Industry news

June 24, 2013: LME Woos China Traders as Shanghai Vies for Global Stake; London Stock Exchange plots Brazilian foray; UK and China establish currency swap line

The London Metal Exchange and Shanghai Futures Exchange go head to head for the metals market in China. London Stock Exchange’s MillenniumIT tech division looks for inroads into the Brazilian exchange market. China’s renminbi currency gets a boost on the international stage as Britain and China create a currency swap agreement. In First Read today, if you haven’t already taken a look at JLN’s new special report on London, do so here!

First Read

“It might be extraterritoriality, Jim….but not as we know it”
David Setters – Contango Markets
It’s a great honour to be invited by John to be Guest Editor of the newsletter for IDX Week, a week I’ve been involved with in its different guises since 1987, but more of that tomorrow…

John suggested we might just be talking about this in London this week so how about this on the FIA and FOA announcement (see, I did not call it a ‘merger’ as others have done!) for starters…

“So, you guys gotta futures exchange in London now, right? Wow!” said the burly, straggly haired pit trader type (surely not John Lothian?) ambling up to the FOW booth, tucked away in the depths of the Chicago FIA Expo, seeking give-aways which we didn’t have.

For a Brit this was an amusing and recurring theme from Expo’s inception in the mid eighties which didn’t really die away until the early years of the new millennium. It also serves to underline the fact that this was very much a US futures industry in the eighties and nineties.

And, perhaps it still is. Last week’s announcement that the FOA and the FIA have agreed to combine under one global structure and take on the moniker of FIA Global will be worrying to some in that it has the potential to raise hackles internationally on US extraterritoriality. It’s not “FOA Global” after all, right?

Clearly the industry’s leaders are at pains to demonstrate that it’s not a US trade association “land grab” with the assertion that “Both organisations will continue to operate with their own leadership and staff, separate boards of directors, and distinct membership.”

And Walt Lukken, President and CEO of FIA, does have a point when he explains, “This new affiliation will address a major industry concern–the fragmentation of derivatives markets along jurisdictional lines. Through this new affiliation we will be better able to coordinate our responses to global issues and provide industry support for global standards.”

Lukken is better qualified than many to take FIA Global forward on a basis which will truly embrace international markets and market participants. I have a personal recollection of introducing him to address a packed audience at an FOW “Trade Mission” in Shanghai in 2003 as a CFTC commissioner. His approach then was collegiate and certainly not extraterritorial. He has since also voiced his concerns about US regulators extending their influence into foreign jurisdictions.

However, the fears will remain and cannot really be dampened by looking at previous efforts at internationalisation. One look at the make-up of the board of FIA Asia will show that, while there are some “locals” listed, it is not exactly replete with representatives of regional entities. Similarly, in Europe, had you noticed that Eurex are not a member of FOA? Perhaps they’ll join up now?!

In the coming weeks we’ll certainly await the naming of a founding FIA Global board “derived from the underlying affiliate boards and representing global institutions and responsibilities” with interest.

Or will the burly, straggly haired ex pit trader still be there at the FIA Expo in November? ‘So, those guys gotta futures exchange in Shanghai now, right? Wow!’

++++

London has long been seen as THE global financial center. But given economic, political and regulatory changes, can it retain its title as the world’s top financial marketplace? For many in the financial sector, the answer is yes, but it must navigate some tough political and regulatory challenges from the European Union.

John Lothian News took a 2013 snapshot of the derivatives landscape in London. We spoke with regulators, exchange leaders, buy-side participants and others, and put together this special presentation featuring five short videos, numerous charts, graphs and fun facts, and an in-depth story on the City, from the Big Bang of 1986 to the recent financial crisis and its aftermath.

With the impending regulatory overhaul, changes to financial benchmarks such as LIBOR and threats of transaction taxes and disharmony across jurisdictions, London faces some clear headwinds. With these challenges, though, come opportunities – for exchanges, fund managers, vendors and other service providers. London’s financial landscape will certainly evolve, but will continue moving forward.

As the old World War II poster said, “Keep Calm and Carry On.”

