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Tag Archives: AlphaMetrix

John Lothian Newsletter: China stocks hit by margin lending curbs; Nasdaq to Provide Trading Platform for Japan’s Biggest Derivatives Exchange; Massad looks to streamline cross-border rules John Lothian Newsletter,Newsletter

First Read Futures regulator dogged by questions on conflicts, governance By Lynne Marek, Crain’s Chicago Business Speaking to the Commodity Futures Trading Commission in April 2013, he said “friends” at a small Chicago-based company called AlphaMetrix had built a software system that would flag potential fraud before it endangered customers. The Chicago-based futures association, an industry regulator, had hired AlphaMetrix for the job, with the blessing of co-regulator and futures exchange operator CME Group. “Amongst all of the challenges and dead ends that the industry faces these days, this is a story that’s a good one,” Hehmeyer said at the…

JLN Managed Futures: Futures group board members file election complaint with CFTC; MF Global Holdings to pay $100 mln fine; Hot Fund Takes Wrong Turn Managed Futures,Newsletter

Observations/Commentary Meet our newest sponsor A warm welcome to FGMK Fund Dynamics as our newest sponsor. Led by Allen Goodman, the company provides process improvement consulting services for businesses of all sizes. Goodman, who previously served as CFO of Price Holdings and founder of Fund Dynamics, provides fund administration along with a host of other consulting expertise. FGMK provides professional services across many business lines through its affiliated companies, and is listed as the 9th largest accounting firm in the Chicago area. We’re glad to have FGMK Fund Dynamics as one of our sponsors. If you would like to connect…

JLN Managed Futures: AlphaMetrix settles with Commodities Futures Trading Commission; CTAs exit drawdown, setting new high watermarks in November 2014; Man Group Buys Merrill Lynch’s $1.2 Billion Fund of Hedge Funds Managed Futures,Newsletter

Observations/Commentary AlphaMetrix settles with Commodities Futures Trading Commission By Lynne Marek, Crain’s Chicago Business The Commodity Futures Trading Commission has reached a settlement with former futures fund manager AlphaMetrix that requires the defunct company to pay $5.6 million, though it’s unlikely that payment will ever be made in full. The agreement was filed yesterday in the U.S. District Court for the Northern District of Illinois in Chicago and a hearing on it is scheduled for Dec. 16. It calls for AlphaMetrix to pay restitution of $2.8 million, plus interest, and a civil monetary penalty of $2.8 million. While there would…

John Lothian Newsletter: Wall St. Wins a Round in a Dodd-Frank Fight; Meet the SEC’s Brainy New Crime Fighters; Commodities Go From Hoard to Floored John Lothian Newsletter,Newsletter

First Read Bits & Pieces By John J. Lothian Congratulations to former FIA President John Damgard and his longtime companion Mary Brittain “Britty” Bardes on their marriage on Saturday in Palm Beach, FL. The JLN team is very happy for both of them. We are nearing the end of our MarketsWiki Education video release schedule. From our 2014 Chicago and London events, we have published more than 30, 12- to 15-minute videos featuring the perspectives of participants representing all facets of the market. We would like to once again thank this year’s sponsors, starting with London premier sponsor CME Group…

JLN Managed Futures: CTA/CPO Capital Requirements; Manning & Napier, Inc. Announces Acquisition of 2100 Xenon ; Carry Trade’s Return Managed Futures,Newsletter

Observations / Statistics / Commentary HFT in the CrosshairsDoug Ashburn, John Lothian News When Michael Lewis’ “Flash Boys” hit the bookshelves a couple weeks ago, it was as if a giant HFT target had been placed on the shooting range. Since then, the calls for HFT curbs, taxes, and other regulation have become increasingly shrill. While John Lothian News has been saying for years that the equity market structure is broken and in need of a fix, too much of the current narrative is based on misinformation and partial-truths, and its chief critics have consistently, if not willfully, misrepresented the…

JLN Managed Futures: It’s Time To Let 401(k) Holders Invest Like the Pros; Macro and Managed Futures Strategies Lose Appeal; NFA floats new rules for futures firms Managed Futures,Newsletter

Observations / Statistics / Commentary Let’s not beat around the bush here – the managed futures sector is coming off its worst 3-year run in perhaps forever. If performance were not bad enough, heightened regulatory scrutiny is on the way. This in response to some (dubious?) research about fees, but also in response to another industry failure, this time at AlphaMetrix. While trend followers are seeing opportunities of late, and the one-way train in the equity market has backed off recently, new regulations could seriously alter the capital structure in the CTA space. Quote of the Day: “Too often, investment…

JLN Managed Futures: Can CTA’s with $1 Billion AUM Trade Grains?; Why hedge funds still manage to seduce; House of AlphaMetrix falls hard and fast Managed Futures,Newsletter

Observations / Statistics / Commentary Emerging Manager Forum Miami, December 3We have over 35 managers registered for the Forum in Miami Beach, at the Fontainebleau, on Dec. 3 many of which are new names. We still have a few slots open for professional capital sources and investors who can attend for free. If you are interested in attending please click the link below.http://jlne.ws/Hjvnzc***DA: John Lothian News editor-in-chief Jim Kharouf will be hosting a breakout session where he will demo our CTA Profiles, a video marketing solution for CTAs. Be sure to attend. Altegris Clearing Solutions Announces CTA Challenge 2014The first…

JLN Managed Futures: Integrity Of Alts Providers A Top Criterion Say Advisors; AlphaMetrix Lawsuit Points To Larger Hedge Fund Risks; CME Group hikes transaction fees for 2014 Managed Futures,Newsletter

Observations / Statistics / Commentary (Mis) Managed Futures Sectorby Douglas Ashburn Last month’s Bloomberg story about managed futures continues to ripple through the industry. As I scanned the headlines while assembling this week’s newsletter, I hit upon two items from law firms targeting the managed futures sector. We do not need this. Targeting Morgan Stanley and other firms will be a further drag on the sector, affecting returns as well as asset flows. No matter what the outcome of these investigations, the industry must conduct its own investigations, root out any bad actors, and work together to promote the benefits…

John Lothian Newsletter: CFTC files fraud lawsuit against AlphaMetrix; Aquis gets UK green light to trade shares across Europe; After a Decade, SAC Capital Blinks John Lothian Newsletter,Newsletter

First Read It’s over – a dinner conversation Jim Kharouf and Doug Ashburn – JLN “It’s over,” said one guest at the dinner table on Sunday. He was speaking candidly about the futures industry and its prospects. Rather than facing a rebuttal from the other six industry professionals at the table, he ended up with three others on his side and three more willing to listen. The argument went something like this. This is an industry with legacy business structures, especially at the FCM level which is being saddled with new regulations that sap critical capital from those firms, and…