Investor Christopher Hohn’s annual pay falls to $274m

Dec 10, 2018

First Read

Hits & Takes
JLN Staff

John Lothian News has launched a new updated version of the johnlothiannews website. Please take a look and let us know what you think and if you see any issues with the site.~JJL

Jessica Titlebaum Darmoni gave birth to a beautiful little girl, Rachelfaye (Rae) Or Darmoni, at 1:20 am on 12/8/18. Mother and baby are both doing well.~JJL

Ulf Axman is now with LSEG Technology. He was previously at Cinnober.~JJL

My Boy Scout Troop and Exploring Club spent Saturday at the Harley Davidson Museum in Milwaukee, with some Scouts earning the engineering merit badge while they were there. The museum has Elvis Presley’s Harley, which they proved because the King took out a loan to pay for it and the registration number on the loan matches the motorbike they had. It was reported Elvis would only ride it at night, because during the day people would stop him and ask for autographs.~JJL

MarketsWiki is on a pace for about 21 million pageviews during 2018, our about 1.8 million per month.~JJL

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The Spread – A “Complete Guide” – 12/7
JohnLothianNews.com

JLN discovered a copy of “The Complete Guide to Options Selling,” authored by the guys behind the now defunct “hedge fund” OptionSellers. It’s interesting to read in hindsight.

Watch the video and see the stories referenced here »

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The Big Interview: Jos Dijsselhof; After departing Euronext to talk up the mantle of chief executive of SIX at the start of 2018, Jos Djisselhof talks to The TRADE about how the first year of his stewardship of SIX has played out, reorganising the business and why the SIX Digital Exchange could be a game-changer for the industry.
John Brazier – The Trade
What have been your primary objectives since joining SIX and what progress has been made towards achieving those targets?
bit.ly/2G4LNQC

***** Will SIX in 19 be better than 18?~JJL

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What Wall Street Really Thinks About Avoiding Women in the #MeToo Era; “Do not be a complete idiot.”
Gillian Tan and Katia Porzecanski – Bloomberg
Up and down Wall Street, men are struggling in the MeToo era, with some deciding the safest course is to just steer clear of women. A Bloomberg News article on the phenomenon prompted an outpouring of reactions, pro and con. Shock, approval, bemusement, anger, sympathy — the comments captured the range. Here’s a sampling, edited for length and clarity:
/bloom.bg/2GafDDh

***** Being a complete idiot takes a lot of work.~JJL

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Smarter than Counterparties; Manipulation; Information Systems Security Programs
Gary DeWaal – Bridging the Week
A federal judge said that it is not a violation of federal law for a trading firm and its chief executive officer to be smarter than their counterparties in ruling against the Commodity Futures Trading Commission in an enforcement action alleging manipulation and attempted manipulation. Separately, the National Futures Association proposed amendments to its guidance to members regarding the contents of their information systems security programs. As a result, the following matters are covered in this week’s edition of Bridging the Week:
bit.ly/2Ga5ree

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Friday’s Top Three
Our top read stories on Friday were led by Forbes’ 11 Women Who Are Changing The Face Of Finance. Second and third were on the UK regulator’s move to restrict binary options and contracts for difference, in the FT’s piece Permanent measures to put hole in CFD bucket shops. Third was the FCA release [http://bit.ly/2EeBc3g|FCA proposes permanent measures for retail CFDs and binary options]].

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CryptoMarketsWiki, our archive of the cryptocurrency and blockchain world, is going strong and keeping pace as this area of finance grows and evolves.

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Lead Stories

Investor Christopher Hohn’s annual pay falls to $274m; Head of hedge fund TCI remains one of the UK’s highest-paid business people
Nicholas Megaw in London – FT
Activist investor Christopher Hohn cut his pay by almost a quarter last year despite a sharp increase in profits at his hedge fund TCI but remained one of the highest-paid business people in the UK.
/on.ft.com/2GlDvUT

Investors managing $32 trillion in assets call for action on climate change
Simon Jessop – Reuters
Global investors managing $32 trillion in assets have called on governments to accelerate steps to combat climate change, as policymakers meet for talks at a United Nations conference in Poland.
/reut.rs/2G9Tq8w

May to Delay Key Vote on Brexit Deal to Avoid Huge Defeat, Source Says
Tim Ross – Bloomberg
U.K. Prime Minister Theresa May is calling off a crucial vote in Parliament on whether to approve her Brexit deal, according to a person familiar with the situation.
/bloom.bg/2Gb89QJ

