John Lothian Newsletter: CFTC proposes rule for block trades in swaps market; CME Group Aims To Strengthen Ties To Asian Exchanges; LSE draws fire over Borsa synergies

What is the John Lothian Newsletter? Edited by John Lothian and Jon Matte, our flagship newsletter provides daily news and commentary about the global exchange traded derivatives, securities and related OTC markets. The newsletter is offered on a voluntary pay basis. If you find it useful, we ask that you pay for it. Free for students and journalists. Subscribe  Make a Payment

The CFTC sets forth, on a 3-2 vote, a rule proposal for regulating big swap trades. CME Group indicates its continuing interest in Asia, suggesting that it would like closer connections to exchanges in China and Japan.  The Italian securities regulator cries foul over the five year old Milan-LSE tie-up, claiming that extra order flow hasn’t materialized in Italy as promised.  In the top box today, Editor-In-Chief Jim Kharouf celebrates the one-million mark for MarketsReformWiki.

Observations – Statistics – Commentary

One million and counting
By Jim Kharouf, Editor-In-Chief

Yesterday, MarketsReformWiki.com hit the 1 million page view milestone, a mark that was reached just before our first anniversary for the site. It is with great pride that I make this announcement because this number validates what we have been saying since we launched the site on February 28, 2011 – that the industry needs and wants such information. And with the average number of page views growing to 50,000 per week over the past couple months, MarketsReformWiki illustrates how critical regulatory reform is to professionals in our industry.

Over the past year, we’ve built a site with almost 3,000 pages of content that features every proposed and final rule from the Dodd Frank Act including: a summary of all 24 CFTC hearings on the Dodd Frank Act, 23 SEC hearings on Dodd Frank, 27 final CFTC rules, 19 final SEC rules and some 60 proposed CFTC rules. We’ve filtered out, summarized and posted hundreds of the most relevant comment letters, as well as white papers. We’ve also posted rulemakings by the FDIC, Federal Reserve and Financial Stability Oversight Council are building out our European regulatory content with rules from ESMA, and the U.K.’s FSA. And to help put this array of final and potential rules into context, we’ve posted a dozen original interviews with attorneys and other regulatory professionals along with written commentaries. And more are on the way.

At the risk of sounding like an Emmy Award winner, I do want to thank the team that helped build this site: Doug AshburnNicole RohrJeff BergstromRyan LothianPatrick Lothian, Erin Lahti and Jessica Titlebaum (now with the NFA) and Alan DiNovo. We also want to thank our sponsors who believe in the value that the site brings to the industry: Eurex ClearingNFAThe Price GroupPenson FuturesMarketAxessGFI Group and IMC. We welcome other sponsors who would like to support this project.

This is just the start for MarketsReformWiki. We thank you for using the resource and will keep forging ahead. 

By the way, MarketsWiki is likely to reach the 20 million mark next week, which means we’ve averaged 1.25 million page views per month this year, on pace for 15 million page views in 2012.

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OIC ANNOUNCES EDWARD J. JOYCE TO RECEIVE JOSEPH W. SULLIVAN AWARD AT THE ANNUAL OPTIONS INDUSTRY CONFERENCE
The Options Industry Council (OIC) announced today Edward J. Joyce as the 2012 recipient of the Joseph W. Sullivan Options Industry Achievement Award. This recognition on behalf of outstanding contributions to the growth and integrity of the U.S. options market. The award presentation will be at the 30th Annual Options Industry Conference, being held at The Roosevelt Hotel in New Orleans, from May 3-5.
http://jlne.ws/wyuvYn

***** Congratulations to Ed Joyce from all of us here at JLN on a well-deserved award!

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Pointing fingers
Philip McBride Johnson – FOW
It has been reported that the Commodity Futures Trading Commission may transfer some of its Enforcement Division’s attorneys and staff to work instead on such matters as registering and regulating the mainstream futures and swaps communities. Not everyone is comfortable with that decision.

