First Read

Hungry for more: Dash Financial Sees Opportunity In A New Broker Landscape
Jim Kharouf, JLN

For some firms today, being young has its advantages. Dash Financial might just be one of those young and agile companies that can take advantage of the currents that are pushing and pulling the industry.

Later this quarter Dash is expected to complete its acquisition of LiquidPoint, Convergex’s options brokerage and technology business, thus giving the combined firm 13 percent of the equity options and index options market volume. That’s more than double the current marketshare Dash Financial has quickly built since it launched in 2011.

Peter Maragos, CEO of Dash (soon to be renamed Dash Financial Technologies), said the deal is the right fit for the firm, melding the financial technologies that Dash has built along with LiquidPoint’s technology and customer base.

What is more interesting about the deal is the environment that has made it work. Regulation, for all of its warts and wants over the past 8-plus years, plays a part in this. Maragos points out that the massive deleveraging by banks and others since the passage of Dodd-Frank and European regulation, has pushed some players out of the equity options business. Some of this is due to risk and some due to capital requirements that have forced banks to think long and hard about just where they make the most money.

Read more here

++++

Libor scandal: the bankers who fixed the world’s most important number; With arrogant disregard for the rules, traders colluded for years to rig Libor, the banks’ lending rate. But after the crash, the regulators were on their trail
by Liam Vaughan and Gavin Finch – The Guardian
At the Tokyo headquarters of the Swiss bank UBS, in the middle of a deserted trading floor, Tom Hayes sat rapt before a bank of eight computer screens. Collar askew, pale features pinched, blond hair mussed from a habit of pulling at it when he was deep in thought, the British trader was even more dishevelled than usual. It was 15 September 2008, and it looked, in Hayes’s mind, like the end of the world.
/goo.gl/ZBsut9

***** Take a few minutes, or more, for a deep dive into the Libor scandal.

++++

Fast Trader Pulled a Fast One on Some Customers
By Matt Levine – Bloomberg
The basic way that regular people buy stock is like this:

  1. You go to your broker’s website and click a “buy” button.
  2. Your broker sends your order to Citadel Securities LLC.
  3. Citadel looks at the price that the stock is selling for on the public stock exchanges.
  4. Citadel sells you the stock itself, for a price a tiny bit lower than that.

/goo.gl/Rw7Ddv

An SEC Chairman like Jay Clayton
Written by Jim Toes, Security Traders Association via MarketsMedia
There are few more important or influential roles in the financial markets than that of U.S. Securities and Exchange Commission (SEC) Chairman. The person who assumes this responsibility is charged with fulfilling the SEC’s mission to protect the interests of investors, ensure fair and orderly markets, and facilitate capital formation. This mission statement carries with it a certain degree of diversity and as such, requires distinct skill sets in ensuring its success. Finding a Chairman with expertise in all three is extremely difficult, if not impossible, in today’s complex financial system and markets.
/goo.gl/cp6I1Z

Tom Carey, 62, political savant, numbers genius
by Kyle Garmes – Beverly Review
Tom Carey was a numbers whiz. Dozens of politicians in and around Chicago acknowledge that, and they can thank the local native for helping in the elections they won—a few of them in surprising fashion.
/goo.gl/u6Z1xP
**** Former CBOE executive, there are the beginning.

A Warning to Trump From Friedrich Hayek
By Cass R. Sunstein – Bloomberg
If American conservatives have an intellectual hero, it might well be Friedrich Hayek — and rightly so. More clearly than anyone else, Hayek elaborated the case against government planning and collectivism, and mounted a vigorous argument for free markets. As it turns out, Hayek simultaneously identified a serious problem with the political creed of President-elect Donald Trump.
/goo.gl/E7CyBy
****** The ghost of economy future.

Top Oil Traders Disclosed Trump Campaign Donations of Just $168
by Andy Hoffman – Bloomberg
U.S. staff at trading houses gave 767 times more to Clinton; Commission filings cover employees disclosing their employer
Top oil traders bet billions of dollars anticipating global political trends, yet few put money directly behind Donald Trump’s presidential campaign.
/goo.gl/jjqPNF
***** This was not what you would call slick giving.