Madoff’s Victims Are Close to Getting Their $19 Billion Back
Erik Larson and Christopher Cannon – Bloomberg
A decade after Bernard Madoff was arrested for running the world’s biggest Ponzi scheme, the bitter fight to recoup investors’ lost billions has astounded experts and victims alike.
/bloom.bg/2GbbJKt

ICE Clear Credit gains clearing house status in Singapore; ICE Clear Credit is now a recognised clearing house in the country after gaining approval from the Monetary Authority of Singapore.
Hayley McDowell – The Trade
Intercontinental Exchange’s (ICE) US-based credit default swaps (CDS) clearing house has been granted regulatory approval to operate in Singapore.
bit.ly/2ruWZfu

Value of City watchdog fines touches near-record lows for 2018; Fines levied over 2018 stand at just £27.6m so far, compared with £229.5m last year
Caroline Binham- FT
Fines meted out by the UK’s Financial Conduct Authority touched near-record lows, plummeting 88 per cent on last year’s total.
/on.ft.com/2GbJg7e

TP ICAP rules out big deals to concentrate on integration; New chief admits that interdealer broker needs to complete project as soon as possible
Philip Stafford – FT
The new chief executive of TP ICAP has ruled out making big deals for the coming year, preserving cash in favour of finishing off a delayed integration of its £1.3bn purchase of rival ICAP two years ago.
/on.ft.com/2G9hcBA

Opec is not the power broker it once was; The old methods of controlling prices by restricting production no longer work
Nick Butler – FT
Cartels can be very powerful, but they usually contain the seeds of their own destruction — often the result of market power being pushed so far that it invites a countervailing response. That is Opec’s history in a sentence.
/on.ft.com/2G9SFfG

China poised for first time to attract more venture capital than US for early-stage start-ups in 2018
Georgina Lee – South China Morning Post
2018 is likely to go down as the “Year of the Red Unicorns,” when for the first time China beats the US in attracting the most global venture capital for early-stage start-ups, private equity data provider Preqin said.
bit.ly/2GagIej

The Markets Have Become Slaves to False Narratives; The most common explanations for market volatility don’t exactly add up. Also, currency wars, Macron and CAPE musings.
John Authers – Bloomberg
Narrative fallacy. Markets don’t run on numbers so much as narratives. As humans, we like to think in terms of stories. Investment cases are generally made as stories. And people such as myself are expected to take disparate and complicated market data and turn them into a comprehensible and comforting story.
/bloom.bg/2G5WlPl

Societe Generale builds clearing hub in Paris ahead of Brexit
Inti Landauro and Huw Jones – Reuters
Societe Generale is opening a Paris hub this month to clear derivatives in the European Union in the latest sign of euro business moving from Britain to the bloc ahead of Brexit.
/reut.rs/2Gba8Et

Brexit anxiety mounts for UK clearing houses and EU banks; LCH among those looking at issuing formal notices to close out derivatives positions
Philip Stafford in London and Jim Brunsden- FT
European banks face a crucial two-week period before finding out if they will receive formal notice to begin closing £45tn of derivatives positions in UK clearing houses, further raising their anxiety about access to London’s capital markets post-Brexit.
/on.ft.com/2G76oE8

India Central Bank Head Quits Amid Rift With Government
Vrishti Beniwal and Anirban Nag – Bloomberg
Patel cites personal reasons for his decision to step down; Government sought greater supervision of RBI’s functioning
Urjit Patel resigned as governor of India’s central bank amid growing differences with the government on addressing issues ranging from problems at the country’s lenders to utilization of capital reserves.
/bloom.bg/2GlBRTd

tastytrade Appoints Former CME Group Marketing Vet, Michelle Moore as CMO
Chicago Tribune
Tastytrade, Inc., the award-winning, innovative financial media company and parent to financial subsidiaries, today announced hiring Michelle Moore as chief marketing officer of tastytrade to further the company’s positioning as a fierce advocate for self-directed investors. This is a newly created position and a first for tastytrade
/trib.in/2rrhXM4

Exchanges, OTC and Clearing

ICE Clear Credit Receives Recognised Clearing House Status from the Monetary Authority of Singapore
iCE
Intercontinental Exchange, Inc. (NYSE:ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, announced that ICE Clear Credit, ICE’s U.S.-based credit default swap (CDS) clearing house, has been granted Recognised Clearing House status from the Monetary Authority of Singapore with effect from December 7, 2018.
bit.ly/2rtzqU5