One argument in favor is MF Global. Here was a mid-size futures broker that, despite years of CFTC supervision, managed somehow to deplete its segregated customers account by about $1.6 billion through both domestic and offshore transfers. The full facts remain elusive, but a mishap of this size and at the core of customer protection by a long-time broker gives support to this view.
http://jlne.ws/yG4fIU

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ICE U.K. NBP Natural Gas Futures Set Daily Volume Record
IntercontinentalExchange, a leading operator of global regulated futures exchanges, clearing houses and over-the-counter (OTC) markets, announced today that the ICE U.K. National Balancing Point (NBP) Natural Gas Futures contract achieved a daily volume record of 68,495 (equivalent to 2 billion therms) on February 22, 2012, surpassing the previous record of 68,260 contracts on August 30, 2011. 
http://jlne.ws/AvuSZV

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LME delays fee rise after members revolt
By Jack Farchy in London – Financial Times
The London Metal Exchange has rolled back an increase in trading fees following a rare public revolt from its members. At a meeting on Thursday, the LME’s board decided that the fee rise, which would more than double the cost of some trades, would be delayed by several months and that short-dated contracts would be exempt.
http://jlne.ws/xjvdJ7

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CME Group Education Newsletter – February 2012
In this issue:
Why Commodity-Buying Organizations Need Their Own Hedging Strategies
Equity Market Monitor – 4th Quarter 2011
The Long and Short of It
MetalMiner: Metals Off to a Strong Start in 2012
…and more.
http://jlne.ws/yRYktw

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CFTC Staff to Host a Two-Day Public Roundtable to Discuss Additional Customer Collateral Protections
The Commodity Futures Trading Commission (CFTC) today announced that staff will hold a two-day public roundtable to discuss additional customer collateral protection. The roundtable is to gather public input on a variety of ideas to further protect customers.
http://jlne.ws/zBd3U7

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A Fraud Went Undetected, Although Easy to Spot
By FLOYD NORRIS – NY Times
In some ways, the theft was not the most audacious part of the strange case of Puda Coal, which traded on the NYSE Amex stock exchange in New York. The attempted cover-up, involving a forged letter from a Chinese state-owned entity and a fake takeover offer, were even more brazen. But what is most amazing is how easy it turned out to be to discover the fraud. It was basically spelled out in documents that were publicly available in China months before American and Canadian investment banks, advised by major law firms, raised the money from investors. But it appears no one bothered to look — not the underwriters and not the auditors. 
http://jlne.ws/yNcbCs

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SunGard and DerivSource Webinar

OTC Derivatives Clearing in Flux – the Impact on Post-Trade Processing
March 6th 2012 (10am EST/3pm GMT)
    
In a complimentary webinar, a panel will explore the evolution of the CCP landscape for OTC derivatives and the operational challenges financial institutions face in adapting post-trade processing to meet the requirements of a current and future CCP clearing environment. Operations and clearing experts will review the main initiatives that will shape the CCP for OTC landscape in the next 12 months and explain how market participants are transforming post-trade processes in anticipation of these changes but also to support current circumstances for central clearing.

Topics to be covered include

• Globalization of CCPs
• Extension of ‘clearable swaps’ to include additional asset classes, such as FX
• Update on regulatory reform within EMIR, Dodd-Frank and other regions and the impact on central clearing.
• Collateral management
• Regulatory reporting
• Settlement and accounting

Confirmed Speakers

•  Mark Cox, Director, CME Clearing Solutions
•  Andrew Coggins, Independent Consultant
•  Lee McCormack, Executive Director, OTC Clearing, Morgan Stanley
•  Ila Eckhoff, Managing Director, Derivative Initiatives, Oversight and Control, BlackRock Inc.
•  John Omahen, Vice President – Post Trade Derivatives Solutions, SunGard

Moderated by Julia Schieffer, CEO & Editor in Chief, DerivSource

For complete details and to register, visit http://jlne.ws/yLvmPx

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MarketsWiki Page of the Day
Edward J. Joyce
http://jlne.ws/yBscak

