Wednesday 27th May 2015
NEWS TICKER: WEDNESDAY, MAY 27TH: The S&P Capital IQ division of McGraw Hill Financial (NYSE:MHFI) whose CUSIP Global Services (CGS) unit produces identifying instruments and entities that support efficient global capital markets, says Scott Preiss, currently CGS’s Vice President and Chief Operating Officer, has been promoted to the role of Global Head & Managing Director, replacing Jim Taylor, who is retiring, on July 1st, after 28 years of service - Orezone Gold Corporation (ORE-TSX) says a mining permit application has been submitted to the government of Burkina Faso for the construction and operation of its wholly owned Bomboré gold project. The application is based upon the recently announced positive Feasibility Study (April 28, 2015) and includes an environmental and social impact assessment and a relocation action plan (RAP) for the local people affected by the project. The four to eight month permitting process includes public hearings and a complete review by the Ministry of Mines and Energy1 (MEE) and the Ministry of Environment and Durable Development2 (MEDD) and the National Mining Commission3 (NMC), a technical panel. During a weekly cabinet session in parliament the recommendations of the NMC are reviewed and once approved, the permit is a Decree signed by the President of Burkina Faso, the Minister of Economy and Finances, the Minister of MEE and the Minister of MEDD - BNP Paribas Securities Services says its BNP Paribas Dealing Services subsidiary has been selected to manage the dealing activities of RPMI Railpen, the investment manager for the Railways Pension Scheme (RPS). RPS is the sixth largest pension scheme in the UK. Following its decision to bring some of its investment activities in house, RPMI Railpen says it was looking for a dealing desk solution to optimise the execution of its market transactions. RPMI Railpen manages the assets of the RPS on behalf of its parent company, the Railways Pension Trustee Company Limited. Railpen Investments, its investment arm, is an FCA authorised investment manager with assets under management exceeding £21bn - LIM Advisors Ltd, a Hong Kong based fund manager, has signed a milestone agreement to utilise SimCorp Dimension for a full front, middle and back office platform. The $2bn fund manager will leverage SimCorp Dimension to establish full operational capability across multiple asset classes, including equity, bonds, convertibles, listed futures & options and derivatives - Botswana-based grocery retailer, Choppies Enterprises Limited (Choppies) debuted on the Main Board of the Johannesburg Stock Exchange (JSE) in the Food Retailers and Wholesalers sector and is the sixth listing on the exchange this year. The firm raised SAR575m in a secondary listing. Choppies boasts a wide FMCG portfolio, including its own private label products and leading international food brands. As a fast growing retailer on the continent, Choppies’ secondary listing on the JSE is intended to assist the company with access to capital needed to support its organic and acquisitive growth as well as establish its presence and public profile in strategic markets in Southern and East African markets. The group is currently the top supermarket chain in Botswana, holding significant market share of the overall national food retail market. Choppies currently operates 125 retail outlets in Southern Africa, comprising 72 stores in Botswana, 35 stores in South Africa and 18 stores in Zimbabwe. Through the listing, Choppies intends to increase its footprint in South Africa, Zimbabwe, Kenya, Namibia, Tanzania and Zambia – Small World FS, the international payment services provider says it has processed £10bn in transactions since launching in 2006. The London-headquartered financial technology business now operates the third largest payout network in the world, with a global payout network of over 250,000 locations in 188 countries. This news comes after months of rapid expansion, including the extension of its digital services into 14 sending markets, as well as inking deals with the MTN Group, Africa’s largest mobile operator, and Nations Trust Bank, Sri Lanka’s fastest growing bank - Ullink, a global provider of market leading electronic trading and connectivity solutions, today announced that Kotak Institutional Equities (KIE), one of India's leading institutional brokers and a division of Kotak Securities has chosen Ullink’s UL Bridge connectivity solution. KIE has chosen UL Bridge to facilitate FIX messaging, message enrichment and order routing, to enhance its existing connectivity infrastructure. UL Bridge’s uniquely modular architecture works in conjunction with KIE’s Order Management System (OMS), allowing KIE to provide better execution services to more clients, both locally and globally - The Straits Times Index (STI) ended 35.04 points or 1.01% lower to 3424.94, taking the year-to-date performance to +1.78%. The top active stocks today were DBS, which declined 1.54%, Singtel, which declined 1.89%, OCBC Bank, which declined 0.67%, UOB, which declined 1.62% and Ascendas-hTrust, with a 1.43% advance. The FTSE ST Mid Cap Index declined 0.35%, while the FTSE ST Small Cap Index declined 0.06%. The outperforming sectors today were represented by the FTSE ST Health Care Index, which rose 0.26%. The two biggest stocks of the Index - Raffles Medical Group and Tianjin Zhongxin Pharmaceutical Group Corporation- ended 0.46% lower and 3.48% higher respectively. The underperforming sector was the FTSE ST Telecommunications Index, which slipped 1.81%. Singtel shares declined 1.89% and StarHub declined 0.50%.

