First Read

DTCC hires former regulator for trade repository compliance; Derek West will join the DTCC with responsibility for compliance at its Global Trade Repository.
By Paul Walsh – The Trade
The Depository Trust and Clearing Corporation (DTCC) has appointed Derek West as chief compliance officer for its European Global Trade Repository (GTR) business.
/goo.gl/NWuUof

**JK: He’s a Chicagoan turned Canadian turned European Global Trade Repository officer. I’m confused.

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Trump’s tweets could offer investors an opportunity; President-elect has made mining social media for market-moving sentiment essential
by: Nicole Bullock – FT
Tweets from Donald Trump about “out of control costs” for a new 747 Air Force One being built by Boeing and Lockheed Martin’s F-35 programme sent both stocks rapidly lower in December. The president-elect then started January with a tweeted threat to General Motors about one of its cars: “Make in USA or pay big border tax!”
/goo.gl/aYKPL2

***** The CBOE’s Social Media Analytics deal is looking better all the time.

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Betting firms place odds on what Trump might do next
Luke Graham – CNBC
Bookmakers in the U.K. and Ireland are placing bets on what could happen during President-elect Donald Trump’s time in the White House.
Ahead of his inauguration on January 20th, betting firms Betfair and Paddy Power have placed odds on what he might say first during his inauguration.
jlne.ws/2jk5NQh

**JK: We think polls are dumb.

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World’s largest fund manager demands cuts to executive pay and bonuses; BlackRock threatens to stir shareholder rebellions, warning UK companies they must match boardroom pay rises with that of workers
Angela Monaghan – The Guardian
The world’s largest asset manager is threatening to unleash a fresh wave of shareholder rebellions in the UK unless Britain’s largest companies rein in excessive boardroom pay.
/goo.gl/jJTkOY

**JK: It must be bad when funds are advocating for worker salaries.

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In Choosing a Job, Focus on the Fun
Ayelet Fishbach – NY Times
If you don’t like your job, you aren’t alone. In fact, two out of three working Americans do not feel engaged at work, according to a Gallup survey. And many of these people spend more of their waking time working than doing anything else.
jlne.ws/2jhbgJB

**JK: Daniel Pink would say we’re using all the wrong tools to motivate and gratify. I agree.

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JPMorgan Wants to Prove You’re Getting the Best Currency Trade
by John Detrixhe – Bloomberg
XTX joins banks in adopting transaction analysis tools; Regulators are increasing scrutiny of trade execution costs
JPMorgan Chase & Co. says it’s the first dealer to give clients sophisticated outside analysis of their currency trades, betting they will like what they see and become repeat customers.
/goo.gl/nndwRX

**JK: Don’t trust and verify.

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Sponsored Content

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Record Retention; Position Limits-Setting Authority; Overcharging Fees; Misstating Regulatory Capital
Gary DeWaal – Bridging the Week
The Commodity Futures Trading Commission proposed a new records retention rule that attempts to be technology neutral and eliminates many current requirements that are mostly vestiges of a more paper-oriented age. In addition, the House of Representatives passed a bill early in its newest term that, if enacted, would repeal the Commodity Futures Trading Commission’s controversial authority granted under Dodd-Frank to set certain position limits without an express finding of necessity and prohibit the CFTC from requesting algorithmic source code other than through subpoena. As a result, the following matters are covered in this week’s edition of Bridging the Week:
jlne.ws/2jjRRWz

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Friday’s Top Three
Last Friday’s top read stories led with CNBC’s Donald Trump’s colossal error on jobs during his press conference. Second went to Bloomberg’s piece on Bridgewater, Working for an Algorithm Might Be an Improvement. Third went to
Reuters’ piece on Citadel, titled Citadel nears SEC settlement over customer orders

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MarketsWiki Stats
92,421,029 pages viewed; 22,305 pages; 203,221 edits
MarketsWiki Statistics

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Lead Stories

Citadel Securities agrees $22.6m settlement with SEC; Trader faced charges it misled retail customers over prices it obtained
by: Nicole Bullock and Jessica Dye in New York – FT
Citadel Securities, one of the largest traders on the US equity market, has agreed to pay $22.6m with US markets regulators to settle charges it misled customers over the prices they were getting for some of their deals.
/goo.gl/5dtEtK

