A trader with reason to be very angry left Barclays in New York
…Rob Bogucki spent nearly 11 years at Barclays before leaving in April 2019. He joined the bank from Lehman in 2008 and previously worked for Merrill, Morgan Stanley and Goldman. Bogucki has pedigree. At Barclays he was co-head of the global macro division, managing 700 people. – Until he was accused by the U.S. Department of Justice of misleading Hewlett-Packard on a GBP6bn ($7.7bn) currency deal and charged with attempted fraud in January 2018.
****SD: More on Bogucki’s case via Bloomberg: Barclays Trader Beats U.S. Prosecution of Front-Running Charges.
High-frequency trader seeks tower climbers to gain an edge
Samuel Agini – Financial News (SUBSCRIPTION)
Jump Trading, the US high-speed trading firm, is on the hunt for technicians with a head for heights as it tries to shave all-important milliseconds off the time it takes to trade.
Chicago-based Jump wants field engineers to help it repair and maintain the telecommunication towers it uses to transmit buy and sell orders at lightning-fast speeds when trading across financial markets, according to job listings on its website.
****SD: I forgot to run this Monday! It’s a good one – apologies for letting this slip through the cracks.
Prof. Emeritus Mark Rubinstein, financial engineering pioneer, passes away
Berkeley Haas School of Business
Mark Rubinstein, a finance professor emeritus whose work had a profound impact on Wall Street by forever changing how financial assets are created and priced, died May 9 in Tiburon, California. He was 74.
Rubinstein, who retired in 2012 after nearly 40 years on the University of California, Berkeley’s Haas School of Business faculty, was a pioneer in applying mathematical tools to financial markets. He was best known for his contributions in options pricing, as well as the development of the first Exchange Traded Fund (ETF).
China allows insurers to use credit derivatives
Chinese regulators have allowed insurance companies to use credit derivatives to hedge against risks as part of efforts to encourage insurance funds to serve the real economy.
Where Will the Buy Side Be in Five Years?
Bloomberg Professional Services via TABB Forum
In five years, asset managers will look very different than they do today, due to a combination of structural shifts in the market and digital innovation. To succeed, firms will need to make profound changes in their technology. But where do asset managers invest? Setting priorities will likely depend on which buy-side trends affect your business the most.
****SD: Alternate Bloomberg link here.
Exchanges and Clearing
OCC CEO John Davidson w/ with Mark Longo at OIC 2019 (AUDIO)
Options Insider Radio
****SD: The Options Insider has a new website – check it out here. I’d also recommend Is Anyone Trading UVXY Anymore?
Eurex Roadmap 2019 (Powerpoint)
Welcome to the Eurex Roadmap Workshop!
BNY Mellon loses global head of FX options
Laura Matthews – FXWeek (SUBSCRIPTION)
Sam Osterman, global head of foreign exchange options at Bank of New York Mellon, has left the bank, FX Week has learned.
“Every single one of my Goldman friends are looking for jobs right now”
As predicted, there’s been another exit from Goldman Sachs’ U.S. electronic equities trading business.
Zheng Guo, a vice president (VP) level equity derivatives agency trader at the firm’s New York office, is understood to have resigned last week. Neither Goldman nor Guo responded to a request to confirm his disappearance, but Guo is no longer listed on Goldman’s internal directory.
Regulation & Enforcement
Cattle Trader Alleges Packer Conspiracy
Todd Neeley, DTN – Ohio’s Country Journal
The nation’s largest meatpackers face a second class-action lawsuit alleging conspiracy to drive down cattle prices. The suit was filed in federal court by a Fort Lauderdale, Florida-based live cattle futures trader.
The plaintiff, Michael Sevy, alleges in a lawsuit filed in the U.S. District Court for the District of Minnesota that at least since January 2015, meatpackers have been conspiring to drive down prices.
****SD: Has there ever been a period when there have not been conspiratorial allegations in cattle markets?
EU and UK regulators clash over post-Brexit market supervision
Caroline Binham in London 7 hours ago – Financial Times (SUBSCRIPTION)
European and British markets regulators clashed on how best to supervise financial markets after Brexit, throwing cold water on UK calls that a bespoke arrangement be designed once the UK leaves the European Union.
Steven Maijoor, who chairs the European Securities and Markets Authority, the Paris-based EU markets watchdog, said on Tuesday that there were legitimate concerns that financial companies would try to find and exploit loopholes between the UK and the EU after Brexit, in what is known as regulatory arbitrage.
Backtesting Basics: Commodities ETFs with Options
Commodities as an investment are often sought by investors for their low correlation to stocks. Commodities can be bought outright and the physical commodity owned, the futures can be bought, or ETFs can be owned.
SEC Again Postpones Decision on Cboe Bitcoin ETF
Hopes for a bitcoin exchange traded fund are being dashed, again. Today, the US Securities and Exchange Commission (SEC) has once again rescheduled its decision on yet another proposed bitcoin ETF.
****SD: “Do or do not, there is no postpone.” -Yoda the Hodler
Democrats Cozy Up to Wall Street While Shunning Corporate Cash
Max Abelson – Bloomberg (SUBSCRIPTION)
In February, Pete Buttigieg stepped into the Manhattan office of Wall Street veteran Charles Myers to talk politics over deli sandwiches. Citigroup Inc. Managing Director Yann Coatanlem hosted a fundraiser in March for Kamala Harris at his Fifth Avenue apartment, where she shook the paw of the banker’s labradoodle. Three days later, former Goldman Sachs Group Inc. partner Bruce Heyman raised more than $100,000 for Amy Klobuchar at his home in Chicago. He’s planning an event for Joe Biden this fall.
One in ten European banks to disappear over the next five years
A.T. Kearney is predicting the demise of one in ten European banks over the next five years as more agile digital challengers embrace the changes wrought by Open Banking to increase their market reach.
****SD: Will one be Deutsche Bank?
Yuan Slump Derails Big Year of Foreign Buying in China’s Markets
Livia Yap and Yuling Yang – Bloomberg (SUBSCRIPTION)
Expectations that $200 billion of foreign money would flow into China’s capital markets this year are looking nothing short of optimistic.
****SD: So much for that index inclusion…