 2000, was taken private by Orc is owned by Cidron Delfi Intressenter AB, which is in turn owned by Nordic Capital Fund VII, a Swedish private-equity firm last year.

Watch the video »

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ICE Throws Down Gauntlet on Payment for Order Flow
Dan Collins Report
A new sheriff is coming to the world of cash equities and options and he is determined to change the way those markets trade. ICE Chairman and CEO Jeff Sprecher dropped a bomb during last week’s Sandler O’Neill’s Global Exchange & Brokerage Conference in talking about the new markets he is acquiring with ICE’s acquisition of NYSE Euronext
jlne.ws/18VvcY6

***** If you’re not following Dan Collins’ new blog, dancollinsreport.com, you should be.

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GSA mulls joining the fee-cutting set
Harriet Agnew – Financial News
UK-based hedge fund manager GSA Capital is considering the launch of a new fund that will not charge a performance fee, Financial News has learnt.
jlne.ws/18VvcY9

***** There’s no such thing as a fee lunch.

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High-Frequency Trading Tactic Lowers Investor Profits
Newswise
High-frequency trading strategies that exploit today’s fragmented equity markets reduce investor profits overall, according to new findings by University of Michigan engineering researchers.
jlne.ws/18VvfTG

***** According to Purdue University engineering researchers, University of Michigan engineering researchers suck.

++++

Jack Schwager on Market Wizards and How the CTA Space is Changing
MarketsWiki.tv

Jack Schwager is a well-known name in the financial market community today, as author of trading classics such as: Market Wizards in 1989, The New Market Wizards in 1992 and Stock Market Wizards in 2001. He’s added to the series in May 2012, with Hedge Fund Market Wizards, and more recently released book Market Sense and Nonsense, where he explores investment models and the theories of how markets work.

He spoke with JLN editor-in-chief Jim Kharouf about hedge fund managers and how the CTA space has changed, what’s happened to managed futures since its breakout year in 2008 and his opinion of just how much growth is left for CTA sector.

Schwager, who is currently a co-portfolio manager at ADM Investor Services, helps manage ADM’s Diversified Strategies Fund, a portfolio of futures and FX managed accounts. The fund combines both system and discretionary managers that use technical and fundamental strategies.

Watch Part 1 »

Watch Part 2 »

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IDG’s Computerworld Names CME Group to 2013 List of Best Places to Work in Information Technology
CME Group, the world’s leading and most diverse derivatives marketplace, today announced it has been selected by IDG’s Computerworld as a 2013 Best Place to Work in Information Technology (IT) honoree, one of 100 top organizations that provide IT employees with a stimulating work environment as well as great benefits and compensation. This is the ninth consecutive year the company has been named to this list, and once again CME Group is the only financial exchange company to receive the honor.
jlne.ws/18Vvezn

***** Next up, it will be the Uber place to work.

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Spot Trading Named Three Consecutive Years as One of “Chicago’s 101 Best and Brightest Companies to Work For”
Spot Trading LLC, a leading proprietary trading firm, announced today that the National Association for Business Resources is honoring the firm for the third consecutive year as one of “Chicago’s 101 Best and Brightest Companies to Work For”.
jlne.ws/18Vvezp

***** See Spot Run.

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Risks of Too Much Oneness
Francesco Guerrera – MoneyBeat – WSJ
“E pluribus unum,” “out of many, one” is a great motto for a multicultural nation like the U.S. For investors, not so much. Yet, for the past few years, the phrase emblazoned on the U.S. seal has been the perfect description of the markets’ odd behavior, courtesy of the Federal Reserve and its counterparts in Frankfurt and Tokyo.
jlne.ws/18VvcYa

***** Too narrow of a focus will always get you run over.

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Ex-regulator: Dodd Frank ‘a field day’ for lawyers
Thehill.com
Financial agencies’ zealous pursuit of hundreds of regulations required by the Dodd-Frank Act has led to a proliferation of lawsuits and vacated rulemakings, a former member of the Securities and Exchange Commission said Monday.
jlne.ws/14ggggP

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US Falls Behind in Creating Rich Entrepreneurs
CNBC
Despite the high-profile examples, America may actually be falling behind when it comes to creating entrepreneurial wealth. A study from Barclays finds developing countries now lead the U.S. when comes to wealth creation by entrepreneurs.
jlne.ws/18VvcYb

***** A couple more Red Bulls and we’ll get this all straightened out.

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‘Wolf of Wall Street’: Boiler-Room Antics on the Big Screen
WILLIAM ALDEN – NYTimes.com
Before he went to prison, Jordan Belfort amassed a net worth of more than $100 million while still in his mid-20s, with a mansion in Southampton, N.Y., and a 167-foot yacht. This fall, Mr. Belfort’s financial shenanigans are set to be represented in a movie adaptation of his 2007 memoir, “The Wolf of Wall Street.”
jlne.ws/18VvcYd

***** From the Great Gatsby to this, is such a jump.

***JM: I see they decided on the OTHER Leo for the title role…

++++

MarketsWiki.tv

Compliance Advice on SEC’s Market Access Rule from Julie Dixon of Titan Regulation
MarketsWiki.tv

SEC Rule 15c3-5 (“Market Access Rule”), finalized in November 2010, is the commission’s response to the May 6, 2010 “flash crash” in which the U.S. equity market plunged nearly ten percent in a matter of minutes, then quickly rebounded. Compliance with the rule, which places risk management controls on any broker-dealer that offers direct trading access, has been required since November 2011, yet firms still have lingering questions about the adequacy of their self-policing programs. Julie Dixon, managing principal at Titan Regulation, discusses the origins of the Market Access Rule and how it affects buy side firms and their trading activity. She also offers advice on how hedge funds and broker-dealers can be sure their programs are compliant, and what a firm may expect during a regulatory audit of its risk systems.

Watch the video »

MarketsWiki

MarketsWiki Recent Updates

People

Diane Saucier; Douglas Ashburn

Companies, Organizations and Groups

Thailand Futures Exchange; Oslo Børs; Warsaw Stock Exchange; Tokyo Commodity Exchange, Inc.; Athens Derivatives Exchange; London Metal Exchange; Celoxica; Moscow Exchange; NASDAQ OMX NLX; CME Group, Inc.

Miscellaneous

Upcoming Events

Statistics

40,776,419 pages viewed, 7,525 articles, 160,809 edits
MarketsWiki Statistics

Lead Stories

EU Said to Raise No Objections to ICE Takeover of NYSE Euronext
Nandini Sukumar – Bloomberg
European antitrust regulators have lodged no objections to IntercontinentalExchange Inc.’s takeover of NYSE Euronext as a decision on the transaction approaches, according to a person with direct knowledge of the matter.
jlne.ws/18VvePK

ICE Sees Late Trade in Credit-Default Swap Futures
Katy Burne – MoneyBeat – WSJ
IntercontinentalExchange’s futures tied to credit default swaps traded Monday afternoon in their market debut, after seeing no trades earlier in the session, according to a spokeswoman for the Atlanta exchange.
jlne.ws/18VvePL

Relaxed Japan Short-Selling Rules to Be Permanent From November
Eleni Himaras – Bloomberg
Rules making it easier for investors to short Japanese stocks will become permanent in November, according to the nation’s markets regulator.
jlne.ws/18VvcYg

Britain Charges Former Trader in Libor Investigation
JULIA WERDIGIER – NYTimes.com
LONDON – Britain’s Serious Fraud Office said Tuesday that it had filed eight fraud charges against a former UBS trader, Thomas Hayes, in connection with the manipulation of the London interbank offered rate, or Libor.
jlne.ws/18VvePM

Britain wins safeguard in EU market rules deal
Reuters
Britain won backing from its European Union partners on Monday to prevent parts of its financial services sector potentially having to relocate to the euro zone.
jlne.ws/18VvePP

Swiss Bankers Stripped of Secrecy as Minister Embraces Data Swap
Bloomberg
For almost eight decades, many Swiss bankers had an easy job taking in often untaxed money from wealthy customers from around the world. Now, the country’s first female finance minister is changing the way Switzerland’s 300 banks are doing business.
jlne.ws/18VvePT

Swiss Parliament Pushes Back on U.S. Banks Deal
JOHN LETZING – WSJ.com
The lower house of Switzerland’s parliament voted against adopting a plan for banks to step around the Alpine nation’s banking secrecy laws and hand information about their dealings with suspected American tax evaders to U.S. authorities in an attempt to reach a sweeping resolution.
jlne.ws/18VvfTI

Obama says Bernanke has ‘stayed a lot longer’ than he wanted at Fed
Reuters
President Barack Obama hinted in an interview aired on Monday that he may be looking for a new chief of the U.S. Federal Reserve Bank, saying current Chairman Ben Bernanke has stayed a lot longer than he had originally planned.
jlne.ws/18Vvf6e

Regulatory

EU Agrees on Tighter Oversight of ‘Dark Pools’
TOM FAIRLESS – WSJ.com
European Union states reached a tentative deal Monday to tighten regulation of derivatives markets that sets finance ministers on a collision course with the European Parliament, opening the prospect of months of haggling over a compromise deal.
jlne.ws/18VvfTM

Regulators to set post-crisis rules for capping bank risk-taking
Reuters via Yahoo! News
By Huw Jones LONDON – Regulators decide this week how banks should set a limit to the risk they take onto their balance sheets, with investors likely to pressure lenders to comply before formal implementation in 2018.
jlne.ws/18Vvf6f

CFTC Certifies Futures Contracts on the MSCI World Index, MISCI Europe Index, MSCI Japan Index, and the MSCI All Countries Asia Pacific ex-Japan Index Submitted by Eurex Deutschland
The Commodity Futures Trading Commission’s Division of Market Oversight issued a letter advising Eurex Deutschland that its MSCI World Index, MSCI Europe Index, MSCI Japan Index, and MSCI All Countries Asia Pacific ex-Japan Index futures contracts submitted for review on April 29, 2013 were deemed certified.
jlne.ws/18VvfTO

CFTC’s Division of Market Oversight Provides Time-Limited No-Action Relief to Provide for Transition to SEF Registration
The Commodity Futures Trading Commission’s (CFTC) Division of Market Oversight (DMO) today announced the issuance of a time-limited no-action letter providing temporary no-action relief to entities that have been operating pre-Dodd Frank trading platforms. The Commission published its final SEF rules in the Federal Register on June 4, 2013.
jlne.ws/18Vvf6m

Are Average Investors Better Off Since Crisis? Top Regulator Says: Not Really
Yahoo! Finance: The Daily Ticker
CFTC Commissioner Bart Chilton is an outspoken advocate for financial reform to protect consumers, but he’s also outspoken about the lobbying and litigation that hold up the process. And there never seems to be an absence of stories that could leave the average investor feeling like the markets are, quite frankly, rigged against them.
jlne.ws/18Vvf6q

ASIC refines dark liquidity, high-frequency trading rules
‘ASIC’s taskforces on high-frequency trading and dark liquidity, and earlier work over the past two years, has seen an improvement in the awareness of these areas of trading, hence the move not to proceed with some rules at this time,’ ASIC Commissioner Cathie Armour said.
jlne.ws/18VvfmF

ASIC and the Australian Charities and Not-for-profits Commission sign an MOU
jlne.ws/18VvfmG

[ASIC] Make your first money decision a good one
jlne.ws/18Vvgae

Markets In Financial Instruments: Council Of The European Union Sets Out Its Position
The Permanent Representatives Committee today agreed, on behalf of the Council, its position on new rules on the provision of services for investments in financial instruments and on the operation of regulated financial markets.
jlne.ws/18Vvgai

Exchanges & Trading Facilities

ICE adds interval price limit circuit breaker
The Trade
Intercontinental Exchange (ICE) Group’s ICE Futures US exchange has today launched interval price limit (IPL) functionality on futures contracts. The IPL system will act as a temporary circuit breaker on ICE’s electronic platform.
jlne.ws/18VvfmM

LME says Kaohsiung in Taiwan is new port for physical delivery of contracts
South China Morning Post
The London Metal Exchange has approved Kaohsiung to be the ninth port in Asia that can accept physical delivery of seven types of its metal contracts.
jlne.ws/18VvfmQ

NASDAQ OMX Newsroom – Press Release – NASDAQ OMX
The NASDAQ OMX Group, Inc. today announced four new university clients—bringing academic institution totals to 30—who have selected Directors Desk, one of the world’s leading secure board portals, to bolster board communications and effectiveness.
jlne.ws/18Vvgar

CFE Modifies Pricing For S&P 500 Variance Futures Contract
CBOE Futures Exchange, LLC on Monday, June 24 will revise the pricing method for its S&P 500 Variance futures contract, which began trading on CFE in December 2012. The change involves the timing of when CFE converts volatility points to futures prices so that the prices of VA futures are more directly comparable to prices in the over-the-counter variance swap market.
jlne.ws/13Ov5Z4

EEX: NCG Futures to be migrated onto PEGAS on 27 June
The European Energy Exchange (EEX) continues to migrate its natural gas products onto PEGAS, the EEX and Powernext common exchange platform.
jlne.ws/18VvfmW

[CBOE] AIM Auto Match with a Limit Activation
jlne.ws/18Vvgav

MIAX Options Exchange Market Maker Orders In Appointed Classes
jlne.ws/18VvfDg

Hedge Funds & Managed Futures

BlackRock Weighs Merits of Standardized Corporate Bond Issues
Katy Burne – MoneyBeat – WSJ
BlackRock Inc., anticipating a logjam in the corporate bond market as interest rates rise, is proposing a solution to lower trading volumes: having borrowers issue more-uniform deals.
jlne.ws/18VvgqL

The Dow Jones Credit Suisse Hedge Fund Index Finished Up 0.42% in May
jlne.ws/18VvfDn

An Introduction to Dynamic Hedging with Autospreader
TradeTalk – Trading Technologies
When considering what to cover in my first blog post, I kept coming back to topics related to spread trading. As a former full-time trader who made a living formulating and executing spread strategies, and as the person who leads the product management function for proprietary trading at TT, which includes automated trading, I think a lot about themes related to spreading.
jlne.ws/18VvgqO

Private equity leads the way in tax efficiency
Anne-Sylvaine Chassany, Jim Pickard and Andrew Bounds – FT.com
Some UK lawmakers and union representatives have called for restrictions on tax advantages related to high levels of debt after research by the Financial Times showed the measures have helped some of the country’s best-known brands owned by private equity groups to reduce their corporation levies.
jlne.ws/18VvgqQ

Stan Druckenmiller Gave A Startlingly Blunt Reason For Why Hedge Fund Managers Don’t Like Bernanke
Business Insider
It’s no secret that a lot of hedge fund managers on Wall Street have no love for Ben Bernanke or his monetary policy. Journalists, economists and pundits have mused on the reason why more times that anyone can count.
jlne.ws/18VvfDs

Investors Don’t Want to Destroy Themselves With Derivatives, After All
New York Magazine
Hey, psst. Wanna buy a synthetic CDO? Earlier this month, we got the news that a couple of Wall Street banks were trying to drum up interest in a synthetic collateralized debt obligation, or CDO, the kind of so-called “weapon of mass destruction” that most people blame for exacerbating the financial crisis.
jlne.ws/18VvfDt

Cargill to acquire Northstar Grain LLC assets
Cargill said it has reached an agreement to acquire the grain storage and crop inputs assets of Northstar Grain LLC and associated properties in Decatur in southwest Michigan.
jlne.ws/18VviyQ

[Video] Is Silver Lost in the Gold Market Spiral?
Bloomberg
In today’s “Futures In Focus,” Suki Coper, precious metals analyst at Barclays, examines the silver market and the impact of gold’s price drop on the metals markets. She speaks on Bloomberg Television’s “Market Makers.”
jlne.ws/18VviyU

Xetra/FWB: Subscription Start For KARLIE Group GMBH Bond
jlne.ws/18VviyV

Banks & Brokers

FDIC’s Complex-Firms Chief Exits as Banks Write New Wills
Bloomberg
Jim Wigand, who oversees the Federal Deposit Insurance Corp.’s Dodd-Frank Act powers to dismantle the most complex U.S. banks in a crisis, is stepping down next month.
jlne.ws/18Vvgr1

Scottrade ranks highest in J.D. Power’s 2013 U.S. Self-Directed Investor Satisfaction Study
Business Wire via Yahoo! Finance
Online investing services company Scottrade, Inc. ranks highest in overall satisfaction in J.D. Power’s 2013 U.S. Self-Directed Investor Satisfaction Study released today, bucking the downward trend of the industry.
jlne.ws/18VvgHg

British private bank goes the extra furlong for clients
Reuters via Yahoo! News
By Laura Noonan LONDON – When Royal Ascot gets under way on Tuesday, the race meeting’s official bank will be continuing a tradition almost as old as the event that remains one of the highlights of the British aristocracy’s Social Season.
jlne.ws/18VvgHm

Osborne Says Mansion House Speech Will Detail RBS, Lloyds Plans
Bloomberg
Chancellor of the Exchequer George Osborne said he will use his Mansion House speech tomorrow to set out plans for the return of Royal Bank of Scotland Group Plc and Lloyds Banking Group Plc to the private sector.
jlne.ws/18VviyY

Commerzbank Nears Deal on 5,000 Job Cuts
ULRIKE DAUER – WSJ.com
Germany’s Commerzbank AG and the bank’s labor representatives have agreed in principle on cutting more than 5,000 full-time jobs group-wide, a person familiar with the matter said Tuesday.
jlne.ws/18Vviz1

Universal banks start to feel the strain
William Wright – Financial News
When is a universal bank not a universal bank? When it’s actually called Universal Bank. This is a small community bank in California, which is about as far away as it is possible to imagine from the sort of global financial titan that its name suggests.
jlne.ws/18VvgXP

US buyside wary of high and low-touch convergence
Anish Puaar – Financial News
The US buyside broadly favours the sellside’s increasingly holistic approach to serving their equity trading needs, but is concerned that the move to combine high and low-touch trading may compromise the service they receive.
jlne.ws/18VvgXX

Axa will lend E10bn for infrastructure projects
Alistair Gray in London – FT.com
Axa plans to lend E10bn to infrastructure projects over the next five years, in a clear sign that insurance companies are rushing to fill the funding gap created by reluctant banks.
jlne.ws/18Vviz3

Clearing & Settlement

Omgeo names Jeannie Shanahan as MD of governance, risk management and compliance
In this role, Shanahan will focus on developing and implementing risk-based compliance programmes that support Omgeo’s ongoing commitment to providing services that reduce operational and counterparty risk and promote regulatory compliance.
jlne.ws/17T70of

Markit Acquires Corporate Actions Validation Service from DTCC
Markit, a leading, global financial information services company, today announced that it has acquired the assets of Global Corporate Actions Validation Service (GCA Validation Service), a leading provider of high quality, validated corporate actions data, from the Depository Trust & Clearing Corporation (DTCC).
jlne.ws/18VviPn

CME Group Clearing Advisory: June 2013 Final Foreign Currency Settlement Prices
jlne.ws/18Vvhek

Indexes & Products

SEC’s Definition of an Index Is Outdated
Forbes
What is an index? It?s hard to say these days. An index used to be a broad measure of market value. Today, it appears to mean any list of securities that are configured and managed in any way. This makes indexing confusing.
jlne.ws/18VviPu

Exchanges Sector Heads Into Half Year In Positive Territory
With six months steady growth, the FTSE Mondo Visione Exchanges Index is tracking to the half year in positive territory – the longest period of consistent growth the Index has experienced for some years.
jlne.ws/18VviPv

Moscow Exchange Indices Weekly Review: June 10-14, 2013
jlne.ws/18Vvhez

Technology

Abacus Group Launches FlexDrive
Abacus Group LLC, a leading provider of hosted IT solutions for hedge funds and private equity funds, today unveiled FlexDrive, a file-hosting service that allows hedge funds and private equity firms to securely share and transfer files with other users and other devices.
jlne.ws/18VvhuO

Enyx Enables Custom Connect To Deliver The Latest Shared Ultra Low Latency Microwave Service With Its FBM Solution
jlne.ws/18VviPA

Enforcement

Prosecutors probe market manipulation on Frankfurt Exchange
Reuters
German prosecutors said on Monday they were investigating possible market manipulation of some individual shares on the Frankfurt Stock Exchange by liquidity providers artificially inflating order volumes for small and midcap companies.
jlne.ws/18VviPD

Hedge fund manager used postal box to hide $6 million fraud, Feds say
Tom Polansek and Ann Saphir – Reuters
A North Carolina hedge fund manager used a personal post-office box and forged bank statements to hide his theft of about $6 million over a seven-year period, U.S. regulators and prosecutors said on Monday.
jlne.ws/18VvhuW

Albany May Tighten Rein on Banking Consultants
JESSICA SILVER-GREENBERG and BEN PROTESS – NYTimes.com
New York State’s top financial regulator is preparing to crack down on the consulting firms that banks hire to navigate legal problems like money laundering and wrongful foreclosures, according to people briefed on the plans.
jlne.ws/18Vvj5S

SEC Charges Two Executives in Ponzi Scheme At Dallas-Based Medical Insurance Company
The Securities and Exchange Commission today charged two executives at a Dallas-based medical insurance company with operating a $10 million Ponzi scheme that victimized at least 80 investors.
jlne.ws/18Vvhv0

Former mortgage broker pleads guilty to submitting false documents to lenders
jlne.ws/18Vvj5W

Environmental & Energy

China announces new measures to curb air pollution
AP
China’s Cabinet has announced measures to curb the country’s notorious air pollution, one of the many environmental challenges facing the country that are increasingly angering the public.
jlne.ws/14GP1OB

China Smog Measures Seen as Most Aggressive Yet by Deutsche Bank
Bloomberg
A Chinese government plan to fight air pollution announced last week marks the country’s “most aggressive” push to address smog to date, according to Deutsche Bank AG.
jlne.ws/10rP6Xd

China Emission Trading Experiment Unlikely to Ease Cities’ Smog
Bloomberg
China’s plan to set up markets to trade emissions will make it second only to Europe in efforts to put a price on pumping carbon into the atmosphere. For cities choking on the nation’s smog, expect little relief.
jlne.ws/15e4F0R

Asia-Pacific

JPX Derivatives Trading Volume Passes 200 Million Mark
JPX is proud to announce that today the combined year-to-date trading volume of derivatives products on Osaka Securities Exchange Co., Ltd. (OSE) and Tokyo Stock Exchange, Inc. (TSE) reached 202,335,793 contracts (preliminary figure).
jlne.ws/18Vvhv3

Japan Exchange Group To Re-Launch Super-Long-Term JGB Futures
Japan Exchange Group, Inc. (JPX) announced it has decided to re-launch Super-Long-Term (20-year) JGB futures (SL-JGB futures) based on JGB market conditions and discussions with investors. The re-launch is scheduled for April 2014, following the integration of the derivatives markets.
jlne.ws/18Vvhv4

Stock Exchange of Thailand (SET) Strengthens Its Market Position
The Stock Exchange of Thailand (SET) is strengthening its market position in Asia, having recently passed the Singaporean Exchange with about a 35% higher trading volume. This is an impressive pole-position regarding volumes, and the bourse is now aiming to do the same for market capitalization as well.
jlne.ws/18Vvhv5

Eurex Welcomes UOB Bullion And Futures As First Member To Connect To Its Enhanced Asia Network
Full Connection To Eurex’s Enhanced Network Is Now Available Via New Access Points In Hong Kong And Singapore
jlne.ws/18Vvj5Y

China Foreign-Investment Gains Ease as Economic Slowdown Deepens
Bloomberg
Foreign direct investment in China rose in May by the least in four months, a sign of concern that growth is slowing in the world’s second-biggest economy.
jlne.ws/18Vvj62

Chinese Banks Pressure PBOC to Ease Cash Crunch
LINGLING WEI – WSJ.com
BEIJING—China’s big banks are pressuring the central bank to free up funds to ease an unusual cash squeeze in the world’s No. 2 economy, according to people familiar with the matter, illustrating a stark choice facing Beijing as it grapples with weaknesses in its financial system: add money to its system to help its lenders, or stay the course to rein in a rapid expansion of credit.
jlne.ws/18Vvj65

Press Conference By Taro Aso, Japan’s Deputy Prime Minister, Minister Of Finance, And Minister Of State For Financial Services
jlne.ws/18VvhLl

Hong Kong’s Securities And Futures Commission Bans Michelle Ng Man Chow For Life
jlne.ws/18VvhLm

Shenzhen Stock Exchange Market Bulletin
jlne.ws/18VvhLt

HKFE Announces Revised Margins For Aluminum Corporation Of China Futures
jlne.ws/18VvhLu

Frontier Markets

UAE revives bourse merger proposal
The Peninsula
The United Arab Emirates has revived a proposal to merge its two main stock exchanges in a state-backed deal that could boost trade in the local market and attract more foreign investment to the Gulf state, sources familiar with the plan said.
jlne.ws/18VvhLv

Will Sebi ever fine Indian exchanges?
Livemint
In India, stock exchanges have received censures from Securities and Exchange Board of India, or Sebi, (hardly ever publicly); but they have never been fined. Regulators are generally reluctant to impose financial penalties on stock exchanges, because of an underlying belief that this will shake investor confidence.
jlne.ws/18VvhLz

Greece, the Newest Emerging Market, May Be a Hot One
Minyanville
But there is one potential bright spot for the markets of the developing world: Greece. Yes, Greece.
jlne.ws/18VvjmD

SGX And CII Forum Highlights Infrastructure Investment Opportunities In India
jlne.ws/18Vvi1S

Nigerian Stock Exchange Reviews Composition Of Market Indices
jlne.ws/18VvjCV

First Read

Jack Schwager on Market Wizards and How the CTA Space is Changing
MarketsWiki.tv

Jack Schwager is a well-known name in the financial market community today, as author of trading classics such as: Market Wizards in 1989, The New Market Wizards in 1992 and Stock Market Wizards in 2001. He’s added to the series in May 2012, with Hedge Fund Market Wizards, and more recently released book Market Sense and Nonsense, where he explores investment models and the theories of how markets work.

He spoke with JLN editor-in-chief Jim Kharouf about hedge fund managers and how the CTA space has changed, what’s happened to managed futures since its breakout year in 2008 and his opinion of just how much growth is left for CTA sector.

Schwager, who is currently a co-portfolio manager at ADM Investor Services, helps manage ADM’s Diversified Strategies Fund, a portfolio of futures and FX managed accounts. The fund combines both system and discretionary managers that use technical and fundamental strategies.

