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John Lothian Newsletter: London Forms Bank Working Group To Expand Yuan-Trading Operations; Quote MTF venue to block unwanted bids; Obama administration targets oil speculators

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 City of London starts a working group with banks to help them expand their already-in-motion plans to trade yuan in the city. Startup trading venue Quote MTF plans to provide the ability for traders to decline to participate with specific other parties, to help mitigate the influence of high-frequency activity. In the “Well, we have to do SOMEthing” department, the Obama administration adds their nomination to throw speculators under the oil-price bus. And in a jam-packed top section, you’ll find links from John Lothian on charitable giving; comments and links to oil-speculator-related articles; commentary from Jim Kharouf on the resurgence and potential value of the Occupy Chicago movement; and commentary from Doug Ashburn in yesterday’s JLN FX newsletter, discussing the situation in the eurozone.

Observations – Statistics – Commentary

Giving News
I frequently get asked to run something in this newsletter for someone raising money for some charity. My recent column, “The Richness of Giving” addressed this issue at length. In the spirit of highlighting and elevating these good causes and charitable efforts from among the readers of this newsletter, we have created a special section on the John Lothian Newsletter website (www.johnlothiannewsletter.com) dedicated to these efforts.

Giving News is the second special section on this website. The other is for MF Global related news.

Here is our message on the website:

John Lothian News is committed to promoting industry efforts to give back to communities and causes. In this section we feature those fundraising, volunteering and raising awareness. We hope you’ll join us in helping these individuals and organizations in any way you are able. If you would like to see your efforts featured on this page and in the John Lothian Newsletter, please contact us.

And that says it all.

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Gas Prices
Politicians are supposed to be politicians. When commodity markets get too extended, politicians are motivated to jawbone the markets. Markets, and market participants, should never forget there are political aspects to markets. As market participants like to say, markets are about two things; fear and greed. It is the politicians’ job to put a little fear into the market when they perceive too much greed. It is not news when politicians are politicians. It is news if the CFTC get more money and resources.

~John J. Lothian

CFTC’s margin of error
By Javier Blas, Commodities Editor – Financial Times
A common joke in the commodities markets is that oil prices are too high until a congressman from Texas starts to complain; then they are too low. And grain prices are too high until the congressman from Iowa disagrees. US politicians have historically complained about commodities prices for decades. And each and every time prices were seen as too high or low, speculators were behind the problem.
http://jlne.ws/IYqBYt

“The measures amount to political theatre. The increase in fines and surveillance funding go in the right direction, but would not really have any material impact.”

Remarks by the President on Increasing Oversight on Manipulation in Oil Markets
Whitehouse.gov
http://jlne.ws/IYqE6I

[Video] President Obama Speaks on Increasing Oversight on Manipulation in the Oil Market
Whitehouse.gov
http://jlne.ws/IYqGeL

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Occupy Part 2
By Jim Kharouf

The words from the guy with the microphone were muffled, but he got the crowd of a couple hundred protesters revved up in the mall area next to the Chicago Board of Trade building on Tuesday afternoon with the chant “Shame on You.”

Among the pictures of Occupy’s “Most Wanted” was CME chairman Terry Duffy. Who would’ve thought a kid from Chicago who rose through the ranks at CME would become the face for contempt by the 99 percent?

A 76-year-old grandmother from Chicago spoke to me during the rally and said she just paid her taxes on Tuesday and decided to come downtown to voice her support against what she, and virtually everyone else at the event, deemed the inequity of the U.S. income tax structure.

“I’m seriously considering not paying my taxes next year,” said the slight, grey haired, blue-eyed woman, who would be better fit for a Norman Rockwell Easter dinner scene than a protest. “There should be a movement where we all decide that we don’t want to pay our taxes and see how many people get put in jail.”

It would be easy to dismiss the protesters in Chicago and the re-birth of the Occupy Wall Streeters in New York this week. Last year’s protests in major metropolitan areas around the world became bogged down in a morass of social causes from taxes, to jobs, to teachers’ unions to saving various animals. Time will tell the impact of this spring’s discontent.

It is easy and convenient to once again discount this group, saying they stand for everything, which amounts to nothing much at all. But that would be a mistake. There is a growing frustration outside the financial markets of people who continue to look at the wealth gap in the US and feel somehow disillusioned. The US Senate’s inaction on the so-called Buffet Rule this week, only further flames the anger.

