Industry news

June 25, 2013: ICE Wins EU Approval to Purchase NYSE Euronext; HKEx Maps Out Commodities Plan, Considers Raising LME Fees; U.S. Civil Charges Against Corzine Are Seen as Near

ICE-NYSE is a go; now we just need a name. Hong Kong Exchanges discusses the future for its combined exchange force, and considers raising fees in London. As toxic cleanup after MF Global continues, regulators are said to be readying charges against ex-leader Jon Corzine.

First Read

A changing futures industry
David Setters – Contango Markets
Although, for some, IDX Week started after the launch of the FOA in 1992 and the subsequent coming together with FIA for an annual London conference the following year, for me it actually began in 1987, after John Damgard had approached me as head of the management team at FOW about partnering on a London conference.

Together with Mary Schapiro, then Senior VP and General Counsel at FIA, I put together the programme for that year’s event and, boy, did I learn some lessons about US futures industry politics in the run up to it! First that came in long UK afternoon ‘phone calls with Washington, the cost of which must have almost put the fledgling FOW out of business, and later when I was taken aside by ‘Cash’ Mahlmann and Tom Donovan at an event to celebrate the opening of a CBOT office in London to have it explained to me in no uncertain terms that we had placed ‘too many CME supporters’ on the speaker podium.

Mary also learned a little bit about the UK political agenda that year. I was a little taken aback when she rang about 2 weeks before the event to be asked why I had not had the foresight to advise on different dates when she’d just read that our General Election (Margaret Thatcher’s 3rd consecutive victory as it turned out) on June 11th was to clash with the conference. I was, of course, forgiven when I explained the UK’s custom of calling an election with approximately 4 week’s notice and no set date as in the USA!

So, as this year’s event opens it got me wondering if it’s still the “futures industry” as we knew it or is it becoming something else and what does it mean for those who see themselves as part of it?

On the one hand there has certainly been a ‘land grab’ of what we know as the “futures industry” over recent years. You can’t help but notice that there aren’t many pure and simple ‘Global Head of Futures’ job titles any longer. More often than not you’ll see one or more of ‘OTC, derivatives and/or clearing’ in the soubriquets of FIA and FOA board members. Quite often you’ll see people being brought in from larger bank ‘fiefdoms’ to take over those positions, too.

According to Steve Grob, Director of Group Strategy at Fidessa and a previous illustrious JLN Guest Editor, in the latest edition of FOA Infonet (see below for link), ‘In this changing environment trading venues, clearing houses, brokers and vendors alike are turning their attention to protecting the territory they already hold and to seeing how they can grab onto the new opportunities that are unfolding with the new rules. These turf wars are especially apparent within organisations that previously separated their OTC and ETD businesses.’

So at the same time that the sometimes esoteric skills and experience of those in the futures industry have probably never been so much in demand it does seem to be more of an issue as to who will control and direct those resources.

As Grob concludes, ‘While people are reacting to the immediate effects by working towards complying with the regulations, some do not yet fully comprehend the level of change and its repercussions.’

Perhaps we’ll find out this week a little bit more from those, if any, who do fully comprehend the changes that are coming.

The latest edition of FOA Infonet featuring a report on ‘The Future of the Execution Business’ is now available for free download at jlne.ws/18dn3x8

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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 -

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Sprecher has tough task killing PFOF
Dan Collins | Dan Collins Report
In doing research for an upcoming post—on one of the previous periods trend following was declared dead—I came across a story in an old issue of Futures that relates to IntercontinentalExchange Chairman and CEO Jeff Sprecher’s recent declaration to end payment-for-order-flow (PFOF) on the exchanges he is acquiring.
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***DS: At this morning’s ‘View from the top’ exchange heads panel Sprecher set out his opposition to payment for order flow clearly and succinctly.

On the same panel the audience responded to a question on which way they felt fees were heading in the consolidating exchange environment. 45% of a sizeable audience voted that they believed they would go up while 42% believed they would go down. Gently goaded by FOA Chairman Steve Sparke, Sprecher smartly responded by suggesting that an extra question could be posed to show which way the audience felt service levels were going.