BSE sets initial public offering at Rs 805-806 band, may raise Rs 1243 cr; BSE’s IPO of shares next week may raise as much as Rs 1,243 crore for its investors
Business Standard
Indian stock exchange BSE’s initial public offering (IPO) of shares next week may raise as much as Rs 1,243 crore ($182 million) for its investors, based on the indicative price range for the sale announced on Monday.
/goo.gl/VzLzOl

LSE dismisses report on moving clearing to Germany; UK exchange operator hits out at study commissioned by merger partner Deutsche Börse
by: Philip Stafford and Hannah Murphy – FT
The London Stock Exchange Group has hit out at an academic report commissioned by its merger partner Deutsche Börse that highlighted the benefits of moving the LSE’s prized clearing business to Frankfurt.
/goo.gl/U9I0yj

R3 has company: new Blockchain consortium formed by 7 leading banks
LeapRate
Appears that somebody’s been following R3’s footsteps lately… a group of seven banks has agreed in principle to develop a shared platform that aims to make domestic and cross-border commerce easier for European small and medium-size (SME) businesses by harnessing the power of distributed ledger technology.
jlne.ws/2jsder3

Larry Fink calls for Europe to bolster its capital markets; ‘Excessive reliance’ on banks and insurers to fund growth hobbling region’s economy
by: James Shotter in Frankfurt and Thomas Hale in London – FT
Larry Fink has urged Europe to bolster its capital markets, warning that its “excessive reliance” on banks and insurers to fund growth was hobbling the economy and fuelling “frustration” among workers.
/goo.gl/z8fvuu

High-Speed Traders Are Taking Over Bitcoin
Bloomberg News
Cryptocurreny offers fragmented market, zero transaction fees; Risks include hacking thefts, Chinese government crackdown
Zhou Shuoji is not a bitcoin believer. He says the cryptocurrency will never replace its traditional forebears, and he calls most of its proponents fanatics.
/goo.gl/GXGivz

ECB and UK urged to share regulation of euro clearing market
Philip Stafford – FT
The UK should give more powers to the European Central Bank to oversee the City’s prized euro clearing business and head off a controversy that threatens to split the global derivatives market, according one of its main lobbying groups. In return, the ECB should consider sharing supervision of clearing houses with the UK to address any systemic risk concerns, the Financial Service Negotiation Forum (FSNForum) argues in a report published on Monday.
/goo.gl/rm5A4E

European banks downsizing role in client clearing
Joe Parsons – The Trade
A handful of major European banks are significantly reducing their exposures to client clearing of derivatives, as regulatory pressures force banks to rethink the business. According to latest FCM figures from the US Commodity Futures Trading Commission (CFTC), banks including Deutsche Bank, Barclays and Credit Suisse have dramatically reduced the amount of client segregated assets they hold for clearing.
/goo.gl/qjnxm1

**The story reinforces the JLN white paper published last October – Firms of the Future: Regulation, Technology and Finding Your Niche – http://jlne.ws/2iFTmQ3.

ADM shakes up global commodities trading business
Reuters
Archer Daniels Midland Co (ADM.N) has become the latest global agricultural trader to undergo senior management changes as the sector grapples with a grain glut that is depressing prices. The chief executive at the U.S.-based firm’s trading arm in Asia, Frederik Groth, has left the company, two traders and a company source said on Friday.
jlne.ws/2jhgSUo

Pound Drops Below $1.20 as May Reported to Seek Hard Brexit
David Goodman – Bloomberg
The pound fell against the dollar, dropping below $1.20 for the first time since October’s flash crash, after reports said U.K. Prime Minister Theresa May will signal plans to quit the European Union’s single market to regain control of Britain’s borders and laws.
/goo.gl/5iIxn2

Asia-Pacific’s energy change
Shamshad Akhtar – Asia & The Pacific Policy Society
The future of the Asia-Pacific’s energy markets rests on achieving better regional cooperation and integration, and new initiatives are kicking off to speed up the transition to a more sustainable energy mix, Shamshad Akhtar writes. The Asia-Pacific region is at a turning point in its energy trajectory. The energy solutions that have fuelled growth in the region over the past few decades are no longer compatible with the sustainable development aspirations of our nations and their people.
/goo.gl/h1aoam

