Breaking News

John Lothian Newsletter: ICE CEO Sprecher wants regulators to look at ‘maker-taker’ trading; U.S. regulator approves BATS/Direct Edge; SIX Group to build pan-European clearing house

First Read

The CME Should Buy the CBoe Soon
John Lothian
The CME Group should buy the CBoe soon. I can’t believe I am writing this, but that is the conclusion I have come to. The reason why is that if they don’t act soon, the CBoe may become too expensive to justify buying.

The CBoe stock price was up 76 percent last year and its market cap is $4.3 billion. The CME’s stock was up 55 percent, still outperforming the market, but not the CBoe. CME’s market cap stands at $25 billion, just a shade above InterContinentalExchange’s (ICE) $23.7 billion.

The other reason is that the CME is the natural buyer for the CBoe and the market knows it. In fact, I think some of that 76 percent gain last year is just pure takeover speculation premium after ICE closed the deal for NYSE Euronext

With the CME’s US rival ICE now in control of NYSE Euronext and their two equity option exchanges, ARCA and AMEX, the CME has to consider its own foray into equity options. With ICE Group’s two equity options exchanges and Nasdaq OMX with three exchanges, and Eurex too with ISE and Gemini, the competition has revenue opportunity in a key sector the CME does not have.

(To read the rest of the commentary, visit the JLN blog at jlne.ws/KWkl6e ).
***** This commentary was first published on Friday, right after the equities markets closed in the U.S.

++++

CME Group weighs overhaul for daily grain price limits
Reuters
CME Group Inc is considering a proposal to reset daily price limits for U.S. grain and oilseed futures twice a year based on underlying price levels in agricultural markets, documents distributed by the exchange operator show.
jlne.ws/1aCdZoi

***** They will need a way to communicate this differently. This presents a new information risk to traders.

++++

Euronext launches new Single Stock Futures
Euronext, a wholly owned subsidiary of IntercontinentalExchange Group, today announced the launch of an enlarged suite of Single Stock Futures on a range of its most liquid Euronext listed stocks. The launch enhances the existing offering of individual equity options, index futures and options.
jlne.ws/1aCe1g1

***** Euronext making a Liffe of its own in Single Stock Futures.

++++

R.J. O’Brien Appoints Kevin Hall Managing Director, Sales and Head of New York Office
R.J. O’Brien & Associates (RJO), the oldest and largest independent futures brokerage and clearing firm in the United States, announced that Kevin J. Hall has been appointed Managing Director, Sales and Head of the firm’s New York office. Hall, 52, has spent more than three decades in financial services, specializing in institutional sales, investment management services and risk management.
jlne.ws/1dIswJv

***** RJO’s NY office did not have corridor, but now it has a Hall?

++++

Disconnected About Interconnections: Regulators Still Don’t Get the Systemic Risks in Central Clearing
Streetwise Professor
A board member of the ECB, Benoît Coeuré, gave a speech that discussed “the new risks associated with central clearing.” It is evident that Coeuré is a proponent of central clearing, though it is annoying to see him identify multilateral netting as the main benefit (). But it is good to see yet again that central bankers are aware that central clearing does create new risks, and that regulators must be proactive in addressing them.
jlne.ws/1aCe1g5

***** The question is can the Central Bankers manage those risks.

++++

Open for Business: Competition Heating Up in the New Market Structure
JohnLothianNews.com
Swap execution facilities (SEFs) were given life by the Dodd-Frank Act, which requires over-the counter (OTC) swaps to be cleared and traded on this new type of regulated platform. The CFTC published its final SEF rules in mid-2013 and trading commenced on 18 registered SEFs. John Lothian News interviewed a dozen of the leading SEF operators, regulators and other participants and put together a three part series on SEF regulation, the changing market structure and the new technology required to make it all happen. Part II looks at the changes to the overall market structure brought about by new regulation. Though the swap execution facility is a new entity as defined by Dodd-Frank, an ecosystem of platforms and processes for the trading OTC derivatives has been in place for decades. The introduction of new requirements for quoting, clearing and data transmission significantly altered the competitive landscape among inter-dealer brokerage firms (IDBs) and dealer-to-client platforms.