- SPONSORS -

++++

CME Group Announces Multiple Options Volume Records
CME Group, the world’s leading and most diverse derivatives marketplace, today announced a record in daily trading volume for multiple options contracts on June 20, 2013:
* Record volume in Treasury Options reached 1,706,663 (67 percent of which traded electronically on Globex) surpassing previous record of 1,321,019 set on June 19, 2013.
* Record volume in 10-Year U.S. Treasury Note Options reached 1,024,109 surpassing previous record of 898,536 set on June 8, 2007.
* Record volume in E-mini S&P 500 Options reached 809,935 surpassing the previous record of 598,764 set on April 15, 2013.
jlne.ws/1aAjaSp

++++

Volume In CBOE’s S&P 500 Index Options Beats All-Time High Set In 2010
The Chicago Board Options Exchange (CBOE) today reported that trading volume in S&P 500 Index options contracts on Thursday, June 20 established a new daily record of 2,282,029 contracts traded. Thursday’s SPX record surpassed the previous daily volume record of 2,187,004 contracts set on May 20, 2010.
jlne.ws/107q5OL

++++

Minneapolis Grain Exchange stands apart as enduring institution
Mike Hughlett | StarTribune.com
A product of long-gone days when flour milling was king, the Minneapolis Grain Exchange is on a roll these days. A sea change in Canada’s grain marketing system is creating new opportunities for the Minneapolis exchange’s signature wheat futures contract. Volume in that contract is relatively strong. And a new apple juice futures contract could provide an additional boost.
jlne.ws/19v3u1e

***DS: Ok, they have a relationship with the big guys but this just goes to show there are product development opportunities still out there. Perhaps the little guys can work collaboratively with the big guys by acting as ‘incubators’ for new products, earning licence fees in the longer term when their product goes on to the larger exchange? And that might apply especially to emerging market exchanges seeking to launch esoteric regional products that might eventually become global benchmarks.

++++

NYSE Veteran Associate Program Provides U.S. Military Veterans with Business Experience, Professional Skill Development and Job Opportunities
Twenty-eight U.S. military veterans comprise the second annual NYSE Veteran Associate Program, a unique training and skill-development program that provides recent military veterans experience in financial services and the corporate sector with the goal of realizing business employment opportunities. The ten-week summer program is exclusively designed for U.S. military veterans and equips veterans with practical, hands-on training, experience and resources in order to obtain permanent employment. While learning about NYSE Euronext and the financial services industry, the program provides professional skill development and business educational sessions presented by the NYSE Euronext management team, trading floor personnel and industry experts.
jlne.ws/19v3w9f

***DS: This may well work. There is a strong representation of ex servicemen in the London futures and options community. I know this because I just set a question on the topic for the Contango Markets quiz for IDX. A free answer for JLN readers…Kevin Green of Banco Santander served in the British Army.

***DA: I would like to thank Andrew Brown, U.S. Army veteran and one of the program participants, for explaining the program to me at a NYSE event in Chicago last week. Thank you also for your service to our country.

++++

Who will be the next LME chief?
Jack Farchy – FT.com
The metals industry descends on Hong Kong this week for “LME Week Asia” – the first time since the acquisition of the London Metal Exchange last year that Hong Kong Exchanges & Clearing has hosted the sector en masse on its home turf.
jlne.ws/19v3u1l

***DS: Can I put up my hands for this one? I did work for many years at Metal Bulletin alongside the current incumbent. Oh, ok I sold ads too, but I do a bit of writing now. Surely I must qualify along with all those other worthies? Oh, ok then…

Given the potential for competition in the metals space, particularly, but not exclusively, from mainland Chinese Exchanges, maintaining the competitiveness of the LME is going to be a major task which means that the choice of ‘leader’ is all the more important.

++++

All eyes on Euronext as ICE decision day looms in Brussels
Philip Stafford in London and Arash Massoudi in New York – FT.com
The future of Euronext is coming under fresh scrutiny as European antitrust authorities look set to rubber-stamp IntercontinentalExchange’s $10bn cash and shares purchase of NYSE Euronext. Official approval, which could come as soon as Monday, will represent the crossing of the most significant hurdle for the deal as ICE bids to create one of the world’s largest exchanges operators.
jlne.ws/19v3u1m

***DS: The local bars at Cannonbridge will be a little upset about this. The recent stream of leaving parties has seen them achieve record profits but the end is in sight.