Watch Part 1 »

Watch Part 2 »

++++

How CBOE’s new boss differs from the old boss
By Lynne Marek – Crain’s
Edward Tilly, who took over as CEO of CBOE Holdings Inc. last month, has had a vastly different career path than his predecessor, Bill Brodsky. While few expect him to make major changes in the company’s direction, there could be day-to-day differences, particularly in how he handles the newly sensitive topic of regulation.
jlne.ws/12QmMiP

***** Ed Tilly is no Bill Brodsky or John Lothian for that matter. But he is one very good CEO and a terrific communicator.

++++

Nasdaq targets fixed income growth
William Mitting – FOW
Two years ago, cross-border mega mergers between exchanges were all the rage. Following the failure of most proposed deals in the face of competition concerns and thinly veiled protectionism, cash rich exchanges with an appetite for acquisitive growth have altered course. In today’s market, an exchange deal is more likely to be strategic, targeting a new service or asset class rather than economies of scale or global reach.
jlne.ws/12QmRTp

***** I would swap fixed income growth for variable income growth.

++++

Rigged Benchmark Probes Proliferating From Singapore to London
Bloomberg
The probe of Libor manipulation is proving to be the tip of the iceberg as inquiries into assets from derivatives to foreign exchange show that if there’s a chance to rig benchmark rates in world markets, someone is usually willing to try.
jlne.ws/12QmRTr

****** I am waiting for news that the trucking market is rigged.

++++

IntercontinentalExchange Sets Daily Record for Combined Agriculture and Financial Product Set; New Daily Record for ICE Russell 1000 Growth Index
IntercontinentalExchange, a leading operator of global markets and clearing houses, today reported a record daily volume in agriculture and financial contracts traded on ICE Futures U.S. of 889,193 contracts on June 13. The previous daily volume record was 851,852 on June 12, 2012.
jlne.ws/120VzCi

***** I love the smell of record volume in the morning. It smells like victory.

++++

Leading derivatives industry executive to head Celoxica’s new business development in the US
Celoxica, a leading provider of ultra low latency market data, order entry and pre-trade risk solutions for automated trading firms and brokers, today announced the hire of Diane Saucier, to head its business development in the US.
jlne.ws/11TDpqo

***** You just knew that someone as capable, talented, respected and connected as Diane Saucier would land on her feet well. Congrats Diane on the new job.

++++

Derivatives Are Weapons Of Slow Economic Destruction: Study
Mark Gongloff – Huffington Post
We have learned, painfully, of the damage derivatives can do to an economy in a financial crisis. But derivatives are hurting the economy even on its best days, according to a new study.
jlne.ws/14BiLwe

***** I have a lifetime of experience that tells me this study and headline is a bunch of baloney.

++++

Trading Faster Than The Speed Of Reality
TechCrunch
At 1:07 p.m. on April 23, a hijacked AP Twitter account falsely reported an attack on the White House. Seconds later, major US stock indexes started to fall. They were down 1 percent by the time the tweet was publicly identified as bogus three minutes later. And in another three minutes, the markets had recovered to pre-tweet levels.
jlne.ws/12QmPuM

***** The speed of your reality depends on a lot of things you never see.

++++

The bad-weather scale of regulation
Chris Newlands – FT.com
Tsunamis, tidal waves and avalanches – regulation is dampening the spirits of fund management professionals so much that they have started referring to impending rule changes, which they believe to be excessive and onerous, in units of bad weather.
jlne.ws/12QmPuN

***** All I know is there is a derecho coming from East to West directly from Washington, DC.

++++

FINRA director in U.S. resigns after old theft indictment surfaces
Reuters
A regional director for the securities industry’s self-regulatory agency resigned several weeks after the organization received a letter revealing the official had pleaded guilty two decades ago to charitable bingo fraud.
jlne.ws/12QmPuT

***** BINGO!!!!

++++

Compliance Advice on SEC’s Market Access Rule from Julie Dixon of Titan Regulation
MarketsWiki.tv

SEC Rule 15c3-5 (“Market Access Rule”), finalized in November 2010, is the commission’s response to the May 6, 2010 “flash crash” in which the U.S. equity market plunged nearly ten percent in a matter of minutes, then quickly rebounded. Compliance with the rule, which places risk management controls on any broker-dealer that offers direct trading access, has been required since November 2011, yet firms still have lingering questions about the adequacy of their self-policing programs. Julie Dixon, managing principal at Titan Regulation, discusses the origins of the Market Access Rule and how it affects buy side firms and their trading activity. She also offers advice on how hedge funds and broker-dealers can be sure their programs are compliant, and what a firm may expect during a regulatory audit of its risk systems.

Watch the video »

++++

MarketsWiki

MarketsWiki Page of the Day
Paul Tucker
jlne.ws/178JLXK

MarketsWiki Recent Updates

People

Diane Mix Birnberg; Sara Jean Goodman; Jeff Borchardt; Paul Tucker; Sir Mervyn King

Companies, Organizations and Groups

Horizon Cash Management LLC; Orc Group; Geneva Trading USA, LLC; FOW Magazine; Contango Markets

Statistics

40,738,560 pages viewed, 7,524 articles, 160,718 edits
MarketsWiki Statistics

Lead Stories

Japan Exchange plans infrastructure bourse: report
Market Watch
Japan Exchange Group Inc., operator of the Tokyo Stock Exchange, will create a new market, possibly in fiscal 2015, to attract private capital to upgrade or replace infrastructure built during Japan’s postwar boom, the Nikkei reports.
jlne.ws/12QmPuW

LSE to launch electronic swaps trading venue
Philip Stafford – FT.com
The London Stock Exchange Group will launch an electronic platform for swaps in Europe, pushing it further into fixed-income trading as the industry prepares to meet a global push to reform derivatives markets.
jlne.ws/12QmS9Y

Bid to relaunch synthetic CDO unravels
Tracy Alloway, Tom Braithwaite and Dan McCrum in New York – FT.com
An attempt by two big Wall Street banks to revive notorious credit boom-era securities blamed for exacerbating the global financial crisis has failed after investors balked at buying some of the derivatives on offer.
jlne.ws/12QmPLg

Societe Generale to launch dark pool in US
Michelle Price – Financial News
Societe Generale is planning to launch its European dark pool in the US in response to growing demand for dark liquidity among its US client base, according to two individuals familiar with the move.
jlne.ws/12QmPLh

Nasdaq OMX NLX Achieves Low Latency and Rising Trade Volumes in Start-up Phase
Sarah Underwood | Low-Latency.com
Nasdaq OMX NLX opened for business on the last day of May, offering a market for European short-term and long-term interest rate derivatives designed to provide ease of access, efficiency and the flexibility to respond to customer demands and list new products rapidly. Fast forward a couple of weeks and Charlotte Crosswell, CEO of NLX, says trading volumes are building, trades are being filled in 100 to 200 microseconds, and NLX is considering new developments.
jlne.ws/11jfQI0

JOBS Act 2.0
Clarke Camper – Inside the Beltway
Building on the bipartisan success of last year’s JOBS Act, some House members plan to introduce “JOBS Act 2.0″ legislation that aims to increase investor interest in startup businesses and “make it easier for small companies and entrepreneurs to raise capital,” reports POLITICO.
jlne.ws/12QmPLj

In Countrywide Case, Watchdogs Without Any Bark
GRETCHEN MORGENSON – NYTimes.com
FOR the last two weeks, a justice in New York State Supreme Court has heard testimony in one of the most pivotal cases of the financial crisis. But the case, being heard by Justice Barbara R. Kapnick, extends far beyond the impact of the settlement on Bank of America’s balance sheet.
jlne.ws/12QmPLn

European Union Divided Before G-8 Meeting
New York Times
Meeting before the Group of 8 summit, European Union members could not muster a united front over issues like the economy and protecting culture.
jlne.ws/12QmSqs

Regulatory

EU outlines fines for rigging benchmarks
Suzi Ring and Anish Puaar – Financial News
The European Commission is preparing “draconian” financial penalties for firms and individuals that rig the “critical” benchmarks that shape the world’s financial system.
jlne.ws/12QmSqu

Directors to be liable for breaches of pay policy
Alison Smith, Chief Corporate Correspondent – FT.com
Directors who serve on remuneration committees will be personally liable for overpayments that fall outside a company’s pay policy under the new “say on pay” regime that comes into force in October.
jlne.ws/12QmSqz

SEC: Amelia Cottrell Named Associate Regional Director For Enforcement In New York Office
The Securities and Exchange Commission today announced the promotion of Amelia A. Cottrell to Associate Regional Director for Enforcement in the agency’s New York Regional Office.
jlne.ws/12QmSqD

Remarks At The DirectWomen Board Institute By SEC Commissioner Elisse B. Walter
jlne.ws/12QmPLx

ASIC to update and consolidate electronic prospectus guidance
jlne.ws/12QmSqG

EIOPA publishes report on handling insurance contracts with long-term guarantees under solvency II
jlne.ws/12QmQ1L

Exchanges & Trading Facilities

Swap futures up, but Eris takes long-term view
The Trade
A mild boost to swap futures volumes on Eris Exchange since Monday’s OTC derivatives clearing deadline for buy-side firms is minor compared to long-term expectations, the venue said. Trading on Monday, Tuesday and Wednesday on Eris Exchanged netted 7,320 contracts building on last week’s record full-week volume of 14,291 contracts, according to the venue’s own figures.
jlne.ws/12QmSqH

London Metal Exchange: LME lists Taiwanese port as new delivery location
The London Metal Exchange (LME) has approved Kaohsiung, Taiwan as a good delivery point for primary aluminium, aluminium alloy, copper, lead, nickel, tin and zinc. This will be the LME’s ninth location in Asia.
jlne.ws/12QmSGV

London Stock Exchange launches London Investor Show 2013
London Stock Exchange today announced that the London Investor Show – the UK’s largest private investor conference – will return to the Olympia exhibition centre on Friday 25 October 2013.
jlne.ws/12QmQ1P

Performance Of Dairy Derivatives Segment Grew Further In Hsignificant Increase In Eurex’s Dairy Derivatives Trading Volume/ Eurex Exchange Reinforces Market Leadership In European Dairy Futures
The international derivatives market Eurex Exchange has seen a significant increase in trading activities in its dairy derivatives segment since the beginning of the year. The total 2012 volume was recently exceeded; more than 980 contracts have been traded year-to-date (2012: 908 contracts). The contract volume traded in 2013 so far is equivalent to a nominal volume of around 4,900 tonnes of goods.
jlne.ws/12QmSGZ

Raptor Trading Connects To TMX Atrium Community In North America
TMX Atrium, provider of smarter infrastructure solutions for the financial community, today announced that Raptor Trading Inc., (Raptor) has connected to TMX Atrium in Toronto to take advantage of low latency access to Canadian exchange market data.
jlne.ws/12QmQ1U

Moscow Exchange Launches Trading In A Futures Contract On USD/UAH Currency Pair
On June 14, 2013 the Moscow Exchange started trading on a USD/UAH futures contract on the Derivatives Market.
jlne.ws/12QmSH7

Moscow Exchange: New List Of Securities For Calculation Of The Zero-Coupon Yield Curve In Government Bonds Takes Effect
jlne.ws/12QmQ1V

TOM MTF Statistics Week 24 2013
jlne.ws/12QmQ1W

Hedge Funds & Managed Futures

Temasek paves the way for London-based European hub
Vivek Ahuja – Financial News
Temasek, the triple A-rated S$198bn ($161bn) Singapore investment company, has paved the way to set up a London office, which could act as a hub for its fast-growing portfolio of European investments.
jlne.ws/12QmQ1Z

Hedge Funds Cut Gold Bets as Paulson’s Loss Widens: Commodities
Bloomberg
Hedge funds cut wagers on a gold rally for the first time in three weeks on mounting speculation central banks will curb record stimulus and as this year’s slump in bullion spurred losses for billionaire John Paulson.
jlne.ws/12QmQ22

Bolton to step down at Fidelity China fund
Josh Noble in Hong Kong – FT.com
Anthony Bolton is to retire from running the Fidelity China Special Situations investment trust, ending a difficult three years for one of the UK’s most successful fund managers.
jlne.ws/12QmSXq

Louis Dreyfus appoints new chief
Javier Blas, Commodities Editor – FT.com
Serge Schoen is set to retire as chief executive of Louis Dreyfus Commodities later this month after eight years in the post, during which he boosted the profitability of the privately owned agricultural commodities trading house.
jlne.ws/12QmSXu

Hedge Fund Manager Browder: If I Get Assassinated…
CNBC
Bill Browder, chief executive and founder of Hermitage Capital Markets, told CNBC the Russian government is “apoplectic” over sanctions imposed on Russian officials that he has campaigned for, and if he gets assassinated, “everyone would know who did it.”
jlne.ws/12QmQil

RPMI signals new line for hedge fund strategy
Mark Cobley – Financial News
The manager of the £19bn Railways Pension Scheme has terminated two of its three funds of hedge funds managers as its in-house team takes more control over the way assets are allocated.
jlne.ws/12QmQio

Warren Buffett’s Mentor Was A Crappy Hedge Fund Manager
Business Insider
Jack Bogle, the outspoken godfather of index funds and passive investing strategies, didn’t approve of a recent Wall Street Journal article defending hedge funds.
jlne.ws/12QmQip

Guggenheim Hires Goldman’s Tom Stein for Capital Markets Group
Bloomberg
Guggenheim Partners LLC, the debt manager with more than $180 billion in assets, hired Goldman Sachs Group Inc.’s co-head of U.S. leveraged finance capital markets Tom Stein.
jlne.ws/12QmQiq

CFTC Commitments Of Traders Reports Update
jlne.ws/12QmSXE

Banks & Brokers

Bank of England Advertises for Finance Director to Replace Jones
Bloomberg
The Bank of England advertised in the Sunday Times newspaper today for a finance director to replace Warwick Jones, who retires at the end of this month.
jlne.ws/12QmQit

Stockbrokers eye joint outsourcing
Vanessa Kortekaas – FT.com
Several rival stockbrokers are planning to meet to discuss jointly outsourcing parts of their back offices and ways to compete better with the bulge-bracket banks in an unprecedented sign of co-operation. The discussions among a handful of City brokers are also a reflection of the difficult climate they are operating in, amid rising regulatory costs and fewer corporate transactions to advise on.
jlne.ws/12QmQiw

GFI ForexMatch and GFI Direct Receive Profit and Loss Annual Readers’ Choice Awards
GFI Group Inc., a leading provider of wholesale brokerage, electronic execution and trading support products for global financial markets, today announced that its electronic market for FX products GFI ForexMatch was voted Best Emerging Market Platform and Best FX Options Matching and that its RFQ trading protocol GFI Direct was chosen as Best FX Options Request for Stream by Profit and Loss magazine readers.
jlne.ws/126ipby

Exclusive: Deutsche Bank ‘horribly undercapitalized’ – U.S. regulator
Reuters via Yahoo! News
By Emily Stephenson and Douwe Miedema WASHINGTON – A top U.S. banking regulator called Deutsche Bank’s capital levels “horrible” and said it is the worst on a list of global banks based on one measurement of leverage ratios.
jlne.ws/12QmQiy

JPMorgan to Spin Out Its Private Equity Unit
New York Times
JPMorgan’s last remaining private equity unit, One Equity Partners, will be spun out into a separate company and raise its next fund as an independent firm.
jlne.ws/12QmSXJ

Barclays seeks up to 700 staff for new Dallas technology hub
Reuters via Yahoo! Finance
Barclays is aiming to recruit up to 700 technology staff in the next 18 months at a new center in the United States that will develop applications for investment banking and consumer banking.
jlne.ws/12QmTdY

Blankfein Met With SEC’s White Two Days After Money Funds Vote
Bloomberg
Goldman Sachs Group Inc. Chief Executive Officer Lloyd C. Blankfein met this month with the top U.S. securities regulator to discuss issues including the Volcker rule and regulations for money-market mutual funds.
jlne.ws/12QmQyN

EBS proposes Aggregation Best Practices and Partner Programme to enhance transparency and integrity in the FX Market
EBS, ICAP’s market-leading electronic FX business, today announces its proposals for introducing Best Practices to Aggregation for the FX Market coupled with the EBS Certified Aggregation Partner Programme.
jlne.ws/12QmTe1

Schwab Reports Monthly Activity Highlights
jlne.ws/12QmQyQ

Clearing & Settlement

JP Morgan joins forces with LSE for CSD launch
Sophie Baker – Financial News
JP Morgan is teaming up with the London Stock Exchange Group as part of its move to launch a central securities depository, according to three individuals familiar with the plans.
jlne.ws/12QmTe7

APG explores swap futures to cut cost of central clearing
IPE
APG is studying the possibility of using swap futures – a derivative instrument under development in the US – as a means of cutting the cost of initial margins in central clearing.
jlne.ws/12QmTe8

Indexes & Products

How to Play Middle East’s New EM Status With ETFs
Benzinga
Earlier this week, index provider MSCI (NYSE: MSCI ) announced its annual market reclassification and the news can be broken down three ways. There was some surprise, though arguably not much, and subsequent fallout for the relevant ETFs after Greece was demoted to emerging markets status and it was revealed that Egypt could be bumped down to frontier status in the future.
jlne.ws/12QmQyU

Thai Bourse Announces SET Indices Semi-Annual Review
jlne.ws/12QmTee

Quarterly Changes To The NASDAQ Golden Dragon China Index
jlne.ws/12QmQz0

Changes To The NASDAQ Internet Index
jlne.ws/12QmTut

Semi-Annual Changes To The NASDAQ OMX ABA Community Bank Index
jlne.ws/12QmTuu

Annual Changes To The NASDAQ OMX Global Automobile Index
jlne.ws/12QmTux

Annual Changes To The NASDAQ OMX US Water Index
jlne.ws/12QmQz3

Annual Changes To The NASDAQ OMX Global Water Index
jlne.ws/12QmQz4

Quarterly Changes To The NASDAQ Q-50 Index
jlne.ws/12QmQPi

Technology

GuavaTech, Inc. Announces CBOE Futures Exchange Hosting and Connectivity Access at London LD4 Co-Location Facility
GuavaTech, Inc., a leading managed service provider specializing in customized IT solutions for proprietary trading firms, investment banks, hedge funds, broker/dealers, and FCMs, today announced that it will begin offering proximity hosting and ultra-low latency connectivity solutions for CBOE Futures Exchange (CFE) at the LD4 data center located in London, UK.
jlne.ws/12QmTuA

Amendments to the terms and conditions relating to Orc Group Holding AB’s (formerly Cidron Delfi Intressenter AB)secured notes of up to EUR 60 million
As has previously been announced, on 27 November 2012 Orc Group AB’s parent company, Orc Group Holding AB issued five-year notes in the total aggregate amount of EUR 60 million with a fixed annual coupon of 8.5 per cent paid semi-annually.
jlne.ws/12QmQPk

Blueshift Data Protection Launches Data Backup Services In Singapore Leveraging KVH’s Hosting Service
jlne.ws/12QmTuF

Datawatch Announces Agreement To Acquire Panopticon To Deliver Real-time Big Data Visual Discovery Solutions
Datawatch Corporation, the leading global provider of information optimization solutions, has agreed to acquire Panopticon Software AB, a privately held Swedish company specializing in the delivery of real-time visual data discovery solutions.
jlne.ws/1bN3Ork

Enforcement

U.K. Bank Fines on Risk Management Failures Rose Sevenfold
Bloomberg
The U.K. markets watchdog increased fines for risk management failings by more than seven times last year, according to a report by the Chartered Institute of Internal Auditors.
jlne.ws/12QmQPm

Singapore Punishes 20 Banks in Benchmark Rate Review
CNBC
Singapore’s central bank censured a record 20 banks on Friday after it found more than 100 traders in the city state tried to rig key borrowing and currency rates.
jlne.ws/12QmTuG

[Canada] Dealing representative agrees to sanctions for illegally distributing securities
jlne.ws/12QmQPn

[Canada] Securities regulator alleges fraud and making false statements to an investigator
jlne.ws/12QmTuK

Environmental & Energy

EU carbon market rescue may scrape by next week, prospects shaky
Reuters
A European Commission plan to revive Europe’s carbon market appears headed for a setback that would keep emissions prices depressed for years, although it may scrape approval in a European Parliament committee next week.
jlne.ws/1bJYPYH

China to launch pilot carbon market in Shenzhen
FT.com
China’s economic growth has come on the back of unparalleled coal use, unbreathable air and the unenviable title of being the world’s biggest greenhouse gas emitter.
jlne.ws/11hHFjO

**RKB –From the article: “At the moment we know 635 companies will be covered by the Shenzhen scheme,” said Hongliang Chai of Thomson Reuters Point Carbon, a consultancy, pointing out that their combined emissions add up to just over a third of all Shenzhen’s emissions in 2010. “But we don’t officially know exactly which companies will be covered.

Future points to carbon trading
China Daily (English edition)
As the world’s largest energy consumer, China is stepping up its efforts to cut greenhouse gas emissions by rolling out a series of experimental pilot programs.
jlne.ws/17dTsUT

Frontier Markets

Qatar Exchange Organizes London Forum To Encourage Investments In Qatari Listed Companies
Qatar Exchange (QE), in collaboration with HSBC, last week closed a two-day forum in London that aims to support the further development and practice of QE’s listed companies’ investor relations.
jlne.ws/12QmTKY

Islamic finance in Tunisia could reach 25-40 pct share -study
Reuters via Yahoo! News
By Bernardo Vizcaino DUBAI – Tunisia’s fledgling Islamic finance industry could take a 25 to 40 percent share of the country’s financial sector in five years’ time if necessary rules, consumer education and private investment plans materialise, a Thomson Reuters study found.
jlne.ws/12QmQPv

Malawi Stock Exchange Weekly Trading Report – 14th June, 2013
jlne.ws/12QmQPA

First Read

JLN Guest Editors Selected
John Lothian
David Setters, a London-based derivatives industry consultant and one-time-long-time employee of FOW will guest-edit this newsletter the week of June 24-28. Jim Kharouf and I will be in London that week for International Derivatives Week, put on by the FOA/FIA. David currently works with Clive Furness at Contango Markets, and was one of the founding trustees for the children’s charity Futures For Kids. We welcome David to our exalted list of guest editors and thank him (in advance) for his contributions during what we’re sure will be a busy time during conference week. The following week, I’ll be at summer Boy Scout camp and CQG’s Pat Kenny will do his best to be The Most Interesting Guest Editor in the World.

++++

Compliance Advice on SEC’s Market Access Rule from Julie Dixon of Titan Regulation
MarketsWiki.tv

SEC Rule 15c3-5 (“Market Access Rule”), finalized in November 2010, is the commission’s response to the May 6, 2010 “flash crash” in which the U.S. equity market plunged nearly ten percent in a matter of minutes, then quickly rebounded. Compliance with the rule, which places risk management controls on any broker-dealer that offers direct trading access, has been required since November 2011, yet firms still have lingering questions about the adequacy of their self-policing programs. Julie Dixon, managing principal at Titan Regulation, discusses the origins of the Market Access Rule and how it affects buy side firms and their trading activity. She also offers advice on how hedge funds and broker-dealers can be sure their programs are compliant, and what a firm may expect during a regulatory audit of its risk systems.

Watch the video »

++++

Business as usual at LME despite CEO’s exit
Suzi Ring – Financial News
Since the deal between Hong Kong Exchanges and Clearing and the London Metal Exchange was announced last summer, HKEx chief executive Charles Li has discussed a slew of initiatives to maximise its return from the deal and, according to a number of LME traders, these new plans were never going to include Abbott. “It was no real surprise. I think everybody knows the work had been done and [his] payment had been received”, said one LME trader.
jlne.ws/ZOnU2g

***** The work is NEVER done.

++++

Morgan Stanley to Tiny Exchanges: Justify Your Existence
Jacob Bunge – MoneyBeat – WSJ
Forget too big to fail, some stock exchanges may be too small to justify their status, according to Morgan Stanley. A boom in electronic trading over the past decade has multiplied the number of registered stock exchanges to 13, drawing grumbles from banks and brokers that are obligated to hook up to each market.
jlne.ws/ZOnU2h

***** Normally, stock brokers don’t complain about hookups.

++++

The Race to Zero Latency Is a Race to Nowhere
Emmanuel Carjat – TABB Forum
Until recently, the mantra has been that milliseconds (now microseconds) count. However, trading volumes continue to decline, and it is becoming increasingly harder for high-frequency trading firms and those favoring ultra-low-latency strategies to take a profitable slice of the diminishing pie.
jlne.ws/162EIDv

***** I’ve been to Nowhere; the campsites really suck.

++++

Single dealer platforms poised to survive
Ralph Achkar – FOW
The advent of Single Dealer Platforms has provided numerous benefits to end users by integrating information and liquidity across asset classes and from multiple sources. By enabling trading across asset classes using web-based interfaces, sell-side firms that use SDPs provide their clients with a more comprehensive view into the market, a better opportunity to maximise profitability and the assurance of best execution. In recent months, we have seen more and more banks building an infrastructure to service a wider set of client needs.
jlne.ws/ZOnU2i

***** Personally, I believe in a broad market, not a narrow one.

++++

Recognition for financial innovations that help transform lives
Sarah Murray – FT.com
As business looks for investment opportunities that benefit society and the environment but are also profitable, the winners of this year’s FT/IFC Sustainable Finance Awards highlight some of the most innovative business ideas emerging in the financial sector.
jlne.ws/ZOnU2m

***** Who knew you had to have a conscience to be an innovator?

++++

Brazil’s CVM to Hold Hearing On Competition Among Exchanges
Rogerio Jelmayer – WSJ.com
With private operators clamoring to participate in the promising Brazilian market for equities exchange services, the country’s regulator on Thursday announced it will hold a public hearing on the question. The regulator will seek input from equities market participants on issues such as execution of orders, data consolidation, supervision and self-regulation along with a broad discussion on the question of possible competition.
jlne.ws/ZOnWHi

***** Competition es muy bueno!

++++

Lots Of People Think Paying For News Should Be Illegal
By Matt Levine – Dealbreaker
The Michigan consumer sentiment survey is distributed in three tiers. There is now a significant brouhaha over the fact that some people who pay more get the news release 2 seconds before people who pay less, with CNBC worrying that “the existence of an elite group that receives early information is likely to attract criticism that it doesn’t square with the principle that market-moving information should be released to all market participants equally.” There is not as far as I can tell any brouhaha over the fact that the people who pay less get it 5 minutes before the people who pay zero. No one really cares about a level playing field; they’re just haggling over the price.
jlne.ws/ZOnWHj

***JM: “No one really cares about a level playing field; they’re just haggling over the price.” Zing!

***** But the feelings come from their insides!!!

++++

Buyout Firms Remain Bullish on Turkey Despite Turmoil
Alec Macfarlane – Private Equity Beat – WSJ
Some of the world’s leading private equity firms remain bullish about the Turkish market, despite ongoing turmoil which has engulfed the country since anti-government protests began last month.
jlne.ws/ZOnUiI

***** Talking your position can be a great way to stem losses or protect gains.

++++

Lunch with the FT: Sir Mervyn King
Martin Wolf – FT.com
Sir Mervyn King, who is to end 10 years as governor of the Bank of England at the end of the month, has organised this lunch himself. When I arrive at the restaurant just before 1pm, Sir Mervyn is, predictably, already there. Wearing a suit and tie, he tells me he has picked this date for lunch because he intends to avoid anything that might appear to be a commentary on the policies of his successor, Mark Carney
jlne.ws/ZOnWHo

++++

Politicians should stop their talk of competitiveness
Samuel Brittan – FT.com
What is in a name? Sometimes a lot. When an extra financial burden is imposed on business, cries go out that it will make the country or region concerned “uncompetitive”. The cries may be justified or not. Usually, the issue is a matter of opinion.
jlne.ws/ZOnWHs

++++

14 Great Americans on Twitter Before @HillaryClinton
Yoni Brenner – Bloomberg
Hillary Clinton reactivated her Twitter account this week. Writer Yoni Brenner (@yonibrenner) catches up with other famous Americans on Twitter.
jlne.ws/ZOnUiQ

***** Too clever for me to even comment.

++++

MarketsWiki.tv

Justin Llewellyn-Jones of Fidessa Talks ISVs, Regulation & Technology
MarketsWiki.tv

Justin Llewellyn-Jones, chief operating officer of Fidessa, thinks globally and well, acts globally too. Llewellyn-Jones spoke with JLN editor-in-chief Jim Kharouf about how Fidessa is adapting to the new global marketplace and the demand for multi-asset class platforms and networks.

