The CFTC declares itself not yet ready to vote on who gets to be a swap dealer and live with extra regulation. The Egyptian Exchange posts the best results worldwide so far for the year, though there is still some time left for others to challenge that mark in 2012. JPMorgan and HSBC are fingered as lawbreakers by the singing canary bank of the LIBOR probe in Canada. In today’s top box, John Marshall Law School lends its support to the newsletter; Jon Matte includes his FX commentary from yesterday; and you’ll find the surprising answer to the question, “What’s the world’s most-traded derivatives contract?” (Hint: it’s not traded at the Egyptian Exchange)
Observations – Statistics – Commentary
John Marshall Becomes JLN Advertiser
John Lothian News is pleased to welcome The John Marshall Law School and their Center for International Law as advertisers on the www.johnlothiannewsletter.com website. John Marshall is advertising their April 17, 2011 event, Derivatives: The Changing Legal and Compliance Landscape, on the John Lothian Newsletter website.
Here are the details:
Date: Tuesday, April 17, 2012
Time: 8 a.m. – 5 p.m.
Cost: General Registration: $125; Government, Judicial or Academic Registration: $75; John Marshall Student Registration: contact Virgina Russell at firstname.lastname@example.org for waiver
CLE Credit: Approx. 5 Hours
Food: A light breakfast and a lunch will be provided.
Please register by April 10, 2012 at http://jlne.ws/yCnRWl
Date: February 15, 2012
The Trustee will comply with all required Form 1099 reporting. The above post is wrong, concerning the MF Global Inc Trustee and 10092. Below is the information from the Trustee’s website (mfglobaltrustee.com), which is where accurate and update information can be found On January 31, 2012, the Trustee requested a 30-day extension for the filing and mailing of Forms 1099-MISC, 1099-INT, and 1099-DIV. On February 15, 2012, the Trustee requested a 30-day extension for the filing and mailing of Forms 1099-B. The Trustee will issue an announcement on his website on the date that Forms 1099 are mailed. If you have a question about a Form 1099, you may contact the Trustee’s 1099 call center hotline at 1-866-692-5639. The IRS offers guidance for persons who wish to file a tax return in the absence of one or more Forms 1099 at http://www.irs.gov/newsroom/article/0,,id=106530,00.html.
Posted by Kent Jarrell spokesman for James Giddens, Trustee for the Liquidation of MF Global Inc.
MF Global Collapse: As Tax Deadline Nears, Farmers With MF Global Accounts Struggling To Determine Earnings
By Tom Polansek – Reuters
With the tax man breathing down his neck, Ohio farmer Tony Rohrs is scrambling to figure out how much money he made last year in an account at MF Global. Thousands of former clients of the failed brokerage, including farmers, cattle ranchers and investors, have not yet received tax forms that detail their profits and losses, preventing them from preparing accurate returns for the Internal Revenue Service ahead of a rapidly approaching deadline.
Anova Technologies brings the fastest exchange connectivity to the CBOE
Anova Technologies, a custom optical engineering firm, will now offer ultra-low latency connectivity between 350 Cermak and 400 S Lasalle, bringing a key gateway to NY/NJ options exchanges and the CBOE into the ultra-low latency loop. As is standard, Anova’s path will displace the available offerings by providing a significant speed advantage to its clients.
Google carrying real-time data from EU exchanges
Google says it’s now carrying real-time quotes from major stock exchanges in Britain, Italy and Germany.
JLN FX Newsletter: Where are the bailout party hats?
Jonathan Matte – JLN
The bailout of Greece is done. All hail the bailout!
The euro, tapped on the knee, responded by rising a fair amount in response to the news. Yes, that’s nice enough, but much of the analysis and reaction suggest that the rise is less about optimism and celebration, and more about extremely short positions being trimmed to “still pretty short”.
So why isn’t anybody celebrating? The debt relief package certainly doesn’t rank as a defeat for anybody. Everybody worked hard to create this solution (as long as you also include “political blustering” as work), and what they got is more or less what was hoped for.
I see two simplistic explanations for this lack of a victory march.
First, the solution is more like the uncertain amputation of a suspect limb than a miraculous surgery to cure the patient. There’s no assurance that Greece will recover at a reasonable pace. “Austerity” is a pleasant word for a pretty awful situation. People are being laid off in droves, depriving the government of a tax base, reducing the goods and services being produced, and increasing pressure on the government to provide support services. There’s a lot of human fear and misery, which leads to protests against the government, which in turn creates instability and bureaucratic second-guessing that harms the country’s ability to decisively progress.