Brexit

If the City vs Brussels is like a game of Jenga, it’s possible both sides could lose
The Guardian
What should Theresa May, when she speaks on Tuesday about her plans for the UK’s exit from the European Union – say about the City and financial services? As an opening pitch, she should take her cue from the governor of the Bank of England and remind the EU 27 that the UK – if only in this single commercial field – holds a strong negotiating hand.
/goo.gl/EJy35K

EU negotiator wants ‘special’ deal over access to City post-Brexit
Jennifer Rankin – The Guardian
The EU’s chief Brexit negotiator has shown the first signs of backing away from his hardline, no compromise approach after admitting he wants a deal with Britain that will guarantee the other 27 member states will continue to have easy access to the City.
jlne.ws/2jhoO85

Irish Minister Sees Wave of Brexit Relocations by Mid-2017
by David Tweed – Bloomberg
‘Prudence dictates’ companies take decisions, Murphy says; Ireland’s financial services minister speaks in interview
The prospect of losing access to the European Union’s single market should prompt a wave of U.K.-based financial services companies to announce full or partial relocations to Ireland by mid-2017, said Ireland’s minister in charge of finance services.

Exchanges, OTC and Clearing

How Grain Futures Contracts Revolutionized Finance
Debbie Carlson – OpenMarkets, CME Group
When the corn, wheat and oats futures contracts debuted in 1877, little did the 12 men who founded the Chicago Board of Trade realize they were creating a vehicle that would result in trillions of dollars traded globally every year. Although the CBOT was founded in 1848, it still took nearly 30 years to develop standardized instruments for selling grain with delivery at some point in the future at a price determined today, says Fred Seamon, senior director, grains and oilseeds for CME Group.
jlne.ws/2jgbr81

****SD: Missed this last week — the second in the CME’s series on important developments in futures markets. The first piece was Eurodollar Futures: A Key Barometer of Global Money Flows.

Europe’s EEX bourse says will build on 2016 trading gains this year
Business Recorder
Trading volumes of electricity, gas and carbon forwards on European energy bourse EEX surged in 2016 and the exchange said it will keep up the momentum this year.
/goo.gl/Y4DzXh

BME overhauls its activities linked to technology, regulation and innovation
BME
BME today announced it will overhaul the resources, departments and companies within the Business Areas of Market Data and IT&Consulting by bringing together – based on their nature – the different activities of the company linked to value-added services in the areas of technology, regulation and innovation. The purpose of these changes is to improve efficiency and push forward the diversification of the Group.
/goo.gl/GQWjeF

LISTED ITALIAN COMPANIES MEET WITH INVESTORS IN LONDON; 18 listed companies from 8 sectors represented; Total market capitalization of EUR60 billion; More than 400 meetings between companies and investors arranged
London Stock Exchange Group
Borsa Italiana’s annual ‘Italian Equity Roadshow’ takes place in London this week. Over the next two days, companies listed on our Italian markets will meet with UK and international investors at the headquarters of London Stock Exchange Group.
/goo.gl/P8G81D

BNP Paribas Easy Low Carbon 100 Europe launched UCITS ETF on Xetra
ETF offers access to European companies with increased environmental awareness
Deutsche Boerse
A new equity index fund of issuer BNP Paribas Easy has been tradable on Xetra and Börse Frankfurt since Tuesday.
/goo.gl/hJrRjS

FX Futures: Extension of trading hours – update of legal documentation
Eurex
This circular is a reminder to all Trading Participants that it is planned to launch 23-hour trading for FX Futures listed at Eurex Deutschland and Eurex Zürich (collectively the Eurex Exchanges) on 27 February 2017.
/goo.gl/x83jBY

Politics

Exclusive: The Trump Administration May Evict the Press from the White House
Peter Boyer – Esquire
The upset to the existing order caused by the presidential election has been acutely felt by no one, perhaps, so much as it has by the national press. At Donald Trump’s press conference on Wednesday, reporters found themselves not only subject to a scolding (“Fake news!” “Disgraceful!”) but also awakened to the strong suggestion that, at least in tactical terms, the showdown had been won by the president-elect.
/goo.gl/CPbR5t

