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John Lothian Newsletter: ELX Plans Agricultural Futures In Challenge To CME; Trading firms in uproar over Nasdaq OMX’s clearing U-turn; Derivatives Overhaul Inevitable, But Trade Group Sees Delays

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

ELX Futures has plans to launch a set of new contracts for agricultural products, hoping for a wider stance to take on CME Group. Nasdaq OMX announces that it will delay Nordic clearing reforms, and that doesn’t sit well with trading firms, who had been buying new infrastructure in order to prepare for the changes. Sentiment at the Chicago ISDA conference points to the implementation of some new derivatives reform, but participants are hopeful they can hold some of it off for the time being. The Asia section has the first trickle of volume reports for the month of April. In the top box, you’ll find a JLN Metals interview with Harriet Hunnable of CME Group, discussing the copper market and CME’s related products; and an explanation of how neutrinos will give low-latency traders a light-speed edge… or faster than light speed, depending on what those CERN experiments come up with later this year.

Observations – Statistics – Commentary

ELX Plans Agricultural Futures In Challenge To CME -Sources
By Jacob Bunge Of DOW JONES NEWSWIRES
ELX Futures LP plans to launch a slate of agricultural contracts, according to people familiar with the matter, in a move that would broaden its challenge to CME Group Inc. (CME), which dominates U.S. trade in futures linked to grains, energy and financials.
http://jlne.ws/ID2mOO

**** There is no drought of competition in the ags. Competition in ags is growing. I can’t wait for some of the headlines coming for this exchange competition battle.

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Exclusive: CME readies round-the-clock grains trade: sources
K.T. Arasu and Ann Saphir | Reuters
CME Group Inc will extend trading hours for its hallmark grain contracts, two sources close to the matter said on Monday, as the Chicago exchange moves to defend its turf against rival ICE‘s bid for nearly round-the-clock transactions.
http://jlne.ws/ID2oWN

CME Group says no announcement on ag trading hours
Reuters
CME Group Inc on Monday said it had no formal announcement regarding widespread rumors that the exchange was considering expanding the trading hours for its grain and oilseed futures, a spokesman said.
http://jlne.ws/K35GUN

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NYSE CEO Sees High-Speed Firms Heading For Dark Pools
By Jacob Bunge Of DOW JONES NEWSWIRES
Regulatory scrutiny around high-speed trading strategies appears to be pushing the business away from stock exchanges and into lesser-regulated platforms such as “dark pools,” according to the top executive of NYSE Euronext.
http://jlne.ws/ID2oGq

**** It is always better to swim where it is clear or well lit.

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Deutsche Börse completes Eurex takeover
Deutsche Börse Group today completed its full acquisition of Eurex Zürich AG. Representatives of SIX Swiss Exchange/SIX Group AG and Deutsche Börse AG jointly finalized the transaction in Zurich and signed the corresponding closing documents.
http://jlne.ws/ID2nlV

**** The one European exchange buyout that worked.

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Deutsche Börse receives three Global ETF Awards in New York
At this year’s 8th Annual Global ETF Awards in New York Deutsche Börse received awards in the following categories for the eighth consecutive time: “Exchange with the largest number of primary listed ETFs in Europe”, “Largest Exchange for ETFs by Dollar Turnover in Europe” and “Most Proactive ETF Exchange in Europe”.
http://jlne.ws/ID2oWS

**** The also won “Exchange Most Likely to Win an ETF Award.”

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JLN Metals Newsletter: Five Minutes With Harriet Hunnable, CME Group
Harriet Hunnable is the managing director for metals products at CME Group. She sat down with editor/producer Nicole V. Rohr to discuss copper futures, which hit a record volume of 127,276 contracts on April 10. Hunnable also discussed the benefits of average price contracts, like CME Group’s new copper calendar swap contract launched on March 12.

Q: What is so intriguing about copper, and how does it differ from other metals?

A: Copper is a very good indicator of industrial production and we’re very focused today on where the growth is strongest, and where there is reception. It provides a commodity index for industrial activity. And the other thing about copper is it’s a liquid contract, and people are very familiar with copper trading in Asia, as well as in Europe, the Middle East, Africa and the United States. So you’ve got a very broad appeal as an established market globally. There’s a big Asia story around copper — it’s a very well known market for trading.

