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YELLOW ****** WEDNESDAY, MARCH 19, 2014 ~ VOL. CCLXIII NO. 64 WSJ.com HHHH $2.00 fying insignia, the Ukrainian De- fense Ministry in Kiev said. Such forces, backed by pro- Russian locals, occupied Crimea two weeks ago, surrounding Ukrainian bases in the region and demanding the soldiers inside surrender and leave, or switch al- legiance to Russia. A Kremlin spokesman called the incident a provocation, with- Please turn to page A13 end of World War II—upending long-held assumptions about se- curity on the continent and po- tentially condemning Russia to a period of prolonged isolation. The Ukrainian soldier was killed and another wounded in a shootout as their office in the Cri- mean capital of Simferopol was stormed by well-armed comman- dos wearing Russian uniforms that had been stripped of identi- glories, but also offered reassur- ances that the Kremlin has no further designs on Ukrainian ter- ritory. Only two weeks ago, however, Mr. Putin said Moscow had no plans to annex Crimea. On Tues- day, he moved to do just that. Even if he stops at Crimea, Mr. Putin’s annexation of the Black Sea peninsula would be the first such move in Europe since the MOSCOW—Russian President Vladimir Putin signed treaties Tuesday to annex Crimea, even as the killing of the first Ukrai- nian soldier in the breakaway re- gion raised doubts about how peaceful the takeover would be. The developments followed a fiery speech by Mr. Putin that leaned heavily on Russia’s past DJIA 16336.19 À 88.97 0.55% NASDAQ 4333.31 À 1.25% NIKKEI 14411.27 À 0.9% STOXX 600 327.93 À 0.6% 10-YR. TREAS. À 5/32 , yield 2.679% OIL $99.70 À $1.62 GOLD $1,359.00 g $13.90 EURO $1.3934 YEN 101.44 TODAY IN PERSONAL JOURNAL The New Dinnertime Staple PLUS In Defense of a Very Messy Desk CONTENTS Corporate News... B2-5 Global Finance............ C3 Heard on the Street C14 Home & Digital...... D2,3 In the Markets........... C4 Leisure & Arts............ D5 Opinion.................. A15-17 Property Report C6-10 Sports.............................. D6 Technology................... B6 U.S. News................. A2-8 Weather Watch........ B8 World News......... A9-14 s Copyright 2014 Dow Jones & Company. All Rights Reserved > What’s News i i i World-Wide n Putin signed treaties to an- nex Crimea but said Russia had no further designs on Ukrainian territory. A Ukrainian soldier was killed in a shootout with Russian commandos. A1, A12-13 n Malaysia ceded some con- trol of the search for a missing plane to other nations after op- erations in some areas stalled due to a lack of guidance. A10 n A top Syrian official said the regime sees no point in further peace talks if the oppo- sition and Western backers in- sist Assad relinquish power. A9 n Iran and six world powers resumed nuclear talks, seeking to inject momentum ahead of a July deadline for a deal. A9 n A new food-stamp fight is brewing in Congress as more states move to prevent cuts. A6 n Karzai nominated a Tajik opposition figure for vice presi- dent, a move that could smooth pre-election tensions. A10 n The Pentagon said better screening may have prevented the Navy Yard killings. A8 n Bruce Rauner, an ex-private- equity executive, won the GOP primary race to challenge Illi- nois’s Democratic governor. A6 n A judge blocked testimony from the alleged 9/11 master- mind in the terrorism trial of bin Laden’s son-in-law. A8 n Died: James Stowers, 90, fund founder, philanthropist. C2 i i i R egulators are looking at the relationship between high-speed traders and major exchanges to see if other inves- tors are at a disadvantage. A1 n The U.S. and Toyota are set to announce a settlement over the auto maker’s disclosure of safety issues that could total more than $1 billion. B1 n GM’s Barra promised a thorough probe into the faulty switches linked to 12 deaths and named a safety czar. B1 n The NYSE is the front- runner to win the listing for shares of Chinese e-com- merce company Alibaba. C1 n U.S. stocks rallied. The S&P 500 climbed 13.42 to 1872.25, just shy of a record. The Dow rose 88.97 to 16336.19. C4 n Viacom resolved copyright litigation with Google over the tech firm’s YouTube service, ending a seven-year fight. B3 n Oracle’s earnings fell short of expectations. Its shares slid 3.6% in after-hours trading. B3 n Nearly half of CEOs polled said they expect to boost capi- tal spending. Only 37% plan to increase U.S. employment. A2 n Fortress is joining with Pantera and two other firms to create a bitcoin fund. C3 n Merger talks between J. Crew and Uniqlo owner Fast Retailing fell apart. B2 Business & Finance At These Prisons, Inmates Stage Their Own Dog Day Afternoons i i i Canines Go to Clink for Remedial Training, Boarders Pad In, Too; Pax’s Lap of Luxury The Washington Corrections Center for Women here pio- neered the concept of matching abandoned, abused and ne- glected dogs with offenders, many of whom come from back- grounds almost as dire. Launched in 1981, the program has blos- somed into a plethora of nonprofits bearing names like Colorado Cell Dogs, Death Row Dogs and New Leash on Life—all of which res- cue dogs from crowded shelters. From there, they get straightened Please turn to page A14 Regulators are taking aim at the relationship between high- frequency trading firms and ma- jor exchanges, examining whether the preferential treat- ment market operators offer the firms puts other investors at a disadvantage. The Commodity Futures Trad- ing Commission is investigating deals between large high-speed firms and the two futures-ex- change operators, CME Group Inc. and IntercontinentalEx- change Group Inc., according to people familiar with the matter. The probe is focused on com- plicated, often opaque incentive programs that give high-volume trading firms financial benefits such as discounts on fees the ex- changes charge to execute trades, the people said. Separately, Securities and