++++

US options volumes at record highs
Neil Munshi in Chicago – FT.com
Options contract trading volumes hit record highs on Thursday as traders rushed to hedge equities after the Federal Reserve signalled the tapering of its asset purchasing programme, sending shares sharply lower.
jlne.ws/19v3uhC

++++

Man vs. machine
New York Post
Wall Street firms are cleaning out their desks — institutional-equity desks, that is. Large and midsize firms are giving the boot to hundreds of high-priced trading staff in widespread layoffs and deep cost-cutting, replacing flesh-and-blood staff with cold steel computers and high-frequency trading algorithms.
jlne.ws/19v3w9t

***DA: My advice to the recently displaced? Use some of your profits to enroll in law school. Apparently that is where the money is on Wall St.

***DS: I guess they could join prop shops until those get replaced by computers too.

++++

MarketsWiki

MarketsWiki Page of the Day
Mathew Gladstein
jlne.ws/11RqZLD

MarketsWiki Recent Updates

People

Karen Christiansen; Vincent Van Dessel; David Lester; Stuart A. Unger; Robin Paine; Mary L. Brienza; Taylor Anderson; Paul richardson

Companies, Organizations and Groups

London Stock Exchange Group plc; London Metal Exchange

Miscellaneous

Options exercise; Upcoming Events; Black-Scholes model

Statistics

40,987,803 pages viewed, 7,547 articles, 161,098 edits
MarketsWiki Statistics

Lead Stories

LME Woos China Traders as Shanghai Vies for Global Stake
Bloomberg
At a time when the London Metal Exchange is the closest it has ever been to entering China, the rival Shanghai Futures Exchange is looking for a bigger share of the $20.6 trillion global market in metals futures.
jlne.ws/19v3uhG

London Stock Exchange plots Brazilian foray
Tim Cave – Financial News
The London Stock Exchange Group’s technology division MillenniumIT is looking to support a new trading platform in Brazil, as the exchange operator seeks to gain a foothold in the fast-growing Latin American market.
jlne.ws/19v3uhH

***DS: It’s getting a bit crowded down there technology-wise with CME Group’s deal with BM&FBovespa and NYSE Euronext’s UTP but I guess there’s enough to go round.

UK and China establish currency swap line
Josh Noble in Hong Kong – FT.com
Britain and China have established a currency swap line, the first such deal with a Group of Seven country, in a sign of the growing internationalisation of the renminbi.
jlne.ws/19v3uhI

CME’s Boat Lifted by Fed Tide
JACOB BUNGE – WSJ.com
Terry Duffy says no one is running around his office handing out high-fives, but if the head of the world’s largest futures exchange by trading volume owed anyone some skin, it is Federal Reserve Chairman Ben Bernanke.
jlne.ws/19v3uhK

Banks’ Window-Dressing Undermines Risk-Weight Trust, BIS Says
Boris Groendahl – Bloomberg
Global banks have improved their capital ratios in part by understating the riskiness of their assets, not by raising their ability to stem losses, the Bank for International Settlements said.
jlne.ws/19v3wpO

Former operations chief eyes depository launch
Harriet Agnew – Financial News
The former chief operating officer of James Caird Asset Management is seeking to set up what could be the first independent depository for hedge funds in anticipation of the incoming Alternative Investment Fund Managers Directive.
jlne.ws/19v3uhP

Beer Companies Press LME to Cut Aluminum Warehouse Backlogs
Joe Richter & Agnieszka Troszkiewicz – Bloomberg
A trade group representing brewers is urging the London Metal Exchange to take steps to reduce warehouse backlogs that beermakers say boost the cost of aluminum used to make drinks cans.
jlne.ws/19v3wpU

MGEX Sets New AJC Daily Volume Record
MGEX, a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO), set a new daily record for Apple Juice Concentrate (AJC) volume during yesterday’s trading session with 222 trades. This is a 23 percent increase over the previous top volume day set on May 20, 2013.
jlne.ws/19v3uhQ

Brazil Delivers First Coffee to ICE as Record Harvest Picks Up
Bloomberg
Brazil, the world’s largest coffee producer, delivered beans to ICE Futures U.S. for the first time since the bourse started accepting bags from the South American nation as this year’s harvest picks up.
jlne.ws/19v3wpV

Europe is ignoring the scale of bank losses
Wolfgang Münchau – FT.com
It was another of those late-night agreements, which are as legally sophisticated as they are financially innumerate. Eurozone finance ministers agreed last week that the European Stability Mechanism could devote E60bn of its E500bn total lending ceiling to the recapitalisation of eurozone banks. If that is not enough, the rest of the money for the recapitalisation of the eurozone’s banks will have to come from national governments, or through bail-ins of investors and depositors.
jlne.ws/19v3wpW

