April 24th 2013

elb2MF Global’s trustee suing Jon Corzine will be an interesting case…Certainly we were always advising a wary stance on MF Global once the Corzine strategy became known. Meanwhile, elsewhere in court no sooner has NASDAQ completed investment in TOM than Euronext sues the Dutch retail derivatives MTF…


Elsewhere whatever you think of their analysis, the fact that the Huffington Post is discussing the structure of Bitcoin exchanges confirms that cryptocurrency has gone mainstream. (Incidentally, Patrick had a most enjoyable time addressing the Polish Bitcoin conference in Torun last week incidentally on the future infrastructure of alternative money with a spot of appropriate heliocentricity thrown in!).


Meanwhile the CBOE considering a move away from providing its regulatory services is interesting…


There are lots of interesting nuggets to read today, enjoy!


Public Markets

Corzine sued by MF Global trustee over firm’s collapse


Jon Corzine was sued by the bankruptcy trustee liquidating MF Global Holdings Ltd (MFGLQ.PK), who accused the former chief executive of negligently pursuing a high-risk business strategy that culminated in the commodities brokerage’s destruction.

The trustee, Louis Freeh, said in the lawsuit that Corzine and two top deputies overhauled MF Global’s business without addressing “systemic weaknesses” in oversight and monitoring.

Freeh said the officials breached their fiduciary duties to shareholders and failed to act in good faith, wiping out more than $1 billion in value by the time of MF Global’s October 31, 2011, bankruptcy.

EU to Review Proposed Merger of ICE, NYSE

The Wall Street Journal

The European Commission will review IntercontinentalExchange Inc.’s ICE +1.37%bid to buy NYSE Euronext, enabling the exchange operators to avoid a potentially longer examination by national antitrust regulators.

Competition authorities in the U.K., Spain and Portugal agreed to allow ICE to submit the acquisition to the European Union, with discussions between the exchanges and EU regulators expected to open in the coming days.

“I can confirm that the commission is competent to review this transaction,” said Antoine Colombani, a spokesman for EU antitrust chief Joaquin Almunia.

Liffe Sues Dutch Options Market TOM Over AEX Products


NYSE Euronext (NYX)’s Liffe derivatives market sued The Order Machine, saying the Dutch alternative trading system that’s 25 percent owned by Nasdaq OMX Group Inc. (NDAQ)introduced equity-index options without a license.

TOM began offering options based on NYSE Euronext’s benchmark AEX Index (AEX) for Dutch stocks in January 2013, the companies said separate e-mailed statements today. A hearing is scheduled for June 3, Amsterdam-based TOM said.


CBOE Said to Consider Separation of Regulatory Unit From Company


CBOE Holdings Inc. (CBOE), owner of the largest U.S. options exchange, may separate its regulatory oversight unit from the company, according to a person familiar with the matter.

CBOE has talked to other exchange-company officials, said the person, who asked not to be named because the process is private. Gail Osten, a spokeswoman for the Chicago-based market operator, declined to comment. Dow Jones reported on April 22 that the company is considering whether to split off its oversight business.

The exchange company may instead decide to pass those responsibilities to the Financial Industry Regulatory Authority, Dow Jones said, citing people close to the discussions that it didn’t name. FINRA, as the authority is known, oversees broker- dealers and provides regulatory services to stock and options exchange operators.


Forbes Earnings Preview: Nasdaq OMX Group


Analysts have become increasingly bearish on Nasdaq OMX Group Nasdaq OMX Group (NDAQ) in the month leading up to the company’s first quarter earnings announcement scheduled for Wednesday, April 24, 2013. The consensus analyst estimate has …


Private Markets


Bitcoin’s Problem With Liquidity And Market-making

Huffington Post

Bitcoin exchanges are still struggling to find a trading model that offers depth and scalability. If you compare the current exchanges with the workings of the New York Stock Exchange specialist system, you immediately see the problem facing market …




Thai Bourse Announces Two Members Elected To Its Board

The Stock Exchange of Thailand (SET) announced that two members were elected to its board of governors to replace those whose terms will end on May 27, 2013, at a general meeting of member companies today.

Mrs. Pattera Dilokrungthirapop, Chief Executive Officer of DBS Vickers Securities (Thailand) Co., Ltd. and Chairperson of Association of Securities Companies, was re-elected for a second term. Meanwhile, Mr. Charnchai Kongthongluck, President of Trinity Securities Co., Ltd., was chosen to take seat of Mr. Paiboon  Nalinthrangkurn.



Other stories

AP Twitter hack: Why the Dow fell so incredibly fast – and why it’s a problem

The Telegraph

Today the Associated Press Twitter account was hacked, and reported that the White House had been bombed and President Obama had been injured. Within seconds of the tweet, the Dow Jones Industrial Average plummeted, as automated algorithms dumped stock in anticipation of a national crisis.

Of course, the crisis was false, and was exposed as false almost immediately; but at the speed algorithms trade, the Dow fell 140 points in seconds. To understand why we’ve got to the point where a single errant tweet can momentarily wipe millions off the stock market, you have to go back a long way.


Exchanges ring alarm bells over EU transaction tax


Tomoyoshi Uranishi, a senior executive at the Tokyo Stock Exchange, said the tax would be very dangerous for Europe’s market and “a very bad influence over the world economy”. “If the FTT is introduced extensively, I think most of the trading weight …


Commodities: What next after the ‘super-cycle’?

BBC News

And so another day’s trading begins in the “pit”, or floor, of the New York Mercantile Exchange, the home of the city’s energy and metal trading in downtown Manhattan. The number of traders on the floor is a far cry from what it was 10 years ago, with …




Crowdfunding In Europe: The Top 10 ‘Peer-to-Peer’ Lenders


Crowdfunders generally fall into different categories: equity, donation, reward, and debt. The last is also known as microfinancing — and commonly referred to in Europe as “peer-to-peer lending.” Here are the top 10 up-and-coming peer-to-peer lenders …


Any Chance Equity Crowdfunding Will Happen in 2013? – Crowdsourcing.org


My prediction is that she will conclude Title II of the act which was due July 4, 2012 and which allows general solicitation under Reg D, 506 but not Title III of the JOBS Act for equity crowdfunding. The latter prediction is based on the SEC DC …


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