Sponsored Content

CMC: State of the Industry 2017 – Limited Tickets Available – Register Today

Come join CMC in Miami Beach, Florida on January 29 to 31, 2017 at the The Miami Beach Edition Hotel.
Commodity Markets Council is the leading trade association for commodity futures exchanges and their industry counterparts. CMC provides the access, forum, and action for exchanges and exchange users to lead our industry in addressing global market and risk management issues.

CMC advocates an open, competitive marketplace by combining the expertise, knowledge, and resources of our members to develop and support market-based policy.

CMC addresses industry issues focusing on agriculture, energy, finance, infrastructure, and transportation. register today.

To view the event program, register, or to learn more, please visit http://www.commoditymkts.org

CMC: State of the Industry 2017

++++

As Pot Prices Plunge, Growers Scramble to Cut Their Costs
by Jack Kaskey – Bloomberg
Scotts and other agricultural-tech companies tap new market; Harvesting 1,700 pounds of Dirty Girl and Cinderella’s Dream
The increasing supply of legal marijuana is turning into a major buzz kill for growers as prices plunge — and an opportunity for companies that can help cut production costs.
/goo.gl/tWPi2c

***** I wonder if the pot producers will take a page out of the dairy industry and dump excess pot in the streets.

++++

Journalism That Stands Apart; THE REPORT OF THE 2020 GROUP
NY Times
This report, by a team of seven Times journalists, outlines the newsroom’s strategy and aspirations. For additional details, see this memo from Dean Baquet, The Times’s executive editor, and Joe Kahn, the managing editor.
/goo.gl/0U6YjH

***** The NY Times has more journalists who code than anyone else.

++++

Tuesday’s Top Three
Yesterday’s top three starts with the Financial Times story, Citadel Securities agrees $22.6m settlement with SEC. In second is a New York Times story, In Choosing a Job, Focus on the Fun, that I think assumes workers have more choices in jobs than actually exist. Would that it were otherwise. In third we have a Reuters article, ADM shakes up global commodities trading business

++++

MarketsWiki Stats
92,461,316 pages viewed; 22,311 pages; 203,261 edits
MarketsWiki Statistics

++++

Lead Stories

Bats Global Markets Announces Stockholder Approval Of Merger Agreement With CBOE Holdings
BATS
Bats Global Markets, Inc. (Bats: BATS) (“Bats”) today announced that based on a preliminary vote tally from the special meeting of stockholders held today, Bats stockholders have voted to adopt the previously announced merger agreement pursuant to which (i) CBOE Corporation (“Merger Sub”), a wholly owned subsidiary of CBOE Holdings, Inc. (NASDAQ: CBOE) (“CBOE”), will merge with and into Bats, with Bats surviving as a wholly owned subsidiary of CBOE Holdings (the “Merger”) and (ii) following the completion of the Merger, the surviving corporation will merge with and into CBOE V, LLC, a wholly owned subsidiary of CBOE Holdings (the “Subsequent Merger”), with CBOE V, LLC surviving the Subsequent Merger and continuing as a wholly owned subsidiary of CBOE Holdings.
/goo.gl/demg4c

***** CBOE Shareholders also approved the merger.

Departing SEC Chair Mary Jo White Blasts Congress on Her Way Out the Door
Reuters
Outgoing U.S. Securities and Exchange Commission Chair Mary Jo White had some harsh parting words for Congress on Tuesday and a plea to the incoming administration to ensure the regulator remains independent and insulated from political pressures.
/goo.gl/TVQH3D

HSBC CEO Says Bankers Generating 20% of London Revenue May Move
by Stephen Morris and Richard Partington – Bloomberg
Gulliver doesn’t expect Trump-sparked trade war with China; Bank to ‘proceed slowly’ moving Brexit staff, he says in Davos
HSBC Holdings Plc Chief Executive Officer Stuart Gulliver said trading operations that generate about 20 percent of revenue for the lender’s investment bank in London may move to Paris, quantifying some of the aftershocks for the U.K. after Brexit.
/goo.gl/PduMCd