Watch the video »

++++

CFTC Announces Rescheduled Public Meeting of the Technology Advisory Committee
The Commodity Futures Trading Commission (CFTC or Commission) announces that on Monday, February 10, 2014, the CFTC’s Technology Advisory Committee (TAC) will hold a public meeting at the CFTC’s headquarters in Washington, DC from 10:00 a.m. to 5:00 p.m
jlne.ws/1aCdZoq

***** Let’s try it again.

++++

Nasdaq’s Hans-Ole Jochumsen: Why I chose finance over journalism
Anna Irrera – Financial News
Hans-Ole Jochumsen, Nasdaq OMX’s top executive in Europe, is known as the man to go to when managing an exchange merger. The finance veteran was on the management board of Danish lender GiroBank when it merged with rival Sparekassen Bikuben at the start of his career. He spearheaded the tie-up between the Copenhagen and Stockholm exchanges in 2005, and was a member of the executive team of Nordic-based OMX Group during its merger with Nasdaq six years ago.
jlne.ws/1aCdZot

***** I chose finance and journalism.

++++

ACT webinar: EMIR – the final countdown
The deadline for EMIR reporting is just weeks away. From 12 February all European companies will be legally required to report derivative trades to a registered trade repository. Join this ACT technical webinar for an essential checklist on complying with the new regulation. The webinar is free to attend and open to all. For more details and to register, please click here: jlne.ws/1cln97y

++++

MarketsWiki

MarketsWiki Page of the Day
CLS
jlne.ws/1e1SfkL

MarketsWiki Recent Updates

People

James “Jamie” Dimon

Companies, Organizations and Groups

European Energy Exchange AG; Direct Edge; BATS Global Markets; News Corp.; Bursa Malaysia Bhd.; CLS; Bank One Corporation

Products

S&P Dow Jones Indices

Miscellaneous

Continuous linked settlement

Statistics

46,762,135 pages viewed, 7,778 articles, 177,237 edits
MarketsWiki Statistics

Lead Stories

ICE CEO Sprecher wants regulators to look at ‘maker-taker’ trading
Reuters
Stock market regulators should take a hard look at the ‘maker-taker’ form of trading that now dominates share transactions in the United States, Jeffrey Sprecher, CEO of the IntercontinentalExchange and new chief of the New York Stock Exchange, said on Sunday.
jlne.ws/1aCdZov

U.S. regulator approves merger of BATS and Direct Edge exchanges
Reuters
The U.S. Securities and Exchange Commission has approved the merger of exchange operators BATS Global Markets Inc and Direct Edge Holdings LLC, according to a notice on the regulator’s website posted on Friday and dated Jan. 23.
jlne.ws/1aCe1g9

SIX Group to build pan-European clearing house
Philip Stafford – FT.com
SIX Group, owner of the Swiss stock exchange, plans to build a pan-European clearing house for equity derivatives this year in search of diversification from the fiercely competitive cash equities market.
jlne.ws/1aCdZox

UK Broker ICAP to lose role in ISDAfix swaps benchmark
Reuters
Swaps broker ICAP will give up its role in establishing a widely used benchmark for derivatives, two sources familiar with the situation said on Sunday, after U.S. and UK regulators started probing the process.
jlne.ws/1aCdZEN

BofA Swaps Desk Investigated by CFTC, DOJ, Filing Disclosed
Tom Schoenberg and Silla Brush – Bloomberg
Bank of America Corp.’s handling of futures trades has been investigated by the U.S. Department of Justice and the Commodity Futures Trading Commission, according to a regulatory filing in June.
jlne.ws/1aCe1wp

Thomson Reuters pushes banks to clean up benchmark submissions
Philip Stafford – FT.com
Thomson Reuters is to launch a push for banks to improve their submissions to benchmarks as the data provider faces a countdown to comply with toughened global guidelines designed to restore integrity to scandal-tainted fixings.
jlne.ws/1aCdZET