Watch the video »

MarketsWiki

MarketsWiki Page of the Day
Thomas A. Wittman
jlne.ws/1418GXb

MarketsWiki Recent Updates

People

Yvonne Downs; Christopher Malo; Julie Dixon; J. Christopher Giancarlo; Thomas A. Wittman; Shelia A. Summers; Tim Gits

Companies, Organizations and Groups

Tokyo Stock Exchange, Inc.; Mexican Derivatives Exchange; National Commodity & Derivatives Exchange; Rosario Futures Exchange; Turkish Derivatives Exchange; Tokyo Financial Exchange; MEFF; London Stock Exchange Group plc

Statistics

40,634,125 pages viewed, 7,523 articles, 160,682 edits
MarketsWiki Statistics

Lead Stories

In Fight Over Bank Rules, Regulator Calls for Compromise
New York Times
Bart Chilton, a Democratic member of the Commodity Futures Trading Commission, called on his agency to strike a compromise over plans to rein in risky trading overseas.
jlne.ws/ZOnWHA

EU agrees breakthrough in market rules
Philip Stafford in London – FT.com
EU states reached a deal on Thursday over regulation of banks’ trading activities and competition between clearing houses, signalling a breakthrough in protracted European moves to overhaul its financial markets.
jlne.ws/ZOnWXP

FX Rates Said to Face Global Regulation in Libor Review
Lindsay Fortado, Ben Moshinsky & Jesse Hamilton – Bloomberg
Global regulators may start overseeing currency rates in a widening response to benchmark-rate setting scandals that began with revelations on the manipulation of Libor, according to two people familiar with the matter.
jlne.ws/ZOnWXR

Credit Suisse Offers Exchange-Traded Notes Tied to Commodities
Kevin Dugan – Bloomberg
Credit Suisse Group AG (CS), Switzerland’s second-largest bank, is offering two exchange-traded notes tied to commodities today for trading. The Credit Suisse Commodity Rotation ETN is linked to a commodities benchmark where prompt contracts cost more than later deliveries, a phenomenon known as backwardation, according to a prospectus filed with the U.S. Securities and Exchange Commission.
jlne.ws/ZOnUiX

SEC Plan for Money Market Funds Draws Concerns
Dow Jones
Part of a Securities and Exchange Commission plan to rein in risks in the $2.6 trillion money-market fund industry is raising concerns that it could inadvertently encourage investor stampedes out of the sector.
jlne.ws/ZOnWXW

Singapore punishes 20 banks in Libor probe
Brooke Masters, Chief Regulation Correspondent – FT.com
Singapore authorities have disciplined 20 banks after finding that 133 traders attempted to manipulate three different kinds of interest rate and foreign exchange rate benchmarks, in a dramatic expansion of the global rate-rigging probe.
jlne.ws/ZOnUza

Bank of England Official to Leave
JULIA WERDIGIER – NYTimes.com
The Bank of England said Friday that Paul Tucker would resign as deputy governor. The announcement comes two weeks before Mark Carney takes over as the governor of the central bank.
jlne.ws/ZOnWY6

The ‘Intimidate the CTFC Act’
Alexis Goldstein – The Washington Post
Despite its formal name, H.R. 1256 should really be called the “Intimidate a Financial Regulator Act.” The bill seeks to change how derivatives are regulated.
jlne.ws/ZOnWY7

Bloomberg Reporters’ Practices Become Crucial Issue for Company
AMY CHOZICK – NYTimes.com
Most journalists dream of uncovering government corruption, landing a big interview or winning a Pulitzer Prize. But those are not the goals that Thomas F. Secunda, who co-founded Bloomberg L.P. in 1982 with Michael R. Bloomberg, has in mind.
jlne.ws/ZOnXek

Regulatory

CFTC’s O’Malia fights for more time on swap rules, Chilton takes different tack
Automated Trader
Commissioner Scott O’Malia of the Commodity Futures Trading Commission (CFTC) said he would keep pressing for more time to work out the final shape of cross-border swap rules and he outlined some of the elements he believed needed to be in the guidance, whenever it came.
jlne.ws/16jiWwj

Plan for quashing broker complaints to meet resistance
Reuters via Yahoo! Finance
Within the next few weeks, the Financial Industry Regulatory Authority expects to send the Securities and Exchange Commission a proposal to make it easier for securities brokers to erase certain black marks from their records.
jlne.ws/ZOnXeq

FCA told to improve its game
Reuters via Yahoo! News
By Huw Jones LONDON – The FCA lacks clarity and must be bolder about protecting consumers hit by years of misleading sales tactics, two former top policymakers said on Thursday. The financial crisis prompted Britain to scrap the decade-old Financial Services Authority and replace it with the Financial Conduct Authority in April.
jlne.ws/ZOnXes

[Video] CFTC Announces New Regulation
CNBC
Bart Chilton, Commodities Futures Trading Commission commissioner, explains how a cross-border compliance rule will allow his exchange to regulate subsidiaries of U.S. companies.
jlne.ws/ZOnXev

CFTC Chairman Gary Gensler’s Article In The Banque De France’s April 2013 Financial Stability Review
jlne.ws/ZOnUzp

CFTC: “Cinema Of Uncertainty” – Speech Of Commissioner Bart Chilton Before The Institute Of International Bankers, The Yale Club, New York City
jlne.ws/ZOnXez

Conduct In A New Era: Leaders Rejecting Complacency – Speech By John Griffith-Jones, Chairman, The FCA, To theCityUK Conference
jlne.ws/ZOnUzs

ASIC releases information sheet about applying for a limited AFS licence
jlne.ws/ZOnXeD

Canadian Securities Regulators now require delivery of the Fund Facts for Mutual Funds [CSA]
jlne.ws/ZOnXuV

[AMF Canada] 25 new Ville de Montréal contracts now covered under Integrity in Public Contracts Act
jlne.ws/ZOnXuX

[AMF Canada] Complaint Reporting System (CRS) – Firms have until January 30, 2013 to file their report
jlne.ws/ZOnXuZ

FMA Q1 2013 Survey on Changes in Foreign Currency Loans
Foreign currency lending to private borrowers has dropped by more than a third since the 2008 ban on new loans
jlne.ws/ZOnXv3

[Japan FSA] Personnel changes (issued as of June 14, 2013)
jlne.ws/ZOnXv5

Exchanges & Trading Facilities

JPX Derivatives Trading Volume Passes 200 Million Mark
JPX is proud to announce that today the combined year-to-date trading volume of derivatives products on Osaka Securities Exchange Co., Ltd. (OSE) and Tokyo Stock Exchange, Inc. (TSE) reached 202,335,793 contracts (preliminary figure).
Please refer to the attached document.
jlne.ws/ZOnXv7

The Montréal Exchange’s Quarterly Derivatives Newsletter
This edition’s feature article, “How the BAX became the global benchmark”, highlights the evolution of MX’s signature product, the Three-Month Canadian Bankers’ Acceptance Futures contract (BAX). The introduction of the BAX represented a new vision for MX and ultimately ushered in the modern era of Canadian financial futures – the BAX is now recognized worldwide as the benchmark indicator for Canadian short-term interest rates.
jlne.ws/ZOnXLn

NYSE LIFFE WELCOMES ZHUJIANG INTERNATIONAL FUTURES CO. AS A NEW MEMBER
jlne.ws/ZOnV6j

NYSE Euronext Welcomes Coty Inc. to the New York Stock Exchange on its First Day as a Publicly Traded Company
jlne.ws/ZOnXLv

Program Trading Averaged 27.1 Percent of NYSE Volume during June 3-7
jlne.ws/ZOnV6l

MIAX – Attributable Orders Available Monday, June 17, 2013
jlne.ws/ZOnV6p

Bermuda Stock Exchange Will Be Closed For Bermuda National Heroes Day Holiday
jlne.ws/ZOnXLE

TOM Insight May 2013
jlne.ws/ZOnV6u

Oslo Børs To List Derivatives On Norwegian
Oslo Børs expands its derivatives offer and from Monday 17 June options, forwards and futures will be listed on Norwegian Air Shuttle ASA (NAS) as the underlying share.
jlne.ws/ZOo0Hb

Hedge Funds & Managed Futures

BlackRock Equity-Side Headache Persists
KIRSTEN GRIND – WSJ.com
BlackRock Inc., the world’s largest money manager, is completing an overhaul of its underperforming U.S. stock unit, including a purge of management teams at more than half of the funds in the group. The early results show there is more work to be done.
jlne.ws/ZOnY1X

Fund Divas Warble With Index Angst
CNBC
The mutual fund market has come full circle from an era in which active managers could walk on water to a world in which the general investor assumption is that an active manager can never beat the index.
jlne.ws/ZOo0Hi

Algebris plans low-fee financials fund
Sam Jones, Hedge Fund Correspondent – FT.com
Algebris Investments, the London-based hedge fund run by Davide Serra, is preparing to launch a new low-fee, long-only fund to invest in global financial stocks and bonds.
jlne.ws/ZOnY21

Cinven beats E5bn target for new fund
Ayesha Javed – Financial News
Investors have pledged an additional E300m for Cinven’s latest European buyout fund, bringing the total to E5.3bn. The target-busting fundraising came amid this week’s successful listing of portfolio firm Partnership Assurance which brought an eight times return for Cinven investors.
jlne.ws/ZOo0Xz

Vision Capital bolsters US team
Jennifer Bollen – Financial News
Vision Capital, one of the most established secondaries investors in Europe, has added to its New York team as it targets so-called end-of-life buyout funds at a time when US funds are increasingly looking to the second-hand private equity market for liquidity.
jlne.ws/ZOnYio

Controversy builds over VC fund returns
John Shinal – MarketWatch
Since the dot-com boom ended more than a decade ago, the conventional wisdom in Silicon Valley is that only the very best venture capital firms are generating investment returns that beat the average annual performance of the public stock markets.
jlne.ws/ZOo0XH

There Are A Bunch of Hedge Funds That Can’t Wait To See Steve Cohen Go Down
Business Insider
Cohen, the billionaire founder of SAC Capital Advisors, is facing an insider trading imbroglio at his fund, but has yet to be personally implicated. SAC manages about $15 billion.
jlne.ws/ZOnYiq

Banks & Brokers

Goldman offers top clients automated block trading
Reuters via Yahoo! News
By Lauren Tara LaCapra NEW YORK – Goldman Sachs Group Inc has quietly offered some top clients a tool that allows them to plug into its trading system and buy or sell large blocks of stock electronically. The technology is part of a broader platform called Marquee, details of which not been previously reported, but were confirmed to Reuters by Goldman executives.
jlne.ws/ZOnYir

Stephen Hester: Anatomy of a departure
Patrick Jenkins, Banking Editor – FT.com
Sir Philip Hampton likes to see himself as a marriage counsellor, who has often been called upon to manage a rocky relationship between the government (Royal Bank of Scotland’s biggest shareholder) and Stephen Hester (the bank’s now departing chief executive).
jlne.ws/ZOo0XN

RBS faces struggle to find CEO amid political meddling
Reuters via Yahoo! News
By Matt Scuffham and Chris Vellacott LONDON – Royal Bank of Scotland will struggle to recruit a suitable replacement for ousted chief executive Stephen Hester, someone who must steer it through privatization and accept that political interference comes with the job.
jlne.ws/ZOnYiu

Ex-Cantor brokers plan hiring spree
Harriet Agnew – Financial News
Makor Capital, a fast-growing agency brokerage group that was set up two years ago by former senior executives from Cantor Fitzgerald, wants to expand its headcount by 50% over the next six months and is seeking to pick up staff laid off by banks.
jlne.ws/ZOo0XR

JPMorgan makes another change in chief risk office
Reuters via Yahoo! News
NEW YORK – John Hogan, who became chief risk officer of JPMorgan Chase & Co as the company was just beginning to lose billions of dollars on its London Whale derivatives trades last year, may leave the company, CEO Jamie Dimon said on Thursday.
jlne.ws/ZOnYiB

Cameron Says Return on RBS More Important Than Timing
Bloomberg
Prime Minister David Cameron said U.K. voters are more interested in getting their money back from Royal Bank of Scotland Group Plc than in its quick return to the private sector.
jlne.ws/ZOo1eb

Chase, Citigroup among banks reportedly hacked in $15M heist
Chicago Tribune
Hackers allegedly targeted 15 financial institutions, including JPMorgan Chase & Co., Citigroup Inc. and E-Trade, as part of a nearly two-year-long scheme to hack into customer accounts online to steal at least $15 million, U.S. authorities announced this week.
jlne.ws/ZOnYyV

JPMorgan Chase holds internal employee job fair
The Buffalo News
JPMorgan Chase is holding an “internal” job fair today for employees of its Albion call center, to allow them to apply for 150 job openings that JPMorgan Chase has in Rochester, Sen. Charles Schumer’s office announced.
jlne.ws/ZOo1ec

JPMorgan Chase Names Esteve Head of EMEA Equity Syndicate
Bloomberg
Esteve succeeds Greg Chamberlain, who will become head of the U.K. equity capital markets team, according to the memo, which was confirmed by a spokeswoman for the New York-based bank.
jlne.ws/ZOnYyY

UBS Investment Bank Names Sara Ferrari to Emerging Markets Role
Bloomberg
UBS AG said Sara Ferrari will coordinate the development of the emerging markets business within the investment bank as the biggest Swiss wealth manager expands in those regions, according to an internal memo.
jlne.ws/ZOo1ek

UBS Loses Top Spot In European Equity Research As Competition Heats Up
Nasdaq
The radical transformation to its business model that UBS initiated early last year may be drawing to a close, but the journey sure has left its marks on the Swiss banking giant.
jlne.ws/ZOo1uC

Clearing & Settlement

DTCC Enhancement Increases Accuracy of Mutual Fund Data
The Depository Trust & Clearing Corporation’s (DTCC) Wealth Management Services (WMS) division has introduced a major enhancement to Mutual Fund Profile Service II (Profile), DTCC’s multi-dimensional repository of databases allowing funds, broker/dealers and other distribution firms to automate and streamline the exchange of timely information regarding securities, participants and distributions.
jlne.ws/ZOnYz3

Clearstream cuts custody fees for soon-to-be EU member Croatia
jlne.ws/ZOnYz5

Indexes & Products

[TSE] New 3 ETFs to be Listed on July 17, 2013 (Wed.)
jlne.ws/ZOnYz7

Oslo Børs: Changes To The Composition Of The OBX Index From 21 June
jlne.ws/ZOo1uL

Enforcement

SEC Charges Revlon with Misleading Shareholders in Going Private Transaction
The Securities and Exchange Commission today charged cosmetics and beauty care manufacturer Revlon with violating federal securities laws when the company misled shareholders during a “going private transaction.”
jlne.ws/ZOo1uO

Ex-Goldman Sachs Trader’s Request on Scheme Claim Opposed
Bloomberg
Former Goldman Sachs Group Inc. trader Fabrice Tourre’s request to exclude a scheme liability claim was opposed by the U.S. Securities and Exchange Commission in its lawsuit over collateralized debt obligations.
jlne.ws/ZOnYPr

SEC: Former Mutual Fund Directors Agree To Settle Claims That They Failed To Properly Oversee Asset Valuation
jlne.ws/ZOo1uT

New Zealand’s Financial Markets Authority: Home Detention For Dominion Finance Directors
jlne.ws/ZOnYPx

Environmental & Energy

UN Climate-Talks Collapse Piles Pressure on November Summit
Bloomberg
United Nations talks on reforms to emissions-market rules stalled this week after members rejected a proposal to reconsider the body’s decision-making rules, putting additional pressure on a climate summit in November.
jlne.ws/13F9QsH

Norwegian Minister Seeks a More ‘Open’ European Energy Market
Bloomberg
Norwegian Oil and Energy Minister Ola Borten Moe called for a more “open” European market for the industry as nations in the region debate future policy and the Scandinavian country seeks to increase demand for its gas.
jlne.ws/11ctxZ0

Goldman Sachs Eyes Japan Offshore Wind in Clean Energy Expansion
Bloomberg
Goldman Sachs Group Inc. (GS), the New York-based bank planning as much as 300 billion yen ($3.19 billion) in renewable energy investments in Japan, is eyeing offshore wind power after building up holdings in more established clean energy sources such as solar.
jlne.ws/19waRYG

Asia-Pacific

China Debt Sale Fails for First Time in 23 Months on Cash Crunch
Bloomberg News
China’s Finance Ministry failed to sell all of the debt offered at an auction for the first time in 23 months owing to a cash squeeze that threatens to exacerbate a slowdown in the world’s second-largest economy.
jlne.ws/ZOnYPz

Thai Bourse Hires Main Contractor For Its New Headquarters
jlne.ws/ZOo1Ld

Frontier Markets

Dubai bourse may launch Sensex futures by early July
Business Standard
The Dubai Gold & Commodities Exchange (DGCX), part-owned by Financial Technologies (FT) and the Multi Commodity Exchange (MCX), is set to launch futures contracts of the BSE’s benchmark Sensex.
jlne.ws/ZOo1Lk

SEBI Seeks Information on Infosys Board Meeting
DHANYA ANN THOPPIL – WSJ.com
Infosys Ltd. said Friday India’s securities regulator has requested details on a crucial board meeting held on June 1, where Infosys founder N.R. Narayana Murthy was appointed as chairman.
jlne.ws/ZOo21D

MCX Weekly Market Report June 7, 2013 To June 13, 2013
jlne.ws/ZOo21I

First Read

Giancarlo Said to Be Vetted for Republican CFTC Commissioner Job
Silla Brush & Robert Schmidt – Bloomberg
J. Christopher Giancarlo, executive vice president at interdealer broker GFI Group Inc. (GFIG), is the top candidate for a Republican appointment this year to the U.S. Commodity Futures Trading Commission, according to three people briefed on the matter.
jlne.ws/140gx7y

***** This would be a huge move towards recognizing the changing nature of the CFTC’s mandate. Chris Giancarlo would be a great addition to the CFTC as a commissioner.

++++

Eurex Exchange Completes Migration To New, State-Of-The-Art Trading Architecture
Eurex Exchange has been operating since Monday, 10 June, entirely on Deutsche Börse Group’s global trading architecture. The fixed-income derivatives segment, including highly liquid Euro-Bund, Euro-Bobl and Euro-Schatz futures, was the last to migrate from the previously used system. The new platform meets the needs of Eurex Exchange participants in terms of enhanced performance, efficiency and capacity, more connection options and improved functionality, while maintaining the high stability and availability that traders are used to.
jlne.ws/140gx7B

***** This could be a competitive landscape shifter.

++++

LSE names Isda chairman as non-exec
Philip Stafford – FT.com
The London Stock Exchange has appointed two non-executive directors as it continues to refresh its board. Stephen O’Connor, the new chairman of the International Swaps and Derivatives Association, and Stuart Lewis, head of risk at Deutsche Bank, join with immediate effect.
jlne.ws/140gwAn

***** Is there a board refresh button? Or, do you have to hit “Control, Alt, Delete?”

++++

Traders Pay for an Early Peek at Key Data
BRODY MULLINS, MICHAEL ROTHFELD,TOM MCGINTY and JENNY STRASBURG – WSJ.com
On the morning of March 15, stocks stumbled on news that a key reading of consumer confidence was unexpectedly low. One group of investors already knew that. They got the University of Michigan’s consumer report two seconds before everyone else.
jlne.ws/140gwAp

***** Private data can be sold to anyone.

++++

Justin Llewellyn-Jones of Fidessa Talks ISVs, Regulation & Technology
MarketsWiki.tv

Justin Llewellyn-Jones, chief operating officer of Fidessa, thinks globally and well, acts globally too. Llewellyn-Jones spoke with JLN editor-in-chief Jim Kharouf about how Fidessa is adapting to the new global marketplace and the demand for multi-asset class platforms and networks.

Watch the video »

++++

China draws commodity trading battle lines
Suzi Ring – Financial News
Hong Kong Exchanges and Clearing’s plan to co-list commodities contracts on mainland Chinese exchanges, outlined in recent weeks, has fired the starting gun in a battle for a significant share of China’s nascent commodities futures market.
jlne.ws/140gwAt

***** Let the fireworks begin.

++++

Hedge fund lobby group CEO to step down
Reuters via Yahoo! Finance
The chief executive of hedge fund lobby the Alternative Investment Management Association, Andrew Baker, will step down at the end of 2013, AIMA said on Wednesday.
jlne.ws/140gybt

*****Just one of the hedge fund lobby groups.

++++

What are Chicago’s financial exchanges selling at Blackhawks games?
BRUCE BLYTHE – Chicago Grid
Hockey fans are used to watching their favorite teams skate and stick-handle inside a ring of corporate logos. At the United Center, brand-building on the sideboards extends beyond fast food, insurance and light beer to another arena that’s long been part of the city’s identity: trading. The city’s two major exchange companies, CME Group and the Chicago Board Options Exchange, advertise rink side along the likes of McDonald’s and Dunkin’ Donuts.
jlne.ws/140gwAv

***** Winning baby, they are selling winning. Except at Wrigley Field, there they sell baseball as it should be seen.

++++

WILD Panel on Forensic Accounting
Wednesday, June 20, 4 pm; McGladrey, One South Wacker Drive, Chicago
The derivatives industry has been challenged by wide-reaching bankruptcies and fraudulent behavior. With a panel of accounting experts, WILD explores fraud in the industry, how forensic accounting works to recover lost money and solutions that may ultimately restore customer confidence. Please join us for this unique and interactive discussion followed by an intimate networking reception. Experts will share their personal experiences in detecting fraud and provide insight into career opportunities in the forensic accounting space. This event will be chaired by Jim Kharouf, from John J. Lothian & Company and feature panelists Christen Morand of Ernst & Young as well as John Hague of McGladrey. Please watch this video to preview what topics will be covered on June 20th.

RSVP: Events@womeninlistedderivatives.org
COST: $10 – Pay Here: jlne.ws/11J63uc

++++

MarketsWiki

MarketsWiki Page of the Day
Stephen Hester
jlne.ws/qltGYH

MarketsWiki Recent Updates

People

Justin Llewellyn-Jones; Jeff Borchardt; Stephen Hester; Jay Spencer; Billy Hult; Lee Olesky; Mike Wilkins; John Yoo

Companies, Organizations and Groups

London Metal Exchange; Osaka Securities Exchange Co.; TMX Group Inc.