A group of people held a long banner that just said $2,2150,000,000,000. That’s the amount one woman holding the end of the sign said was what the wealthiest 1 percent in the United States did NOT pay in taxes last year. Yes, $2.15 trillion. Whether that is accurate or not, it’s another number that dissatisfied Americans will likely latch onto.

Add in $5 gasoline and watch how politicians begin to tinker with the markets and the tax structure in knee-jerk manner that may ultimately be worse for the economy and those on the street.

Today’s political dialog lacks education, proper discord and openness. It is fueled by a variety of elements that have raised the ire of many in the US.

Who among the 1 percent will stand up and create a dialog with the 99%? My best guess is few or none. The easy answer for executives whose faces end up as picket signs is to say “I’m not the problem folks. I work hard, earn a lot of money and contribute to communities in very positive ways, through charities and building a company that continues to add jobs.”

But at some point, one wonders if that is not longer enough.

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Protesters target CME, Duffy
By Emily Bryson York – Chicago Tribune
Protesters demonstrated Tuesday against the CME Group at an event its foundation underwrote at John Marshall Law School, carrying picket signs and an effigy of CME Chairman Terry Duffy.
http://jlne.ws/IYqBYF

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Leo Melamed defends CME Eurodollar rules
Reuters
The former chairman of the Chicago Mercantile Exchange said on Tuesday that large, privately negotiated trades that sparked a protest are critical to the market.
http://jlne.ws/IYqGLI

**** There goes Leo’s membership in the Floor Traders Alumni Club.

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The One-Way Dead-End Street
by Douglas Ashburn

“I’m living on a one-way, dead-end street. I don’t know how I ever got there.”
— Comedian Steven Wright

When the members of the European Common Market agreed to form a monetary union in 1999, with the euro as its common currency, the continent was forced upon a one-way street, with no turning back. As the eurozone credit crisis drags on into its third year, many suggest that this one-way street is nearing a dead-end. Since, the thinking goes, the monetary union is not backed by by a fiscal union, nor is it enforced by a military union, the monetary union is rife with moral hazard.

I disagree about the dead-end. I see a fork in the road, but it remains unclear whether eurozone members have the wherewithal to make the turn in time. The question must be asked, though, why they are in this position to begin with? Is the euro really preferable to pegged or banded currencies? And, given the eurozone turmoil, why are Australia and New Zealand considering the single currency idea?

The answer to the last question is easy – economies of scale, and increased efficiency and productivity from the elimination of cross-border transaction costs. Of course, these are the same arguments that were presented to create the euro, and are the same arguments used every day for corporate mega-mergers. But, as we have all learned over the past few years, dangers are hidden beneath the surface, and cracks tend to form, grow, and manifest themselves at the most inopportune time.

For the rest of the commentary and daily FX news, visit the JLN FX website at http://jlne.ws/JF374F

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Infinium Capital Management Announces Chris Neylon to Head Natural Gas Business
Business Wire via Yahoo! Finance
Infinium Capital Management, a proprietary trading firm, today announced that Chris Neylon is assuming responsibility as Head of the firm’s Natural Gas business where he will be responsible for managing the firm’s Natural Gas trading operations.
http://jlne.ws/IYqEU9

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Derivatives Lobby Has U.S. Regulators on the Run
Bloomberg
The derivatives industry is squeezing Washington like a python. Desperate to control the tone and thrust of derivatives regulation, industry lobbyists have been swarming over the Commodity Futures Trading Commission and the Securities and Exchange Commission, each of which is writing derivatives rules as mandated by the Dodd-Frank reform law.
http://jlne.ws/IYqDj2

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FSA statistics show boiler room fraudsters are making greater efforts to con consumers – but having less success
The Financial Services Authority (FSA) has published statistics that show there were more reports of share fraud activity in 2011 than 2010, but fewer people lost money. In 2011 the FSA saw a 19 per cent increase in enquiries about share fraud, commonly known as ‘boiler room’ fraud, with 5,401 reports made compared to 4,527 in 2010. However, despite the increase there was a seven per cent drop in 2011 (from 831 to 770) in the number of people who having been contacted by a boiler room, then invested.
http://jlne.ws/IYqMTG

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National Futures Association, CFTC and AARP co-sponsor “Avoiding Fraud is Your Best Money Strategy” during Money Smart Week
National Futures Association (NFA), the Commodity Futures Trading Commission (CFTC), and AARP will co-sponsor a seminar that aims to provide individuals and community leaders with the tools they need to help protect themselves and others from investment fraud. The seminar, “Avoiding Fraud is Your Best Money Strategy,” will be held on Thursday, April 26 from 12:00 p.m. to 1:00 p.m. at the AARP Illinois office, 4th floor conference room, located at 222 N. LaSalle, in Chicago, Illinois.
http://jlne.ws/IYqDj7