Stock exchanges chase eastern promise
Michelle Price – Financial News
Western exchange operators are eager to exploit growth in Asia amid increasing competition and dwindling trading volumes in their home markets, but opportunities in the region are notoriously hard to come by.
jlne.ws/1aCe1wq

Billionaire Braves Bloated Self-Importance for Davos Chat
Matthew G. Miller and Toni Parsons – Bloomberg
Filipino mogul Enrique Razon loathes rubbing shoulders with fellow billionaires in Davos. “It’s loaded with bloated self-importance,” the casino and cargo-terminal owner said in an interview today in the Swiss village, where he was wrapping up his second trip to the World Economic Forum’s annual meeting. “I’m here to do business, not save the world.”
jlne.ws/1aCe1ws

The case for working less
David Spencer – Pieria
The focus of conventional employment policy is on creating ‘more work’. People without work and in receipt of benefits are viewed as a drain on the state and in need of assistance or direct coercion to get them into work. There is the belief that work is the best form of welfare and that those who are able to work ought to work.
jlne.ws/1aCdZEV

Deutsche bank starts talks to sell gold fixing seat – sources
Reuters
Deutsche Bank is talking with prospective buyers about selling its place in the global gold and silver price setting process, known as the “fix”, sources familiar with the situation said on Friday.
jlne.ws/1aCe1wt

Regulatory

State Street Chief Complains About Volcker, Regulatory Costs
Sarah Krouse – MoneyBeat – WSJ
The uphill climb banks face in addressing – and paying for – regulatory issues has proved steeper than State StreetSTT -4.45% chairman and chief executive Joseph Hooley anticipated.
jlne.ws/1aCdZEX

Gary DeWaal’s Bridging the Week: January 20 to 24, and 27, 2014 (Accounting Firms under Attack; Enhanced CTA/CPO Customer Protection Necessary?)
Accounting firms received the brunt of a US regulator’s attention this past week when one major US accounting firm was challenged for not being “independent,” while China-based affiliates of four top US accounting firms were barred by an administrative law judge for the regulator from auditing China-based companies listed on US exchanges for six months for not complying with requests for documents. The firms had alleged that complying would cause them to violate China laws, including privacy rules.
jlne.ws/1aCdZEZ

Commodity position limits may make hedgers think twice
Mark Pengelly – Risk.net
Dodd-Frank and Mifid II position limits could cause firms to withdraw from commodity derivatives
jlne.ws/1aCe1wv

Iosco secretary-general slams US and Europe as ‘regulatory sharks’
Viren Vaghela – Risk.net
Moves by the US and Europe to impose a global regulatory standard on the rest of the world ignore the changing global economic dynamic and leave both polities looking like “regulatory sharks”, according to David Wright, secretary general of the International Organization of Securities Commissions (Iosco).
jlne.ws/1aCdZF4

Singapore facing substituted compliance ruling following J. Aron swap dealer registration
Viren Vaghela – Risk.net
J. Aron, the commodities house and a subsidiary of Goldman Sachs, is to register its Singapore unit as a swap dealer under Dodd-Frank later this month according to market sources – something that may mean Singapore requires a substituted compliance ruling from US regulators.
jlne.ws/1aCdZF5

61 Percent Of Financial Institutions Still Have A Long Way To Go To Establish A Collateral Management Strategy, Shows Clearstream Summit Poll
95 Percent Of Delegates At Clearstream Conference (Strongly) Agree That Sourcing Collateral Has Risen Up Their Agenda In The Past 12 Months – More Than 85 Percent Of Financial Experts See Increasing Role For Triparty Repos For Corporates, As A Replacement To Cash Deposits – 18th Annual Clearstream GSF Summit Brings Together More Than 850 Delegates From Across The Globe
jlne.ws/1aCe1ww

Exchanges & Trading Facilities

NASDAQ OMX Opens New Office in Bangalore, India
NASDAQ OMX has opened a new office in Bangalore which will focus on developing new technologies and innovating current solutions, including the next generation Investor Relations platform.
jlne.ws/1aCdZVi