Blog

Regulatory Update

Traders Beware, Focus Could Shift Quickly in Your Direction

Monday, 16 July 2012 Written by 
Traders Beware, Focus Could Shift Quickly in Your Direction Some unsettling stories continue to unfold. One is Peregrine Financial Group, which managed to combine some of the most memorable red flags of the Madoff and MF Global scandals without attracting a regulatory response from the CFTC. (PFG represented that it held more than $220 million of customer funds when in reality it held approximately $5.1 million.) http://www.ftseglobalmarkets.com/

Some unsettling stories continue to unfold.

One is Peregrine Financial Group, which managed to combine some of the most memorable red flags of the Madoff and MF Global scandals without attracting a regulatory response from the CFTC. (PFG represented that it held more than $220 million of customer funds when in reality it held approximately $5.1 million.)

The second involved information stemming from the Barclay’s Libor scandal—in particular, exactly how much was known, when, and by what regulators.  The NY Fed, confirming that it received reports about Libor issues in 2007 and 2008, on Friday released documents showing it took “prompt action four years ago to highlight problems.”  The actions of Treasury Secretary Timothy Geithner, who headed the New York Fed from 2003 until 2009, may be heavily scrutinized.  So will those of the U.K. authorities.

And then there is the recent announcement by JPMorgan of possible valuation discrepancies by its traders. According to JPMorgan’s chief financial officer, a restatement may be necessary based upon facts uncovered “regarding the CIO traders’ intent as they were marking the book. And as a result, we questioned the integrity of those trader marks.”



What impact will this have on the regulatory climate?  Clearly, the regulators will be under tremendous pressure.  Richard Shelby, the top Republican on the U.S. Senate Banking Committee, noted Peregrine “raises serious questions about our current regulators and whether they are capable of doing their jobs.”  Others are also voicing concerns.  In turn, the regulators are likely to respond by increasing their oversight.

And as they do so, traders in particular may be in the line of fire.  Reflecting on LIBOR, Warren Buffett is quoted as saying, “the idea that a bunch of traders can start e-mailing each other . . . and play around with . . . [the Libor] rate . . . is not good for the system.”  This is the type of concern that prompted the CFTC this past April to pass rules for swap participants, which basically wall off traders from the rest of the firm.  Traders cannot supervise or influence the compensation of research analysts or clearing unit employees.  In some cases, communications with traders are prohibited unless the communication is made through the firm’s compliance department.  Both the Libor scandal and the J.P. Morgan trading loss, coupled perhaps with a few new situations brewing in the background, might give this type of thinking a major boost.

Deborah Prutzman

Deborah Prutzman is the founder and CEO of The Regulatory Fundamentals Group (RFG), a New York-based firm that designs and implements business and risk solutions for alternative asset managers and institutional investors. RFG's senior-led team employs a robust suite of tools, including practical alerts on new and potential industry developments and its powerful RFG Pathfinder® knowledge management platform which simplifies the challenges of operating in a regulated environment.  To learn more about The Regulatory Fundamentals Group call (212) 537-4058, email a representative at Information@RegFG.com or visit RegFG.com

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