Industry news

June 27, 2013: Eurex chief complains of M&A regulatory ‘asymmetry’; LME clearing fees will match LCH.Clearnet’s just-tripled charges; EU reaches deal on failed banks

The CEO of Eurex Exchange calls “favoritism” on EU antitrust regulators after the ICE-NYSE merger approval. The London Metal Exchange announces a clearing fee increase that is in line with recently-declared fee hikes from LCH.Clearnet. EU finance ministers give a thumbs-up on a key piece of how the union should deal with failing banks.

First Read

Supercycle… punctured?
David Setters – Contango Markets
Today I am feeling just a little jaded so I am going to give the floor to my learned colleague, Clive Furness, MD at Contango Markets, who last night donned a kilt at the IDX Gala Dinner and in doing so raised a ‘shed load’ of money for Futures for Kids. Imagine, if you will, Clive delivering this very brief homily from a lectern while clad in full tartan regalia….

From CF:

Does the commodities super cycle have a flat tyre? Since 1999, the commodities markets have enjoyed a new lease of life – the wakening of China as a major consumer of all things commodity, the advent of new, long-term investors such as pension funds, and the diversification story – have driven the markets in terms of higher prices and greater volumes. Recently things seem to have stalled, with the simultaneous slowdown of demand from China, the re-emergence of over-production with high stock levels in many products, numerous markets in contango (not good for the buy-hold fraternity) and the advent of more onerous regulation hitting prices, raising costs and lowering returns. The markets will of course deal with these things as they always have, but with traditional correlations breaking down, trade finance at low levels, a higher interest rate environment and the mix of participants changing with traders taking over where banks used to be, we may be about to witness a slowdown in liquidity alongside a slide in prices. We probably won’t go back to the dark days of the 1980s and 90s where you couldn’t give commodities away but the optimism that the last 10 years have brought to the commodity markets is due for a retracement…look out below! As for me the only super cycle I am interested in is the one that will help me get rid of the excess calories I have ingested during IDX Week

***DS: Come back tomorrow for a full sneak peek at the kilt!

++++

Commodities traders call end of ‘supercycle’
Jack Farchy and Javier Blas – FT.com
The commodities “supercycle” is dead. If anyone was still in doubt about whether the era of ever-rising prices driven by rapid Chinese growth was over, events of the past week have surely dispelled it.
jlne.ws/10n206E

++++

Coffee Futures: The Highs And Lows Of A Cup Of Joe
NPR
NPR’s Uri Berliner gets a taste of the commodities market with a $227 wager on coffee. The futures price for coffee has tumbled for more than three years. But as he learns from interviews with coffee roasters and a futures broker, trying to predict coffee prices is not for the faint of heart.
jlne.ws/10n1XHQ

***(Clive Furness): Predicting coffee market prices? Game of mugs – play it at your local Starbucks, where, unsurprisingly, prices generally don’t go down. The moral of this story is that the only place to make a profit in the coffee market is brewing it not trading it.

++++

The SEC Says It Wants Big Banks To Admit Guilt, But Doubts Remain
Forbes
Remember when federal Judge Jed Rakoff scared the bejesus out of Wall Street in 2011? That’s when he refused to sign off on a $285-million civil settlement between Citigroup and the Securities and Exchange Commission over a massive mortgage fraud case.
jlne.ws/10n1ZQ8

***DS: Perhaps we could have a Truth and Reconciliation Commission like in South Africa for banks? Although my ex pit observer friends tell me it was not easy getting traders to make up…

++++

IDBs diversify and adapt to the changing market
FOW
IDBs are often seen as the big losers from regulatory change. However, William Mitting found that they are adapting their business models and bullish on the changes ahead. On March 19, an application to register a derivatives exchange was received by the Commodities Futures Trading Commission. Should the application be successful, GFI Group will become the third of the big five interdealer brokers to operate or have the licence to operate a derivatives exchange joining US rival BGC and London-headquartered Icap. What is particularly interesting is that none of the three appear to know exactly how exchange traded derivatives will fit into their operations in the new world.
jlne.ws/10n1ZQ9

***(Clive Furness): I think you need to be careful what you wish for!

The issue is that the IDB community have spent years trying to stop their businesses migrating to exchanges. Had they operated in a more collaborative way with the exchanges they might now be able to enjoy annuity revenues from products they have nurtured down the commoditisation curve and then licensed to the exchanges. It does have a bit of the kid in the toyshop about it I am afraid.’I want one of those!’