Nasdaq Wants to Plant IPO Seeds With Private-Share Market
WSJ.com
In the fight to win initial public offerings, Nasdaq OMX Group Inc. is betting longer relationships with private companies will yield a larger slice of the listings pie. The company is preparing to launch Nasdaq Private Market LLC, a new, San Francisco-based exchange for trading shares in private companies, after clearing a key regulatory hurdle earlier this month.
jlne.ws/1aCdZVk

S&P Dow Jones Indices and CBoe Announce Successful Conclusion of ISE Index Litigation
S&P Dow Jones Indices LLC and Chicago Board Options Exchange, Incorporated reported today that the International Securities Exchange has not appealed a federal court decision that rejected ISE’s attempt in the New York courts to challenge SPDJI’s rights to control the use of the S&P 500® and the Dow Jones Industrial Average as the basis of index options.
jlne.ws/KUNHBR

Five questions for Nasdaq’s Hans-Ole Jochumsen
Anna Irrera – Financial News
Hans-Ole Jochumsen, executive vice president of transaction services for Nordics at Nasdaq Omx, is the only European on the nine-person committee of Nasdaq OMX. Earlier this year, he was named in the FN100 list of the most influential people working Europe’s financial markets.
jlne.ws/1aCe1wA

CBoe Eyes 12-Month Latency Cuts
Max Bowie – WatersTechnology
The Chicago Board Options Exchange is in the middle of an ongoing project to reduce data and transaction latency across its trading systems to less than 100 microseconds, building on existing latency reductions achieved as a result of moving its primary matching engines from Chicago to the New York metro area just over a year ago.
jlne.ws/1aCdZVm

EEX seeks Asia commodity derivatives boost
Gillian Carr – Risk.net
The recent takeover of Singapore-based Cleartrade Exchange by the Leipzig-based European Energy Exchange (EEX) reflects an increasing enthusiasm for Asian commodity trading among firms that had previously been more focused on European energy markets.
jlne.ws/1aCdZVn

Oslo Børs: Timetable For The Launch Of Millennium Exchange Version 8
jlne.ws/1aCe1wF

Euronext Amsterdam welcomes Rabobank Certificates
jlne.ws/1aCe1wH

Xetra/Börse Frankfurt: IPO In Prime Standard: Tintbright AG
jlne.ws/1aCdZVo

TOM MTF Statistics Week 4, 2014
jlne.ws/1aCdZVq

Hedge Funds & Managed Futures

Advisers Grow More Wary of Pimco Funds
Corrie Driebusch and Murray Coleman – MoneyBeat – WSJ
Financial advisers were already pulling billions of dollars in client money from Pacific Investment Management Co.’s flagship fund before this week’s announcement that Chief Executive Mohamed El-Erian is stepping down. Now, some advisers who still have holdings with Pimco Total Return Fund are even more wary about their investments in the world’s largest bond fund.
jlne.ws/1aCe1MV

Typhon Acquires Proteus Volatility Group
In November, Typhon completed the acquisition of Matthew and Michael Thompson to co-head a volatility group for the firm as principals operating the Proteus Volatility Strategy. The Thompsons have been running an excellent systematic strategy since Q3’2011 which exploits the term structure of VIX futures.
jlne.ws/L1MDvu

When the hedge doesn’t work
Bronte Capital
I run a hedge fund which means I am meant to hedge risk. However if you hedge away all your risk you hedge away all your returns. So you have in your head (or computer) some model of how the world works and what things should be correlated and what should not and you make your bets accordingly.
jlne.ws/1aCe1MW

Hedge Fund Winton Capital Plans U.S. Office — Sources
WSJ.com
Winton Capital Management, the fourth largest European hedge fund by assets under management, is planning to open a U.S. office in the summer, according to people familiar with the matter. The move is part of a broader global expansion that could lead to the U.K.-based firm, which has nearly $25 billion in assets under management, opening offices in Japan and Australia.
jlne.ws/1aCdZVu