Cboe Europe Defends Periodic Auctions
Shanny Basar – MarketsMedia
Mark Hemsley, president of Cboe Europe, said volumes have grown in periodic auctions because trades have lower market impact as European regulators have expressed concerns that they are being used to circumvent the new double volume caps.
/jlne.ws/2Ehzkax

Euronext plans to shift Irish equities settlement out of London
Philip Stafford – FT
Euronext, the European exchanges operator, is planning to transfer the EUR182bn of Irish equity and funds securities assets held in London to the European Union over the next two years.
/on.ft.com/2G9gioG

Switzerland plays for time in stock market standoff with EU
The Start Online
In its game of brinkmanship with the European Union (EU), Switzerland is playing for time. Bern didn’t say yes to a hotly contested agreement with Brussels on Friday, taking the gamble that its equity market won’t get cut off from EU investors. The government didn’t say no either, announcing a national debate on the draft of the treaty instead.
bit.ly/2GbIveo

The Eurex Euro-Bund / Euro-Bobl / Euro-Schatz Butterfly – What’s Next?
Eurex
The Eurex Euro-Bund / Euro-Bobl / Euro-Schatz Butterly is probably the most monitored Relative Value trade in European Fixed Income Derivatives and given the depth of liquidity in Eurex’s German Benchmark Government Bond Futures with the benefit of Eurex Clearing’s innovative Prisma portfolio margining system generating significant margin savings, the butterfly offers a very efficient and leveraged means to generate alpha by trading the shape of the German Government Bond Yield Curve.
bit.ly/2rq3gsK

HKEX Joint COO, Head of Markets Roger Lee to Retire
HKEX
Hong Kong Exchanges and Clearing Limited (HKEX) today (Monday) announced that its Joint Chief Operating Officer and Head of Markets, Roger Lee, will retire at the end of December after a long and distinguished career with the company.
bit.ly/2rtvId6

Consensus Reached on Inclusion of WVR Companies in Southbound Trading of Stock Connect
HKEX
To further enhance the mutual market access programme between Mainland China and Hong Kong and promote the coordinated development of the Mainland and Hong Kong capital markets, the Shanghai Stock Exchange, Shenzhen Stock Exchange and The Stock Exchange of Hong Kong jointly announce that they have reached a consensus on the detailed arrangement for the inclusion of companies with weighted voting rights in Southbound Trading of Stock Connect.
bit.ly/2rwdxni

Moscow Exchange launches ETF on shares of global technology companies
MOEX
On 10 December 2018, the Technology 100 ETF, a Russian exchange-traded fund managed by Alfa Capital, began trading on Moscow Exchange under the ticker “AKNX”.
bit.ly/2rucDHZ

Fintech

Experts Predict the Five Big Fintech Trends of 2019
Julie Verhage and Jennifer Surane – Bloomberg
In 2018, a number of financial technology startups came into their own. Free trading platform Robinhood Markets Inc., for example, added new services and billions to its valuation. And Stripe Inc. was valued by investors at a price higher than the market caps of 249 of the companies on the S&P 500 Index. But the industry is also maturing and consolidating, and larger industry players, hoping not to be left behind by the new era of digital finance, are stepping up their hunt for acquisitions.
/bloom.bg/2G7aufu

Mobius Capital Partners adopts Bloomberg’s workflow tools; Mobius Capital Partners is using Bloomberg’s AIM as its OMS, alongside portfolio and risk analytics.
Hayley McDowell – The Trade
Emerging and frontier markets asset manager Mobius Capital Partners has implemented several of Bloomberg’s buy-side services to support its investment workflow.
bit.ly/2rq29t4

Toss is Korea’s first fintech unicorn, valued at over $1.2 billion
Devjyot Ghoshal – Quartz
It’s taken a while, but South Korea now has a fintech unicorn.
Viva Republica, the parent of the financial services platform Toss, announced on Monday (Dec. 10) that it has closed an $80 million funding round that values the firm at $1.2 billion.
bit.ly/2G9WNMI

3 Reasons Millennials Should Enter Into Digital Finance and FinTech
Gerald Fenech – Forbes
Whether it’s the fear of missing out (FOMO) or just simply not wanting to be left behind, young investors and businesses do not want to be left behind as we begin to see our traditional world of finance evolve and download itself into the 21st century.
bit.ly/2ruLZOX