Statistics

40,590,131 pages viewed, 7,521 articles, 160,596 edits
MarketsWiki Statistics

Lead Stories

NYSE Euronext has ETF plan approved
Chris Flood – FT.com
US regulators have approved plans to improve the liquidity of the US exchange traded funds market. The Securities and Exchange Commission has agreed that NYSE Euronext, the exchange operator, can allow ETF managers to pay market makers in order to encourage them to offer competitive price quotes for US listed exchange traded funds and products.
jlne.ws/140gx7F

House passes bill that would exempt foreign trades
Marcy Gordon – AP
he House passed legislation Wednesday that would exempt the trading of derivatives from federal oversight if it occurs outside the United States. A bipartisan group of lawmakers supported the carve-out on a 301-124 vote.
jlne.ws/140gwAB

Nasdaq appoints Tom Wittman to head its U.S. stock market
Reuters via Yahoo! News
NEW YORK – Nasdaq OMX Group has appointed Tom Wittman to head the No. 2 U.S. stock market as part of a broader management shift aimed at better aligning its products across the equities, options and futures asset classes.
jlne.ws/140gzw0

EU Urges U.K. to Probe Currency Rigging in Libor’s Wake
Ambereen Choudhury, Gavin Finch & Liam Vaughan – Bloomberg
Britain should investigate the manipulation of currency rates, European Union officials said after Bloomberg News revealed that traders have been rigging foreign-exchange benchmarks for more than a decade.
jlne.ws/140gzw4

FORMER MERRILL LYNCH CEO JOHN THAIN: The Financial Crisis Can ‘Absolutely’ Happen Again
Business Insider
“If anything, too big to fail is a bigger problem because the biggest financial institutions are more concentrated today than they were. Dodd Frank did not solve too big to fail,” Thain told Bloomberg TV.
jlne.ws/140gxo9

ASX takeover more likely under new government: report
Business Spectator
A capital raising worth more than half a billion dollars by ASX Ltd has fuelled specualtion the market operator may be considering an international takeover or merger offers after the federal election, The Australian Financial Review reports.
jlne.ws/140gxEo

Regulators Question Banks on Business Lending Risks
SHAYNDI RAICE AND MICHAEL R. CRITTENDEN – WSJ.com
U.S. regulators are grilling banks over lending standards and warning them about mounting risks in business loans. Lending to companies has been a bright spot for banks searching for revenue amid slow economic growth and historically low interest rates. But regulators worry that banks have sweetened loan terms too much, which could put them in jeopardy if corporate borrowers can’t repay.
jlne.ws/140gxEs

Yellen overwhelming favorite to replace Bernanke at Fed: Reuters poll
Reuters via Yahoo! News
By Pedro Nicolaci da Costa WASHINGTON – Janet Yellen, the Federal Reserve’s powerful vice chair, is by far the most likely candidate to replace Ben Bernanke when his second term at the helm of the U.S. central bank ends early next year, according to a Reuters poll of economists.
jlne.ws/140gxEu

“Tapering” From Currency-Wars To Interest-Rate-Wars
Zero Hedge
“The opposite of currency wars is not necessarily currency peace; it can easily be interest rate wars,” is the warning Citi’s Steve Englander sends in a note toda, as EM and DM bond yields have relatively exploded in recent weeks. The backing up of yields represents an increase in risk premium, so this will likely have negative effects on asset markets and the wealth effect abroad as well.
jlne.ws/140gzw9

Regulatory

SEC Chair Mary Jo White’s first big test
CNN Money
Appointing Robert Rice as SEC counsel could have a chilling effect on the regulator’s whistleblower program.
jlne.ws/140gxEw

ASIC refines rules on access to EDR schemes for small business borrowers
jlne.ws/140gxEz

ASIC welcomes audit firm plans to improve quality
jlne.ws/140gxEA

[Japan] “Working Group on the Provision of Insurance Products and Services, etc.” of the Financial System Council
jlne.ws/140gxEG

Taking the Time To Get It Right: The Cross-Border Regulatory Framework – Keynote Address By Commissioner Scott D. O’Malia Before OpRisk Europe Conference, London, England
jlne.ws/140gzwc

Exchanges & Trading Facilities

CBOE pays $6m to SEC for policing failure
Arash Massoudi and Kara Scannell in New York and Neil Munshi in Chicago – FT.com
The CBOE has agreed to pay US regulators $6m to settle charges that its inadequate market policing resulted in numerous failings including an instance where it actively interfered with a regulatory investigation.
jlne.ws/140gzwh

CME to Launch European Futures – Analyst Blog
Zacks
Chicago-based exchange company CME Group Inc. ( CME ) announced an agreement to introduce European futures market. To realize this maneuver, the company has commenced a program to test the platform’s trading systems with prospective clients.
jlne.ws/140gzwj

BM&FBOVESPA Has Record Number Of Trades In The BM&F Segment
BM&FBOVESPA had an all-time record of 209,974 trades in the BM&F segment yesterday. The previous record was 199,867 trades, on May 22, 2013.
jlne.ws/140gxV6

NASDAQ OMX Smart Order Routing Enables Single Point Of Entry For All Nordic Equities
NASDAQ OMX Nordic, part of the NASDAQ OMX Group, Inc. announced today that it has introduced the latest addition to its smart order routing offering, making NASDAQ OMX Nordic the only trading platform to offer trading in all shares in all five Nordic countries.
jlne.ws/140gxV7

[CBOE] Restrictions on Transactions in Excel Maritime Carriers Ltd. (EXM)
jlne.ws/140gzMC

NYSE Euronext welcomes BioAmber to its European and U.S. markets
jlne.ws/10bBMpz

Gigamon Celebrates Initial Public Offering and First Day of Trading on the New York Stock Exchange
jlne.ws/140gzMG

Exercise Of Ibovespa Options Generates BRL 7.66 Billion Financial Volume On BM&FBOVESPA
jlne.ws/140gzMK

TSX And TSXV Trading List Leaders By Volume And By Value – May 2013
jlne.ws/140gzML

Hellenic Exchanges S.A. – 1st Repetitive General Meeting Of HELEX
jlne.ws/140gybs

Hedge Funds & Managed Futures

Brevan Howard Currency Trader Luke Ding Said to Leave Hedge Fund
Bloomberg
Luke Ding, who managed a currency hedge fund at Brevan Howard Asset Management LLP, is leaving the firm, according to a person with knowledge of the matter.
jlne.ws/140gybv

Rival hedge funds hope to feast on SAC Capital redemptions
Reuters via Yahoo! News
By Svea Herbst-Bayliss and Katya Wachtel BOSTON/NEW YORK – A long list of rival hedge funds is eager to tap the billions in outside money that Steven A. Cohen’s SAC Capital Advisors is expected to return to investors by year-end.
jlne.ws/140gzMO

Currency partner among Brevan Howard trader exits
Harriet Agnew and Katie Martin
The lead manager of Brevan Howard Asset Management’s $500m-plus currency fund is one of a number of traders who is leaving Europe’s largest hedge fund manager because of disappointing fund performance, a person with direct knowledge of the situation said today.
jlne.ws/140gzMP

From U.S. Prosecutor’s Office to Hedge Fund P.R.
New York Times
Ellen Davis, a spokeswoman for the United States attorney’s office in Manhattan, is leaving to join Sard Verbinnen, a public relations group that represents Steven A. Cohen’s hedge fund, reports Reuters.
jlne.ws/140gybw

Mariner Hires Ex-Citigroup’s Van Dooijeweert for Fund
Bloomberg
Mariner Investment Group LLC, the $10 billion hedge-fund firm founded by William Michaelcheck, hired former Citigroup Inc. trader Peter van Dooijeweert to run a global equity volatility strategy.
jlne.ws/140gyby

Italy’s mass affluent make an LTRO killing
David Carnevali – Financial News
The Italian asset management industry is celebrating its best start to the year in a decade, as domestic investors shrug off the country’s continuing economic woes.
jlne.ws/140gybB

Commodity Hedge Funds Said by FAO Finding Profits Harder to Make
Bloomberg
Commodity hedge funds are finding it harder to make a profit partly because fees and other charges “soured customers,” the Food & Agriculture Organization said.
jlne.ws/140gybF

Subscription begins for a Metalcorp Group B.V. bond
jlne.ws/10bBNtO

Banks & Brokers

RBS CEO Stephen Hester to Step Down After Almost Five Years
Gavin Finch & Howard Mustoe – Bloomberg
Royal Bank of Scotland Group Plc, Britain’s biggest government-owned bank, unexpectedly said Chief Executive Officer Stephen Hester will step down at the end of 2013 as the U.K. prepares for a possible share sale.
jlne.ws/140gyrY

RBS Chairman: New CEO Is Right Thing for Bank
CNBC
Chairman of Royal Bank of Scotland, Sir Philip Hampton said CEO Stephen Hester’s departure was not a result of a falling out with finance minister George Osborne, but time for him to move on as he had not so many “years ahead of him”.
jlne.ws/140gys1

Hester’s Departure From RBS ‘Plain Stupid’
CNBC
Stephen Hester’s departure as the CEO of U.K.-taxpayer owned Royal Bank of Scotland has surprised London’s financial sector.
jlne.ws/140gys5

Hester’s departure gives clues to future shape of UK banking
Philip Augar – FT.com
The departure of RBS chief Stephen Hester is not the beginning of the end of Britain’s banking reconstruction – but it is the end of the beginning. The news begins a seven-day period that will see the UK’s Parliamentary banking standards commission publish its report (expected any day) and the initial response to it by George Osborne, chancellor of the exchequer, at the City’s showpiece Mansion House dinner next Wednesday.
jlne.ws/140gA3c

DealBook: Executive Covets Goldman Seat Where a Friend Snugly Sits
New York Times
Gary D. Cohn has long been considered the man who will be the next C.E.O. of Goldman Sachs; the problem is the current chief isn’t ready to leave.
jlne.ws/140gA3e

JPMorgan Hires Goldman’s Sharma for Insurance Bond Post
Bloomberg
JPMorgan Chase & Co.’s asset- management unit hired Prashant Sharma as head of international fixed-income investments for insurance clients.
jlne.ws/140gA3h

Morgan Stanley’s Gorman Seeks Higher Fixed-Income Trade Returns
Bloomberg
Morgan Stanley has a plan to boost return on equity in fixed-income trading above its cost of equity after four of the five units failed to meet that metric last year, Chief Executive Officer James Gorman said.
jlne.ws/140gysa

Lenders pull banking facilities from small financial groups
Brooke Masters, Chief Regulation Correspondent – FT.com
Dozens of small financial groups, including providers of pre-paid cards and online payment services, are losing their banking facilities as high street lenders attempt to reduce the risk of money-laundering.
jlne.ws/140gA3i

Concept Capital Markets, LLC hires Jay Davis, opens office in San Francisco
Concept Capital Markets, LLC is pleased to announce that it has hired John M. “Jay” Davis III as Senior Vice President, Client Service in our Prime Brokerage Services group. Mr. Davis brings to Concept twenty years of brokerage experience, a deep knowledge of brokerage operations and risk control, and a solid reputation for providing exceptional client service to hedge fund managers as a prime brokerage account manager.
jlne.ws/140gA3j

Goldman Sachs HQ Is Worth $176 Million Less Now Than It Was Last Year
Business Insider
In the eyes of city assessors, the so-called market value of Goldman Sachs’ headquarters in Battery Park City has dropped by $176 million, or 26.7 percent, to $511.7 million — the sharpest reduction of any Manhattan office building this year.
jlne.ws/140gysf

Clearing & Settlement

Traiana expands Harmony ClientLink into cash equities and fixed income
Traiana, the leading provider of post-trade and risk solutions, today announces that it has expanded Harmony ClientLink’s cross-asset capability to the equities and fixed income markets with a number of leading brokers. As a result, Harmony ClientLink now offers the most comprehensive cross-asset straight through processing (STP) and allocation platform for banks, brokers and buy-side firms.
jlne.ws/140gyIu

OCC Tells Banks to Start Planning Safe Phase-out of Swaps Trades
Bloomberg
U.S. regulators released letters telling JPMorgan Chase & Co., Bank of America Corp. and other banks to safely shed derivatives, granting them two more years to wall off such trades from units that get federal backing.
jlne.ws/140gAjz

Indexes & Products

FTSE RAFI Index Series Exceeds $5bn In ETF-Linked AUM
jlne.ws/140gyIC

Technology

SunGard Showcases Key Trends Driving Smarter Operations, Agile Growth and Optimized Risk and Compliance for Financial Services
Agile Growth – Firms are seeking strategies that will boost business agility and lay the foundation for future revenue growth. This is driving three trends: 1- improving productivity and multi-channel capability to deliver better client service; 2- adoption of technologies and processes that help firms to be more nimble and innovative; and 3- a need to find new revenue sources in new geographies and products.
jlne.ws/140gAjG

eFront Strengthens its Management Team on the Heels of a High-Growth 2012
eFront, a leading software provider of financial solutions for managing alternative investments, is pleased to announce the addition of two new executives to its management team as well as an independent, non-executive director.
jlne.ws/140gAjJ

Enforcement

Fund manager linked to Petters is guilty of fraud, could get 25 years
Pioneer Press
James Fry, the last criminal defendant with ties to Tom Petters’ $3.5 billion Ponzi scheme, was found guilty Wednesday on 12 counts of fraud.
jlne.ws/140gyIF

SEC Announces More Charges in Massive Kickback Scheme to Secure Business of Venezuelan Bank
The Securities and Exchange Commission today charged the former head of the Miami office at brokerage firm Direct Access Partners (DAP) for his role in a massive kickback scheme to secure the bond trading business of a state-owned Venezuelan bank.
jlne.ws/13Cveyw

CFTC Files Enforcement Action against Arizona Resident for Issuing False Account Statements and Operating as an Unregistered Commodity Pool Operator
The U.S. Commodity Futures Trading Commission (CFTC) today announced the filing of a civil complaint against Thomas L. Hampton, an Arizona resident. The CFTC’s complaint charges Hampton with acting as an unregistered commodity pool operator (CPO) and issuing false account statements in violation of the Commodity Exchange Act.
jlne.ws/140gyIJ

Otkritie fraud trial opens in London
Richard Partington – Financial News
The trial of three former Otkritie Capital traders accused of defrauding the Russian investment bank of $183m, has opened in London.
jlne.ws/140gyIL

FINRA, SEC Warn Investors: Don’t Trade on Pump-And-Dump Stock Emails—6/12/13
jlne.ws/140gAjO

New Zealand’s Financial Markets Authority: Charges Laid Today Against David Ross
jlne.ws/140gAjP

Environmental & Energy

EU Parties’ Negotiators in Draft CO2 Deal, Seeber Says
Bloomberg
Climate negotiators from political groups in the European Parliament’s environment committee reached a tentative compromise on a fix for the world’s biggest carbon market, according to a European Union lawmaker.
jlne.ws/13CTFvP

**RKB — From the article: Today, we found a compromise mainly between EPP, Socialists and Democrats, and Alliance of Liberals and Democrats for Europe, which is heavily improving the original proposal of the European Commission. Support from the three parties would ensure a majority in favor of the compromise agreement.”

Europe must cut emissions 55 per cent by 2030 to tackle carbon credit glut
Business Green
The European Commission should aim to cut greenhouse gas emissions 55 per cent against 1990 levels by 2030 if it is to tackle the glut of allowances that has undermined the price of carbon in its flagship emissions trading scheme (ETS).
jlne.ws/13FRwOB

China gets tough on carbon
Nature
China, responsible for about one-quarter of the world’s carbon dioxide emissions, has ambitious goals to reduce them — but has been unwilling to set absolute targets for fear of slowing economic growth. There are now signs that its position is changing.
jlne.ws/11JbNnU

**RKB — Interesting when you consider that a scientific journal offers this sum of market plans. An optimistic top to this article but more cautionary analysis about China’s efforts toward the bottom.

Asia-Pacific

Hong Kong, HKEx Chief Executive Charles Li Live And Direct: Latest Charles Li Direct
With only two weeks to go until the launch of LME Week Asia in Hong Kong, HKEx chief executive Charles Li discusses what has been driving trading volumes on the metal exchange in the latest post on Charles Li Direct.
jlne.ws/140gyZ3

Building A Multi-Tiered Capital Market Serving The Upgraded Chinese Economy – Speech By Song Liping, President And CEO Of Shenzhen Stock Exchange
jlne.ws/140gyZ4

Thai Bourse Market Report For May 2013
jlne.ws/140gAAa

Frontier Markets

Emerging Markets From Brazil to India Act to Stem Capital Flight
Bloomberg
Emerging markets from Brazil to India took steps to stem an outflow of capital as concern mounts that developed nations are approaching the beginning of the end of an era pumping unprecedented liquidity.
jlne.ws/140gAAg

MSCI ruling setback to Tel Aviv exchange
John Reed in Jerusalem – FT.com
MSCI will not include Israel in its Europe index, dealing a setback to the Tel Aviv Stock Exchange, which had lobbied to be included to help it remain in portfolio investors’ sights as it battles to overcome falling liquidity.
jlne.ws/140gAAj

Qatar Exchange Welcomes MSCI Decision to Upgrade Qatar
Qatar Exchange welcomed the decision of the MSCI to upgrade the Qatari market from a Frontier Market to Emerging Market, describing this decision as a positive step towards the development of Qatar Exchange and milestone that will attract further foreign investments to the Qatari stock market.
jlne.ws/140gAAn

Mitsubishi Corp Becomes DME Member
jlne.ws/140gyZh

Tehran Stock Exchange Holds AGM
jlne.ws/140gAQC

Tehran Stock Exchange Members On-Line Trading Activities
jlne.ws/140gAQF

First Read

NADEX is the one true Binary
By John J. Lothian
In last week’s story about the binary trading operation charged by the CFTC with violating the CFTC’s off-exchange options trading ban and operating as an unregistered Futures Commission Merchant, MarketsWiki sponsor NADEX received a nice temporary shout out from the CFTC and SEC

I say temporary, because the language on the Consumer Alert was changed after it was issued.

The release originally said: “To date, only one entity that offers binary options has been granted status as a designated contract market— the North American Derivatives Exchange, Inc. All other entities that are offering binary options that are commodity options transactions are doing so illegally.”

You can see the original SEC Investor Alert here: jlne.ws/19mjRj8

Now it says: “Very few firms are designated contract markets for binary options. To see the most recent list of those that are, check the National Futures Association’s Background Affiliation Status Information Center (BASIC). All other entities offering binary options that are commodity options transactions are doing so illegally.”

There are other exchanges that have or do offer binary options, but while others are still stuck on 0, NADEX is the 1.

++++

Justin Llewellyn-Jones of Fidessa Talks ISVs, Regulation & Technology
MarketsWiki.tv

Justin Llewellyn-Jones, chief operating officer of Fidessa, thinks globally and well, acts globally too. Llewellyn-Jones spoke with JLN editor-in-chief Jim Kharouf about how Fidessa is adapting to the new global marketplace and the demand for multi-asset class platforms and networks.

Watch the video »

++++

Amanda Renteria To Be Nominated CFTC Chief
Huffington Post
President Barack Obama is poised to nominate Amanda Renteria, a former Senate staffer, to replace Gary Gensler atop the main U.S. derivatives regulator amid an intensifying fight between Gensler and the world’s major banks and regulators over cross-border transactions. If Renteria is confirmed to lead the Commodity Futures Trading Commission, the former chief of staff to Senate Agriculture Committee Chairwoman Debbie Stabenow (D-Mich.) would become the first minority and Latina to lead a member agency of the Financial Stability Oversight Council during the Obama era.
jlne.ws/10bBLSz

++++

SEC Puts Exchanges in Sights Charging Regulatory Lapses at CBOE
Bloomberg
Exchange executives, long shielded from legal scrutiny in the U.S., have been put on notice that may be changing after federal regulators fined CBOE Holdings Inc. $6 million for unprecedented lapses in supervision.
jlne.ws/10bBMGg

++++

Financial exchanges such as CBOE need to stop self-regulation
Joe Cahill Business Blog – Crain’s Chicago Business
How well would Kraft Foods police Wal-Mart’s compliance with retail trade rules? Would Boeing do a good job enforcing airline safety regulations? We’ll never know, because companies generally don’t play beat cop to their biggest customers. Except, of course, in financial markets, where exchange operators like CBOE Holdings Inc. and CME Group Inc. are supposed to make sure customers play by the rules.
jlne.ws/10bBLSB

++++

Waiting for Uniform Derivatives Rules Is a Losing Proposition
Mayra Rodríguez Valladares – American Banker
Anybody who thinks the Commodity Futures Trading Commission has been dragging its feet in the Dodd-Frank rule writing process should look at how much commissioners’ and staff members’ time is taken up meeting with visitors.
jlne.ws/10bBMGn

++++

CME wins bigger Brent market share
Gregory Meyer in New York – FT.com
CME Group is using free trading and rebates to encroach on rival turf in the oil patch, winning 5 per cent of Brent crude futures volumes for the first time. The market share advance by the biggest US futures exchange comes at the expense of IntercontinentalExchange, where Brent generated $213.5m in revenue last year.
jlne.ws/10bBLSE

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The role of interdealer brokers
Alex McDonald – FOW
The role of the over-the-counter (OTC) marketplace in the generation of wholesale financial market products used widely in both developed and emerging economies is undisputed. Most, if not all, traded financial products have their genesis in OTC markets and then migrate to exchanges if they can become standardised and liquid enough to trade. In particular, OTC markets are essential to the real economy, as governments, corporates and pension funds all use OTC products to hedge their risks and to obtain the financial products necessary to achieve their investment and financial targets.
jlne.ws/10bBLSI

++++

Server Farm Realty Unveils Its State-of-the-Art Chicago Data Center Facility
WSJ.com
840 South Canal is a 450,000 square foot facility that housed the former General Electric Co. (GE) factory and served as Northern Trust’s data center and operations hub. Server Farm Realty has invested over $220M to redevelop and transform the building into a Tier III data center. The enhanced facility now features a concurrently maintainable design with 100% availability and delivers approximately 20 MW of power to over 138,000 SF of raised floor data center suites.
jlne.ws/109kbi4

**DA: Milking cash cows at a server farm just upriver from the old Union Stockyards.

++++

Social Media Sentiment Proven To Generate Alpha – Data And Analytics Firm, Knowsis, First To Demonstrate Statistical Significance Of Sentiment Data On Trading Strategies
Knowsis is the first service provider that can prove analytics, based on listening into social media, actually works. Rigorous testing by the data and analytics firm has established that a trading strategy utilising social media sentiment data significantly outperforms one that does not. The results have been corroborated by a number of leading quantitative funds. It is the first time proof of this kind has been provided in a real trading environment.
jlne.ws/10bBLSN

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MarketsWiki

MarketsWiki Page of the Day
Ian Cumberpatch
jlne.ws/11dHlz2

MarketsWiki Recent Updates

People

George Handjinicolaou; Robert G. Pickel; John Yoo; Donald L. Horwitz; Dan M. Berkovitz; Amanda Renteria

Companies, Organizations and Groups

Horizon Cash Management LLC; EnterNext; Minneapolis Grain Exchange, Inc.

Miscellaneous

Upcoming Events; Spread; Hedging; Trade execution; Front-end applications

Statistics

40,549,048 pages viewed, 7,521 articles, 160,520 edits
MarketsWiki Statistics

Lead Stories

Traders Said to Rig Currency Rates to Profit Off Clients
Liam Vaughan, Gavin Finch & Ambereen Choudhury – Bloomberg
Traders at some of the world’s biggest banks manipulated benchmark foreign-exchange rates used to set the value of trillions of dollars of investments, according to five dealers with knowledge of the practice. Employees have been front-running client orders and rigging WM/Reuters rates by pushing through trades before and during the 60-second windows when the benchmarks are set, said the current and former traders, who requested anonymity because the practice is controversial.
jlne.ws/10bBM94

Singapore seeks to roll out market circuit breakers
Jeremy Grant in Singapore – FT.com
Singapore Exchange has become the latest bourse to embrace systems aimed at stopping wild price swings often associated with electronic trading, saying it plans to implement “circuit breakers” by the end of the year.
jlne.ws/10bBMWI

EOX Exchange files with CFTC for contract market designation
OTC Global Holdings LP, the leading independent interdealer broker in commodities markets, formally announced today that its subsidiary, EOX Exchange LLC, filed its application with the U.S. Commodity Futures Trading Commission for designation as a contract market. A wide range of derivative products will be offered on the EOX Exchange, including futures and options in natural gas, crude oil and refined products, natural gas liquids, power and agricultural products.
jlne.ws/10bBMWK

CME set for September launch of European derivatives
Philip Stafford – FT.com
CME Group has set a tentative date of September for the launch of its European derivatives exchange as the US group looks to harness growing investor demand to hedge risk.
jlne.ws/10bBMWL

ASX to introduce VIX futures contract
By James Fernyhough – Financial Standard
The Australian Securities Exchange is planning to launch a VIX futures contract, with a launch date earmarked for later this year – possibly as early as July.
jlne.ws/13BNSoH

Bill to Limit CFTC Cross-Border Authority Faces U.S. House Vote
Bloomberg
House lawmakers vote today on legislation that would curb the U.S. Commodity Futures Trading Commission’s authority to oversee the $633 trillion global swaps market.
jlne.ws/10bBM9a

Insurers Inflating Books, New York Regulator Says
MARY WILLIAMS WALSH – NYTimes.com
New York State regulators are calling for a nationwide moratorium on transactions that life insurers are using to alter their books by billions of dollars, saying that the deals put policyholders at risk and could lead to another taxpayer bailout.
jlne.ws/10bBMWN

Bovespa to test Core trade clearing system
Vivianne Rodrigues in New York – FT.com
BM&FBovespa will next month begin testing of one of the world’s most advanced systems for clearing trades in a move the Brazilian exchange hopes will help fight off interest from overseas rivals.
jlne.ws/10bBMWQ

Hedge funds battered in quant arms race
Sam Jones, Hedge Fund Correspondent – FT.com
At the end of this month, a team of Cantabrigian hedge fund quants will attempt to wipe out rivals from Switzerland – in a computer game. Cantab Capital (assets under management: $6bn) will fight Zug’s Amplitude Capital in Battlefield 3. The gaming shoot out, part of an online league, is the smaller scale and lesser known version of two wars being fought between the biggest names in the quant hedge fund world. The other is more high stakes.
jlne.ws/10bBMWT

Bundesbank in court clash with ECB over bond-buying plan
Michael Steen in Karlsruhe – FT.com
Germany’s monetary policy heavyweights clashed on Tuesday in a courtroom battle over the European Central Bank’s controversial pledge last year to save the euro.
jlne.ws/10bBNd9

Regulatory

US regulator gives big banks two years to push out swaps trading
Reuters
U.S. officials will give JPMorgan Chase, Citigroup, Bank of America and several other big firms two years to comply with a controversial Dodd-Frank requirement that they push some swaps trading out of the bank.
jlne.ws/10bBNda

FINRA Issues New Investor Alert: Alternative Funds Are Not Your Typical Mutual Funds
jlne.ws/10bBM9h

ISDA And Futures And Options Association Publish Client Cleared OTC Derivatives Addendum
jlne.ws/10bBM9i

ASIC calls for expressions of interest to sell World Oil Resources Ltd shares
jlne.ws/10bBNdj

Japan’s Financial Services Agency: Publication Of English Version Of Task Force Reports
jlne.ws/10bBM9j

Exchanges & Trading Facilities

London Stock Exchange Group Plc – Changes To Board Of Directors Of London Stock Exchange Group Plc
London Stock Exchange Group plc (LSEG) today announces that Stephen O’Connor and Stuart Lewis will join the LSEG Board as Non-Executive Directors with immediate effect. Janet Cohen, Sergio Ermotti and Gay Huey Evans will step down from the Board following the Group’s Annual General Meeting on 18 July, at which confirmations of the new appointments will be sought.
jlne.ws/10bBNdn

Indonesia Consults CME Group on Expanding Commodity Market Trade
Bloomberg
Indonesia, the world’s largest producer of tin and palm oil and the third-biggest coffee grower, is seeking the help of futures-exchange owner CME Group Inc. to expand domestic trading of commodities, according to Deputy Trade Minister Bayu Krisnamurthi.
jlne.ws/10bBNdo

ASX pitch in its best interests
Malcolm Maiden – SMH Business Day
The two clearing house subsidiaries that will receive 81 per cent of the $553 million that ASX is raising from its shareholders don’t make enough money in their own right to justify the investment. ASX chief executive Elmer Funke Kupper was right, however, when he said on Tuesday that there was really no choice. ASX needs the capital injection to stay in the global game, and keep its hopes of a mega-merger with a big foreign exchange alive.
jlne.ws/18wzmpc

SEC Charges CBOE for Regulatory Failures
Press Release
The Securities and Exchange Commission today charged the Chicago Board Options Exchange (CBOE) and an affiliate for various systemic breakdowns in their regulatory and compliance functions as a self-regulatory organization, including a failure to enforce or even fully comprehend rules to prevent abusive short selling.
jlne.ws/11dK2Rg