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Lessons of MF Global: Stop Starving the Regulators, Especially the CFTC
Leo Hindery, Jr. – Huffington Post
Anyone who thinks we’ve shut the barn door on misdeeds in the financial, commodities and futures markets just because of the well-intentioned Dodd-Frank Wall Street Reform and Consumer Protection Act (that became law on July 21, 2010) apparently has never heard of the latest debacle, MF Global. The clarion call that arose out of the 2008 financial meltdown is still pealing.
http://jlne.ws/IYqDjd

***JM: I’m all in favor of extra funding for the, “Define it before you regulate it” department.

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MarketsWiki Page of the Day
David Stein
http://jlne.ws/J8SgQY

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MarketsWiki Recent Updates

People

Lawrence H. Summers; Robert Summers; David Stein; Michael Berry; Tom Goodwin; James P. Gorman; Ryan S. Lothian

Miscellaneous

Upcoming Events

Statistics

22,083,552 pages viewed, 6,810 articles, 139,234 edits
MarketsWiki Statistics
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Lead Stories

London Forms Bank Working Group To Expand Yuan-Trading Operations
Dow Jones
The City of London Corp. Wednesday formed a working group with five leading banks as well as U.K. Treasury, the Bank of England and the Financial Services Authority to support growth of yuan business in the city.
http://jlne.ws/IYqFaQ

Quote MTF venue to block unwanted bids
By Philip Stafford – Financial Times
Quote MTF is to launch a share trading platform that allows users to block unwanted interest amid signs of growing industry momentum to offer investors greater choice over their electronic trading counterparty.
http://jlne.ws/IYqFrb

Obama wants to target oil market manipulation
By JIM KUHNHENN – Business Week
President Barack Obama is asking Congress for help in policing oil markets to be on the lookout for price manipulation by speculators. Obama says the country can’t have some speculators reap millions while consumers suffer from high gas prices.
http://jlne.ws/I1OpZa

Fact Sheet: Increasing Oversight and Cracking Down on Manipulation in Oil Markets
Whitehouse.gov
http://jlne.ws/IYqE6D

Outside the Box: Don’t blame speculators for market moves
Market Watch
With crude oil nearing the highs it reached in the 2007-08 commodity boom, there is the usual spate of editorials blaming “speculators” for the prices, writes Aaron Brown.
http://jlne.ws/IYqE6N

What’s Good-And Bad-About Obama’s Plan: Kilduff
CNBC
The futures markets are brutally efficient. The fault of the high gasoline prices lies not with the speculators, but with ourselves.
http://jlne.ws/IYqEn8

Chill winds to blow after Citi pay vote
By Dan McCrum and Tom Braithwaite in New York – Financial Times
Chief executives across the US might have felt a chill when they saw the results of Citigroup’s “say-on-pay” vote. Without an activist campaign or a single galvanising issue, the majority of a diverse and widely distributed group of the bank’s shareholders rejected its executive pay scheme.
http://jlne.ws/IYqDzA

Not if, but when for Spanish bailout, experts believe
Reuters via Yahoo! News
Economic experts watching Spain don’t know how much money will be needed or precisely when, but some are near certain that Madrid will eventually seek a multi-billion euro bailout for its banks, and perhaps even for the state itself.
http://jlne.ws/IYqFrn

Why the eurozone may yet survive
By Martin Wolf – Financial Times
“If the sovereignty of the Union were to engage in a struggle with that of the States at the present day, its defeat may be confidently predicted; and it is not probable that such a struggle would be seriously undertaken … If one of the States chose to withdraw its name from the contract, it would be difficult to disprove its right of doing so; and the Federal Government would have no means of maintaining its claims directly, either by force or by right.”
http://jlne.ws/IYqDzG

MF Global trustee Freeh to testify at Senate hearing
Reuters via Yahoo! News
Former customers of MF Global , waiting for the return of as much as $1.6 billion missing from their accounts, will get their first chance next week to hear testimony from Louis Freeh, the embattled trustee for the bankrupt commodities firm.
http://jlne.ws/IYqFHR