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SGX supports and does not dominate volumes on NSE: CEO Magnus Bocker
Economic Times
Known as the gateway to Asian markets, the Singapore Stock Exchange or SGX, has emerged as a complete solutions provider for equity, commodity, currency and bond trading. In an interview with ET on the sidelines of a CII conference, CEO Magnus Bocker talks about his India strategy and giving credence to the non-deliverable forwards (NDF) market in Asian currencies.
jlne.ws/1aanskA

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CME Group Announces First Trades of New Physically Delivered 1,000 oz. Silver Futures Contract
CME Group, the world’s leading and most diverse derivatives marketplace, today announced 574 lots of the new physically delivered Silver (1,000 oz.) futures contracts traded last week, with trades taking place each day.
jlne.ws/1aanuZO

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In Response to Dark Pool Misinformation
D. Keith Ross – TabbFORUM
A recent commentary by Daniel Dempsey on TabbFORUM, “Seeing in the Dark: The Rise of Dark Pools, and the Danger Below the Surface” (June 6, 2013), makes several assumptions based on thin sources to suggest that capital markets and corporate financing as we know them may be threatened by dark pools and electronic exchanges. I would argue that the conclusions in his opinion piece, largely derived from Scott Patterson’s book, “Dark Pools: The rise of A.I. trading machines and the looming threat to Wall Street,” are ill-formed.
jlne.ws/1aanskH

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CME’s Terry Duffy on the trade that changed his life
By Shia Kapos – Crain’s Chicago Business
In 1981, future CME Group Inc. chief Terry Duffy was a 21-year-old in a fix. With a few years of college behind him, he had persuaded his mother to mortgage the family’s Mount Greenwood bungalow for $50,000 so he could trade futures. Just weeks after joining the trading pits, he lost the $50,000 and another $100,000.
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***JM: “After that, I never put a trade on where I didn’t know how to get out of it. [...] I always look at the exit strategy.” – The wisdom of a thousand trading books, distilled into two sentences.

***DS: “If only the favourite had won at the Epsom Derby this year!” – My trading knowledge distilled in one sentence!

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Trading Technologies Becomes First ISV to Pass CME Europe Conformance
Trading Technologies International, Inc. today announced it has become the first independent software vendor to pass conformance with CME Europe, a new London-based futures exchange and wholly owned subsidiary of CME Group that is scheduled to launch September 9, 2013, pending regulatory approval. TT will provide “day one” access to CME Europe, which will offer trading of FX futures and other products through the CME Globex electronic trading platform.
jlne.ws/1aanuZR

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157-year-old Kansas City Board of Trade heading to Chicago
The Kansas City Star
Years of digitization have calmed the frantic trading floors of the exchange. On June 28 it will hear the last call for trades before heading to Chicago.
jlne.ws/1aanuZT

***DS: Now that’s a shame. Yesterday we had Minneapolis on the rise. Today we have KBOT, which beat all the big guys to provide the first stock index futures contract, the Value Line Index, in the mid 80s, closing its doors.

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Minnows take on giants in broking arena
Vanessa Kortekaas – FT.com
In spite of their gentlemanly image, stockbrokers in the City of London are driven as much by the theory of evolution as their striped counterparts in the animal kingdom: it is – and has always been – survival of the fittest. But the UK stockbroking food chain is changing and, as one senior broker explains, the smaller players are “nibbling away” at the business of the big broking groups.
jlne.ws/1aanskR

***DS: But here the small guys are fighting back. Mind you, now these small British broking firms have ‘dot.com’ type names like ‘Numis’, not eccentric British family names like ‘Wedd Durlacher Mordaunt’.

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BNY Mellon Awarded Key Patent for Margin Management Process
BNY Mellon, the global leader in investment management and investment services, has been awarded a patent from the United States Patent and Trademark Office for a key process enabling the secure management of collateral between counterparties via its Margin DIRECT service.
jlne.ws/1aanskT

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Proprietary trading roundtable
FOW
Proprietary trading has undergone a transformation like no other sector of the market over the past decade. Once seen as the wild west of the futures markets, with a reputation to suit, the firms that have survived the downturn have innovated and grown in strength and stature changing the image of the sector and playing an increasingly important role in markets across the globe. On June 3, FOW met with a number of the leading figures in the London proprietary trading market about how the business has evolved and the challenges and opportunities ahead.
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***DS: Will Mitting gathered a great bunch of people together for this FOW event. The traditional ‘point and click’ prop shops have sometimes been forgotten in the exchanges’ quest for volume from HFT firms, and their voice certainly needs to be heard.