CBOE Statement On SEC Administrative Proceedings, June 11, 2013
jlne.ws/10bBNtC

NYSE Euronext welcomes BioAmber to its European and U.S. markets
jlne.ws/10bBMpz

NYSE to Suspend Trading Immediately in Excel Maritime Carriers Ltd. and Commence Delisting Proceedings
jlne.ws/10bBMpD

NYSE Group Inc. Issues Short Interest Report
jlne.ws/10bBNtF

NYSE MKT Issues Short Interest Report
jlne.ws/10bBMpH

NASDAQ Announces End-Of-Month Open Short Interest Positions In NASDAQ Stocks As Of Settlement Date May 31, 2013
jlne.ws/10bBNtH

Hellenic Exchanges S.A. – Notification About A Significant Change In The Number Of Voting Rights (Law 3556/2007)
jlne.ws/10bBNtI

Hedge Funds & Managed Futures

Paulson Gold Fund Fell 13% to Make Year’s Loss 54%
Bloomberg
Billionaire John Paulson, the hedge-fund manager trying to recover from losses related to bullion this year, posted a 13 percent decline in his Gold Fund last month, according to a letter to investors.
jlne.ws/10bBMpN

Carlyle Said to Seek $4 Billion for Seventh Property Fund
Bloomberg
Carlyle Group LP , the world’s second-biggest manager of alternative assets, is seeking to raise $4 billion for its seventh real estate fund, said a person with knowledge of the plans.
jlne.ws/10bBNtK

Felix Zulauf and 30-Year-Old Son Start Global Macro Hedge Fund
Bloomberg
Felix Zulauf, a former global strategist at UBS AG who opened his own hedge-fund firm in 1990, is starting a fund in Switzerland with his 30-year-old son that will bet on global macro-economic trends.
jlne.ws/10bBNtL

Nomura REIT, Biggest IPO This Year, Falls in Debut: Tokyo Mover
Bloomberg
Nomura Real Estate Master Fund Inc., Japan’s largest initial public offering this year, slid in its debut as the investment trust run by a unit of the nation’s biggest brokerage tracked a drop in the market.
jlne.ws/10bBMpQ

Subscription begins for a Metalcorp Group B.V. bond
jlne.ws/10bBNtO

Banks & Brokers

Goldman Sachs’s Trial Win in Dragon Systems Deal Upheld
Bloomberg
Goldman Sachs Group Inc.’s missteps advising speech-recognition pioneer Dragon Systems Inc. in a merger weren’t egregious enough under the law to warrant damages, a federal judge ruled.
jlne.ws/10bBPlj

JPMorgan’s Dimon Says There Was No Lying, Hiding on Whale
Dawn Kopecki – Businessweek
JPMorgan Chase & Co (JPM). will fight “till the end” anyone who sues claiming they were misled over more than $6.2 billion in losses at the chief investment office last year, Chief Executive Officer Jamie Dimon said.
jlne.ws/10bBPln

Regulation threatens Europe’s banking system: Deutsche Bank CEO
Reuters via Yahoo! News
By Edward Taylor FRANKFURT – An overload of global regulation threatens to stifle Europe’s banking system and constrain economic growth, Deutsche Bank AG Co-Chief Executive Anshu Jain warned on Tuesday.
jlne.ws/10bBPlo

Is This The Lowest-Paid Bank CEO In America?
Forbes
According to a report released last week by research firm SNL Financial, one CEO is earning an annual salary approximately the same as the average amusement park attendant.
jlne.ws/10bBPlp

CastleOak Securities, L.P. Signs Sponsor Agreement with BIDS Trading
CastleOak Securities, L.P., a leading New York-based boutique investment bank firm, and BIDS Trading, L.P., the Alternative Trading System designed to increase competition and liquidity in the U.S. equity block trading market, are pleased to announce the signing of a sponsorship agreement.
jlne.ws/10bBPls

Citigroup Facing $7 Billion Currency Hit on Dollar, Peabody Says
Bloomberg
Citigroup Inc. could lose as much as $7 billion on currency swings if Charles Peabody is right, putting the analyst at odds with peers who say the stock will be the best performer among big U.S. banks in the year ahead.
jlne.ws/192k9Jr

Canaccord Hires Ex-UBS Banker Hedley for U.S. Technology Group
Bloomberg
Hedley was previously at UBS AG , where he was a managing director and head of the hardware and electronics supply-chain team, the Toronto-based firm said today in a statement.
jlne.ws/10bBPlx

Glencore boosts board with former Morgan Stanley boss
Reuters via Yahoo! News
LONDON – Glencore Xstrata has appointed former Morgan Stanley boss John Mack as an independent director, bringing in a Wall Street heavyweight as it rebuilds the board of the recently merged company.
jlne.ws/10bBNKb

Clearing & Settlement

Major clearing brokers confirm support for new derivatives reporting standard
The International Swaps and Derivatives Association (ISDA), and Sapient Global Markets have announced that four OTC derivatives clearing brokers: BofA Merrill Lynch, Barclays, J.P. Morgan and UBS, have confirmed their support for the Clearing Connectivity Standard (CCS) initiative to standardize reporting for cleared OTC derivatives.
jlne.ws/10bBPBN

SGX strengthens post-trade services with new lead
Singapore Exchange (SGX) is pleased to appoint Nico Torchetti as the new Head of Post Trade Services effective 1 August 2013. Mr Torchetti will be responsible for spearheading the strategy and managing the execution of SGX’s Post Trade services.
jlne.ws/10bBNKe

Cofunds Routing Orders Through Euroclear’s EMX
Cofunds is linking to Euroclear’s EMX Message System for further electronic fund transaction order routing, enabling Cofunds to reach 95% straight-through processing with the fund managers it interacts.
jlne.ws/10bBNKg

Indexes & Products

ISE ETF Ventures Joined PureFunds in Ringing NYSE Bell
jlne.ws/10bBPBR

Technology

EEX Expands Access to its Markets via FFastFill’s network
The European Energy Exchange and FFastFill have signed an agreement enabling market participants to access the EEX product suite through the software provider’s multi-broker network “Horizon” and its Software as a Service trading platform “Trading Pro”.
jlne.ws/10bBPBS

DataFluidics Releases Reflex, Changes the Landscape of Ultra-Low Latency Data Processing
DataFluidics, the innovative provider of ultra-low latency technology today announced the general availability of Reflex, a revolutionary data processing platform for financial institutions.
jlne.ws/10bBPBU

TIBCO Software Acquires StreamBase Systems – Latest TIBCO Acquisition Strengthens Capabilities In Event Processing And Real-Time Analytics
jlne.ws/10bBPBW

Enforcement

Hong Kong’s Securities And Futures Commission Reprimands And Fines Credit Suisse Securities (Hong Kong) Limited $1.6 Million For Regulatory Breaches
jlne.ws/10bBPBZ

Environmental & Energy

EU Carbon Glut Means More Cuts Needed for 2030 Goal, Ecofys Says
Bloomberg
A record surplus of carbon permits in the European Union’s emissions trading system will make it harder for the bloc to meet its 2030 climate goals, according to a report by Ecofys, the environmental research company.
jlne.ws/ZIr3Ra

**RKB — Any successful plan would need to address pre-2020 surplus, Ecofys says.

U.S.-China climate deal called “breakthrough” but no long-term cuts yet
Reuters
China and the United States took a major step in the fight against climate change over the weekend, but what was termed a “breakthrough” might not do much in the longer term to lock in legally binding carbon emission cuts from the world’s two biggest emitters of greenhouse gases.
jlne.ws/11ypPFy

**RKB — One observer says the constraints of U.N. climate talks have created the need for diplomatic moves outside of that process, such as the U.S.-China HFC agreement. “This is the beginning of a movement to enlist more climate mitigation from parallel venues,” he said.

Action by China and US boosts chances of global climate deal
Financial Times
China and the US made such strides tackling their carbon dioxide emissions last year that they have boosted the chances of sealing a long-sought global climate deal, the world’s energy watchdog said on Monday.
jlne.ws/1196tdI

Asia-Pacific

This Tiny Nation Could Be a Gold Trading Hub
CNBC
The tiny Southeast Asian city-state Singapore has transformed itself into one of the world’s top financial hubs and has now set its sights on turning the wealthy island into a gold bullion center.
jlne.ws/10bBO0E

Frontier Markets

Greece First Developed Market Cut to Emerging as UAE Upgraded
Bloomberg
Greece became the first developed nation to be cut to emerging-market status by MSCI Inc. after the local stock index plunged 83 percent since 2007.
jlne.ws/10bBPC3

JSE Launches Online Virtual Trading Game
In a bid to inspire ordinary South Africans to trade on the exchange, the Johannesburg Stock Exchange (JSE) has launched the first JSE Virtual Trading Game – an online trading competition which simulates a real trading environment and allows participants a risk-free opportunity to trade shares.
jlne.ws/10bBPSg

Miscellaneous

New Worst Place in Manhattan Coming Soon
Hamilton Nolan – Gawker
At long last, the provincial burg of Manhattan will soon be home to an “elite ‘clubhouse’” restaurant specifically for hedge fund guys. It will be called “the entire borough of Manhattan.” Haha, a joke. No, it will be called hell.
jlne.ws/10bBPSh

First Read

CME primed for new derivatives rules
Neil Munshi, Philip Stafford and Michael Mackenzie – FT.com
CME Group, the world’s largest futures exchange operator, is leading a group of US exchanges hoping to take full advantage of the next phase of new US rules tightening up derivatives trading, which came into force on Monday.
jlne.ws/19230PW

***** Primed and ready.

++++

CBOE will keep policing its own markets, new chief says
John McCrank – Reuters
CBOE Holdings Inc, whose regulatory programs have been subject to a federal probe, is not giving up the job of policing its own markets, nor is it leaning toward splitting off its regulatory unit, the options exchange’s new CEO said Friday.
jlne.ws/14m1N4V

***** Self regulation is a feature of the open outcry markets Mr. Tilly came from.

++++

Chasing Alpha With Your Hands Tied Behind Your Back
Ed Lopez – TABB Forum
Equilibrium of front-office efficiency and control is important to avoid risks and losses. But the raison d’être of portfolio managers and traders alike is ultimately to grow assets and make money for the firm. How can front-office staff be effectively supported in this quest while keeping regulators satisfied and being compliant?
jlne.ws/1922Yra

***** I just don’t like this headline.

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CME Group Announces Daily Trading Volume Record in NYMEX Brent (BZ) Crude Oil Futures
CME Group, the world’s leading and most diverse derivatives marketplace, announced it reached a trading volume record for its NYMEX Brent (BZ) crude oil futures contract on Friday, June 7, 2013. Trading volume for NYMEX Brent reached 52,352, compared to April 12, 2013, the last record day, when volume reached 44,357 contracts.
jlne.ws/1922Yrc

***** Brent and Broken.

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[Video] High Frequency Trading Falls on Hard Times
Bloomberg
Bloomberg Businessweek’s Matthew Philips and Steve Ehrlich, former CEO at Lightspeed Financial, discuss the current state of high frequency trading and how traders became the victims of their own success. They speak on Bloomberg Television’s “Bloomberg Surveillance.”
jlne.ws/1922Yrg

*****You have to play this in slow motion to understand it.

++++

NFA’s Board welcomes 4 swap participant members
Last August, the Board unanimously voted to ratify a proposal to amend NFA‘s Articles of Incorporation to increase the size and modify the structure of the Board to integrate swap dealer and major swap participant Members into NFA’s governance structure. The amended Articles increase the Board’s size by adding seven swap participants to the Board.
jlne.ws/9A3hzd

*****But what if the swaps participants are trading futures? Swap futures?

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Turnkey Trading Partners Named Best North American Regulatory Advisory Firm
Newsday
Turnkey Trading Partners is proud to announce that it’s been voted “Best North American Regulatory Advisory Firm,” by Hedgeweek magazine. Hedgeweek’s fourth-annual Global and USA Awards recognize excellence among hedge fund managers and service providers around the world.
jlne.ws/13RVQKU

***DA: For more on Turnkey, check out last year’s MarketsWiki.tv interview with founder James Bibbings

++++

What’s behind the remarkable growth of DGCX?
Galen Stops – FOW
2012 was a year that most derivatives exchanges would rather forget. But for the Dubai Gold and Commodities Exchange it was the best year ever as volumes grew 138%. The Dubai Gold and Commodities Exchange was founded in 2005 and had been growing steadily, if not spectacularly, until the beginning of 2011. That year it more than doubled the 2010 volumes, but with 4m contracts traded for the year, it was still a small exchange.
jlne.ws/1922Yrj

***** Has it hit the tipping point?

++++

Major Clearing Brokers Announce Support for the ISDA Clearing Connectivity Standard in Accordance with June 10(th) Clearing Deadline
The International Swaps and Derivatives Association, Inc., and Sapient Global Markets, a division of Sapient, today announced that four of the largest over-the-counter derivatives clearing brokers (known in the U.S. as Futures Commission Merchants, or FCMs) have confirmed their support for the Clearing Connectivity Standard initiative to standardize reporting for cleared OTC derivatives.
jlne.ws/19230Q0

++++

GuavaTech Inc. Announces CBOE Futures Exchange Hosting and Connectivity Access at London LD4 Co-Location Facility
GuavaTech, Inc., a leading managed service provider specializing in customized IT solutions for proprietary trading firms, investment banks, hedge funds, broker/dealers, and FCMs, today announced that it will begin offering proximity hosting and ultra-low latency connectivity solutions for CBOE Futures Exchange (CFE) at the LD4 data center located in London, UK. GuavaTech now provides CFE with market data access and co-location services at LD4. This connectivity to the CFE Enhanced (CSM) market data feed and the Unicast trading feed now offers European traders the ability to access all CFE quotes and trades, including spreads. In addition, CFE has installed fee waivers through the end of 2013 to enable low-cost entry through the LD4 co-location facility.
(via email)

++++

Artisan crafts a winning formula
Mike Foster
Things are not quite what they seem at Artisan Partners, the US equity manager which secured a stock market listing on the New York Stock Exchange in March. Rather than a single outfit, it is a federation of five independent affiliates. Groupthink is forbidden and central macroeconomic viewpoints are barred. The recipe works.
jlne.ws/1922Yrl

++++

NYSE Liffe Commodity Derivatives Cocktail Reception and Educational Event
As a kickoff to next week’s Global Grain Chicago conference, NYSE Liffe will be hosting a cocktail reception and educational event in the Metropolitan Club, 66th floor of the legendary Willis Tower. Keynote speakers include Dan Basse, President of AgResource and Michel Portier, General Director of Agritel. As an added bonus, attendees will be given VIP access to Skydeck Chicago, located on the 103rd floor. If you have any questions, or would like to register for the event, please contact Dayre Lashnits at DLashnits@nyx.com
(via email)

MarketsWiki.tv

Jock Percy of Perseus Telecom on Microwave Technology in the Trading World
MarketsWiki.tv

Jock Percy spoke with John Lothian News Editor-at-Large Doug Ashburn about the use of microwave for data transmission – what is driving the demand, the benefits and limitations of wireless, and a bit about the economics of technology upgrades. He closes with a look to the future of wireless and its global implications.

Dr. Jock Percy is CEO of Perseus Telecom, a global carrier of financial telecommunications specializing in ultra low-latency market-to-market connectivity. Before taking the helm at Perseus, Percy spent a number of years in the telecommunications sector, with firms such as Double Helix (sold to ACE*COMM in 2006), BT, Telekom Austria, Finnet, and Saudi Telecom. In 2009 he founded FXecosystem, a provider of low-latency infrastructure to the foreign exchange market.

Watch the video »

MarketsWiki

MarketsWiki Page of the Day
Jock Percy
jlne.ws/11RDTJo

MarketsWiki Recent Updates

People

Jock Percy

Companies, Organizations and Groups

Australian Securities Exchange; Multi Commodity Exchange of India; Zhengzhou Commodity Exchange; Shanghai Futures Exchange; Dalian Commodity Exchange; Moscow Exchange

Products

CME Group interest rate products; KRX KOSPI 200 Index options

Statistics

40,505,566 pages viewed, 7,518 articles, 160,452 edits
MarketsWiki Statistics

Lead Stories

ASX plans rights issue to meet new capital rules
Neil Hume in Sydney – FT.com
The Australian Securities Exchange has surprised analysts by announcing plans to raise more than A$500m, saying it needs the money to comply with new capital rules affecting clearing houses, repay debt and fund “growth initiatives”.
jlne.ws/1922Yrn

NYSE Euronext appoints Eric Forest as Chairman and CEO of EnterNext
NYSE Euronext (NYX) today announced the appointment of Eric Forest as Chairman and CEO of EnterNext, the marketplace for SMEs. He will join NYSE Euronext in a few weeks and is already present alongside Dominique Cerutti, NYSE Euronext President and Deputy CEO and Chairman of the Management Board of Euronext NV, for the first stages of the regional launch, in Marseille and Lyon.
jlne.ws/11rnT0P

European swaps reporting deadline facing further delays
Anish Puaar – Financial News
Under-resourced regulators and industry resistance could push key European derivatives reporting rules well into 2014, further delaying Europe’s implementation of G20 reforms that will reshape the swaps market.
jlne.ws/1922Yrq

Want to Commit Insider Trading? Here’s How Not to Do It
New York Times
A person in Thailand, who has been accused of insider trading related to Smithfield Foods, used quite a few techniques that were bound to attract the attention of regulators, the author writes.
jlne.ws/11rlbIv

More evidence that Thomson Reuters data may be leaking out earlier than it’s meant to
Quartz via Yahoo! Finance
High-frequency traders have a distinct advantage in the way Thomson Reuters distributes its University of Michigan Consumer Sentiment Index, a monthly report compiled by Thomson Reuters and the university.
jlne.ws/1922YHG

Most Banks Expect Salary Increases to Offset EU Bonus Cap
Bloomberg
The poll, of more than 150 human resources employees, found that only 7 percent thought the EU rules would be successful in reducing pay across the financial services industry. About 53 percent said they would increase pay.
jlne.ws/19230Q6

Regulatory

CFTC Announces that Mandatory Clearing for Category 2 Entities Begins June 10
The second phase of required clearing for certain credit default swaps (CDS) and interest rate swaps begins today. Commodity pools, private funds, and persons predominantly engaged in activities that are in the business of banking, or in activities that are financial in nature, are included within the definition of Category 2 Entities. These entities are required to begin clearing swaps executed on or after June 10, 2013.
jlne.ws/192316n

CFTC Provides For Mutual Acceptance of Approved Legal Entity Identifiers
The Commodity Futures Trading Commission (CFTC) has issued an Amended Order expanding, through mutual acceptance by international regulators, the list of Legal Entity Identifiers (LEIs) that can be used by registered entities and swap counterparties in complying with CFTC’s swap data reporting regulations.
jlne.ws/1922YHI

CFTC’s Division of Clearing and Risk Issues Time-Limited No-Action Relief to Banks Having Assets of Less Than $10 Billion from the Board Approval Requirement of the CEA and the End-User Exception to the Clearing Requirement
The Division of Clearing and Risk (DCR) of the Commodity Futures Trading Commission (Commission) today announced the issuance of a time-limited, no-action letter granting relief to banks, savings associations, farm credit system institutions, and credit unions having assets of less than $10 billion (Small Banks), which are issuers of securities, from the board approval requirements of section 2(j) of the Commodity Exchange Act (CEA) and Commission regulation 50.50, subject to certain conditions.
jlne.ws/1922YHK

TO DATE, ONLY ENTITY OFFERING BINARY OPTIONS WITH STATUS AS A DESIGNATED CONTRACT MARKET – NADEX
The Commodity Futures Trading Commission’s (CFTC) Office of Consumer Outreach and the Securities & Exchange Commission’s Office of Investor Education and Advocacy are issuing this Investor Alert to warn about fraudulent schemes involving binary options and their trading platforms. These schemes allegedly include refusing to credit customer accounts, denying fund reimbursement, identity theft, and manipulation of software to generate losing trades.
jlne.ws/Nqewuj

AIFMD: Significantly higher costs for depositaries will outweigh advantages, say fund industry players
Polling sessions during Clearstream’s Fund Summit in Brussels revealed that 60 percent of the 150 delegates anticipate that the increase of costs for depositaries posed by the new AIFMD (Alternative Investment Fund Managers Directive) rules will be significant and will outweigh the advantages. On the alternative fund manager side, 56 percent of the delegates say AIFMD will significantly impact their operational, legal and/or governance model set-up.
jlne.ws/1922YHO

Statement Between The U.S. And Japanese Authorities To Facilitate U.S. FATCA Implementation
jlne.ws/192316o

ESMA Seeks New Members For Its Securities Markets Stakeholders Group
jlne.ws/1922YHS

ESMA Risk Dashboard
jlne.ws/1922YHT

ASIC consults on demutualisation approval procedure rules
jlne.ws/1922YHU

Exchanges & Trading Facilities

NYSE Arca Unveils Exchange Traded Products Incentive Program
NYSE Euronext announced that it has received approval from the U.S. Securities and Exchange Commission to launch the NYSE Arca Exchange Traded Product Incentive Program. This new 12 month pilot program offers an alternative for incentivizing lead market makers to be the primary market maker in certain exchange traded products selected by issuers.
jlne.ws/192316t

ISE Announces Three New Board Members
The International Securities Exchange (ISE) today announced the addition of three new members to its Board of Directors, and also announced six members were re-elected.
jlne.ws/1922YHY

ICE chief ready to cede NYSE market share in bid to end rebates
John McCrank – Reuters
The New York Stock Exchange may cede some of its share in U.S. stocks in an effort to end large trading incentives after NYSE Euronext’s (NYX.N) $8.2 billion sale to IntercontinentalExchange (ICE.N) goes through, ICE’s chief executive said on Friday.
jlne.ws/11rmLtT

ASX Announces $553 Million Entitlement Offer
jlne.ws/1922YYf

ASX Request for a Trading Halt
Trading halt requested pending the outcome of a proposed capital raising
jlne.ws/1922YYg

ASX Cleansing Notice
jlne.ws/192316w

[ASX] Appendix 3B
jlne.ws/1922YYi

Liquidnet Sees Record Growth and Membership Engagement in Asia Pacific
Business Wire via Yahoo! Finance
Liquidnet, the global institutional trading network, reported a series of Asia Pacific trading records in May, including a record month of principal traded and the highest volume t
jlne.ws/192316C

Vienna Stock Exchange Monthly Statistics – May 2013
jlne.ws/1922YYm

Vienna Stock Exchange Monthly Statistics: Derivative Market – May 2013
jlne.ws/19231mQ

BM&FBOVESPA: Decree N. 8,023 Reduced The Rate Of Tax On Credit, Exchange And Insurance On Foreign Investors’ FX Transactions
jlne.ws/1922YYu

Hedge Funds & Managed Futures

Bond Buffer Seen in Demand for Swaps Collateral: Credit Markets
Matthew Leising & Liz Capo McCormick – Bloomberg
New collateral rules for hedge funds, insurers and others in the $633 trillion over-the-counter derivatives market are poised to boost demand for U.S. Treasuries, potentially slowing rising yields as the Federal Reserve considers scaling back unprecedented stimulus.
jlne.ws/11rthRi

May Hedge Fund Performance Update: Ben Bernanke Keeps Crushing it
Zero Hedge
Yet another month in which the Ben Bernanke risk managed S&P500 Onshore Fund outperforms 93% of all other actively managed brand name hedge funds, and is on pace for the fifth year in a row in which the 2/20 world will underperform the S&P500.
jlne.ws/19231mT

SAC Capital Redemptions $2 to $3 Billion: Exclusive
CNBC via Yahoo! Finance
The hedge fund SAC Capital received between $2 billion and $3 billion in requests from investors for the return of capital last week, say people familiar with the matter.
jlne.ws/19231mU

US $87bn asset manager sets up in London
Sophie Baker – Financial News
Thornburg Investment Management has opened its first non-US office to enhance its global distribution capabilities and build on the international perspective it can offer to its increasingly globally-focused clients.
jlne.ws/1922ZeK

The Last Thing SAC Capital Needs — A Hedge Fund That Manages Some Of Its Money Is Getting Spanked
Business Insider
NEW YORK – As billionaire investor Steven A. Cohen deals with a spate of redemptions out of his own hedge fund, another firm in which his SAC Capital Advisors has money saw returns plummet in the first four months of the year.
jlne.ws/19231mW

Ten things investors are demanding in the current fundraising cycle
Alec Macfarlane – Financial News
In an environment where fundraising is proving difficult for private equity firms, investors are finding they have more negotiating power than ever before. But how this should be used is less clear. Here, Financial News rounds up the variety of investor concerns to list the top 10 demands they are currently making.
jlne.ws/19231mZ

How To Be King Of The World — A Hedge Fund Manager Explains
Business Insider
I can totally dominate my 11 year old daughter in tennis. I kick her ass basically. Like, if she hits an easy shot, I can slam it back to the other side of the court and with her small legs there’s no way she can run to catch the ball.
jlne.ws/19231n3

Yes, Mothers Can Be Traders
Business Insider
According to Paul Tudor Jones, the billionaire hedge fund manager, they cannot. We find this statement both disturbing and perplexing since we are women whose life experience would suggest otherwise, and we spend much of our time encouraging young women to pursue careers in finance generally and trading in particular.
jlne.ws/1922ZeO

Pan-European Survey Highlights Achievement Across The Buy-Side, Sell-Side And Corporate Communities – Thomson Reuters Announces 2013 Extel Survey Results
jlne.ws/1922ZeR

Banks & Brokers

Lloyds accused of mishandling PPI complaints
Hannah Kuchler – FT.com
Lloyds Banking Group has admitted problems with the way it handled some PPI complaints after an undercover investigation claimed staff were told to ignore possible fraud.
jlne.ws/19231n6

Counting the real cost of regulation
William Wright – Financial News
Nobody likes more regulators or more regulation. This antipathy towards watchdogs was neatly captured by Howard Davies, then chairman of the Financial Services Authority, when, shortly after the organisation’s formal launch in 2001, he wrote: “The celebrations in the City of London were muted. If there were parties, we were not invited.”
jlne.ws/1922ZeU

Barclays fires back, says hostility to banks unhealthy
Reuters via Yahoo! Finance
Barclays PLC Chairman David Walker hit back on Monday against what he said has become the “political and media industry” of badmouthing banks and bankers, and insisted on banks’ vital role in a free-market economy.
jlne.ws/1922ZeW

Current Account: Nomura Not Scared by Its Ghosts
Francesco Guerrera – MoneyBeat – WSJ
The vast trading floor in Midtown Manhattan was eerily quiet when I visited a couple of weeks ago. The phones were dead and the screens dark. Silence filled the void usually occupied by the noisy banter of those buying and selling securities.
jlne.ws/1922ZeY