++++

Jon Corzine, the Biggest Little Target the Feds Can Sue
Jonathan Weil – Bloomberg
Here’s a novel approach for U.S. financial regulators: The Commodity Futures Trading Commission has told Jon Corzine‘s lawyers that it plans to sue him over the collapse of MF Global Holdings — and this is the unusual element — without giving him a chance to settle.
jlne.ws/10n1XHR

++++

Asset managers told to explain themselves better
Sarah Krouse in Monaco – Financial News
Fund managers should do a better job of explaining their businesses to regulators and differentiating themselves from other segments of the financial services sector, investment industry experts told a leading asset management conference.
jlne.ws/10n1XHS

***DS: Having been to a fair number of hedge fund conferences in my time I can sympathise with this!

++++

Short view: hard going for hedge funds
James Mackintosh – FT.com
Would you have preferred a hedge fund caught in Lehman Brothers when the US bank collapsed in 2008, or one which made a better choice of prime broker? It sounds like a stupid question. Obviously you would prefer to have access to your money – as chastened hedge fund managers were told afterwards, loudly and often alongside legal threats.
jlne.ws/10n206o

++++

National watchdogs dismiss hopes of ‘über-regulator’
Michelle Price – Financial News
The growing incidence of clashes between national regulators has given rise to a novel idea: what about a World Trade Organisation for financial services regulators? Unlikely, according to the world’s most important national watchdogs.
jlne.ws/10n206q

***DS: Ok, so I’d put the Global Financial Services Truth and Reconciliation Commission in this new WTO.

++++

A dark, cruel comedy at the expense of the Irish taxpayer
Peter Cunningham – FT.com
Even Jonathan Swift, creator of Gulliver’s Travels and Ireland’s most famous satirist, would surely have hesitated before writing this scene. It is September 2008 and Ireland’s hapless government, faced with an unprecedented flight of capital from the country’s banking system and acting on the facts given to it, has decided to guarantee the obligations of all Irish banks.
jlne.ws/10n206s

++++

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 -

++++

MarketsWiki

MarketsWiki Page of the Day
Aequitas Innovations, Inc.
jlne.ws/12q0DR0

MarketsWiki Recent Updates

People

Tim Merryman

Companies, Organizations and Groups

Dubai Gold and Commodities Exchange; Aequitas Innovations Inc.; Alpha Trading Systems; Bank of Montreal; Perseus Telecom

Products

SENSEX Index

Miscellaneous

European debt crisis; Sovereign debt; Five Minutes With Chip Dempsey; Only 5! How did you guys do that?

Five Minutes With James J. Johanik

Statistics

41,113,962 pages viewed, 7,553 articles, 161,283 edits
MarketsWiki Statistics

Lead Stories

Eurex chief complains of M&A regulatory ‘asymmetry’
Michelle Price – Financial News
The chief executive of Eurex, the derivatives market owned by Germany’s Deutsche Börse, has accused the European competition authorities of favouritism towards US-exchange operators after the European Commission unconditionally approved IntercontinentalExchange’s $10.1bn takeover of NYSE Euronext.
jlne.ws/10n206t

LME clearing fees will match LCH.Clearnet’s just-tripled charges
Reuters
The London Metal Exchange (LME) expects its in-house clearer LMEClear will charge members fees similar to provider LCH.Clearnet’s just-tripled charges for clearing LME trades.
jlne.ws/10n1XHW

***DS: Ooh, those pips will really be squeaking now.

And you can be sure that a lot of people will be looking at the metals trading landscape post HKEx takeover of LME with interest. At the IDX exchange leaders panel Jeff Sprecher said of the LME deal, ‘There was an action and I’m sure there will be an equal and opposite reaction.’ Phupinder Gill of CME Group also said they’d be looking at moving into markets ‘where a lot of inefficiencies exist now’.

