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NFA takes emergency enforcement action New York forex dealer member, FX Direct Dealer, LLC (FXDD)
December 7, Chicago - National Futures Association (NFA) has ordered FX Direct Dealer, LLC
(FXDD) to either post a bond or place funds in an escrow account to
ensure that the firm can meet its obligations under any restitution
order that may result from a related NFA disciplinary action. The
customer restitution is estimated to be $3.3 million. NFA's Business
Conduct Committee (BCC) issued a Complaint
against FXDD earlier this year, charging that FXDD engaged in price
slippage practices that benefitted FXDD to the detriment of customers.
Similar cases involving asymmetrical price slippage practices have also
resulted in customer restitution. FXDD is a futures commission merchant,
retail foreign exchange dealer and forex dealer member of NFA, located
in New York, New York.
The Member Responsibility
Action (MRA) shall remain in effect until the resolution of the BCC
Complaint and upon a final determination of the amount of restitution,
if any, that FXDD owes to customers. FXDD may request a prompt hearing
on this matter before NFA's Hearing Committee.
House Speaker did not rule out a rise in the top income tax rate below
the level President Obama wants, indicating that he has more room to
compromise on taxes if the White House comes forward with flexibility in
other aspects of deficit negotiations.
Obama will accept unlimited donations from corporations - but no money
from lobbyists or political action committees - to finance his 2013
inaugural festivities, a spokeswoman for his inaugural committee said
better-than-expected November jobs report released Friday seems
unlikely to change the dynamics of the behind-the-scenes fiscal
negotiations between President Obama and House Speaker John A. Boehner
Week in Review: Gatorade, Michael Jordan and Insider TradingThe
S.E.C. didn't like a Netflix post on Facebook. | Peter Lattman followed
a trail of insider cases to SAC Capital Advisors. | Citigroup said it
would cut 11,000 jobs. | Warren E. Buffett sat down for an interview
with Andrew Ross Sorkin. | Five firms were charged over audits in China.
| A trader at Morgan Stanley faces an inquiry on a possible
manipulation. | UBS is reported to be near a deal on rate rigging.
does all that have to do with Gatorade and Michael Jordan? Take a look
back on our reporting of the past week's highs and lows in finance.
Mergers & Acquisitions
Freeport-McMoRan Deal Draws Investor CriticismSome
investors took umbrage at the structure of the $9 billion transactions,
which allows the mining giant to avoid a shareholder vote, Michael J.
de la Merced reported.
HSBC Sells Stake in Chinese Insurer for $9.4 BillionThe
London bank "has been shedding assets to cut costs and streamline its
business, and at the same time bolstering its balance sheet in the face
of tighter global capital requirements for banks," Neil Gough reported.
Delta, Seeking London Access, Ponders Stake in Virgin AtlanticDelta
Air Lines is trying to bolster its international operations,
particularly flights between New York and London, Jad Mouawad and Mr. de
la Merced reported.
Local Restaurateurs Feed Wall Street's Hungry Deal MakersA
stable of local restaurateurs are being periodically invited to set up
shop at financial firms like Goldman Sachs, Bank of America, Deutsche
Bank and Credit Suisse, William Alden reported.
Citigroup to Cut 11,000 Jobs and Take $1 Billion ChargeThe
bank's announcement underscores its major contraction since nearly
collapsing during the financial crisis and its continuing battle against
high operating costs and persistently sluggish markets, Jessica
For Buffett, the Long Run Still Trumps the Quick ReturnAndrew
Ross Sorkin says that Warren E. Buffett, in New York to promote a new
book about him, lamented Wall Street, which promotes a trading culture
over an investing culture.
somebody bought Berkshire Hathaway in 1965 and they held it, they made a
great investment - and their broker would have starved to death."
Diamondback Capital to Close After Investors Withdraw $520 MillionThe
firm, started by alumni of SAC Capital Advisors, was one of several
hedge funds ensnared in the government's insider-trading investigations,
Mr. de la Merced and Peter Lattman reported.
Some Funds May Hold Out for Higher Prices on Greek BondsIf
the buyback fails, the 40 billion euro-plus lifeline that the country
needs to remain solvent would be in jeopardy, Landon Thomas Jr.