Thesys chosen to build equity market surveillance system; Consolidated Audit Trail to monitor millions of orders and quotes daily
by: Nicole Bullock in New York – FT
A much delayed surveillance system to monitor trading in the world’s largest equity market took a big leap forward on Tuesday with the selection of the group to build and operate the project. Founded in 2009, Thesys Technologies, a trading technology provider, beat out the Financial Industry Regulatory Authority and SunGard Data Systems
/goo.gl/Kqh3Bf

U.S. top court rejects banks over Libor antitrust lawsuits
By Lawrence Hurley – Reuters
The U.S. Supreme Court on Tuesday allowed private antitrust lawsuits brought by investors including big U.S. cities accusing major banks of conspiring to manipulate the pivotal Libor benchmark interest rate to move forward. The justices rejected an appeal filed by a group of banks including Bank of America Corp, Deutsche Bank AG, UBS AG and JPMorgan Chase & Co of a May 2016 ruling by the New York-based 2nd U.S. Circuit Court of Appeals that allowed various lawsuits against them to proceed.
/goo.gl/tH3MPf

Deutsche Bank signs $7.2 billion deal with U.S. over risky mortgages
Karen Freifeld – Reuters
Deutsche Bank has signed a $7.2 billion settlement with the U.S. Department of Justice over its sale of toxic mortgage securities in the run-up to the 2008 financial crisis, the government agency said on Tuesday.
jlne.ws/2iEJsLa

Ex-Traders in Singapore Guilty of Cheating Deutsche Bank, HSBC
by Andrea Tan – Bloomberg
Toh Hway Khuan pleads guilty to making false currency trades; Ivan Chng pleads guilty to 25 charges in separate case
Two former currency traders from Deutsche Bank AG and HSBC Holdings Plc were convicted of cheating the banks by making false trades.
/goo.gl/JyBk4P

BlackRock settles SEC charges over whistleblower protection violations
By Sarah N. Lynch – Reuters
Asset manager BlackRock Inc will pay a $340,000 penalty to settle charges that it improperly required parting employees to sign agreements forcing them to waive their rights to recover whistleblower awards, U.S. regulators said on Tuesday.
/goo.gl/HhsSGX

Deutsche Bank Scraps Senior Bankers’ Bonuses for 2016
by Stephen Morris and Ambereen Choudhury – Bloomberg
Bank said to plan announcing decision as early as this week; Most junior banker compensation has been moved to fixed pay
Deutsche Bank AG will tell senior employees as soon as this week that they probably won’t get a bonus for 2016 because of the lender’s performance last year, according to a person familiar with the decision.
/goo.gl/Jtd9aT

Goldman Sachs profit soars on post-election surge in trading
Reuters
Goldman Sachs Group Inc (GS.N) reported a nearly four-fold rise in quarterly profit on Wednesday as it benefited, like other big banks, from a surge in trading following Donald Trump’s surprise win in November’s presidential election.
/goo.gl/6GeBn7

Bernie Madoff is cornering the prison market on Swiss Miss hot chocolate; ‘Ponzi Supernova’ is based on hours of previously unheard interviews with Madoff
Ryan Vlastelica – MarketWatch
Bernie Madoff, who ran a nearly $65 billion Ponzi scheme, is one of the biggest thieves in history. But he was also the product of a financial system in which both clients and regulators looked the other way from cooked books to continue reaping the gains he steadily delivered. That’s one of the sure-to-be-controversial conclusions of “Ponzi Supernova,” a new Audible audio series built around extensive interviews with the now-jailed Madoff and hours of previously unheard testimony where he discusses his crimes in his own words.
jlne.ws/2ilqkC0

****SD: Just like a news broadcast, the enticing tidbit from the title is not mentioned until the very end.

Trading allegations cast shadow over Trump cabinet pick; Democratic senators say investment by health nominee Tom Price may have been illegal
by: Courtney Weaver and Barney Jopson in Washington – FT
New stock trading allegations are set to cast a shadow over Tom Price’s confirmation hearing as health secretary on Wednesday, as Senate Democrats prepare to do battle over Donald Trump’s latest cabinet picks.
/goo.gl/x8OMYu