Dig into the mysterious Buffett derivatives
Dan McCrum | FT Alphaville
The Sage of Omaha is folksy, down to earth and on the whole entirely open about his philosophy and his approach. But he has also managed a trick almost unheard of in the modern corporate era: he discusses the business he has run for half a century entirely on his own terms.
jlne.ws/1aCe1N2

Hedge funds hit by passport rules
Harriet Agnew – Financial News
Managers wishing to market their hedge funds into Europe are facing a minefield of regulations that vary depending on the European jurisdiction.
jlne.ws/1aCe1N3

Bidding war for Russell Investments warms up
Mike Foster – Financial News
Investment consultants are likely to join private equity firms in a bidding war for the fund manager Russell Investments, which has reportedly been put up for sale by its US parent.
jlne.ws/1aCe1N5

Sorrell hedge fund manager to close
Vivek Ahuja and Harriet Agnew – Financial News
One of the three sons of WPP chief executive Sir Martin Sorrell is closing his global macro hedge fund manager, of which Sir Martin was a non-executive director as well as an investor in the fund that the firm managed.
jlne.ws/1aCe1N9

CFTC Commitments Of Traders Reports Update
jlne.ws/1aCdZVw

Banks & Brokers

Asking Banks to Reveal Where Their High Rollers Are
NYTimes.com
For investors who held stakes in large and complex financial institutions in 2008, the perils lurking inside these behemoths came as a costly shock. Chief among those perils was the possibility that a bank could lose billions on trades executed by employees who were driven, at least in part, by the promise of fatter bonuses.
jlne.ws/1aCe1Nb

Europe treads softly in challenging big banks’ power
Reuters
Europe will consider how to challenge the dominance of its big banks this week, but any new rules to isolate risky trading will take years to begin and there will be no attempt to split off market betting from deposit taking.
jlne.ws/1aCe1Nc

Sufficient Financing to Aid Troubled Banks, European Officials Say
NYTimes.com
There will be enough money to recapitalize banks that fail a review by the European Central Bank later this year, top European leaders said on Saturday, seeking to assuage lingering doubts whether policy makers will succeed in cleaning up the financial system and restoring the flow of credit.
jlne.ws/1aCdZVA

Citigroup bankers to be paid at least half their bonuses in cash
Daniel Schäfer in London and Camilla Hall in New York – FT.com
Citigroup is set to pay most of its investment bankers in Europe at least half of their bonuses in cash this year, underlining how US banks continue to be much more generous than their European rivals.
jlne.ws/1aCdZVB

Buffett Praises Dimon’s Leadership at J.P. Morgan
Anupreeta Das – MoneyBeat – WSJ
Warren Buffett, chief executive of Berkshire Hathaway Inc., said if he owned J.P. Morgan Chase & Co., he would keep Chief Executive James Dimon at the helm and would pay him even more than he’s making now.
jlne.ws/1aCe0bO

Shut up and pay the man.
Joshua M Brown | The Reformed Broker
My new post at The Daily Beast takes on the notion that Jamie Dimon is “overpaid” as the CEO of Wall Street’s largest bank, JP Morgan. People making that claim don’t quite understand how capitalism works. Dimon serves the shareholders and the shareholders couldn’t possibly be more taken care of than they are right now.
jlne.ws/1aCe0bP

Brown Brothers Harriman Hires New CIO
Ivy Schmerken
Michael McGovern joined BBH as CIO and head of systems, where he will spearhead technology strategy, application development and systems infrastructure for the privately-held financial institution.
jlne.ws/1aCe0bQ

Big Banks Are Now Technology Laggards
Dani Golan, Kaminario – Wall Street & Technology
Burdened by massive fixed costs, complicated legacy infrastructures and a changing revenue model, large banks are finding it challenging to move to newer technologies.
jlne.ws/1aCe23v

Deutsche Bank clears co-CEO Jain in internal Libor probe: report
Reuters
Deutsche Bank has concluded co-Chief Executive Anshu Jain is clean after an internal investigation into the role of the bank into the manipulation of global interest rates, German newspaper Frankfurter Allgemeine Sonntagszeitung reported.
jlne.ws/1aCe0bT