EU reaches deal on failed banks
Alex Barker in Brussels – FT.com
Rules to force losses on creditors in failed banks were agreed by EU finance ministers early on Thursday, putting in place another piece of a eurozone banking union that could eventually share the costs of future bank bailouts.
jlne.ws/10n206u

***DS: Another job for the Truth and reconciliation Commission. It’s going to be busy!

European Financial Transaction Tax Delayed
TOM FAIRLESS – WSJ.com
A plan by 11 European countries to tax financial transactions will be delayed by at least six months as participating governments have yet to agree on key aspects of the new levy, including its scope.
jlne.ws/10n1XI1

***DS: More smiles in London as the guys on the other side of the Channel fail to agree on this ‘heinous’ (at least to the F&O industry) tax.

ETFs under scrutiny in market turbulence
Tracy Alloway and Arash Massoudi in New York – FT.com
Like a tremor that rattles the girders of a gleaming skyscraper, a market sell-off can be the moment that exposes flaws in the plumbing of Wall Street’s favourite products. For exchange-traded funds, a $2tn industry that has boomed in recent years, last week’s tumble in asset prices has unearthed possible cracks in the pipework.
jlne.ws/10n206z

Marc Rich, Fugitive Commodities Trader in 1980s, Dies at 78
David Henry – Bloomberg
Marc Rich, the commodities trader who fled the U.S. to avoid federal indictments during the 1980s before President Bill Clinton pardoned him two decades later, has died. He was 78.
jlne.ws/10n1XI2

CFTC may sue former Chicago MF Global official
Crain’s Chicago Business
The federal agency that oversees the futures industry may file a civil enforcement action against former MF Global Inc. assistant treasurer Edith O’Brien, a report says.
jlne.ws/10n1XI3

In bold move, Pope names panel to reform Vatican bank
Reuters
Pope Francis set up a special commission of inquiry on Wednesday to reform the Vatican bank, his boldest move yet to get to grips with an institution that has embarrassed the Catholic Church for decades.
jlne.ws/10n20Dq

ICAP Executive Is Linked to Efforts to Rig Libor
DAVID ENRICH – WSJ.com
A top executive at brokerage firm ICAP PLC knew of an arrangement with UBS AG that U.S. and British regulators allege was part of a scheme to rig benchmark interest rates, according to people familiar with the matter.
jlne.ws/10n206C

Regulatory

Gensler Rejects Cross-Border Compromise as Wall Street Boost
Dave Michaels – Bloomberg
U.S. Commodity Futures Trading Commission Chairman Gary Gensler insisted the agency push through its cross-border derivatives rules next month, a goal he said would be delayed by a fellow Democrat’s proposal.
jlne.ws/10n20Dr

Be realistic about Libor reform, says FCA
Reuters via Yahoo! News
By Clare Hutchison LONDON – The head of the Financial Conduct Authority and co-chair of a G20 review into Libor reform has counselled against rushing into changing how the widely used interest rate benchmark is set, saying on Wednesday that regulators need to be realistic.
jlne.ws/10n20Dv

SEC Gets Set to Test Policy for Guilt Admissions
JEAN EAGLESHAM – WSJ.com
Securities and Exchange Commission enforcement chiefs have drawn up a hit list of impending cases where officials intend to test their new policy of requiring admissions of wrongdoing when settling civil charges, according to people close to the agency.
jlne.ws/10n206F

‘No Documents For You?’
Brian L. Rubin – Law360
Previously, if the Financial Industry Regulatory Authority requested documents or information unrelated to the securities business under Rule 8210, broker-dealers or registered representatives may have responded by stating, like the soup stand owner on the TV show, Seinfeld, “No documents for you!” While the ramifications of FINRA’s recent amendments to Rule 8210 have not been fully explored yet, that response may no longer be appropriate. FINRA, broker-dealers, registered representatives and associated persons have been grappling with FINRA’s newly expanded authority.
jlne.ws/10n20Dy

