1.5.2007 - Primergy plans to raise USD500 million for hedge fund
Primergy Capital Partners LLP, a London-based hedge fund firm set up by three former employees of Foundation Energy Ltd, plan to raise as much as USD500 million over the next five years for an energy fund. Primergy, which started trading today, handles UK and European natural gas, power, emissions and coal contracts, Drew Hunt, chief executive officer and co-founder, said by telephone from London today. Primergy has received money from a US-based fund that invests in other funds, he said, declining to say how much. The fund plans to trade physical energy contracts later this year, he said.

1.5.2007 - NYMEX to launch three new gasoline and diesel futures contracts
The New York Mercantile Exchange, Inc will launch three new gasoline futures contracts that will begin trading on the NYMEX trading floor and the CME Globex electronic trading platform on 13 May for trade date 14 May.

1.5.2007 - Merrill, Credit Agricole bring credit derivatives to FX
Merrill Lynch and Credit Agricole Asset Management will bring the complex technology behind credit derivatives to the foreign exchange market, further stretching these products from their original debt-focused form.

1.5.2007 - Eurex and ISE to create largest transatlantic derivatives marketplace
Eurex and International Securities Exchange (ISE) have signed a definitive agreement under which Eurex will acquire ISE for approximately USD 2.8 billion in cash, or USD 67.50 per share. The combination will be implemented by way of a merger and is subject to shareholder and SEC approval.

2.5.2007 - CME expands foreign exchange team
The Chicago Mercantile Exchange added two people to its foreign exchange team as it continues to broaden its FX product portfolio. Craig LeVeille was named director of FX products, while Michael Hohman was made associate director. They will develop CME's FX product profile by increasing trading volume and distribution of FX futures and options on CME Globex. They will also put together new products and services to enhance CME's over the counter FX market.

2.5.2007 - Palm oil bull run likely to continue
Crude palm oil's bull run is likely to continue for at least another decade, with forward prices rising to $1,000 a tonne, more than 50 per cent higher than at present, analysts predicted at an international vegetable oil conference.

2.5.2007 - Swiss-based 3A plans commodity fund of hedge funds
Swiss-based investment firm 3A Alternative Asset Advisors said on Wednesday it is planning to launch a fund of hedge funds that will focus on natural resources such as energy, metals, agriculture and electricity. The Alternative Capital Enhancement Natural Resources Fund will be a Luxembourg-based SICAV -- open ended -- fund of hedge funds, which will invest in a variety of hedge fund strategies to diversify portfolio risks.

2.5.2007 - Fortis warns cocoa prices may rise 50%
Cocoa prices could rise more than 50 per cent from London price of L984 a tonne to reach L1,500 before the end of October, says Fortis, the investment bank.

2.5.2007 - Watch for Weather in the Corn Market and Geopolitical Issues in Gold
We have seen both the corn and gold markets fall recently on bearish influences, but there are some bullish factors to consider that eventually may boost prices. While CBOT corn futures dropped on expectations of favorable planting weather, concerns about delayed plantings and high demand for corn are likely to provide a lift to prices. Meanwhile, indications of a slower U.S. economy have resulted in declines in COMEX gold futures, though concerns about terrorist activity remain as bullish factors to consider. For both these markets, I favor buying when prices drop.

3.5.2007 - National Bank of Canada and BNP Paribas join forces to offer hedge fund managed accounts
National Bank of Canada and BNP Paribas have formed a joint venture offering hedge fund managed accounts for retail and institutional investors who wish to invest in hedge funds while controlling operational and market risks.

3.5.2007 - Comment: How to service managed account platforms
Arnaud Hurtard, Business Development Manager at CACEIS, outlines the ways in which managed account platforms are serviced.

4.5.2006 - Nickel and lead hit new highs as metals shine
Base metals enjoyed strong gains this week in spite of the absence of Asian buyers due to holidays, with copper surging through key resistance levels and nickel and lead reaching new records.

4.5.2007 - Greenback lifts from record lows
The dollar pulled away from a record low against the euro this week as robust US economic data gave investors little fresh impetus to sell the currency.

4.5.2007 - London ETF accumulates 6,051 ounces of platinum
ETF Securities Ltd said on Thursday its exchange-traded fund based on physical platinum has attracted investment equal to 6,051 ounces of the metal since its launch on April 24. Nik Bienkowski, head of listings and research at the London-based company, told Reuters that total investment in its five physically-backed exchange traded funds (ETFs) based on precious metals totalled about USD28 million. The platinum fund accounts for about USD8 million of investment so far, while the rest saw inflows worth USD5 million each, he said.