J.P. Morgan’s Dimon, Ex-Ally Settle Dispute
WSJ.com
J.P. Morgan Chase & Co. Chief Executive James Dimon and a former top lieutenant recently agreed to a multimillion-dollar resolution of a hiring dispute that entangled the largest U.S. lender, a giant private-equity firm and two longtime fixtures on Wall Street.
jlne.ws/1aCe0bU

Clearing & Settlement

EuroCCP, interoperably yours
FTSE Global Markets
Long before it was fashionable, Diana Chan, chief executive of EuroCCP, a subsidiary of US based Depository Trust & Clearing Corp (DTCC), championed interoperability. She is now one step closer to her goal of a more efficient post trade regime with the merger of the ABN AMRO majority owned EMCF.
jlne.ws/1aCe23w

CME Group Clearing: Asset Management Enhancement: Automated CUSIP Acceptability Requests
jlne.ws/1aCe23A

CME Group Clearing: NYMEX Options Expiration Operational Procedures for the Trading Floor and Clearing Members (9G) Effective Monday, January 27, 2014
jlne.ws/1aCe23C

CME Group Margins: Performance Bond Requirements: NG/FX Outrights and NG VOL Scans- Effective Monday, January 27, 2014
jlne.ws/1aCe23E

Indexes & Products

[SIX] ETFs and Sponsored Funds at FONDS’14
On 5 and 6 February 2014, the FONDS’14 will be held at the Kongresshaus Zurich. Once again, is one of the exhibitors. Our team at stand K.20 is looking forward to presenting you the benefits of ETFs in terms of the impressive choice of products which can help you to achieve your investment goals – simply, securely and at low cost. You will also gain an insight into the new Sponsored Funds segment, which allows you to trade conventional funds in real time, just like shares.
jlne.ws/1aCe0bY

ETF providers face squeeze in 2014
Joe McGrath – Financial News
There is an increased risk of exchange-traded fund companies exiting the sector this year, compared with 2013, according to an EY survey published this week.
jlne.ws/1aCe23F

Taper fears sway ETP league tables for 2013
Sarah Krouse – Financial News
Exchange-traded product providers enjoyed the second year in a row during which net inflows topped $200 billion, but market jitters over the future of the US Federal Reserve’s bond-buying programme led to a bumpy ride in the second half of the year.
jlne.ws/1aCe0c4

NYSE Liffe To Launch Futures On MSCI Factor Indices: Smart Beta Indices
IntercontinentalExchange Group, the leading global network of exchanges and clearing houses, today announced that NYSE Liffe will expand its index derivatives franchise with the launch of futures based on MSCI Factor Indices.
jlne.ws/1aCe0c6

Technology

OptionsCity Selects Equinix to Expand its Global Hosted Solution
OptionsCity, a leading provider of multi-asset electronic trading solutions for professional futures and options traders, today announced that it has selected Equinix, Inc. to support the company’s expanding global hosting infrastructure. Launching from the Equinix data center campus in Frankfurt, Germany, OptionsCity’s colocation site positions the company to further provide clients with consistent performance.
jlne.ws/1aCe23H

SunGard Announces Plan to Split Off Its Availability Services Business; Will Separate into Two Strong, Industry-Leading Companies
SunGard Data Systems Inc., one of the world’s leading software and technology services companies, today announced that its board of directors has approved a plan to split off its Availability Services business on a tax-free basis to its existing stockholders, including its private equity owners.
jlne.ws/1aCe0so

Capital Markets Extend Reach to Cloud with Help from Social
Louis Lovas – Wall Street & Technology
This is the year of the cloud burst in capital markets for data-heavy solutions.
jlne.ws/1aCe23J

TMX Atrium Mulls Asia FX Expansion, Eyes Canada, SEFs
Faye Kilburn – WatersTechnology
TMX Atrium, the network provider subsidiary of Canadian exchange group TMX, is considering expanding its current foreign exchange market coverage beyond Europe and the US to Asia, to meet growing demand from customers for FX market data and connectivity to the region.
jlne.ws/1aCe2jW