CFTC’s Division of Market Oversight Extends Time-Limited, No-Action Relief for Swap Dealers and Major Swap Participants From Compliance With Reporting Obligations
The Commodity Futures Trading Commission’s (“Commission”) Division of Market Oversight (“Division”) today issued a no-action letter extending time-limited relief to Swap Dealers (“SDs”) and Major Swap Participants (“MSPs”) from the obligation to report valuation data for cleared swaps as required by § 45.4(b)(2)(ii) of the Commission’s regulations.
jlne.ws/10n20DC

CFTC’s Division of Swap Dealer and Intermediary Oversight Issues No-Action Relief from Certain External Business Conduct Standards and Documentation Standards
The Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight (DSIO) today announced the issuance of a no-action letter relating to certain duties imposed on swap dealers (“SDs”) and major swap participants (“MSPs”) pursuant to the Commission’s Business Conduct Standards with Counterparties (“External BCS”), as well as certain documentation requirements imposed on SDs and MSPs pursuant to Commission regulation § 23.504.
jlne.ws/10n20DG

SocGen CEO Says European Banks Need Leverage Reflecting Lending
Bloomberg
European banks shouldn’t be subjected to the same leverage measures as U.S. competitors, which rely less on lending to finance clients, Societe Generale SA Chief Executive Officer Frederic Oudea said.
jlne.ws/10n206H

ESMA Seeks New Members For Its Securities Markets Stakeholders Group
The European Securities and Markets Authority (ESMA) is seeking new members for the Securities and Markets Stakeholder Group (SMSG), as the current members’ term expires at the end of 2013. The SMSG’s aim is to facilitate ESMA’s consultation on its work with relevant securities markets stakeholders from around the European Union (EU).
jlne.ws/10n20DI

Exchanges & Trading Facilities

HKEx, LME And China Beijing International Mining Exchange Sign MOU
Hong Kong Exchanges and Clearing Limited (HKEx), The London Metal Exchange (LME) and the China Beijing International Mining Exchange (CBMX) today (Thursday) signed a memorandum of understanding (MOU) on cooperation and the exchange of information.
jlne.ws/122h06f

Canada’s TMX scales back global ambitions
Tim Cave – Financial News
Canada’s top stock exchange operator TMX Group, which last year fell foul of a shareholder revolt in a bid to merge with the London Stock Exchange, has scaled back its global ambitions to focus on itself, according to the group’s chief executive.
jlne.ws/10n20mU

London Exchange Seeks to Add to Its Menu
JACOB BUNGE And MICHELLE PRICE – WSJ.com
Xavier Rolet is that rare executive who makes his own wine, so it is perhaps appropriate that the French-born head of the London Stock Exchange wants to add an offering for Europe’s bread and pasta makers to the menu.
jlne.ws/10n20DJ

Vienna, Warsaw bourse merger talks have ‘gained momentum’
Warsaw Business Journal
The CEE Stock Exchange Group, which controls the Vienna Stock Exchange and others, is interested in the further consolidation of stock exchanges in the region, the company’s representatives told the Polish Press Agency.
jlne.ws/10n20mV

NYSE Euronext and The Receivables Exchange Renew Strategic Partnership to Jointly Market Corporate Receivables Program
NYSE Euronext (NYX) and The Receivables Exchange (TRE), the leading online marketplace for U.S. receivables sales, today announced the renewal of their strategic alliance to market TRE’s Corporate Receivables Program (CRP) to potential accounts receivable sellers, including New York Stock Exchange-listed companies.
jlne.ws/10n20TY

NYSE and group of issuers form NYSE Governance Council to facilitate ongoing discussions on corporate governance matters
The New York Stock Exchange (NYSE) today announced the formation of the NYSE Governance Council to facilitate an open dialog between publicly-held companies and the NYSE on the rapidly evolving and increasingly complex corporate governance landscape.
jlne.ws/10n20mZ