Davos can be insufferable but it’s an effective agent of change
Philip Aldrick – The Australian
The World Economic Forum is so achingly earnest and desperately right-on that it’s hard not to see it as a kind of sanctimonious lamprey latching on to the political zeitgeist. The Swiss-based foundation’s po-faced, irony-free mission is “improving the state of the world”, no less. Presumably that includes rolling back postmodern cynicism, too.
/goo.gl/jLzHSb

Does Trump’s rise mark the end of Davos Man’s influence?
Martin Wolf – FT
Does Donald Trump’s ascent to power in the US mark an end to the influence of Davos Man? This is a term invented by Samuel Huntington, the late political scientist, himself a participant at the annual meetings of the World Economic Forum in Davos, for a class of people he despised.
/goo.gl/ZSYyty

Hedge fund founder Scaramucci to join Trump’s White House as liaison
Jonathan Allen – Reuters
Anthony Scaramucci, a hedge fund founder who was a fundraiser in Donald Trump’s election campaign, will join the president-elect’s White House staff as an advisor and public liaison to government agencies and businesses, he said on Friday.
jlne.ws/2jh9AzI

Fink Signals Support for Merkel Policies in German Election Year
Steven Arons – Bloomberg
One of Wall Street’s most influential figures, BlackRock Inc.’s Larry Fink, signaled his support for Angela Merkel as Germany’s chancellor prepares to campaign for re-election this fall, saying she has provided “moral leadership” to the world.
/goo.gl/MMV2n1

Elizabeth Warren to Obama: Fire SEC Chief Mary Jo White
Andrew Ackerman – WSJ
Sen. Elizabeth Warren is calling on President Barack Obama to dismiss Mary Jo White as chairman of the Securities and Exchange Commission, the latest and strongest push by the Massachusetts Democrat to criticize the top markets cop and to influence financial policy-making here.
/goo.gl/WwdnEn

Investing and Trading

Mark Shore on Benzinga PreMarket Prep Broadcast Dec 28 2016
Mark Shore, Chief Research Officer of Shore Capital Research LLC and Adjunct Professor at DePaul University in Chicago was a special guest on Benzinga’s PreMarket Prep broadcast, (http://premarket.benzinga.com/pre-market-show/) the morning of December 28, 2016 with hosts Joel Elconin and Dennis Dick. ?The interview starts about 39 minutes into the broadcast on youtube (above) or 34 mins on soundcloud
jlne.ws/2iFEocR

Greenpeace challenges HSBC on financing for palm oil companies; Claims bank funds groups alleged to be behind deforestation
by: Emiko Terazono and Martin Arnold – FT
HSBC has been criticised for supporting environmental destruction by providing financing to palm oil companies alleged to have been behind deforestation in key production regions.
/goo.gl/Mb9kp3

Trump Era, Brexit May Spur Year of Greater Currency Volatility
by Vassilis Karamanis – Bloomberg
Donald Trump is making volatility great again. If the reaction to the U.S. President-elect’s first press conference is anything to go by, we are in for big swings in currency markets this year.
/goo.gl/Gh2M7V

You Probably Don’t Know Enough About Marijuana to Pass This Quiz (or Invest in Pot)
Todd Campbell, Motley Fool via Nasdaq
Marijuana legalization has made the marijuana industry incredibly alluring to investors. The marijuana market is expected to surge to $21 billion by 2020, and that’s got many people wondering which marijuana stocks could benefit most.
/goo.gl/04p6Qh

Trump’s Silence on Yen Is ‘Amazing,’ Former Japan FX Head Says
Kyoko Shimodoi and Connor Cislo – Bloomberg
Donald Trump has repeatedly made waves with emphatic tweets and striking statements, but Japan’s former currency chief is more surprised about what the president-elect isn’t talking about: the yen.
/goo.gl/WjMSkw

JPM’s Frenkel: Markets Disconnected From Real Economy
Bloomberg
Jacob Frenkel, chairman at JPMorgan International, discusses the disconnect of financial markets and the real economy, the need for the normalization of rates by the Federal Reserve, and for the United States to lead the global economy forward. He speaks from the World Economic Forum in Davos, Switzerland on “Bloomberg Surveillance.”
/goo.gl/MGZr15