For the rest of the commentary and ongoing coverage of the FX sector, visit the JLN FX website at http://jlne.ws/x2H6Fm
Swiss exchange operating chief quits
Tim Cave – Financial News
The Six Swiss Exchange, Switzerland’s national stock market, has lost one of the most senior members of its management team, after a year of mixed fortunes for the Alpine bourse.
Death of the most-traded derivative?
Tom Osborn – Financial News
Where do you think the world’s most-traded derivatives contract is located? The US, surely? And if not the US, then Europe perhaps? In fact, it is neither. Just eight years after it was launched, the Korea Exchange’s Kospi 200 Index option is traded an average of 14.8 million times a day. That’s not just a lot; it is an enormous amount.
After they leave CFTC, commissioners find work quick
By Brian Scheid – Platts
Earlier this month, the Washington, DC law and lobbying giant Patton Boggs announced that recently retired Commodity Futures Trading Commission member Michael Dunn had joined the firm as a senior policy adviser. The announcement was interesting, considering that Dunn had not discussed his post-CFTC career plans publicly, but was certainly not a shock given the post-agency paycheck choices of nearly every commissioner who left the CFTC since it was created by Congress in 1974.
OPTIONS INDUSTRY COUNCIL ANNOUNCES INVESTOR EDUCATION DAY IN ATLANTA MARCH 10
The Options Industry Council (OIC) today announced its first 2012 Investor Education Day (IED) scheduled for March 10 in Atlanta. New for the Atlanta event, OIC has adjusted the format for the full day event, offering two different tracks for attendees based on their investment experience and skill level – Options Basics or Advanced Strategies. While Options Basics will teach fundamentals, strategies to get started and the risks/rewards of trading; Advanced Strategies will focus on concepts such as butterflies, condors and the Greeks.
There is no charge to attend, however, advanced registration is required. Those interested in attending can obtain schedule and location details and also register through OIC’s website, , or by calling 1-888-OPTIONS (1-888-678-4667).
NIRI and Corporate Board Member Launch Investor Relations Video Webcast Series
NIRI today announced its new “IR Today” webcast series designed to educate corporate officers and investor relations (IR) professionals on current responsibilities and issues that impact their relationship with the board of directors and shareholders. The videos are accessible on the NIRI website (www.niri.org/media/videos) or on the NIRI YouTube channel (www.youtube.com/NIRINational). Please let us know if you have any questions or comments.
MarketsWiki Page of the Day
Douglas L. Bry
MarketsWiki Recent Updates
Companies, Organizations and Groups
19,721,742 pages viewed, 6,704 articles, 137,255 edits
CFTC delays vote on swap dealer designation
By Gregory Meyer in New York – Financial Times
A vote to draw a line under the biggest traders in US derivatives markets, subjecting them to extensive new rules, has been cancelled in the latest delay to reforms passed in response to the financial crisis.
Egyptian bourse leads world this year
By Robin Wigglesworth, Heba Saleh and Alice Ross – Financial Times
What is the best performing stock market in the world this year? The unlikely answer is Egypt’s colonial-era art nouveau bourse, the oldest in the Arab world.
JPMorgan, HSBC Implicated by Informant Bank in Canada Libor Case
JPMorgan Chase & Co., Deutsche Bank AG and HSBC Holdings Plc are among at least seven firms accused by another bank of participating in a conspiracy to manipulate the price of derivatives worldwide for more than three years.
Under Volcker, Old Dividing Line in Banks May Return
By STEVEN M. DAVIDOFF – NY Times
The Volcker Rule, and its limitations on bank trading, may have the unintended effect of dividing the world back into investment banks and commercial banks. The unusual twist here is that Goldman Sachs and Morgan Stanley may end up stuck on the wrong side of the fence, treated under the law as commercial banks instead of the investment banks they once were.
Tangled in diplomacy, EU struggles to frame new financial rules
Reuters via Yahoo! News
BRUSSELS (Reuters) – When it takes six hours to draft a single sentence in a 100-page document, you know things are moving slowly. In meeting rooms of embassies across Brussels, diplomats are haggling over the finer details of dozens of reforms more than four years after the financial crisis that devastated European banks and triggered the euro zone’s struggle with debt. …
Greece races to meet bail-out demands
By Joshua Chaffin and Kerin Hope in Athens – Financial Times
The Greek government is racing to complete a lengthy checklist of reforms demanded by international lenders before the end of February to unlock a E130bn bail-out agreed in the early hours of Tuesday morning after months of high-stakes bargaining.
Environmental Trading News
China Would Regulate UN Carbon Credits at Home, Exchange Says
China probably won’t allow United Nations carbon credits in its cap-and-trade program unless they are approved by a domestic regulator, according to an official at the Shanghai Environment & Energy Exchange.