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Current Account: Cyberattacks Are Banks’ Latest ‘Existential Risk’
Francesco Guerrera – MoneyBeat – WSJ
“Wanted: ethical hackers willing to launch repeated cyberattacks on a major U.S. bank to test its defenses. Competitive pay and discretion assured.” I made up the advertisement — there are few ads in the world of hacking — but the trend is real.
jlne.ws/1aansBa

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MarketsWiki

MarketsWiki Page of the Day
FIA Global
jlne.ws/11WABVj

MarketsWiki Recent Updates

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FIA Global; FIA Europe; Shanghai Futures Exchange; FIA Asia; FIA Japan; Futures and Options Association; Calypso Technology; CBOE Futures Exchange

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Lead Stories

ICE Wins EU Formal Antitrust Approval to Purchase NYSE Euronext
Stephanie Bodoni and Nandini Sukumar – Bloomberg
IntercontinentalExchange Inc. (ICE) won European Union approval to take over NYSE Euronext (NYX) after EU regulators said the deal wouldn’t harm competition.
jlne.ws/1aansBb

HKEx Maps Out Commodities Plan, Considers Raising LME Fees
Eleni Himaras & Chanyaporn Chanjaroen – Bloomberg
Hong Kong Exchanges & Clearing Ltd. mapped out a strategy for expanding its commodities business after buying the London Metal Exchange, seeking greater access to China, introducing products and potentially raising fees.
jlne.ws/1aansBd

***DS: HKEx have mapped out several ‘commodities plans’ but now they have LME on board do they have more chance of success? The issue in Asia is overcoming the regionalisation issue and most efforts so far like SMX and HKMX have not succeeded.

And, ooh, do I hear the sound of pips squeaking in LME trading circles? Higher fees? That’ll get the instigators of LME plan Bs hearts racing a little faster.

PBOC Opaque Stress Test Catches Funds in Crossfire
Fion Li & Alan Wong – Bloomberg
China’s lack of transparency during a stress test on the nation’s banks became a cause of worldwide concern as it rocked bond and commodity markets and helped wipe out $4.5 trillion in global equity value.
jlne.ws/1aanvgh

U.S. Civil Charges Against Corzine Are Seen as Near
BEN PROTESS – NYTimes.com
Federal regulators are poised to sue Jon S. Corzine over the collapse of MF Global and the brokerage firm’s misuse of customer money during its final days, a blowup that rattled Wall Street and cast a spotlight on Mr. Corzine, the former New Jersey governor who ran the firm until its bankruptcy in 2011.
jlne.ws/1aanvgi

Libor is an even bigger mess now
Paul Hodkinson – Financial News
This week marks one year since Barclays was fined by US and UK regulators for attempting to fix Libor. The anniversary was marked in two ways last week. First there was the effort by British authorities to seek criminal penalties against someone they allege was involved in the rigging as criminal fraud charges were filed against former UBS and Citigroup trader Tom Hayes.
jlne.ws/1aansBi

Mark Carney confirms plan for Libor reform committee
Brooke Masters, Chief Regulation Correspondent – FT.com
Leading financial regulators plan to set up a steering committee to oversee the reform of the London interbank offered rate, amid a deepening global probe into the alleged manipulation of key financial benchmarks.
jlne.ws/1aanvgl

Dublin urged to hold inquiry into banking crisis
Jamie Smyth in Dublin – FT.com
Dublin is facing fresh calls to hold a public inquiry into its banking crash following the broadcast of a phone call between senior executives at Anglo Irish Bank, which suggests the bank deliberately misled regulators as it sought help during the financial crisis.
jlne.ws/1aansBo

News from Turkey

Istanbul exchange to choose partner in Q3 before listing-chairman
Reuters
State-owned Bourse Istanbul will choose one of the exchanges bidding to buy into it at the end of the third quarter and will be ready to list its shares in early 2016, chairman Ibrahim Turhan told Reuters.
jlne.ws/1aansRH