Q: In terms of market participants, who generally expresses the most interest in copper futures?

A: We have a very good, wide set of clients and we’ve seen growth and activity across the different groups in copper. So, be that individual traders or institutional hedge fund activity or commercial activity — we’ve seen growth from all of them in managing price risk or taking on exposure to this market. So, I would have to say that we have seen activity across all of those client groups at CME.

Q: Were you expecting copper futures to hit a volume record when it did, and what factors explain that surge?

A: We didn’t make predictions on prices or on actual levels of trading but we have seen a trend throughout 2011 of increasing activity on our copper contract on CME, and that is continuing to grow and it’s broken records in trading volume on particular days in 2012. And we’ve seen that there’s more potential for that activity to grow, given the wide range of participants that we have and the fact that we offer such good liquidity to people that want to trade. So we’re seeing a real interest in the metal, but also in trading on CME’s Globex platform. They’re finding liquidity on our platform, and that’s true for the Asian market activity, as well as European hours and U.S. hours.

For the rest of the interview and daily news for the metals sector, visit the JLN Metals website at http://jlne.ws/Kqo5W6

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NFA‘s News, Facts, Actions – Spring 2012
-> SRO Committee publishes recommendations to better protect customer funds in light of MF Global
-> Registration and compliance obligations for CPOs and CTAs
-> NFA assists FBI in catching white collar criminals – Part II
-> Board Actions
-> News Briefs
http://jlne.ws/9A3hzd

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Commodities price agencies propose rules
By Javier Blas in London – Financial Times
The world’s main price reporting agencies in commodities have proposed a self-regulating code of conduct as regulators push for more transparency. The publication of the draft code comes as several market participants have asked the International Organization of Securities Commissions, an umbrella group of regulators, to push for more transparency and, in some cases, impose oversight.
http://jlne.ws/ID2pdo

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Still hacking away at HFT
Steve Grob – FOW
Had a distinct sense of déjà vu at TradeTech in London last week. Seems like much of the debate and chatter was the same as it was last year – HFT, ill thought through regulation, etc. It struck me, though, that maybe the regulators should let the market decide what is good or bad for us rather than agonising over these issues on our behalf.
http://jlne.ws/ID2mym

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Neutrinos to Give High-Frequency Traders the Millisecond Edge
Forbes
Eighty some years after Wolfgang Pauli first postulated its existence, the lowly neutrino is now on the cusp of being harnessed to facilitate automated high-frequency trading through earth itself. That is, if this weakly-interacting, electrically-neutral subatomic particle can be successfully time-encoded and pointed from one financial center to another.
http://jlne.ws/ID2pdu

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CNBC ‘freaking out’ over decline in ratings for Andrew Ross Sorkin and Maria Bartiromo
NEW YORK DAILY NEWS
Andrew Ross Sorkin is apparently not too big to tank. The same goes for “Money Honey” Maria Bartiromo. CNBC insiders tell us executives at the cable business channel are “freaking out” because viewership levels are down essentially across-the-board, particularly with its marquee shows, “Squawk Box” and “Closing Bell.”
http://jlne.ws/Ihn1my

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Chicago Algorithmic Trading Conference, June 7, 2012, Hilton Chicago
OptionsCity Software
Algorithmic developers are leading the charge in a trading environment that is changing faster than ever before. The Chicago Algorithmic Trading Conference presents an afternoon of sessions detailing the hottest topics and trends pulsating throughout the financial technology community. Expand and challenge your knowledge base at versatile presentations and interactive panel discussions from leading algorithmic trading experts. Participate in the workshop and open crowd discussions while harnessing cutting-edge ideas from industry peers. The day wraps up with an industry meet-and-greet and networking reception that includes an open bar and hors d’oeuvres.
http://jlne.ws/ICUxbM

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MarketsWiki Page of the Day
Margaret Williams
http://jlne.ws/IOQA2N

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MarketsWiki Recent Updates

People

Nicole V. Rohr; Harriet Hunnable; Margaret Williams

Companies, Organizations and Groups

Basel Committee on Banking Supervision; Cortland Capital Market Services LLC; CETIP