Brazilian Exchange and Chi-X Global Certify Chi-FX
Brazil’s premier stock and derivatives exchange, BM&FBovespa, and Chi-X Global have completed the formal acceptance of Chi-FX the new trading platform which will allow overseas investors to trade in Brazilian financial instruments without having currency risk.
jlne.ws/10n20U0

ICE-NYSE in the Final Leg of Merger
Zacks via Yahoo! Finance
With the unconditional approval from the European Union Commission, the NYSE- IntercontinentalExchange merger is heading toward a successful culmination.
jlne.ws/10n20n0

Exchanges Agree to Add Smaller Trades to U.S. Stock Volume Count
Sam Mamudi – Bloomberg
Stock trades of fewer than 100 shares that have traditionally been excluded from U.S. share volume tallies are poised to be added to the count.
jlne.ws/10n20n2

Direct Edge Trading Notice #13-26: Direct Edge Retail Order Designation Update
jlne.ws/10n20n5

Hedge Funds & Managed Futures

Poland to Shrink Private Pension Funds
MARCIN SOBCZYK – WSJ.com
The Polish government, looking to shore up public finances, said it plans to reduce the role private funds play in the country’s mandatory pension system in a move that may put large stockholdings of listed companies in the state’s hands.
jlne.ws/10n20na

Pimco’s Bill Gross To Bond Investors: Batten Down The Hatches, Don’t Jump Overboard
Forbes
Stay the course in rocky seas, bond guru says, but expect a bumpy ride.
jlne.ws/10n20U1

US activity fuels busy first half in the global private equity markets
Claire Coe Smith – Financial News
A doubling of the amount of money spent on buyouts in the US in the first half of 2013 compared with a year ago is giving cause for optimism that a corner has been turned in the global private equity markets.
jlne.ws/10n20nb

Optiver looks beyond EU for growth
Tim Cave – Financial News
High-frequency trading firm Optiver made over half of its revenues from outside the EU for the first time in its history last year, as European regulators take a hardline stance towards high-speed trading.
jlne.ws/10n23iB

University data sparks debate about trading policy
The Michigan Daily
Economic data produced by the University in collaboration with Thomson Reuters has been in this month’s headlines of the Huffington Post, The Wall Street Journal and The New York Times — portraying the University in a less than positive light.
jlne.ws/10n23iC

Ex-Morgan Stanley junior is first Zaoui Capital hire
Matt Turner – Financial News
Zaoui Capital, the advisory firm set up last year by brothers Michael and Yoel Zaoui – two of the most successful investment bankers of the past decade – has made its first hire, a former junior banker at Morgan Stanley.
jlne.ws/10n20U2

Hedge Fund Association and Agecroft Partners Announce Hedgeopolis New York Investor and Hedge Fund Conference
Business Wire via Yahoo! Finance
The Hedge Fund Association and Agecroft Partners are teaming up to create one of the top hedge fund conferences in the world. Hedgeopolis New York will be held in New York City at The Metropolitan Club on November 4, 2013.
jlne.ws/10n23iE

Trader tied to rate-rigging probe departs Brevan Howard
The Wall Street Journal
A trader who Japanese regulators allege is connected to the global interest-rate-rigging scandal resigned last week from hedge fund Brevan Howard Asset Management, according to a spokesman for the firm.
jlne.ws/10n20U7

Hedge fund guru Paulson cashes in on CNO wager
Indianapolis Business Journal
John Paulson, who made $15 billion betting against real estate and then saw his fortune shrink as gold slumped, has more than doubled his hedge fund’s money on Carmel-based CNO Financial Group Inc.
jlne.ws/10n23iF

Even The Best Performing Hedge Fund Of 2012 Is Getting Hammered In This Market
Business Insider
NEW YORK – One of last year’s top-performing hedge fund managers, Deepak Narula , is suffering a reversal of fortune as the mortgage bonds that steered him to the top of the industry in 2012 are now delivering losses.
jlne.ws/10n20U8