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MarketsWiki Recent Updates

People 

Philip M. SlocumEdward L. ProvostPaul J. GeorgyEdward J. JoyceBluford Putnam

Companies, Organizations and Groups

Chicago Board Options ExchangeRadar Logic

Products

CFE Radar Logic RPX Composite Index Futures

Miscellaneous

Federal Reserve Act of 1913Swap Dealer

Statistics

19,808,444 pages viewed, 6,707 articles, 137,360 edits
MarketsWiki Statistics

Lead Stories

CFTC proposes rule for block trades in swaps market
Jamila Trindle – Dow Jones Newswires
The Commodity Futures Trading Commission voted yesterday to propose a rule for big “block” trades that will be exempt from immediate reporting requirements for sometimes complex derivatives called swaps. The CFTC voted three-two to propose limits that would qualify about 6% of interest rate swaps and credit default swaps as block trades. 
http://jlne.ws/zUoksd

CME Group Aims To Strengthen Ties To Asian Exchanges 
By Jacob Bunge Of DOW JONES NEWSWIRES
CME Group Inc. (CME) is exploring ways to strengthen relationships with exchanges in China and Japan, according to the futures market operator’s chairman emeritus. The Chicago-based futures trading behemoth could add the China Financial Futures Exchange to a roster of cooperation agreements with other Chinese markets, and would like to establish closer ties with the Tokyo Commodity Exchange Inc., CME’s Leo Melamed said at an industry event Thursday.
http://jlne.ws/yRmcRq

LSE draws fire over Borsa synergies
By Rachel Sanderson in Milan and Brooke Masters and Jeremy Grant in London – Financial Times
The London Stock Exchange’s takeover of the Milan bourse five years ago “has not fulfilled expectations either in Italy or London” in terms of stimulating cross-border capital flows or increased investment in Italian companies, the Italian securities regulator has claimed.
http://jlne.ws/w5e2nY

Analysis: Out of control? Volatility ETN triggers risk concerns
By Angela Moon and Jessica Toonkel – Reuters
(Reuters) – A surge in trading in a product used to make outsized bets on rising volatility has become the latest example of how exchange-traded securities are gaining a bigger grip on the U.S. stock market, in a growing headache for regulators.
http://jlne.ws/wfjDM2

Japan Orders Pension Fund to Suspend Operations
By HIROKO TABUCHI – NY Times
TOKYO — Japanese financial authorities ordered a Tokyo-based pensions manager to suspend operations Friday after public investigators discovered that the company may have lost the bulk of about $2.3 billion in funds it managed for its clients.
http://jlne.ws/yCjv1s

G20 must protect the IMF from Europe
Mohamed El-Erian – Financial Times
At this weekend’s G20 meeting, European countries are likely to press for an increase in the International Monetary Fund’s resources as a means to bolster the firewalls against the eurozone debt crisis. The other G20 members must resist such pressure until Europe starts showing more signs that it’s getting its act together. 
http://jlne.ws/yNcU9S

Europe says goodbye to solidarity
By Philip Stephens – Financial Times
Some words are the property of continental Europeans. You do not hear many Brits or Americans talking about “solidarity”. The expression belongs to the soggy (to Anglo-Saxon minds) consensualism of social market capitalism and to prophets of European unity. What’s happened lately is that solidarity has dissolved. This explains why the euro, and the European Union, are in so much trouble.
http://jlne.ws/wYRxbI

Athens told to change spending and taxes
By Peter Spiegel in Brussels, Gerrit Wiesmann in Berlin and Kerin Hope in Athens – Financial Times
European creditor countries are demanding 38 specific changes in Greek tax, spending and wage policies by the end of this month and have laid out extra reforms that amount to micromanaging the country’s government for two years, according to documents obtained by the Financial Times.
http://jlne.ws/wF3ORk