Nomura Adds 6 Bankers to Its Americas Arm
New York Times
Nomura of Japan said on Monday that it had hired several senior bankers to take various posts at its investment bank as the firm continued to expand its presence in the Americas.
jlne.ws/1922ZeZ

Deutsche Bank says is confident on asset wealth management goals
Reuters via Yahoo! Finance
Deutsche Bank can achieve and possibly even exceed its target of generating 1.7 billion euros in pretax profit from its asset and wealth management division by 2015, the unit’s chief Michele Faissola said
jlne.ws/19231Dn

Deloitte Buys Assets of Hugh McColl’s Boutique Bank
NYTimes.com
Deloitte announced on Monday that it had acquired most of the assets of McColl Partners, a boutique investment bank founded by Hugh L. McColl Jr., who had built Bank of America into a colossus. Terms of the deal were not disclosed.
jlne.ws/19231Dp

Fraud Against Seniors Often Is Routed Through Banks
JESSICA SILVER-GREENBERG – NYTimes.com
The pitch arrived, as so many do, with a friendly cold call. What is less familiar — and what federal authorities say occurs with alarming frequency — is that a reputable bank played a crucial role in parting Mr. Koch from his money.
jlne.ws/19231Dq

The high-security, high-concept vault where Deutsche Bank will store $9 billion of gold
Quartz via Yahoo! Finance
Deutsche Bank, one of the world’s largest dealers of gold, has begun storing bullion in Singapore, reflecting the nation-state’s growing importance as a financial haven.
jlne.ws/19231Dt

Britain readies banks for return to private ownership
Reuters via Yahoo! News
By Matt Scuffham LONDON – Britain will give its strongest indication yet that it is ready to return part-nationalised Lloyds Banking Group and Royal Bank of Scotland to private ownership later this month, political and industry sources said.
jlne.ws/19231Dv

Clearing & Settlement

IntercontinentalExchange Announces Buyside Clearing Surpasses $1 Trillion in CDS Gross Notional
IntercontinentalExchange, a leading operator of global markets and clearing houses, today announced that as of June 6 it has cleared more than $1 trillion in credit default swap gross notional value by buyside participants since client clearing was launched in December 2009.
jlne.ws/1922Zvk

CME Group Clearing Advisory: NYMEX Options Expiration Operational Procedures for the Trading Floor and Clearing Members (A) Effective Tuesday, June 11, 2013
jlne.ws/19231Dz

Indexes & Products

Nasdaq OMX Introduces New Indexes For Icelandic Bond Market
jlne.ws/1922Zvm

Methodology Of The Moscow Exchange Indices Calculation To Become Effective On June 20, 2013
jlne.ws/1922Zvo

NASDAQ OMX: Semi-Annual Review Of The OMX Iceland 6 Index
jlne.ws/1922Zvr

Technology

Asset Control appoints Business Development Director, EMEA
Asset Control, provider of financial data management solutions, has announced the return of Ian Cumberpatch as Associate Director of Business Development EMEA.
jlne.ws/19231DD

Enforcement

SEC Charges Top Officials At Investment Adviser in Scheme to Hide Theft From Pension Fund of Detroit Police and Firefighters
The Securities and Exchange Commission today charged the leader of a Detroit-based investment adviser for stealing nearly $3.1 million from the pension fund that the firm manages for the city’s police officers and firefighters so he could buy two strip malls in California. The SEC charged four other top officials at the firm for helping him try to cover up the theft.
jlne.ws/1922Zvs

UK’s Financial Conduct Authority Fines Xcap Securities PLC £120,900 For Client Asset Failings And Applies New Penalty Regime
The Financial Conduct Authority (FCA) has fined Xcap Securities PLC (Xcap), a retail investment and capital markets business, £120,900 for failing to adequately protect client money and client assets. This is the first client asset case the FCA has brought under the new penalty regime, which applies to breaches committed from 6 March 2010, and introduces new penalty levels in such cases.
jlne.ws/19231TS

SEC fines optionsXpress, individuals $4.8 million for naked short sales
Crain’s Chicago Business
A Securities and Exchange Commission judge has ordered optionsXpress, its former chief financial officer and a customer to pay a total of $4.8 million in fines and to return $4.2 million for illegally selling shares they did not hold.
jlne.ws/1922ZLL

SAC Capital case nears breakthrough on laptop access
Kara Scannell in New York – FT.com
US prosecutors are finalising an agreement with the University of Michigan that would give them access to computer files tied to an insider trading case against a former SAC Capital employee.
jlne.ws/1922ZLM

SEC Nets Win in ‘Naked Short’ Case
SCOTT PATTERSON – WSJ.com
WASHINGTON—A Securities and Exchange Commission judge ruled that a former Maryland banker perpetrated a short-selling fraud aided by one of the biggest stock-options brokers in the U.S.
jlne.ws/19231TV

Environmental & Energy

IEA Urges Action to Avert Dangerous Temperature Rise
The Wall Street Journal
A global climate deal that may come into force in 2020 will come too late to avert a global temperature increase of more than 2 degrees Celsius, unless governments swiftly implement four new policy measures to curb carbon emissions, the International Energy Agency said Monday.
jlne.ws/1083GCX

Global carbon emissions hit record high in 2012
Reuters
China led a rise in global carbon dioxide emissions to a record high in 2012, more than offsetting falls in the United States and Europe, the International Energy Agency (IEA) said on Monday.
jlne.ws/11ssbos

United States’ Contribution to Global Warming Decreased in 2012
US News & World Report
The world is on pace to more than double the expected global temperature rise due to climate change according to a new report by the International Energy Agency.
jlne.ws/11Dc0ZD

Asia-Pacific

SGX Strengthens Post-Trade Services With New Lead
Singapore Exchange (SGX) is pleased to appoint Nico Torchetti as the new Head of Post Trade Services effective 1 August 2013.
jlne.ws/1922ZLP

Broadridge Accelerates Strategic Growth In Japan Through Multiple New Sales
jlne.ws/1922ZLS

Tokyo Stock Exchange: Statistics On Dates Of Annual General Shareholders Meetings For Companies Which Settle Accounts In March 2013
jlne.ws/1922ZLT

Frontier Markets

Dubai Shares Drop Most in More Than Year Before MSCI Decision
Bloomberg
Dubai’s shares fell the most in more than a year as investors await an MSCI Inc. decision on whether the United Arab Emirates will be upgraded to emerging-market status. Stocks in Abu Dhabi also declined.
jlne.ws/1922ZLU

FTSE Opens New Offices In Dubai International Financial Centre – DIFC’s Office Will Act As A Hub For FTSE’s Growing Operations In Africa
jlne.ws/1922ZLV

Tehran Stock Exchange Monthly Bulletin – May 2013
jlne.ws/19231U4

First Read

London is Next
John J. Lothian
Thanks to Jessica Titlebaum for editing the newsletter last week.

Jim Kharouf and I are both headed to London at the end of the month for FIA/FOA International Derivatives Week. Let us know if you would like to set up a meeting there.

We will be looking for a guest editor for that week. Suggestions are welcome. We have one for the following week lined up already, the first week of July, while I am away at Boy Scout summer camp.

Do you have Interns in Chicago this summer?

We are contemplating creating a summer intern education program as part of our World of Opportunity theme. Right now, this would just be a Chicago program, but could expand in the future if it works. Does your firm have interns in Chicago this summer? If so, how many do you have? We want to see if there are enough to make this program work, so please let us know.

Turkey on Hold

We are putting our Turkey Special Report on Hold (hold the Turkey!), while we evaluate the rather fluid political unrest there and its impact on the theme of our Special Report.

Meanwhile, we continue to work on our Special Report on London, hopefully publishing it the week of IDX.

Mammoth Cave

I returned last week from a Boy Scout trip to Mammoth Cave in Kentucky. The boys had a great time of caving, zip lining, horseback riding, swimming and fishing. And, during a stop at the birthplace of Abraham Lincoln, they had the opportunity to retire the colors of the U.S. from the flagpole there. It was a moving experience and a great trip.

During one of the cave tours, I had to go up and down over 500 steps, which is pretty good considering I am less than 3 months from having double knee replacement surgery.

Big Numbers

While I was on my trip, MarketsWiki passed the 40 million page view mark and MarketsReformWiki passed the 5 million page view mark. Those are getting to be some Mammoth traffic numbers.

++++

IntercontinentalExchange Sets Daily Volume Record in ICE U.S. Dollar Index
IntercontinentalExchange, a leading operator of global markets and clearing houses, today reported record daily volume in the ICE U.S. Dollar Index (USDX) futures contract of 116,372 contracts on June 6, 2013. The notional value of USDX contracts traded was approximately $9.5 billion. The previous daily volume record of 88,394 contracts was established on March 13, 2013. Year to date, ADV for the USDX is 34,707, up 27% over the same period last year.
jlne.ws/13t8OhF

***** Do you know who was behind the creation of the tradable dollar index?

++++

S.E.C. Plan for Money Market Funds Takes Some Baby Steps
New York Times
Mary Jo White, the S.E.C.’s new chairwoman, is taking a more incremental approach than her predecessor in trying to regulate money market funds.
jlne.ws/13t8OhL

***** Yes, bold regulatory action via baby steps.

++++

Beyond the sound and fury of CFTC deadline
Lee Olesky – FT.com
For many US-based traders, Monday marks the beginning of a radical change in derivatives trading. The next major deadline in over-the-counter swaps market reform will take effect, requiring “Category II” companies such as commodity pools, hedge funds and non-swap dealer banks, to clear derivatives trades through a centralised clearing party.
jlne.ws/13t8QpR

++++

HKEx’s LME warehousing conundrum
Jack Farchy in London – FT.com
Soon after Charles Li secured the acquisition of the London Metal Exchange, he caused a stir by promising to take a “bazooka” to its thorniest problem – warehousing. A metaphorical rocket-launcher would be necessary, the chief executive of Hong Kong Exchanges & Clearing explained, should it turn out that the long queues to take delivery from the LME’s network of warehouses were causing shortages of metal in the real world, forcing factories to shut down and harming economic growth.
jlne.ws/13t8Oy8

***** Maybe selling the exchange was not such a great idea?

++++

The Future of Global Financial Regulation
Clarke Camper – Inside the Beltway
The Institute of International Finance (IIF) recently published a report outlining sixteen recommendations to global financial policymakers on ways to best “promote greater consistency” during “all stages of the regulatory cycle.”
jlne.ws/13t8QpX

***** Here is your summer reading recommendation.

++++

Jock Percy of Perseus Telecom on Microwave Technology in the Trading World
MarketsWiki.tv

Jock Percy spoke with John Lothian News Editor-at-Large Doug Ashburn about the use of microwave for data transmission – what is driving the demand, the benefits and limitations of wireless, and a bit about the economics of technology upgrades. He closes with a look to the future of wireless and its global implications.

Dr. Jock Percy is CEO of Perseus Telecom, a global carrier of financial telecommunications specializing in ultra low-latency market-to-market connectivity. Before taking the helm at Perseus, Percy spent a number of years in the telecommunications sector, with firms such as Double Helix (sold to ACE*COMM in 2006), BT, Telekom Austria, Finnet, and Saudi Telecom. In 2009 he founded FXecosystem, a provider of low-latency infrastructure to the foreign exchange market.

Watch the video »

++++

Tradition Launches New Volatility Futures Platform – Streamlined Negotiation Of CME Group Futures With Variance Pay-Off
Tradition, one of the world’s largest interdealer brokers in over-the-counter commodity and financial products, has today announced the launch of Volatis, a new hybrid platform designed to facilitate the negotiation, and subsequent trading of, realised volatility futures with a variance pay-off listed and cleared on CME Group exchanges.
jlne.ws/13t8QGh

++++

All is Fair in Exchanges’ War
JACOB BUNGE AND TELIS DEMOS – WSJ.com
When the two biggest U.S. stock exchanges battle for stock listings, they go at each other glitch for glitch. David Callisch witnessed the barbs when his company was deciding on its initial public offering last year.
jlne.ws/13t8Oyi

++++

An Old-School Stock Picker Struggles With Index Craze
KIRSTEN GRIND – WSJ.com
Wally Weitz may be only the second-best-known investor in Omaha. But like Warren Buffett, he has long churned out gains by sticking to a basic formula: Buy strong companies whose shares are down and wait patiently for a rebound. Over three years, his Weitz Value mutual fund has outperformed the Standard & Poor’s 500-stock index by an average of about one percentage point a year and beat about 90% of similar stock funds. Investors aren’t impressed.
jlne.ws/13t8OOA

++++

Up, up and away: balloons could enable high-speed trading
Michelle Price – Financial News
Network providers have drilled through the Appalachian Mountains and laid fibre optic cables beneath the Arctic ice, now they are exploring using a new technique in the pursuit of super-fast trading: the humble balloon.
jlne.ws/13t8QGo

++++

Don’t worry about money
Chuck Jaffe, MarketWatch
The problem with growing up in the household of a columnist is that everything you do becomes work fodder. And so it was that my children’s money foibles as toddlers and teens made my work easier. Moreover, the one thing every columnist has in them at some point is a graduation speech; it’s one of those transitional points where we feel our lessons will be valuable. Yet the one thing my children asked me not to write was a “graduation speech about money” for when they got out of high school.
jlne.ws/13t8OOG

++++

David Weidner’s Writing on the Wall: SAC and the cost of a lost reputation
WSJ
In Shakespeare’s “Othello,” the slandered Cassio exclaims: “I have lost my reputation! I have lost the immortal part of myself, and what remains is bestial.” So it goes on Wall Street.
jlne.ws/13t8QGv

++++

MarketsWiki

MarketsWiki Page of the Day
Stephen P. O’Connor
jlne.ws/11K238y

MarketsWiki Recent Updates

People

David Silverman; Barry Cheung; Jim Tehupuring; Joanna Mallers; Stephen P. O’Connor; Chuck Bohm; Jeremiah Norton

Companies, Organizations and Groups

Eurex; CME Group, Inc.; BNY ConvergEx Group, LLC; First American Discount Corporation

Statistics

40,452,027 pages viewed, 7,516 articles, 160,378 edits
MarketsWiki Statistics

Lead Stories

Exchange CEOs See Euronext Sale Reshaping EU Equity Market
JACOB BUNGE – WSJ.com
NEW YORK—A planned spin-off of four European stock exchanges could trigger a shake-up of equity trading in the region that includes partnerships or further consolidation, senior industry executives said.
jlne.ws/13t8QWL

Hedge Funds Win Collateral Reprieve in SEC Dodd-Frank Shift
Silla Brush & Matthew Leising – Bloomberg
Hedge funds and asset managers won relief from Dodd-Frank Act collateral requirements for credit-default swaps under a policy shift disclosed today in letters posted on the U.S. Securities and Exchange Commission’s website.
jlne.ws/13t8QWO

UK short-selling suit to test Esma powers
Anish Puaar – Financial News
The outcome of a UK lawsuit over shortselling rules could prove pivotal in determining the future power of European super-regulators created in the wake of the financial crisis, according to legal experts.
jlne.ws/13t8P5h

Police Charge Man in HKMEx Probe Over Proof of Funds
Bloomberg
Hong Kong police investigating the failure of the Hong Kong Mercantile Exchange charged a Malaysian man with possessing a fake statement of funds for $516 million.
jlne.ws/13t8P57

SEC Pays $580,000 Over Ex-Investigator’s Firing Claims
Bloomberg
The U.S. Securities and Exchange Commission has paid $580,000 to settle claims by a former internal watchdog that he was fired in an effort to quash his investigations.
jlne.ws/13t8OOQ

Tech Beat: Market gets creative to beat the margin squeeze
Philip Stafford – FT.com
One of the trickiest issues banks and brokers will face in coming years is finding the collateral, or insurance, they need to back their trades. All recognise they will need more for trading when the wave of competing financial services regulation kicks in; few know how much will be required, nor what will be acceptable to both regulators and clearing houses.
jlne.ws/13t8QWR

Norway Banks to Hand Nibor Oversight to Bourse After Probe
Bloomberg
Norway’s banks are working on handing oversight and setting of the nation’s benchmark interbank rate to the stock exchange after a probe into claims of manipulation was inconclusive.
jlne.ws/13t8P58

Germany lays out high-frequency trading hurdles
Tim Cave – Financial News
German lawmakers stole a march on their European counterparts last month with the introduction of one of Europe’s first pieces of legislation designed specifically to curb high-frequency trading.
jlne.ws/13t8P5d

Regulatory

Recusals Likely for SEC’s New Top Cop
JEAN EAGLESHAM – WSJ.com
Andrew Ceresney was picked as the Securities and Exchange Commission’s new co-chief of enforcement partly because of his experience defending Wall Street in government investigations. Now, the agency has to work through the conflicts created by his private-sector past.
jlne.ws/13t8P5k

U.S. Rules on Swaps Face Opposition Abroad
JAMILA TRINDLE AND LAURENCE NORMAN – WSJ.com
Gary Gensler’s plan to impose U.S. derivatives rules on foreign-based banks will face a critical test when the Commodity Futures Trading Commission chairman meets with European regulators in Montreal on June 20.
jlne.ws/13t8QWV

Bloomberg Suit Over CFTC Swap Collateral Rules Is Dismissed
Joel Rosenblatt – Bloomberg
Bloomberg LP’s lawsuit challenging the top U.S. derivatives regulator over rules setting higher collateral standards for swaps than comparable futures was dismissed by a federal judge.
jlne.ws/13t8PlD

SEC counsel faces whistleblower’s claims
Tom Braithwaite and Kara Scannell in New York – FT.com
The new chief counsel to the Securities and Exchange Commission chairman is the subject of a discrimination complaint from a former colleague at Deutsche Bank, who claims he was fired for blowing the whistle on fraud.
jlne.ws/13t8PlG

CFTC’s Division of Clearing and Risk Issues Time-Limited No-Action Relief from Required Clearing for Swaps Entered into by Certain Cooperatives
The Division of Clearing and Risk (DCR) of the Commodity Futures Trading Commission (Commission) today announced the issuance of a time-limited, no-action letter granting relief from required clearing under section 2(h)(1)(A) of the Commodity Exchange Act and part 50 of the Commission’s regulations for certain swaps entered into by qualifying cooperatives.
jlne.ws/13t8Rde

CFTC’s Division of Clearing and Risk Issues an Advisory Pertaining to the Effective Date of the Clearing Exemption for Swaps Between Certain Affiliated Entities
The Division of Clearing and Risk (DCR) of the Commodity Futures Trading Commission (CFTC) today issued an Advisory notifying market participants that the effective date of the final rule adopting the “Clearing Exemption for Swaps Between Certain Affiliated Entities” has been automatically extended by operation of law, to June 18, 2013.
jlne.ws/13t8Rdi

European Central Bank Consults On Draft Regulation On Oversight Requirements For Systemically Important Payment Systems
jlne.ws/13t8PlH

Exchanges & Trading Facilities

CME Group Sees Record Trading In Its Global FX Complex – Transacted $239 Billion In Notional Volume Across FX Futures And Options
CME Group, the world’s leading and most diverse derivatives exchange, yesterday saw record trading in electronic FX options, Japanese yen, Canadian dollar and open interest in Australian dollar. Total
jlne.ws/13t8Rdk

Pierre Bornard Appointed Powernext’s Chairman Of The Board For A Fifth Consecutive Term
Powernext’s Management Board has appointed Pierre Bornard as its Chairman for a fifth consecutive term on 28th May 2013. Jean-François Conil-Lacoste is Powernext’s Chief Executive Officer since the creation of the company in 2001, while Mr. Bornard, also Vice-President of RTE’s Board of Directors (Réseau de Transport d’Électricité, the French TSO), is its non-executive President.
jlne.ws/13t8Rdl

Q&A With Steffen Koehler, Chief Operating Office, EEX – From June’s Trading Places
jlne.ws/13t8Rdo

BOX Options Exchange June 2013 InBOX
jlne.ws/13t8PlM

TMX Atrium Support Migration Of TOM (The Order Machine)
jlne.ws/13t8Rdx

[CBOE] Restrictions on Transactions in Tata Communications Ltd. (TCL)
jlne.ws/13t8PlR

[CBOE] Trader E-News
jlne.ws/13t8RtM

TOM MTF Statistics Week 23, 2013
jlne.ws/13t8Shl

Hellenic Exchanges S.A. : Notification About A Significant Change In The Number Of Voting Rights (Law 3556/2007)
jlne.ws/13t8Shp

Athens Exchange Derivatives Market Monthly Statistical Bulletin May 2013
jlne.ws/13t8RtW

Irish Stock Exchange Admits Cantor Fitzgerald Ireland As A Primary Dealer In Irish Government Bonds
jlne.ws/13t8RtX

Irish Stock Exchange Statistics May 2013
jlne.ws/13t8Shx

Athens Exchange Monthly Statistical Bulletin May 2013
jlne.ws/13t8ShA

Hedge Funds & Managed Futures

Paulson’s main funds gain on deals, distressed debt
Reuters via Yahoo! Finance
Hedge fund manager John Paulson reported strong returns in his largest funds last month as bets on deals and distressed debt are paying off and boosting several of his portfolios to double digit gains so far this year.
jlne.ws/13t8SxO

Hutchin Hill Credit Trader Ahmad Said to Leave, Unwind Positions
Mary Childs – Bloomberg
Shahraab Ahmad, a credit trader at Hutchin Hill Capital LP who joined the firm at its 2008 inception, is leaving and has mostly completed liquidating his $150 million book.
jlne.ws/13t8RKi

Charity lunch with Warren Buffett sells for just over $1 million
Salvador Rodriguez – Chicago Tribune
A private lunch with Warren Buffett that benefits a charity was sold Friday on Ebay for $1,000,010. The anonymous bidder will be able to take seven of his or her friends with them to a steakhouse lunch in New York City for a private meal with Buffett, the billionaire investor known as the “Oracle of Omaha.”
jlne.ws/13t8SxS

CFTC Commitments Of Traders Reports Update
jlne.ws/13t8SxT

BlackRock Announces Changes to Investment Policies for The Massachusetts Health & Education Tax-Exempt Trust
jlne.ws/13t8RKn

Banks & Brokers

ICAP plc board changes
ICAP plc (IAP.L), a leading markets operator and provider of post trade risk mitigation and information services, today announces that, following his appointment as Chairman of United Overseas Bank Ltd, Hsieh Fu Hua will not be standing for re-election to the board at ICAP plc’s annual general meeting on 10 July 2013.
jlne.ws/13t8RKr

Schwab Topping Goldman Sachs Presages American Return to Stocks
Whitney Kisling & Alexis Xydias – Bloomberg
Shares of discount brokers are gaining the most since 2003 compared with the Standard & Poor’s 500 Index, a sign that small investors are joining the four-year bull market even after U.S. stocks suffered their biggest losses in six months.
jlne.ws/13t8Sy5

JPMorgan Chase to Close Albion Mortgage Facility; 400 Workers Affected
WGRZ-TV Buffalo
ALBION, N.Y. — JPMorgan Chase will close its mortgage facility in Albion in Orleans County in September, putting 400 people out of work. But there are efforts to find new work for those employees.
jlne.ws/13t8RKz

DealBook: France Expands Inquiry Into Tax Evasion at UBS
New York Times
UBS, the target of a widening tax-evasion case in France, was placed under formal investigation on suspicion that it illegally helped French citizens to set up secret accounts abroad.
jlne.ws/13t8SOs

Deutsche Bank Opens Singapore Gold Vault That Can Hold 200 Tons
Bloomberg
Deutsche Bank AG said it started gold storage facilities that can keep as much as 200 metric tons at the Singapore FreePort.
jlne.ws/13t8S0P

Clearing & Settlement

ISDA Publishes 2013 Standard Credit Support Annex (SCSA)
The International Swaps and Derivatives Association, Inc. (ISDA), today announced the publication of the 2013 Standard Credit Support Annex (SCSA).
jlne.ws/13t8T4Q

CME Group Clearing Advisory: NYMEX Options Expiration Operational Procedures for the Trading Floor and Clearing Members (OS) Effective Monday, June 10, 2013
jlne.ws/13t8S0U

CME Clearing – Performance Bond Requirements – Agriculture, Energy, Freight, and Interest Rate Outrights; Natural Gas Intra-Commodity Spread Charges; Refined Product Inter-Commodity Spread Credits – Effective Tuesday, June 11, 2013
jlne.ws/13t8T4Y

Indexes & Products

SEC Wants to Speed ETF Approval for Faster Launches
ETF Trends via Yahoo! Finance
The SEC will consider a proposal this year that would make it easier for asset managers to introduce simple index-based ETFs, according to a report Friday.
jlne.ws/13t8T56

Component Change Made In STOXX Global Select Dividend 100 Index – Changes Are Due To Fast Exit Rule
jlne.ws/13t8S14

Quarterly review AEX-Index family
jlne.ws/11wL1yO

NYSE Euronext: The Expert Indices Committee
jlne.ws/13t8Tlt

Technology

Mamadoo Participates In Custom Connect – Big Opportunities For International, Carrier-Neutral Connectivity Services
jlne.ws/13t8UWB

Enforcement

SEC Charges Whittier Trust and Fund Manager in Insider Trading Investigation Into Expert Networks
The Securities and Exchange Commission today charged a South Pasadena, Calif.-based wealth management company and a former fund manager with insider trading on non-public information about technology companies. The charges are the agency’s latest in its ongoing investigation into expert networks and hedge fund trading.
jlne.ws/13t8Tlw

Rengan Rajaratnam Cuts Own Path in Plea Talks
ANITA RAGHAVAN – NYTimes.com
Raj and Rengan Rajaratnam were both born in Sri Lanka. They both studied at the University of Pennsylvania and they both started hedge funds. But as Rengan, 42, faces insider trading charges, he appears to be taking a very different approach from his older brother, Raj.
jlne.ws/13t8UWH

Environmental & Energy

U.S. Northeast Carbon-Offset Sale Raises a Record $124.5 Million
Bloomberg
Regional Greenhouse Gas Initiative Inc., the nonprofit that administers the U.S. Northeast’s greenhouse-gas emissions program, raised a record $124.5 million in its quarterly auction of carbon allowances after slashing next year’s supply by almost half.
jlne.ws/11pN57Q

**RKB — RGGI release and auction results, here.

Global carbon trading system needs urgent support warns UN chair
Responding to Climate Change blog
The world’s main system of carbon trading needs urgent support from governments if it is to continue functioning effectively and give developing countries access to green technologies.
jlne.ws/13wnDld

Where’s the world going on carbon trading?
Climate Spectator
The transition toward a new generation of carbon markets includes a range of domestic or regional initiatives that will become the cornerstone of the global growth of the carbon market in the coming years. Over 40 national and 20 sub-national jurisdictions have either implemented or are considering market mechanisms that place a price on carbon.
**RKB — Over 2000 visitors from more than 100 countries attended the Carbon Expo in Barcelona last week. Carbon Market Institute CEO Peter Castellas reports on some of the key takeaways for Australia.
jlne.ws/13QJwKR

Asia-Pacific

ShFE to launch night trades in gold/silver from July 5 – sources
Reuters
The Shanghai Futures Exchange (ShFE) will start after-hours trading for its gold and silver contracts from July 5, two sources with direct knowledge of the matter said, as part of its efforts to become a more global marketplace.
jlne.ws/13t8UWI

California Summit Leaves Host of Unresolved U.S.-Chinese Issues
Bloomberg
Though they bonded at their two-day California summit, sharing small talk about exercise and a shirt-sleeve stroll in the unforgiving desert sun, the presidents of the world’s two largest economies still confront a range of issues that threaten to pull them apart.
jlne.ws/13t8TBT

Osaka Securities Exchange: Open Interest For Nikkei 225 Options Exceeding 5 million Units
jlne.ws/13t8VcZ

HKEx And Jiangxi Financial Affairs Office Sign MOU
jlne.ws/13t8TBW

HKFE Announces Margin Rates For Adjusted Sinopec Corp Futures
jlne.ws/13t8Vd5

Frontier Markets

DGCX Monthly Volumes Rise 70% In May
The Dubai Gold and Commodities Exchange registered yet another monthly volume record of 1,448,242 contracts, valued at $ 48.47 billion, in May. Monthly trading volumes on the Exchange leapt 70% from the same month last year.
jlne.ws/13t8Vd6

The hard yards begin in Myanmar’s quest for foreign investment
Reuters via Yahoo! News
By Jared Ferrie NAYPYITAW, Myanmar – In a cramped auditorium in Myanmar’s capital, pro-democracy champion Aung San Suu Kyi had a message for the world’s business elite: her country is teeming with foreign investors scouting for opportunities in one of Asia’s final frontier markets, but not many are actually investing.
jlne.ws/13t8TC1

Selective justice keeps foreign investment out of Ukraine
Reuters via Yahoo! News
By Olzhas Auyezov KIEV – Four years after British financier Neil Smith bought one of Ukraine’s largest local vodka producers, it was listed by Forbes as one of the country’s fastest-growing firms, with annual sales of $600 million. Then a local court ruling nearly shut it down. Such cases are one reason why Ukraine performs so poorly in attracting foreign investment
jlne.ws/13t8TC4

The Egyptian Exchange (EGX) Monthly Statistical Report May 2013
jlne.ws/13t8Vdf

African Securities Exchanges Association Yearbook 2013
jlne.ws/13t8TC9

Nigerian Stock Exchange Weekly Report For The Week Ended June 7, 2013
jlne.ws/13t8TSo

Malawi Stock Exchange Weekly Report – Week Ending 07 June 2013
jlne.ws/13t8TSr

First Read

Friday!
Jessica Titlebaum – Orc Group
It’s Friday. It wasn’t that long ago that you could find me at Marquette Inn with Todd Rich and Sean Smith every other Friday. We were like the breakfast club. It was also back then that I would frequent happy hour with Mike Wilkins at that place around the corner — what was it called before it became Franklin Tap?