Trump Aide Scaramucci Sells Investment Business to Chinese Consortium
By MICHAEL J. de la MERCED – NY Times
Donald J. Trump has made no secret that he is willing to pick fights with China. Yet a financier with close ties to the president-elect said on Tuesday that he was selling his investment firm to a group led by a fast-growing Chinese conglomerate.
/goo.gl/1zdLtQ

Treasury Pick Steven Mnuchin, Like His Would-Be Boss Donald Trump, Followed His Own Rules; While at OneWest, Mr. Mnuchin tried to persuade regulators to sell him a California thrift that hadn’t failed yet
By KIRSTEN GRIND, RACHEL LOUISE ENSIGN and ANNAMARIA ANDRIOTIS – WSJ
First Federal Bank of California executives knew their thrift was in deep trouble but thought they had time to try to save it.
/goo.gl/i94DHc

Brexit

Finance industry’s worst case on Brexit spurs contingency plans
Anjuli Davies and Andrew MacAskill – Reuters
Britain’s financial services will accelerate plans to move some business overseas after Prime Minister Theresa May said on Tuesday the country will quit the European Union’s single market.
jlne.ws/2iEhRd2

May’s Brexit: going it alone, hoping for an EU trade deal
Andy Bruce – Reuters
Prime Minister Theresa May has finally outlined what Brexit really means for her: Britain going it alone, fully disentangled from the European Union while hoping the bloc will agree to a comprehensive trade deal.
jlne.ws/2iEghrJ

Ireland says has fielded over 100 inquiries from UK financial firms
Reuters
Ireland’s central bank has had over 100 inquiries from UK financial firms considering moving operations as a result of Britain’s vote to leave the European Union, Finance Minister Michael Noonan said on Tuesday.
jlne.ws/2iEUMak

The Risks of ‘Brexit Means Brexit’
Bloomberg Editorial Board
On Tuesday, U.K. Prime Minister Theresa May set out her fullest account yet of her aims in the forthcoming Brexit negotiations. Greater clarity was overdue, and welcome — but with it comes a clearer understanding of the enormous hazards Britain faces as this process moves forward.
/goo.gl/HXJczm

May’s Brexit speech: Sturgeon says second referendum ‘undoubtedly’ closer
BBC
Nicola Sturgeon said that plans to take the UK out of the EU’s single market brought a second Scottish independence referendum “undoubtedly” closer.
The first minister was speaking after Prime Minister Theresa May outlined her government’s thinking on Brexit.
Ms Sturgeon, in a BBC interview, agreed that another vote on independence was “all but inevitable”.
/goo.gl/R6jMOl

Sell the Brexit rumour, buy the fact
Elaine Moore – Financial Times
What has happened to the pound’s reputation among currency traders as the official opposition to UK government policies on Brexit? Prime minister Theresa May’s pronouncements on the country’s imminent split from the EU typically result in sharp falls in sterling. Yet her speech on Tuesday confirming that Britain will leave the single market put it on course for its best one-day gain in eight years.
jlne.ws/2iEr3OR

Exchanges, OTC and Clearing

CME Group Clears Daily Record 1 Trillion in Mexican Peso Interest Rate Swaps
CME Group
CME Group, the world’s leading and most diverse derivatives marketplace, announced today that it cleared a record 1 trillion in Mexican peso (MXN) interest rate swaps in a single day, January 12, 2017, an equivalent of more than $47 billion in notional value. January 12 cleared notional surpassed the previous record of MXN 659 billion ($32 billion) set on December 16, 2016.
jlne.ws/2iEiZO9

CBOE Holdings Stockholders Approve Share Issuance In Bats Merger
CBOE
At a special meeting of stockholders of CBOE Holdings, Inc. (NASDAQ: CBOE) held today, CBOE Holdings stockholders voted in favor of a proposal to approve the issuance of shares of CBOE Holdings common stock pursuant to the previously announced Agreement and Plan of Merger, dated as of September 25, 2016, by and among CBOE Holdings, two wholly-owned subsidiaries of CBOE Holdings and Bats Global Markets, Inc.
jlne.ws/2iEDNoI

Bitcoin exchange receives license to operate in New York
Joseph Adinolfi – MarketWatch
Coinbase, a popular California-based digital currency exchange, was awarded a coveted license to deal in digital currencies in New York becoming only the fifth such firm to win approval to operate in the state.
jlne.ws/2iEJUt6