Institutions

Expect Hedge-Fund Returns to Be More Honda Than Rolls Royce, Point72 Says
Nishant Kumar – Bloomberg
Hedge funds will have to adapt to a more challenging market as investors respond to disappointing returns by demanding their fees back or pulling out altogether, according to Matthew Granade, chief market intelligence officer of Point72 Asset Management.
/goo.gl/ZCyKw9

SEB CEO steps down to join asset manager
Jonathan Watkins – The Trade
SEB is set to lose its chief executive officer and president Annika Falkengren, who will step down after 30 years at the Nordic bank. Falkengren is set to join Swiss wealth and asset manager firm Lombard Odier Group as a managing partner. She will leave SEB at the latest by July 2017.
/goo.gl/AEGmQn

The Bond Market Isn’t Dead Yet for This JPMorgan Fund
Lilian Karunungan – Bloomberg
Don’t count your nails yet for the bond market’s coffin.
/goo.gl/oIj7pK

U.S. banks to stay in fashion as earnings kick off
Sinead Carew and Lewis Krauskopf – Reuters
U.S. bank stocks will stay in favor with investors as long as earnings reports in the coming week show an improving profit outlook while investors wait to see if U.S. President-elect Donald Trump lives up to his campaign promises.
/goo.gl/yHlz4z

Named: the best and worst funds of 2016
Attracta Mooney – Financial Times
Funds run by BlackRock, Odey and Lyxor have topped a table of 2016’s worst-performing investments, in a year when active stockpickers struggled to cope with the impact of political turmoil and market volatility.
/goo.gl/51Kevx

BlackRock profit beats as investors race to low-cost funds
Trevor Hunnicutt – Reuters
BlackRock Inc, the world’s biggest asset manager, reported better-than-expected quarterly profits on Friday as it clamped down on expenses and investors stormed into lower-cost funds to take advantage of a year-end rally.
jlne.ws/2jh9FU4

Vanguard attracts record cash for fifth year running
Chris Flood – Financial Times
Vanguard broke its own record as the world’s fastest-growing asset manager for a fifth successive year in 2016 with growing numbers of fee-conscious investors attracted to its low-cost funds.
jlne.ws/2jhbAbj

JP Morgan to join Goldman in opening up risk system; Athena platform – built for JP Morgan’s traders – could be available to clients in 2018
Robert Mackenzie Smith – Risk.net
JP Morgan is planning to let clients use its front-office risk system, according to three sources familiar with the project – the second big dealer to look at commercialising technology that was originally built to give the bank’s traders an edge. Goldman Sachs made its front-office system, SecDB, available to clients last year. Both banks can look to the example of BlackRock, which made $529 million in 2015 by licensing its Aladdin platform to other asset managers, according to the firm’s annual…
/goo.gl/iAdMYA

Citi appoints former UK foreign minister Hague as senior adviser
By Anjuli Davies – Reuters
Citigroup (C.N) has hired former British foreign minister William Hague to be a senior adviser to the Wall Street bank, as Britain prepares to negotiate its exit from the European Union.
/goo.gl/xVL1KB

Morgan Stanley Posts Biggest Fourth-Quarter Profit Since Crisis; A flurry of post-election stock trading boded well for Morgan Stanley, Wall Street’s leading equities-trading house
By LIZ HOFFMAN – WSJ
Morgan Stanley said its quarterly earnings climbed 83% and beat analyst expectations as the bank logged its strongest fourth-quarter profit since the financial crisis.
/goo.gl/655m9K

Morgan Stanley Profit Rises on Surge in Bond-Trading Revenue
by Hugh Son – Bloomberg
Morgan Stanley reported an 83 percent increase in fourth-quarter profit as fixed-income trading revenue surged more than analysts estimated.
/goo.gl/OtyyRl

Fintech

Facebook to base first business incubator in France’s Station F; Social network backs Paris as tech hub with space in world’s largest start-up campus
by: Madhumita Murgia and Harriet Agnew in Paris – FT
Facebook is throwing its weight behind French tech by choosing Paris to launch its first official start-up incubator, as the battle heats up among European capitals to lure the best tech companies following the Brexit vote.
/goo.gl/Y6ove9