New York fintech plans to open second office, add 50 jobs in Baltimore
Morgan Eichensehr – Baltimore Business Journal
A financial technology startup from New York is looking to Baltimore to set up its second headquarters. Paygevity Inc., a company led by a team of Wall Street veterans and tech commercialization specialists, is searching for a city office to call its second home. Louis A. Young, the company’s president and a Baltimore native, said Paygevity is planning to build up its software development team here, and hire up to 50 employees to staff the new headquarters.
bit.ly/2C28HnN

Feedzai fighting financial crime with Risk Ledger
David Penn – Fintech Futures
Using machine learning and federated data from its customer base and third-party vendors, Feedzai has released its latest financial crime prevention solution, Risk Ledger, reports David Penn at Finovate.
bit.ly/2B4I145

Cryptocurrencies

Bitcoin Mining Guzzles Energy—and Its Carbon Footprint Just Keeps Growing
Eric Holthaus – Wired
If you’re like me, you’ve probably been ignoring the bitcoin phenomenon for years — because it seemed too complex, far-fetched, or maybe even too libertarian. But if you have any interest in a future where the world moves beyond fossil fuels, you and I should both start paying attention now.
bit.ly/2G9mJYG

Coinbase continues to explore support for new digital assets
Coinbase
We are continuing to explore the addition of new assets, and will be working with local banks and regulators to add them in as many jurisdictions as possible.
bit.ly/2roD81j

Bitcoin slides to 15-month low; Cryptocurrency was nearing $3,000 mark
Camilla Hodgson – FT
Bitcoin slumped to a new year-low on Friday, as US trading overnight pushed the cryptocurrency closer to the $3,000 mark.
/on.ft.com/2G9rCRK

Here’s what makes this crypto bear market different
Aaron Hankin – MarketWatch
Crypto early adopters regularly assure market watchers that everything is going to be ok. Why? Because they have seen it all before and this is not the first bitcoin bear market. But one hedge fund partner believes the evangelists fail to note one key difference: Perception risk.
/on.mktw.net/2G7WFgH

A Bitcoin Exchange Boss Thinks Jeff Bezos Will Trigger The Next Bull Run
Billy Bambrough – Forbes
Bitcoin and cryptocurrency investors have battened down the hatches for what could be a long crypto winter, the name given to the bitcoin bear market that has mauled prices over the recent weeks.
bit.ly/2G9nocT

Ohio Accelerators to Pump Over $100 Million into Blockchain Startups
Yogita Khatri – Coindesk
Two startup accelerators in the U.S. state of Ohio are reportedly to invest more than $100 million into blockchain firms.
bit.ly/2GafXlt

Crypto Diehards Say Slump Is `Bump in the Road’ Before Growth
Alastair Marsh – Bloomberg
The future of cryptocurrencies will entail greater regulation, more involvement by large institutions, lower volatility and greater integration with traditional assets.
/bloom.bg/2G6N61m

Japanese Lawmaker Proposes 4 Changes to Ease Crypto Tax Burden
Yogita Khatri – Coindesk
A Japanese lawmaker has proposed a number of changes to the current taxation regime in order to ease the burden for cryptocurrency users and encourage adoption of cryptocurrencies in the country.
bit.ly/2ruPLYU

Venezuela to Sell Oil for Petro Cryptocurrency in 2019, Says Maduro
Yogita Khatari – Coindesk
Venezuela’s President Maduro has said the nation will sidestep the U.S. dollar and phase in use of its controversial petro token for oil sales starting next year. According to a report from state-run media network TeleSUR on Thursday, Venezuela’s President Maduro said that the move is aimed at minimizing the dollar’s dominance in the industry and diversifying the global market.
bit.ly/2QjXjwa

Politics

Trump Flies Solo as Perils to Presidency Mount
Kathleen Hunter – Bloomberg
The tumult of personnel turnover that’s come to characterize Donald Trump’s administration is suddenly posing a major problem — just as his presidency enters an especially risky phase.
/bloom.bg/2Ga1mXs

Pass or Fail, Brexit Has Destroyed Britain’s Brilliant Global Strategy; For 70 years, the U.K. leveraged relationships with the U.S. and Europe to punch above its weight.
Hal Brands – Bloomberg
With the decisive parliamentary “meaningful vote” scheduled for Tuesday, this week is the moment of truth for the Brexit deal negotiated by Prime Minister Theresa May. The fate of that agreement will obviously have momentous implications for the future of the U.K. Yet whether May’s deal survives or not, the events of the past two years have already signaled a larger rupture in London’s relationship with the world.
/bloom.bg/2Gigjqy