Miscellaneous

Exchange-traded derivative; Buy side; Upcoming Events

Statistics

22,714,813 pages viewed, 6,837 articles, 139,639 edits
MarketsWiki Statistics
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Lead Stories

Trading firms in uproar over Nasdaq OMX’s clearing U-turn
Michelle Price – Financial News
Nasdaq OMX is under fire from Europe’s trading firms following its surprise decision to delay planned clearing reforms to its Nordic markets, due to go live this month.
The exchange said in March that it had decided to postpone the introduction of a choice of clearing providers – a model known as interoperability – because of ongoing regulatory uncertainty. The U-turn has caused uproar among the exchange’s member trading firms, which had invested in additional infrastructure in readiness for the scheduled April launch.
http://jlne.ws/ID2pdA

Derivatives Overhaul Inevitable, But Trade Group Sees Delays
By Katy Burne Of DOW JONES NEWSWIRES
Regulations stemming from the Dodd-Frank financial overhaul law — which bankers fear will crimp their profits in the sometimes complex derivatives called “swaps” — may yet be watered down, but the rules are unlikely to be repealed altogether.
http://jlne.ws/ID2mOR

Chicago aims for share of OTC derivatives
By Hal Weitzman in Chicago and Telis Demos in New York – Financial Times
Chicago’s trading community is stepping up its attempt to wrest control of over-the-counter derivatives markets from New York-based dealer banks. New York’s vice-like grip on over-the-counter derivatives may loosen with the implementation of rules stemming from the Dodd-Frank Act, which overhauled US markets in the wake of the financial crisis. Stricter capital requirements are also making it harder for big banks to take on customers’ risk.
http://jlne.ws/ID2mOW

Legal Eagles in Cross Hairs
By JEAN EAGLESHAM – WSJ
The Securities and Exchange Commission is intensifying its scrutiny of lawyers who gave a green light to certain mortgage-bond deals before the financial crisis or have tried to thwart investigations by the agency, according to people familiar with the matter.
http://jlne.ws/ID2pu4

CME Group: Gold’s Slide Triggered Brief Trading Halt
Dow Jones
CME Group Inc. (CME) instigated a brief trading halt in gold futures Monday morning amid a violent downdraft in gold prices, the exchange told Dow Jones Newswires.
http://jlne.ws/ID2n5g

Ireland: Euro’s stability at risk in referendum
Associated Press via Yahoo! News
The Irish government launched its campaign Monday to secure public support for the European Union’s fiscal treaty, and warned that rejection could ravage Ireland’s financial future and destabilize the euro currency.
http://jlne.ws/ID2pKm

EU: Growth Strategy Not Alternative To Fiscal Consolidation
Dow Jones
Efforts to find ways to boost regional growth aren’t an alternative to fiscal consolidation, a European Commission spokeswoman said Monday, as she played down weekend media reports that talked of massive new European Union-funded investment projects.
http://jlne.ws/ID2n5p

Now is not the time for boring central bankers
By Philipp Hildebrand – Financial Times
What makes for good central banking? Mervyn King’s response to this question is recalled with fondness by governors. In a delightful lecture in Plymouth more than a decade ago, he said that the Bank of England should aspire to be boring, for the simple reason that “boring is best”.
http://jlne.ws/ID2pKu

Quick View: OTC fight heads to Chicago
By Telis Demos and Hal Weitzman in Chicago – Financial Times
The selection of Chicago as the site of this year’s International Swaps and Derivatives Association annual meeting, just a few “L” train stops away from the city’s listed derivatives exchanges, may be just a coincidence. But ISDA taking its issues to the mid-west city neatly encapsulated the challenge faced by the New York dealer-dominated world of privately-negotiated, bilateral derivatives.
http://jlne.ws/ID2pKy

An accident waiting to happen
Richard Jones – FOW
As the chart below shows, from late July the Dow was showing that there was virtually no support at all, and what resistance there was resided at 12700. Sobering. This study of futures and options might not predict what will happen, but it most certainly predicts what could happen.
http://jlne.ws/ID2nlN