News from Turkey

Merkel party opposes Turkey joining EU
PressTV
German Chancellor Angela Merkel’s conservative party has once again expressed its long-standing opposition to Turkey’s membership in the European Union.
jlne.ws/10fumzy

Police fire water cannons to disperse Turkey protesters
Daren Butler and Nick Tattersall, Reuters
Turkish riot police fired water cannons to disperse thousands of anti-government demonstrators in Istanbul on Saturday, as Prime Minister Tayyip Erdogan castigated those behind protests he said had played into the hands of Turkey’s enemies.
jlne.ws/10fu3Vj

Protests threaten Erdogan ambitions
AP
Three weeks of protest have taken a political toll on Turkey’s prime minister that could upend key parts of his political agenda, including his ambition to rework the constitution and emerge as Turkey’s most powerful leader in its democratic era.
jlne.ws/19v3wpX

Regulatory

Calls grow for relaxation of insider dealing rules
Mike Foster – Financial News
Asset managers are set to lobby for a relaxation of rules on insider trading to facilitate a collective approach to corporate governance.
jlne.ws/19v3uhU

The industry needs regulatory certainty, not just guidelines
Deborah Fuhr – Financial News
Regulation continues to exercise the minds of Europe’s exchange-traded industry and was the focus of recent conferences in London and Amsterdam.
jlne.ws/19v3wq3

CFTC’s Division of Clearing and Risk Issues Extension of Time-Limited No-Action Relief from Required Clearing for Swaps Entered into by Certain Cooperatives
The Commodity Futures Trading Commission (Commission) Division of Clearing and Risk today announced the issuance of a time-limited, no-action letter granting relief from required clearing under section 2(h)(1)(A) of the Commodity Exchange Act and part 50 of the Commission’s regulations for certain swaps entered into by qualifying cooperatives.
jlne.ws/19v3uyc

CFTC’s Division of Swap Dealer and Intermediary Oversight Issues No-Action Relief Providing an Alternative to Fingerprinting to Establish Fitness of Associated Persons Residing Outside the United States
The Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight today announced the issuance of a no-action letter relating to the fingerprinting requirement under Commission Regulation 3.12 for certain associated persons of Commission registrants.
jlne.ws/19v3wGk

Elaine C. Greenberg To Leave SEC After More Than 25 Years
The Securities and Exchange Commission today announced that Elaine C. Greenberg, Chief of the Enforcement Division’s Municipal Securities and Public Pensions Unit and Associate Director of the Philadelphia Regional Office, is leaving the agency after more than 25 years of service.
jlne.ws/19v3uye

ASIC consults on enhancements to training standards
jlne.ws/19v3uyf

“Future Boy” Speech Of CFTC Commissioner Bart Chilton To The Global Grain Chicago Conference
jlne.ws/19v3wGm

Exchanges & Trading Facilities

HKEx, LME And BOC Sign MOU
Hong Kong Exchanges and Clearing Limited (HKEx), The London Metal Exchange (LME) and Bank of China Limited (BOC) today (Monday) signed a memorandum of understanding (MOU) on cooperation and the exchange of information regarding the clearing of renminbi (RMB) commodity products.
jlne.ws/19v3uyh

Nasdaq OMX Nordic Launches Cash Settled Single Stock Futures
NASDAQ OMX today announced the introduction of cash settled single stock futures on Norwegian, Danish and Swedish securities. The new instruments are similar to existing physically settled single stock futures, but settlement will instead be made in cash at expiration. The product will be offered on all underlying securities of Norwegian, Danish and Swedish single stock futures that are physically settled today.
jlne.ws/19v3wGq

NYSE Euronext plans block-trading platform
Tim Cave
NYSE Euronext has held talks with several buyside dealers over the creation of a European block-trading platform, in response to growing demand for venues protected from high-frequency trading.
jlne.ws/19v3uyi

LME appoints Robin Paine as Chief Technology Officer
jlne.ws/19v3uyj

Moscow to welcome single stock futures | securities lending latest news
securitieslendingtimes.com
Single stock futures of well-known German underlyings will be made available for trading on the derivatives market of Moscow Exchange in September 2013.
jlne.ws/19v3uyl