**RKB — The official explains: It will be something like a local version of the United Nations Executive Board, which oversees the Clean Developments Mechanism, known as the CDM. Projects approved under the CDM will be easier to be used as domestic offsets, but they will still need to go through the local process.
**JK – Bureaucracy, meet more bureaucracy.
European Carbon Permit Price Rally ‘Won’t Last,’ UBS Says
The current rally in European Union carbon permits will come to an end in April, said UBS AG. (UBSN). The “carbon crash” will continue because the market is oversupplied by 2 billion metric tons and companies may sell allowances once they realize how few they need, Per Lekander, an analyst at the bank in Paris, said today by e-mail. “Enjoy the carbon rally while it lasts – it won’t,” he said yesterday in a research note.
Russia Says EU Carbon Trading Rules for Foreign Airlines Are ‘Premature’
The extension of the European Union’s emissions trading system to international airlines is “premature” and could lead to higher ticket prices and a slump in demand for flights, according to Russia’s government.
For more environmental trading news, subscribe to the Environmental Markets version of the John Lothian Newsletter edited by Jim Kharouf.
Visit http://www.jlnenvironmental.com to subscribe.
Exchange & ECN News
Record Open Interest In LME Cobalt Marks Two-Year Anniversary Of Minor Metals Contracts
The London Metal Exchange (LME) announces record market open interest in LME Cobalt two years after the launch of its minor metals contracts. LME Cobalt volumes remained strong in 2011, with 14,574 lots traded since launch, the equivalent of $540 million. LME Molybdenum traded 1,103 lots (6,618 tonnes), the equivalent of $227 million over the same period.
Valuing the London Metal Exchange
By Jack Farchy – Financial Times
What price the London Metal Exchange? With the 135-year-old exchange’s board meeting on Thursday to judge the first round bids, that will be the question on everyone’s mind – particularly the shareholders of CME Group, ICE, NYSE Euronext and the other four or so companies that are bidding.
CME doubles stake in Dubai bourse
By Hal Weitzman in Chicago – Financial Times
CME Group is doubling its stake in the Dubai Mercantile Exchange (DME), a strong sign of support for the Middle Eastern exchange’s attempt to establish a new global benchmark for oil futures.
Irish Stock Exchange And Malta Stock Exchange Launch The European Wholesale Securities Market
FEAS February Newsletter
Bucharest Stock Exchange (BVB) ends 2011 with a turnover of RON 21.73 million, with a growth of 66.4%. The net profit of BVB for 2011 increased compared to 2010 by 197% up to RON 16.96 million. The operating result was 21 times higher than the one obtained in 2010
Nominations For Directors – NZX
NZX: Notices To Be Sent To Shareholders
FIF Capacity Statistics For January 2012
[ICE Futures Canada] Delivery Month Reminders for ICE Futures Canada March 2012 Canola and Western Barley contracts
Intrasense admitted to NYSE Alternext
CDCC Launches Fixed Income Central Counterparty Services
Top 20 Largest Consolidated Short Position Report – February 15, 2012
Banks, Brokers & Dark Pools
Citigroup ‘Defrauded’ Fannie, Freddie, Whistle-Blower Claims
Citigroup Inc., which last week admitted breaking Federal Housing Administration rules and paid a fine, also violated regulations for home loans sold to Fannie Mae and Freddie Mac, according to a whistle-blower’s complaint.
BGC Partners to Host Investors and Analysts on Wednesday, May 30, 2012
BGC Partners, Inc., a leading global brokerage company primarily servicing the wholesale financial markets, today announced that it will host analysts and professional investors for a half-day presentation about the Company in New York City on Wednesday, May 30, 2012.
Liquidnet Starts Year Off With Volume Increases Globally
Business Wire via Yahoo! Finance
Liquidnet, the global institutional trading network, saw a significant rise in volumes in January as institutional investors look to trade more blocks around the world.
E*TRADE Launches Retail Forex Trading
Business Wire via Yahoo! Finance
E*TRADE Financial Corporation and FXCM Inc., announced today that E*TRADE FFX, LLC will now offer customers access to global currency markets, research and education through FXCM1, on the newly launched E*TRADE FX platform.
Pierpont Derivatives Starts Clearing Interest Rate Swaps through LCH.Clearnet’s SwapClear Service via Nomura
PR Newswire via Yahoo! Finance
LCH.Clearnet Limited, Pierpont Derivatives LLC and Nomura Securities International, Inc. today announced that Pierpont Derivatives is now actively clearing over-the-counter (OTC) interest rate swaps through LCH.Clearnet’s SwapClear service.