The bar was actually called Around The Corner (thanks Mike). It was the Sears Tower before it was the Willis Tower, and I was editor-at-large at JJLCO before I joined Orc. Yes, things have changed.

When John first asked if I wanted to go back in time (as in, guest-editor this week) I said yes, but I didn’t know what I would do about today’s edition. My cousin Sara is getting married this weekend, and as a bridesmaid I have a lot of responsibilities, including attending a private tour of Wrigley Field this morning and then the 1:20 Cubs game. It’s rough!

Then it hit me that I was actually guest editing the John Lothian Newsletter this week and I got nervous because those are big shoes to fill. With the wedding coming up, I called Jon Matte last Friday in Norway to get out of it, but he wouldn’t let me off the hook so easy.

Fast forward a few days and I am telling John I am not giving him his newsletter back. I had a great time editing it. I hope you all enjoyed reading it as much as I enjoyed preparing it. Thank you for trusting me with it, John, and for the opportunity to share my personal stories. Also, I would never have been able to do it without the JJLCO team. They are fantastic… even without me.

I hope you all have early happy hours planned and enjoy your weekends… and, quote me on this because it doesn’t happen that often (only for Sara Marton): Go Cubs!

++++

Jock Percy of Perseus Telecom on Microwave Technology in the Trading World
MarketsWiki.tv

Jock Percy spoke with John Lothian News Editor-at-Large Doug Ashburn about the use of microwave for data transmission – what is driving the demand, the benefits and limitations of wireless, and a bit about the economics of technology upgrades. He closes with a look to the future of wireless and its global implications.

Dr. Jock Percy is CEO of Perseus Telecom, a global carrier of financial telecommunications specializing in ultra low-latency market-to-market connectivity. Before taking the helm at Perseus, Percy spent a number of years in the telecommunications sector, with firms such as Double Helix (sold to ACE*COMM in 2006), BT, Telekom Austria, Finnet, and Saudi Telecom. In 2009 he founded FXecosystem, a provider of low-latency infrastructure to the foreign exchange market.

Watch the video »

++++

Stephen O’Connor Appointed Full-Time ISDA Chairman
The International Swaps and Derivatives Association, Inc. (ISDA) today announced that its Board of Directors has appointed Stephen O’Connor as full-time Chairman. In this position, Mr O’Connor will continue to take a leading role in derivatives industry reform while assuming a more active, hands-on involvement in driving ISDA’s strategic initiatives.
jlne.ws/11wL0eq

++++

NYSE Euronext appoints Jim Tehupuring as Head of Retail Europe
NYSE Euronext today announced the appointment of Jim Tehupuring as its new Head of Retail Europe as of June 1st. In this role Jim will be responsible for the retail strategy and offering of services towards retail investors in France, Belgium, Netherlands and Portugal.
jlne.ws/11wL0es

++++

Alice Sun joins Allston Trading
Alice Sun joined Allston Trading as a Quantitative Researcher in the fixed income team in May 2013. Her current focus is to leverage advanced quantitative methods and technological infrastructure to turn new ideas into commercial opportunities. She is looking forward to developing algorithmic trading strategies to trade in financial markets around the world. Alice joins Allston from Goldman Sachs in New York where she served as a strategist in the securities division for two years.
(via email)

***JT: Allston Trading is one of the sponsors of the 2nd Annual Wild Symposium held at the Federal Reserve Bank of Chicago

++++

TriOptima will assist in verifying OTC derivatives data submitted to DTCC
TriOptima announces that it will support data verification and portfolio reconciliation of DTCC’s trade repository data as requested by triResolve clients’ for their OTC derivatives portfolios. TriOptima will be the first portfolio reconciliation provider to receive directly DTCC repository data for this purpose.
jlne.ws/11wL2mv

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BofA Merrill Lynch, Citi and Goldman Sachs are First FCMs for MarkitSERV Credit Centre
Markit, a leading, global financial information services company today announced that BofA Merrill Lynch, Citi, and Goldman Sachs are the first futures commission merchants (FCMs) to agree to use MarkitSERV Credit Centre, the pre-trade credit checking solution for the OTC derivatives market. MarkitSERV Credit Centre provides clearing certainty for trades executed in electronic and hybrid marketplaces.
jlne.ws/11wL0eu

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London Metal Exchange chief resigns
Jack Farchy in London – FT.com
Martin Abbott has resigned as chief executive of the London Metal Exchange just six months after spearheading the £1.4bn sale of the 135-year-old bourse to a Chinese rival. Mr Abbott, a former journalist and broker who personally made about $10m from the deal, will leave the exchange at the end of the year.
jlne.ws/11wL0uK

++++

How the Robots Lost: High-Frequency Trading’s Rise and Fall
BusinessWeek
Speed traders once made billions staging market attacks. Speed, it turns out, kills
jlne.ws/Zw8QWW

***JM: Wait, the fall happened already? “Well, that escalated quickly.”

++++

Why You Will Be Blindsided By The Next Financial Crisis
Forbes
“The global financial crisis that began in the United States in the summer of 2007 was triggered by a bank run, just like those of 1837, 1857, 1873, 1893, 1907 and 1933.” That’s the theme of Yale economist Gary Gorton’s Misunderstanding Financial Crises, Why We Don’t See Them Coming, published last year by Oxford University Press. Students of financial crises will tell you that Gorton’s theme is highly relevant to the next meltdown we could face someday soon.
jlne.ws/11wL0uM

++++

A Week in the Life of a Wall Street Intern
WILLIAM ALDEN – NYTimes.com
Grueling hours. Five-figure pay. And, just maybe, the hope of a job offer in the fall. Such is life for summer interns on Wall Street, many of whom began work this week.
jlne.ws/11wL2mB

++++

Paulson: All That Glitters Isn’t Gold
GREGORY ZUCKERMAN and JULIET CHUNG – WSJ.com
John Paulson has a message for investors: Stop paying so much attention to my gold bets. Mr. Paulson, the billionaire hedge-fund manager who has been one of the most bullish investors in the precious metal and suffered deep losses as a result, is eager to focus attention on his better-performing investments, which also dwarf his firm’s gold fund in size.
jlne.ws/11wL0uR

***JM: …because a bad call of epic proportion by an investment manager is irrelevant as long as he’s done some good stuff, too…

++++

MarketsWiki

MarketsWiki Page of the Day
Lee Betsill
jlne.ws/11km8SR

MarketsWiki Recent Updates

People

Martin Abbott; Lee Betsill; David M. Rubenstein; Andrew Lamb; Danijel Medic

Companies, Organizations and Groups

Intellectual Property Exchange International, Inc.; HSBC Bank; CME Clearing Europe; Carlyle Group; NASDAQ OMX Group, Inc.

Miscellaneous

Deleveraging; Day trader; Bilateral transaction; Over-the-counter; Central counterparty clearing; Stock market index

Statistics

40,285,349 pages viewed, 7,515 articles, 160,144 edits
MarketsWiki Statistics

Lead Stories

Foreign derivatives push divides US regulator
Gregory Meyer in New York – FT.com
Brewing discord has burst into the open at a US regulator seeking to impose new rules on derivatives, suggesting a push to clamp down on cross-border transactions in the $633tn market will stall. Three of the five commissioners at the US Commodity Futures Trading Commission publicly questioned the timeline for passing guidelines aimed to ensure that trading blow-ups at foreign branches or guaranteed affiliates of US banks do not hit the American taxpayer.
jlne.ws/11wL0uT

U.S., Britain Ready Criminal Charges in Libor Case
DAVID ENRICH and JEAN EAGLESHAM – WSJ.com
U.S. and British authorities are preparing to bring criminal charges against former employees of Barclays PLC for their alleged roles trying to manipulate benchmark interest rates, according to people familiar with the plans, marking an escalation of a global investigation now entering its sixth year.
jlne.ws/11wL2CQ

US regulators sue binary options broker
Gregory Meyer and Arash Massoudi in New York – FT.com
US authorities are suing a binary options trading platform and have warned about others in a sign of heightened attention to the sector following troubles at Intrade, the prediction market.
jlne.ws/11wL0uU

Poland, Austria Exchange Tie-Up Nearing Solution
CNBC
Despite cooling of talks between Austria and Poland about a possible merger of their two stock exchanges, the CEO of the Warsaw stock exchange has given his strongest hint yet that a deal is drawing closer.
jlne.ws/11wL0uV

CFTC Sues Prediction Market
JAMILA TRINDLE – WSJ.com
Regulators sued Banc de Binary, a website that allows people to bet on the price of gold, oil or stocks, continuing a crackdown on offshore trading platforms that operate online.
jlne.ws/11wL2CT

Arrests and Billion-Dollar Forgeries Swirl Around Failed Exchange
The Epoch Times
Things looked bad enough for high-powered Hong Kong politician Barry Cheung on May 18, when he shut down the Hong Kong Mercantile Exchange, citing slow trading and insufficient revenue. Days later authorities referred the matter to the police, citing possible “serious” financial irregularities. Now, half a dozen men and women from the mainland have been arrested in connection with the investigation, some of them holding forged financial documents worth hundreds of millions of dollars.
jlne.ws/11wL2CW

Regulatory

Fed’s Raskin Seeks to Clarify Bank Rules by Hastening Basel III
Bloomberg
Federal Reserve Governor Sarah Bloom Raskin said regulators must complete new international capital rules because delays may be harming financial institutions by leaving them unsure how to plan for the future.
jlne.ws/11wL2D0

SEC Renames Division Focusing On Economic And Risk Analysis
jlne.ws/11wL2D2

CFTC Chairman Gary Gensler’s Keynote Address On The Cross-Border Application Of Swaps Market Reform At Sandler O’Neill Conference
jlne.ws/11wL2D6

Statement By CFTC Commissioner Scott D. O’Malia On Ensuring A Backup Plan On Cross-Border Guidance To Give Markets Certainty
jlne.ws/11wL2D9

Money Market Mutual Fund Reform: Opening Statement At The SEC Open Meeting By Norm Champ, Director, Division Of Investment Management, U.S. Securities And Exchange Commission
jlne.ws/11wL0uY

Remarks At The SEC Historical Society Annual Meeting By SEC Commissioner Elisse B. Walter
jlne.ws/11wL2To

SIFMA Responds To CFTC Chairman Gensler Speech On Cross-Border Application Of Dodd-Frank
jlne.ws/11wL0Lf

ESMA Publishes Guidelines And Recommendations Regarding Written Agreements Between Members Of CCP Colleges
jlne.ws/11wL0Lg

Canadian Securities Regulators seek comment on Derivatives Rules relating to Product Determination and Trade Repositories and Data Reporting [CSA]
jlne.ws/11wL0Lj

[Japan] Overview of financial results of major insurance companies as of March 31, 2013 (June 7, 2013)
jlne.ws/11wL0Lm

[Japan] Overview of major banks’ financial results as of March 31, 2013 (June 7, 2013)
jlne.ws/11wL2Tp

ESMA Approves Dagong Europe As A Credit Rating Agency
jlne.ws/11wL0Lq

Exchanges & Trading Facilities

Lisbon bourse must cut commissions for SME access -issuers
Reuters
The Lisbon stock exchange should cut the listing commissions it charges small and medium-sized companies by at least a tenth to encourage them to go public in their search for financing, the association representing firms said.
jlne.ws/11wL0Lt

Instinet Strengthens Asia-Pacific Regional Sales Trading Team
Instinet Incorporated, a global leader in electronic trading, today announced the appointment of Karan Wadhera as Head of Regional Sales Trading and Joe Hancock as Executive Director on the Regional Sales Trading team.
jlne.ws/11wL0Lw

Nadex Commends CFTC Advisory Alert
As a CFTC-registered exchange that provides traders the opportunity to trade binary options on foreign exchange, stock indices and commodities markets, the North American Derivatives Exchange, Inc. (Nadex) commends the U.S. Commodity Futures Trading Commission (CFTC) and the U.S. Securities and Exchange Commission (SEC) on their joint Investor Alert warning about fraudulent schemes involving binary options and off-exchange trading platforms.
jlne.ws/11wL0Lx

BATS Chi-X Europe Sets New Records In Spain, Sweden And Depositary Receipts Trading In First Month As Recognised Investment Exchange
U.S. Equities Market Share 10.4% – U.S. Options 3.8%
jlne.ws/11wL11L

BM&FBOVESPA Publishes May Market Performance
Real Estate Funds Turn Over BRL 4.06 Billion And 382,969 Trades For The Year, Already Surpassing All 2012
jlne.ws/11wL2Tv

Moscow Exchange: Trading In Calendar Spreads On Exceeded 20 Million U.S. Dollars On The First Trading Day
jlne.ws/11wL11R

EEX Launches Trading In Guarantees Of Origin
jlne.ws/11wL11U

BM&FBOVESPA Posts Record Number Of DI1 Futures Trades
BM&FBOVESPA reached a record 24.003 trades in the Interbank Deposit Futures Contract (DI1) today in the BM&F segment. The previous record was 21,655 trades, on June 05, 2013.
jlne.ws/11wL11Y

[CBOE] Restrictions on Transactions in Jaguar Mining, Inc. (JAG)
jlne.ws/11wL2TC

Monthly Summary Bulgarian Stock Exchange-Sofia May 2013
jlne.ws/11wL11Z

MCX Weekly Market Report – May 31, 2013 To June 06, 2013
jlne.ws/11wL39S

Moscow Exchange Launches Trading In A Gold Futures Calendar Spread
jlne.ws/11wL39T

Nordic Growth Market NGM AB: NGM Welcomes ING Bank As New Issuer Of Structured Products At NDX
jlne.ws/11wL122

Program Trading Averaged 31.2 Percent Of NYSE Volume During May 28-31
jlne.ws/11wL123

Direct Edge Trading Notice #13-24: Disaster Recovery Facilities In Chicago Operational In September
jlne.ws/11wL39Y

Hedge Funds & Managed Futures

KKR moves into European property market
Ed Hammond, Property Correspondent – FT.com
KKR has made its maiden purchase in the European property market, buying UK retail parks in a deal that marks a departure from the traditional private equity route into the country’s property market.
jlne.ws/11wL39Z

Blackstone in $1bn Brazil property venture
Anjli Raval in New York and Samantha Pearson in São Paulo – FT.com
Blackstone Group and its Brazilian partner are set to sign a $1bn deal with homebuilder Gafisa for a controlling stake in its high-end residential subsidiary, according to people familiar with the matter.
jlne.ws/11wL3a1

Japan-Focused Hedge Funds Seen Boosting Assets 20% on Abenomics
Bloomberg
Japan-focused hedge funds may see their assets increase 20 percent this year on expectations that Prime Minister Shinzo Abe’s policies and stimulus measures will boost growth, according to Eurekahedge Pte.
jlne.ws/11wL1ii

Fewest Hedge Funds Invest in Gold Since 2010 as Assets Fall 31%
Bloomberg
The rout in gold that drove the metal into a bear market cut the number of hedge funds investing in bullion to the lowest level since 2010 as assets slumped 31 percent this year on losses and redemptions.
jlne.ws/11wL3a3

Providence pays $1.4 million in hedge fund fees
The Providence Journal
The City of Providence has paid nearly $1.4 million in hedge-fund fees on its pension investments over the past 16 months, according to city investment data. The Providence pension fund has $51 million, or 19 percent, of its $266 million portfolio in hedge funds.
jlne.ws/11wL3a4

For two hedge funds, SAC redemptions hit close to home
Reuters via Yahoo! News
By Katya Wachtel and Matthew Goldstein NEW YORK – Two small investment firms that manage money for SAC Capital Advisors have a lot at stake, as billionaire investor Steven A. Cohen moves to return about $4 billion to his outside investors.
jlne.ws/11wL1in

Metal Bulletin Likely to Introduce Auditing of Pricing
Bloomberg
Metal Bulletin Ltd., which has published metals prices for 100 years, is considering hiring an outside auditor amid heightened scrutiny of pricing mechanisms.
jlne.ws/11wL1io

Glencore Said to Be Hiring Four LNG Traders From Morgan Stanley
Bloomberg
Glencore Xstrata Plc is poised to hire four liquefied natural gas traders from Morgan Stanley in London and Singapore, said two people with knowledge of the move.
jlne.ws/11wL1ip

Banks & Brokers

Denmark Seeks to Pass Too-Big-to-Fail Bank Laws in Parts
Bloomberg
Denmark’s government is exploring the option of splitting proposed legislation for systemically important banks into smaller parts to ease its passage through parliament.
jlne.ws/11wL1iq

Pressure in Britain Over What to Do With Bailed-Out Banks
New York Times
The British government’s efforts to reduce its holdings in the Royal Bank of Scotland and Lloyds Banking Group may prove difficult.
jlne.ws/11wL1ir

Clearing & Settlement

UBS appoints Clearstream as primary ICSD for its global Investment Bank and Wealth Management businesses
UBS’ decision to consolidate the majority of its securities custody, settlement, and financing business at Clearstream as primary International Central Securities Depository (ICSD) follows an intensive 18-month assessment. The review included the global securities business of UBS’ Investment Bank and Wealth Management.
jlne.ws/11wL3a9

New services launched to support trading in VSTOXX derivatives
Effective today, the international derivatives market Eurex Exchange is offering new research tools via its website enabling interested investors to obtain a comprehensive insight into the world of analysis, valuation and trading of volatility derivatives. The VSTOXX Advanced Services offering is primarily aimed at portfolio managers, proprietary traders, client traders, and brokers, as well as risk managers and institutional investors, all of whom can hedge their portfolios much better with the volatility derivatives listed on Eurex Exchange.
jlne.ws/17r19q3

NASDAQ OMX NLX and SuperDerivatives partner to offer independent settlement pricing for interest rate derivatives
NASDAQ OMX NLX has partnered with SuperDerivatives to offer independent and transparent settlement pricing on its new London-based market for interest rate derivatives. Daily settlement prices and some final settlement prices for NLX futures products are supported by SuperDerivatives.
jlne.ws/14lePzJ

CME Clearing – Performance Bond Requirements – Equity Index and FX Outrights; Agriculture and Equity Index Inter-Commodity Spread Credits – Effective Friday, June 7, 2013
jlne.ws/11wL1iu

Indexes & Products

[TSE] ETF/ETN Monthly Report for May 2013
jlne.ws/11wL1iw

The Expert Indices Committee
jlne.ws/11wL1iy

Quarterly review AEX-Index family
jlne.ws/11wL1yO

Technology

MarketPrizm Hires Andy Slade To Enable Further Expansion In Asia
MarketPrizm, a leading provider of market data and trading infrastructure services announces the appointment of Andy Slade as Business Development Director for Asia-Pacific (ex-Japan), as the business continues to grow in the region.
jlne.ws/11wL1yQ

Interactive Data Announces API Delivery for Consolidated Feed
Marketwired via Yahoo! Finance
Interactive Data Corporation , a leading global provider of managed ultra-low latency infrastructure and market data services designed to facilitate electronic trading, today announced the availability of its Consolidated Feed through a new suite of application programming interfaces.
jlne.ws/11wL1yR

Enforcement

SEC Targets Bangkok Investor Over Smithfield Trades
JEAN EAGLESHAM – WSJ.com
Most investors in Smithfield Foods Inc. enjoyed an overnight 24.7% increase in the value of their shares after the giant U.S. pork producer announced its blockbuster $4.7 billion takeover by a Chinese rival on May 29.
jlne.ws/11wL3qr

SEC Warns Investors About Binary Options and Charges Cyprus-Based Company with Selling Them Illegally in U.S.; Release No. 2013-103; June 6, 2013
The Securities and Exchange Commission today warned investors about the potential risks of investing in binary options and has charged a Cyprus-based company with selling them illegally to U.S. investors.
jlne.ws/11wL3qu

CFTC Charges “Prediction Market” Proprietor Banc de Binary with Violating the CFTC’s Off-Exchange Options Trading Ban and Operating as an Unregistered Futures Commission Merchant
The U.S. Commodity Futures Trading Commission (CFTC) filed on June 5, 2013 a civil complaint in federal district court in Nevada charging Banc de Binary, Ltd. (Banc de Binary), a foreign company that held itself out as being headquartered on Wall Street, with violating the CFTC’s ban on off-exchange options trading by offering commodity option contracts to U.S. customers for trading, as well as soliciting, accepting, and confirming the execution of orders from U.S. customers.
jlne.ws/11wL1yV

ASIC commences proceedings against Wellington Capital
jlne.ws/11wL1yW

ASIC bans Murray Priestley of the Lifestyle Group
jlne.ws/11wL3qv

Prosecution appeal sees insider trader sent to jail
jlne.ws/11wL1yX

New Zealand’s Financial Markets Authority: Director Sentenced To Prison Term For Theft And False Statements
jlne.ws/11wL1yY

BCSC alleges that Vancouver Island man illegally advised hundreds of people and perpetrated fraud
jlne.ws/11wL3qy

Environmental & Energy

In a first, Surat to run emission trading scheme
The Times of India
SURAT: Industrial units of textile city Surat will become the first in India to run an emission trading scheme (ECS) locally.
jlne.ws/192akgS

Vietnam issues CO2 emission credits
VietnamNetBridge
The project monitoring report of Gold Standard organization showed that in the period from June 2010 to the end of 2012, the biogas program issued 510,952 emission credits, which meant that 510,952 tons of CO2 was reduced, thanks the project implementation in Vietnam. This is really an encouraging result for the 10-year implementation of the project.
jlne.ws/14BNLca

EU Proposes Lowest Allowed Limit for Imported Carbon Credits
Bloomberg
The European Union’s regulatory arm proposed to set the quota for international carbon credits at the lowest level allowed by law after imports aggravated a record glut of permits in the EU emissions-trading system.
jlne.ws/16NuU4Y

Asia-Pacific

Chinese exchange to launch PP resin futures
Plastics News
Dalian Commodity Exchange, which claims to be the world’s largest plastics futures market by trading volume, plans to launch polypropylene futures before the end of this year.
jlne.ws/11JpMWe

Dalian gas futures agreement
chinadaily.com
Dalian’s Commodity Exchange signed a strategic cooperation agreement with the China Gas Association (CGA) on gas futures research, on May 31, Dalian Daily has reported, whereby the two do research on national gas varieties and market trends to better services the industry and provide risk solutions for gas companies.
jlne.ws/15S2vqx

Japan Online Stock Trades at Record Amid Surging Volume
Toshiro Hasegawa & Anna Kitanaka – Bloomberg
Japan’s five largest online brokerages posted record trading in May amid surging equity volume as the nation’s shares rose to the highest levels since August 2008 before tumbling into a correction.
jlne.ws/11wL3qz

Singapore Online Rules Undercut Financial Hub Status, Group Says
Bloomberg
Singapore’s new rules licensing news websites undercuts its status as a financial hub, Human Rights Watch said, urging the city to withdraw regulations it says discourage independent comment.
jlne.ws/11wL1z1

SGX welcomes TEE Land to Mainboard
jlne.ws/17r1adv

HKFE Announces Margin Rates For Adjusted Hong Kong & China Gas Futures
jlne.ws/11wL1z2

HKEx Announces Temporary Holiday Risk Management Arrangements
jlne.ws/11wL3qC

HKEx Announces Market Makers And Margin Rates For A-share ETF Futures
jlne.ws/11wL3qD

HKEx Change In Senior Executive
jlne.ws/11wL3qE

First Read

People Moves – WILD Edition
Jessica Titlebaum – Orc Group
As mentioned Monday, here are a few people on the move that if you don’t know, you should be introduced to.