NYSE Euronext Hosts 26th Annual NYSE Teachers Workshop
NYSE Euronext will host its 26th annual NYSE Teachers Workshop beginning Monday, June 24, 2013. The annual program, in conjunction with the U.S. Securities and Exchange Commission’s (SEC) Office of Investor Education and Advocacy, helps approximately 200 teachers from across the United States educate students on the financial marketplace and its importance in their lives and the global economy.
jlne.ws/19v3wGv

BM&FBOVESPA Starts Trading Mini Crude Oil Derivatives Contract
Energy Commodities Portfolio Receives Cash-Settled Mini Crude Oil Futures Contract That References The Settlement Price Of The CME Group’s NYMEX Crude Oil Futures Contract
jlne.ws/19v3wGz

TMX Venture Exchange – Calgary Office Update
jlne.ws/19v3wWO

Changes In The Supervisory Boards At Stuttgart Stock Exchange – Thomas Koelbl Co-Opted As New Member
jlne.ws/19v3uOE

[CBOE] Trader E-News
jlne.ws/19v3uOF

[CBOE] Restrictions on Transactions in Exide Technologies (XIDE)
jlne.ws/19v3wWR

[CBOE] Rule 24A.15 Letter of Guarantee or Authorization; Rule 24B.13 Letter of Guarantee or Authorization
jlne.ws/19v3uOH

NYSE Euronext welcomes bpost to its European market
jlne.ws/19v3wWT

Hedge Funds & Managed Futures

Hedge Funds Shift to Stocks, in Time for Pullback
CNBC via Yahoo! Finance
Hedge fund investors have begun to like stocks again-just in time for what appears to be a rough summer ahead for the equity markets. Reversing a trend that began in March 2010, hedge funds in May saw inflows to equity-based products and outflows from fixed income.
jlne.ws/19v3wWX

Gold Wagers Slump as $54 Billion Erased From Funds: Commodities
Bloomberg
Hedge funds cut bets on a gold rally by the most since February after the Federal Reserve laid out plans for reducing stimulus and this year’s drop in the value of exchange-traded products extended to $54 billion.
jlne.ws/19v3uOL

Eurobonds as Refugees From Tax Men Turn 50 in $4 Trillion Market
Bloomberg
Half a century ago, a London bond deal for an Italian highway operator, denominated in U.S. dollars and arranged by a U.K. bank founded by a Jew fleeing Germany spawned a $4 trillion-a-year global market.
jlne.ws/19v3wWY

Emerging market research head departs Pimco
Giles Turner – Financial News
John Longhurst, head of emerging market equity research and a global industrials and defence/security analyst at Pimco, has left after less than two years.
jlne.ws/19v3wWZ

Lost Decade for Bonds Looms With Growing Return Seen for Equity
Bloomberg
U.S. Treasuries are now providing less than half the yield of stocks, giving investors little reason to keep the three-decade bull market in bonds alive as housing starts, consumer confidence and corporate profits point to an improving economy.
jlne.ws/19v3uOQ

Thomson Reuters mulls league table shake-up
Richard Partington – Financial News
Data provider Thomson Reuters is set to review the way it calculates its equity capital markets adviser rankings amid concerns from bankers over the way some institutions have sought to “buy” higher league table status.
jlne.ws/19v3uOR

Little progress made on defined benefit pension deficits
Josephine Cumbo – FT.com
The UK’s biggest companies have made little progress in cutting pension deficits, prompting calls for them to find new ways of reducing scheme liabilities.
jlne.ws/19v3wX2

Distressed investors cool on Europe
Paul Hodkinson, Dan Dunkley and Ayesha Javed – Financial News
Opportunities for private equity firms to acquire distressed European companies have dried up on the back of a healthier macroeconomic outlook and rising prices in the secondary debt markets.
jlne.ws/19v3uOW

Brazil, Fortune and Fate Turn on Billionaire
PETER LATTMAN and SIMON ROMERO – NYTimes.com
When the Brazilian billionaire Eike Batista appeared on the Charlie Rose show in 2010, he and his country were on a roll. Today, with the Brazilian stock market and the value of its currency falling as mass demonstrations hobble the country, Mr. Batista’s billions are evaporating.
jlne.ws/19v3uOX