Regulatory

CFTC Seeks Deeper View Of Liquidity Provided By High-Frequency Traders – Chilton
Forbes
A deeply liquid market is considered a sign of a healthy market with lots of participants, but a Commodity Futures Trading Commission official said all liquidity may not be the same and could be distorting markets.
jlne.ws/1aanvgq

CFTC commissioner seeks delay on CME proposal
Crain’s Chicago Business
Commodity Futures Trading Commissioner Bart Chilton said today that he’d like his agency to hold off on approving a CME Group Inc. proposal aimed at clarifying the definition of forbidden “wash trades” so that the agency can take more time to consider the issue.
jlne.ws/1aanvgy

Gensler Staring Down Administration and Banks on Derivatives Reform
Naked Capitalism
Yves here. Readers may recall that Gary Gensler, the head of the Commodities Futures Trading Commission, is being pushed out by Obama. His planned replacement is so appallingly lightweight as to assure that all she’ll be able to do is take dictation from financial firm lobbyists. But Gensler may be having a last laugh before he leaves office.
jlne.ws/1aansRO

Regulators explore several shades of dark-pool rules
Anish Puaar – Financial News
The rise of so-called dark-pool trading has spurred regulators across the globe into action. European policymakers are the latest to propose new ways to limit the amount of stock trading that occurs in these private venues.
jlne.ws/1aanvwP

Former CFTC Counsel Joins Norton Rose Fulbright’s US Member Firm in Washington, DC
Business Wire via Yahoo! Finance
An experienced government lawyer joins the global legal practice of Norton Rose Fulbright’s US member firm in its Washington, DC office.
jlne.ws/1aansRR

IOSCO Publishes Principles For The Regulation Of Exchange Traded Funds
jlne.ws/1aansRV

“The Anatomy of Speed” – Keynote Address Of CFTC Commissioner Bart Chilton To The Trading Show Chicago 2013, Chicago, Illinois
jlne.ws/1aanvwS

Meeting Of The Financial Stability Board In Basel On 24 June
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ASIC releases information sheets on involvement in private court proceedings and providing information to private litigants
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[Japan] FSA publishes Weekly Review No.51
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Exchanges & Trading Facilities

Deutsche Börse launches new brand architecture for its global IT offering
Deutsche Börse Group launches a new brand architecture for its global IT offering. The “7 Market Technology” series branding scheme supports the Group’s integrated business model and underscores the strategic IT objective to build and operate premium, innovative infrastructure.
jlne.ws/1aanysA

Rufus Leonard creates new brand for London Stock Exchange Group
The London Stock Exchange Group operates international equity, bond and derivatives markets, including the London Stock Exchange. It is also home to the FTSE index.
jlne.ws/1aanysE

What is the ASX up to?
Andrew Ballard | Fool Australia
Australia’s stock exchange owner and operator ASX (ASX: ASX) seems to be up to something more than its stated objective with its surprise $553 million renounceable rights issue. Just what that is has become the source of much speculation among analysts and the media, and it’s going to be very interesting to eventually find out.
jlne.ws/1aanvwY

ICE Endex Appoints Chairman and a New Independent Member to the Supervisory Board
Jacque Lafond, former President and CEO of Total Gas & Power Ltd has been appointed Chairman of the Supervisory Board and Marc M. van ‘t Noordende, CEO, nkt cables Group has been named as an independent member. The appointments are effective immediately.
jlne.ws/1aanysH

LME Looking at Feasibility of Clearing Products in Yuan, Li Says
Bloomberg
The London Metal Exchange is looking at the feasibility of clearing products in yuan, according to Hong Kong Exchanges & Clearing Ltd. , owner of the world’s largest metals bourse.
jlne.ws/1aanysJ

CBOE Holdings Announces Date Of Second-Quarter 2013 Earnings Release And Conference Call
CBOE Holdings, Inc. will announce financial results for the second quarter of 2013 before the market opens on Friday, August 2, 2013. A conference call with remarks by CBOE Holdings, Inc. senior management will begin at 7:30 a.m. Central Time.
jlne.ws/11Ww6Kq