WILD Chicago Member Julie DeMatteo has joined RJ O’Brien as a Managing Director of Asset Management this week. She said that she joined the firm because its world class operational and risk management infrastructure excited her and she would be able to leverage it to expand the firm’s asset management business. She is looking forward to developing additional alternative investment vehicles and partnering with a variety of distribution channels to bring those products to market.

Julie joins RJ O’Brien from Barclays Capital where she served as Director of Prime Services for three years. Prior to that, Julie was the Executive Director of Business Development at AlphaMetrix. She served as President and CEO of UBS Managed Fund Services before that. She also spent time in legal and compliance roles at UBS Securities, ING Securities and Bank of America.

* * * * *

WILD Board Member Katherine Murray was appointed Brand Strategist at Artisan Partners. Artisan Partners is an independent investment management firm focused on providing high value-added, active investment strategies to sophisticated clients globally. As part of the firms marketing and communications team, Katherine will oversee Artisan’s global brand strategy.

Katherine was most recently Director of Business Development at Dean Media Group in Chicago. She also spent time at Patsystems as the Global Head of Marketing and at US Bank where she worked as a Sales and Relationship Manager.

As if having a baby recently wasn’t change enough, Katherine has moved to Milwaukee for this new role.

* * * * *

And a WILD London Steering Committee Member who is literally on the move… After breaking her pelvis in six places in a car accident and having to learn to walk again, Samantha Page from Bank of America Merrill Lynch, is training for the Chicago Marathon this October.

Sam has a personal connection to Chicago as her father trained as a commodities broker in the soya bean pit at the Chicago Board of Trade. He worked for Merrill Lynch Pierce Fenner and Smith. Samantha proudly displays his framed business card on her desk at work.

Samantha will be running the Chicago Marathon to raise money for Futures for Kids, an organization founded by members of the futures and options industry to give back and help children’s charities. She has raised over 1100 British Pounds. If you are interested in donating, please click here: jlne.ws/ZliM6P

++++

Martin Abbott to step down as HKEx’s Co head of Global Markets and LME’s CE
Hong Kong Exchanges and Clearing Limited and The London Metal Exchange announce today that Martin Abbott, HKEx’s Co-head of Global Markets and LME’s Chief Executive, has tendered his resignation from the HKEx group. Mr Abbott has agreed to stay in his current positions until the end of this year in order to facilitate a smooth and orderly transition.
jlne.ws/18699h3

++++

CME Clearing Europe’s Lamb to Retire, Succeeded by Lee Betsill
Nandini Sukumar – Bloomberg
Andrew Lamb, chief executive officer of CME Group Inc.’s European clearinghouse, will retire on July 31, four years after joining the world’s biggest futures exchange. Lee Betsill, chief operating officer and managing director of CME Clearing Europe, succeeds Lamb. During his career, Lamb was also CEO of LCH.Clearnet Ltd., advised IntercontinentalExchange Inc. and worked at the Bank of England.
(via email)

++++

Man Group shares tumble after steep losses by flagship AHL fund
Sam Jones, Hedge Fund Correspondent – FT.com
Shares in Man Group, the world’s second largest hedge fund, tumbled as much as 15 per cent in London after steep losses for the company’s flagship fund. Man’s $16.4bn “black box” fund AHL, which uses complex computer models to spot and ride trends in hundreds of markets around the world, lost more than 10 per cent of its value in May and is down more than 12 per cent from a peak earlier this year.
jlne.ws/17r18SX

++++

TABB Says EMIR Requirement for Improved Trade Reporting is Leading Move to Automated Workflows, Transforming European OTC Equity Derivatives Markets
Business Wire via Yahoo! Finance
Change is underway in the European OTC equity derivatives markets. Greater transparency is being created from the necessity of improved clearing, collateral and trade reporting driven by EMIR Regulation 648/2012, which became effective March 2013.
jlne.ws/17r17yo

++++

SEC Approves NYSE Proposal to Temporarily Restore Stock-Volatility Curbs
Chris Dieterich and Jacob Bunge – Dow Jones
Regulators approved the New York Stock Exchange‘s proposal to temporarily restore proprietary stock- volatility curbs after a series of violent drops in high-profile stocks.
jlne.ws/ZRFMvq

++++

Platts, rivals ask for exemption from benchmark regulations
Reuters
Leading commodity price reporting agencies have called on global regulators to exempt them from new rules aimed at preventing financial benchmark manipulations, arguing that it would reduce liquidity and transparency in markets such as oil.
jlne.ws/15AKSKY

***JT: All those competitors should meet at Benchmark for a pow-wow and to reduce the bar’s liquid offering.

++++

Tackling European trade reporting requirements
Dan Barnes – FOW
Derivatives traders are facing new and tighter deadlines for reporting trades, which will impact the rest of their post-trade processing. From September 23, the European and Markets Infrastructure Regulation (Emir) will demand that credit and interest rate derivative trades are reported to a trade repository or to the European Securities and Markets Authority, with other financial derivatives being reported from January 1 2014. Reporting of energy derivatives to the Agency for the Cooperation of Energy Regulators (ACER) is expected to start in January 2014.
jlne.ws/17r199f

++++

Asia exchanges set for overhaul as competitiveness wanes
Risk.net [subscription/trial only]
Recent high-profile outages on Asian exchanges have raised questions over the robustness of the region’s trading infrastructure. Is the solution greater competition or an increased spend on technology?
jlne.ws/17r199h

++++

Quant hedge funds hit by US bonds sell-off
Sam Jones – FT.com
Some of the world’s biggest quant hedge funds have suffered steep losses in the past two weeks following the sell-off in global bond markets. So-called “CTAs”, which use computer models to automatically spot and ride market trends, were caught out as investors anticipated an end to the Federal Reserve’s measures to stimulate the US economy, triggering a global rout in fixed income investments.
jlne.ws/17r17OK

***JM: A “commodity trading advisor” CTA isn’t a hedge fund, nor is it defined as a company that trades computer models or rides trends. Who’s so-calling them that, anyway? We need to talk.

++++

Intellectual Property Exchange International Launches First Offering
Intellectual Property Exchange International, Inc., the world’s first financial exchange for licensing and trading intellectual property rights, today launched its first Unit License Right contract offering. During its first public web presentation held at 10 a.m. CT, IPXI unveiled details about the first-of-its-kind offering covering a portfolio of more than 600 patent assets – including 225 granted patents globally – related to organic light-emitting diode technologies for display screen applications.
jlne.ws/17r17yq

***JT: Congrats IPXI on the launch! I was just out to lunch with Danijel Medic and we were talking about your former Chief Technology Officer Jessica Zemple. She was one of the first women I ever interviewed in derivatives.

++++

Socially conscious mutual funds are quickly growing
Pittsburgh Post-Gazette
A growing number of mutual funds cater to investors who strive to generate a financial return as well as improve the world in some way.
jlne.ws/17r17OL

***JT- We are out to change the world.

++++

How to Turn Your Generosity Into Philanthropy
MELISSA KORN – WSJ.com
Before business school students set out to master capitalism, Stanford University lecturer Laura Arrillaga-Andreessen teaches them how to master philanthropy.
jlne.ws/17r17ON

++++

OptionsCity Chicago Algorithmic Trading Conference: for Developers, by Developers
June 12, 2013, W Chicago – City Center
1:00pm – 6:00pm sessions
6:00pm – 8:00pm networking reception

We invite you to register for an afternoon of sessions detailing the hottest topics and trends shaping the financial technology community. Expand your knowledge base at versatile presentations and interactive panel discussions from leading algorithmic trading and development experts. Harness cutting-edge ideas from industry peers and take an exclusive look inside Automated Trader’s Global Trading Trends Survey. The day ends with a networking reception.

Complimentary passes are available for OptionsCity customers. Contact Sarah McNabb at smcnabb@optionscity.com.

For complete details and to register, visit jlne.ws/11mktmS

***JT: Hi Hazem, even guest editors have to play fair (grin) sometimes!

++++

Informatica Seminar: Ultra Messaging Low Latency Developer Forum
Wednesday, June 12, 2013, 1:00 pm – 6:00 pm CT
Mid-America Club, 200 East Randolph Street, 80th Floor, Frank Lloyd Wright Room, Chicago, Illinois 60601

Attend the 2013 Ultra Messaging Low Latency Developer Forum to hear the secrets behind the newest record-setting low latency architecture from the people who wrote it and from the people who build high-performance apps with it every day. Register today and you’ll learn…

Innovative ways developers and architects are using UM in their organizations
Lessons our developers have learned in building UM
Performance tuning secrets for developers of UM applications
Recent and future UM developments that your organization can use

Talks will include details on the development of our record breaking IPC performance improvements and new features like dynamic routing between topic resolution domains and topic-level monitoring GUI.

For complete details, visit jlne.ws/13cMbhe

++++

MarketsWiki.tv

Campbell’s Tom Lloyd Talks Managed Futures Mutual Funds and JOBS Act
MarketsWiki.tv

Tom Lloyd is general counsel at Campbell & Co., a Baltimore, MD-based provider of absolute return investment management, specializing in systematic managed futures and equity market-neutral strategies. Lloyd, a former managing director for Deutsche Bank Alex Brown, joined Campbell in 2005 to head the legal and compliance functions of the firm and its subsidiaries. In addition, Lloyd oversees Campbell’s fund administration function and, in November 2012, he was named to the firm’s board of directors.

Lloyd spoke with John Lothian News Editor-at-Large Doug Ashburn about the emergence of managed futures mutual funds as an additional investment choice in the alternatives space, and explained some of the logistics behind setting up such a fund and carrying out the accounting, reporting and marketing functions. He closes with a discussion of the JOBS Act and how possible changes to general solicitation and advertising could affect Campbell’s marketing strategy.

Watch the video »

MarketsWiki

MarketsWiki Page of the Day
Wayne Luthringshausen
jlne.ws/at4Vjg

MarketsWiki Recent Updates

People

Ian Axe; Roger Liddell

Companies, Organizations and Groups

LME Clear; LCH.Clearnet Group Ltd.; Drexel Burnham Lambert; Eris Exchange; BIDS Trading L.P

Miscellaneous

Co-location; Taxation

Statistics

40,264,515 pages viewed, 7,511 articles, 159,856 edits
MarketsWiki Statistics

Lead Stories

SEC moves to tighten regulations on money market funds
By Sarah N. Lynch – Reuters
A portion of the $2.6 trillion money market fund industry would be required to fundamentally change how it prices its shares under proposals issued by U.S. regulators on Wednesday to reduce the risk of abrupt withdrawals. But the Securities and Exchange Commission plan was not as strict as some market players feared and included an industry-favored provision for funds to charge withdrawal fees and delay return of funds to customers during times of financial distress.
jlne.ws/17r199n

LME sets date for clearing house launch
Philip Stafford – FT.com
The London Metal Exchange’s new clearing house is set to go live in September next year after the world’s largest metals exchange agreed a date to move its contracts from its current service provider LCH.Clearnet.
jlne.ws/17r17OQ

Trading on NYSE Euronext starts an hour late
Neil Dennis – FT.com
Trade in several of Europe’s top stock exchanges failed to start on time on Thursday after a technical problem with NYSE Euronext’s systems.
jlne.ws/17r199p

Regulators Ramp Up Scrutiny of ‘Dark Pools’
SCOTT PATTERSON – WSJ.com
Regulators are ramping up scrutiny of an opaque corner of the market where stocks change hands in the dark. The Financial Industry Regulatory Authority, Wall Street’s self-regulatory body, last month sent 15 examination letters to operators of “dark pools”—lightly regulated, off-exchange trading venues that have been a rising concern for regulators and some investors as more activity shifts away from exchanges.
jlne.ws/17r17OW

Unraveling Monday’s Early Data Release to Traders
CNBC
Monday’s market-moving ISM manufacturing data were inadvertently sent early to a select group of high-frequency traders, many of whom immediately traded on the information before it was available to the wider market, CNBC has learned.
jlne.ws/17r17OX

Reuters Admits It Accidentally Leaked Key Market Data To High Frequency Traders On Monday
Zero Hedge
Back on Monday, following the huge miss in the Manufacturing ISM, in collaboration with Nanex, we exposed yet another instance of blatant headline data frontrunning in “15 Milliseconds Of HFT Fame: Watch Today’s Early Leak Of The ISM Print” where we showed aggressive trading amounting to tens of millions in notional contracts ahead of the 10am release of the key economic indicator.
jlne.ws/17r185b

Fed Grants Foreign Banks Leeway in Dodd-Frank Swap Pushout Rule
Silla Brush – Bloomberg
Foreign-based banks won leeway in Dodd-Frank Act requirements to separate swaps trading from their U.S. branches under a Federal Reserve policy released yesterday.
jlne.ws/17r199t

CFTC sues US Bank over Peregrine Financial fraud
Associated Press via Yahoo! News
The Commodity Futures Trading Commission on Wednesday accused U.S. Bank National Association of illegally using an investment firm’s funds to back loans to that company’s owner, who was later convicted of stealing millions from his investors.
jlne.ws/17r199u

Brussels proposal seeks to hand Libor to European body – FT
Reuters via Yahoo! Finance
The European Commission is going to suggest stripping London of its control over the scandal-hit Libor lending rate and hand over supervision to the Paris-based European Securities and Markets Authority (ESMA), the Financial Times said.
jlne.ws/17r199w

Exchange operator Direct Edge to open Chicago data center Sept. 3
Samantha Bomkamp – Chicago Tribune
Direct Edge, the nation’s third-largest exchange operator, is preparing to open disaster recovery facilities in Chicago on Sept. 3, the latest in a long-running, industrywide effort to get backup centers further away from trading centers on the East Coast.
jlne.ws/17r19pM

I.M.F. Concedes Major Missteps in Bailout of Greece
NYTimes.com
The International Monetary Fund released an internal report on Wednesday that sharply criticizes its first bailout program for Greece, the latest in a series of partial mea culpas as the fund reassesses the austerity that it has insisted on for ailing, debt-plagued economies.
jlne.ws/17r19pP

Regulatory

Quick View: The critical hour for Europe’s trading rules
Philip Stafford – FT.com
Could momentum be building to finalise Europe’s long-delayed markets legislation, colloquially known as Mifid? The awkward five-letter acronym – meaning Markets in Financial Instruments Directive – that covers trading in the region has become something of a problem child in Brussels.
jlne.ws/17r185i

SEC Proposes Money Market Fund Reforms
Press Release
The Securities and Exchange Commission today voted unanimously to propose rules that would reform the way that money market funds operate in order to make them less susceptible to runs that could harm investors.
jlne.ws/17r185k

Opening Statement At The SEC Open Meeting By Chairman Mary Jo White
jlne.ws/17r19pR

Opening Statement at the SEC Open Meeting By SEC Chairman Mary Jo White – Money Market Funds Reform
jlne.ws/17r185l

Statement At SEC Open Meeting – Proposed Rules Regarding Money Market Funds By SEC Commissioner Daniel M. Gallagher
jlne.ws/17r19pW

Striving To Restructure Money Markets Funds To Address Potential Systemic Risk By SEC Commissioner Luis A. Aguilar
jlne.ws/17r185m

Statement At Open Meeting Regarding A Rule Proposal On Money Market Fund Reform By SEC Commissioner Troy A. Paredes
jlne.ws/17r19pX

New Zealand’s Financial Markets Authority Update 6 June 2013
jlne.ws/17r19q0

Exchanges & Trading Facilities

New services launched to support trading in VSTOXX derivatives
Effective today, the international derivatives market Eurex Exchange is offering new research tools via its website enabling interested investors to obtain a comprehensive insight into the world of analysis, valuation and trading of volatility derivatives.
jlne.ws/17r19q3

NASDAQ OMX Appoints New President For NASDAQ OMX Stockholm And Head Of Nordic Fixed Income And NASDAQ OMX Baltics
The Nasdaq OMX Group, Inc. today announced that Magnus Billing has been appointed President of NASDAQ OMX Stockholm. Magnus Billing has been with NASDAQ OMX for the last 12 years, and since 2008 as Senior Vice President and Chief Legal Counsel Europe.
jlne.ws/17r19Gh

NASDAQ OMX May 2013 Volumes
jlne.ws/17r185p

ASX Group Monthly Activity Report – May 2013
jlne.ws/17r19Gl

ASX Compliance Monthly Activity Report – May 2013
jlne.ws/17r19Gn

Irish Stock Exchange Reports 35% Increase In Pre-Tax Profits For 2012
jlne.ws/17r185r

EEX Trading Results in May
In May 2013, the total volume traded in power derivatives on the European Energy Exchange (EEX) amounted to 66.9 TWh compared to 68.8 TWh in May 2012. The Power Derivatives Market volume contained 29.4 TWh from OTC clearing.
jlne.ws/17r185s

Warsaw Stock Exchange Derivatives Market In May 2013
jlne.ws/17r18lG

Ljubljana Stock Exchange: Monthly Statistical Report May 2013
jlne.ws/17r18lJ

CME Group Chairman Emeritus to Speak at Sandler O’Neill Conference, June 7
CME Group announced today that Chairman Emeritus Leo Melamed will be a keynote speaker on the topic “A Look-Back at the U.S. Exchange Development” at the Sandler O’Neill Global Exchange and Brokerage Conference luncheon, to be held at Le Parker Meridien, New York, on June 7.
jlne.ws/17r19Gr

TMX Group CFO Michael Ptasznik to present at the Sandler O’Neill Global Exchange & Brokerage Conference
jlne.ws/17r18lM

SIX To Manage All Of UBS AG’s Registered Mortgage Deeds – New Service Allows Efficiency Gains When Processing Mortgage And Land Register Transactions
jlne.ws/17r18lN

[CBOE] Restrictions on Transactions in Affymax, Inc. (AFFY)
jlne.ws/17r18lO

[CBOE] New Order Designations
jlne.ws/17r18lQ

Top 20 Largest Consolidated Short Position Report – May 31, 2013
jlne.ws/17r18lU

NZX May 2013 Shareholder Metrics
jlne.ws/17r18lY

Hedge Funds & Managed Futures

CQS Said to Plan Equity Hedge Fund With Ex-SAC Manager Morant
Bloomberg
CQS U.K. LLP, the $12 billion hedge- fund firm founded by Michael Hintze, is looking to start an equity fund as the company expands beyond its focus on credit investments, said two people familiar with the matter.
jlne.ws/17r18Cf

Gottex Fund Cuts Bets on Small Japanese Companies After Rally
Bloomberg
Gottex Fund Management Holdings , which allocates $6.4 billion to hedge funds, has cut its largest Asia fund’s bets on small Japanese companies whose share prices may fall more sharply in the market correction.
jlne.ws/17r19WM

Family Offices, the New Hedge Funds
CNBC
Many hedge funds have turned their hedge funds into family offices to benefit from less regulation. Could SAC be next?
jlne.ws/17r18Ck

SAC Capital to remain a hedge fund amid client redemptions, but it’s too early to claim victory
Quartz via Yahoo! Finance
SAC Capital, under a cloud of insider-trading allegations, told employees it will survive as a hedge fund. In an email to employees sent yesterday, SAC President Tom Conheeney said the withdrawals of client money were “significant” but the hedge fund still has a stable capital base, according to a Bloomberg report.
jlne.ws/17r18Ct

As Investors Bail Out, SAC Shows a Brave Face
New York Times
The hedge fund, which is under investigation for insider trading, told employees in an e-mail that it was stable despite a surge in investor withdrawals.
jlne.ws/17r1bxS

Top-performing Ivy Cundhill fund focuses on Europe
Reuters via Yahoo! Finance
Over the last year, fund manager Andrew Massie has made his investors happy by buying what he calls “unloved” stocks. Now, he’s trying to keep them satisfied with a new crop of spurned investments: Italian and Greek companies, South Korean exporters and Japanese gaming stocks.
jlne.ws/17r1bxT

Towers Watson’s pooled funds. A hedge by any other name…
Harriet Agnew – Financial News
In Romeo and Juliet, William Shakespeare’s tale of “star-cross’d” lovers, the heroine muses: “What’s in a name? That which we call a rose, by any other name would smell as sweet.”
jlne.ws/17r1bxV

AlpInvest’s Doeksen with Carlyle ‘for the long term’
Dan Dunkley – Financial News
Volkert Doeksen, the chairman and managing partner of Dutch private equity fund-of-funds AlpInvest, has insisted the firm’s management will remain with parent group Carlyle “for the long term”, despite selling its remaining 40% stake to the buyout group this week.
jlne.ws/17r1bxX

Worrying about volume: Volume is not a reliable leading indicator
Mark Hulbert, MarketWatch
Which comes first, price or volume? That question is at the heart of a debate that takes on special urgency every year about this time, as traders in increasing numbers go on their summer vacation: Is trading volume a leading indicator of imminent market weakness?
jlne.ws/17r19WR

Banks & Brokers

JPMorgan Joins Samurai Bond Boom With Biggest Sale Since October
Bloomberg
JPMorgan Chase & Co. , the biggest U.S. lender, raised 105.6 billion yen in the largest sale of Samurai bonds since October as overseas borrowers flock to a market flush with stimulus cash.
jlne.ws/17r1by2

Thain, in Interview, Reflects on Merrill and CIT
ANDREW R. JOHNSON AND AARON LUCCHETTI – WSJ.com
Regrets? John Thain has one. “I wouldn’t have taken the Merrill job,” he said in an interview. “I think that’s probably the single biggest thing.”
jlne.ws/17r19WT

Clearing & Settlement

Prime brokers look to capitalise on central clearing drive
Risk.net
Prime broking covers a variety of functions provided mainly to hedge funds including global custody – which also covers clearing, and asset servicing – as well as securities lending, financing and managing margin exposure. Customised technology also provides clients with portfolio reporting needed to effectively manage money and the prime broker is often the contact point between other broker-dealers.
jlne.ws/17r19WV

LME Clear And LCH.Clearnet Agree Migration Date For LME Clearing Services
The London Metal Exchange (LME) and LCH.Clearnet Ltd (LCH.Clearnet) have reached an agreement to migrate LME contracts currently cleared by LCH.Clearnet to LME Clear. Both parties have agreed to migrate the exchange contracts to LME’s clearing platform on 22 September 2014, in order to give members and the market time to implement new EMIR regulations and to better manage an already busy period of change in the market.
jlne.ws/17r1by7

Indexes & Products

Changes To MDAX And SDAX – Deutsche Boerse Reviewed Index Composition – Changes Are Effective On 24 June 2013
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SEMI-ANNUAL REVIEW OF OMX COPENHAGEN 20 CAP INDEX
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TSE Publishes Calculation Methodology for JASDAQ Indices
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S&P Dow Jones Indices: Dow Jones-UBS Commodity Index: Commodities Fall Short In May
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FTSE China Index Series Quarterly Review
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Methodology Of The Moscow Exchange Indices Calculation Has Been Registered
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IndexIQ Announces May 2013 Performance of Its IQ Hedge Family of Investable Benchmark Hedge Fund Replication Indexes
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ETF Closures Strike Again: UBS Shuttering Seven Products
Zacks via Yahoo! Finance
UBS is reducing its ETN lineup by seven, getting rid of a handful of unpopular products.
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Technology

Maitland Selects SunGard’s Investran To Boost Operational Efficiency For Global Growth
Maitland, the largest third party administrator in South Africa, has selected SunGard’s Investran. Investran will help to automate the investment accounting process and investor reporting operations. The automation of key processes will help increase Maitland’s business efficiency to better service its clients and enable agile growth into new markets.
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Enforcement

SEC Charges Penny Stock Company and CEO for Illegal Stock Offering and Insider Trading
The Securities and Exchange Commission today charged a microcap company that was ensnared in an SEC trading suspension proactively targeting questionable penny stocks, and also charged the CEO who illicitly profited from selling his shares while investors were unaware of the company’s financial struggles.
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CFTC Files Complaint against U.S. Bank, N.A. Alleging Unlawful Use of Peregrine Financial Group, Inc.’s Customer Segregated Funds and Violation of Customer Segregation Laws
The U.S. Commodity Futures Trading Commission (CFTC) today filed a Complaint in the U.S. District Court for the Northern District of Iowa against U.S. Bank National Association (U.S. Bank) for unlawfully using and holding Peregrine Financial Group, Inc.’s (Peregrine) customer segregated funds.
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FCA fines investment firm Sesame £6m for failing to ensure advice given to customers was suitable and for poor systems and controls
The Financial Conduct Authority (FCA) has fined Sesame Limited (Sesame) £6,031,200 for two sets of failings: failing to ensure that investment advice given to its customers was suitable; and failings in the systems and controls that governed the oversight of its appointed representatives (ARs).
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November trial date set for ex-hedge fund manager
Associated Press via Yahoo! News
A judge on Wednesday set a November trial date for the insider trading trial of a former hedge fund portfolio manager for SAC Capital Advisors. Mathew Martoma is accused of earning $9 million in bonuses after persuading a medical professor to leak secret data from an Alzheimer’s disease trial between 2006 and 2008.
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AMF cautions about offers from Vilaron Corporation and Simon Vodovos
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Environmental & Energy

Power companies want help on prices to keep clients in Europe
Reuters
Europe’s squeezed utility firms say they cannot cut prices to stop their big industrial clients moving to the United States, where fuel costs around a quarter as much.
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Shell CEO Calls for Europe Carbon Reduction Target Extension
Bloomberg
Royal Dutch Shell Plc Chief Executive Officer Peter Voser said Europe needs to extend its targets for curbing greenhouse gases and promoting renewable energy by a decade through 2030.
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German utility RWE backs 40 percent carbon cut
Reuters
The European Union should aim for a 40 percent cut in carbon emissions for 2030 and strengthen its emissions trading scheme, but steer clear of a fixed carbon price, the chief executive of German utility RWE AG said.
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Asia-Pacific

SGX welcomes TEE Land to Mainboard
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Shenzhen Stock Exchange Market Bulletin 3 June,2013 – Issue 3
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Frontier Markets

NCDEX liberalizes Algo norms to attract more participation
Business Standard
Faced with a drastic decline in business, the National Commodity& Derivatives Exchange, India’s largest agri – centric commodity derivatives trading platform, has liberalized its algo trading norm to catch traders’ active interest in this segment.
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Goldman Breaks Drought With Saudi Property Bond: Islamic Finance
Bloomberg
Goldman Sachs Group Inc. , whose shariah-compliant bond program was questioned by Islamic scholars in 2011, led its first sukuk in more than three years after helping a Saudi property developer raise $450 million.
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Borsa Istanbul Equity Market And Emerging Companies Market Trading Hours Change
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Palestine Exchange Monthly Investor Newsletter – May 2013
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