IPO numbers come back from the dead
H. Lee Murphy – Crain’s Chicago Business
Following Gogo Inc.’s pricing late last week—the Itasca-based provider of in-flight wireless service plans launched at $17 a share, selling 11 million shares and raising $187 million—a half-dozen Chicago-area companies have completed initial public offerings this year.
jlne.ws/19v3xdo

Banks & Brokers

U.S. Weighs Doubling Leverage Standard for Biggest Banks
Yalman Onaran – Bloomberg
U.S. regulators are considering doubling a minimum capital requirement for the largest banks, which could force some of them to halt dividend payments. The standard would increase the amount of capital the lenders must hold to 6 percent of total assets, regardless of their risk, according to four people with knowledge of the talks. That’s twice the level set by global banking supervisors.
jlne.ws/19v3xdp

Average Pay of Top Bankers Drops 10%
CNBC
Average pay of top bankers in the US and Europe dropped by a 10th last year. The Financial Times reports.
jlne.ws/19v3v5d

Fitch: Knight Capital/GETCO Merger Poses Near-Term Challenges – Yahoo! Finance
Fitch Ratings believes that the strategic merger of Knight Capital Group, Inc. and GETCO Holding Company, LLC has potential long-term benefits. However, the combined entity will face near-term earnings, leverage and liquidity challenges before synergies can be fully realized.
jlne.ws/19v3v5e

Gorman’s Morgan Stanley Transformation Begins
TheStreet.com
NEW YORK — Morgan Stanley has received regulatory approvals to complete its purchase of brokerage joint venture Morgan Stanley Smith Barney from Citigroup, in a move CEO James Gorman characterizes as a “historic day” for the nation’s second largest standalone investment bank. The investment bank said Friday it has received the regulatory go-ahead to buy Citigroup’s remaining 35% stake in the brokerage joint venture, in a cash deal that values the holding at $4.7 billion.
jlne.ws/19v3xds

UBS Said to Close Commercial Banking Business in India
Bloomberg
UBS AG, Switzerland’s biggest bank, will close its lending business in India to conserve capital, said a person briefed on the matter.
jlne.ws/19v3xdt

BCS Granted FCA Authorisation – Launches International Brokerage Arm
jlne.ws/19v3xdw

Clearing & Settlement

ISDA 2013 Margin Survey Results: $3.70 Trillion Of Collateral In Circulation In Non-Cleared OTC Derivatives Market
jlne.ws/19v3xdB

NYMEX Options Expiration Operational Procedures for the Trading Floor and Clearing Members (HHQ) Effective Friday, June 21, 2013
jlne.ws/19v3xtW

CME Group Delivery Dates for July 2013
jlne.ws/19v3v5t

Technology

FinTech community surfs on London’s tech wave
Tim Cave – Financial News
London’s growing status as an incubator for ambitious technology companies has seen a wave of start-ups seeking to serve the City’s capital markets industry.
jlne.ws/19v3xtY

RTS Realtime Systems Expands in Greater China
RTS Realtime Systems Group, a leading global trading solutions provider, announced today a number of actions the firm has taken to further build on its growth in Hong Kong and Mainland China. The steps include the launch this week of a Chinese-language website and recent establishment of a Shanghai office and expansion of its staff there.
jlne.ws/19v3xu0

Enforcement

High Court Settlement Paves The Way For UK’s Financial Conduct Authority To Return Money To Investors In Illegal Land Bank
The Financial Conduct Authority (FCA) has agreed a settlement of proceedings in the High Court which will enable it to return approximately £380,000 to investors in a land bank.
jlne.ws/19v3vlN

Fund manager gets 11 years for Facebook, Groupon shares scam
Reuters via Yahoo! News
By Bernard Vaughan NEW YORK – Former fund manager John Mattera was sentenced to 11 years in prison on Friday, after pleading guilty of defrauding investors of $13 million with a story that he put their money in Facebook Inc and Groupon Inc shares before the companies went public.
jlne.ws/19v3vlU

Environmental & Energy

Obama Said to Announce Emission Curbs on Power Plants Next Week
Bloomberg
The initiatives to curb climate change that President Barack Obama plans to unveil will include the first limits of carbon emissions from existing power plants, according to a person familiar with the plans.
jlne.ws/11zztvi