Ex- change Commission enforcement officials are investigating whether stock exchanges provide advantages to certain clients, in- cluding high-frequency traders, by designing software programs that can give preferential treat- ment to their orders, and whether such details have been fully disclosed, people familiar with that inquiry said. The probes come amid height- ened concerns among institutional investors, lawmakers and regula- tors that superfast traders have access to advantages on stock and futures exchanges not typically available to regular investors. Regulators are concerned that less-savvy or less-influential in- vestors aren’t aware of the bene- fits and advantages that ex- changes are providing to certain clients, making it difficult for them to compete fairly, accord- ing to people familiar with the investigations. High-speed firms use sophisti- cated computer systems to move rapidly in and out of markets in fractions of seconds. So far, market watchdogs have done little to curb such trading, which has boomed and now makes up about half of all stock- market volume. Computerized trading has come under scrutiny in recent years and has been tied to market mishaps such as the May 6, 2010, “flash crash,” when stocks nose-dived and then re- covered in a matter of minutes. The CFTC probe is looking at Please turn to the next page BY SCOTT PATTERSON AND JENNY STRASBURG Speedy Traders Face U.S. Scrutiny BY GREGORY L. WHITE Defiant Russia Claims Crimea As Violence Flares in Region A Hillary Clinton presidential candidacy looks like a sure thing, with marquee Democratic donors and activists mobilizing for what they see as her inevitable en- trance into the 2016 race. Yet some of Mrs. Clinton’s clos- est confidants and allies aren’t sold on the idea that she should run. Their cautions add an unpre- dictable element as Mrs. Clinton weighs whether to seek the presi- dency again, a decision she says she plans to make later this year. One of Mrs. Clinton’s top ad- visers and former aides, Cheryl Mills, believes she should stay out of the contest and has told her as much, according to people familiar with her views. But Sen. Barbara Boxer (D., Calif.) says she encourages Mrs. Clinton to run every chance she gets. Others close to Mrs. Clinton worry that another campaign would test her stamina as she moves into her late 60s and would revive scandals from Bill Clinton’s White House that could prove personally painful. Linda Bloodworth-Thomason, a longtime friend of the Clintons who has made films for their past campaigns, said she thinks Mrs. Clinton would like to run, and that she would like to see her friend do what makes her happiest. She added: “I’m not in the polit- ical camp; I’m in the friends camp. And the friends camp definitely has concerns about her running.’’ The cautions show a gulf be- tween friends and aides attuned Please turn to page A6 BY PETER NICHOLAS Some in Clinton’s Circle Hope She Won’t Run Overdue Honor Melvin Morris prepared to receive the Medal of Honor with 23 other veterans, many posthumously, who had been overlooked because of their race or ethnicity. A8 Joe Raedle/Getty Images Russian President Putin enters a Kremlin hall on Tuesday to sign a treaty for Crimea to join Russia, after the region voted in a referendum to leave Ukraine. Sergei Ilnitsky/Press Pool GIG HARBOR, Wash.— The penitentiary here holds more souls than it was ever designed for. Some of the residents are loud and “mouthy,” needing lots of one-on- one attention; a few just can’t keep still. Others just want a good tummy rub. Home to female of- fenders, including mur- derers, Gig Harbor is one of several prisons across the country that welcome dogs with a bad rap. BY JOEL MILLMAN RESET REBUFF How Putin Parried Obama’s Overtures LONDON—U.S. officials negotiating with Russian Foreign Minister Sergei Lavrov over the future of Ukraine were surprised last week after the experienced diplomat excused himself to phone President Vladimir Putin in Moscow. His making such a call wasn’t unusual: Mr. Lavrov often sought instructions from the Kremlin leader. The Americans were stunned, however, when Mr. Lavrov reported that Mr. Putin had refused to take his call. Coming during the final U.S. attempts to preserve the modern borders of Europe, the episode with Mr. Lavrov here last week un- derscored the Obama administration’s inabil- ity to penetrate the Kremlin and its struggles to comprehend Mr. Putin’s calculations five years after President Barack Obama decided to reset Washington’s ties with Moscow. Russia’s rapid move this week to absorb Crimea came despite breakneck U.S. diplo- matic efforts, showing the limits of that ap- proach with Moscow and marking a renewed chill with an expansionist-minded partner still seen as vital to core American interests around the world. The Obama administration is now left crafting a more confrontational policy toward Mr. Putin, but it remains unclear how far it will go. The inner workings of the Obama ad- ministration’s diplomatic push, including Mr. Lavrov’s phone call, were described by several senior U.S., European and Russian officials who were familiar with the recent negotia- tions. Since the crisis over Ukraine erupted last month, the White House gave Secretary of State John Kerry the task of aggressively en- gaging Mr. Lavrov. But the administration soon concluded that the Soviet-trained bu- reaucrat wasn’t empowered to cut deals on the Kremlin’s plans to annex Ukraine’s Cri- mean region. The White House, sensing its isolation from Mr. Putin, desperately set about to find Please turn to page A12 BY JAY SOLOMON AND CAROL E. LEE Crisis in Ukraine Divisions emerge in European capitals over how to punish Russia.................... A12 Ukrainians abroad fear Crimea bid is the start of a deeper incursion ................... A13 Activist’s killing worries Tatars ........... 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