Environmental Trading News

EU Experts Deadlock on Canadian Oil Sands
Wall Street Journal
A panel of European Union technical experts deadlocked over whether to penalize Canadian oil sands, the latest move in a simmering trade squabble between Brussels and Ottawa.
http://jlne.ws/x3zUPZ 

Trade Battles Buffet Europe’s Green Efforts
The New York Times
During the past decade, the European Union blazed a green trail with a series of laws mandating a low-carbon economy and promises to set an example for other parts of the world. 
http://jlne.ws/x1MdEG

Rethinking Carbon Dioxide: From a Pollutant to an Asset 
Marc Gunther: Yale Environment 360 
Three startup companies led by prominent scientists are working on new technologies to remove carbon dioxide from the atmosphere. The scientific community is skeptical, but these entrepreneurs believe the process of CO2 removal can eventually be profitable and help cool an overheating planet.
http://jlne.ws/wxc76R

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

LME: Sale Process Continues
By ANDREA HOTTER – WSJ
The London Metal Exchange said it continues to work on narrowing the list of suitors for its 135-year old business to a single name to put before members for a vote continues, but declined to elaborate. 
http://jlne.ws/yLmwnN

Bats Gets Request From SEC on Exchange Order Types, Strategies
BusinessWeek
Bats Global Markets Inc., the exchange operator preparing for an initial public offering, got a request from the U.S. Securities and Exchange Commission for information on the types of orders customers use on its venues.
http://jlne.ws/z14CMN

BATS Plans $100M Special Dividend For Owners Following IPO 
By Jacob Bunge Of DOW JONES NEWSWIRES 
BATS Global Markets will pay a $100 million cash dividend to its stakeholders upon completing its initial public offering, according to a regulatory filing.
http://jlne.ws/xKJBRe

Order Book for Retail Bonds celebrates second anniversary
London Stock Exchange’s Order Book for Retail Bonds (ORB) market today celebrated its second full year of operation. Launched in 2010 in response to strong private investor demand for greater access to fixed income products, ORB offers transparent two-way trading in over 150 corporate, government and supranational bonds.
http://jlne.ws/zkZpnU

Mexican Exchange Plans Research Coverage For Public Companies
By Jacob Bunge Of DOW JONES NEWSWIRES 
The parent of Mexico’s main stock exchange is planning a new research division that will provide analyst coverage for small- and medium-sized companies listing shares on the platform, executives said Wednesday.
http://jlne.ws/ypNkhF

LME Exchange User Fee
Press Release
http://jlne.ws/yp55to

The Montréal Exchange launches Overnight Index Swap Futures
Montréal Exchange (MX) will list Overnight Index Swap Futures contracts starting today, eligible for trading in Canada, the U.S. and the U.K. MX is expanding product coverage of the Canadian short-term interest rate market in response to growing demand for derivatives products that more accurately reflect shorter term interest rate exposure.
http://jlne.ws/yBMlKs

London Metal Exchange Runners And Riders Under Starters Orders
Press Release
http://jlne.ws/y43H7l

COSI segment opened to British collateral providers
http://jlne.ws/AoKBCG

CME Group Clearing Advisory
NYMEX Options Expiration Operational Procedures for the Trading Floor and Clearing Members (OB, OH, I, ON) – Effective Friday, February 24, 2012
http://jlne.ws/AFlB3G

CME Clearing – Performance Bonds / Margins
Performance Bond Requirements: Interest Rate, and FX Intra Charges, Agriculture and Power Outright Changes- Effective Friday, February 24, 2012
http://jlne.ws/zidKg6

[CBOE] RG12-031 Restrictions on Transactions in Energy Conversion Devices, Inc. (“ENER”) 
http://jlne.ws/ysnSse

NZX: Ongoing Disclosure Notices – Mark Weldon
Press Release
http://jlne.ws/xSvoQE