Environmental Trading News

Viewpoints: Cap and trade has lessons for California
Sacramento Bee
It’s not often that we Northeasterners get to brag about setting a trend that Californians are following. But when it comes to creating a cap-and-trade system for greenhouse gas emissions, we are the nation’s first. And as California works to implement a carbon market of its own, Californians can learn from the Northeast’s experience.
http://jlne.ws/JNYsTo

**RKB – Paul Hibbard, a consultant, is former chairman of the Massachusetts Public Utilities Commission.

Revised auction schedule a short-term fix – Ieta
Argus Media
Amending the auction schedule, as proposed by EU climate action commissioner Connie Hedegaard this month, is only a short-term fix to the EU emissions trading scheme (ETS), International Emissions Trading Association (Ieta) European policy director Simone Ruiz told Argus.
http://jlne.ws/IBYuNY

Attention focuses on ICAO as emission trading row rumbles on
Flight Global
During the past few months the European Union has suffered blow after blow over its decision to include aviation in its emissions trading system. Ask people why they are so against the EU ETS and the response is likely to include the words “global solution” and “ICAO”. They will argue that, as a global industry, aviation’s carbon dioxide (CO2) emissions should be regulated at a global level, not via regional schemes. And they will pitch the International Civil Aviation Organisation as the best platform through which to produce such a system.
http://jlne.ws/IBYFJf

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

UPDATE: CME, Eris Offer Margin Efficiencies; BlackRock On Board
By Katy Burne Of DOW JONES NEWSWIRES
A pair of Chicago-based futures exchanges are planning to allow customers to use the same capital to backstop offsetting positions in different kinds of interest-rate derivatives traded on their separate exchanges, boosting the appeal of their platforms to customers looking to cut down on trading costs amid a regulatory overhaul.
http://jlne.ws/ID2pKB

Hong Kong Bourse Studies Making Bid for London Metal Exchange
By Eleni Himaras and Jonathan Burgos – Bloomberg
Hong Kong Exchanges & Clearing Ltd., Asia’s largest bourse operator, said it’s studying a bid for the London Metal Exchange as growth slows and it seeks to build up a commodities business.
http://jlne.ws/ID2nlS

Hong Kong Exchanges & Clearing / LME
Lex – Financial Times
There, they’ve said it. Hong Kong Exchanges & Clearing is the first bidder to confirm publicly its interest in the London Metal Exchange. The bidding deadline for the centre of the metals world is Monday and HKEx will probably be up against an exchange world who’s who, including NYSE Euronext, CME Group and IntercontinentalExchange.
http://jlne.ws/ID2q0R

CME Group Expands Multi-Asset Class OTC Offering with First Cleared FX Non-Deliverable Forward
CME Group, the world’s leading and most diverse derivatives marketplace, announced today that on April 27 the company cleared its first customer FX Over-the-Counter Non Deliverable Forward (NDF) trade, further expanding the company’s market leading OTC solution across multiple asset classes. The currency cleared was the Brazilian Real. The company also offers NDF clearing for the Chinese Renminbi Yuan, Philippine Peso, Malaysian Ringgit, Indian Rupee, Korean Won, Taiwan Dollar, Chilean Peso, Colombian Peso, Peruvian Sol, Russian Ruble and Indonesian Rupiah.
http://jlne.ws/ID2q0Y

ICE Futures to Grade Brazilian Coffee
Zacks via Yahoo! Finance
IntercontinentalExchange will start grading Brazilian arabica coffee by ICE Futures U.S. from June this year.
http://jlne.ws/ID2q16

Clearstream to join TARGET2-Securities
Clearstream announced today that the central securities depository (CSD) for Germany, Clearstream Banking AG, will join the European Central Bank’s TARGET2- Securities (T2S) initiative. T2S is a central pan-European settlement infrastructure platform for the cross-border and domestic settlement of securities against central bank money.
http://jlne.ws/ID2qhn