With Bloomberg’s and Zucker’s campaign dreams, the media-to-politics revolving door spins faster
Margaret Sullivan – The Washington Post
When former Washington Post executive editor Leonard Downie Jr. mentioned in an online chat in 2004 that he no longer voted, some observers rolled their eyes. Wasn’t this taking impartiality a little too far? But Downie had his reasons. He decided to stop voting, he said, when he became “the ultimate gatekeeper” for what the newspaper published, a job he held from 1991 to 2008.
/wapo.st/2EaZomY

France tells Trump to stop interfering in its politics
Al Jazeera
Donald Trump should not meddle in French affairs, its foreign minister said on Sunday, after the US president criticised France in tweets following riots in Paris.
bit.ly/2UvLodg

Regulation

Large banks hopeful for legal workaround on Volcker rule
Brian Cheung – Yahoo Finance
A few double negatives buried in legislative text may have inadvertently freed nearly all U.S. banks from a regulation known as the Volcker Rule, which sought to curb risky behavior in response to the 2008 financial crisis.
/yhoo.it/2Ei49Mh

Congress may have accidentally freed nearly all banks from the Volcker Rule
Brian Cheung – Yahoo Finance
A few double negatives buried in legislative text may have inadvertently freed nearly all U.S. banks from a regulation known as the Volcker Rule, which sought to curb risky behavior in response to the 2008 financial crisis.
/yhoo.it/2G8nWPX

Mifid II leads to global demand for transparency; Asset managers ‘unbundle’ research payments across worldwide operations, survey reveals
Chris Flood – FT
European rules on the funding of investment research are changing behaviour globally in a shift that has consequences for fund houses, banks, brokers and investors.
/on.ft.com/2G9hjgu

German finance ministry: No comment on possible merger of Deutsche Bank, Commerzbank
Reuters
A spokeswoman for the German Finance Ministry on Monday declined to comment on “speculation” about a possible merger of Deutsche Bank (DBKGn.DE) and Commerzbank https://reut.rs/2G8mAol

FINRA Publishes 2018 Report on Examination Findings; Second Annual Report Is the Latest Compliance Resource for Firms Resulting from FINRA360
FINRA
FINRA today published its 2018 Report on FINRA Examination Findings, its second annual report detailing observations from recent exams of firms. The report is the latest resource FINRA makes available to firms as a result of its ongoing organizational improvement initiative, FINRA360.
bit.ly/2rvMXdU

Report on FINRA Examination Findings
FINRA
FINRA’s examination, surveillance and risk monitoring programs play a central role in supporting FINRA’s mission of investor protection and market integrity. A main component of this program is FINRA’s examinations of broker-dealers (firms or members), where FINRA prepares a report—which is available only to the relevant firm—addressing certain aspects of the firm’s compliance with specific securities laws and regulations. Firms must address the issues identified by FINRA, and many do so by proactively taking corrective action before we conclude our exam. Through this sort of rapid remediation, firms strengthen their compliance and supervisory programs, which ultimately helps better protect investors and maintain the integrity of the markets.
bit.ly/2rtxH12

FINRA/Nasdaq Trade Reporting Facility Retail Participants
FINRA
As previously announced in Nasdaq Equity Trader Alert # ETA2018-63, effective September 1, 2018, a new category of participant on the FINRA/Nasdaq Trade Reporting Facility (or “FINRA/Nasdaq TRF”)1 was established for purposes of trade reporting fees under FINRA Rule 7620A – the Retail Participant. The Retail Participant Program is designed to better align and tailor retail pricing to the profile and behavior of Retail Participants. Among other aspects of the Retail Participant Program, Retail Participants are exempt from the monthly Participation Fee of $350, which also became effective on September 1, 2018. See FINRA Rule 7620A; Nasdaq Equity Trader Alert # 2018-63.
bit.ly/2rsS7HF

SEC Announces Agenda and Panelists for the 37th Annual Small Business Forum
SEC
The Securities and Exchange Commission today announced the agenda and panelists for the 2018 Government-Business Forum on Small Business Capital Formation.
bit.ly/2rs8jc5