Deal Professor: Hazards of Formula One Extend Beyond the RacecourseSteven
M. Davidoff says that the British private equity firm CVC Capital
Partners has been handsomely rewarded by its investment in Formula One,
which has long been identified with Bernie Ecclestone, but lawsuits are
now putting that investment in jeopardy.
the investigations gather steam, it is unclear what will happen to the
company. In large measure, Formula One is Mr. Ecclestone. It is a league
dependent on race organizers, many of whom are Mr. Ecclestone's friends
and peers. If he is not involved to orchestrate the league, there is no
clear successor to manage these relationships.
Brazil Steps Up Investments in Crucial, but Overlooked, Technology Start-UpsBecause
segments considered critical to transforming Brazil's economy have
fallen by the wayside, the country has intensified its efforts to
promote technology growth, reports Vinod Sreeharsha.
Recruiting Young Talent in China to Find the Next Big IdeaStephen
Bell of Trilogy VC tours China's top universities, seeking fledgling
entrepreneurs and wagering that lots of small bets placed strategically
can produce a few jackpots, reports Ron Gluckman.
S.E.C. Warns Netflix Over a Post on FacebookRegulators
told Netflix it was considering taking action after its C.E.O. released
information about the company's performance on Facebook, Mr. de la
Trail to a Hedge Fund, From a Cluster of CasesFederal
investigators have charged many former employees of SAC Capital
Advisors, the hedge fund owned by Steven A. Cohen, with trading on
insider information, Mr. Lattman reported.
of this stuff is material to his returns and it's all just a lot of
noise," said Ed Butowsky, managing partner of Chapwood Investments, a
longtime SAC client. "Steve Cohen is the Michael Jordan of the hedge
fund business. When people are successful everyone likes to take shots
Trading Insider to Remain Free on BailRajat
K. Gupta, a former Goldman Sachs director, will not have to report to
prison until his appeal is heard, which could take a year, Mr. Lattman
S.E.C. Charges 5 Firms Over Audits in ChinaThe
agency claimed the firms failed to produce documents from their audits
of several China-based companies under investigation for fraud, Edward
UBS Is Reported to Be Near a Deal on Rate RiggingThe
Swiss banking giant is expected to pay more than $450 million to settle
claims that some employees reported false rates to increase the bank's
profit, Ben Protess and Mark Scott reported.
Morgan Stanley Trader Faces Inquiry on Possible ManipulationGlenn
Hadden, one of the most powerful traders in the Treasury market, is
under investigation over whether he tried to manipulate futures prices,
Susanne Craig reported.
and former colleagues said Mr. Hadden, who has been known to drink
copious amounts of Gatorade at work, was almost "machinelike" when he
traded. "He gets this look in his eye," one former colleague said. "It
Goldman to Pay $1.5 Million for Failing to Supervise TraderGoldman
Sachs has settled C.F.T.C. accusations that it failed to supervise a
trader who has been accused of entering fabricated trades that concealed
a $8.3 billion trading position.
Blankfein's Bullish Bet on Hamptons Real EstateLloyd
Blankfein, the chief executive of Goldman Sachs, was identified as the
buyer of a seven-bedroom estate in Bridgehampton, New York, according to
reports in The New York Post and Bloomberg News.
Another View: How to Remove an 'Unfit' DirectorMichael
Peregrine says that as the actions of corporate boards become more
scrutinized, the boards themselves should consider adopting a "fitness
to serve" protocol to easily remove board members facing allegations of
professional or personal misconduct.
Glencore's Deal for Viterra Clears Final Regulatory HurdleChinese
authorities approved the $6.2 billion purchase of Viterra, Canada's
largest grain handler, by a consortium led by Glencore International.
Private Equity Firm to Buy Stake in Aston MartinThe
private equity fund Investindustrial of Italy has agreed to buy a 37.5
percent stake in the iconic British car manufacturer, Aston Martin, for
Insider Trading Persists, and Gets StealthierThe
tactics and technologies available to inside traders today are more
sophisticated and more difficult both to detect and to prove, writes
James B. Stewart, the Common Sense columnist for The New York Times.
SAN FRANCISCO (MarketWatch) — U.S. stocks closed higher Friday after
gains from a better-than-expected November jobs report shook off a drop
in December consumer sentiment.