Banks, Brokers & Dark Pools

BofA to stop mortgage sales to Fannie Mae
By Tom Braithwaite in New York – Financial Times
Bank of America will no longer sell mortgages to Fannie Mae, the large government-backed loan guarantor, in an escalation of a bitter dispute over compensation for previous bad mortgages.
http://jlne.ws/xG2Rrd

New Citigroup Looks Too Much Like the Old One: Jonathan Weil
By Jonathan Weil – Bloomberg
Two years ago, Citigroup Inc. (C) embarked on one of those feel-good corporate-image campaigns, aimed at showing a skeptical public that it could be trusted again. Citigroup was a “fundamentally different” company from what it had been during the financial crisis, it promised, a mantra its executives have repeated ever since. 
http://jlne.ws/zX6ySE

Goldman Sachs Says Luca Ferrari, Adviser to Xstrata, Retires
BusinessWeek
Goldman Sachs Group Inc.’s Luca Ferrari, an investment banker to Xstrata Plc on its proposed merger with Glencore International Plc, is leaving the company after 12 years.
http://jlne.ws/zpYpNd

Goldman Sachs experiencing executive exodus
New York Post
The trickle of senior executives leaving Goldman Sachs is turning into a flood. The Wall Street powerhouse, which has witnessed a string of high-profile departures in recent months, is facing a hollowing out of its ranks not seen since the firm established its partnership pool 13 years ago.
http://jlne.ws/xTfMPW

RBS Cuts Investment Bank Pay
BusinessWeek
Royal Bank of Scotland Group Plc, Britain’s largest government-controlled lender, cut pay for its investment bankers by 26 percent after politicians demanded moderation in rewards for 2011.
http://jlne.ws/yHUt2f

Lloyds Posts $4.4 Billion Loss for 2011
By MARK SCOTT – NY Times
LONDON — The Lloyds Banking Group, partly owned by the British government, reported on Friday a loss for 2011 after it had to compensate some customers who were wrongly sold insurance.
http://jlne.ws/yjk1Bx

Update: Penson Worldwide, Inc. Fourth Quarter 2011 Conference Call Tuesday, March 13
Business Wire via Yahoo! Finance
http://jlne.ws/Aah8Iy

Merrill boss says brokers better off with bank
Reuters via Yahoo! News
NEW YORK (Reuters) – Merrill Lynch brokerage boss John Thiel is firmly committed to cross-selling products from parent Bank of America to investors, something he says clients want and that will help advisers make more money.
http://jlne.ws/yTlbzR

Bank of America Promotes Banker To New Infrastructure Role
Dow Jones
Bank of America Merrill Lynch, a unit of Bank of America Corp. (BAC), said it has appointed Philippe Chryssicopoulos to a new role of head of EMEA infrastructure banking, a move reflecting the growing importance of infrastructure to the bank in Europe.
http://jlne.ws/wsWZQ7

Deutsche Bank To Revive Effort To Sell BHF To RHJ – Report
Dow Jones
Deutsche Bank AG (DBK.XE) plans to resume efforts to sell its private bank BHF to private equity firm RHJ International, Financial Times Deutschland reports Thursday.
http://jlne.ws/ApQU5l

Morgan Stanley Chosen by BlackRock for Swaps Clearing Access
By Matthew Leising – Bloomberg
Feb. 23 (Bloomberg) — Morgan Stanley has been chosen as one of the swaps clearing brokers for BlackRock Inc., the world’s largest money manager, ahead of new rules requiring most trades to be processed by clearinghouses.
http://jlne.ws/w4kTXk

Islamic Finance: Islamic Sukuk By Goldman Sachs Causes Debate
By Anjuli Davies – Reuters
A controversial plan by Goldman Sachs to issue an Islamic bond has ignited a wider debate on whether conventional banks in the West should be allowed to engage in Islamic finance.
http://jlne.ws/zUJrz4