More Than Two-Thirds of North American Bankers Believe Regulatory Burdens and Data Latency Issues Consume Significant Portion of Resources
PR Newswire via Yahoo! Finance
Almost seven out of 10 (68 percent) North American capital markets executives believe a significant portion of their firms’ resources will be consumed by regulatory burdens and data latency issues, while 96 percent admit that stress testing has not addressed all the important risks to the banking system, according to a recent survey by Sybase Inc., an SAP Company and a leading provider of enterprise and mobile software.
http://jlne.ws/IYqFYg

Environmental Trading News

First Solar to be cut from Nasdaq 100 list
Toledo Blade
Solar panel maker First Solar Inc., whose shares already are trading at their lowest price in the company’s six-year history, soon will suffer another indignity — the company is being booted from the Nasdaq 100 Index.
http://jlne.ws/IEWP4i

**JK – Spectacular rise and fall for First Solar. And it ain’t over yet.

Canadian Solar, SkyPower in $187 Million Solar Farm Deal
Bloomberg
Canadian Solar Inc. (CSIQ), a producer of solar cells and panels, formed a joint venture with the renewable-energy project developer SkyPower Ltd. that will provide an outlet for its products in North America and emerging markets.
http://jlne.ws/I0tKos

EU Should Mull Expanding CO2 Cap-and-Trade, Poland Says
Bloomberg
The European Union should consider expanding its emissions trading system to cover the region’s transport industry and shouldn’t judge the effectiveness of the program by a decline in carbon-permit prices, Poland said.
http://jlne.ws/HLxvKM

For more environmental trading news, subscribe to the Environmental Markets version of the John Lothian Newsletter edited by Jim Kharouf.
Visit http://www.jlnenvironmental.comto subscribe.

Exchange & ECN News

CME Clearing Europe, Tradition and ICIS Launch First Cleared Liquefied Natural Gas Swaps
PR Newswire via Yahoo! Finance
CME Clearing Europe, Tradition and ICIS today launched the world’s first cleared liquefied natural gas (LNG) swaps. The over-the-counter swap product will be listed and cleared via CME Clearing Europe and can be traded via Tradition.
http://jlne.ws/IYqGvc

Nasdaq OMX To Transition Forex Options To Mirror Spot-Market Prices
By Chris Dieterich OF DOW JONES NEWSWIRES
Nasdaq OMX Group Inc. (NDAQ) is revamping the way it lists options on foreign currencies, a move that brings spot-market pricing onto a regulated exchange. PHLX Forex Options, pegged to launch June 18, will transition the pricing convention of existing foreign-exchange options listed on Nadaq’s PHLX options exchange to “strike” prices that mirror currency exchange rates.
http://jlne.ws/IYqEni

COMEX Silver Margins Lowered Again
http://jlne.ws/IYqHzk

PLUS Markets Group PLC Update On Formal Sale Process
http://jlne.ws/IYqH2f

NASDAQ OMX Commodities Welcomes Centrica Energy Limited To The UK Power Futures Market
http://jlne.ws/IYqH2g

TMX Group: The MiG Report March 2012
http://jlne.ws/IYqH2p

SIX Swiss Exchange: Shares Of Swiss Finance & Property Investment AG (SFPN) Open At CHF 83.00
http://jlne.ws/IYqH2s

Banks, Brokers & Dark Pools

Citigroup loses advisory vote on executive compensation
Reuters via Yahoo! News
Citigroup Inc shareholders gave a vote of no confidence to the bank’s executive compensation plan on Tuesday, dealing a surprise embarrassment to Chief Executive Vikram Pandit.
http://jlne.ws/IYqHiJ

Citigroup names new chairman to replace Parsons
Associated Press via Yahoo! Finance
Citigroup is naming a new chairman of its board of directors.The country’s third-largest bank named Michael O’Neill its chairman on Tuesday after its annual shareholders meeting.
http://jlne.ws/IYqHiO

Canadian approached for top Bank of England job
By Patrick Jenkins, Chris Giles and Brooke Masters – Financial Times
Mark Carney, the governor of Canada’s central bank, has been informally approached as a potential candidate to replace Sir Mervyn King as head of the Bank of England in June next year.
http://jlne.ws/IYqHiS

Bank of America puts non-U.S. wealth arm up for sale
Reuters via Yahoo! News
Bank of America Merrill Lynch has put its wealth management units outside the United States up for sale, three sources familiar with the situation said, hoping to bring in up to $3 billion for the sub-scale business.
http://jlne.ws/IYqHiZ

ICAP Patent Brokerage Now Accepting Submissions for our Summer 2012 IP Auction
ICAP Patent Brokerage is now accepting submissions for our Summer 2012 IP Auction, July 26th in San Francisco, California. To make a patent submission visit http://icappatentbrokerage.com/auction/submitip/ or contact Dean Becker at Dean.Becker@us.icap.com or 561-309-0011. Please visit http://icappatentbrokerage.com/auction for updates.