LCH to clear single-name CDSs for US clients
Risk.net
Paris-based CDSClear already in discussions to onboard its first US FCM
jlne.ws/2iEk2gI

Dalian Commodity Exchange New Year’s Message
Mondovisione
On Behalf of Dalian Commodity Exchange (DCE), I would like to extend the New Year’s greetings to the member units and market participants, and express our heartfelt thanks to all our friends for their support.
jlne.ws/2iy5t3k

Israel Issues Largest Ever Euro Bond Offering on London Stock Exchange
London Stock Exchange Group
London Stock Exchange today welcomes the listing of Israel’s largest ever Euro denominated bond offering. The EUR2.25 billion issue in 10 and 20 year government bonds marks the first time in three years Israel has issued Euro denominated debt. The offer secured exceptional investor demand and was more than four times oversubscribed, with the combined order books closing in excess of EUR9.5 billion.
/goo.gl/INWcoe

Clearstream’s monthly report; German market prepares for TARGET2-Securities migration / Important milestone for Clearstream
Deutsche Börse
Europe is approaching the TARGET2-Securities (T2S) immigration wave of a fourth and at the same time a penultimate migration wave of a harmonized settlement landscape. As the largest participant, Clearstream will bring around 40 percent of the total volume to the European Central Bank settlement platform in February. The current volume will thereby double.
/goo.gl/YxIhSQ

Liquidity Alliance is developing a block-based solution for cross-border security transfer
Deutsche Börse
Four international CSDs are working together with Deutsche Börse to develop a prototype blockchain prototype. “LA Ledger” solution is designed to enable a fast and efficient availability of collateral
/goo.gl/z0Oi5S

Bitcoin exchange receives license to operate in New York
By Joseph Adinolfi – MarketWatch
Coinbase, a popular California-based digital currency exchange, was awarded a coveted license to deal in digital currencies in New York becoming only the fifth such firm to win approval to operate in the state.
/goo.gl/ubN0sG

Politics

The Trump Deficit
Kenneth Rogoff – Project Syndicate
It is a post-financial-crisis myth that austerity-minded conservative governments always favor fiscal prudence, while redistribution-oriented progressives view large deficits as the world’s biggest free lunch. This simplistic perspective, while perhaps containing a grain of truth, badly misses the true underlying political economy of deficits.
jlne.ws/2iEMbEH

Xi Jinping, Head of World’s Largest Communist Party, Champions Global Trade
Emily Tamkin – Foreign Policy
On Tuesday, Xi Jinping, president of China and leader of the Chinese Communist Party, addressed the World Economic Forum in Davos. It was the first time a Chinese leader had ever done such a thing, but Xi made up for years of lost headlines by coming out as a champion — and perhaps even the champion — of global trade and the current international economic order.
jlne.ws/2iEJD9C

Capital Group chief says post-Trump change in markets ‘is real’; Asset manager says era of quicker economic growth, rising rates and higher inflation looms
by: Robin Wigglesworth, US markets Editor – FT
Global markets are on the cusp of a new era of faster economic growth, rising interest rates and higher inflation, according to the head of Capital Group, one of the world’s biggest asset managers.
/goo.gl/w9pesi

Beware of a black swan if Marine Le Pen pulls off a French election victory this May
David Brown – South China Morning Post
In amongst the myriad of potential risk factors that could take the euro down this year is the prospect of a seismic shift in France’s political landscape. French presidential hopeful Marine Le Pen of the far-right National Front has vowed that France should exit the euro currency should she come to power.
jlne.ws/2iEOFTo

Investing and Trading

Central Banks Drop Their Bazookas; Policy makers have largely signaled their exhaustion with low- and negative-rate policies; Fed leads the pack higher
By JON HILSENRATH – WSJ
An epoch of exceptional monetary stimulus is drawing to a close. Central banks have exhausted themselves in their efforts to spur economic growth with low—even negative—short-term interest rates and bond-purchase programs meant to drive financial-asset prices higher.
/goo.gl/KIujUJ