Swiss Compete With U.S. for Lead in Deals
Switzerland is running neck-and-neck with the world’s biggest economy in global dealmaking this year, with a combined $48 billion of takeovers
BTIG Celebrates the 10th Annual Commissions for Charity Day
Business Wire via Yahoo! Finance
BTIG LLC, a global financial services firm specializing in institutional trading and related brokerage services, will hold its 10th Commissions for Charity Day on April 18, 2012.
Goldman Sachs buys stake in Israeli private equity firm, Globes reports
Theflyonthewall.com via Yahoo! Finance
Goldman Sachs (GS) has acquired a 10% stake in Israeli private equity firm Viola Group for $20M, according to Globes.
Citigroup Names Matsuki to Lead Japan OTC Derivative Clearing
Citigroup Inc. today appointed Hiro Matsuki to lead marketing of its listed and over-the-counter derivatives clearing business in Japan to spur fee income, according to a memo obtained by Bloomberg News.
Legal Fees for Fannie and Freddie Near $50 Million
New York Times
As expenses rise, there are new calls to limit the costs at Fannie Mae and Freddie Mac and outlays for defending its former executives.
Blankfein May Leave Goldman Sachs by Summer: Report
Lloyd Blankfein may step down as chief executive of Goldman Sachs as early as this summer, according to Fortune magazine. President and Chief Operating Officer Gary Cohn is the lead candidate to replace him, according to the report.
Merrill Lynch Boosts Recruiting Deal For Top Brokers -Sources
Bank of America Corp.’s (BAC) Merrill Lynch Wealth Management unit has tweaked its recruiting deal to attract financial advisers from competitors, offering bigger upfront cash payments as well as an extra client-asset incentive to a larger pool of top-tier brokers, according to people familiar with the situation.
Wells Fargo to Buy Energy Loan Unit From BNP Paribas
By MICHAEL J. DE LA MERCED – NY Times
Wells Fargo agreed on Tuesday to buy the North American energy loan business of the French bank BNP Paribas, helping to bolster its capital reserves.
The SEC News Digest
The SEC News Digest provides daily information on recent Commission actions, including enforcement proceedings, rule filings, policy statements, and upcoming Commission meetings.
CFTC to Hold Open Meeting to Consider One Final Rule and One Proposed Rule
Washington, DC – The Commodity Futures Trading Commission (CFTC) will hold a public meeting on Thursday, February 23, 2012, at 9:30 a.m., on the following topics:
IOSCO Consults On Suitability Requirements For Complex Financial Products
UK’s Financial Service Authority Obtains Interim Injunction To Halt Unauthorised Deposit-Taker
The Financial Service Authority (FSA) has obtained an interim injunction at the High Court against Stuart Carl Mudge and Anthony John Lewis regarding their involvement in the Churchgate Trading Syndicate (Churchgate).
No Foolish Consistency in Agrawal and Aleynikov But One Hell of A Stunning Reversal
First, inconsistent prison sentences in Agrawal and Aleynikov; second, the federal Court of Appeals throws out Aleynikov and places the future federal prosecution of alleged source-code theft into disarray.
Nicholas Mangee: Moral hazard and financial regulation
Moral hazard is an endemic feature of modern-day capitalist economies, and nowhere is the concept more poignant than within financial markets. The recent global financial crisis is but a recent example.
[AMF Canada] Les Conseillers en placement Randisi inc. and Alfonso Randisi agree to pay a penalty of $10,000
BCSC panel freezes assets of former financial planner
Investments – Indexes – Managed Futures – Managed Funds
Paulson sued over Sino Forest investment
By Dan McCrum in New York – Financial Times
The hedge fund run by John Paulson has been sued by a former investor who alleges that the firm failed to conduct appropriate due diligence on Sino Forest, a Chinese forestry company that cost Paulson & Co’s funds approximately $460m in losses when its share price collapsed last year.
Rogue trade attempt at Threadneedle probed
By Josephine Cumbo and Kate Burgess – Financial Times
City of London police are investigating a suspected $150m trading fraud attempted by a former trader at Threadneedle, the asset manager. Threadneedle confirmed on Tuesday that police and other authorities had been notified after internal company controls had been triggered and a suspicious trade was stopped from being executed last August.
Canadian Clearinghouse Launches Fixed Income Central Counter Party Services
The Canadian Derivatives Clearing Corporation (CDCC) has launched its fixed income central counter party services and has begun to clear repurchase (repo) agreements.
ADM adds another 200 workers to layoff list
By Kate MacArthur – Crain’s
Archer Daniels Midland Co. today said it would trim 200 jobs from its worldwide workforce in addition to the 1,000 cuts it announced last month.