7.5.2007 - Spot gold firm, Tokyo precious metals surge
Tokyo gold futures rose more than 2 percent to a two-month high and platinum futures hit a record high on Monday as strength in cash gold, which held near a two-week high due to dollar weakness, encouraged active buying. Precious metals drew broad demand from investment funds as the dollar weakened against the euro after Friday's soft US payrolls report reinforced expectations that the US Federal Reserve could lower interest rates later this year. Traders said platinum will be supported after launches of platinum ETFs and ahead of the release of Johnson Matthey's platinum review on May 14.

8.5.2007 - CME to offer futures and options on Lehman Brothers' US Aggregate Index
The Chicago Mercantile Exchange (CME) and Lehman Brothers, the global investment bank and provider of fixed income benchmarks, have entered into an exclusive licensing agreement to create futures products based on the Lehman Brothers US Aggregate Index.

Video news
8.5.2007 - Bennett of FxMax Says Fund Managers `Keen to Buy' Euro on Dips
Clifford Bennett, chief currency strategist at FxMax, talks with Bloomberg's Catherine Yang from Sydney about the outlook for the U.S. dollar, euro, yen, Federal Reserve and European Central Bank monetary policies, and Bennett's currency trading strategy.

9.5.2007 - LTCM founder launching new hedge fund
Eric Rosenfeld, a co-founder of collapsed hedge fund Long-Term Capital Management, is actively recruiting investment talent for a new quantitative investment fund, a person familiar with the situation said on Wednesday. The fund, called Quantitative Alternatives LLC, will employ computer-driven trading strategies, a strategy that is similar to hedge funds including Renaissance Technologies Corp, AQR Capital Management and others, this person said. It is unclear how much money the firm has raised so far. It is also actively pursuing partnerships with banks, pension funds and other financial institutions to bolster its strategies, the source said.

9.5.2007 - iShares announces three new currency ETFs
The iShares family of exchange-traded funds has announced that it will be introducing three new Exchange Traded Notes for the currency market. The trio are expected to begin trading on the New York Stock Exchange on or around May 9th. To date, Rydex is the family of ETFs most associated with foreign currency ETFs. The ETNs to be available later this week are the: iPathSM JPY/USD Exchange Rate ETN (JYN); iPathSM GBP/USD Exchange Rate ETN (CDNX: GBB.V); and iPathSM EUR/USD Exchange Rate ETN (ERO).

9.5.2007 - ETF Securities launches precious metal basket on DB
ETF Securities extended its distribution of exchange traded commodities in Europe with the launch of a platinum, palladium, silver, gold and a precious metal basket on Deutsche Börse.

9.5.2007 - Thomson TradeWeb launches derivative product
Thomson TradeWeb launched a major product as its position in the online marketplace for fixed income and derivative products comes under threat from investment banks setting up their own platforms.

10.5.2007 - What currency is Warren Buffett buying?
Warren Buffett, perhaps the world's most influential investor, sent the foreign exchange markets scrambling this week after revealing that he had made a "surprising" new bet on the currency markets.

10.5.2006 - FX market decades away from centralisation
The foreign exchange market continues to be split between multiple trading platforms rather than moving toward a centralized single electronic platform or an exchange model, according to a new report. Sang Lee, research director and co-founder of consultancy Aite Group, said that while the growth of electronic crossing networks such as Hotspot might have provided the FX market with a glimpse of the future, a centralized single platform seems to be years or even decades away. This is because the dealing banks which still comprise the lion's share of the FX market appear loathe to relinquish control, Lee said in a report on electronic FX platforms.

Video news
10.5.2007 - Pontikis of Suncorp-Metway Sees `Pullback' in Yen Carry Trades
Peter Pontikis, treasury strategist at Suncorp-Metway Ltd., talks with Bloomberg's Catherine Yang from Perth, Australia, about the outlook for the dollar, euro, yen, and Australian and New Zealand currencies, and prospects for a "pullback" in so-called carry trades.

10.5.2007 - New product: Futures on an emerging markets benchmark index
Eurex has begun launching products on emerging markets, starting with derivatives on Russian underlying. With futures contracts on the newly introduced RDXxt USD - RDX Extended index, Eurex offers easy access to the Russian stock market.

11.5.2007 - Dollar rises on safe haven buying
The dollar rose this week as the Federal Reserve showed little sign it was contemplating a near-term cut in interest rates. Jitters on the world's stock markets added to dollar's momentum as investors channelled funds to the safe haven of the US.