Report: Blockchain Could Become an $8 Billion Global Industry By 2024
Coindesk.com
The next eight years could see the blockchain marketplace grow to almost $8bn in value, according to a new research report.
The report, prepared by Grand View Research, points to a combination of industry investments, enterprise interest in blockchain solutions and growing use of digital currencies among consumers as the lead driver of expected growth.
jlne.ws/2iFNSVF

AI Pioneer Wants to Build the Renaissance Machine of the Future
Alex Webb – Bloomberg
Juergen Schmidhuber taught a computer to park a car. He’s also showing that same machine how to trade stocks and detect flaws in steel production. Unrelated as these tasks may appear, Schmidhuber thinks a seemingly random training regimen is key to creating artificial intelligence that can solve any problem.
/goo.gl/MGJPtr

Regulation

Visium Trader’s Guilty Conscience Led Him to Federal Authorities
by Christian Berthelsen -Bloomberg
Jason Thorell recalls growing unease with mismarking scheme; Star witness concludes testimony in trial of firm executive
The weight on bond trader Jason Thorell’s conscience kept getting heavier. It started in mid-2011 when Thorell’s supervisor at Visium Asset Management LP called him into a private meeting. He asked Thorell to begin using his own Visium e-mail account to submit monthly asset valuations that the boss had prepared — and to keep it a secret.
/goo.gl/gpZ9yY

Moody’s pays $864 million to U.S., states over pre-crisis ratings
Karen Freifeld – Reuters
Moody’s Corp has agreed to pay nearly $864 million to settle with U.S. federal and state authorities over its ratings of risky mortgage securities in the run-up to the 2008 financial crisis, the U.S. Department of Justice said on Friday.
/goo.gl/uBR3kQ

How a Financial Council Republicans Loathe Could Work in Their Favor
Ryan Tracy- WSJ
Republicans have for years trashed a powerful regulatory committee born after the financial crisis as too political, opaque, and overreaching. But once a GOP administration takes control of the panel, they may find its broad remit useful in quickly scaling back Obama-era policies.
/goo.gl/akZ9Y8

U.S. top court to weigh time limits on SEC recovery of illegal profits
Sarah N. Lynch – Reuters
The U.S. Supreme Court agreed on Friday to hear a case involving a New Mexico-based investment adviser that has the potential to limit the power of the U.S. Securities and Exchange Commission to recover illegal profits reaped by fraud or other wrongdoing.
/goo.gl/Vy2fMB

Statement of Chairman Timothy Massad on Proposed Amendments to the Swap Data Access Provisions
CFTC
The increased reporting of data on swaps transactions is an important reform of the derivatives markets agreed to by the G20 leaders in 2009. Today, thanks to this reporting, regulators across the globe are in a better position to assess exposures and risks related to this market. Because of the global nature of the market, it is critical for regulators to be able to share information, subject to appropriate confidentiality and other protections.
/goo.gl/4yazeP

Morgan Stanley to pay $13 million for overbilling clients: SEC
Sarah N. Lynch – Reuters
Morgan Stanley will pay $13 million to settle civil charges, after it overbilled some of its wealth management clients because of coding and other billing system errors, U.S. regulators said Friday
jlne.ws/2jh8MuK

TD Bank to settle over possible violations of Iran, Cuba sanctions rules: U.S. Treasury
Reuters
Toronto-Dominion Bank has agreed to pay $516,105 to settle a potential civil liability for apparent violations of U.S. regulations restricting the conduct of financial transactions with Cuba and Iran, the U.S. Treasury Department said on Friday.
jlne.ws/2jhquhH

Lies or banter? Ex-Jefferies trader’s fate lies with jury
Jonathan Stempel – Reuters
The fate of a former Jefferies Group bond trader being tried a second time for defrauding clients now lies with a federal jury, after prosecutors and the defense battled over whether he told his customers “lies” or merely employed sales “banter” they knew to shrug off.
jlne.ws/2jhkGER