Investing and Trading

Bunge Is Open to Talks With Glencore, ADM as CEO to Leave
Mario Parker and Javier Blas – Bloomberg
CEO Schroder’s exit may be announced as soon as Monday: source; ADM and a unit of Glencore had held merger talks with Bunge
Bunge Ltd. will announce as soon as Monday the departure of its chief executive officer, removing a hurdle to further talks with would-be buyers, said a person familiar with the matter.
/bloom.bg/2Ga8Ppr

Fake and Bad News Is Depressing Market, JPM’s Kolanovic Says
Joanna Ossinger – Bloomberg
‘Significant’ impacts seen on prices and investor psychology; Trump tweets are being exploited to create uncertainty: Report
Biased news outlets, political opportunists and publicity-hungry analysts are whipping the stock market into a frenzy that goes beyond anything justified by economic or earnings fundamentals, according to JPMorgan Chase & Co. strategists led by Marko Kolanovic.
/bloom.bg/2G6FTOY

Stock Carnage Evokes Hope of 2016-Style Rebound. A Lot’s Changed
Elena Popina – Bloomberg
Latest correction has investors seeking clues in past drops; Fed at far less favorable place in cycle for equities
In the quest to calm themselves as stocks stage one harrowing lurch after another, investors are looking to the past for a roadmap. One comparison that has been inspiring hope is the bruising spell of volatility that swept markets in early 2016, since it ended with a giant rally.
/bloom.bg/2G6WzpD

BlackRock, Vanguard, Axa raise coal holdings despite climate fears; Big asset managers have increased investments since 2015 Paris accord
Attracta Mooney, Leslie Hook and Myles McCormick – FT
The world’s biggest investors, including BlackRock, Vanguard and Axa, have ramped up holdings in coal since the landmark Paris climate agreement, raising the question of how seriously they take the issue of tackling global warming.
/on.ft.com/2G9hIzw

Big investors give in to alternatives’ alpha allure; Move to illiquid strategies is significant but fee levels raise questions over value
Chris Flood – FT
In a break with its historically cautious investment stance, the world’s largest pension fund said last year it would make its first allocations to private equity, real estate and infrastructure.
/on.ft.com/2G6EGHq

Bunge says CEO to step down
Reuters
Global grains trader Bunge Ltd said on Monday Chief Executive Officer Soren Schroder will step down.
/reut.rs/2rtp1rp

Dennis Dijkstra Proposed For Reappointment As Sole CEO, CFO Marcel Jongmans Steps Down
Financznachrichten.de
Flow Traders N.V. (Euronext: FLOW) announces that it will propose to appoint Dennis Dijkstra as its sole CEO at the upcoming May 2019 AGM. Marcel Jongmans resigns as CFO.
bit.ly/2rq4lAO

Institutions

The $200 Trillion Gold Rush That Has Reshaped Private Banking; From Hong Kong to Miami, private bankers are finding new ways to serve the growing ranks of the world’s wealthy.
Bloomberg News
Ten years ago, stock markets plunged, major banks faltered, and the global economy teetered on a precipice. Few would have predicted that the ensuing decade would produce an explosion in wealth.
/bloom.bg/2KwKx7r

The Poker Aces Playing a Key Hand in the $5 Trillion ETF Market; Harnessing poker prowess and game theory, Susquehanna International has become a key ETF player.
Annie Massa – Bloomberg
On City Avenue in the Philadelphia suburb of Bala Cynwyd, Pa., across the street from a TGI Fridays and California Pizza Kitchen, sits a bland building that looks like any other corporate office. The only notable feature is in the parking lot: a large oak labeled a “significant tree” because it survived the American Revolution.
/bloom.bg/2G7Yx9d

Online investment platforms defy gloomy London markets; AJ Bell’s shares jump after it becomes the third to float this year
Kate Beioley – FT
Online investment platforms are defying a desolate market for London listings, with AJ Bell the third to take the plunge this year.
/on.ft.com/2G8hyZ3

How Much Could the 1MDB Scandal Cost Goldman Sachs?
Peter Eavis – NY Times
A huge fraud at a Malaysian investment fund has cast a harsh light on Goldman Sachs. But how much could the scandal cost the firm?
/nyti.ms/2GlD3pF

Barclays to Supply Trader Phone Calls and Bonus Data in Lawsuit
Jonathan Browning – Bloomberg
Metals fund Red Kite alleged Barclays traders mishandled data; Red Kite claims Barclays manipulated copper prices on LME
Barclays Plc will turn over former traders’ phone calls and bonus data in a lawsuit filed by a hedge fund over alleged market abuse in the copper market.
/bloom.bg/2G9lokC