ICAP adds wet freight derivatives to ICAP TrueQuote, its screen supported voice-hybrid service for OTC oils
ICAP Energy Limited announced today that it will be extending ICAP TrueQuote – its successful hybrid voice-electronic broking service for OTC crude, fuel oil and middle distillate swaps – to wet freight derivatives. The screen will support ICAP’s fast growing Wet Forward Freight Agreements (FFA) voice broking desk and offers OTC wet freight clients a voice-electronic hybrid service with execution and straight-through-processing to clearing.
http://jlne.ws/IYqKeu

Northern Trust Corporation Reports First Quarter Net Income of $161.2 Million, Earnings Per Common Share of $0.66.
Business Wire via Yahoo! Finance
Northern Trust Corporation today reported first quarter net income per common share of $0.66, up from net income per common share of $0.61 and $0.53 in the first and fourth quarters of 2011, respectively.
http://jlne.ws/IYqKeC

HSBC launching London’s first offshore yuan bond: IFR
Reuters via Yahoo! News
HSBC Holdings PLC plans to issue a yuan-denominated bond in London on Wednesday, the first such issue in the city, marking a milestone in London’s efforts to become a centre for offshore yuan trading alongside Hong Kong.
http://jlne.ws/IYqKuU

Barclays, Standard Chartered Back London Bid for Yuan Hub Status
Bloomberg
Institutions in the U.K. capital currently have more than 109 billion yuan ($17 billion) of customer and interbank deposits in the Chinese currency and that total is “growing strongly,” according to a policy paper prepared by research firm Bourse Consult and released today.
http://jlne.ws/IYqIn3

TD Ameritrade’s Strong Asset Gathering Momentum Continues
Business Wire via Yahoo! Finance
TD Ameritrade Holding Corporation (NASDAQ: AMTD – News) has released results for the second quarter of fiscal 2012. The Company once again gathered assets at an industry-leading, double-digit growth rate and total client assets grew to a new record.
http://jlne.ws/IYqIDk

BNP Joins SocGen in Profit Search as New Rules Squeeze Growth
Bloomberg
BNP Paribas SA (BNP) and Societe Generale SA (GLE) , France’s biggest banks, are struggling to boost profit as efforts to shrink operations by as much as 300 billion euros ($394 billion) cap growth.
http://jlne.ws/IYqIDt

Goldman Sachs 1Q results top Wall Street’s view
Associated Press via Yahoo! News
Goldman Sachs Group Inc.’s first-quarter net income climbed as global markets strengthened but its investment banking business continued to struggle a bit and revenue from institutional client services declined.
http://jlne.ws/IYqIDA

Goldman sees more partner exits
New York Post
Goldman’s spate of high-level departures ain’t over yet.After facing a major brain drain last year that saw more than 50 of the firm’s best-paid and brightest minds hit the exits, Goldman Sachs CFO David Viniar said Wall Street should expect more departures.
http://jlne.ws/IYqIU3

Goldman Sachs CFO To Moodys: You Make No Sense
Wall Street Journal Blogs
Goldman Sachs does not, apparently, take kindly to outsiders attempting to do math on Goldman. Goldman Sachs CFO David Viniar was asked on the bank’s conference call about a possible downgrade by Moodys to Goldman and other investment banks. He responded with a sharp critique of Moody’s ability to analyse.
http://jlne.ws/IYqJap

UK Lawmakers Launch Inquiry Into BOE’s Stability Toolkit
FOX Business
Senior U.K. lawmakers said Wednesday they intend to hold an inquiry into how effective new Bank of England policy tools will be in fostering financial stability.
http://jlne.ws/IYqL23

UBS’s Bourkoff Resigns as Americas Head of Investment Banking
New York Times
UBS’ head of investment banking for the Americas, Aryeh Bourkoff, has resigned to “pursue other opportunities,” the firm announced in an internal memorandum on Tuesday.
http://jlne.ws/IYqL2c

UBS, Barclays Plan To Sell $1.1 Billion Public CMBS Next Week
FOX Business
UBS Securities and Barclays plan to sell $1.1 billion of publicly-registered commercial mortgage-backed securities next week in the second large issue to test a market where demand has simmered down since the first quarter.
http://jlne.ws/IYqJaA