Citigroup to Exit India Mortgage Firm With $2.1 Billion Sale
BusinessWeek
Citigroup Inc. plans to exit an almost seven-year-old investment in India’s largest mortgage lender with an offer to sell its stake in Housing Development Finance Corp. for as much as 102 billion rupees ($2.1 billion).
http://jlne.ws/ykytUT

Fuld: I’m not built for Street life
New York Post
Former Lehman Brothers CEO Dick Fuld, who ran one of the largest Wall Street firms before its 2008 collapse, decided to end his two-year tenure at Legend Securities amid mounting regulatory scrutiny concerning his role at the small brokerage firm, FOX Business Network reported yesterday.
http://jlne.ws/yNOFAY

Regulatory News

The SEC News Digest
The SEC News Digest provides daily information on recent Commission actions, including enforcement proceedings, rule filings, policy statements, and upcoming Commission meetings.
http://www.sec.gov/news/digest.shtml

SEC May Ticket Speeding Traders
By SCOTT PATTERSON And ANDREW ACKERMAN – WSJ
The Securities and Exchange Commission is looking to curb high-frequency traders’ huge influence on stock trading and is considering charging fees for the myriad buy and sell orders that are later canceled, among other options.
http://jlne.ws/w2Qv2v

Missing MF Global Customer Funds to Incite Regulatory Change
Debbie Baratz – Value Walk
MF Global logoIn response to the MF Global implosion, including $1 billion of missing client money, federal regulators are now looking to implement safety measures so this doesn’t happen again. Next week, they’ll start by having a public roundtable hosted by the Commodity Futures Trading Commission (CFTC).
http://jlne.ws/xFcCjQ

Holder Defends Efforts to Fight Financial Fraud
By PETER LATTMAN – NY Times
Attorney General Eric H. Holder Jr. defended the Justice Department’s record on financial fraud Thursday evening, asserting that the administration’s “record of success has been nothing less than historic.”
http://jlne.ws/x6taTs

Opening Statement By CFTC Chairman Gary Gensler On Commission Meeting For Consideration Of Rules Implementing The Dodd-Frank Act
Press Release
http://jlne.ws/wMh5ek

“Unreasonably Feeble” – Opening Statement Of CFTC Commissioner Scott D. O’Malia Regarding Open Meeting On One Final Rule And One Proposed Rule1
http://jlne.ws/xHMzgP

Opening Statement Regarding Ninth Open Meeting To Consider Final Dodd-Frank Rules – CFTC Commissioner Jill E. Sommers
Press Release
http://jlne.ws/wYcnTZ

Re-Proposed Procedures To Establish Appropriate Minimum Block Sizes For Large Notional Off-Facility Swaps And Block Trades; Further Measures To Protect The Identities Of Parties To Swap Transactions – CFTC Statement Of Commissioner Scott D. O’Malia
Press Release
http://jlne.ws/zUEI1p

[NFA] The Registration Process: Filing an Application for a Principal of a Swap Dealer or a Major Swap Participant (video)
http://jlne.ws/zVZ71J

FINRA Issues New Investor Alert to Help Investors Understand Their Brokerage Account Statements
The Financial Industry Regulatory Authority (FINRA) today issued a new Investor Alert called It Pays to Understand Your Brokerage Account Statements and Trade Confirmations to help guide investors through the key elements of their account statements and trade confirmations. FINRA is reminding investors that reviewing their account statements not only helps them stay on top of their holdings, but also alerts them to errors or broker or firm misconduct, such as unauthorized trading or overcharging customers for handling transactions. 
http://jlne.ws/z8SdDC

DE Shaw fined for food futures breach
By Sam Jones, Hedge Fund Correspondent – Financial Times
DE Shaw, one of the world’s most prominent hedge fund managers, has been fined by the US Commodities and Futures Trading Commission for violating position limits in two sensitive food futures markets.
http://jlne.ws/zyRHE6