SuperDerivatives Lays out DGX 2014 Roadmap
Faye Kilburn – WatersTechnology
Over-the-counter pricing and risk management software vendor SuperDerivatives is building out content and functionality on its DGX market data terminal, following the completion of the first-phase rollout of “must-have” data and functionality components in 2013.
jlne.ws/1aCe0sw

Thomson Reuters Launches Solution to Provide Financial Firms with Improved Oversight of Benchmark Submissions and Contributed Data
Thomson Reuters announced today that it has launched a new suite of capabilities to help financial institutions improve transparency and reporting around financial benchmark submissions and other price sensitive data.
jlne.ws/L1OksJ

ITRS And Excelian Develop Real-Time Monitoring Interface For Murex
jlne.ws/1aCe0sx

Enforcement

Federal Court Orders California Defendants CTI Group, LLC, Cooper Trading, Stephen Craig Symons, and James David Kline to Pay Over $29 Million in Disgorgement and Fines for Fraudulent Sale of Automated Trading Systems
The U.S. Commodity Futures Trading Commission (CFTC) today announced that Judge Katherine Polk Failla of the U.S. District Court for the Southern District of New York entered a Consent Order for Permanent Injunction (Order) against Defendants CTI Group, LLC, a California limited liability company, Cooper Trading, a California corporation (collectively, CTI), Stephen Craig Symons of Corona del Mar, California, and James David Kline, who was a resident of Van Nuys, California, for fraudulent sales practices in connection with the sale of two automated trading systems (Trading Systems), known as Boomer and Victory.
jlne.ws/1aCe2jZ

SEC Charges KPMG With Violating Auditor Independence Rules
The Securities and Exchange Commission today charged public accounting firm KPMG with violating rules that require auditors to remain independent from the public companies they’re auditing to ensure they maintain their objectivity and impartiality.
jlne.ws/1aCe2k1

GBP31m In Compensation To Be Paid Out Following UK Financial Conduct Authority’s Arch Cru Consumer Redress Scheme
jlne.ws/1aCe0sz

[AMF Canada] Illegal practice in damage insurance – AMF files suit against Félicien Ngankoy
jlne.ws/1aCe2k2

[AMF Canada] Progressive Management Limited – Seventh Individual Convicted
jlne.ws/1aCe2k4

[AMF Canada] Preventive Measures – Prohibitions relating to Martin Boyer
jlne.ws/1aCe0sB

[AMF Canada] Supreme Court Dismisses La Souveraine Appeal
jlne.ws/1aCe2k6

BCSC panel sanctions mining company and two B.C. men for illegally distributing securities
jlne.ws/1aCe0sD

Environmental & Energy

Europe Carbon Goal Mustn’t Be Underestimated, EU’s Hedegaard
Bloomberg
The European Union’s proposal to accelerate greenhouse-gas reductions to 40 percent by 2030 is an ambitious move from this decade’s 20 percent target, which can be partly offset with international credits, according to Climate Commissioner Connie Hedegaard.
jlne.ws/1f4AUpf

EU’s Groote to Seek Parliament’s Carbon-Fix Approval Next Month
Bloomberg
Matthias Groote, head of the European Parliament’s environment committee, will seek a faster approval of the European Union carbon-market fix in a plenary decision that may be taken in the second half of next month.
jlne.ws/KZsB4H

China’s carbon market may remain a solo one as companies get rights to offset pollution with non-CO2 credits
The Sydney Morning Herald
China will allow big emitters to use offset credits from nitrous dioxide (N2O) destruction to meet domestic climate targets, giving its nod to a type of project that has been banned in other carbon markets.
jlne.ws/1aW3av5

Asia-Pacific

Asia investment banks hiring again
Paul J Davies and Josh Noble in Hong Kong – FT.com
Investment banks are hiring again in Asia, taking on more junior staff as they hope that a wave of new bond and equity raising deals in January signals a turnround ahead after three years of declining activity and fees.
jlne.ws/1aCe0IR