Merrill Lynch Eats Its Own
Jake Zamansky – Forbes
A decade ago, Merrill Lynch was exposed for abusing its clients with tainted research it was peddling. An arbitration panel’s $10.2-million decision against Merrill this month shows that not much has changed in the past ten years at the firm. But now, Merrill Lynch’s management has moved on from abusing its clients to heaping scorn on its own departing brokers.
http://jlne.ws/IYqJaB

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

Mutual funds sue U.S. CFTC over registration rule
Reuters via Yahoo! News
Groups representing mutual funds and businesses filed a lawsuit on Tuesday against the U.S. Commodity Futures Trading Commission, challenging a rule that will require funds to register with the agency in the latest battle against new regulations coming out of Washington.
http://jlne.ws/IYqJqR

Schapiro: Bigger role for economists in SEC rules
Market Watch
WASHINGTON (MarketWatch) – Under pressure from Republicans, Securities and Exchange Commission Chairman Mary Schapiro on Tuesday said the agency has developed new broader economic analysis guidance and expanded the role of economists in the process of writing post-crisis regulations.
http://jlne.ws/IYqJqV

SEC Seeking Fair Value Disclosure From Banks on Structured Notes
Bloomberg
The U.S. Securities and Exchange Commission is asking banks that issue structured notes to boost disclosures to investors, including the banks’ own estimates for the securities’ market value at the time of sale.
http://jlne.ws/IYqJr3

Royal Bank defends ‘wash trades’
By Matthew McClearn – Canadian Business
The celebrated American jurist Learned Hand once said:“There is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible.” Doing so nevertheless often gets people and corporations into trouble. In early April, the U.S. Commodity Futures Trading Commissions lapped a lawsuit on Royal Bank of Canada.
http://jlne.ws/JcHpIF

Regulators to Ease a Rule on Derivatives Dealers
New York Times
The rule would exempt many players in the derivatives market from new regulatory oversight.
http://jlne.ws/IYqLPD

Pursuing Foreign Fraud Claims on American Soil
New York Times
A Securities and Exchange Commission report on whether investors should be able to pursue fraud claims on foreign securities that take place outside the United States may face a hostile reception in Congress.
http://jlne.ws/IYqJHB

IMF chief urges more coordinated bank regulation
Reuters via Yahoo! News
The head of the International Monetary Fund on Tuesday urged more coordinated efforts to strengthen global banking regulations to make the financial sector less prone to crisis. Christine Lagarde, managing director of the IMF, said the global economic recovery was still very fragile and the financial system in Europe under heavy strain.
http://jlne.ws/IYqM64

SIFMA Calls For Reproposed Volcker Rule In Comments To CFTC
http://jlne.ws/IYqJXS

IMF/CFP Policy Roundtable On The Future Of Financial Regulation – Opening Remarks By Christine Lagarde Managing Director, International Monetary Fund, Washington DC, April 17, 2012
http://jlne.ws/IYqJXX

Statement Of CFTC Chairman Gary Gensler
http://jlne.ws/IYqMmI

Statement On President Obama’s Oil Market Proposal, Washington, DC – CFTC Commissioner Bart Chilton
http://jlne.ws/IYqMD8

CME Group Statement Regarding White House Proposal To Increase Oversight Of Energy Markets
http://jlne.ws/IYqJYb

Hedge fund chief faces FSA fine of £1.25m
By Brooke Masters, chief regulation correspondent – Financial Times
UK regulators are seeking to ban and fine a Swiss-based hedge fund manager £1.25m, alleging that he placed improper trades that pushed up the share prices of several of his holdings and boosted his fund’s reported value and his performance fees.
http://jlne.ws/IYqPyJ

Former NutraCea CEO Indicted for Securities Fraud
Bradley David Edson, 51, of Scottsdale, Arizona, was indicted by a federal grand jury on April 11, 2012, for one count of conspiracy to commit securities and wire fraud, one count of securities fraud, nine counts of wire fraud, five counts of false certification on periodic reports, four counts of false statements to auditors of a publicly traded company, and seven counts of transactional money laundering.
http://jlne.ws/IYqPPf

DTCC Media Statement On CPSS-IOSCO Principles For Financial Market Infrastructure
http://jlne.ws/IYqPPm