CFTC Orders Iowa Resident Jeffrey J. Kinseth and His Company, Virtual Vision Inc., to Pay More than $1 Million in Restitution and Penalties in Fraud Action
The U.S. Commodity Futures Trading Commission (CFTC) today filed and simultaneously settled charges against Jeffrey J. Kinseth of Cedar Rapids, Iowa, and his Iowa-based company, Virtual Vision Inc., for fraudulently soliciting individuals to participate in a pooled investment vehicle, misappropriation of investor funds, and issuance of false statements to conceal trading losses and fraud. Kinseth is not registered with the CFTC. 
http://jlne.ws/vZBVUq

SIFMA Develops New Institutional Suitability Certificate To Facilitate Compliance With New FINRA Suitability Requirements
Press Release
http://jlne.ws/wLCWHn

ASIC Releases Draft Disclosure Guidance For Hedge Funds
Press Release
http://jlne.ws/zoebWl

Investments – Indexes – Managed Futures – Managed Funds

Hedge-Fund Assets To Rise To Record $2.26 Trillion – Deutsche Bank
Amy Or – Dow Jones
Hedge-fund assets look set to surge to a record $2.26 trillion by the year’s end as investors increase their alternative investments and trim cash holdings.
http://jlne.ws/AeDyB5

TriOptima and LCH.Clearnet Compression of Cleared Interest Rate Swaps Exceeds $100 Trillion in Notional; $20.4 Trillion Compressed in 2012 Alone
TriOptima and LCH.Clearnet Limited (LCH.Clearnet) today announced that $110 trillion in total notional volume in EUR, JPY, GBP and USD interest rate swaps has been terminated by 21 SwapClear members using TriOptima’s triReduce service since the first cycle in 2008. In 2012 alone, $20.4 trillion has been eliminated, accelerating a trend to larger and more frequent termination cycles. 
http://jlne.ws/yRqsrD

Pension gap spells trouble for muni bonds
By Gillian Tett – Financial Times
In recent months, America’s mighty Securities and Exchange Commission has been making US local government officials nervous. The reason? In 2010, New Jersey settled civil fraud charges brought by the SEC for allegedly misleading bondholders about the funding of its pension.
http://jlne.ws/yB3flg

Gross Rebuts Cooperman on Treasuries Citing Risk for Stocks
BusinessWeek
Pacific Investment Management Co.’s Bill Gross said investors should be cautious about substituting dividend-paying stocks for Treasuries as there’s a “huge gap of risk” between the two types of assets.
http://jlne.ws/zdNwBg

Glencore-Xstrata seek Brussels approval
By Alex Barker in Brussels – Financial Times
Glencore and Xstrata are to seek approval from Brussels for their proposed $90bn merger to create a commodities group, in a move that suggests antitrust clearance could prove a bigger hurdle than initially expected.
http://jlne.ws/wo19oH

Hedge Fund 3 Degrees Said to Lose Challenge to Regulator’s Closure Order
Bloomberg
3 Degrees Asset Management, asked by Singapore’s central bank to shutter its operations following allegations that founder Moe Ibrahim diverted assets, lost a legal bid to challenge the regulator’s order, according to two people familiar with the decision.
http://jlne.ws/wPQVmh

Not Again – Following Abysmal 2011, Only 10% Of Hedge Funds Are Outperforming The S&P In 2012
Zero Hedge
Too bad not every hedge fund can be long Apple (even if as Goldman points out, they sure are trying – “One out of five hedge funds has AAPL among its ten largest long positions” – a truly stunning observation and one which means that if Apple, which is priced to absolute perfection, has even one hiccup, we would see an absolutely epic bloodbath in the market).
http://jlne.ws/xd6fZL

ISDA Publishes Paper Highlighting Achievements in Portfolio Compression: $164 Trillion of IRS Notionals Eliminated Through YE’2011
The International Swaps and Derivatives Association, Inc. (ISDA) today announced the publication of a paper titled “Interest Rate Swaps Compression: A Progress Report.” The paper describes a risk reduction practice, portfolio compression, which was introduced to the interest rate swap (IRS) market in 2003 by TriOptima. It also highlights how compression could be optimized to achieve greater effect in reducing interest rate swap notionals.
http://jlne.ws/yfe4CM

