May 17 2013

elb2 A slightly lower tempo to end the week. Andreas Preuss has his contract renewed by Deutsche Borse and must therefore be in pole position to succeed Reto Francioni. Andreas’ skills will be vital in the battle for Eurozone dominance (presuming the Euro survives) throughout the yield curve. Elsewhere, a legal shuffling at Schwab and a massive crowdfunding to use new technology to buy newsprint titles…

Thank you for the great feedback this week, have a great weekend and first here are today’s stories:

Public Markets

Nasdaq halts trading in some options contracts due system issues

Reuters

Nasdaq OMX Group Inc on Thursday halted trading in some options contracts on one of its options exchanges on Thursday due to system issues.
The system issues, which started at 9:48 a.m. ET (1348 GMT) on the Nasdaq PHLX options exchange, affected options on equity underlying symbols beginning with the letter Z – approximately 21 options, includingZynga Inc, the exchange said.

U.S. Regulators Target Exchanges

4-traders

Financial regulators are taking a harder line on exchanges amid concerns over their ability to police the markets they operate, as the SEC prepares to hit one with a record penalty.

The deeper scrutiny has prompted some exchange officials to push back against a new regulatory stance that they say leaves them more vulnerable to potential penalties and sanctions.

The tussle goes to the heart of the unusual dual role played by the biggest U.S. exchanges. They profit from the trading business they attract and the vast volumes of data generated by that trading. They also act as regulators of the same trading.

Private Markets

Schwab reverses ban on client class-action lawsuits

Reuters

Charles Schwab Corp has temporarily reversed its requirement that clients waive their right to bring class-action lawsuits, adding a new twist in a battle closely watched by the securities industry and plaintiffs’ attorneys.
“Effective immediately, Schwab is modifying its account agreements to eliminate the existing class-action lawsuit waiver for disputes related to events occurring on or after May 15, 2013 and for the foreseeable future,” the San Francisco-based brokerage company said in a statement that was posted on its website on Wednesday.

Shareholders Approve Pay at Schwab (subscription required)

Wall Street Journal

Charles Schwab Corp. shareholders approved last year’s compensation for top executives of the discount brokerage.
At the San Francisco company’s annual meeting, Schwab said Thursday that, based on a preliminary tally, more than 91% of stockholders backed the executive-pay proposal, known as a say-on-pay vote. Though the measure isn’t binding, a rejection is considered a harsh rebuke by a company’s own investors.
For 2012, Schwab said it awarded Chief Executive Walt Bettinger $10.2 million in compensation.

Appointments

Supervisory Board Of Deutsche Börse AG Extends Mandate With Executive Board Member Andreas Preuss

In yesterday’s meeting, the Supervisory Board of Deutsche Börse AG re-appointed Andreas Preuss, the company’s Deputy CEO and CEO of Eurex, as member of the Executive Board by further three years with effect from 1 April 2014.

Crowdfunding

Campaign to Buy Los Angeles Times Hopes to Crowdfund $660 Million

Bloomberg

Want to buy the Los Angeles Times, Chicago Tribune, Baltimore Sun and six other daily newspapers? No, I don’t mean at the newsstand. The Other 98%, a nonprofit organization, has setup a crowdfunding campaign to buy Tribune Co.’s newspaper business.

Experts warn crowdfunding campaigns may be frauds

San Francisco Chronicle

Crowdfunding has become a popular way for anyone to invest in a business startup over the Internet, but experts say the trend is not without its perils.
The North American Securities Administration Association says anyone considering investing in a crowdfunding campaign should be cautious.

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