ISE Premium Hosted Database Launches with Comprehensive Tick Data and Analytics
The International Securities Exchange announced today that it has launched the ISE Premium Hosted Database. ISE PhD is a fully managed historical tick database that offers full OPRA data including all quotes and trades from all exchanges, U.S. equities level one data, pre-computed implied volatilities and Greeks, full corporate action histories, and ISE Open/Close trade data.
http://jlne.ws/ID2nCm

BATS Chi-X Europe Completes Technology Migration – Chi-X Europe Order Books Now Live On BATS Technology Platform
BATS Chi-X Europe, the largest pan-European equities market operator by market share and notional value, today announced it successfully completed the transition of the Chi-X Europe order books to the BATS technology platform.
http://jlne.ws/ID2nCr

Trading In Irish Market Up 26% To Over E10bn
Press Release
http://jlne.ws/ID2nCs

[CBOE] May 2012 Fee Changes
http://jlne.ws/ID2qxY

2012 NASDAQ OMX Analyst/Investor Day
http://jlne.ws/ID2qy2

BM&FBOVESPA Closed On Tuesday May, 1st – Labor Day
http://jlne.ws/ID2qhz

NZX Advises Results Of Resolutions At Annual Meeting 30 April 2012
http://jlne.ws/ID2qy3

Athens Exchange: Market Operations Committee Decision
http://jlne.ws/ID2qy8

Direct Edge Trading Notice #12-18: Update: Message Efficiency Incentive Program Postponed Until June 1, 2012
http://jlne.ws/ID2qyb

Direct Edge Trading Notice #12-17: Transaction Pricing Changes On EDGA And EDGX Effective Tuesday, May 1, 2012
http://jlne.ws/ID2td7

Banks, Brokers & Dark Pools

Fed Said to Criticize Banks on Risk Models in Stress Test
Bloomberg
The Federal Reserve criticized how some of the 19 largest U.S. banks calculated potential losses and planned dividends in this year’s stress tests, people with knowledge of the process said.
http://jlne.ws/ID2qOs

BofA to Cut From Elite Ranks
BY DAN FITZPATRICK AND DANA CIMILLUCA – WSJ
Amid the banking industry’s relentless belt-tightening, even Bank of America Corp.’s moneymakers aren’t safe. The Charlotte, N.C., company is planning about 2,000 staff cuts in its investment banking, commercial banking and non-U.S. wealth-management units, said people familiar with the situation.
http://jlne.ws/ID2qOv

Ex-Icap equities chief joins WH Ireland
Tim Cave – Financial News
Glenn Poulter, a former head of equities at Oriel Securities and the banker hired to spearhead Icap’s ill-fated push into equities in 2010, has re-emerged at the small-cap broker WH Ireland, Financial News has learned. Poulter, who left Oriel in December, has been hired into institutional sales at WH Ireland, according to sources familiar with the situation.
http://jlne.ws/ID2qOF

Knight Appoints Albert C. Maasland As Senior Managing Director, Head Of International
PR Newswire
Knight Capital Group, Inc. today announced the appointment of Albert C. Maasland as Senior Managing Director, Head of International with responsibility for the development and growth of operations in the UK, continental Europe and Asia. He will report to Chairman and Chief Executive Officer Tom Joyce and join the firm’s executive committee.
http://jlne.ws/Ks9N7o

SunGard Study Reveals Almost Half of Corporations are Willing to Switch Banks for Better Payments Services
PRWeb
SunGard today released the results of a recent Corporate B2B Payments Study: “Consolidated Payables Solutions: What do Corporations Want from their Banking Partners?”. The study captured perspectives from 171 respondents representing a wide cross-section of corporations from multiple industries and ranging in size from under $250 million to over $5 billion in annual revenue. Among the key findings, 45% of those responding to the question said they would be willing to leave their current bank if they believed another bank offered better payment services.
http://jlne.ws/ID2tde

JPMorgan, Morgan Stanley Pay Plans Win ISS Endorsement
Bloomberg
JPMorgan Chase & Co. (JPM) and Morgan Stanley’s executive compensation packages received endorsements from ISS Proxy Services USA, the firm whose negative recommendation helped sink a similar plan at Citigroup Inc.
http://jlne.ws/ID2tdk