11.5.2007 - Oil rises over fears to supply
Oil prices extended their gains after a warning that petroleum inventories in the developed world would fall sharply unless the Organisation of the Petroleum Exporting Countries increased output.

11.5.2007 - CME increases offer for CBOT
Lehman Brothers is funding an increased offer from US futures market Chicago Mercantile Exchange as it tries to fend of a hostile bid for the Chicago Board of Trade. CME and CBOT had agreed to merge in an USD8bn (EUR5.9bn) deal in October. In March, Atlanta-based electronic commodities market the IntercontinentalExchange made a surprise USD9.9bn bid but subsequent share price movements have increased the value of its offer to USD2.2bn more than the CBOT's.

14.5.2007 - JADE prepares for launch of crude palm oil futures contract
The Joint Asian Derivatives Exchange (JADE) plans to launch its Crude Palm Oil (CPO) futures contract on 6 June 2007.

15.5.2007 - Catch a new wave in water ETFs
I wrote about the first water ETF, the PowerShares Water Portfolio (PHO - Cramer's Take - Stockpickr) a year and a half ago when it first listed. I bought the fund a couple of days later for myself and for clients, and still own it. But there's a new water ETF on the block, and it already looks mighty tempting for both its broader field and narrower focus. The Claymore S&P Global Water Index ETF (CGW), which mimics the S&P Global Water Index rather than the Palisades Water Index that underlies PHO, has more of a global focus, with 72% of the fund invested in foreign stocks, as opposed to PHO's 15%. In fact, CGW invests in equities hailing from 14 different countries.

15.5.2007 - Trinh of RBC Says Sentiment Remains `Very Bearish' on Dollar   Video news
Sue Trinh, a senior currency strategist at RBC Capital Markets, talks with Bloomberg's Catherine Yang from Sydney about the outlook for the U.S. economy and Federal Reserve monetary policy, and forecasts for the U.S. dollar, yen, euro, Australian dollar and so-called carry trades.

16.5.2007 - Gorey, Strategist, Sees U.S. Gasoline Supply in `Catch-Up Mode'   Video news
Tobin Gorey, commodity strategist at Commonwealth Bank of Australia Ltd., talks with Bloomberg's Catherine Yang from Sydney about gasoline and oil prices and supply, and outlook for corn, soybeans and palm oil.

16.5.2007 - India opens door to credit derivatives
India's central bank released long-awaited draft guidelines for banks and dealers to begin trading credit default swaps in the country – derivatives that allow banks to hedge against the risk of default.

16.5.2007 - 'Carbon trading' enriches the world's energy desks
The global carbon-trading market is doubling in size every year, putting it on course to become one of the biggest earners for energy desks and raising the question of whether emissions trading is environmentally effective or just another revenue stream for investment banks. More than USD40 billion of carbon-dioxide permits will be traded this year -- small fry compared to oil or other energy markets. But almost everyone agrees it won't stay that way for long. "Conservatively, we think it's going to be worth USD3 trillion," said Peter Fusaro, chairman of Global Change Associates, an energy consulting group. To put that into perspective, USD3 trillion is roughly the size of the combined markets for oil, natural gas, electricity and coal today, Fusaro says.

16.5.2007 - Commodity hedge fund assets may rise to USD35billion
Investments in commodity hedge funds may rise to about USD35 billion by the end of the year as more traders set up funds to take advantage of wide swings in prices for energy, metals and agriculture, according to Cole Asset Management. About USD30 billion is currently invested in the funds, which specialize in trading commodity derivatives and shares of energy, mining and agricultural companies, said Brad Cole, founder of Chicago-based Cole Asset Management, which invests in such funds.

18.5.2007 - FX Radio: US Dollar Faces Durable Goods Next Week, Canadian Dollar Hits 30-Year High  Audio news
China widens yuan trading band ahead of key meetings next week. US Dollar faces potentially dismal durable goods next week. Canadian retail sales send USDCAD to 30-year lows.

18.5.2006 - Brent crude eases back from eight-month peak
Brent crude futures fell back under $70 a barrel, down from an eight-month high reached on Thursday.

20.5.2007 - Morriss of ANZ Says Asian Currencies Will Remain `Very Strong'   Video news
Tony Morriss, senior currency strategist at Australia & New Zealand Banking Group Ltd., talks with Bloomberg's Catherine Yang from Sydney about the People's Bank of China's decision to allow the yuan to strengthen, the outlook for Asian currencies and carry trades, and U.S. inflation. Carry trades are a strategy in which investors borrow a low-yielding currency such as the yen to buy higher-yielding assets elsewhere.