A short history of long bonds
Alexandra Scaggs – Financial Times
Americans don’t necessarily need to look abroad to find examples of ultra-long government bond issuance. The potential for a (currently nonexistent) US century bond has been discussed more as investors prepare for Treasury Department turnover, since there are plenty of examples of ultra-long issuance in other countries.
jlne.ws/2iE922Y

Trump Comments Send Dollar Reeling
Chelsey Dulaney, Ira Iosebashvili and Aaron Kuriloff – WSJ
The dollar tumbled to its lowest level in a month after President-elect Donald Trump told The Wall Street Journal he favored a weaker dollar, breaking with decades of tradition and intensifying investor concern over the new administration’s capacity for surprising policy shifts.
jlne.ws/2iE3kOJ

FTSE Russell Expands China Offering With Two New Indexes
Mondovisione
As China continues to open its markets to international investors, FTSE Russell is pleased to confirm the launch of two new benchmark indexes for China A-shares stocks.
jlne.ws/2iEhyPy

Scaramucci sells SkyBridge after getting Trump gig
By Carleton English – NY Post
Anthony Scaramucci just sold his “local bodega.” Less than a week after Scaramucci accepted a role in President-Elect Donald Trump’s administration, Scaramucci’s SkyBridge Capital announced that it has been sold to Washington, DC-based RON Transatlantic and the US-based arm of China’s HNA Capital.
/goo.gl/UgKIy5

Institutions

Morgan Stanley results powered by fixed income rebound
Philip Scipio – Reuters
Morgan Stanley said revenue from fixed income trading in the fourth quarter almost trebled from a year before to US$1.5bn, benefitting from its restructuring of the business a year ago.
jlne.ws/2iEaaDT

Morgan Stanley partners with tech firms to boost wealth business
By Elizabeth Dilts – Reuters
Morgan Stanley inked deals with 10 technology outfits last year to improve the products and services it offers wealth-management customers, the bank said on Tuesday.
/goo.gl/lSggE6

Ken Griffin’s flagship fund posts worst results in 8 years
Kim Janssen – Chicago Tribune
If you’re looking for someone to feel sorry for, consider the state’s richest man, Ken Griffin. The flagship fund at the gazillionaire’s hedge fund firm, Citadel, recorded its worst results in eight years in 2016, according to trade rag Institutional Investor’s Alpha.
jlne.ws/2iEm4h0

Deutsche Bank is reportedly holding back on bonuses this year
Kevin Dugan – MarketWatch
Deutsche Bank, the former Wall Street powerhouse, may hold back on giving out bonuses to as many as 90% of bankers and traders, the New York Post has learned.
jlne.ws/2iEf2bS

Scaramucci’s SkyBridge sells itself, investment team to stay put
Svea Herbst-Bayliss – Reuters
SkyBridge Capital, the hedge fund investment firm founded by Anthony Scaramucci, will sell a majority of itself to RON Transatlantic EG and HNA Capital, the company said on Tuesday, four days after Scaramucci took a position in President-elect Donald Trump’s administration.
jlne.ws/2iESlVj

Goldman Sachs head of compliance Alan Cohen to step down: memo
Reuters
Goldman Sachs Group Inc head of global compliance Alan Cohen is stepping down.
jlne.ws/2iEgX0r

5 Things to Watch in Goldman Sachs’ Results
WSJ
Goldman Sachs Group Inc. is scheduled to report results for the fourth quarter and year on Wednesday before markets open. The New York investment bank is expected to report higher earnings and revenue for the quarter.
/goo.gl/v3VKRh

James Gorman plays it cool at Morgan Stanley; Despite bank’s best fourth quarter since the crisis, chief executive refuses to crow
by: Ben McLannahan in New York – FT
James Gorman had an opportunity to crow on Tuesday morning. The chairman and chief executive of Morgan Stanley had just overseen the bank’s best fourth quarter since the financial crisis — one in which revenue from the much-maligned bond-trading unit surged 167 per cent from a year earlier to $1.47bn.
/goo.gl/WJlp4t

Fintech

White House outlines broad principles on fintech
By Lalita Clozel – American Banker
Just days before President Obama will leave office, the White House released a white paper advocating for the U.S. government to engage in efforts to promote the fintech industry.
/goo.gl/0p2GtP