Nuveen Flexible Investment Income Fund Begins Trading on NYSE
Business Wire via Yahoo! Finance
Nuveen Investments, a leading global provider of investment services to institutions as well as individual investors, today announced it has successfully completed the initial public offering of the Nuveen Flexible Investment Income Fund .
jlne.ws/10n23iG

Banks & Brokers

BOE Sees Risks to Banks from Sharp Increase in Interest Rates
Bloomberg
The Bank of England said lenders are vulnerable to a sharp increase in long-term interest rates as it warned that confidence in the financial system remains fragile.
jlne.ws/10n23iK

Knight Capital Group And GETCO Announce Approvals Of Merger At Respective Special Meetings
Regulatory Approvals Of Merger Received From FINRA And FCA – Currently Scheduled Closing Date Of July 1, 2013 – Preliminary Results Of Knight Stockholder Cash/Stock Election
jlne.ws/10n23iL

UBS France fined $13MN over control failures
Associated Press via Yahoo! News
PARIS — UBS France is being fined 10 million euros after French authorities found the bank delayed tightening up controls to curb money laundering and cross-border fiscal fraud.
jlne.ws/10n20Ub

BofA, Barclays sued over Libor by University of California
Providence Business News
Bank of America Corp. and Barclays Plc are among more than a dozen banks sued by the Regents of the University of California over claims they manipulated of the London Interbank Offered Rate.
jlne.ws/10n23iM

Statement Of European Commissioner Barnier Following Agreement In ECOFIN On Bank Recovery And Resolution
jlne.ws/10n20Uc

European Commission: Breakthrough Brokered By Irish Presidency On Bank Recovery And Resolution
jlne.ws/10n23iP

Clearing & Settlement

Eurex Clearing launches next-generation risk management system
Eurex Clearing, Europe’s leading clearing house, has launched its next-generation risk management system, Eurex Clearing Prisma, into production. Eurex Clearing Prisma applies a portfolio methodology compared to traditional product-by-product based margining approaches. In a stepwise approach, the new system will be rolled out for all products cleared by Eurex Clearing and replace the current Risk Based Margining methodology.
jlne.ws/10n20Ud

CMEGroup – Clearing: June 2013 Currency Order-to-Pay Charges
jlne.ws/10n20Uf

Technology

CQG announces new beta version of flagship product
CQG says the latest version of its flagship product has a number of enhancements, including Heikin-Ashi, and that other chart additions are planned.
jlne.ws/10n23iS

SunGard’s XSP Wins The Systems In The City 2013 Award For Corporate Actions
SunGard has won the 2013 Systems in the City Award for Best Corporate Action Solution. SunGard’s XSP won the award after securing the GoodAccreditation standard for the third year running from Goodacre UK, a leading specialist consultancy for the securities and financial services industry.
jlne.ws/10n21at

The Numerix Risk Scenario Framework Introduces New Functionality for the Design and Implementation of User-defined Risk Scenarios, Stress Tests and Greeks
Numerix, the leading provider of cross-asset analytics for derivatives valuations and risk management, today unveiled its latest innovation – the Numerix Risk Scenario Framework. Built on the highly flexible, fully transparent pricing and risk capabilities of the Numerix CrossAsset analytics platform, the robust framework is an easy-to-use scripting language for defining bespoke risk scenarios, stress tests and greeks.
jlne.ws/10n21aw

Equinix Selected by MarkitSERV for Credit Centre
Business Wire via Yahoo! Finance
Equinix, Inc. , the global interconnection and data center company, today announced that MarkitSERV, the most widely used electronic trade processing service for over-the counter (OTC) derivative transactions, deployed its Credit Centre in Equinix International Business Exchange data centers in New York and Chicago.
jlne.ws/10n21ax

Extraordinary General Meeting In Orc Group Holding AB
jlne.ws/10n21aD

Broadridge To Acquire Bonaire – Combination Will Extend Broadridge’s Leadership In Mutual Fund And Asset Management Solutions
jlne.ws/10n23z8