Barclays Hires Moehr for Zurich Office Targeting Rich Russians
Bloomberg
Barclays Plc (BARC) hired Martina Bigliardi Moehr from Credit Suisse Group AG’s Clariden Leu unit to open and head a new Zurich office that will offer private banking services to ultra-wealthy Russian clients.
http://jlne.ws/ID2ttB

Lloyds swings back into profit
By Adam Jones – Financial Times
The rising cost of payment protection insurance mis-selling has eaten into first-quarter profits at Lloyds Banking Group, prompting its chief executive to attack companies who manage compensation claims on behalf of consumers.
http://jlne.ws/ID2r4X

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

FSA prepares crackdown on market abuse
Tim Cave – Financial News
The Financial Services Authority is to mount spot checks on UK trading firms for the first time as part of its escalating crackdown on market abuse and insider trading. The regulator is to demand details of how firms report trades executed on their own account and on behalf of clients, which it will then study for evidence of market abuse.
http://jlne.ws/ID2ttK

DealBook: Taking Aim at the Foreign Corrupt Practices Act
New York Times
Though business groups are pushing for changes in the Foreign Corrupt Practices Act, recent scandals may put legislative efforts to change it on the back burner.
http://jlne.ws/ID2r53

SEC Charges Mother, Daughter, and Their Attorney in Illegal Penny Stock Scheme
The Securities and Exchange Commission today charged a mother and daughter along with their attorney in a scheme to unlawfully acquire and sell billions of shares of penny stock in unregistered transactions.
http://jlne.ws/ID2tK5

FSA secures four and a half year jail sentence for man convicted of laundering boiler room funds
Michael McInerney of Richmond, North Yorkshire, has been convicted of three counts of money laundering and sentenced to four and half years in jail, to be served concurrently, following a joint investigation by the Financial Services Authority (FSA) and City of London Police (CoLP).
http://jlne.ws/ID2r58

FSA launches redress scheme consultation for Arch cru investors
The Financial Services Authority (FSA) has today launched a three-month consultation on establishing a consumer redress scheme, which could deliver more than £100 million compensation to investors who were mis-sold the CF Arch cru Investment and Diversified funds.
http://jlne.ws/ID2r5b

Regulatory Focus on Hedge Funds Continues
Forbes
The regulatory focus on hedge funds continued during the first quarter of 2012, as new iniatives continued to roll out, and milestones in the implementation of rules put on the books last year were hit.
http://jlne.ws/ID2rlq

Finance and fraud: Serious shortcomings
By Ed Hammond and Caroline Binham – Financial Times
Lord Justice Thomas had heard enough. One of Britain’s most senior judges had sat through two hours of excuses from the country’s leading fraud-busting agency about mistakes in a case involving a pair of London’s most flamboyant property entrepreneurs, the Tchenguiz brothers.
http://jlne.ws/ID2tKa

George Canellos Named Deputy Director Of SEC Enforcement Division
http://jlne.ws/ID2rlu

Statement By U.S. Department Of The Treasury Assistant Secretary For Economic Policy Jan Eberly For The Treasury Borrowing Advisory Committee Of The Securities Industry And Financial Markets Association
http://jlne.ws/ID2tKk

Canadian securities regulators grant Designated Rating Organization status under new regulatory framework
The Canadian Securities Administrators announced today the official designation of DBRS Limited, Fitch, Inc., Moody’s Canada Inc., and Standard & Poor’s Rating Services (Canada) as Designated Rating Organizations (DROs) under applicable Canadian securities laws, as contemplated under National Instrument 25-101 Designated Rating Organizations (NI 25-101).
http://jlne.ws/ID2rlB

Investments – Indexes – Managed Futures – Managed Funds

Hybrid debt: a new old way to lose money?
By Satyajit Das – Financial Times
American comedian Will Rogers observed that: “You can’t say civilisation don’t advance… in every war they kill you in a new way.” In each phase of markets, investors find new old ways to lose money. Driven by persistently low interest rates, investors are purchasing risky but high-yielding hybrid capital instruments such as contingent convertible bonds or “cocos”.
http://jlne.ws/ID2rBX