TMX Group Hosts Trade Canada Conference In London
jlne.ws/1aanyJ8

CBSX Select Symbol Taker-Maker Pricing
jlne.ws/1aanyJb

Warsaw Stock Exchange Communique On Sending For Clearing Transactions In Instruments For Which WIG20 Is The Underlying
jlne.ws/1aanyJf

Direct Edge: Logical Port Fee Changes Effective July 1, 2013
jlne.ws/1aanyZu

ATHEX Resolutions Related To The Regulation
jlne.ws/1aanyZx

MIAX Options Holiday Schedule – July 4th
jlne.ws/1aanyZB

Hedge Funds & Managed Futures

Trend following is Dead, Time to Invest in it
Dan Collins | Dan Collins Report
I recently had a nice long conversation with author Michael Covel for the podcast series he produces. Covel is the author of several books on trend following and one of the few people that follow the space who has developed a broader audience for his work. In it we joked about the “one story” written about Commodity Trading Advisors in general and trend followers in particular. That story “Is Trend Following Dead” is written or floated every time the strategy goes through a rough patch like it has recently.
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Distressed Debt Fund Monitors And Hedges Its Risks For Low Volatility
Forbes
A $3.1 billion hedge fund that specializes in distressed debt needs good risk reporting for both regulators and clients. “We also needed a better understanding of the data coming out of the risk systems and making sure the numbers made sense,” said the fund director, who asked not to be named.
jlne.ws/1aanvNs

Exclusive: A big Bridgewater fund is under the weather
Reuters via Yahoo! News
By Katya Wachtel and Jennifer Ablan NEW YORK – A $70 billion portfolio managed by hedge fund titan Ray Dalio’s Bridgewater Associates and widely held by many pension funds to survive stormy markets is emerging as a big loser in the recent selloff in global markets.
jlne.ws/1aanvNv

Improved liquidity brings investors back to the table
Michael Wursthorn – Financial News
Private equity investors – or limited partners – are returning to the fundraising tables, driving another solid year for buyout firms, which saw shifts in their investor bases while solidifying relationships with their most loyal investors.
jlne.ws/1aanyZJ

Ex-banker faces off against China bears with hedge fund
Reuters via Yahoo! News
By Nishant Kumar and Michael Flaherty HONG KONG – Paul Conway’s eventful career in China included advising companies on stock offerings and overseeing a messy business restructuring — the latter stint forcing him to hire a bodyguard to fend off harassment from local thugs. Now the 43-year-old former banker is raising around $60 million for a hedge fund
jlne.ws/1aanyZL

LNG credit hedge fund seeks partners
Harriet Agnew – Financial News
LNG Capital, a credit hedge fund set up by Louis Gargour, the former head of fixed income at RAB Capital, wants to capitalise on a tough fundraising environment by luring start-up and smaller managers to its platform.
jlne.ws/1aanzg0

SunGard Identifies 5 Key Trends In Collateral Optimization
Recognizing the importance for financial firms to achieve effective collateral optimization, SunGard has identified five key trends that can help financial institutions find significant cost savings and competitive advantages.
jlne.ws/1aanzg4

Gold positions slump as $55 billion erased from funds
Resource Investor
Hedge funds cut positions 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 $55 billion.
jlne.ws/1aanw3Y

Wall Street’s $8 Billion CMBS in Limbo as Bulls Retreat
Bloomberg
Wall Street firms spent the past six months increasing commercial mortgage origination as investors bought the most debt in six years. That’s now backfiring as banks prepare to market $7.5 billion of loans earmarked to be sold as bonds before credit markets took a dive this month.
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Nuveen Announces Merger for Municipal Closed-End Funds
jlne.ws/1aanw47

Subscription starts for paragon AG corporate bond
jlne.ws/1aanzgd

Boerse Stuttgart: Peine GmbH Issues Bond In Bondm Segment
jlne.ws/1aanzgf

Banks & Brokers

UBS on track for top five equities spot
Richard Partington – Financial News
UBS is on track to end the first half of this year as one of the top five equity capital markets bookrunners in Europe, the Middle East and Africa for the first time since 2009.
jlne.ws/1aanwkm