The Dow Jones Industrial Average DJIA+0.62%
closed up 81.09 points, or 0.6%, to 13,155.13, near session highs, with
24 out of 30 components gaining, led by J.P. Morgan Chase & Co.
and Bank of America Corp. BAC+1.72%
. For the week, the Dow industrials climbed 1% for their third consecutive week of gains.
The S&P 500 Index SPX+0.29%
advanced 4.13 points, or 0.3%, to close at 1,418.07, after dipping into
negative territory following the consumer-sentiment index. For the
week, the index advanced 0.1% for its third week of gains.
The U.S. added 146,000 jobs in November, and the unemployment rate fell to 7.7%.
Losses for Apple Inc. AAPL-0.33%
, however, weighed on the tech-heavy Nasdaq Composite Index COMP-0.38%
, which closed down 11.23 points, or 0.4%, to 2,978.04, a loss of 1.1%
for the week. In contrast, Apple shares finished down 2.6% for the day
and 8.9% for the week.
Before the stock market opened, the Labor Department reported that
nonfarm payrolls rose by 146,000 jobs last month, and the unemployment
rate fell to 7.7% from 7.9%. The data topped forecasts as economists had
projected an increase of 80,000 jobs and an unchanged unemployment
Read: U.S. creates 146,000 jobs in November.
That initially boosted stocks into positive territory across the board,
but gains were pared following the release of the University of
Michigan-Thomson Reuters preliminary consumer-sentiment index for
December that showed a decline to 74.5 from 82.7 in November.
Read more on consumer sentiment.
Week ahead: Awaiting the Fed
The Federal Reserve will make a monetary-policy announcement next week. Plus, retail sales figures and consumer price data are released.
nvestors also monitored developments in Washington.
House Speaker John Boehner said Friday there has been no progress in
negotiations with the White House to avoid the fiscal cliff, or hundreds
of billions of dollars of automatic tax hikes and spending cuts due to
take effect in the new year.
Investors likely expected no progress at this point, otherwise markets
would be down much more on the apparent stalemate, said Mark Luschini,
chief investment strategist at Janney Montgomery Scott.
“They see it as more political posturing,” Luschini said. “The hope trade is alive and well.”
As for consumer sentiment, Luschini said continuous media coverage of
the fiscal cliff is starting to weigh on consumers’ psyches, and people
are beginning to worry how next year is going to impact their wallet.
The consumer-sentiment number “added a little bit of a negative tone,”
said Brad Sorensen, director of market and sector research at Charles
Schwab. “The jobs numbers weren’t quite as good as maybe initially
thought.” As for the fiscal-cliff negotiations, Sorensen said it’s still
“up in the air” whether political leaders can get a deal done.
Advancing stocks outnumbered decliners slightly on the New York Stock
Exchange, where more than 606 million shares traded hands and composite
volume topped 3.1 billion shares by the close.
The U.S. dollar index DXY+0.21%
, which tracks the performance of the greenback against a basket of
other major currencies, rose to 80.433 from 80.250 in North American
trade late Thursday. In the Treasury market, yields on 10-year notes
rose nearly 4 basis points to 1.63%.
In Europe, markets closed higher following the U.S. jobs data, erasing
losses that came after Germany’s Bundesbank sharply cut its forecast for
Read more on European stocks.
Wallace Witkowski is a MarketWatch news editor in San Francisco.
Follow him on Twitter @wmwitkowski.Polya Lesova is MarketWatch's New York deputy bureau chief. Follow her on Twitter @PolyaLesova.
While you’re doing your holiday shopping this year, scammers are banking
on vulnerable consumers to do some “shopping” of their own. Learn about
the eight scams they’ll use this year to separate you from your cash in
a Consumer Confidential column by Jennifer Waters today.
Also in today’s Personal Finance pages, learn how to eliminate shoppers’
remorse this holiday season and discover why sometimes you can blame
the building when your condo loan is denied.
Investors for several years have been pulling money out of stock mutual
funds and piling into bond funds — but not all stock funds. These five
solid stock performers have grabbed the spotlight from bonds.
5 top stock funds raking in your money.
Don’t let fear paralyze your stock portfolio
Based on the most recent market indicators, you have reason to feel good
about the stock market. If you don’t believe the indicators, rather
than being scared, be prepared. Michael Sincere offers five strategies
to protect your portfolio.
Don’t let fear paralyze your stock portfolio.