ISDA To Decide On CDS Rules Revamp ‘Within Weeks’ -Lawyer
By Katy Burne Of DOW JONES NEWSWIRES
A financial-market trade group will decide on potential revisions to legal wording governing the $32 trillion credit-default swap market “within weeks,” according to one of its lawyers, following grievances from buyers who worried they weren’t adequately covered going into the Greek debt restructuring.
http://jlne.ws/ID2u0B

***JM: Story from yesterday; now with a link outside the paywall.

Bond Market Discovers New Galaxy For Trading
By Francesco Guerrera
A Copernican revolution is under way in the global market for corporate bonds. A system that once revolved around banks willing to “make a market” by matching bids and offers for thousands of fixed-income securities is being overhauled. Wall Street institutions, known as dealers, are being pushed away from the center of the fixed-income galaxy by regulations, market turmoil and financial constraints.
http://jlne.ws/ID2u0C

Man Group fails to offset redemptions
By Simon Mundy – Financial Times
Man Group, the world’s largest listed hedge fund, reported a small increase in funds under management in the first quarter but continued to suffer net outflows as investors worried about poor performance at its flagship computer-driven fund.
http://jlne.ws/ID2rC3

Man Group interim management statement for the quarter ended 31 March 2012
Funds under Management (FUM) at 31 March 2012 of $59.0 billion (31 December 2011: $58.4 billion)
Reduced net outflows in the quarter of $1.0 billion comprising sales of $3.1 billion and redemptions of $4.1 billion
http://jlne.ws/ID2rC7

For Europe ETFs, It Is Hard To Beat Switzerland
Zacks via Yahoo! Finance
In the European ETF category, investors have a wealth of choices. Some might be better of taking a closer look at the two Swiss ETFs that are on the market.
http://jlne.ws/ID2rCb

Largest Funds Continue to Dominate Hedge Fund Industry, According to PerTrac’s Annual Database Study
Business Wire via Yahoo! Finance
The “billion dollar club” is still the great colossus of the hedge fund world. Single-manager hedge funds with greater than $1 billion under management account for a mere 3.9% of reporting funds, but they control about 60% of the total single-manager hedge fund assets, according to a study conducted by PerTrac, the provider of analytics, risk and communications software for hedge funds, funds of funds and other institutional investors.
http://jlne.ws/ID2rSt

Dow Jones Indexes Named Most Innovative ETF Index Provider For The Americas
Dow Jones Indexes announced today it was named the “Most Innovative ETF Index Provider” for the Americas region at the 8th Annual Global ETF Awards on April 26.
http://jlne.ws/ID2uh9

STOXX Limited Named “Most Innovative ETF Index Provider For Europe” For Third Time
STOXX Limited, the market-moving provider of innovative, substantial and global index concepts, today announced that it has been named “The Most Innovative ETF Index Provider Europe 2011”.
http://jlne.ws/ID2rSw

Divide and Conquer ETFs
Forbes
Exchange-traded products (ETPs) are a disorganized mess. The industry needs standardized product groupings so that investors have an easier time sorting and comparing funds. I propose a “first cut” classification method that sorts ETPs into four basic categories.
http://jlne.ws/ID2rSz

ISDA Highlights Safe And Efficient Global Derivatives Markets At The Association’s 27th Annual General Meeting
http://jlne.ws/ID2uhe

Guggenheim Investments Exchange Traded Funds Declare Monthly Distributions
http://jlne.ws/ID2rSG

U.S. Treasury Announces Marketable Borrowing Estimates
http://jlne.ws/ID2rSI

Graco Shareowners Back CalPERS Proposal For Majority Vote In Board Elections
http://jlne.ws/ID2uhh

Platts Data Selected As Basis For CME’s U.S. Midwest Aluminum Swap Futures
http://jlne.ws/ID2uhk

Technology News

Financial Services Industry Rallies Around OpenMAMA Project as it Delivers First Release
OpenMAMA, a Linux Foundation Labs (https://www.linuxfoundation.org/labs) project, today announced the availability of OpenMAMA 2.1, the open source Middleware Agnostic Messaging API and the first neutral standard in data messaging for financial services.
http://jlne.ws/ID2uhn