SEBI Notifies Rules To Boost Foreign Investment In Stock Exchanges
BloombergQuint
Regulator Securities & Exchange Board of India (SEBI) on Friday notified rules allowing foreign investors to own up to 15 percent stake in an exchange, a move that is expected to help attract more overseas funds.
/goo.gl/xkPeqv

‘Investment scheme has loopholes’
Taipei Times
A recently announced small investment scheme to make expensive stocks and other securities more accessible to retail investors might have loopholes, brokerages said.
/goo.gl/jCVaZa

ESMA: INTERACTING WITH YOU AS A STAKEHOLDER
ESMA
As an open and transparent EU Authority, and in order to successfully achieve its mission, ESMA welcomes and encourages you to make your views and opinions known.
/goo.gl/AHXo0P

ESMA ISSUES BRIEFING ON TRANSACTION REPORTING REQUIREMENTS UNDER MIFID II
ESMA
Toward the end of 2016, ESMA published guidelines for transaction reporting under the Markets in Financial Instruments Directive (MiFID II) and Regulation(MiFIR). Additionally, ESMA released technical requirements and templates further detailing the relevant reporting requirements under MIFID II and MIFIR.
/goo.gl/4l1SJX

ESMA ISSUES OPINIONS ON SWEDISH PENSION SCHEMES TO BE EXEMPT FROM CENTRAL CLEARING UNDER EMIR
ESMA
The European Securities and Markets Authority (ESMA) has today issued two opinions regarding the exemption of Swedish pension schemes from the obligation to centrally clear OTC derivative contracts under the European Market Infrastructure Regulation (EMIR).
/goo.gl/tES4WG

Regions

‘Time to tap China’s explosive carbon market’
Kim Yoon-mi – Korea Herald
With global pressure mounting on South Korea to reduce greenhouse gas emissions, it is now time for Korean companies to tap China’s emissions trading market, which will be 20 times bigger than the Korean one, a climate change expert said.
/goo.gl/CzwsDn

Private-Equity Funds Evolve From ‘Vultures’ Into Allies in Japan; KKR’s $1.3 billion purchase of Hitachi unit is latest deal in the country
By ATSUKO FUKASE – WSJ
Many Japanese executives used to refuse to even meet foreign private-equity funds. Now they are gradually opening the door as conglomerates here see the funds once known as “vultures” as partners for growth.
/goo.gl/uPJZq4

China Said to Intervene in Stock Market as Xi Attends Davos
Bloomberg News
Shares climbed Tuesday after paring losses Monday afternoon; Xi is bringing China’s biggest-ever delegation to WEF event
China is taking steps to support its stock market this week, according to people familiar with the matter, as President Xi Jinping’s appearance at the World Economic Forum in Davos puts Asia’s largest economy in the global spotlight.
/goo.gl/sZ3J5z

Miscellaneous

Caveat Investor? The “Fiduciary Rule” and Unintended Consequences
AQR
The Department of Labor’s Fiduciary Rule, which is applicable to retirement plans subject to ERISA such as 401(k) plans and to certain other retirement plans such as IRAs, is set to go into effect in April 2017. What the rule does is extend a fiduciary duty or standard to a broad set of investment advisors (many, particularly at broker-dealers, who were previously exempt) who provide recommendations to such plans. A “fiduciary duty” is the highest standard of care recognized in American law. Among other things it means that you must act solely in the best interest of the client at all times.1
/goo.gl/lByryC

How do jewellers capture every last particle of gold dust?
Financial Times
In a basement on London’s Hatton Garden, a small production team is heating a furnace to 2,000C — a temperature that will obliterate most materials placed within it. Each day, here at precious metals refiner Mastermelt, the furnace is fed a diet of objects collected from jewellers’ workshops — full bags from vacuum cleaners, used wet wipes, blunted sandpaper and even old carpets — in the hope that when the ashes are processed, thousands of pounds’ worth of gold, platinum and more will remain.
/goo.gl/DFTfxZ

Europe Power Prices Jump as Cold Snap Grips Paris to Berlin
by Weixin Zha – Bloomberg
European electricity prices soared to the highest in almost a decade as an abnormal cold snap strained supplies tightened by power plant outages and worker strikes.
/goo.gl/DD4qrh

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