21.5.2007 - Derivative growth slows
Growth in the over-the-counter derivatives market slowed in the second half of 2006, as fast expansion in credit products was offset by slowing elsewhere, the Bank for International Settlements said on Monday. Notional amounts of all types of OTC contracts rose by 12 percent to USD415 trillion (GBP210 trillion) at the end of December, after a 24 per cent increase in the first half of the year. In the credit segment, notional amounts of outstanding credit default swaps (CDSs) increased by 42 per cent to USD28.84 trillion. Credit derivative growth was marked by a 54 per cent gain in multi-name products such as collateralised debt obligations, which are baskets of default swaps sliced to give investors varying levels of exposure to risk. Growth in single-name contracts was 36 percent.

22.5.2007 - Canada's dollar reaches 30-year high
The Canadian dollar climbed to a 30-year high, propelled by strong commodity prices and forecasts that the Bank of Canada might need to hold up interest rates to contain accelerating inflation.

22.5.2007 - Renaissance hedge fund: Only scientists need apply
Wall Street traders and analysts take note: don't bother applying to work at Renaissance Technologies Corp, the USD30 billion hedge fund manager whose assets could reach USD100 billion in coming years. The top-performing firm only hires scientists to develop its trading strategies, all of which are executed entirely by computers, its founder and president Jim Simons told an industry audience in New York this week. "We hire physicists, mathematicians, astronomers and computer scientists and they typically know nothing about finance," Simons said in a keynote address at the International Association of Financial Engineers annual conference. "We haven't hired out of Wall Street at all."

22.5.2007 - Returns to suffer as hedge funds lose appetitie for risk?
Hedge funds have developed a reputation as the highest of high rollers. Huge risk and huge returns have gone hand in hand. Pioneer George Soros makes USD1 billion for his Quantum Fund in a single day by making a massive bet against the British pound. Long-Term Capital and Amaranth Advisors collapse when highly leveraged bets go bad, leading to billions in losses. Members of Congress are even fretting that they need to tighten up oversight of the funds, for fear of smaller investors losing their shirts. Now, however, finance experts are raising a very different kind of concern. They worry that hedge funds, as they grow and mature, are becoming too institutional, too bureaucratic, and too risk-averse. The fear is that the returns at many hedge funds are going to go from astronomical to average.

22.5.2007 - UTI MF expects gradual gold fund demand
Gold-traded mutual funds, though slow in taking-off, are expected to pick up in the next two-three years as the yellow metal has proved to be the only safe investment, offering a nine per cent return consistently in the long-term. "Though the initial response to our gold traded exchange fund has been disappointing, we expect it to pick up in the coming months and years," UTI MF's CMD U K Sinha told PTI here. Globally, the response to gold traded funds has been lukewarm in the initial two years but then it perks up substantially, sometimes exponentially, Sinha said.

22.5.2007 - JP Morgan says "crazy" to ignore commodities plays
Investors who think it is too late to get into commodities-related stock because the market has risen so much are "crazy" as prices will only go higher due to tight supply and growing demand, JPMorgan Asset Management said. Ian Henderson, fund manager of the UK-registered JPMorgan Natural Resources Fund, told Reuters in an interview that China's latest move to rein in its booming economy would dampen speculative activity but metal inventories remained low. The fund, which invests mostly in stock and is GBP1.18 billion in size, has handed investors more than 22 percent in returns this year as of the end of April.

23.5.2007 - McGuire of Commodity Warrants Says Oil Prices May Reach $70   Video news
Peter McGuire, managing director of commodity Warrants Australia, talks with Bloomberg's Bernard Lo in Hong Kong about factors driving the oil market, U.S. refining capacity and gasoline prices.

23.5.2007 - Single ETF captures 13% of world silver output
A single exchange-traded fund captured more than 13 per cent of the world's silver output last year, according to data from GFMS, a precious metals consultancy.

24.5.2007 - Aluminium consolidation heats up  Video news
The global aluminium industry gears up for another round of consolidation as Canada's Alcan repels a hostile bid from US rival Alcoa.

24.5.2006 - CME launches Asian derivatives push
The Chicago Mercantile Exchange, the US derivatives exchange that is trying to merge with local rival Chicago Board of Trade, is looking to capitalise on rising demand for exposure to Asian financial instruments by developing a new suite of products targeted at the region. Derek Samman, CME managing director of foreign exchange products, told The Wall Street Journal, part of the Dow Jones group that owns Financial News, that the exchange plans to update its product catalogue to cater for the influx of hedge funds and private equity firms from the US and Europe into Asia. Samman was part of a CME delegation in China to promote futures products and the US exchange in the region.