Drawn-out Thai crisis unsettles investors, may deter new money
Reuters
Long-term foreign investors say they are sticking with Thailand despite its political woes but the threat of worsening chaos may scare away new money as companies scope out other options in neighboring countries such as Indonesia.
jlne.ws/1aCe0IT

China money manager applies for new quota for yuan product in London
Reuters
Chinese asset management firm CSOP said it has started applying for new quotas for its newly-listed renminbi exchange-traded fund (ETF) in London due to strong demand, signaling international investors’ growing appetite for yuan assets.
jlne.ws/1aCe2ka

Funds dismayed by Chinese regulator move
Michelle Price in Hong Kong – Financial News
Global asset managers fear they may have needlessly splashed out on relocating funds to Hong Kong to take advantage of the opportunity to grab a share of China’s untapped $6.6 trillion retail savings market.
jlne.ws/1aCe0IU

HSBC’s Burke has inside track to Chinese securities market
Joe McGrath – Financial News
When China announced that it was granting greater market access to global asset managers, the starting pistol fired on a new race for market share.
jlne.ws/1aCe2kc

Japan’s Financial Services Agency: Memorandum Of Understanding With The Ministry Of Finance, The Republic Of The Union Of Myanmar
jlne.ws/1aCe2ke

HKEx Announces Details Of Temporary Holiday Risk Management Arrangements
jlne.ws/1aCe0IX

SGX Welcomes OUE Commercial REIT To Mainboard
jlne.ws/1aCe2As

Japan Exchange Group Notice Of Revision To Earnings Forecast And Dividend Forecast
jlne.ws/1aCe0IZ

Frontier Markets

Your guide to EM compartmentalisation
Izabella Kaminska | FT Alphaville
It’s been a tough day for EM. But just in case you were tempted to bundle the whole region together to make a sweeping generalisation about future performance, it’s worth reading through the following note from Capital Economics on Friday.
jlne.ws/1aCe2Aw

Emerging Markets: And On The Selloff Goes
Serena Ruffoni and Chiara Albanese – MoneyBeat – WSJ
Thursday’s shakeout in emerging-market currencies (and some developed ones too) “left many traders shaken,” according to Citigroup. Well, Friday hasn’t offered much let-up
jlne.ws/1aCe0J3

South African banks say NSFR changes do not go far enough
Cecile Sourbes, Matt Cameron – Risk.net
South African banks say they will find it easier to comply with the second of Basel III’s new liquidity ratios after supervisors published a revised set of proposals on January 12, but warn the industry will still fall below the 100% compliance level demanded by the rules.
jlne.ws/1aCe0J5

Lack of innovation stalls Carib stock markets
Jamaica Gleaner
The Caribbean under-performed global capital markets in 2013, producing less than five per cent of the value of capital raised, even while the markets in the wider Americas did came out on top.
jlne.ws/1aCe0J7

ADX Completes Final Phase Of Testing New Trading Platform
Abu Dhabi Securities Exchange (ADX) announced recently that it is in the final stages of completing the process of replacing its current trading system Horizon with the new trading system X-stream from NASDAQ OMX. ADX stated that it has successfully finished its third mock session on the new trading system.
jlne.ws/1aCe2AB

Nigerian Stock Exchange: Companies Prepare For Corporate Governance Rating System
jlne.ws/1aCe0Zp

Maktoum Bin Mohammed Appoints Essa Kazim, As Chairman Of DIFC Authority Board Of Directors
jlne.ws/1aCe2AD

DIFC Authority Issues Consultation Paper On Proposed Amendments To DIFC Real Property Regulations
jlne.ws/1aCe2AF

Tehran Stock Exchange Weekly Digest – 22 January 2014
jlne.ws/1aCe0Zt

Tehran Stock Exchange Bulletin – December 2013
jlne.ws/1aCe0Zv

0.00 avg. rating (0% score) - 0 votes

About Author

Matte is chief operating officer of John J. Lothian & Co. He edits the John Lothian Newsletter, JLN Forex and MarketsWiki.