The Australian Securities Exchange Selects Emulex for Trade Latency Monitoring and Network Troubleshooting
jlne.ws/10n21aF

Enforcement

SEC Charges Medical Imaging Device Company and Its CEO with Fraud
The Securities and Exchange Commission today announced that it filed fraud charges on Tuesday against Burbank, Calif.-based Imaging3, Inc., and its founder and chief executive Dean Janes for misleading shareholders about the Federal and Drug Administration (FDA)’s view of the company’s medical device.
jlne.ws/10n23zb

FINRA Fines StateTrust Investments $1 Million and Orders $353,000 in Restitution for Charging Unfair Prices in Fraudulent Bond Transactions
The Financial Industry Regulatory Authority (FINRA) announced today that it has fined StateTrust Investments, Inc. $1.045 million and sanctioned the firm’s head trader, Jose Luis Turnes, for charging excessive markups and markdowns in fraudulent corporate bond transactions.
jlne.ws/10n23zc

FCA review into mobile phone insurance finds examples of poor product design, unclear terms, and inadequate claims and complaints handling
jlne.ws/10n21aJ

Former Everest CEO provides two-year enforceable undertaking to ASIC
jlne.ws/10n21aL

Wickham auditor removed from industry
jlne.ws/10n21qZ

Vancouver man agrees to sanctions for contravening cease trade orders
jlne.ws/10n21r1

SIX Exchange Regulation: Sanction Proposal Against Weatherford International Ltd.
jlne.ws/10n23zl

The Board Of Oslo Børs Imposes A Violation Charge On Northland Resources
jlne.ws/10n23zm

Bursa Malaysia Securities Publicly Reprimands ETI Tech Corporation Berhad For Breach Of Listing Requirements
jlne.ws/10n21r4

Environmental & Energy

US climate plan may boost cap and trade: Wynn
Reuters
President Barack Obama’s climate plan, unveiled this week, may boost regional schemes to cut greenhouse gas emissions, known as cap and trade, four years after the United States failed to pass legislation for a nationwide programme.
jlne.ws/11JxuVA

Obama Links Keystone Approval To Carbon Emissions
AP
President Barack Obama said Tuesday that the proposed Keystone XL pipeline project from Canada to Texas should only be approved if it doesn’t worsen carbon pollution.
jlne.ws/1aP9Hqr

Factbox – Highlights of Obama’s plan to cut carbon pollution
Reuters
The White House on Tuesday released a plan to cut global carbon pollution and address the effects of climate change in three broad ways: cutting carbon pollution domestically, preparing the country to be resilient to climate impacts, and leading international efforts to target climate change.
jlne.ws/16ACWdl

Asia-Pacific

HKFE Announces Revised Margins For Futures Contracts
jlne.ws/10n23zn

Hong Kong’s Securities And Futures Commission Annual Report: Regulation For Quality Markets
jlne.ws/10n21r6

Frontier Markets

Goldman scoops $1.6bn emerging-markets mandate
Mark Cobley – Financial News
Goldman Sachs Asset Management has scooped a $1.6bn mandate to invest in emerging market bonds – one of its biggest sub-advisory business wins in Europe in recent years – illustrating investors’ continued appetite for these assets despite the recent market sell-off.
jlne.ws/10n23zp

Citigroup Targets Iraq as Corbat Scales Back in Emerging Markets
Bloomberg
Citigroup Inc. , the U.S. lender exiting some emerging markets , said it’s seeking to benefit from an estimated $1 trillion of infrastructure spending in Iraq as the country rebuilds roads and bridges after the war.
jlne.ws/10n23PC

Dubai Financial Market Board Of Directors Meeting Wednesday 26 June
jlne.ws/10n23PD

Palestine Exchange: Cash Dividends For 2012 Exceeded USD 126 Million – 6.43% Dividend Yield To Market Cap. In 2012
jlne.ws/10n21r8

Giyani Gold Lists On Johannesburg Stock Exchange’s AltX Board
jlne.ws/10n23PI