BNP Paribas receives license to underwrite ‘Panda bonds’ in China
Gabriel Wildau – FT
BNP Paribas has received a license to underwrite bond sales by foreign companies in China, the latest step by Chinese regulators to increase foreign participation in mainland debt markets.
/on.ft.com/2G80eDB

Two British Banks Ensnared in Huawei Dispute; HSBC, Standard Chartered said to be among institutions potentially misled by the Chinese company
Margot Patrick and Eva Dou – WSJ
Two large British banks are among those ensnared in the controversy over Huawei Technologies Co., which escalated over the weekend after the Chinese government warned Canada it would face “severe consequences” if it didn’t release the Chinese telecommunications giant’s finance chief.
/on.wsj.com/2G7iXiH

Regions

Hong Kong on track for global IPO crown but many new listings sag
Julia Fioretti – Reuters
Hong Kong is on course to take the global IPO crown this year for the most money raised in stock market flotations, narrowly ahead of arch-rival New York, but its new listings have posted the worst performance among leading bourses, data show.
/reut.rs/2G8nwcl

China says rejecting physical cash is illegal amid e-payments popularity
Reuters
China’s central bank on Monday warned that rejecting cash as a form of payment was illegal, saying that such practices could eventually could cause the loss of confidence in physical money and was unfair to those not accustomed to electronic payments.
/reut.rs/2G4NTjs

US pension torment has lessons for British providers; Universities Superannuation Scheme and others must take note of America’s crisis
Norma Cohen – FT
Banding together to offer a pension scheme to workers has benefited employers in certain sectors. Notable examples are trucking and construction in the US, and the university system and Church of England in the UK.
/on.ft.com/2Gb9VRT

China consults on rules for financial holding companies: sources
Reuters
China’s central bank has started seeking internal feedback on draft rules regulating financial holding companies, targeting big-name conglomerates that hold multiple financial licenses, said two sources with direct knowledge of the matter.
/reut.rs/2G7UKZx

Top Cocoa Grower Poised for Record Crop as Desert Winds Descend
Leanne de Bassompierre, Lucca De Paoli, and Baudelaire Mieu – Bloomberg
Harmattan, El Nino have started weakly but remain risks; Cocoa-bean arrivals at ports are a third higher than last year
It’s crunch time for cocoa output in top producer Ivory Coast. The main crop — the larger of two annual harvests that started in October — is in full swing and bean deliveries suggest the country is headed for a record season.
/bloom.bg/2rw87IY

Brexit

Brexit’s twists and turns are baffling the markets; Assumptions that no-deal exit risks have receded may be misguided
The editorial board – FT
The decision Britain’s MPs are due to take on Tuesday on whether to accept Theresa May’s flawed exit deal from the EU is momentous for the nation’s future — and its economy. Given the political plot twists and uncertainties, the pound might be expected to be swinging around wildly. In fact, despite some intraday gyrations, sterling has traded in a fairly narrow range for several weeks. Even worsening economic data have largely been ignored. The Financial Times reported this week that some traders think sterling is, for now, ” impossible to trade”. Brexit has them baffled.
/on.ft.com/2G7YrhR

Hedge Funds Rent a Lifeline to Stay Afloat in EU Post-Brexit
Suzy Waite and Silla Brush – Bloomberg
Hosting firms provide risk management, compliance for funds; EU27 institutional investors manage $20 trillion, Preqin says
With Brexit threatening to lock some U.K. hedge funds out of Europe, a cottage industry is growing to help keep the door open.
/bloom.bg/2G75ure

Miscellaneous

The Planet Has Seen Sudden Warming Before. It Wiped Out Almost Everything; In some ways, the planet’s worst mass extinction — 250 million years ago, at the end of the Permian Period — may parallel climate change today.
Carl Zimmer – NY Times
Some 252 million years ago, Earth almost died. In the oceans, 96 percent of all species became extinct. It’s harder to determine how many terrestrial species vanished, but the loss was comparable.
/nyti.ms/2G9pERp

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Past Newsletters

Cboe Exchange Puts Brakes on Bitcoin Futures Listing

Get a FREE 90 day trial of John Lothian Newsletter First ReadPardon our dust: Crypto markets still have some building to doJim Kharouf, JLNThe institutionalization of the crypto market is going to take some time - be patient.Panelists on the...

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