Financial Firms Zoom in on Lowering Total-Cost-of-Ownership, Says TABB in New Research Examining IT Trends
Business Wire via Yahoo! Finance
At a time when the global capital markets industry is weathering an uncertain period of declining profit margins and layoffs, financial firms are reinventing their IT infrastructures to help clear a path through the uncertainty, according to TABB Group in new research examining international IT trends.
http://jlne.ws/ID2uxD

Media News

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, Shenzhen Exchanges to Cut A-Share Trading Fees
Bloomberg
China’s two stock exchanges will lower fees charged for trading yuan-denominated shares by 25 percent with effect from June 1, the nation’s securities regulator said in a statement on its website today.
http://jlne.ws/ID2s98

BSE Limited: Appointment Of Shri Ashishkumar Chauhan As Interim CEO Of The Exchange
http://jlne.ws/ID2s9b

SGX appoints Christine Lie as Chief Representative for Beijing Office
Singapore Exchange (SGX) is pleased to appoint Ms Christine Lie as Chief Representative for SGX Beijing Representative Office, replacing Mr Lloyd Loh. Ms Lie first took office as Head of Listings (China) in November last year and will begin her new role with effect from 1 May 2012.
http://jlne.ws/ID2uxN

Where China Is a Hot Topic, Even at Lunch
By KEVIN ROOSE – NY Times
The Milken Institute Global Conference has a reputation for being dominated by financiers in suits. But although a dress code of business attire is unofficially enforced, DealBook has met many attendees who don’t work on Wall Street. (We particularly liked our conversation with the founder of a technology firm who had strong feelings about United States maritime laws.)
http://jlne.ws/ID2spv

ASEAN Exchanges Firm Up Launch Of ASEAN Trading Link
http://jlne.ws/ID2uxV

[OSE] Trading Overview in April 2012
http://jlne.ws/ID2spC

[TFX] Trading Volume in April 2012
http://jlne.ws/ID2spG

Tokyo Grain Exchange Monthly Trading Report – April 2012
http://jlne.ws/ID2spM

Osaka Securities Exchange Trading Overview For April 2012
http://jlne.ws/ID2spN

Tokyo Commodity Exchange: Final Settlement Price Of Crude Oil For April 2012 Contract
http://jlne.ws/ID2uOi

Tokyo Financial Exchange: Termination Of Daily Update Of Exchange FX Margin Contracts Open Interest Data
http://jlne.ws/ID2uOj

HKEx: Report On Initial Public Offering Applications, Delisting And Suspensions – As At 30 April 2012
http://jlne.ws/ID2sG6

Frontier Markets

Saudi Headed for Emerging Status to Schroder on MSCI Coverage
Bloomberg
MSCI Inc. (MSCI) ‘s move to resume coverage of Saudi shares in standalone indexes could pave the way for emerging-market status should the market open to foreign investors, Schroder Investment Management Ltd. and Citigroup Inc. said.
http://jlne.ws/ID2sG7

Mobius says India’s proposed tax rules a ‘big mistake’
Reuters
India is faltering as an investment destination because of significant policy mistakes and stock prices there will slide if the nation’s credit rating is cut, according to Mark Mobius, one of the world’s best-known emerging market investors.
http://jlne.ws/ID2sGc

Abu Dhabi Securities Exchange Signs MoU With REIDIN
Press Release
Abu Dhabi Securities Exchange (ADX) has inked a memorandum of understanding (MoU) with Emerging Markets Real Estate Information Co. (REIDIN) to improve the facilities the exchange provides for its investors and extend real estate market trend information to the Abu Dhabi investment community.
http://jlne.ws/ID2sGg

Securities Commission Malaysia Scorecard Q1 2012: Malaysian Companies Continue To Tap Private Debt Market
The Securities Commission Malaysia (SC) received a total of 19 corporate proposals in Q1 2012 as compared to 41 proposals in Q4 2011. In line with the trend of increasing preference for fund-raising through issuance of corporate bonds and sukuk, the majority (79%) of the proposals were for issuance of private debt securities (PDS).
http://jlne.ws/ID2v4N

Qatar Exchange Hosts A Meeting For Qatari Businesswomen Association
http://jlne.ws/ID2sWB

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