[ASIC] HSBC to change home loan advertising
http://jlne.ws/IYqPPv

[AMF France] Publication of the final CPSS IOSCO Principles for financial market infrastructures report
http://jlne.ws/IYqNag

Ex-Florida hedge fund manager Nadel dies in federal prison at 80; cheated investors of $168M
Minneapolis-St. Paul Star Tribune
A Florida hedge fund manager sentenced to 14 years in prison after cheating investors of $168 million has died. Bureau of Prisons spokeswoman Traci Billingsley said Tuesday that Arthur Nadel died at the federal prison in Butner. He was 80.
http://jlne.ws/IYqQ5X

Investments – Indexes – Managed Futures – Managed Funds

Bacon’s Spinoffs Falter as Mikheev Said to Liquidate Fund
Bloomberg
Louis Moore Bacon built Moore Capital Management LLC into one of the biggest and most successful hedge funds over more than two decades. His record investing in startups run by former traders is less stellar.
http://jlne.ws/IYqNH8

Paulson goes short on German Bunds
By Sam Jones, Hedge Fund Correspondent – Financial Times
John Paulson, the billionaire hedge fund manager who foresaw the collapse of the US housing market, is shorting German government bonds in a wager that the eurozone debt crisis will significantly deepen in the coming months.
http://jlne.ws/IYqQmk

BlackRock Profit Flat as Revenue Slips
BY MIA LAMAR – WSJ
BlackRock Inc.’s first-quarter profit was roughly flat from a year earlier as lower fees from actively managed investments contributed to a revenue decline.
http://jlne.ws/IYqNHp

MarkitSERV and SWIFT Connect for FX Clearing
MarkitSERV, the most widely used electronic trade processing service for OTC derivative transactions, today announced an agreement with SWIFT, the financial messaging provider for more than 10,000 financial institutions and corporations worldwide, to deliver trades – initially foreign exchange (FX) non-deliverable forward (NDF) transactions – from SWIFT to multiple FX central clearing counterparties (CCPs), via the innovative MarkitSERV FX clearing gateway.
http://jlne.ws/IYqNXM

Hedge Funds Use Donations to Boost Clout
BY ANDREW GROSSMAN – WSJ
Hedge funds have emerged as a force in New York state politics in the past seven years, funneling tens of millions of dollars to political parties, pet causes and candidates from both major parties, according to a report set to be released on Wednesday.
http://jlne.ws/IYqQCN

EDHEC-Risk Alternative Indexes: Stock Markets Continue To Outperform Hedge Funds In March
http://jlne.ws/IYqQCT

Warren Buffett Discloses Prostate Cancer Diagnosis
Forbes
In a letter to shareholders of Berkshire Hathaway Tuesday, billionaire Warren Buffett announced that he has been diagnosed with prostate cancer.
http://jlne.ws/IVpA3u

DTCC Releases Report On March And First Quarter Annuity Product Activity
http://jlne.ws/IYqQD4

Liz Kirscher, President of Morningstar’s Data Division, to Leave the Company
PR Newswire via Yahoo! Finance
Morningstar, Inc. (Nasdaq: MORN – News), a leading provider of independent investment research, today announced that Liz Kirscher, president of the Data division, is leaving the firm in June. The company plans to announce her successor in the coming months.
http://jlne.ws/IYqOuL

Barclays Announces Closing of Three iPath Exchange-Traded Notes Offerings
http://jlne.ws/IYqQTB

Technology News

Banco Leon Selects SunGard’s Ambit Treasury Management to Support Business Growth
Banco Leon, a leading commercial bank in the Dominican Republic, has selected SunGard’s Ambit Treasury Management to help streamline its treasury operations, improve risk management and support business growth.
http://jlne.ws/IYqOLk

ConvergEx Group’s RealTick Sponsors Stevens Institute of Technology’s Financial Systems Laboratory
PR Newswire
ConvergEx Group, a leading technology company, today announced that RealTick LLC has donated 35 RealTick trading terminals to the new, cutting-edge Financial Systems Center at the Stevens Institute of Technology.
http://jlne.ws/IYqR9X

ConceptONE, LLC announces expansion of reporting services to support Open Protocol Enabling Risk Aggregation (OPERA) Standards
http://jlne.ws/IYqP1M

Media News

In Facebook Deal, Board Was All But Out of Picture
BY SHAYNDI RAICE, SPENCER E. ANTE AND EMILY GLAZER – WSJ
On the morning of Sunday, April 8, Facebook Inc.’s youthful chief executive, Mark Zuckerberg, alerted his board of directors that he intended to buy Instagram, the hot photo-sharing service. It was the first the board heard of what, later that day, would become Facebook’s largest acquisition ever, according to several people familiar with the matter.
http://jlne.ws/IYqP1S