Investment chief departs Axa
Mike Foster – Financial News
The chief executive of French insurer Axa’s E560bn fund management business has stepped down and has been succeeded by the former head of its the Italian insurance arm.
jlne.ws/1aanwkn

Deutsche leads Mid East pack at halfway stage
David Thomas – Financial News
Deutsche Bank is the top investment banking fee earner in the Middle East as the first half of 2013 draws to a close, with western banks dominating the year-to-date rankings.
jlne.ws/1aanzww

Judge Approves Goldman’s Bankruptcy Loan for Arcapita Bank
jlne.ws/1aanwks

Clearing & Settlement

OCC Announces Standard Options Are Now Being Processed On Friday
After receiving approval from The Securities and Exchange Commission (SEC), OCC transitioned the standard monthly back office expiration process from Saturday to Friday night. This change was effective with the standard expiration process that took place on Friday, June 21, 2013, and was the culmination of a multi-year industry wide project.
jlne.ws/1aanzwC

Twelve FCMs now live on Traiana’s Harmony Network for Exchange Traded Derivatives
Traiana, the leading provider of post trade solutions, announces today that the total number of futures commission merchants (FCMs) on the Harmony Network for Exchange Traded Derivatives (ETDs) has now reached twelve. From this network there has been a rapid uptake of buy-side hedge funds and asset managers benefitting from the service. Trade volume on the Traiana ETD ClientLink service has grown by a factor of 20 over the past 12 months.
jlne.ws/1aanzwF

Broadridge Helps Bloomberg Tradebook Go Self-Clearing
Broadridge Financial Solutions , Inc., the leading provider of investor communications and technology-driven solutions to financial services firms and corporate issuers globally, today announced that Bloomberg Tradebook, the global agency broker service of Bloomberg L.P., adopted Broadridge’s business process outsourcing (BPO) solutions to provide U.S. equities clearance and settlement services for its institutional clients.
jlne.ws/1aanzwI

Indexes & Products

ISE ETF Ventures and NationsShares Announce Agreement to License and List Options on the Nations VolDex Index
jlne.ws/1aanwkA

TSE has published the index value of TSE Home Price Index for April
jlne.ws/1aanwkD

Moscow Exchange Indices Weekly Review: June 17 – 21, 2013
jlne.ws/1aanwAV

Publication Of Warsaw Stock Exchange Indices Resumed
jlne.ws/1aanwAW

Exchange Traded Concepts Delivers YieldShares High Income ETF (YYY) to Market
jlne.ws/1aanzNb

Technology

Goldman Sachs and Trading Technologies Enter into Global Software and TTNET Distribution Agreement
Trading Technologies International, Inc. today announced that it has extended its existing software license agreement with Goldman Sachs. Under the new agreement, Goldman Sachs has added TTNET to its suite of futures trading systems offered to the firm’s institutional clients.
jlne.ws/1aanzNl

Suitors circle as Calypso owners seek exit route
Michelle Price and Tim Cave – Financial News
Calypso, the US-based capital markets technology company, is up for sale and attracting interest from private equity investors, according to two people familiar with the matter.
jlne.ws/1aanA3A

RTS Realtime Systems Announces Highlights of Automated Trader Magazine Global Trading Trends Survey
jlne.ws/1aanA3C

Enforcement

U.S. appeals court upholds conviction of Galleon’s Rajaratnam
Reuters via Yahoo! News
By Jonathan Stempel and Nate Raymond – A federal appeals court on Monday upheld the insider trading conviction of Galleon Group hedge fund founder Raj Rajaratnam, rejecting his argument that wiretap evidence was used improperly to convict him.
jlne.ws/1aanA3F

[ASIC] Former Director sentenced for credit offences
jlne.ws/1aanA3G

BCSC alleges that Vancouver man structured business affairs to evade securities regulations
jlne.ws/1aanA3K

Environmental & Energy

ICE Endex Appoints Chairman and a New Independent Member to the Supervisory Board
ICE Endex, a leading Continental European energy exchange, today announced the appointment of the Chairman, as well as a new, independent member to its Supervisory Board.
jlne.ws/1aanAk4