24.5.2007 - Derivatives hit USD415 trillion
Outstanding over-the-counter derivatives transactions hit a record notional amount of USD415 trillion (EUR308 trillion) at the end of last year despite slower growth rates across all market segments, according to the Bank for International Settlements' semi-annual survey. The notional amounts of all types of OTC contracts, which are traded privately by parties away from exchanges, rose by 12% in the second half of last year, after a 24% gain in the first six months. A spokesman for BIS said the growth rate had fallen back in line with its long-term average, as measured back to 1998 when it started collecting data.

25.5.2007 - Gheit, Analyst, Says Refinery Problems Driving Gasoline Prices   Video news
Fadel Gheit, oil and gas research analyst at Oppenheimer & Co., talks with Bloomberg's Brian Sullivan from New York about the impact of U.S. refining capacity on gasoline prices and the price spread between Brent and West Texas Intermediate crude oil futures. The national average price for regular gasoline in the U.S. climbed 39 percent this year to more than $3.20 a gallon as refinery maintenance, breakdowns and accidents cut production.

25.5.2007 - Gold futures close higher for the day, down 1% for the week
Gold futures closed higher Friday as news reports that North Korea has test-fired several missiles boosted the metal's appeal as a safe-haven investment, but prices still closed out the week 1% lower after tumbling more than $9 an ounce in the previous session.

25.5.2007 - Crude futures rally for the day, but end up with a weekly loss
Crude-oil futures closed higher Friday to recoup most of their prior-session losses as concerns over supply disruptions in Nigeria and the official start of the summer-driving season this weekend served to boost energy prices, but prices still ended the week with a loss of more than 1%.

28.5.2007 - Tokyo commodity exchange plots comeback
Japan's biggest commodity exchange hopes to regain its lead over its London rival by transforming its operations to appeal to hedge funds and other big international traders.

29.5.2007 - Bullish on bullion?   Video news
Gold prices have been on a tear over the past five years and that has given investors in the prescious metal something to cheer. The price of an ounce of gold has skyrocketed from an average of $310 in 2002 to about $657 dollars this year. And it's not expected to decline anytime soon.

29.5.2007 - USFEB to offer futures contracts on Morningstar stock indices
US Futures Exchange (USFE) has announced an agreement with Morningstar, Inc. the provider of independent investment research, to offer futures contracts on Morningstar's 15 style- and capitalization-based indexes as well as its broad US market index.

31.5.2007 - A revolution in trading   Video news
The financial markets are being transformed by computer programs that may make traders obsolete. Billion dollar incomes on Wall Street are becoming the norm as mathematical formulas make trades faster and smarter.

31.5.2007 - CBOT launches into credit derivatives
The Chicago Board of Trade is launching its first product in the fast growing world of credit derivatives with an investment grade index futures contract for credit default swaps. Credit default swaps are over-the-counter derivative contracts that allow buyers to hedge against potential credit losses, while sellers assume credit risk in exchange for payment. Market participants include banks, hedge funds and other institutional investors.

31.5.2007 - Man'shedge fund falls near 5 per cent
Man Group, the world's largest hedge fund manager, sent a ripple of fear through the hedge fund industry today as it disclosed that rates of return at its flagship funds, AHL Diversified, fell 4.8 per cent last year. The performance at AHL, which was hit by the China-prompted market correction in February, will have wiped millions off the value of its assets and cut returns for Man's legions of institutional and retail investors. It was largely responsible for a 20 per cent slide in income from performance fees to USD358 million generated last year, Man said. The setback to the funds eclipsed a 13 per cent increase in pre-tax profits from asset management at Man of a record GBP1.3 billion and prompted worries that other funds would have suffered similar losses.

31.5.2006 - Man Group posts profit rise, names new finance chief
Man Group said that its fiscal-year profit rose to USD1.28 billion, or 63.9 cents, from USD1.01 billion, or 51.0 cents a year ago. Revenue rose to USD2.1 billion, from USD1.9 billion last year, while pretax profit rose 26% to USD1.56 billion, just ahead of analyst forecasts. Funds under management increased 24% to USD61.7 billion after record fund sales of USD15.9 billion in fiscal 2007 after high levels of demand for products from both institutional and private investors. Man Group said that it's estimating that funds under management are currently over USD65 billion and that it's very confident about the prospects for the year ahead. Separately, the company said that Kevin Hayes will be its new finance director, replacing Peter Clarke who became chief executive on March 30.