Two thirds of web ‘cookies’ are for ads
By Maija Palmer, technology correspondent – Financial Times
More than two-thirds of the “cookies” on the UK’s most popular websites are for advertising purposes, a new study has found, helping explain why some companies may be reluctant to comply with new laws coming into force next month.
http://jlne.ws/IYqP1W

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

Singapore Exchange Profit Up 16%, Derivatives Help
CNBC
Singapore Exchange , Asia’s third-biggest listed bourse, reported a 16 percent rise in quarterly profit as higher revenue from derivatives partly made up for a drop in securities income.
http://jlne.ws/IYqPig

Release of “TSE Magazine ‘Evolving Japan’” Issue #2
Tokyo Stock Exchange Group, Inc. (TSE) launched “TSE Magazine ‘Evolving Japan’”, TSE’s PR magazine targeting overseas investors in December 2011. With the positive response received from readers, TSE is proud to announce the release of the second issue of “Evolving Japan”.
http://jlne.ws/IYqRGY

TAIFEX Monthly Newsletter- April 2012
http://jlne.ws/IYqRH0

Tokyo Grain Exchange: The Starting Price For The Rice October 2012 Contract Month
http://jlne.ws/IYqRH1

Shanghai Stock Exchange, Shanghai Securities Regulatory Bureau Co-host Training Class for Guiding Rational Investment
http://jlne.ws/IYqRH6

Tokyo Grain Exchange: Grading Table For Azuki from November 2012
http://jlne.ws/IYqRH9

Hong Kong’s Securities And Futures Commission Bans Ng Chi Keung For 10 Years
http://jlne.ws/IYqRXw

Frontier Markets

Market focus: Boom time in Mumbai
FOW
Indian currency contracts are booming with the most traded contracts changing hands hundreds of millions of times a year. Galen Stops travelled to Mumbai to find out the reasons behind the success of the contracts and who is trading them. Indian currency contracts are among the most traded derivatives contracts in the world despite the immaturity of the market and the fact that the Indian markets are closed to foreign traders.
http://jlne.ws/HTpPfB

New rules for revamped Nigeria bourse from next month
Reuters via Yahoo! News
Nigeria’s Stock Exchange is three weeks away from completing a revamp that will see it relax restrictions on price swings, adopt the Nasdaq platform, open into U.S. trading hours and allow short selling, its executive director said on Tuesday.
http://jlne.ws/IYqSKY

Private equity firm ECP targets east Africa
Reuters via Yahoo! News
Africa-focused private equity firm Emerging Capital Partners is planning to deploy a “significant amount” of capital in fast-growing east Africa and plans to open an office in Kenya later this year, a senior executive said on Tuesday.
http://jlne.ws/IYqUT4

Banque Saudi Fransi Sets Up $2 Billion Islamic Bond Program
Bloomberg
Banque Saudi Fransi, a Saudi Arabian lender part-owned by Credit Agricole SA (ACA) , set up a $2 billion Islamic bond program as part of the Riyadh-based lender’s plans to diversify its sources of financing.
http://jlne.ws/IYqUTb

The Egyptian Exchange (EGX) Opens Its New Premises
http://jlne.ws/IYqUTk

DIFC: More Than 350 International Takaful Leaders Gather In Dubai For The 7th Annual World Takaful Conference (WTC 2012)
http://jlne.ws/IYqV9B

U.S. Trade Associations Urge Treasury Secretary Geithner To Address Concerns With India’s Finance Bill
http://jlne.ws/IYqV9I

The New “BRICs”
Yahoo! Finance: The Daily Ticker
The BRIC countries-Brazil, Russia, India and China-were the stars of emerging markets in the last decade, but now their growth is slowing. So who will be the next big leaders among developing economies?
http://jlne.ws/IYqTi7

Miscellaneous News

Uber’s Disruptive Technology Shows How We Need More of Capitalism’s Destruction
Tim Worstall – Forbes
Any number of people will offer you their opinions on why economic growth seems to have flatlined in recent decades as compared to those glory days after WWII. Some of these opinions might even have more than a grain of truth to them, others not so much. But it’s possible to use the case of Uber as a guide to at least one of our underlying problems.
http://jlne.ws/IYqVqb

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