A Framework for FinTech
BY ADRIENNE HARRIS, ALEX ZERDEN – The White House
Summary: Today, we are publishing our statement of principles as a policy framework for the fintech ecosystem.
/goo.gl/y5Wjnk

Accenture FinTech to Host Largest Programme in London Lab’s 5-Year History
Rebecca Campbell – Cryptocoinsnews.com
Accenture’s FinTech Innovation Lab London has chosen 20 innovative startups from more than 300 FinTech firms around the globe, which will represent the biggest programme in the London Lab’s five-year history.
/goo.gl/8p7Va3

FIS launches networking group for fintech firms
By Tanaya Macheel – American Banker
FIS is forming a network for the inaugural class of early-stage fintech companies from its VC Fintech Accelerator program.
/goo.gl/8ZgQXK

Regulation

What Cliff Gets Right
The Reformed Broker
I just digested Cliff Asness’s fresh take on the risks of implementing a Fiduciary Standard for brokers managing retirement accounts. It should be noted that people like me, investment advisor representatives (IARs) working at Registered Investment Advisory firms (RIAs) are already held to this standard. Brokers or Series 7-licensed Registered Reps are not. And then there’s this whole shady little gray area of hybrid broker-advisors which is probably going to come to an end at some point.
jlne.ws/2iEK1F5

Outgoing SEC Chair Says Congress Stifling Regulator’s Mission
Andrew Ackerman – WSJ
Departing Securities and Exchange Commission Chairman Mary Jo White on Tuesday criticized legislation she claimed would harm the commission’s independence, saying recent moves by Congress would crimp its ability to protect investors and impede responses to another financial crisis.
jlne.ws/2iEHb2G

MAR Guidelines On Commodity Derivatives Now Available In All EU Languages
Mondovisione
The European Securities and Markets Authority (ESMA) has issued today the official translations of its final guidelines on commodity derivatives under the Market Abuse Regulation (MAR).
jlne.ws/2iEdqz0

U.S. top court rejects banks over Libor antitrust lawsuits
Lawrence Hurley – Reuters
The U.S. Supreme Court on Tuesday allowed private antitrust lawsuits brought by investors including big U.S. cities accusing major banks of conspiring to manipulate the pivotal Libor benchmark interest rate to move forward. The justices rejected an appeal filed by a group of banks including Bank of America Corp, Deutsche Bank AG, UBS AG and JPMorgan Chase & Co of a May 2016 ruling by the New York-based 2nd U.S. Circuit Court of Appeals that allowed various lawsuits against them to proceed.
jlne.ws/2iEKzdO

Pershing Square, nine others hit with SEC ‘pay to play’ violations
Sarah N. Lynch and Svea Herbst-Bayliss – Reuters
Billionaire investor Bill Ackman’s hedge fund paid $75,000 to settle civil “pay-to-play” charges with the Securities and Exchange Commission after running afoul of campaign contribution and money management rules.
jlne.ws/2iEdn6e

BlackRock settles SEC charges over whistleblower protection violations
Sarah N. Lynch – Reuters
Asset manager BlackRock Inc will pay a $340,000 penalty to settle charges that it improperly required parting employees to sign agreements forcing them to waive their rights to recover whistleblower awards, U.S. regulators said on Tuesday.
jlne.ws/2iEjDuI

CFTC Orders CNCGC Hong Kong Ltd. To Pay A $150,000 Penalty For Call Cotton Reporting Violations
Mondovisione
The U.S. Commodity Futures Trading Commission (CFTC) today issued an Order filing and settling charges against CNCGC Hong Kong Ltd. (CNCGC HK), an investment and trading company headquartered in Hong Kong, for failing to file required CFTC Form 304 Cotton On-Call Reports, reporting its call cotton purchases and sales when it held or controlled at least one hundred (100) cotton futures positions, and for filing late Form 304 reports on two occasions.
jlne.ws/2iEb43f

EBA and ESMA Call to Clarify Margin Requirements Between CRR and EMIR
ESMA
The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) published today their joint report on the functioning of the Capital Requirements Regulation (EU) No 575/2013 (CRR) with the European Market Infrastructure Regulation (EU) No 648/2012 (EMIR).
/goo.gl/lyjPU4