Obama to lay out climate change plan in speech on Tuesday
Reuters
President Barack Obama said on Saturday that he will outline a climate change plan on Tuesday centered around reducing pollution from carbon emissions as he attempts to make good on a pledge for his second term.
jlne.ws/12kfbS3

Stakeholders brace for White House move on power plant emissions
Reuters
Before President Barack Obama unveils a plan to lower carbon emissions from thousands of existing U.S. power plants, stakeholders on all sides of the issue have attempted to make their mark on the regulations.
jlne.ws/11Vgjf8

Asia-Pacific

Markets Insight: China’s Ponzi credit boom faces crunch
George Magnus – FT.com
Skittishness in global finance about the Federal Reserve’s intention to start “tapering” its asset purchases has been joined by rising angst about a credit crunch in China.
jlne.ws/19v3vlX

Tokyo Commodity Exchange Monthly Foreign Customer Trade Ratio Tops At 37.6% In May
The Tokyo Commodity Exchange, Inc announced today that the May 2013 monthly volume of customer trades (sell & buy) originating overseas comprised 37.6 percent of the total trades, which marked the all-time high ratio.
jlne.ws/19v3xu4

Partial Revision to the Daily Price Limit for JGB Futures and Options in conjunction with the Derivatives Markets Integration
Osaka Securities Exchange Co., Ltd. (OSE) has decided to partially revise the daily price limit for JGB futures and options in conjunction with the integration of the derivatives markets of Tokyo Stock Exchange, Inc. (TSE) into the OSE derivatives market in March 2014 and the application of the dynamic circuit breaker to current TSE derivatives products. OSE will invite public comments on the matter.
jlne.ws/19v3vlZ

Thailand Futures Exchange (TFEX) Announces Normal Night Shift Trading
jlne.ws/19v3xKo

HKEx Announces Liquidity Providers For CES 120 Futures
jlne.ws/19v3vCe

HKFE Announces Revised Margins For China Construction Bank And CNOOC Futures
jlne.ws/19v3vCg

Frontier Markets

Saudi Arabia Aligns Weekend in Next Step Toward Opening Market
Bloomberg
Saudi Arabia will shift its weekend to Friday and Saturday starting next week, taking the biggest Arab economy a step closer to opening its stock market to foreign investors.
jlne.ws/19v3xKv

“Swift Transfer” Of Securities Between Dubai Financial Market And Kuwait Stock Exchange – 175 Million Kuwaiti Shares Transferred To DFM As Of End Of May 2013
Dubai Financial Market (DFM) agreed on new arrangements with the Kuwait Clearing Company to promptly transfer securities between the DFM and Kuwait Stock Exchange (KSE).
jlne.ws/19v3xKy

Harvard Grad Swaps Morgan Stanley for Sheikhdom as Deals Dry Up
Bloomberg
After a decade of dealmaking at Morgan Stanley in the Middle East, Peter Fort swapped Dubai’s International Financial Centre for a career promoting investment into one of the United Arab Emirates’ lesser-known sheikhdoms.
jlne.ws/19v3xKD

Citi set to open office in Baghdad
Daniel Schäfer in London – FT.com
Citigroup will become the first US bank to expand into Iraq in a bet on a long-term economic upswing of the oil-rich but war-torn country.
jlne.ws/19v3y0S

Goldman Sachs loan runs afoul of ‘fatwa,’ opponent claims
Reuters via Yahoo! News
By Tom Hals – To many in the West, a fatwa is often associated with the 1989 religious edict against author Salman Rushdie. But, in what may be a first, a party has cited the term in a U.S. bankruptcy court, citing a “fatwa” as a reason to prevent Goldman Sachs from making a loan to bankrupt Bahrain investment firm Arcapita Bank BSC.
jlne.ws/19v3y0Y

Kuwait sheikh sues UBS for $21.4 million in Dubai court
Reuters via Yahoo! News
By Matt Smith DUBAI – A Kuwaiti sheikh is suing UBS AG for $21.4 million, alleging the Swiss bank failed to pay him for helping it become lead arranger on a $9 billion asset sale by the Kuwaiti telecommunications operator Zain, a Dubai court heard on Sunday.
jlne.ws/19v3y11

Nigerian Stock Exchange Weekly Report For The Week Ended June 21, 2013
jlne.ws/19v3vCn

TOM MTF Statistics Week 25 2013
jlne.ws/19v3y15