Obama to Outline Ambitious Plan to Cut Greenhouse Gases
The New York Times
President Obama will propose a sweeping plan to address climate change on Tuesday, setting ambitious goals and timetables for a series of executive actions to reduce greenhouse gas pollution and prepare the nation for the ravages of a warming planet.
jlne.ws/10hXia2

**RKB — Obama expected to propose the first limits on carbon pollution from existing power plants and would promise to complete pending rules for new plants. He will direct the Environmental Protection Agency to work with states and industries to devise standards for emissions of carbon dioxide and other heat-trapping gases from existing power plants by June 2014, the aides said, and will finalize the rules in June of the following year. The president will commit to $7 billion in financing for international climate mitigation and adaptation projects, primarily in developing countries and nations most vulnerable to rising seas and other climate-related threats. But it is not clear now much of that is new money and how much is already committed under existing international aid programs.

Obama unveils climate change plan that goes around Congress
The Hill’s E2 Wire
President Obama is launching fresh battles over climate change with plans to curb emissions using executive powers that sidestep Congress — including controversial rules to cut carbon pollution from existing power plants.
jlne.ws/146UaPc

**RKB — The White House Plan. White House blog entry and video.

Asia-Pacific

SGX Reports FY2013 Results On 24 July
jlne.ws/1aanwRp

SGX welcomes Goodland Group To Mainboard
jlne.ws/1aanwRq

Shanghai Stock Exchange Improves Disciplinary Sanctions Mechanism In Three Aspects
jlne.ws/1aanAke

Shenzhen Stock Exchange Market Bulletin 24 June, 2013 (Issue 5)
jlne.ws/1aanAkf

Osaka Securities Exchange: Partial Revision To The Daily Price Limit For JGB Futures And Options In Conjunction With The Derivatives Markets Integration
jlne.ws/1aanwRx

Shenzhen Stock Exchange Agriculture Comprehensive Enterprises Index Launched Today
jlne.ws/1aanwRz

Frontier Markets

Bangladeshi expert granted permit to set up first commodity exchange in Myanmar
Financial Express
Myanmar government has invited a Bangladeshi expert to set up the first commodity exchange in Myanmar. According to a letter, the Directorate of Investment and Company Administration under the Ministry of National Planning and Economic Development of the Government of Myanmar has granted a permit to launch Myanmar International Commodity Exchange Limited, an initiative by Bangladeshi expert on capital market Wali-ul-Maroof Matin.
jlne.ws/1aanAkk

Japan helps Myanmar to launch its first Data Center
Eleven
Myanmar is planning to launch its first Data Center to set up a very first stock exchange in the country with technical assistance from Japan, according to the sources from the Central Bank of Myanmar.
jlne.ws/1aanwRB

DGCX to list SENSEX Futures for trading on 5 July
The Dubai Gold and Commodities Exchange will launch a futures contract based on SENSEX, the blue-chip stock index of India’s leading bourse, the Bombay Stock Exchange. The contract will be formally listed by DGCX on 5 July 2013.
jlne.ws/1aanAkn

Zambia Bond Exchange Plans Market to Rival Lusaka Bourse
Matthew Hill – Bloomberg
Zambia’s Bond and Derivatives Exchange plans to open a second debt-trading platform in Africa’s biggest copper producer by February to rival the Lusaka Stock Exchange, a market official said.
jlne.ws/1aanwRF

Quantitative easing: End of the line
Robin Wigglesworth and Stefan Wagstyl – FT.com
International investors have long shunned Honduras, an impoverished Central American country plagued by violence and coups. That changed this year. Although Honduras struggles to pay its bills and suffers one of the world’s highest murder rates, it made a bond market debut in March, with investors happy to lend $500m for the next decade.
jlne.ws/1aanx7U

Emerging markets on course for schism following MSCI loss
Anish Puaar and Sarah Krouse – Financial News
Emerging markets, once heralded as the saviour of poor returns from the west, are set to be viewed as increasingly fragmented investment propositions following last week’s dramatic plunge in the value of equities.
jlne.ws/1aanAAJ

Citigroup to open representative office in Iraq
Reuters via Yahoo! Finance
DUBAI – Citigroup Inc said on Monday it had obtained approval from Iraq’s central bank to open a representative office in that country, becoming one of the first global banks to set up there since the U.S.-led invasion of 2003.
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