Monthly Disciplinary Actions January 2017
FINRA
/goo.gl/Ay08AO

Regions

Index IDEA: New FTSE Russell China A transition indexes measure rapidly growing ChiNext segment
FTSE Russell Blog
The launch of Shenzhen-Hong Kong Stock Connect in early December signaled the continued expansion of access to the Chinese equity market to market participants outside of China. FTSE Russell has introduced the FTSE China A Innovative Enterprises Indexes to reflect the development.
jlne.ws/2iEFwuc

Capturing the World’s Largest Growth Story: the Emerging Markets Consumer
Karl Desmond – S&P Dow Jones Indices’ Indexology Blog
3 billion people entering the middle class and $30 trillion of annual consumption by 2025 – these are two numbers that summarize the drastic demographic and economic shift currently happening in emerging market countries and what McKinsey & Co. has called, “the biggest growth opportunity in the history of capitalism.” The Dow Jones Emerging Markets Consumer Titans 30 Index is comprised of 30 of the largest and most liquid emerging market consumer companies that are poised to benefit from these changes.
jlne.ws/2iEIwXc

Why China’s Recent Market Plunge Didn’t Spark a Broader Selloff; Chinese shares took a sharp dip earlier this week
By GREGOR STUART HUNTER – WSJ
Chinese market selloffs aren’t what they used to be. When Chinese stocks plunged in the early days of 2016, jitters quickly spread through global markets and sparked speculation the wheels were coming off for China’s economy.
/goo.gl/MFzJWA

China province admits falsifying fiscal data; Liaoning’s ‘large-scale financial deception’ latest blow to country’s statistics credibility
by: Tom Hancock in Shanghai – FT
The Chinese province of Liaoning fabricated fiscal data for four years, a senior official has admitted, the latest blow to the already shaky reputation of China’s economic statistics.
/goo.gl/BhClcA

Cash Ban Gives India Gold Lovers No Way to Buy Wedding Rings
by Swansy Afonso and Ranjeetha Pakiam – Bloomberg
Bullion demand lowest in seven years and imports still falling; Government bid to reform economy spells trouble for jewelers
A self-imposed cash shortage in India is creating chaos for jewelry retailers in one of the world’s biggest gold-buying countries. Sales are plunging.
/goo.gl/19LSHN

Investment Kings of Sweden Shrug Off Loss of Five CEOs at Once
by Hanna Hoikkala , Niklas Magnusson , and Kim McLaughlin – Bloomberg
For an industrial dynasty whose forebears ran Swedish diplomacy during World War I and defied Adolf Hitler in World War II, the biggest management disruption in a generation hardly constitutes a crisis.
/goo.gl/36nizd

Miscellaneous

50 Phrases to Run From
The Reformed Broker
There’s a peculiar patois in which the financial charlatan speaks. Below, we collect some of the tropes and tricks of the unhinged market rhetorician. Full disclosure: If you search my site or past commentary, you will probably find instances of me using some of these terms or words. It’s a little unavoidable to not parrot some of the stuff I consume, even if inadvertently. So I guess what I’m trying to say is to be wary of anyone using this stuff daily or deliberately.
jlne.ws/2iE9P44

U.S. makes $500 million grant to climate change fund: State Department
Reuters
The United States has made a $500 million grant to the Green Climate Fund, meant to help developing nations combat climate change, the State Department said on Tuesday.
jlne.ws/2iEViF4

Cash Is King for Diamond Market Reeling From India Money War
by Thomas Biesheuvel – Bloomberg
De Beers said to let buyers defer lowest-value gem purchases; India’s cash reforms on black money hit polishing industry
As diamond traders descend on Botswana this week for one of the year’s biggest sales, the $14 billion industry is struggling to recover from India’s war on black money.
/goo.gl/BjgXSu

CU Denver’s JPMCC Announces Second Issue of GCARD
January 17, 2017 By Hilary Till – UC Denver
The J.P. Morgan Center for Commodities at the University of Colorado Denver Business School is pleased to announce the launch of the second issue of the Global Commodities Applied Research Digest (GCARD).
/goo.gl/IWJkFG

Pin It on Pinterest

Share This