Big commodity players take their chances with higher VaR
Rebecca Hampson – Financial News
JP Morgan and Goldman Sachs, two of the industry’s biggest commodity players, increased their risk appetite for commodities at the end of 2011, despite a dire year for the sector and a cut back at many other banks.
Speculators again behind rising oil prices
Provo Daily Herald
WASHINGTON — U.S. demand for oil and refined products — including gasoline — is down sharply from last year, so much that United States has actually become a net exporter of gasoline, unable to con
Starting Your Own Hedge Fund? Here’s The Question Everyone’s Going To Ask You
It’s getting tougher and tougher to launch a hedge fund these days. A few years ago you could start up shop with $25 to $50 million. Now, from what we’re hearing, it’s more like $100 million.
Dan Solin: A Sane Explanation for Insane Behavior
The Huffington Post
I find it intriguing that well-educated, successful people would engage in this conduct. It raises these questions: If hedge fund managers have the secret mojo that permits them to obtain outsized returns without taking commensurate risks, why do they have to resort to illegal conduct?
Why hedge funds are a joke
The Christian Science Monitor
2011 should have been the perfect year for hedge funds to thrive. What happened?
CDCC Launches Fixed Income Central Counterparty Services – Canadian Repos Now Being Cleared
Three new UBS equity index ETFs launched on Xetra with focus on growth stocks
UBS Launches USD 2 Billion Basel III-Compliant Loss-Absorbing Notes
NASDAQ OMX Starts Trading in Actively Managed ETF from Alpcot
SunGard’s AvantGard PayNetExchange Named Best Electronic Payments Provider by Global Finance Magazine
Global Finance magazine has chosen SunGard’s AvantGard PayNetExchange electronic payments platform as Best Electronic Payments Provider in its new ranking of Treasury and Cash Management Banks and Providers.
BMO Capital Markets Expands Its Use of SunGard’s Global One Solution
BMO Capital Markets has expanded its use of SunGard’s Global One, a suite of securities finance solutions for trade processing, operations and reporting.
Asset Control Upgrades AC Plus To Meet Increased Demands For Transparency
Asset Control, provider of financial data management solutions and services, today announced that it has released a series of upgrades to its AC Plus solution.
EDI Teams Up With Quantal To Provide Historical End-Of-Day Pricing Data
Meredith Whitney Lands Book Deal
By KEVIN ROOSE – NY Times
Meredith Whitney, the banking analyst who made a name for herself with a series of hard-nosed reports about the financial sector, is ready to plant her own literary flag.
Briefing.com Economic Calendar
CBOE Events Calendar
Economic Release Calendar
The Economic Release Calendar (PDF) is a schedule of government, academic and industry economic releases, provided as a service to CME customers.
Principal Global Investors Approved to Invest in Domestic Chinese Markets
Business Wire via Yahoo! Finance
Principal Global Investors, LLC, a leading global asset manager and a member of the Principal Financial Group, announces it has been awarded the designation of Qualified Foreign Institutional Investor by the China Securities Regulatory Commission.
Investor Rogers Compares Myanmar Reforms to China’s Opening
Investor Jim Rogers, the chairman of Rogers Holdings who predicted a global commodities rally in 1999, said Myanmar is embracing reform as China did decades earlier and he’s optimistic about the resource-rich nation’s prospects.
Plan B for China’s Wealthy: Moving to the U.S., Europe
BY JEREMY PAGE – WSJ
This time last year, Shi Kang considered himself a happy man. Writing 15 novels had made him a millionaire. He owned a luxury apartment and a new silver Mercedes. He was so content with his carefree life in Beijing that he never even traveled overseas. Today, a year later, Mr. Shi is considering emigrating to the U.S.—one of a growing number of rich Chinese either contemplating leaving their homeland or already arranging to do it.
HKEx: Stock Exchange Participants’ Market Share Report
BSE launches India’s first energy efficient index
The Bombay Stock Exchange launched India’s first carbon efficient index on Wednesday, aiming to provide a benchmark for socially aware investors.
Saudi Stock Exchange (TADAWUL) Announces The Start Of Updating Swap Portfolios And Data
Tehran Stock Exchange Trading Value Mounts
Gambler? No, I am a compulsive capitalist
By Luke Johnson – Financial Times
Are entrepreneurs really just gamblers at heart? I don’t believe so, but that view reflects my own prejudices. I have never enjoyed playing games of chance for money; when I gamble I prefer to be the house. So rather than bet as a punter, I have owned bookmakers, bingo halls, greyhound tracks and suchlike.