BlackRock Announces 9% Increase in Quarterly Common Stock Dividend
Business Wire
http://jlne.ws/wuV0V7

Industry Authority Launches ETF Global Insight – Deborah Fuhr And Team To Provide Independent Research And Consultancy To The Global ETF Industry
Press Release
http://jlne.ws/yVH7k9

HSBC’s Lowest Libor Rates Diverge From Bonds: Corporate Finance
Bloomberg
HSBC Holdings Plc (HSBA) , Europe ‘s biggest bank, says the interest rate it pays for short-term dollar loans is about the lowest ever relative to rivals whose bonds are performing better.
http://jlne.ws/zs1OeM

Reports

Briefing.com Economic Calendar
http://www.briefing.com/Investor/Public/MarketAnalysis/Calendars/EconomicCalendar.htm

USDA Today
http://www.nass.usda.gov/Publications/index.asp

CBOE Events Calendar
http://www.cboe.com/AboutCBOE/EventCalendar.aspx

Economic Release Calendar
The Economic Release Calendar (PDF) is a schedule of government, academic and industry economic releases, provided as a service to CME customers.
http://www.cmegroup.com/tools-information/calendars/

Asia-Pacific News

Shanghai on Track to Launch Bond Futures Trading: Official
Liza Tan – CNBC
Shanghai will be rolling out a number of aggressive initiatives to grow its capital markets this year, including introducing bond futures trading, a top Chinese financial services official told CNBC.
http://jlne.ws/w4Klks

SGX welcomes new Lyxor ETF listings 
http://jlne.ws/zDrmpq

Tokyo Stock Exchange: New ETFs Included In Real-Time Dissemination Of TSE Indicative NAV
http://jlne.ws/xlcLaR

Thai Bourse Continues To Enhance Investment Channel Via Banks, Brokers
Press Release
The Stock Exchange of Thailand (SET), together with seven banks and seven securities firms, launch the “Banker to Broker & One for All” campaign for a second year, to expand investment channels through 5,200 bank branches and the banks’ brokerage subsidiaries and stimulate securities trading via Internet banking.
http://jlne.ws/zm6uHf

Taiwan Futures Exchange Monthly Newsletter – February 2012
Press Release
http://jlne.ws/xyTyL8

Hong Kong’s Securities And Futures Commission Wins Appeal Against Tiger Asia
Press Release
http://jlne.ws/AAeHWi

HKFE Announces Revised Margins For Esprit Holdings Futures
http://jlne.ws/z69WWe

Frontier Markets

Bank of America Merrill Lynch Hires Gush as South Africa CEO
BusinessWeek
Bank of America Corp., the largest U.S. lender by assets, hired Standard Bank Group Ltd.’s Richard Gush to run its Merrill Lynch investment-banking business in South Africa.
http://jlne.ws/zQAWd6

Venture Firm Seeks the Atypical, and Finds It in Brazil
By VINOD SREEHARSHA – NY Times
MARÍLIA, Brazil — Atomico went off the beaten path for its first investment in Brazil, and not just in terms of geography.
http://jlne.ws/zWkq8j

MCX Weekly Market Report February 17, 2012 – February 23, 2012
Press Release
http://jlne.ws/wJLGlp

Bursa Malaysia Reprimands, Fines And Suspends Chong Lee Fatt For Unlawful Conduct And Engaging In Unauthorised/False Trading
Press Release
http://jlne.ws/AAW8K3

Tel Aviv Stock Exchange Weekly Review: 19-23 February 2012
Press Release
http://jlne.ws/zoZ7l1

Jon Matte
Jon Matte COO & Editor Matte is chief operating officer of John J. Lothian & Co. He edits the John Lothian Newsletter, JLN Forex and MarketsWiki. Author Archive  |  MarketsWiki Bio  |  LinkedIn  |  Email